Residents Call for Special Town Meeting; Selectmen Request Time

Residents pushed for a special town meeting Monday night, but selectmen asked for a bit more time to make that call.

On Monday night, selectmen agreed with residents that the amount of money in the town’s free cash account is higher than it needs to be, but asked that the Finance Committee be given a week to come up with some options before selectmen considered calling a special town meeting.

“In a way, it’s a nice problem to have,” said Board of Selectmen Chair Tom Fay, “but in my personal view the cash reserves in town are too high.”

Members of the Finance Committee joined the Board of Selectmen’s meeting Monday to discuss the free cash account and options for reducing its balance.

FinCom Chair Cherry Karlson explained that the $10.3 million, or about 14 percent of the town’s total budget, that is currently in the free cash account was unanticipated. At April Town Meeting that amount was less, but “due to conservative budgeting and larger than expected returns” that amount has grown, Karlson said.

“We spent a number of years building free cash on purpose in order to show good, strong conservative budgeting to support of building the high school,” Karlson said, adding the the committee had attempted to reduce that amount in when planning the FY12 budget. “Unfortunately, I think we did that too well. We have a very strong commitment to reducing free cash in the 2013 budget.”

She said the finance committee is under a “general sense of agreement” that the revenue projections for 2012 should be altered to reflect what seem to be more accurate numbers. Altering the revenue numbers could have an impact on the town’s 2012 tax rate, which is currently estimated to increase from the 2011 rate of $19.35.
 
Karlson said Finance Director Michael DiPietro had earlier that night during the FinCom meeting proposed adjusting FY12 revenue projections by $850,000, though the committee did not have time to fully vet his suggestion before joining the selectmen’s meeting. Adjusting the revenue sources would not require a special town meeting, but funding some of the FY12 budget through free cash reserves, which would reduce the amount in free cash, would require a taxpayer vote at a special town meeting.

The legal deadline to adjust the 2012 tax rate is Dec. 31, 2011, Town Administrator Fred Turkington explained. He said, however, that the adjusted tax recap sheet should be submitted by the first week in December in order for it to be reviewed properly and a potential new rate to be reflected in residents’ February tax bills.

Selectmen plan to take up the issue again at the next meeting on Tuesday, Oct. 11. Even if they reject the idea of calling a special town meeting, residents will still have time to circulate a petition to call one.

Resident Donna Bouchard said she felt this one-time position for the town afforded a “good opportunity” for officials to act in good faith and return some of that excess money to taxpayers.

“I think that the most prudent thing to do is that we go ahead and try to afford some tax relief if possible to the residents,” Bouchard said, explaining that the tax relief would come in the form of a reduced 2012 tax rate, not in the form of a refund in the mail. “It [the extra revenue] was unanticipated, and it’s a good opportunity for us to be able to do this.”

Editor's Note: The original article incorrectly stated that altering revenue sources on an approved budget would require a vote at a special town meeting. A special town meeting is required to pull additional funds from Wayland's free cash account.