Just a heads up for anyone over 75 here

 The city is starting vaccinations at Keefe Tech this week. All available slots are taken for this week. The web site to book an appointment is https://www.framinghamma.gov/3214/COVID-19-Vaccine-Information

 If anyone 75 or older needs a hand filling out the forms, please e mail me jamesmpillsbury@gmail.com

Lets be patient, we will get through this and live to tell our grandchildren.

 

a must watch...Framingham's financial picture

 

http://207.172.210.8:5002/CablecastPublicSite/show/2211?channel=1

 Mary Ellen starts her presentation at 8:35 on the water rates.

From the Patch:

https://patch.com/massachusetts/framingham/framingham-foresees-yearly-water-sewer-rate-increases-until-2032

 

Framingham business and property owners may be in store for more than a decade of annual increases, according to officials, after the water and sewer department ran into a deficit this year.

During Mayor Yvonne Spicer's weekly community hour on Tuesday, city Chief Financial Officer Mary Ellen Kelly gave an overview of structural deficit problems in Framingham's water and sewer funds, and possible solutions to them.

Kelly described two key problems that came together to create a $1.5 million deficit in fiscal year 2020: In recent years, Framingham has been using the water and sewer department's yearly surplus to offset rate hikes. There was no rate hike in 2020, and increases in previous years have been between 2 and 4 percent. When the pandemic hit, businesses shut down, severely cutting into water and sewer revenue, leaving the department in a deficit — and with no savings to cover it.

"So, we come to a point where we come to a pandemic, and we're not as resilient in the water and sewer fund as we are in the general fund," Kelly said during the community hour.

Framingham is also projecting a $2 million water and sewer fund deficit in fiscal year 2021. Adding the deficits between fiscal years 2020 and 2021, the city is on the hook for $3.5 million, and the state is requiring $2.5 million to be paid off this year.

Along with items like refinancing debt and updating the rate structure, rate increases will likely be necessary to keep the water and sewer fund from going into negative territory in the future, Kelly said.

Spicer's administration told a City Council subcommittee on Jan. 21 that a 12 percent rate hike — about $25 per quarter for the average user — may be necessary starting in July. Kelly said Tuesday residents could expect increases between 1 and 4 percent between July 2023 and 2032.

Complicating the matter, the state revenue department will not certify Framingham's 2021 tax rate until the $2.5 million water and sewer fund deficit is resolved. Spicer and the City Council have clashed over a solution so far, preventing tax bills from being sent.

Spicer wants the Council to use free cash reserves to pay off the $2.5 million that's due this year. Councilors have balked at that solution since Framingham already spent $6.2 million in free cash to plug holes in the general fund, leaving reserves at around $8.2 million. If elected officials do not reach a solution, the state will add the deficit to the tax bills, which means property owners will pay about $84 more on average.

The Council will continue discussions on a fix for the short and long-term water and sewer deficits at a future Finance Subcommittee meeting.

 

If you had the choice... where should the MJ tax revenue go?

 To the water and sewer enterprise fund or the CPA, Community Preservation fund or to the general fund?

Keeping in mind, our taxes are going up by 1% to pay for the CPA as well as the Fuller School

The Mayor proposes a 12% increase in water rates which still may leave a deficit next year.

If the Mayor and CC can't find middle ground, our taxes will go up to pay for the water deficit by an average of 85.00 dollars

The fix is in.. we will pay more no matter what

 Thanks to G King, we now have learned what the Administration is proposing to fix the water deficit. Don't shoot the messenger, but we are it a bad spot and unless they find 2.5 million in savings somewhere, which is very unlikely, the water rate will go up and so will our taxes.

The administration late this afternoon released the requested information as to the water and sewer deficit. I have not read it in depth, but in general this is what they are “recommending”:

A 12% rate hike effective July 1, 2021. “Recommending” is an odd term to use, because the decision on the rate is the full and complete decision of the Mayor. The report adds it is the first rate increase in two years. This is made to sound like a bargain when it is described as only costing $25 dollars on the average quarterly water bill. Or $100 a year.

In addition, they are “recommending” the taxpayers subsidize the water and sewer fund again next year to the approximate level of $2,500,000. That is about $85 on the average tax bill.

What we speculated two months ago is accurate, the rates are about 20% below what is required to fully fund expenses. In the proposed scenario, a 12% rate hike results in still incurring a 2.5M deficit.

There is no mention as to whether they are going to continue borrowing $1,500,000 a year to pay salaries.

Lots to read and this problem is a result of many different inputs, not just one. High spending levels and inefficient rate setting have been compounded by the pandemic, making for a significant financial problem in the City of Framingham. Despite the desires of some, we cannot spend our way out of this.

For those who want to read I am sharing a link to my copy. I expect it will be uploaded to the meeting materials soon, but here it is in the meantime. 

https://drive.google.com/file/d/1Zsjtc9fIgpks2wdt5Chb0-nFFtHjNkvX/view?fbclid=IwAR1sw3wX3R97nBpWnc5NVTV4MX1FtQznjpdnhCXfHr8TMH2ApAh_P5k50tw