LONGMEADOW –  Residents of Longmeadow rejoice: property taxes were increased by 2 percent for Fiscal Year 2020 (FY 20), as opposed to 2.5 percent, Town Manager Stephen Crane revealed at the March 14 Select Board Budget Forum.

Crane, alongside Longmeadow’s Finance Director Paul Pasterczyk, presented the FY 2020 budget to the Select Board, explaining that keeping the property tax percentage increase below 2.5 percent was a “strong goal” for them because of the tax ceiling.

Continuing, Crane explained that for FY 20, the town hasn’t used reserves, was able to fully fund both the School Committee’s requests as well as the Town Manager’s Capital Plan and increase the storm water fee to offset increased costs. To offset the increases Crane noted that this year the town is receiving their second annual mitigation payment from MGM, there was a 6.2 percent increase in State Aid and a 5 percent increase in local receipts.

The town’s operating budget for FY20 is in total $69,078,817. These funds are broken down into categories including public schools, employee benefits, public works, public safety, debt services, community services and planning and community development. The following is the budget breakdown:

•Public Schools – Consists of 51 percent of the budget – $35,153,129

•Employee Benefits – Consists of 15 percent of the budget – $10,438,728

•Public Works – Consists of 14 percent of the budget – $9,901,158

•Public Safety – Consists of 8 percent of the budget – $5,427,920

•Debt Services – Consists of 7 percent of the budget – $4,545,823

•Community Services – Consists of 3 percent of the budget – $1,799,114

•General Government – Consists of 2 percent of the budget – $1,620,161

•Planning & Community Development – Less than 1 percent of the budget – $192,784

In comparison to FY 19’s numbers in the General Fund, general government experienced a .62 percent increase, public safety experienced a 2.89 percent increase, planning and community development experienced a .67 percent decrease, the schools experienced a 2.36 percent increase, the public works department experienced a 2.97 percent increase, community services experienced a 4.45 percent increase, debt services a 6.64 percent decrease and finally employee benefits/liability insurance experienced a 7.49 percent increase. This averaged out, according to Crane, to be a total of 2.54 percent increase in FY 20 in comparison to FY 19.

Crane was quick to note that borrowing for the new senior center has not begun, which is why debt services has decreased. Next year, he advised, this number would most likely increase.

The Storrs Library has increased their hours of operation with minimal increase in cost, going from being open 50 hours a week to 59 hours a week. With that, a 28-hour a week, benefitted position was converted to a 36.5 hour a week, benefitted position. In addition, there will be an increase in books, periodicals and technology funding to meet the Massachusetts Board of Library Commissioners (MBLC) formula targets. Crane noted that facility maintenance costs were moved from the Department of Public Works budget to the library’s budget to quantify the town’s contribution for the MBLC formula.

Circling back to MGM’s annual mitigation payments, Crane reiterated that this is the second year Longmeadow has received an annual payment from the casino giant. They first received the upfront payment of $850,000, then their first year payment of $275,000, which was used to offset the debt service fund for Engine 2, which is the primary response vehicle to I–91. Now that the town will be receiving their second annual payment, which is approximately $281,875, a 2 percent increase from the prior year, which will be used to sustain pavement preservation as well as a new crime analyst and remaining debt on Engine 2.  There will be a total of 15 payments from MGM to the town of Longmeadow.

Crane then stated that the town would continue to monitor impacts throughout the first full year of MGM’s operation and recommend adjustments to use of funds as needed.

The town currently has the following available fund balances:

•Free Cash = $502,377

•Operational Stabilization = $3,813,099

•Capital Stabilization Fund = $145,035

•Water Retained Earnings = $518,108

•Sewer Retained Earnings = $890,697

•Solid Waste Recycling Retained Earnings = $22,241

•Ambulance Reserve = $132,707

To watch the budget hearing for yourself, head over to Longmeadow Community TV’s live stream at https://livestream.com/longmeadow/events/8601269