LONGMEADOW – The Select Board and School Committee met in a joint session on Oct. 29 to discuss and review the initial forecasts for the fiscal year 2019 (FY19) budget.

The budgeting process will begin in a little more than a month in preparation of the new fiscal year, which will begin on July 1, 2019.

The town’s Chief Financial Officer Paul Pasterczyk and the school district’s Assistant Superintendent for Finance and Operations Thomas Maza briefed the two governing bodies on the projected costs and revenues that would influence the next budget cycle. Members of the Finance Committee, including Chair Paul Santanielo were also present.

“You’ll find that the numbers are very similar to years past [and] that we’re starting off the fiscal year budget projection with a negative of we’ll call it a half a million dollars,” Pasterczyk said. He later stated the town is in a better situation than what was expected in years past, explaining that four or five years ago, he would have estimated a $2 million deficit for FY19. State aid and new growth that were higher than previously projected have played a major role.

Pasterczyk noted the major challenge facing Longmeadow was the issue of Proposition 2 ½, most specifically the stipulation that the levy limit cannot be higher than the levy ceiling, which is 2.5 percent of the town’s property valuation. He said the town is “losing ground” and he is currently projecting a tax rate of over $25, which could be reduced as the budget process moves along. The FY18 tax rate is $24.34.

While Proposition 2 ½ prohibits a tax rate over $25, the rate can exceed that figure through overrides.

In addition to the 2.5 percent tax increase allowed by law, townspeople will face nearly $4.4 million in debt exclusions, adding $2.10 to the tax rate. The largest portion of that figure being the funding for the construction of the new high school. The recently approved new Department of Public Works facility would also be factored into those numbers.

Projecting out to FY20, Pasterczyk said the tax rate would be nearly $26. He added that “stagnant” property values were directly related to the increase in the town’s tax rate in recent years, estimating the town reached its peak value in FY09 with $2.168 million. In the next fiscal year, the value is estimated at approximately $2.1 million, though Pasterczyk said he expects a modest increase.

The town is anticipated hit the levy ceiling by FY23 if there is no valuation growth. A 1 percent valuation growth would push that timeline back to FY25.

Pasterczyk said there was potential for more new growth in FY19 and FY20, pointing to projects like the Big Y renovation and the District Improvement Funding, and he is also hoping for favorable state aid figures.

Select Board Chair Mark Gold noted the work of the Tax Ceiling Tax Force, and addressed progress in the looming tax ceiling, stating the discussions have primarily focused on ideas for controlling expenses, identifying “marginal revenue,” and developing unused property.

“Clearly there needs to be a change in our revenue package long-term,” he said.

He also spoke about the efforts to overhaul Proposition 2 ½ on the state level, mentioning the antiquated system was developed in the 1980s when the thought of a $25 tax rate was considered unrealistic. Gold said when representatives of several Hampden County communities gathered and discussed the topic with state Sen. Eric Lesser, he was disappointed that more did not support the idea of revisiting Proposition 2 ½ on the legislative level.

Town Manager Stephen Crane emphasized the town would want to keep the 2.5 percent limit on tax increases, but the feeling is towns should have the option of deciding to exceed a $25 levy ceiling.

During the discussion, Selectman Richard Foster suggested any discussion on the town’s future economic health should include the topic of cutting services and the exploration of what services could be cut in the interest of maintaining affordability for residents.

“We’re going to price people out. We’re already pricing people out of our community,” he said, later adding, “The only discussion I hear is ‘Let’s get the golden goose to lay a bigger golden egg’ instead of reducing it down and going to a platinum egg. I don’t know where we’re going to go and I’m not impressed with our direction, because my revenue’s not going up, and yet you’re telling me that I’m going to pay more for the services in this town.”

Addressing Foster’s point, Gold noted that surveys have shown residents enjoy the services they receive in Longmeadow and determining what to cut would be a difficult task.

“What you’re talking about is making a significant shift in the level of services in Longmeadow and that’s making a shift in what I’ll call the quality of life to people in Longmeadow,” he said. “The residents are going to have to decide is that what they’re willing to get into?”

Gold also alluded to a level of hypocrisy in town, stating many residents who complain about living on fixed incomes voted to approve the expense of building a new Adult Center, which would raise taxes.

“I think people selectively choose to mess with services they want and decide what they’re willing to pay for. The problem is this isn’t the cafeteria system in town,” he said.