Meeting Notes: Selectmen Review Town’s Debt, Tax Rate and Appoint Rail Trail Committee

Here’s something you don’t hear too often in today’s economic climate: “We are in very good shape as far as debt goes.”

That’s what Medfield Town Administrator Michael Sullivan said to the Board of Selectmen while reviewing the town’s debt schedule at Tuesday’s meeting.

Sullivan, using a six-page packet to present the town’s debt schedule, outlined Medfield’s total outstanding debt owed from 1994 to 2012, saying the town has made “considerable progress.”

“We got our debt down at a time when governments in general and corporations seem to be worried about their estimated debt … we are doing well for bringing our debt down,” Sullivan said.

According to the information Sullivan presented at Tuesday’s meeting, the town’s largest percentage of debt is schools, which totals around 55 percent or roughly $25.4 million that remains outstanding.

As for the town’s evolution of debt, Medfield owed $7,450,000 in 1994 and saw that number steadily rise until jumping to $27,329,811 in 2000. The town’s debt peaked at $67,052,736 in 2003 and has gradually declined since, totaling $44,653,721 as of June 2010. The town’s debt is currently just over $44 million.

“At the end of this year we will owe $44,343,603,” Sullivan said.

Of that figure, several of the town’s debts will be partially paid for using various appropriated funds, cutting the number the town will actually pay roughly in half.

“We really will be paying $22 million as a result of money in the bank and funds [appropriated to debt payment],” said Medfield Board of Selectmen chair Osler “Pete” Peterson.

Sullivan concluded that in fiscal year 2016, the town will see a “big drop” in debt owed and in 2029, the town would be free of its current debt.

“By 2029, Medfield will be out of debt,” Sullivan said, referring to the current projections. “We do have a big drop off in FY2016. The library will be paid off, town hall will be paid off and there are a couple other big projects that will be paid off.”

Selectmen Adopt Board of Assessors Recommendation for Single Tax Rate

Fred Perry, representing the Board of Assessors at Tuesday’s Tax Classification Hearing, recommended to the selectmen they adopt a single tax rate projected at $15.69, which is up 67 cents from the 2011 rate.

The selectmen unanimously approved the Board of Assessors' recommendation, agreeing with Perry that it makes “no sense” for the town to opt for a split tax rate.

“We have this hearing every year and every year we seem to agree with [the Board of Assessors’] analysis that it makes no sense,” Peterson said.

Perry explained the reasoning behind the recommendation:

“The issue is we have about five percent of commercial industrial and we tried to do a shifting of the rate, which would increase the burden on commercial and industrial,” Perry said. “We really don’t gain much on the residential side [of that shift]. Basically, by adopting 150 percent shift in the commercial industrial, we are using a projected tax rate of $15.69.

“On a $500,000 property, the residential side would save $249 and we would shift a tax burden to the commercial industrial of just under $4,000. So, given how hard it is to attract business in Medfield and it’s difficult for these businesses to survive in Medfield, it seemed like shifting that kind of rate would be a real burden.

“Typically, you don’t see a split tax rate until you get to at least 20 percent in commercial industrial. Even in some of those towns, like Norwood, are really starting to rethink that. Maybe they have to lower the burden on the commercial industrial because people are starting to move away to cheaper locations.”

Selectmen Appoint Bay Colony Rail Trail Study Committee

Selectmen appointed five residents to its newly created Bay Colony Rail Trail Study Committee.

The residents are: Graham Plonski, Christian Donner, Eric Holm, Susan Lynch and Albert Brenton.

The selectmen elected to appoint Donner as chair to the committee.

Medfield State Hospital Update

Selectmen’s letter with comments prepared by the town’s State Hospital Environmental Review Committee regarding the remediation work yet to be done at the l site was sent to the state, which responded it had received the comments, according to Assistant Town Administrator Kristine Trierweiler.

Trierweiler said she also had a conversation with a member of DCAM Commissioner Carole Cornelison’s staff to set up a meeting with town officials to reopen the lines of communication between the state agency and the town.

“[Cornelison] will send [the town] a letter with details [about a meeting in her office],” Trierweiler said.  

Action Items:

• Selectmen voted to sign letter to Melissa Savilonis, a Board of Health member, who recently announced her resignation.
  “Thank you Melissa for your service to the town,” Medfield Board of Selectmen chair Osler “Pete” Peterson said.
• Selectmen voted to approve the Nov. 1 meeting minutes.

Licenses and Permits:

• Selectmen voted to approve MEMO’s request of a parade permit for the annual Christmas Parade to be held Saturday, Dec. 3 at 1 p.m. The selectmen have been invited to lead the parade and attend the tree lighting ceremony on Friday, Dec. 2 at 7 p.m. at Baxter Park.
• Selectmen approved the Council on Aging’s requests for wine and beer permits for the following events: Nov. 16 Supper Club, 4 to 7:30 p.m.; permit monthly supper clubs from December to May 2012; Sunday, Jan. 8, “Carousel of Dancers,” 1 to 5:30 p.m.; Saturday, Feb. 11, Valentine’s Day Dance, 7 to 10 p.m.

Other Town Business:

• Selectmen approved Peterson’s request to institute a “Selectmen’s Calendar,” which will keep better organization of meetings the selectmen have with various town departments and other agenda items.
• Department of Public Works Superintendent Ken Feeney discussed the current state of the town’s water, which was reported on the town’s website on Nov. 2 as in noncompliance with the drinking water standards for total Coliform bacteria during the months of September and October 2011. Similar notices were issued for violations in June, July and August 2011. Feeney told the selectmen Tuesday the water in the wells has tested “clean” and will be tested again next Wednesday.
• Feeney and town officials discussed the town’s water rates and billing. Check back at Medfield Patch for more on those discussions.