Milton town leaders confronted a stark financial reality during Friday’s Budget Coordination Committee meeting, acknowledging that current spending trends will likely necessitate a property tax override within the next three to five years. While the fiscal year 2027 budget is nearing completion with a $500,000 appropriation for school reserves, the long-term forecast reveals a structural gap where town expenditures are growing at 5% annually while revenues only climb by 3%.

Town Administrator Nick noted that the Warrant Committee recently recommended the half-million-dollar school reserve allocation, even as the town trimmed its operating request. Committee member Jay added that we're taking approximately $150,000 less for operating than previously discussed following recent deliberations. Despite these immediate adjustments, Warrant Committee Chair Leroy Walker warned that the town must constrain growth below historical trends to delay a deficit. The objective is to extend the period as long as we can before considering another override, Walker said, noting that public safety staffing would likely remain flat and overtime would face tight caps.

The conversation turned tense when discussing how transparent the town should be regarding potential service impacts. Committee member Mark argued that the forecast must explicitly state that a 3% growth cap would lead to job losses. I don't believe stating that 3% growth leads to lost positions is fear-mongering; it is a statement of fact, Mark said. This year we had a 3.76% increase and still had to cut positions. A 3% increase is effectively a cut. Walker suggested modifying the language to state that growth constraints may result in position reductions, preferring to focus on budget discipline rather than specific headcount warnings.

The committee also debated the use of the Operating Budget Stabilization Fund, which currently holds about $3.1 million in free cash. Jay advocated for a clear plan to draw down those funds over a set period to bridge the gap until an override. It's all dependent on picking a year for an override, then drawing down the $3 million over that period, Jay said. While the Select Board has not yet formally named a target year for an override, Select Board member Megan emphasized the need for a realistic timeline. We haven't practiced naming an override year, but we don't want to get caught on the back foot like other towns in the Commonwealth, she said.

Finance Director Amy echoed the need for blunt communication with residents, noting that everyone at this table knows we are talking about an override in the next five years. She argued against projecting free cash in the forecast, stating, I've said this a hundred times: there is no free cash until it's certified by the Department of Revenue. The Chair agreed that the town must be grown-up about the facts to avoid the emotional surprises of previous fiscal crises, noting that many neighboring municipalities operate on a similar three-to-five-year override cycle.

The financial pressure of a potential new school building also looms over the forecast. Jay suggested the possibility of a dual ballot question where voters would decide on the capital costs of a school and the operating override to staff it simultaneously. That way voters vote on the whole chunk, Jay proposed. Nick called the idea an interesting risk and promised to investigate if such a combined question is legally permissible. A board member also raised concerns about grant funding, but Walker dismissed the idea of aggressive grant projections, calling previous attempts a disaster and preferring to focus on efficiency and effectiveness initiatives.

The meeting concluded with a sobering reminder of the town’s limited revenue options. Select Board member Maggie shared her personal experience with Milton’s rising costs, noting she had to downsize her home five years ago due to tax increases. She cautioned that commercial growth is not a panacea, as the current commercial base only generates approximately $3.4 million in real estate taxes. Assessor Joanna clarified that businesses also contribute personal property taxes on equipment, bringing the total commercial contribution closer to $7.5 million. Commercial only brings in $3 million a year. Even if we double it, that's only another $3 million, Maggie warned, stressing the continued burden on residential taxpayers.