Milton town leaders are signaling a move toward technological modernization as they grapple with long-term financial projections and an aging infrastructure for managing the town’s millions. During a Forecast Work Group session on November 7, Town Administrator Nicholas Milano highlighted a significant gap between Milton’s current manual processes and modern standards, noting that the town remains decades behind on HR, payroll, and AP.

The discussion centered on a proposal to move away from complex Excel workbooks in favor of specialized municipal budgeting software such as ClearGov or OpenGov. Milano presented a quote of approximately $30,000 per year for a system that would automate manual updates and produce digital budget books. Select Board member Winston expressed immediate support for the transition, stating, Approved. Bring that to the Board. While the workgroup did not take a formal vote, the consensus among members was that the manual labor involved in the current system has become a liability. Committee member John added, Removing the manual labor of these sheets has value. I'm a strong advocate for that.

The push for modernization comes as Milano and Town Accountant Amy Dexter presented a five-year financial forecast that serves as the foundation for the upcoming FY27 budget. The group debated the format of the town’s forecasting workbook, which currently differs from the state’s Division of Local Services recommended model. Dexter explained that she built the current tool to mirror the budget workbooks already in use for Town Meeting. I started it with the budget workbook we currently use. That is the nature of the setup, Dexter said, noting that while the state model has benefits, the local version is tailored to Milton’s specific warrant process.

A significant portion of the meeting focused on revenue assumptions, specifically "new growth" figures derived from property renovations and new developments. While Milton’s new growth was recently certified at nearly $1.5 million—roughly $500,000 higher than previous estimates—Milano suggested keeping the forward-looking assumption at a conservative $1 million. He noted that while large projects like Walcott Woods and 40B developments have provided a boost, a potential economic downturn could stall the run-of-the-mill kitchen and bedroom additions that provide steady revenue. Mark, a committee member, questioned the long-term reliability of this figure, asking, Are you confident the $1 million assumption holds through 2030?

The financial outlook for Milton’s schools also remains a point of concern, particularly regarding the unpredictable costs associated with the Blue Hills Regional Vocational School. Milano pointed out that assessments have fluctuated wildly between $813,000 and $1.1 million over the last few years. A new lottery-based application process at the state level is expected to increase this volatility. School Business Manager Katie Blake explained the internal pressures on the school budget, noting that for schools, we forecast steps and lanes, which is mandated, creating fixed cost increases regardless of the town's revenue situation. Winston also used the meeting to introduce Devin, a representative from Property University who will be assisting the public schools with budget committee work this year.

The group also touched on the town's "wish list" for capital projects and debt. With a long-term forecast extending to 2055, officials are looking at the impact of major projects like the Atherton Fire Station and potential new school construction. Mark warned that Milton has been underfunding capital and have been for a while, suggesting that the town needs better visibility into how far current funding falls short of actual needs. John echoed this concern, noting that failing to fund a proper capital plan leads to band-aids on aging HVAC systems that eventually drain the operating budget.

A philosophical debate emerged regarding how to handle "free cash"—surplus funds certified by the state at the end of the fiscal year. Milano argued that for a five-year forecast, it is appropriate to assume at least some free cash will be available for planning. However, committee member Jay Finley urged a more cautious approach. Should we be ultra-conservative? Finley asked. Free cash is not guaranteed and depends on department spending. It should be a pleasant surprise each year. Milano countered that all surprises are bad in municipal finance and that the town should plan for those funds rather than waiting for them to materialize.

Looking ahead, the group discussed creating "what-if" scenarios to prepare for various economic climates. Committee member Megan suggested developing three plausible frameworks to model an economic slowdown or a spike in costs. We should look at the 5-to-10-year range and develop three plausible scenarios based on budget drivers, like an economic slowdown or an increase in families, she said, offering to share a framework used by the Department of Transportation. The workgroup expects to refine these scenarios and the software proposal in their upcoming sessions as they move closer to the FY27 budget cycle.