COMMUNITY ADVOCATE • Friday, April 26, 2024 • 1A
LEGAL NOTICES HUDSON TOWN WARRANT FINANCE COMMITTEE PREAMBLE To the residents of the Town of Hudson, Per the authority vested in the Finance Committee according to Massachusetts General Laws (“M.G.L.”), Chapter 39, Section 16, the Town of Hudson Municipal Charter, and the Town of Hudson General Bylaws, the Committee makes the following report for the Articles included in the Warrant for the Town of Hudson Annual Town Meeting on May 5, 2025 based upon consideration of the Articles at public hearings with the sponsors and/or petitioners. Please note the following. For Fiscal Year 2026 (FY26), the Warrant includes an article contingent on the passage of a ballot question to raise tax revenue beyond annual statutory limits imposed by M.G.L. Chapter 59, Section 21C (“Proposition 2½”). In Massachusetts, municipal revenues to support municipal spending, including, for example, public safety, recreation, and the schools, are raised through the property tax levy, state aid, local receipts and other sources. The property tax levy is the revenue a municipality can raise through real and personal property taxes (the “levy”). The property tax levy is the largest source of revenue for most municipalities, including the Town of Hudson. Proposition 2½ places constraints on the amount of levy a municipality can raise and on how much the levy can be increased from year to year. Proposition 2½ establishes two types of constraints. First, a municipality cannot levy more than 2½ percent of the total full and fair cash value of all taxable real and personal property in the municipality (the “levy ceiling”). The levy ceiling is determined by calculating 2½ percent of the total full and fair cash value of all taxable real and personal property in a municipality. Second, a municipality’s levy can only be increased by a certain amount from year to year (the “levy limit”). The levy limit is calculated by taking the previous year’s levy limit and increasing it by 2½ percent and adding the amount of certified new growth and the amount of override authorized by a ballot question, if any. The levy limit cannot exceed the levy ceiling. The levy limit can increase from year to year as long as it remains below the levy ceiling. Proposition 2½ allows a municipality to assess taxes in excess of the automatic, annual 2½ percent increase, and any increase due to new growth, by passing an override. A municipality may take this action as long as it is below its levy ceiling. Thus, if the Town of Hudson passes an override, then the levy limit for FY26 will be calculated including the amount of the override. Passage of the override will result in a permanent increase in the levy limit, which, as part of the levy limit base, increases at the rate of 2½ percent each year. A majority vote of the Select Board allowed the override question to be placed on the ballot and a majority vote of approval by the electorate is required for the ballot question to pass. Town Meeting must pass an operating budget to fund operations in FY26, with or without an override. If the override ballot question fails, then the budget to fund operations without an override will be the Article 3 budget. If the override ballot question passes, then the budget to fund operations with an override will be the Article 4 budget. The Finance Committee recommends approval of each budget included in Article 3 and Article 4, which places the decision of which budget to approve in the hands of the electorate at the Town Election on May 12, 2025, where the electorate will vote on the ballot question regarding the override. Approval of both budgets at Town Meeting guarantees that a budget will be in place to fund operations regardless of the outcome of the vote. Article 1 – Prior Year Bills M.G.L. Chapter 44, Section 64, requires that a bill from a prior year, that is, an invoice received after the Town closes its books for the fiscal year, must be presented to Town Meeting for authorization to pay with current year funds. Bills totaling $1,150.00 were submitted after the Town closed its books for FY25. The bills will be paid by appropriating current year funds from the respective departments. A 9/10ths vote is required for passage. Article 2 – Year-End Transfer of Funds Per M.G.L Chapter 44, Section 33B, a Town may, by majority vote at any meeting duly held, transfer any amount previously appropriated to any other use authorized by law. Alternatively, the Select Board, with the concurrence of the Finance Committee, may transfer within the last 2 months of any fiscal year, or during the first 15 days of the new fiscal year to apply to the previous fiscal year, any amount appropriated, other than for the use of the Municipal Light Department or School Department, to any other appropriation. The “sum of money” to be transfer per this Article was not known prior to the deadline for submitting this
Call 508.366.5500 to advertise your legal notice report. Article 3 – Budget A (FY26 General Operating Budget Without a Proposition 2-1/2 General Operating Budget Override) The Article 3 budget funds operations without a Proposition 2½ override. This budget will eliminate or reduce the hours in Town staff positions (non-school) with a total reduction equivalent to an estimated 5.6 employees. In addition, Hudson Public Schools will reduce approximately 30 positions in FY26 with further reductions required in subsequent years. The School staff reductions will result in increased class sizes, program eliminations, and additional fees that will have an overall detrimental impact on school operations. If the override does not pass, then it is possible that another override question will be placed on a ballot in coming months to restore services in the Hudson Public Schools for FY27. Article 4 – Budget B (FY26 General Operating Budget Funding School and Municipal Operations Contingent Upon Passage by Ballot of a Proposition 2-1/2 General Operating Budget Override) The Article 4 budget funds operations with a Proposition 2½ override of $3,950,000.00 to address shortfalls in both Town and Hudson Public Schools operating budgets for the period from FY26 to FY29. Only $1,575,000.00 will be added to the tax levy for FY26 with the remaining $2,375,000.00 available, as necessary, as excess levy capacity, which can only be levied with the approval of the Select Board and appropriated (spent) with the approval of Town Meeting. This budget will maintain the Town and some School staff positions. The Hudson Public Schools will still reduce their budget by $1,100,000.00 via the elimination of the equivalent of 12 staff positions and 2 buses. The average tax bill for a single-family, residential homeowner would increase by approximately $287.00 in FY26 if this budget is implemented. Article 5 – Capital Plan – General Fund Article 5 includes a request, among others, from the Hudson Public Schools for $100,000.00 for a District-Wide Space Utilization Study to optimize the use of school facilities in light of enrollment declines. This study may result in opportunities for budget reductions in subsequent years. Article 6 – DPW Salt Storage Shed – Transfer from Free Cash The plan for the new DPW building originally included relocating salt storage from the DPW grounds to the existing transfer station building after the relocation of transfer station operations from the transfer station grounds to the DPW grounds. However, due to delays with the relocation of transfer station operations, a new salt storage shed is now required on the DPW grounds. Article 7 – HVAC Improvements to Town Hall This Article authorizes the appropriation of $915,000.00, $425,000.00 from available Free Cash and $490,000.00 from unspent balances in any capital project appropriations previously voted by the Town but no longer needed, for heating venting and air conditioning improvements to Town Hall. Future grants may received in the future to retroactively reimburse these costs. Article 8 – Fire Department Aerial Ladder Truck Acquisition - Borrowing The Aerial Ladder Truck has a 4 year lead time and a current cost of $2,228,569.00. The Town’s Capital Plan will include $500,000.00 in both FY26 and FY27 for this equipment to begin funding this equipment. However, a borrowing authorization for the full cost of the equipment is required now to place the order at the current cost. Article 9 – Transfer from Water Retained Earnings This Article authorizes the appropriation of $950,000.00 from the retained earnings of the Water Enterprise Fund for the design, permitting, and construction of Water Treatment Plant Upgrades and Well Replacement. Article 10 – Transfer from Sewer Retained Earnings This Article authorizes the appropriation of $400,000.00 from the retained earnings of the Sewer Enterprise Fund for the construction of Wastewater Treatment Plant Upgrades. Article 11 – Water Enterprise Fund This Article authorizes the appropriation of $4,701,737.00 from the receipts and revenue of the Water Enterprise Fund to fund the Water Department FY26 budget. Article 12 – Sewer Enterprise Fund This Article authorizes the appropriation of $6,233,612.00 from the receipts and revenue of the Sewer Enterprise Fund to fund the Sewer Department FY26 budget.