Dighton using COVID windfall to keep tax rate down
DIGHTON — The special Town Meeting tonight, Nov. 1, will include some good news for town taxpayers.
This year, due to a one-time, COVID-19-related fiscal year 2021 turn back of $1.2 million in Dighton-Rehoboth Regional School District Excess and Deficiency (E&D) funding to the town of Dighton, Town Administrator Michael Mullen reported, the town realized a higher-than-usual free cash certification that will be utilized to fund some of the budget items within the fall Town Meeting budget.
Selectmen and the Finance Committee, he elaborated, are jointly recommending that article 3 of the special Town Meeting warrant be funded in the amount of nearly $600,000. That article seeks to transfer from available funds "to make the payment on the bond of the Police Station and to reduce the tax rate."
"It's too early in the process to understand the specific impact on the tax rate," he elaborated further. "The tax rate has not yet been set. But it will reduce by $600,000 the amount we are funding these items through taxation. That's still good news."
The Dighton-Rehoboth Regional School District was notified recently, Mullen explained, that the MassachusettsDepartment of Revenue certified the amount of excess and deficiency as of July 1, 2021(fiscal 2020/2021) for $5,738,000. Of that amount, $3,440,363 will be applied to reduce thecurrent fiscal year's (FY2022) assessment proportionately split to each school region member town.
This reimbursement represents the fiscal impact to the district of the federal, state and district's COVID-19 response, during fiscal year 2020/2021 (FY2021), he said. The district realized savings of $1.3 million as a result of curtailed operations, and lower energy and health insurance costs.
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In a letter the town received from former Superintendent of Schools Anthony Azar before his retirement, Azar said the school district also realized increased revenue during fiscal year 2020/2021 of approximately $4.4 millionthrough federal and state sources. While it was impossible to anticipate these economic events whenthe FY2021 budget preparation was underway in early 2020, he said, Massachusetts General Law provides forthe return of windfall savings to the member towns as mentioned above. Rehoboth will receive a reduction of their FY22 assessment of $2,205,155. Dighton will receive a reduction of their FY22 assessment of $1,235,207.
Additionally, he said, the district will retain $2,297,637 of the excess as provided for by MassachusettsGeneral Law (the regional school district retains up to 5 % of their overall budget in E&D funds). Of this,the district has proposed using $750,000 to reduce the FY23 assessments to the member towns.
"As many in the community may remember," Azar said, "students during FY2021 were forced to stay home and access their education via Chromebook remotely, which resulted in significantly lower operating costs, including reduced transportation costs and lower energy costs. Additionally, school administrators made conscious decisions to postpone standard purchases while in a COVID-19 remote/hybrid shutdown. As a direct result, both the regional school district and the two member towns will benefit financially."
Town officials are also recommending the approval of articles 16 and 17 which are, respectively, transfers of $650,000 and $425,000 into the town's capital stabilization and stabilization funds.
The fall special Town Meeting is scheduled for tonight, Nov. 1, at 7 p.m. at Dighton Middle School.
This article originally appeared on The Taunton Daily Gazette: Dighton COVID: D-R savings used to keep tax rate down
