New Revenues Will Be Key In Fixing Budget Shortfall

Lynnfield officials are homing in on several specific revenue-raising strategies aimed at closing a budget shortfall that exceeds $1.5 million.

At this week's selectmen's meeting, Town Administrator Bill Gustus ran down the list of potential revenue-raisers for the town and how much each may be able to generate.

Health Insurance Savings Crucial To Closing Budget Gap

The largest part of this effort, according to Gustus, would be an attempt to secure about $750,000 in health insurance savings from town employees. He added that talks are already underway with the employee unions, while emphasizing that considerable savings could be secured in areas like the design of the healthcare plans themselves – such as creating more of a financial disincentive for people to use the emergency room instead of their own primary care doctor.

With about half of the budget deficit potentially to be closed by health insurance savings, Gustus went on to discuss several other options for the town during last Monday's presentation.

Meal Tax, Municipal Fees

For example, the town administrator indicated that a local option meal tax is on the table, and that five surrounding communities have already adopted one. When the option for a local meals tax was introduced a couple of years ago, the plan was thought to be able to generate up to $125,000 for the town.

Gustus added that "municipal fee hikes in many different areas" are possible, ranging from alcohol licenses and town clerk fees to building fees.

Later, Select Board Chairman Al Merritt noted that "we are attempting to spread the impact of these costs so that only about 25 percent are broad-based affecting all homeowners, while 75 percent are borne nby specific users of the services."

Trash Costs Eyed As Well

Finally, a "pay as you throw" trash plan is another prospect for Lynnfield residents to consider. Under the plan, explained Gustus, a family of four that recycles would use about one 33-gallon trash bag each week that would cost $1.75. There would also be a smaller bag available that would cost $1.

"If all of these things come together, we will have in fact closed the $1.525 million hole that we currently have in our budget," said Gustus.