Politics & Government

Preliminary Town Budget Has $42K Surplus

Considerable savings to be realized in coming fiscal year on health insurance and other items, allowing a small town surplus. Links are included to previous articles on the town budget process.

Town officials are weighing a 2.9% budget increase for the town as they head into the new fiscal year.

At a selectmen's meeting earlier this week, Town Administrator Bill Gustus delivered a presentation on the various budget items that Lynnfield residents will consider at the April town meeting.

Overall, the preliminary FY '13 budget calls for $43,025,890.36 in total expenditures, on $43,068,313.79 in revenues. This would amount to a surplus of $42,423.42 for the town - a pleasant contrast to the Prop. 2 1/2 override and layoff worries that characterized the process last spring.

Find out what's happening in Lynnfieldwith free, real-time updates from Patch.

A couple of factors are helping the town save on costs in the coming year. First, last year's deal on health insurance costs for town employees managed to do more than prevent teacher layoffs in 2011 - it's also helping the town see some substantial savings this fiscal year and beyond, largely because the workers will be on the less expensive GIC insurance plan for the entirety of the coming year. Last year, many were transitioning away from the town's former plan with Blue Cross.

The town is saving nearly $125,000 on total health care costs next year, from retirees to current employees across the various departments. School employees will account for another $75,000 in health insurance savings to the town. This has contributed to the town's ability to increase its pension contributions next year by about $150,000, marking a 9.6% increase. Pension funds were battered nationwide during the recession and Gustus noted that there is still some progress to be made toward a full recovery of those losses. Total employee benefits will go up 0.89% in the new budget.

Find out what's happening in Lynnfieldwith free, real-time updates from Patch.

In another area of significant savings for the town next year, the fire department budget has a 31.7% drop in call department salaries, bringing that total down from about $376,000 last year to $257,087 in the new fiscal year.

Editor's Note: Attached to this article are articles from prior weeks about the various budget requests put forth by town departments during the current process.


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