Grim picture painted of Shrewsbury's fiscal plight

Grim picture painted of Shrewsbury's fiscal plight

By Elaine Thompson TELEGRAM & GAZETTE STAFF
ethompson@telegram.com

SHREWSBURY — As the town previews its future financial condition, little or no help is expected from the state and federal governments and there are limited opportunities for additional cost reductions or expanded commercial revenue, Town Manager Daniel Morgado told selectmen Tuesday night.

Mr. Morgado's comments were made during the continuation of a financial workshop for the board.

He said the town's opportunity to generate significant revenue from commercial growth is limited because of the town's low tax rate, scarcity of land, and water and sewer capacity limitations.

He said all of the commercial, industrial and new growth in Shrewsbury since 2000 totaled $112.1 million. The 111-acre Norhthboro Crossing shopping plaza in Northboro generated $108.1 million in new growth.

In order for Shrewsbury to generate $5 million in revenue, four $100 million projects, the size of Northboro Crossing, would have to be developed. "But first we'd have to find 111 acres. There are not many large wide open parcels of land left in town," he said.


It would take three $100 million projects in Northboro to get $5 million in revenue because Northboro's tax rate is 58 percent higher than Shrewsbury's, Mr. Morgado pointed out.

"This is an excellent illustration of the dilemma we're up against when it comes to economic development," Selectman Moira Miller said.

Mr. Morgado said he often hears that if the town waits long enough school enrollment will plummet so the school budget could be reduced. "That's not going to happen. School enrollment is not going down anytime soon. We are at 6,000 plus for at least through 2022," he said.

Mr. Morgado also noted that while the town's population has continued to increase, 18 percent of the municipal workforce has been reduced since fiscal 1998.

The board also rewrote several fiscal policies. In the past few years, the board has said it would not place an override on the ballot. Under the new policy, adopted Tuesday night, the board may consider bringing an override forward to supplement funding for the fiscal 2015 budget "after evaluating all options and considering all budget outcomes resulting from staying within the town's existing revenue stream."