In accordance with Article 6-3 of the Grafton Home Rule Charter, Town Administrator Evan Brassard wrote that he was pleased to present the Fiscal Year 2025 Balanced Budget, which incorporates information regarding revenue projections (both state aid and local receipts) and department expenditure requests.

 As Grafton enters FY2025, it continues to maintain a secure financial future and an AA+/Strong Bond Rating. Despite the unexpected cost increases and decreases in State Aid over the past year the FY25 Budget is balanced and does not see a reduction in any services. This is due, in large part, to the work of dedicated Town Staff over the past year to address many of the short-term influences on the budget, and our overarching priorities.

Short Term Factors

Increases in the cost of Health Insurance remain a major factor in balancing any municipal budget. In FY24, the Town joined the Massachusetts Strategic Health Group (MSHG) which is a conglomerate of Towns in Massachusetts purchasing Health Insurance as a block to reduce costs. Joining MSHG helped to lower our projected increase from upwards of 9%, down to 5.3%. While this increase still had an impact on the budget, it was lower than originally anticipated, and therefore easier to absorb.

 While Health Insurance remains a short-term factor that impacts our expenditures, our dedicated staff is always taking action to bring in one time revenue to address these types of issues. In FY23, Grafton received almost $2.8 Million in one time Grant Funding. At the time of writing this message, January 2024, the Town has been awarded almost $700,000 in Grant Money. These funds allow us to pursue studies, fund programs, and complete projects, that would otherwise be overlooked while building the budget. Because of our staff’s proven track record in applying for and receiving grants, we are able to make taxpayer dollars go further.

Priorities and Issues

Priority – Maintain Override Capacity

When the Town passed an Override in 2019, the vote was taken with the goal in mind to make the additional funds last five years. As we enter year five, we are happy to report that the funds have lasted for the desired period of time. This was done while continuing to meet our Departmental needs to adequately deliver services to Grafton Residents.

Priority – Fund Schools Competitively

Town Administration and the Superintendent have worked closely to ensure that our School System continues to receive the funding it needs to deliver quality services. Increases in the Cost of Living and expenses in the department posed a difficult problem for the FY25 budget, but through close collaboration between the Town and Schools, the Department is getting what it needs. This close working relationship will ensure that the Schools will continue to function at a high level, and deliver quality services to our young residents.

Priority – Public Safety

In FY25 Grafton will hit its goal of bringing the Police Department up to the recommended staffing levels outlined by the FBI, by bringing on a 25th Officer. Additionally, there has been a greater push to recruit members into the Grafton Fire Department. Adding staff to both of these departments ensures that Grafton Residents continue to be safe in their homes and receive a prompt response when calling emergency services.

Priority – Creating a Competitive Work Environment

There is a growing interest in Municipal Jobs in Massachusetts. Whether it’s a student entering the workforce for the first time or someone looking to make a mid-career change, people are realizing that Municipal jobs are an exiting option. Being a competitive employer and offering attractive compensation packages, in both salary and benefits, will ensure Grafton is able to recruit talented staff members with the diverse skills needed to manage a municipality.

Issue – Waste Reduction and Hauling

The increasing cost of solid waste hauling and disposal remains an outstanding factor in many municipal budgets. While the cost increases present a potential issue for future budgets, the Town is taking proactive steps to reduce our overall costs. In FY24, we spun up our first ever curbside composting program, and continue to have more households register every week. This program is going to go a long way in removing organics from the waste stream and keeping costs under control. The Town is also looking at a proposed increase in bag fees. An increase occurred in 2022, and in order to keep 50% of the program covered, another increase will be required.

 Issues – Volatile State Funding and Cannabis Income

State revenue remains a volatile funding source, with a new administration with new priorities. Funding that was once guaranteed is now in a state of flux as we adjust to a new set of expectations. In addition to this, the State recently passed legislation that changed any Host Community Agreement towns had with cannabis facilities. This change led to a large reduction in the revenue we expected to see from these businesses. The Town will continue to take a conservative approach to these revenue sources to ensure the budget is balanced within a realistic frame of mind.