Have You Read the Collins Center Report?

By Jeffrey North

Belmont is a relatively affluent community. Massachusetts Department of Revenue figures in FY2022 show that Belmont’s income per capita was $98,942. This figure is very close to the average income for residents of six comparable towns and significantly higher than the Massachusetts per capita income of $46,062. Yet Belmont is the 10th most expensive place in Massachusetts to own a home, while per-capita incomes ranked only 22nd in the state. 

The average Belmont homeowner can expect to pay $15,568 annually in property taxes, or approximately 15.73% of Belmont’s per-capita income. Among 12 comparable towns, Belmont has the second-highest real estate tax bills after Brookline and more than double the tax rate (as a percentage of income) of Weston, Wellesley, Sherborn, and Dover. 

The town of Belmont had commissioned the Edwards J. Collins, Jr. Center for Public Management (the Collins Center) to examine its financial organizational structure, and in June, received the results of that study, a compelling report titled Financial Organization Structure Review, Town of Belmont, Massachusetts.

It is a must-read for Town Meeting members, elected and appointed officials, and anyone from the “roster of well-qualified officials, employees, and interested citizens who are dedicated to the financial well-being of the town,” as the Collins Report says. 

The Collins Center project team examined the roles and responsibilities of elected and appointed finance staff, boards, and committees, and their relationships established by Belmont bylaws, job descriptions, and past practices. The project team worked with town staff to collect all relevant data and documents, and the team conducted interviews with the staff and elected and appointed officials and developed a set of comparable peer municipalities using the criteria described in this report. Finally, the project team compared the town’s practices with generally accepted best practices published by professional organizations such as the Massachusetts Municipal Association and the Government Finance Officers Association. 

The report discusses the significant financial challenges that Belmont is facing. These challenges include a structural deficit and an organizational structure that impedes the ability of the town to address these challenges. 

The project team wrote, “The Town cannot continue to manage its finances in such a way if it hopes to avoid, in the near future, a ‘fiscal cliff,’ the point when revenues can no longer cover operating expenses. Nevertheless, the town has a chance to reduce the negative impacts by implementing the report’s recommendations. 

The Collins Center project team arrived at a host of findings and recommendations for financial structure and financial operations. They include:

• Align annual budget process with the established best practices outlined by the Massachusetts Department of Revenue Division of Local Services. 
• Build a financial management team with an appointed finance director and more clearly define and strengthen the powers and duties of the Select Board and town administrator in connection with financial management and the annual budget process. 
• Examine and develop all sources of revenue to reduce and eliminate the structural deficit, including payment in lieu of taxes (PILOT) agreements, municipal fees, and local receipts. 
• Develop a comprehensive strategy for reducing overall expenses, and prioritize adequate cash reserves from a diversified tax base.
• Review the capital planning process and seek to conform with best practices. 
• Repair or replace the computer-assisted mass appraisal system, which has been deficient since at least 2011. 
•  The Collins Center report states, “Belmont has a roster of well-qualified officials, employees, and interested citizens dedicated to the town’s financial well-being. Belmont benefits from their involvement in the town’s governance and management.” According to the report, a new focus on planning and economic development  could attract vibrant activity, expanded levy capacity, and some relief from the tax burden on residential taxpayers.

The Select Board’s rankings of the Collins Center’s recommendations and the actions for addressing each recommendation are available on the Belmont town website. 

“The Collins Center report has been a long time coming and is the result of a lot of work. The recommendations are clear and some will require changing how we think about the town’s operations,” noted Select Board member Adam Dash.  “I believe that we need to move quickly on implementing the bulk of the recommended changes so Belmont can fix its structural deficit. This will take courage, as some of the recommendations ask for large changes, but we need to adapt to the present and responsibly move forward.”

The Edward J. Collins, Jr. Center for Public Management is attached to the McCormack Graduate School of Policy and Global Studies at the University of Massachusetts Boston. Established by the state legislature in 2008, this think tank is dedicated to improving efficiency, effectiveness, governance, and accountability at all levels of government, with a particular focus on state and local government. A staff of practitioners brings a comprehensive set of services to scores of the Commonwealth’s cities, towns, school districts, state agencies, and many  municipalities in other states.   

Jeffrey North is the managing editor of the Belmont Citizens Forum Newsletter.