A first look at the budget that would take effect on July 1, 2024 in Warren reveals signs of a community facing some difficult decisions in the weeks ahead as it navigates the fiscal consequences of an $8 million lawsuit settlement agreement the Town entered into this past December.

The $27.3 million preliminary budget for FY25, in the big picture, shows that Interim Town Manager Roy Borges and new Finance Director Dave Burlingame were able to assemble a budget that kept the overall tax levy increase below the state limit of 4% — with a proposed 3.26% proposed levy increase (from $26,477,167 last year to a projected $27,341,463 this year).

However, the proposed budget — which now goes before the Town Council for its first budget hearing tonight at Town Hall at 6 p.m. — requires a 4.03% overall property tax increase to get there.

The property tax rate proposed would increase from 13.77 to 14.33, while the tangible rate would remain the same, at 18.01.

Looking through the line items for each department (you can view the budget yourself on the Town website) revealed that very few requests from department heads received support for any funding above prior year spending. Most departments face a reduction in spending, while the few that saw increases to their budget from last year can be attributed to contractually required increases for salaries and benefits.

Additionally, a total of $19,194,700 in requested capital expenditures (the majority of which comes from an $18,000,000 ask to fund a new fire and rescue station and $375,000 for a new rescue truck), was whittled down to just $80,000 ($75,000 of which would be used for a new police SUV).

Grants and contributions mostly zeroed
Also noteworthy to community groups that rely on funding from the Town was the revelation that nearly all such groups had their anticipated funding zeroed in the preliminary budget.

This includes:

• $20,000 cut from the East Bay Center
• $17,000 cut from the East Bay Community Action Program
• $10,000 cut from the Warren Armory
• $5,000 cut for an anticipated mural at the Wastewater Treatment Plant
• $3,500 cut from the Town’s Memorial Day celebration
• $3,000 cut from Discover Warren
• $3,000 cut from The Collaborative
• $2,500 cut from the Warren Land Conservation Trust
• $2,000 cut from Warren Arts Night
• $2,000 cut from the Sowams Heritage Area Project
• $1,500 cut from the Imago Foundation for the Arts

All told, the Town spent $389,119 to provide funding for community groups and initiatives last year. That number is now down to $299,019 and would only fund only one such group: The George Hail Library, and even they are looking at a $7,000 cut from the prior year.

One notable initiative that remained funded was $7,000 for the Warren Summer Concert Series.

Additionally, the preliminary budget also includes a $225,000 draw from the Town’s ARPA money, and $80,000 to finance the aforementioned capital expenditures, which would come out of the town’s unassigned fund balance.

It should be noted that as of press time, the amount of money in the Town’s unassigned fund balance had not yet been publicly clarified, as Town officials had been in the midst of finalizing its audit of previous year spending and taking into account the necessary settlement payments; which includes a $5 million draw from the fund balance from the fiscal year that is ending and three, $1 million payments in the three fiscal years ahead.