If you want to see a snapshot of the pandemic’s impact on everyday life, compare categories of local receipts between the first quarter of fiscal year 2020 and the same period this year, which ended on September 30.
Victor Garofalo, the town’s director of finance, reviewed some of those comparisons with the Finance Committee as part of their discussion of fiscal 2022 budget prospects on October 15.
As expected, in the first quarter of the current year, taxes paid for hotel and motel rooms fell by 70 percent over the previous year. Garofalo pointed out that declining business travel and canceled or shrunken events like weddings contributed to this outcome.
The tax paid on meals dropped by 40 percent, Garofalo continued, and in similar straits was the money the town receives from jet fuel sales at Hanscom Field, reflexing the significant drop in air traffic.
In normal times, Garofalo takes property tax and other revenues and generates additional income through short-term investments. The finance director used a technical term to describe the current status of that option — “tanked.”
Another category registering a 40 percent decline was the excise tax resident pay on motor vehicles. Garofalo surmised that “people are keeping their cars longer.”
Garofalo pointed out that current revenue for licenses and permits are showing stronger than expected Stanton added that permit fees for construction of the planned 100,000-square-foot Ultragenyx facility on Middlesex Turnpike could be as much as $1 million later this fiscal year.
She added that her office is negotiating with a prospective tenant for a vacant building that could bring hundreds of jobs.
“The town launched a streamlined online permitting system in the middle of Covid that allows us to recover quicker things that have been delayed,” the town manager told the committee. “Sharp, effective permitting process helps recruit life sciences companies.”
There are no prospects for matching last year’s $7,000 in library revenue this fiscal year, Garofalo said. Indeed, Stanton noted, “The regional trend is to waive fees entirely. It’s a very small number in the overall scheme of things.” The finance director said he will be speaking to the chief of police on projecting revenue from traffic fines.
Another line item in local receipts is water, which is estimated to increase because more people are staying home, Garofalo said. Unlike other revenue lines, the town has to purchase the water.
In answer to a question, Stanton said the town has not received any requests for installing 5G wireless transmission equipment. Currently, wireless carriers rent space on a communication tower off Crosby Drive. The town realizes $200,000 in rental fees a year, but 5G technology could make those transmitters obsolete.
Mike Rosenberg can be reached at [email protected], or 781-983-1763
Click this link to learn more about The Bedford Citizen’s first community reporter.
Loading ...
