The major issues our community faced in 1997 have been growth and finances. Growth has many impacts - traffic congestion, loss of open space, increased demand for Town services and increased school enrollments. Finances present a challenge with respect to our ability to continue to provide Town services within the confines of Proposition 2 1/2 and to manage the property tax rate to minimize its burden while responding to community needs and growth.

   1997 reflected a year dedicated to prudent fiscal management. Prior to the 1997 Town Meeting, the Board of Selectmen, Appropriations Committee and School Committee worked cooperatively to reduce the Proposed Fiscal Year 1998 Budget impact by a $1/2 million to provide capacity to forestall a need within several years for an override toProposition 2 1/2 for operating expenses.

   The audited results of Town financial statements for Fiscal Year 1997 which ended on June 30, 1997, showed expenditures below the Budget and revenues exceeding Estimates resulting in a surplus of$668,122. This surplus has served to increase the Town's free cash to $2,850,000. Compared to Fiscal Year 1996, this represents an increase in free cash of over $1/2 million. This increase is noteworthy in that $750,000 of the prior year's free cash had been allocated to the Fiscal Year 1998 Budget to offset property taxes.

   The Budget approved at the 1997 Town Meeting was projected to require a 5% increase in property taxes over the Fiscal Year 1997 tax rate of $ 16.30; however, it is estimated that the increase will be 1.1% rather than the 5% due to revised revenue estimates reflecting additional new growth and increased departmental receipts. The projected tax rate is based on current assessed values plus estimated new growth for Fiscal Year 1998 and does not reflect the property revaluation currently being concluded for Fiscal Year 1998.

   The cooperative financial planning effort started prior to the 1997 Town Meeting continued throughout 1997 with the Board of Selectmen, Appropriations Committee and School Committee meeting on an ongoing basis beginning in the Fall of 1997 to plan and establish goals for the preparation of the Fiscal Year 1999 Budget.

   At the 1997 Town Meeting funding for construction of the renovations and addition to the Zeh Elementary School was approved. The project will help to relieve student overcrowding in the Town's three elementary schools and the capacity gained will allow fifth grade classes to return to the elementary schools from the middle school. At the 1997 Town Election the voters approved an exclusion for the debt on the Zeh School Project from the provisions of Proposition 2 1/2. This debt exclusion was a prudent financial management step in order to maintain capacity for the financing of Town and School operational needs.

   As I near the end of my first year with the Town I would like to take this opportunity to express my appreciation for the warm welcome Pam and I have received in Northborough. l would also like to take this opportunity to acknowledge the efforts of Assistant Town Administrator Stacia J. Smith for her assistance and support in my orientation to the Town as well as to recognize her fine efforts during her service as Acting Town Administrator prior to my appointment. l would also like to thank Diane Wackell and Teresa Kelly of the Office of the Board of Selectmen for their assistance during the year, as well as that of the Town Department Heads.

RESPECTFULLY SUBMITTED,
BARRY M BRENNER, TOWN ADMINISTRATOR