After a period of serious systemic budget deficits jeopardizing Belmont’s financial stability, the Select Board formed the Structural Change Impact Group (SCIG) to recommend both short- and long-term opportunities to put Belmont on a more sustainable financial footing.

The SCIG was charged with investigating and recommending changes which may impact the Town’s economic condition, structural deficit challenges, or operational approach to delivering services to the community. After collecting and analyzing numerous ideas spanning a range of topics, SCIG identified several themes and through-lines in the ideas and in our ensuing recommendations.

Some ideas seem to be intended purely for financial impact. However, most ideas targeted improvements to the Town’s operational approach in some way, usually producing financial benefits downstream.

The most impactful ideas can be grouped into three broad categories: (1) economic development and revenue maximization, (2) governance structure and style, and (3) best practices for modern municipal services. There are finer themes within each of these broad categories, as discussed in the following recommendations.

Throughout this report, the use of the word “Town” refers to both town departments and the school department, where applicable.

Economic Development and Revenue Maximization

New Revenue Opportunities

SCIG recommends that the Town adopt a real estate transfer fee program. There is currently legislation pending at the state level. If it passes, Belmont can simply adopt it. If it does not pass, Belmont can join with several other nearby communities that have designed local programs and are seeking home rule approval by the state. [Idea #275]

SCIG recommends that the Town implement prorated tax assessments on qualifying new construction and improvements. To do this, the Assessors’ Office should identify current projects that qualify under the parameters defined by state law and devise a streamlined process to identify qualifying new projects in the future. [Idea #378]

SCIG recommends that the Town establish a Payment In Lieu Of Taxes (PILOT) oversight committee. This committee would be charged with producing and administering a local PILOT program. In addition, the financial impact of Chapter 61B tax exemptions (e.g., golf courses) should be evaluated, along with the potential for changing this state law. [Idea #101]

SCIG recommends that the Town pursue outside funding resource through grants and naming rights through sponsorship donations. When the Town does receive grant funding or sponsorships, the public should be made aware of these successes. Additionally, the costs and benefits of hiring a grant-writer should be further evaluated, whether insourced or outsourced. [Idea #23; Idea #34]

Zoning and Land Use

SCIG recommends that the Town evaluate town-owned parcels for their best use. The Town could create new revenue streams and reduce maintenance costs by selling or leasing land or buildings, or otherwise using town-owned real estate most efficiently. The Select Board should work with a group of qualified individuals to evaluate this on a property-by-property basis. [Idea #36]

SCIG recommends that the Town evaluate rezoning opportunities and create a new comprehensive master plan. In this way, the Town can promote redevelopment in line with community goals and ensure compliance with zoning requirements in state law. Grants could help fund assistance from the Metropolitan Area Planning Council (MAPC). [Idea #107]

SCIG recommends that the Town establish zoning for lodging establishments and adopt a room occupancy tax. Zoning bylaws can define limits on the scale, type, and location of such establishments. A room occupancy tax would apply to rentals of 90 days or less, and an additional community impact fee could apply to certain rentals of 31 days or less. [Idea #391]

SCIG recommends that the Town adopt short-term rental community impact fees and an accessory dwelling unit (ADU) bylaw. Adoption of these community impact fees depends on adoption of a room occupancy tax. Presuming that a short-term rental market creates pressure on the long-term rental market, an ADU bylaw would mitigate this effect. [Idea #271]

Governance Structure and Processes

Centralization/Standardization

SCIG recommends that the Town centralize the organizational structure of its government. Belmont’s current structure is highly decentralized. The lack of centralized authority and clear reporting lines weakens decision-making and accountability. Centralized management is key to accomplishing Town goals and reducing costs. [Idea #216]

SCIG recommends that the Town establish a Charter Review committee. A 2011 report from the Massachusetts Division of Local Services highlighted the decentralization of government in Belmont. The SCIG reaffirms the DLS conclusion that the Town should appoint a charter review committee charged with evaluating the merits of a new town charter. [Idea #413]

SCIG recommends that the Town adopt priority-based budget guidelines. A top-down, revenue-driven approach to budgeting is necessary to narrow the structural deficit. Belmont is at a unique point in time to begin this process, and the successes of many other communities can help inform our adoption. Further, the Select Board and School Committee should update budget documents to produce information that is useful and understandable to stakeholders. [Idea #39]

SCIG recommends that the Town implement a tool and process for evaluating insourced versus outsourced staffing. This decision support tool would assess whether a given function is better fulfilled by hiring an employee or by outsourcing through a contracted vendor. It should be developed in an iterative manner for ongoing use, not just a one-time audit, to optimize Town staffing costs and efficacy. [Idea #16]

SCIG recommends that the Town create a purchasing agent position. Belmont already saves money by participating in some multi-municipality purchasing programs, which should continue. Having a dedicated position would help maximize potential savings and find new opportunities for collaboration, while ensuring compliance with complex state purchasing law. [Idea #2; Idea #26]

SCIG recommends that the Town consolidate operations of the Higginbottom and Underwood pools. External access to the Higginbottom should be possible after construction is complete, allowing easier public access. A complementary recommendation is to set up an enterprise fund for the Recreation Department, including both pools. [Idea #79]

Regionalization

SCIG recommends that the Town establish a working group of Town Administrators. Belmont’s Town Administrator should take the lead in moving forward with the execution of this idea. Collaborating with nearby communities that are comparable to Belmont will enable the sharing of innovative ideas and solutions to common challenges. [Idea #108]

SCIG recommends that the Town maximize savings in its next solid waste contract. Significant cost savings are likely through regionalization and flexibility. A temporary Solid Waste and Recycling Committee was recently formed to assist in procuring the next contract. [Idea #250]

SCIG recommends that the Town evaluate opportunities to regionalize public services. Some specific services may be good candidates to regionalize immediately, such as waste collection, tree warden, and animal control. The Town should implement a process to regularly evaluate regionalization and connect with nearby communities on the topic. [Idea #330]

SCIG recommends that the Town evaluate regionalization of public safety services. Potential regionalization of 911 dispatch and Advanced Life Support services would require additional research through conversations with communities that currently participate in such arrangements, as well as the regional dispatch centers/districts themselves. [Idea #112]

Operational Efficiency/Best Practices

SCIG recommends that the Town continue to pursue withdrawal from Civil Service. Prior to a Town Meeting vote on withdrawal, the Town should develop an alternative system and conduct a cost/savings analysis for each affected department. The financial impact of withdrawal should be balanced against the non-financial benefits and costs. [Idea #33]

SCIG recommends that the Town continue to use Collins Center resources. By signing a Community Compact, Belmont has been able to access grant funding for assistance from the Edward J. Collins, Jr. Center for Public Management at UMass-Boston. They are a valuable resource that help local governments in Massachusetts on a variety of topics. [Idea #346]

SCIG recommends that the Town continue its transition to electric vehicles. The Energy Committee is writing a policy to specifically guide the transition of Belmont’s fleet to electric vehicles. Along with financial savings, implementing this idea helps the Town achieve the Climate Action Roadmap adopted by Town Meeting. [Idea #321]

SCIG recommends that the Town act on 2011 DLS recommendations to improve its payroll system. This includes converting from paper to electronic paystubs, printing accrued leave on the electronic paystubs, initiating electronic submission of payroll by departments, changing the submission and approval date for timesheets to Friday, and converting all weekly payroll to bi-weekly. [Idea #341]

SCIG recommends that the Town improve its financial modeling and budget forecasting system. A MUNIS module or other MUNIS-integrated software solution would eliminate error-prone manual data entry and report generation. This decision can be informed by reaching out to other towns to inquire about their financial software. [Idea #340]

SCIG recommends that the Town improve its fleet management system. The Town should develop and keep up to date a spreadsheet holding all key data attributes for each vehicle held by the town. The Town should write, deploy, and enforce a policy and procedures manual to guide use of town-owned vehicles. SCIG recommends that the town conduct a pilot utilizing a third-party software to report on key metrics using data gathered on each vehicle. This data will provide informed decision making to right sizing Belmont’s fleet, understand total cost of ownership, and forecast replacement vehicles for capital budgeting purposes. [Idea #54]

SCIG recommends that the Town improve its student information system. Feedback should be solicited from all stakeholders including parents/caregivers, with the goal of making the system as user-friendly as possible. This recommendation can be informed by reaching out to other school districts to inquire about their student information systems. [Idea #86]

SCIG recommends that the Town implement an employee recognition program. This should incentivize department heads to look for improved efficiency and financial savings opportunities. The goal is to achieve cost savings, without compromising on quality, by leveraging the knowledge of those closest to the service delivery. [Idea #336]

Employee Compensation/Benefits

SCIG recommends that the Town consider several actions regarding employee compensation and benefits. Ideas include job reclassification [Idea #60], health care premium cost sharing [Idea #337], and the specific recommendations below. Not all ideas have been fully evaluated in this report but, given that employment costs are approximately 75% of the Town’s operating budget, all ideas need to be further explored.

SCIG recommends that the Town take a more assertive role with the Retirement Board to review and make recommendations for improving investment returns and reduce administrative costs. The SCIG further recommends that retirement costs are taken under consideration with respect to both collective bargaining terms and hiring practices to contain overall growth and pension and OPEB liabilities. This involves extensive review and full transparency of many factors, including the details bargained with eligible participants, several actuarial assumptions, the returns generated by investment management versus alternatives, and associated administrative costs. [Idea #268]

SCIG recommends that the Town participate in the Group Insurance Commission (GIC) for health insurance. GIC is a state-wide plan that Belmont can join to replace its self-insurance plan. It is reasonable to expect, based on prior GIC plan design, that GIC FY24 will result in cost savings through economies of scale, while providing employees with quality benefits. [Idea #269]

SCIG recommends that the Town evaluate its vacation policy. Upon separation from employment, employees must be compensated for vacation time earned and accrued. However, employers may adopt policies to cap the amount of vacation time that an employee may accrue, thereby limiting non-forecasted and potentially sizeable financial liability. [Idea #53]

Town Cost Mitigation

SCIG recommends that the Town reduce streetlight brightness. Its new LED streetlights are centrally controlled via software, and cost savings could be significant by reducing lumen brightness below 100%. A complementary recommendation is to upgrade other exterior lighting to LED and programming them with lower output and on/off schedules. [Idea #318]

Best Practices for Modern Municipal Services

Technological Efficiency

SCIG recommends that the Town accelerate the implementation of a new Town website. A quality website is critical to increasing transparency, enabling the implementation of several other ideas in this report, and providing improved functionality for residents and employees. The Website Renewal Committee should prepare their recommendations as soon as possible, and the Town should proceed to contract and implement the redesign. [Idea #412]

SCIG recommends that the Town implement a 311 system. This would give residents the ability to report issues through the Town website and a mobile app. The system vendor should be considered in the broader ecosystem of software solutions deployed in relevant Town departments, to help them to keep an organized workflow. [Idea #221]

Transparency

SCIG recommends that the Town implement a Visual Budget website. Such a website would provide dynamic data visualizations for residents to see the Town’s budget, expenses, and fund balances. This could be accomplished through low-cost provider VisGov or as an open-source WordPress plugin. [Idea #38]

Recommendation for a Structural Change Implementation Team

We recommend that the Select Board create a Structural Change Implementation Team to prioritize and guide the implementation of recommendations in this report. This team should:

  • Consist of 5 to 7 members, with a priority on appointing members who previously served on SCIG. These individuals would be the most familiar with the recommendations and that continuity should help the efficiency of the team.

  • Review the recommendations in this report and make decisions on which to prioritize, in consultation with Belmont departments, boards, and committees.

  • Monitor progress being made on the implementation of these ideas and report progress to the Select Board at least twice per year.

  • Devise a web-based presentation of the matrix of ideas researched by SCIG, so this information is easily searchable by Belmont leaders and residents.

  • Consider how to make the practice of soliciting and researching ideas on potential structural changes a permanent part of Belmont governance, perhaps through a 311 system or, in the very least, an online form similar to what SCIG used.