Truro Fiscal

In the world of municipal finance, clarity isn't just about showing where the money goes today; it’s about showing where it’s headed over the next decade. For years, the standard has been a 5-year Capital Improvement Plan (CIP). While this served us in the past when debt levels were much lower, it no longer provides the complete picture that taxpayers need and deserve.

Truro is approaching a financial breaking point as municipal spending continues to rise while key revenue sources stagnate or decline. With property taxes capped under Proposition 2½ and local receipts and state aid increasingly volatile, the Town’s current revenue model can no longer keep pace with service costs. The article argues that relying on repeated overrides is not sustainable and that Truro must confront the expense side of the budget. It raises concerns about major new debt, particularly for a proposed DPW facility, and calls for a long-term financial plan and tougher choices by voters.

When new homes or buildings go up, the town’s tax base grows too. That’s called “New Growth,” and it’s meant to help fund services without raising everyone’s taxes. But does it always work that way? This article explains how new development affects Truro’s long-term budget.

Truro’s budgets increasingly lean on Proposition 2½ “escape valves.” Since 1990, voters have approved 43 General Overrides totaling $5.94M—permanently raising the tax levy base (now $21.97M)—and $19.83M in Debt Exclusions. The article argues this pattern nudges spending over 5% annual growth, doubling costs far faster than the 2.5% norm and eroding affordability. With a potential $30M debt exclusion in 2026, it urges stricter prioritization, reserve permanent overrides for essentials, use exclusions for one-time capital, and restore predictability for taxpayers.

The article urges Truro to codify capital budgeting: adopt a transparent, criteria-based prioritization process; enact a formal 5% debt-service cap (aligned with UMass Collins Center guidance); and require a project-level Debt Impact Statement for any new borrowing. This shifts the town from reactive, wish-driven spending (e.g., a $66M capital plan, 4× prior year's size) to disciplined decisions.

Truro’s Capital Improvement Program is funding nearly every request—but without a clear prioritization process or debt limit, are we heading toward financial quicksand? This eye-opening piece reveals how the Town approves 100% of capital requests with no formal system to rank them or define acceptable debt levels. Drawing from past practices and calling for bold action, it urges voters and officials to require transparency, discipline, and a documented roadmap before the next big decision digs the hole deeper.

Truro's capital spending is exploding, with a new 5-year capital plan totaling $66 million—15 times higher than previous periods and double the town's entire operating budget. Essential projects include building maintenance, fire engines, roads, jetties and water systems, but other items like the Walsh project and water pollution solutions remain unfunded. Town officials face difficult choices about priorities and funding sources as costs continue climbing beyond current projections.

Michael Forgione urges Truro to adopt a cap on its Debt Service Ratio (DSR)—the percentage of revenue used to repay debt—to maintain financial health amid rising capital project costs. It outlines how a manageable DSR ensures stability, boosts creditworthiness, protects taxpayers, and supports sustainable growth. With Truro’s DSR currently low at 2.7%, the time is right for proactive planning. Diversifying revenue sources, such as through solar energy, is also recommended to reduce future taxpayer burdens and increase fiscal resilience.