Town Manager Gretchen Neggers said the town's expenses are approaching 25% of its annual budget.
MONSON – Even with a few million dollars expected from the federal government to help cover expenses related to damage by the June 1 tornado, Town Manager Gretchen Neggers said the town will have extraordinary expenses to pay from its own treasury.
“This is approaching 25 percent of our annual budget,” Neggers said Tuesday during a report to selectmen on damage and recovery efforts.
Neggers said she is hoping that federal disaster money could come to the town in a way that has the Federal Emergency Management Agency picking up 90 percent of the recovery cost, which has been discussed by congressional representatives as an alternative to the 75 percent share, which is traditionally kicked in by the federal government.
Neggers also said she would hope that the state could provide some assistance to the cities and towns that were hard hit by the tornado.
Homes, businesses, government buildings and trees and other vegetation were severely damaged in the June 1 tornado.
Neggers said the tree and vegetation removal costs have already topped $3.4 million, and she expects they will eventually reach $5 million.
Without a change in the federal disaster relief formula or a contribution from the state government, the town will wind up paying 25 percent of that cost.
Monson Town Administrator Gretchen Neggers discusses the town's financial position to date following the tornado.Neggers said town officials will meet July 6 with insurance company representatives and engineers to discuss what is to be done with the heavily damaged town office building.
“A lot depends on what structural damage there is besides the roof coming off,” Neggers said. “There is still water coming into the building and ceiling tiles are coming down.”
Most town departments are now operating out of Hillside Elementary School, and the Police Department has been working out of temporary office trailers.
Neggers said that besides the damage to the town office building, there was roof damage at the Highway Department, its salt shed, the Water Department, the Park and Recreation Department gazebo and storage shed and the skate park. Several town vehicles were destroyed or heavily damaged, she said.
There were also 238 homes with substantial damage, and $11.9 million in value loss to private property has been reported to the Board of Assessors, which will have to factor the final amount into calculating the tax rate.
Neggers said the amount of value loss reported for assessment purposes would translate into about a 26 cent increase in the tax rate and roughly $50 in additional property taxes for the average homeowner who did not lose value during the storm.
“These values will eventually come back, but right now that is almost $12 million in value lost,” Neggers said. “All of the land retains its value.”