02/10/2025 SELECT BOARD Minutes - Laserfiche WebLink

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8 Select Board Minutes February 10, 2025 NEW BUSINESS Presentation of Town Manager's FY 2026 BudgetRecommendations: _............... 44�er -1 -------------- Town Manager Rodney C. Collins presented his FY 2026 Operating Budget recommendation to the Select Board. The$80,920,273 budget including wastewater represents a 6% overall increase. Most of the budget adjustments are attributed to merit steps and/or cost of living increasements consistent with employment obligations. The Town increase is approximately 3.8%with no fixed costs or school costs. The School increase is 3.T/o. As a result of one additional student, the Cape Cod'Technical School Budget has increased by 2.8%. This is a balanced budget to cover necessary expenses and mission critical needs as well as the articles anticipated to be funded at the May 5, 2025 Town Meeting. Included is the reclassification of a part-time plumbing inspector to fall-time,reclassifying substitute custodians to one fall-time custodian and the reclassification of a part-time activities coordinator at the Senior Center to the Council on Aging. The Wastewater Management budget will transition to its long-term operational status. To conform to the requirements of the State Revolving Fund(SRF) loan, the operating costs of the wastewater facility will become an Enterprise Fund to eventually sustain itself through user rates and fees. Until such time the facility becomes operationally funded, Free Cash or Funds Available for Appropriation will subsidize the Wastewater Management budget until it is 100% self-sufficient and is no longer a draw on the tax levy. Other fixed costs such as the Veterans budget, Retirement, Unemployment, and Insurances are good faith estimates. Principal and Interest Inside Debt increased as a result of new Street Betterment projects to be paid with Street Betterment funds. Principal and Interest Outside Debt increases are attributed to the debt exclusions for capital bonds which include the school fIVAC, design/engineering for a new police station, a new fire truck and DPW roof repairs. The wastewater debt for Phase I and IA will be paid through the WIIF and Wastewater Stabilization Accounts. Of importance is the 2 Y2override projection envisioned for FY 2022 or FY 2023 which has been avoided. This is attributed to sound fiscal policies and management as well as maintaining a Triple A bond rating while avoiding a tax levy, and for preserving a progressive and balanced capital improvement program. Town Manager Rodney C. Collins indicated the FY 2026 Department Requests amounted to $81,731,146. With due diligence the Town Manager's Recommended Budget was reduced to$80,920,273. Dawn Thayer,Finance Director re-affirmed the Town Manager's Recommended FY 2026 Budget as presented. It was agreed that copies of the debt schedule would be forwarded to the Select Board members. For clarification it was noted the WIIF is a separate wastewater infrastructure investment fund comprised from the 1%WIIF surcharge and the Wastewater Stabilization is funded from the occupancy tax (75%). The funds are both secure and separately used for wastewater debt. This revenue stream will offset the Phase I and Phase IA costs to the taxpayer. Phase 11 wastewater will require additional revenue sources.