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2.02.1-1 STM APPROPRIATION COMMITTEE I NOVEMBER 2021 Introduction The Appropriation Committee reports on the Town's annual budget as adopted by the Select Board,and on subsequent changes and additions to the budget.including an assessment of the budget plan and a projection for future years' revenues and expenses. This report includes the Committee's analysis and recommenda- tions regarding all anticipated appropriations of Town funds, and other municipal matters that may come before Town Meeting.This report is distributed as an electronic document via the Town website.The Com- mittee also makes presentations during Town Meeting, including recommendations on appropriations and other matters for which the Committee's formal position was pending at the time of publication. The Committee's goal is to publish its report at least one week prior to the start of each town meeting,with the understanding that financial articles could be taken up on the first night of the town meeting. Committee Membership Anil A. Ahuia was appointed to the committee shortly before the start of the 2021 Annual Town Meeting. Due to the timing, he could not contribute to our report for the Annual Town Meeting, but he is now part of the team. With one vacant seat,the Committee presently has eight voting members. Vineeta Kumar was appointed to the committee at the same time,but unfortunately,she was unable to serve due to a conflict with the Town Meeting Member Association's bylaws for its Executive Committee. Reserve Fund As of publication,the Committee has not been asked to approve any Reserve Fund transfers during FY2022, and the balance in the Fund remains at$750,000. As always, any remaining funds will revert to Free Cash at the end of the fiscal year. Developments Since Adoption of the FY2022 Budget The Town has begun to support staff working in offices, and to provide in-person services at the Town Office Building. The Committee has chosen to continue meeting virtually via Zoom. New Growth The Assistant Town Manager for Finance reports that the Town's "new growth" revenue is now projected to be just under $5 million, approximately $2.25 million more than the $2.75 million originally budgeted for FY2022. This is a direct result of continuing robust development of both commercial and residential real estate. Given the inherent volatility of the real estate sector of the economy,the Town uses a conserva- tive estimate for new growth to limit any potential revenue shortfall in the budget. The Town treats excess funds from new growth as one-time revenue during the current fiscal year, but in subsequent years they are incorporated into the base tax levy. Assuming that the state Department of Rev- enue certifies our FY2022 new growth figure prior to the start of the 2021-1 Special Town Meeting, the money will be available for appropriation by Town Meeting. Itis proposed that most of this additional revenue be appropriated for capital projects under Article 5 (Police Station) and Article 7 (Westview Cemetery),with the remaining balance going to the Capital Stabilization Fund under Article 3. Updates This report presents the official positions of the Committee as of the date of publication. The Committee will continue to meet as necessary prior to and during Town Meeting and may revise its official positions based on new or updated information. In a typical year,the Committee also reports orally to Town Meeting on each article.The oral report summarizes the Committee's current position,which may have been updated following publication of this report. 2