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2022 ATM,2022-1 STM APPROPRIATION COXMTTEE 21 MARCH 2022
<br /> Shared Expenses (2000)
<br /> Shared Expenses covers appropriations for various activities that serve multiple departments but are managed or
<br /> carried out by a single office. Although these amounts do not appear in the budgets of LPS or individual municipal
<br /> departments, most are driven primarily by the complement of employees of or the facilities and capital equipment
<br /> used by the various departments. Others, including insurance premiums and payments related to solar energy
<br /> facilities, concern the overall operation of the Town.
<br /> As shown in the table below, 65.0% of shared expenses fund employee benefits, which are administered by
<br /> municipal staff, but which are driven by current and past staffing decisions made by both LPS and the municipal
<br /> departments. The second largest line item supports facilities managed by the Public Facilities Department for use
<br /> by LPS and municipal departments. The third largest line item is within-levy debt service, which is administered by
<br /> the Finance Department. Debt service is driven by current and past capital expenditures and financing decisions.
<br /> For FY2023,the $750,000 appropriation for the Reserve Fund is at the same level as in FY2022. For a longer-term
<br /> history, see Brown Book Appendix C, "Summary of Reserve Fund Transfers."
<br /> Program 2000 Shared Expenses FY2022 FY2023 %of Shared $ %
<br /> Restated Budget Expenses Change Change
<br /> 2100 Employee Benefits &Insurance $ 39,754,560 $ 41,744,415 65.0% $ 1,989,855 5.0%
<br /> 2200 Property &Liability Insurance $ 1,095,000 $ 1,095,000 1.7% $ %
<br /> 2300 Solar Producer Payments $ 390,000 $ 390,000 0.6% $ %
<br /> 2400 Within-Levy Debt Service $ 10,397,112 $ 7,541,580 11.7% $ (2,855,532) (27.5)%
<br /> 2500 Reserve Fund $ 750,000 $ 750,000 1.2% $ %
<br /> 2600 Facilities $ 12,153,365 $ 12,669,307 19.7% $ 515,942 4.2%
<br /> TOTAL $ 64,540,037 $ 64,190,302 100.0% $ (349,735) (0.5)%
<br /> The recommended total Shared Expenses budget for FY2023 is $64,190,303, representing a decrease of$349,735
<br /> or 0.5%from the restated amount for FY2022.
<br /> Employee Benefits & Insurance (2100)
<br /> As shown in the table below, Line 2100 includes costs for retirement; health, dental, and life insurance; workers'
<br /> compensation, unemployment insurance, and the Medicare tax. The total request for Employee Benefits and
<br /> Insurance is $41,744,415, a $1,989,855 (5%) increase over the FY2021 appropriation. The table below provides a
<br /> breakdown of the benefits budget by category.
<br /> Benefits Category Amount Percentage
<br /> Retirement $ 8,176,027 19.6%
<br /> Medicare $ 2,054,651 4.9%
<br /> Health Insurance $ 29,554,494 70.8%
<br /> Dental Insurance $ 1,109,243 2.7%
<br /> Life Insurance $ 25,000 0.1%
<br /> Unemployment $ 200,000 0.5%
<br /> Workers Compensation $ 625,000 1.5%
<br /> TOTAL $ 41,744,415 100%
<br /> Virtually all of the appropriation for retirement will go toward the contributory retirement (pension) program, i.e.,
<br /> into the Retirement Fund; a very small portion will go toward non-contributory retirement benefits for the few
<br /> employees who retired prior to the establishment of the contributory retirement program. The appropriation will
<br /> address both current year payouts from the Retirement Fund and an amount that moves the Fund toward full
<br /> funding of the Town's pension liabilities. To fully fund these liabilities, the Retirement Board has increased the
<br /> planned appropriations into the Retirement Fund and has stretched out the funding schedule by two years, i.e., to
<br /> 2030. For FY2023, the recommended contributory retirement appropriation is increasing by 10.0%to $8,159,250.
<br /> Of that amount, $400,000 will be funded from Free Cash, as was done for FY2022. In the Retirement Board's
<br /> present plan the appropriations under this line item will increase by $750,000 per year until 2030. Once the full
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