2022-06-23-AC-min - Laserfiche WebLink

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06/23/2022 AC Minutes 3 Ø $1,500 to be transferred to the SB personal services; this is related to contract settlements as described above. • Reserve Fund Transfer, which must be approved by this Committee: Ø $80,188 for potential use to cover unexpected Fire Department overtime expenses (often related to Covid-19 illness and quarantines). Staff is asking the SB to approve the use of American Rescue Plan Act (ARPA) funds for those unexpected and extraordinary costs associated with Covid-19 illness and associated quarantines. If this is not approved, the alternative is to use the Reserve Fund. There was discussion about the pros and cons of contingently approving a Reserve Fund Transfer. It was agreed that the motion should include a recommendation to use ARPA funds for this situation. The town has received approximately $9.9 million in ARPA funds and has only spent about 10% of them. They must be allocated by the end of Calendar Year (CY)2024 and spent by the end of CY2026. A motion was made and seconded to approve a $50,000 Public Works-Compost Revolving Fund increase. The motion was approved by a roll call vote. VOTE: 6-0 A motion was made and seconded to recommend approval of an $89,274.11 transfer from snow removal expenses to snow removal personal services. The motion was approved by a roll call vote. VOTE: 6-0 A motion was made and seconded to recommend approval of a $75,000 transfer from Fire Expenses to Fire Personal Services. The motion was approved by a roll call vote. VOTE: 6-0 A motion was made and seconded to recommend approval of a $44,812 transfer from the Salary Reserve Fund to the Fire Department, Personal Services. The motion was approved by a roll call vote. VOTE: 6-0 A motion was made and seconded to approve an $80,188 Reserve Fund transfer for unexpected Fire Department Personal Services expenses related to Covid-19 illness and quarantines, with the understanding that this transfer would not be implemented if the SB votes to use ARPA funds for this purpose. It was agreed that this Committee would prefer that ARPA funds be used. Ms. Kosnoff agreed to convey this Committee’s positions when forwarding this Committee’s decision to the SB. The motion was approved by a roll call vote. VOTE: 6-0 Potential Effects of Inflation on Town Finances Mr. Bartenstein noted that the Town has been experiencing 5.0% tax increases based on the 2.5% Proposition 2½ restriction and new growth. If inflation exceeds 5.0%, the Town could see deficits that require an operating override or reducing expenses. Ms. Kosnoff agreed that there are challenges, noting increases in energy, construction, and borrowing costs. She said that a $3.1 million Bond Anticipation Note issued yesterday resulted in a net interest cost of 2.3%, in contrast to the approximately 1.0% seen in the recent past. The budget is still using 4.0% but this needs to be monitored. She reviewed reasons that the in-levy debt has some protections at this point in time, but she is concerned about excluded debt projections because of the construction cost increases. Additionally, inflation is expected to impact the bargaining process with unions as well as for outside contractors. She said the FY2023 budget is “okay” and various current contracts should help control some costs into FY2024, but assuming inflation increases, the challenges will increase, particularly if there is a recession. She noted that the SB has been clear that an operating override should be avoided. Future Meetings