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APPROPRIATION COMMITTEE-2.020 ATM 25 March 2020
<br /> debt service,which is administered by the Finance Department. Debt service is driven by current and past
<br /> capital expenditures and financing decisions.
<br /> Program 2000 FY2020 FY2021 %of Shared Change Change
<br /> Shared Expenses Restated Budget Expenses $ %
<br /> 2100 Employee Benefits & $36,512,823 $37,964,483 60.5% $1,451,660 4.0%
<br /> Insurance
<br /> 2200 Property&Liability $1,132,304 $1,095,000 1.7% °
<br /> Insurance ($37 304) (3.3/°)
<br /> 2310 Solar Producer $410,000 $410,000 0.7% $0 0.0/°°
<br /> Payments
<br /> 2400 Within-Levy Debt $9,853,984 $10,517,445 16.8% $663,461 6.7%
<br /> Service
<br /> 2510 Reserve Fund $900,000 $750,000 1.2% ($150,000) (16.7%)
<br /> 2600 Facilities $11,732,346 $11,990,390 19.0% $258,044 2.2%
<br /> TOTAL $60,541,457 $62,727,317 100.0% $2,185,860 3.6%
<br /> The recommended total Shared Expenses budget for FY2020 is $62,727,317,which represents an increase
<br /> of$2,185,860 or 3.6%over the restated amount for FY2020.
<br /> Employee Benefits &Insurance (2100)
<br /> As shown in the table below, Line 2100 includes costs for retirement; health, dental, and life insurance;
<br /> workers' compensation, unemployment insurance, and the Medicare tax. The total request for Employee
<br /> Benefits and Insurance is $37,964,483,which represents a$1,451,660 or a 4.0%increase over the FY2020
<br /> appropriation.
<br /> The table below provides a breakdown of the benefits budget by category. Retirement accounts for almost
<br /> 18%of the total,with virtually all of it going into the contributory retirement(pension) fund. The Town is
<br /> following a schedule of payments based on the 2018 actuarial study projected to eliminate unfunded pen-
<br /> sion liabilities by 2024. Once that goal is reached, and assuming the Town can maintain its fully funded
<br /> pension status, the annual cost for contributory retirement will be significantly lowered by reducing or
<br /> eliminating payments toward any unfunded pension liability (but see also the Post-Employment Insurance
<br /> Liability Fund in Article 17).
<br /> Benefits Category Amount Percentage
<br /> Health Insurance $27,026,973 71.4%
<br /> Dental insurance $1,139,837 3.0%
<br /> Life insurance $25,000 0.1%
<br /> Retirement $6,701,444 17.7%
<br /> Medicare $1,996,229 5.3%
<br /> Unemployment $200,000 0.5%
<br /> Workers'Compensation $875,000 2.3%
<br /> TOTAL $37,964,483 100.0%
<br /> Health insurance cost is by far the single largest item in the Employee Benefits budget,accounting for 71%
<br /> of the total.The FY2021 request for health insurance is$27,026,973,which represents a 4.1%increase over
<br /> the estimate for FY2020. The Town remains a member of the State's Group Insurance Commission(GIC)
<br /> health insurance program,which has helped hold down the rate of increase,but health care costs(nationally
<br /> as well as for the Town) continue to outpace general inflation. As it has been since FY2016,the FY2021
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