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(DRAFT V4) APPROPRIATION COMMITTEE 2020-2 AND 2020-3 SPECIAL TOWN MEETINGS 7 OCTOBER 2020 Introduction The Appropriation Committee is required to create a report with a review of the budget as adopted by the Select Board, and any subsequent revisions, 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 appropriations of Town funds that are anticipated, and other municipal matters that may come before Town Meeting. This report is published and distributed to the members of Town Meeting as a PDF file via the Town website. Official printed copies are produced for the Town Clerk's office and Cary Memorial Library for archival purposes. The Committee 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. Committee Membership Albert"Nick"Nichols resigned from the Committee in the summer of 2020 and relocated to another state to be with family. While his time on the Committee was limited, we appreciated his enthusiasm and bene- fited from his expertise. The Committee currently has seven members with two unfilled seats. Schedule for Report Publication This fall the Select Board has called for two Special Town Meetings, STM 2020-2 and STM 2020-3. The warrant for STM 2020-3 is limited to financial articles that could impact the Select Board's action when setting the FY2021 property tax rate in November. We anticipate that the articles in STM 2020-3 will be given priority in the scheduling of debate with the intent of dissolving STM 2020-3 before proceeding with STM 2020-2. The Committee's goal is to publish a report at least one week prior to the start of debate on financial articles. This report is being published on October 7, one week before the start of the 2020 Fall Special Town Meetings,based on the assumption that financial articles will be debated during the first session. Reserve Fund On June 29,2020,two transfers from the Reserve Fund were requested by the Town Manager and the Select Board. A transfer of$100,000 to the Fire-Suppression Overtime account was approved, and a transfer of $95,850 to the Off Duty Detail Police account was also approved. Both of these transfers were due to unanticipated expenses related to the Covid-19 pandemic. In FY2020,the appropriation to the Reserve Fund was$900,000 and the closing balance was$704,150.As always,the unused funds flow to Free Cash in the following fiscal year. In FY2021, the appropriation to the Reserve Fund was reduced to $750,000 in recognition of a downward trend in the use of the Reserve Fund in recent years. This policy was adopted prior to the Covid-19 pan- demic. Developments Since Adoption of the FY2021 Budget Navigating through the Covid-19 pandemic has been a challenge for the Town. The impact has rippled through every department including,obviously,the public school system.While many aspects of life in our town have remained relatively stable, there have been changes in the pattern of use for town services and facilities, along with new and unexpected requirements imposed on the Town's Public Health, Police and Fire Departments.The Town has seen increases and reductions in both revenue and expenses at every level. Basic questions about the short and long-term financial impact of the crisis have been compounded by great uncertainty around the timing and duration of these changes. 2