2022-11-16 FY2024 Budget Summit III-min

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In response to a question from Mr. Padaki (AC) regarding the Parking Fund, Ms. Kosnoff explained that very little revenue came into the Fund during the pandemic. The balance at the end of FY2022 was approximately $110,000. The intention is to fund this Fund until revenue increases again. The increase to the Cemetery Sale of Lots Fund has a lot to do with the Cemetery Building and the projection for debt service. In response to a question from Mr. Padaki (AC) regarding if the proposed solar panels on the school buildings will help to offset some of the increases to the Facilities budget, Ms. Kosnoff stated that this is true, though it is hard to say exactly what the offsets will be. While the panels are operational, it is unclear when the batteries will be turned on. Ms. Kosnoff reviewed the municipal budget challenges, such as the trash and recycling contract, the Facilities budget, gas, and diesel, two transportation contracts that are set to expire, multiple union contracts in negotiation, and supply chain disruptions and lead time. She noted that if some of the off-the- top expenses change from the projections, she would be open to allocating that extra revenue between the Town and School Department. She noted that she would not recommend further adding free cash into the operating budget unless it is to bridge a very temporary gap. Mr. Malloy explained that the Town does not charge a fee for curbside pickup. The projection for curbside recycling and refuse pickup is increasing from approximately $2M to a little over $3M. That consumes approximately 80% or more of the total allocation on the municipal side. He explained that he has recommended to the Board, for the FY2025 budget, to create an ad hoc committee to study the future of the Lexpress bus service. Currently, the transportation services cost budgeted in 2024 is approximately $937,000. These services bring in approximately $30,000 in revenues from fares each year. That gap has been growing each year, as fewer people have been riding Lexpress, while the cost has consistently increased. The Board is also considering bringing the Liberty Ride service in-house. Regarding wages and collective bargaining, the Town had six contracts open this year. Mr. Malloy explained that inflationary increases are being seen on everything for the supply chain, simply due to supply and demand. He stated that he and Ms. Kosnoff will be working on further rounds of cuts to the budget. He noted that the Select Board could consider setting a fee aside for sanitation services to offset that cost, though free trash pick- up has been a longstanding issue in Town. In response to a question from Ms. Hai (SB), Mr. Malloy explained that trash collection at the School Departments is approximately $250,000 a year and approximately $50,000 a year for all Town buildings. The amount for the Town buildings is currently absorbed in the Public Works Department budget. This may need to change. In response to a question from Dr. Hackett (SC) regarding the use of ARPA funds for the one-time expense of air quality in buildings, Ms. Kosnoff explained that ARPA funds can be spent on any municipal project. Mr. Malloy noted that the increases in the utilities for electric and gas are based on the distribution charge, not on the generation charge or supply. He stated that he believes utility companies will only continue to increase the distribution and transmission charges. Ms. Sawhney (SC) stated that she has been reviewing the actuals and predicted numbers for revenue transferred for the tax levy. In almost every year, there has been a surplus, ranging from -$1 million to $2M+. She stated that she believes the Special Education Stabilization Fund, in some ways, should be looked at as a Capital Stabilization Fund, as it is just as necessary. Mr. Michelson (AC) noted that the town has a bylaw which specifies that trash collection is free. The Select Board would have to consider a bylaw change in order to enact any charges for trash collection.