A significant portion of the meeting focused on Article 3, addressing the payment of prior year fiscal bills, where a substantial $90,000 invoice from Fitchburg for water services took center stage. This charge stemmed from an agreement dating back to 1993, which requires Lunenburg to charge residents the same rate as Fitchburg, with an added 30% administrative cost. The delay in billing Lunenburg residents led to accrued interest, causing the town to owe Fitchburg nearly $90,000. The board discussed the necessity for town meeting authorization to settle this debt, emphasizing the impact of this financial oversight on the town’s budget.

The Select Board explored various funding options to address the fiscal obligations, including transferring amounts from prior year capital articles and raising additional appropriations. Members expressed concern about the adequacy of the budgeted $45,000 for this line item. The complexities of managing this as an enterprise fund, which directly affects the town’s tax rate, were acknowledged. Additionally, the potential consequences of the town meeting failing to approve the $90,000 payment were considered, with members stressing the importance of settling the debt to avoid further interest accrual.

The conversation extended to the billing process for water services, with suggestions to transition from quarterly to monthly billing to alleviate financial strain caused by high interest rates, currently at 14%. The Select Board recognized the need for a future meeting to discuss potential rate adjustments for Lunenburg customers, given the lack of information from Fitchburg on upcoming rates.

Another topic was the adjustment of the FY2026 omnibus budget under Article 2, which proposed a $160,052 increase for the town accountant’s budget to cover personnel transitions. The detailed budget adjustments included a salary of $145,000 for the town accountant’s position and additional expenses for vacation payouts. The board also examined audit costs, noting a three-year agreement with the auditing firm CBZ, with projected costs for the FY25 audit set at $60,000, exceeding the previously budgeted $40,000. This prompted a need for an additional $20,000 in the budget, as the finance director explained the limited options for auditors due to industry consolidations.

Further discussions included projected costs for contracted services, such as accounts payable and transitional services for the finance director, with an estimated billing rate of $175 per hour for consultant services. The board recognized the need for ongoing assessments of budget adequacy as the fiscal year progressed, expressing concern about fiscal planning and the implications of delayed hiring on budget utilization.

The meeting also touched on several internal financial shifts, such as transfers from salary reserves related to the collective bargaining agreement with the police union and adjustments to the finance director’s salary. A notable transfer was the $27,500 appropriated at the May town meeting, initially intended for special projects, now redirected to the assessor’s administration. Clarifications were provided on the contingency of this transfer upon the approval of another article related to the special assistant to the assessor.