A primary topic of discussion revolved around the decline in cannabis tax revenue and the need to establish clear guidelines for its allocation. The committee considered how other communities manage their cannabis revenue, noting that some funnel it into general funds or allocate it toward capital stabilization. The suggestion was made to treat cannabis tax revenue similarly to meals and sales taxes, potentially directing it toward financial obligations such as Other Post-Employment Benefits (OPEB) or retirement obligations. A consensus emerged on the importance of defining the cannabis tax revenue in policies, with a placeholder proposed for future discussions with the finance committee to decide on the most beneficial appropriation of these funds.

Simultaneously, the committee addressed the intricacies of employee compensation, specifically focusing on cost-of-living adjustments (COLA). The existing policy lacked clarity on its application to elected officials and call firefighters. Historically set at 2%, the COLA figure was scrutinized for its sustainability given rising inflation rates. Concerns were expressed regarding potential conflicts if the COLA, tied to external indices, resulted in recommendations higher than the typical 2% increase expected by unions. The committee debated whether a fixed percentage should be established or if the language should remain flexible to accommodate economic fluctuations, highlighting the ongoing challenge of maintaining a balance between fair compensation, the town’s financial health, and employee expectations.

Another point of discussion was the town’s stabilization and capital funding policies. The committee considered continuing the allocation of a considerable portion of free cash into capital stabilization funds, acknowledging the substantial nature of capital expenditures. There were calls to reassess the current percentages designated for stabilization and capital allocations, with recognition that any changes would require authorization by a two-thirds vote at town meeting. The unpredictability of the financial situation led to suggestions of increasing the percentage for capital stabilization, although no specific figures were proposed.

The committee also examined the process for reserve fund transfers, which are intended for extraordinary or unforeseen expenditures. Concerns were raised that the current process might not align with established regulations, prompting a need for clarification on whether these transfers should occur as expenses arise or at the end of the fiscal year when budgets are reconciled.

In addition, the committee reviewed the policy for OPEB contributions, which are currently set at $300,000 annually. This consistent amount is calculated to minimize future liabilities. A proposal was made to include the word “minimum” before the annual contribution figure, allowing for potential increases in response to an anticipated wave of retirements. The meeting also covered the management of Urban Development Action Grant (UDAG) funds, which fall under the select board’s authority. It was clarified that the use of UDAG funds would require a simple majority vote and a recommendation from the town manager and finance manager for extraordinary needs outside the usual budget process.

The establishment of a reserve fund for future payments of accrued liabilities related to compensated balances was also discussed, with a proposed minimum balance of $50,000. This would be subject to annual budget considerations and town meeting approval. The composition of the capital planning committee was affirmed, including various town officials and citizens.