Central to the meeting was the discussion of the FY21 budget update, specifically the town’s efforts to obtain reimbursements under the CARES Act for COVID-related expenses. With the town eligible for up to $711,000 in reimbursements, about $177,000 had already been spent on overtime for first responders and remote access technology. However, there was concern about potential unreimbursed expenses. The town manager confirmed the ceiling of financial exposure and noted that applications for reimbursement were under review by MIMA. The committee expressed hope for additional federal funding but acknowledged the unpredictability of the reimbursement process.

Attention then turned to the FY22 draft omnibus budget, which had been shared with the finance committee and select board. This initial draft was characterized as conservative, factoring in a potential 10% reduction in state aid and cautious estimates for local receipts, including revenues from the cannabis excise tax. The finance manager highlighted the first half of the fiscal year had already yielded $288,000 from the cannabis excise tax, though the unpredictable nature of future closures due to COVID-19 complicated revenue forecasting. The committee discussed the impact of this tax and the need for conservative revenue projections amidst ongoing uncertainties.

The budget discussion also touched upon the regional dispatch agreement, which could see a $200,000 reduction in expenses due to state 911 grant funding. Additionally, the police budget was identified as having a potential $50,000 adjustment without affecting services. These adjustments were part of broader efforts to identify budget reductions while considering departments heavily impacted by the pandemic, such as the Council on Aging and Parks and Recreation. The committee debated whether to fully fund these departments or place certain budget items into a reserve fund, ultimately leaning towards full funding with assurances that unspent funds would bolster free cash.

Furthermore, the committee considered a proposal to increase the reserve fund from $150,000 to $300,000 for FY22, a precautionary measure amid the uncertainties posed by COVID-19. This proposal aimed to safeguard against unforeseen expenses and was to be presented at an upcoming public forum.

As the meeting progressed, the committee prepared for upcoming presentations, including the school budget presentation scheduled for February 9. This presentation would incorporate updated data and include slides addressing COVID-19’s budget impact and the reserve fund, preemptively answering questions likely to arise from the public. The committee emphasized the importance of a comprehensive yet high-level overview of the budget to facilitate public understanding while inviting detailed inquiries on specific line items.