A key issue was the town’s free cash certification, which stands at $11.86 million for the year. This figure raised questions regarding its origins, stemming from either unspent budget amounts or actual receipts exceeding revenue estimates. Concerns were voiced about the perception of free cash as a “piggy bank,” potentially leading to public discontent if not managed properly. The board acknowledged that current practices might require reevaluation, as they have consistently exceeded the recommended free cash threshold of 3% to 5%. The conversation further explored how unpaid property taxes affect free cash calculations, with a collection rate at approximately 98%.

The board also tackled the water fund budget, highlighting a deficit due to expenditures exceeding revenues for fiscal year 2024. This has necessitated drawing from retained earnings, with concerns about sustainability if revenue does not increase by fiscal year 2025. The ongoing review of water rates was discussed, with the need for formal referral to the water and sewer committee noted. The trend of residents switching to private wells, potentially impacting town water system revenue, was also a point of concern.

In the realm of fiscal planning, the board reviewed the operational budget, which is projected to rise by approximately 6% for FY 2026. This increase is driven by factors such as health insurance, debt service, and contractual obligations. The board emphasized the importance of maintaining a balanced budget while addressing community priorities, including child care vouchers and housing initiatives. The town’s declining debt service level, down from over 20% in 2013 to under 15% in 2025, was highlighted as a result of infrastructure upgrades and alternative funding efforts. However, the need for new bonding by the fiscal year’s end was acknowledged, potentially affecting future debt service levels.

Staffing and recruitment challenges were another significant topic, with several open positions reported, including in the Department of Public Works and community services. The board discussed the balance between hiring additional staff and utilizing outside contracting, particularly in light of previous contracting challenges for cemetery work. Optimism was expressed about the number of applicants for open positions.

Education was also a focus, with Superintendent Scott Carpenter reporting on school enrollment trends. Chatham experienced a slight decrease in student numbers, attributed to demographic shifts. The increasing number of students from homes where another language is spoken was noted at Chatham Elementary School. The discussion included plans for capital investments in school infrastructure, amid concerns about future enrollment trends affecting the school choice program and related revenue.