[0:16] Board of Finance meeting come to order September 16th, 2026 at 4 p.m.. First item on the agenda is public comment. I understand we do not have any public comments. Minutes of meeting of July 15th. Additions. Corrections.

[0:39] As presented and Action items. Three a.

[0:46] One p. Item C.

[0:51] We're going to do a first.

[0:54] Review. Okay. Yep.

[0:58] Okay.

[0:59] All right. So for the prelim year end results for fiscal year 2026, um we show an estimated 2.7 million being added to the unassigned fund balance. This would move it from 40.3 million to 43.0 million, or 20.5%, to 21.6%. So the major kind of factors that contributed to the positive year end results. The first is that revenue outperformed budget by about 1.4 million. Um, really focus in auto supplemental for 538,000.

[1:41] Uh, building permit for S3:

[3:30] Um some areas in the expenditure side of things that saw material, I mean, that's a significant savings was materials for 185,000 supplies for 86,000. Um. We saw a big savings and contractual services that's really, um, generated from if you guys remember, we have the, the bus contract maintenance in fleet. Um, we used to pay for the, all the maintenance costs on the busses. The board of education, um, I believe has a mechanic over there handling all the majority of the repairs. So that's a $275,000 line item that we didn't really expend in fiscal year 2027. We took the first step to bring that down to a comfortable amount. So it reduced, I think, from 275 to 175 or around that area. We dropped it $100,000. So that variance will be significantly smaller in 2027.

[4:33] Um, so maintenance costs we saw savings of 132,000 and the claims and casualty reimbursement for 76,000. So that's sort of broad strokes of where we're at for expenditures and revenues for the year.

[5:06] Is there anything more specific that you want me to go into in regards to the savings or the outperformance of the revenue line items before we kind of tackle the chart? S1:

[5:07] I had just a question or two. Is there anything that we can take from this as far as looking at the budget for for next year? Um, for instance, the 775 transfer, if we're running a surplus, is that should that be part of the budget. I don't really need an answer. Um, but I'm just wondering from your standpoint, is there, is there any carryovers that we should be looking at either to.

[5:39] Yeah. And Jonathan and I are going to do a deeper dive in. Um, you know, the, the savings that was left on the tables by the departments to pull that into the, you know, the planning and the budget stage, um, the 70, 77, 75. I, you know, I think that that's a bigger discussion. Um, but the two areas where we did see significant, um, you know, impacts to fund balance, which were the auto supplemental and the, um, uh, contractual, we, we did, you know, kind of check those and bring those back down. So I think that will be more in line in fiscal year 27 in the future. But we'll always look to see what the trends are. You know, in the highway, we saved a lot of a lot of money in the material line item in the highway department. That was really because the focus was in fiscal year 26, so hard, was to spend the Arpa money down, and they got a lot of money in the Arpa account that unfortunately, you know, there was savings in the operations because they prioritized the Arpa. Um, so I, you know, I think Jonathan would agree. We always look at, you know, savings that we have year over year to see a trend. And we really do try to tighten up where we can. Um, and we'll continue to do that obviously in 28.

[7:04] Thank you.

[7:07] Susan, can you just remind me? Um, Kerry, it says the fiscal 2026 continue appropriation of $446,000 in capital outlay of, um.

[7:21] 952 can you just remind me how those interplay with our budget? S3:

[8:02] Thank you.

[8:04] Jim.

[8:06] This is the 775. I mean, it's gone up substantially. And I the problem is the managers and you folks try really hard not to use it. And I appreciate that. But what it means is we tax people right. Based on that. And I guess I'm just trying to think of is there a way to not to put that into some kind of a, an account where that it's not showing, it's not a yearly up and down kind of thing. I, I'm not I haven't really thought this completely through. It just seems like we used to only put like 500 in there and it just and, and yet it doesn't seem to get used a whole lot, which is great.

[8:51] So but actually the 775 is the larger the amount, the less you're taxing people. Yeah, yeah. So, you know, to keep it at 775 you're generating more taxes from on, um, you know, not tax revenue.

[9:08] So it may actually be a good thing to, you're actually tapping into the unassigned fund balance. It's not really causing you. Okay.

[9:15] Right. It's sort of a weird, a weird.

[9:18] Yeah, I know, I understand.

[9:20] You keep expenditures up it, it fills in the gap. Um, yeah.

[9:25] All right.

[9:26] But but in reality, it's just a placeholder because we're not using it.

[9:32] It's just to balance the budget.

[9:34] But.

[9:35] Not reduce expenditure.

[9:36] It's a balance the budget at the beginning of the budget season. But at the end of the budget season, we're just pulling it right back out.

[9:41] Yeah.

[9:43] So it's really just a placeholder.

[9:46] Because you have to present a balanced budget. Yeah.

[9:50] Well, you know, just to go a little bit more detail into what Kerry said, we will spend time during budget season looking at the past three, five years of trend for, let's say, auto supplemental. Do the same thing for town clerk conveyance fees. When we have each of those discussions about those particular things, we also don't simply look at the trend. We say like, well, is there any other tweaks? Did the state do anything to, you know, let's let's assume they increase the conveyance fee, right? Then we would take that into account. So we do that throughout. We, you know, we try to we, we do err on the side of caution. We want we don't want to be here June 30th, biting our nails, you know, checking with the tax collector, how much money is coming in today. You know, we want to balance the budget. We don't we don't want to operate like that. Um, I think there will, um, you know, and we do the same thing on the expenditure side. We look at several years of expenditures. We'll go through what were the issues. Um, so we do that, you know, we could do our best, you know, maybe there'd be a year where we have to use this portion of the 775 or even more than that. Um, but we'll do our best. We'll try to make whatever adjustments we can. Um, and then the other thought is, you know, over time, if those, the unassigned fund balance grows to a point where it's, you know, I think it's really big, then I wouldn't hesitate to say, hey, let's put in the budget a, another usage to offset a significant capital expense that comes up every 20 years, 25 years or to put it in pension. So, um, if you look at, you know, when this last budget season, we talked about the unassigned fund balance and carry projected it out based on assumptions with, you know, expenditures. And we looked at how that number works over the next few years and how that with respect to the 16% target rate, and we do have it in the out years, it starts to go down below 16%. This will allow us to continue and be above for probably 1 or 2 more years. When you factor in the spending increases. So it's something we'll revisit again as a group. Um, when the budget gets proposed.

[12:10] I know I've requested this in the past, and I think what you say is really important because I think we should have a discussion about the undesignated fund balance, where it's at, where it needs to stay at, what could potentially defer costs in other areas. Because as we all know, I'm sure the upcoming budget season is going to be challenging, so if there is a way to make it a little less difficult on the taxpayer, I would certainly like to have that discussion. Not with any guarantee that we're going to use it, but I think we it should become part of our practice to discuss it as we enter into the budget season.

[12:45] Any comments?

[12:51] All right. So just to kind of briefly touch on the chart, which is on the second page, uh, the top section of the chart on page two illustrates the operating results for fiscal year for the fiscal year end. You will see that there is a -$1.96 million, or expenditures kind of exceed revenue by that amount. Um, that is because there was a $3 million additional contribution to the pension that we budgeted on the expenditure side, and we budgeted it on the revenue side as a use of fund balance. Um, obviously we don't record that revenue coming in. Um, so we record the expenditures. We don't record the revenue because any, um, net operating results that end in expected sorry, expenditures exceeding revenue will automatically draw from fund balance. So that's what happened. We recorded the $3 million of expenditures on the town operations side, but we did not record the $3 million as revenue to offset that. So that means that we really had positive, positive results of the $1.4 million. Um, so if you kind of move down to the second chart, you'll see that first line, the $1.9 million loss gets carried down. Um, and then there are a few line items that I was just going to take a minute to kind of explain because they're, they're a little bit, um, they can be confusing. So, uh, the second in that chart is the BOE ended the year with a surplus of $2.1 million. So they had savings in their budget of $2.1 million. So that hasn't been expended yet. So that's therefore not really included in the $1.9 million operating results that we show on the line above. Um, so I need to reserve that amount out of fund balance, out of unassigned fund balance, because we will be transferring it from the general fund over to that, their new 2% Unexpended fund. Um, so that's what that second line item is. So it takes that $2.1 million out of the unassigned fund balance and kind of puts it on hold. Um, the next few three items are changes in assignments for encumbrance, capital outlay and prepaid. So these just need to be taken out of the unassigned fund balance because, um, we're increasing the fiscal year 2027 budget, um, to make sure that we account for those three things. Uh, so the, the next two are, um, the release of the $3 million from the additional pension contribution. So, you know, in fiscal year 2026, we reserved that $3 million because we knew we were going to be using it in the fiscal year 2026 budget, that $3 million expenditure is included in the 1.9 million. So to not double account for it, I have to release it out of its assignment. The $3 million and the last is the release of the $4.3 million. That's been kind of on hold and out of the unassigned fund balance, because that was the Board of Education's 2% assignment. So we knew that they were going to spend it. We just didn't know when they were going to spend it. Um, so that is actually included in the $199 million expenditures on the top section. So I had to release that to not double account for it. So all that accounting, all that fun stuff, it leads us to a $42.99 million fund balance or a 21.

[16:39] 6%, S3:

[17:13] Any questions on the chart? S4:

[17:36] So is it the 1.9? Yeah.

[17:39] Can you not from from not necessarily from this chart in my write up before. So the Board of Education has an operating surplus of the $2.1 million.

[17:50] Right.

[17:50] And then the town operations because we have so many transfers pending and everything like that. But at the end of the day, right now, as it stands, it's $839,000.

[18:01] Okay. So so we're at about a total of about a $3 million surplus between the board of Ed and the town for operations. For operations.

[18:14] Yes. I would say we're about $3 million. We have savings and debt service of about $400,000.

[18:21] Okay. So then it's about 3.3, 3.4. Okay. Thank you.

[18:28] Yep.

[18:29] Can I ask a quick question?

[18:30] Does the $4.3 million number for the board of Ed that includes the East Barrie allocation, the money that doesn't really get touched at all. Yeah.

[18:37] Okay. We've never separated out.

[18:39] I understand. And then I know they had a meeting in August where they allocated a lot of that money from the 2.1, but that hasn't caught up to the accounting yet. Or is that I don't I'm not sure how that works.

[18:51] Right. So they all we need to worry about with the $2.1 million is taking out of the general fund and transferring it over.

[19:00] So they can.

[19:00] To the 2% fund, which we just did. We had to wait on the board minutes to approve their allocation and how they they do. That is really a separate, separate thing.

[19:10] Thank you.

[19:14] Further questions? No, I guess not.

[19:24] Three B. Does anybody have any questions on any of the transfers under B?

[19:45] It doesn't sound like it. And we'll go to see action items.

[19:50] Um be it resolved that the Board of Finance approve of transfer of $146,000 from police wages others to police capital outlay, machinery and equipment.

[20:02] Second.

[20:05] Discussion.

[20:07] What is. What is. Can you give a brief description of what the axon. I have no idea what that is.

[20:14] Yeah. So this is the body camera system that officers where we are with another company right now. And we save, um, we save the data on our own servers, but that's not going to be allowed anymore. It's got to go in the cloud. So we've, uh, this is being purchased under the state contract. And so we're going with a different vendor. So we need to, uh, this is going to be year one of a multi-year deal. And the thought is to do it. Um, we'd like to get this wrapped up. Um, we'd like to get this locked in sooner than later so that we can plan well in advance so that, you know, it's one day the cameras are all off from another vendor, and the next day the cameras are on and everything's working and tested well in advance. So that's, that's the, the thought here. Um, and so this is going to facilitate that.

[21:07] Can I, John, what is it costing us. This is 146 over what we now spend. Is that correct.

[21:14] No this is just the new 146 to replace the existing cost. I will get you that number. So this is not completely over and above.

[21:22] This is okay. This is just a replacement. Okay.

[21:28] And what are we spending now? S6:

[21:29] You. Okay.

[21:29] Yeah. I don't have it now, but I'll get back. That's fine.

[21:34] Yeah. Thank you.

[21:35] And so. And Jonathan, from what the paper said, this is a five year contract.

[21:40] Yes.

[21:41] Okay. And so I'm assuming that with the old product you would have had to move to the cloud also. Yes, yes. So there would be an additional expense.

[21:52] Yeah. And we're going to try to auction off the the hardware from the old product because there might be someone out there who wants it. So we can get a couple bucks for it. We'll we'll do that. Okay.

[22:06] Further questions. All those in favor, say aye. Opposed? Nay. Motion carries.

[22:14] Be it resolved that the Board of Finance approve a transfer of $30,000 from CIP Norfolk School Roof Design project to CIP roof design project.

[22:25] Second discussion.

[22:30] Can you just remind us of the timing of these projects? Because I should remember, but I don't.

[22:34] The high school is scheduled. Um, the tentative schedule is high school to be done at the conclusion of this school year, and then Norfolk would be the following year.

[22:46] Thank you.

[22:47] And there's additional $8,700 to be transferred. The reason for that is.

[22:52] Well, we budgeted 75,000 for each project. Right? The high school came in bigger. Norfolk came in less, presumably because of the size of the roofs. Right. And so after that, then there'll be the money available. And if there's a change order, we could use it. I don't anticipate there's going to be one, but otherwise I just get canceled out and go back into the fund.

[23:14] Okay.

[23:15] The overall fund.

[23:19] Other discussion. All those in favor, say aye. Opposed? Nay. Motion carries. Multi-department.

[23:27] Be it resolved that the Board of Finance approves the June 30th, 2026 intra department inter-department transfers over $5,000 in the amount of $784,486.

[23:41] Second discussion.

[23:44] Just a question on if I could. On page two of three, there was, um.

[23:55] $100,000 for fire truck repairs, it looks like. Yeah. I mean, we've had a big discussion about fire trucks and this wasn't budgeted. I mean, had whatever, you know.

[24:08] Well, there was three major, major repairs that kind of blew up the budget last year. There was the water pump and radiator. We had to spend $35,000 for a leaf spring and there was a waterway repair. So we just had three really large budget, I mean, large repairs. That just blew it up.

[24:30] The other one is there's a I know it's common. There's an accrual of time that people earn. And again, this comes I'm just thinking here, should we have like a category. I mean, like the board of Ed has a, a line for teachers and administrators who tell them early they're going to leave. That's just so they can hire for less money. Yeah, I'm just we've been hit with some of these accruals a few times, I get it. I understand it. I, I'm fine with it. Should we have a line to sort of just have that rolls over year to year on that.

[25:09] So I mean, I feel like what we do now is we are able to fund with saving, you know, savings in the budget that was already, you know, that we've experienced within the fiscal year. If we had a line item, I think it would, there would be a positive because you would have a better picture of actual expenditures for the year and in operation budgets, because an accrual payout kind of inflates historical costs, right? But there's going to be plenty of years where you don't use that either. And it's going to be an expenditure line that's not paid. Because as the time goes on, we've tightened so much of the accrual payouts where the the big the big boys are no longer, you know, they're dwindling down right as they retire and, and stuff. So the, the accrual payments aren't going to be as significant as we progress in the years to come.

[26:06] So change. So changes in contracts and and okay. Yeah, we're we're slowly but surely moving away from having to deal with that.

[26:15] The town's done really great things in, in really kind of pulling back that liability because it can be really tough.

[26:23] Yes. Thank you.

[26:24] Mhm.

[26:26] Further discussion. All those in favor, say aye. Opposed? Nay. Motion carries. Item D.

[26:36] Be it resolved that the Board of Finance approve and recommend to the Town Council a transfer of $40,263

[26:45] from police capital outlay office equipment to information tech, capital outlay, office equipment.

[26:52] Second discussion.

[26:56] So the um. Yep. Um, this is a transfer from police to information technology. Uh, copper wire based infrastructures will won't be supported. Um, which are our current existing frontier phone lines will not be supported in a couple of years. Um, they all need to be replaced with internet based fiber optic fiber optic cable phone lines. So that means our fire panels need to be repaired. In some cases, we can just install like an adapter to make them, um, combat compatible, compatible to the fiber optic. But in some cases, we need a whole new fire panel. Um, that's about three, $3,600 per panel. Um, there is a buffer in there of about $10,000. It's been the experience of facilities in it that they go in. These panels are fairly old. They go in, they find something that they have to replace that they didn't plan for. So this is is an unexpected cost. Um, but it will be a future cost if we don't fund it today. So that's why it's before you.

[28:12] All those in favor say aye.

[28:13] Aye.

[28:14] Opposed? Nay. Motion carries.

[28:18] D2 be it resolved that the Board of Finance approve and recommend to the Town Council a transfer as follows.

[28:29] $55,685 S2:

[28:34] $18,465 S2:

[28:39] from leisure, for a total of $90,000 to senior capital outlay vehicles.

[28:46] Second discussion.

[28:49] Okay, so this is a $90,000, um, transfer to fund a replacement for a 2014MV1. Um, the town is fortunate enough where we received a um, a resident donated a MVMV1 for us that we are currently. We currently use for all our repair parts, spares and stuff like that. Well, we have kind of exhausted that avenue. They don't make m v ones anymore. Um, this has been in the repair shop for quite a while. It will need to get replaced. It, you know, if the transfer isn't supported tonight, we will have to you know, we will be proposing it probably in the fiscal year 2028 budget. So with the savings and in senior and youth and leisure, we thought we would um, try to, to present the capital, the capital purchase tonight, um and save that money in the fiscal year 2028 budget for something else.

[29:48] Just one question.

[29:49] Jim.

[29:51] So the one purchasing now is this Toyota.

[29:56] They haven't.

[29:57] Made.

[29:57] A decision on what I think they're still researching so that there's two estimates before you. One's like 77 ones, $84,000. Yeah. We just haven't made that decision. Um, so.

[30:08] So this is not two vehicles for two different years. This is just the choice between these two vehicles.

[30:12] Yeah. And there's pros and cons that the, you know, they want to test out each vehicle before they determine that.

[30:18] Thank you.

[30:21] For the discussion. All those in favor say aye.

[30:25] Aye.

[30:25] Opposed nay carries and police pension.

[30:31] Be it resolved that the Board of Finance approve and recommends to the Town Council the attached transfer request totaling $400,000 from departments, police, fiscal services and insurance to the police pension account for an additional contribution to the town's pension plan to cover the unfunded liability associated with the fiscal year 2026 through 2029. GPOA contract.

[30:55] Second discussion.

[30:58] Well, as you know, There are two groups historically within the police department in terms of retirement. There's a 2000 there's a group that was hired post 2012 and a group that was hired before 2012 as part of the negotiations for the new contract, which both parties have approved. We're finalizing the language to be signed in any day now. Um, but the but the agreement, the new agreement is, is, for all intents and purposes, approved. Um, there is a modest defined benefit pension enhancement to that group. Um that is the post 2012 group and that's now the majority of the officers. So the benefit is that in the multiplier calculations it's going from a 2% to a 2.2%. Um and there's still no, no cost of living adjustments. Um so that's why I use the word modest. Um, this was done and I won't get too deep into the details because a lot of it's our strategy as a town in negotiating. And the union has their strategy is done after doing research. Um, and, uh, and obviously as part of that discussion about what each party wants. So I think it's a modest enhancement. Again, no cost of living adjustment this group has now, they will not get a cost of living adjustment.

[32:40] Um, but in terms of paying for it, um, because this is a done deal, there's kind of an instantaneous, if you will, liability of unfunded liability, pension liability to the town that kicks in and that amount is 339,000 S6:

[34:08] Questions? Jim.

[34:10] If I if you can. The pension plans we have are not what's called qualified. We pay Social Security on top of what the employees pay. I believe.

[34:22] They all participate in Social.

[34:24] Security. Well, you can have police pensions, I. Right. That's. And the other question do they take health care or anything with them when they leave.

[34:32] Um there are options for health care depending on how long you stay and when you retired, you know, based on what, which, which version you're in. Oh.

[34:44] Okay. Thank you.

[34:48] Further questions? Derek.

[34:51] I just was, are there other unions where we might have end up with past liabilities.

[35:01] The liability. Because of the negotiation, we have a liability. Now, going back to 2012, I would imagine this is somewhat unique to the police, but I was just wondering if there were other situations where we might find that we have to add to the pension sometime in the future.

[35:20] Well, we do have overall this past unfunded liability, but in terms of adding to that unfunded liability, I don't I mean, the only the only one before us now is pension.

[35:31] Okay.

[35:34] All right. Thank you.

[35:36] Police just said police pension.

[35:38] I got.

[35:38] It. Yeah.

[35:39] Thank you.

[35:43] All those in favor, say aye. Opposed? Nay. Motion carries.

[35:54] Encumbrances.

[35:56] Be it resolved that the Board of Finance recommends to Town Council.

[36:01] The approval of the fiscal year 2026 carry forward of encumbrances as appropriations from fund balance as follows. $446,700.

[36:12] 56 S2:

[36:17] Second discussion.

[36:23] Before you. You have the list of open encumbrances as of 630 2026. Um, we've already ordered the goods. We just didn't receive them. See them. So this is a, you know, an accounting adjustment that we need to do to make sure that we can, uh, pay them in fiscal year 2027, but not impact the fiscal year 2027 budget.

[36:48] Are we optimistic? I know some of the the larger amounts are for large pieces of equipment, and I know those have become difficult sometimes to get on a timely matter.

[37:02] Are we pretty optimistic that's going to happen in the short term? S6:

[37:03] Good. Okay.

[37:04] Further discussion? Hearing none. All those in favor, say aye. Aye. Opposed? Nay. Motion carries.

[37:12] I will say computer computers and computer parts are are slow these days. So with with everything going on yes.

[37:21] I.

[37:23] I guess it's due to the tech build out of all these data centers.

[37:27] No. 1F3F communication review capital capital outlay. Carryforwards.

[37:36] Yep. Uh, the list is before you. It's $952,000. Um, these are monies by charter. We can reserve for up to three years and roll forward. Um, and all the additional transfers. So like the $146,000 is already included in here. The change for the equipment for it is also in here. So those transfers that the board of the Board of Finance was able to approve over $5,000 that weren't Inter-department are already included in the, um, um, the $952,000 before you.

[38:23] So this is just informational, but are there any questions? S1:

[38:25] Yeah. So see, we're operating, uh, finished the year, uh, 601,000 over revenue over expenditures. Fund balance is growing 4.3 million to $4.98 million. Sewer sinking fund. Not a crazy amount of activity, but it did finish the year contributing about $82,000 to fund balance. Um, as you guys know, the plan for Parker Terrace is, um, to be funded out of the sewer sinking fund. I believe that that's close to kick off. So I would imagine in fiscal year 2027, we'll begin to see that that fund balance kind of slowly come down a little bit. And then on to the rec activity that finishes the year with program revenue at about 2.1 million expenditures at 2.2. So it did have an operational loss. Um, fund balance is 1.4 million from 1.25 million for fiscal year 2025. Uh, the decrease though was anticipated. Um, we had planned to use about $30,000 to purchase playground equipment. We only ended up needing to use about 15,000. So it still had a good solid year. Uh, private duty revenues exceed the year by about $58,000, and the fund balance increased from 384,000 to 442,000.

[40:01] Any questions on the special revenue funds? S1:

[40:02] Yeah. So there was um that really should just read pension Opeb. We do quarterly. So we don't report it for July 2026. But for the um pension investment for July, um assets were valued at 283.6 million through the end of July. The plan was about 8.3 million higher than when we started the fiscal year. We had unrealized loss of 1.6 million investment income of about $218,000. Um, also included in the packet is the August Flash reports. I believe they um, um, made the change that was requested to break out fiscal year and calendar year in the year to date totals. So you should find that in the flash reports. That's it for the pension except for the update. One of the things I handed out to you guys was an update in the ordinance. Um long process, but we finally have updated and adopted the ordinance. And the Board of Finance is the trustee for the pension matches in line with what's already in place for the Opeb.

[41:18] So this has been adopted.

[41:20] Yes.

[41:21] And it's in effect.

[41:22] Yeah.

[41:22] Okay.

[41:23] It was just in section two, just 73. There was a sentence that I thought was part of a sentence. Unnecessary, but. But it's all right.

[41:34] Don't mess with it.

[41:35] No.

[41:39] No.

[41:48] I think.

[41:48] We're on. I think for any questions on for A, B or C.

[41:57] I'm probably not within investments. Chris.

[42:04] As of July 31st, 2026, the town's pooled cash investment balance was 54.66 million. Um, the investment balance for all funds combined is about 122.4 million. Uh, moving on to the second page.

[42:24] As of the end of July, general fund portion of pooled investments was 117.1 million. General fund has realized investment earnings of 263 $969. Sewer sinking funds totaling 9.14 million were invested in fully insured CDs. Current year current realized investment earnings of about 13,000. And I think I mentioned the last meeting. We're starting to pull the money out of the sewer sinking fund CDs and get get it into the the checking account, for lack of a better term. Um, in anticipation of those funds being used. Um, so an additional $1,654 in interest was, was earned on those funds that have been taken out of CDs and put into our operating account. Um, so based on, you know, projections, our budget of 3.1 million, we're looking good so far through one month of the year. Um, July isn't, it's not, I wouldn't say it's one of our lower months, but it's also not one of our higher months. Um, you know, August, August is probably the biggest month. So we should see this number go up a lot. Um, the next meeting, um, and then the investment activity subsequent to July 31st. Um, just a little note about funds withdrawn, um additional funds withdrawn from the sewer sinking fund into our operating account. Um, and also the, you know, as we are now in a new fiscal year, the investment, the long term investment limit has gone up slightly based on the new budgetary amounts.

[43:58] Any questions? S8:

[43:59] For that.

[44:04] Financial summary.

[44:07] All right. So the expenditure report for August 2026. The first couple of months of fiscal year 27th August encumbrances total $78.7 million. Expenditures 35.6 million. Uh, that is 57.3% of the general fund budget. Last year, we were pretty much right in line, 74.8 million in encumbrances and 39.3 million in expenditures, 57.9% of the budget. So overall, the decrease in expenditures is allocated 109,000 to the town, 938 to the Board of Education and 2.6 million in debt and transfers. The decrease in the town operations is primarily due to our workers comp premium. So for fiscal year 2027, we had savings of about $261,000. Um, we went with kurma, which was, uh, an annual renewal of 512,000. And last year we were with travelers and that was $773,000. So that's really where the savings for us is.

[45:26] Any questions on August? S1:

[45:27] Yeah. So capital projects for August. Total budget is 146.6 million. Life to date expenditures at about 112 million. Um, for the first two months of the fiscal year, we have been spending money mainly on our road projects. We've spent $1.7 million in town aid road that fund. We've spent 948,000, the drainage town Wide solutions 124, and the pool filter system replacement um is 300 and $398,000.

[46:10] Any questions on those that update? S1:

[46:11] Yeah. All right. So self-insurance um we're not starting the year off with a bang here. Um, we're at a $3.2 million loss at the end of the fiscal year. Um, hopefully this will level out soon. You know, the Board of Education doesn't contribute its full contributions in the months of July and August. September is when it starts to kick off. So you'll see those contributions, uh, swinging upwards in the next few months. Uh, there was one large claim already for, um, the Board of Education. Uh, town reserves as of August are 5.7 million. Uh, board of education is 366,000. Any questions on that.

[46:56] Jim?

[46:57] Setting aside timing for the board of Ed, what happens if they run out of money?

[47:03] Um, so.

[47:05] They have two preemies born this month and bills come in for $1 million. It's all well and good to say what we're going to have money.

[47:14] Who covers that? S3:

[48:06] But didn't.

[48:08] You know?

[48:08] But didn't we make a contribution to bring it back? Wasn't there a one time contribution made by the town to bring theirs up?

[48:16] Yes. Yep. So the town was really good and saw that there was an issue and we were operating in the red. And then at year end, what it would do was look at those balances that were left in the employee related insurance. You know, we have such variances because depending on vacancies or elections and stuff like that, and it would sweep all those balances at year end And so it did. It made it an additional contribution. And then it swept balances. So it built it up. It built it up fairly nicely, you know.

[48:47] So although you're not the board of Ed, have they had any discussion about sweeping their surplus or some portion of it into, or should we request that they take a look at that? I mean, we're we're pretty I mean, the Board of Editors position, and I'm going to summarize it and correct me if I'm wrong, but from the previous superintendent was basically, well, you have good years and bad years, mostly the good years out run the bad years and it all kind of works out. I'm getting a little concerned here at $365,000, when they're the bulk of the employees covered under this plan.

[49:33] So the question becomes, do we start recommending they take some action here? S2:

[49:50] What would those contribution numbers look like just in comparison to what they look like here? S3:

[50:26] Is there any stop gap money coming back right now. Any large claim money.

[50:31] Any large stop. Yeah. Stop loss. No, we booked that. everything that we were supposed to receive as of 630, we've already got booked back. Yeah.

[50:41] So September, I'm assuming, is a normal month for the Board of Education. At least it used to be. So we would see those numbers go up significantly. And they might give us a better barometer against their claims to see where we are. I don't know, it might not, but I'm hopeful that.

[50:56] I bring it up because I am concerned. I mean, we're really running, you know, and I know there's always a timing issue, but this is getting a little tight now.

[51:05] So Kerry, could you run through those numbers on the board of that again you said normal. Oh sorry. You said normal contributions. Say September is approximately how much.

[51:15] About 1.5 million.

[51:18] From then they get additional from.

[51:20] About four $400,000.

[51:23] And this is over a 9 or 10 month period of time. Yep. Nine month.

[51:28] Nine month, I believe. Yeah. And that I would have to double check. I don't know if it's ten.

[51:33] I think it's ten months.

[51:34] Ten months or nine.

[51:35] So ten, so ten months. So they're taking in $1,919 million a year. And and your and we're going through 400,000 a month. So, so we're expending 5 million and we're taking in 19 million.

[51:55] No.

[51:57] It's just on the surface doesn't add up to me.

[52:00] There are claims in this month were significantly more.

[52:04] Look at what they budgeted in the ten months.

[52:09] You're right.

[52:10] My math.

[52:10] Wrong. I don't know what their budget number was.

[52:12] So their budget. So more than likely something's off there.

[52:17] Yeah.

[52:18] They did the math wrong.

[52:22] This is Jim pointed out it would be dependent upon what they budgeted as to how much money would be going in there.

[52:28] Definitely.

[52:30] Yeah.

[52:32] What? Kerry's looking that up. I believe this was a subject of discussion at the last Board of Ed meeting.

[52:36] I think.

[52:37] It was. And there may have been some numbers discussed as well. So you may want to if you get time to check the minutes or watch the video.

[52:43] Yeah. So the expenses are I must have done my math wrong. So 15 million is their average expense.

[52:50] Okay.

[52:50] Yeah. So I must have, um, done math to the better for them.

[52:56] Way better.

[52:56] Yeah.

[52:57] And it doesn't look like they're contributing much in June. From what I can see. So it's like nine months of contributions. Nine months, nine nine.

[53:05] I don't remember.

[53:07] I don't.

[53:07] Are there some nine and some ten month employees I don't remember. Jim and I should remember that.

[53:12] Next.

[53:12] Month. Yeah. I think we should see where we are next.

[53:15] Yeah. Yeah.

[53:17] Oh, great.

[53:23] Um.

[53:24] Number nine is informational.

[53:30] And ten.

[53:33] Transfers over 5000. None back colonization.

[53:44] Do you have that? Any questions on it? S9:

[53:50] And the item with the board of Ed. I'm assuming they're just working on it. That's.

[53:58] What I know is that they're scheduled for a budget committee meeting on Monday the 28th at 9:00 at this time. Um, I have I just had a conversation with, uh, board member Thompson. Um, I presented them with a binders with the budget all laid out so they can have a discussion about kind of what to do. I don't know what their staff came up with. That's up to them. Um, I will try to attend. I've been told I'm not permitted to address them or answer questions, but that's how they do business. So that's where it's at. And then I guess they'll figure out what they want to do.

[54:42] Next would have to go from the budget committee to then the full board before anything would be decided.

[54:48] Yeah, I just hope to be able to have some conversation about it. Um, it's something I've been worked on for a long time. It doesn't matter where it is.

[55:01] Uh, item 13 committee reports. PBC doesn't have any. Susan. Yes. Okay. Item 14.

[55:09] Move to adjourn.

[55:11] Second.

[55:12] All those in favor, say aye.

[55:14] Aye.

[55:14] Opposed? Nay. Adjourned.

Board of Finance 9/16/2026

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