001I will go ahead and take this opportunity to call the meeting to order at 8:06 am. M uh thank you all for being here. Um first we have kind of discussion of draft SY27 budget and budget timeline. John, you sent over the presentation that Nick shared. You said he shared at the warrant committee. Is that right? >> He shared it to the warrant committee on Monday night. Uh he gave it to me yesterday and said that he was showing it to the select board I think last night. If it's a Tuesday night, is that when they meet? Um and also Mark, what Katie noticed is that when we were meeting with the uh long range planning group, um a slide similar to this was part of what he sent out to the group. So the
002even though we didn't talk about it, it actually had the it had the numbers there um for folks to be able to see. I'm not we're not sure why no one picked it up. >> So I can share that. I mean, I don't want y'all to speak to somebody else's slides, but um >> No, I think it's appropriate for us to take a look. It it gives us the context that we need to start to make some decisions or at least uh begin the process while decisions are being made uh at the the town side level and at the higher level. >> Okay. Um so, it seems like the first two slides are kind of the most important. Obviously then he starts giving background around health insurance as that's a pretty big cost driver. But
003revenue forecast looks like it's increasing by just south of 4 million for property taxes. Um overall 4.2 million or a 2.9% increase right? >> Yep. >> But then expenditures this is what I don't understand. the total is less than that and a 2.2% 2% increase, but then it's calling a deficit of 2.5. Oh, this is health insurance at a 7% increase from FY26. >> Correct. >> Gotcha. So, there's I still don't necessarily understand the 2.5. >> I don't either. Because if it's the 3.3 million of what we need in extra and they're assuming a 7% and they're saying we have 4.2 then in that a $900,000 delta. >> So I can try to explain. >> Yeah, please. Thank you. just from my perspective. Again, this is um the presentation that the town put together, so
004I don't know kind of like the granular underlying detail, but um so the numbers here, the total number from the FY 2026 budget, it looks like from the information that we've been provided, 145 million of that, approximately closer to 146 million is made up of state aid, local receipts, um the tax levy, new growths, kind of all of those different components. So that's 146 million and then there's 3.9 million in other available funds. Um so the total revenue for fiscal year 26 is 149812. I did try to look and just cross-check that with the warrant and it for fiscal year 26 and I think that's pretty consistent with what the warrant said um at town meeting just to see if there were any deltas that I could like try to identify just from you know
005again from my perspective um and so the FY27 projection being at 152 the revenue forecast for FY27 even given the incremental increases, the total projection is 150 million. And so with all of the revenue projections plus that other available funds that are used in 26 and then decreased pretty significantly in 27, the overall increase from 26 to 27 on the revenue side is only 0.2%. And that 2% is why we're seeing a difference between the expense side and the revenue side. And it's hard to I don't know if that makes sense. Again, that's not like my information, but that's just what I'm taking from the information. Um, and it's not necessarily spelled out on these slides, so it's a little tough to kind of follow the numbers. Yeah. Yeah. I mean that was Yeah. 150
006is not a 2.9% increase on 149. Um >> right. So the 2.9 is only on that top bucket on the tax um revenue on local receipts on that top portion. It's the other available funds that is um it was 3.9 and 26 and it's 105,27. So there was a pretty sharp drop off in other available funds. And so in total that's why it's only a 2% increase. And that's why we're seeing um a difference between you know there's a a variance um where the expenses are higher than the revenue >> and is your understanding that these expenses that 2% increase in revenue. Then down here it's saying that we have [clears throat] 2.2% projected increase in expenses. So that's creating the deficit. But this 2.2% 2% increase still only includes a 7% increase in health
007insurance, which is not reasonable at this point. >> That's my understanding. >> Yeah, because I think my understanding is that health insurance is projected to be a 14% increase >> based off the initial information. It's looking at 14% and it was significant in um FY26 as well. >> Yeah. So, this isn't even very helpful information because I'm not sure what percent of this is, >> right? Health insurance. Does it say anything in here about numbers? >> So, we have a call, we had a call last Friday. Uh, Nick invited us to the call with the insurance consultant, which was very helpful. Um, we also have I have a call with Nick today to get an update at 1:00 and then Katie and I are meeting with him and Amy next Monday. >> Uh, so we've
008been kind of keeping connected to them. Um, it it looks like the 7% increase in health insurance will increase. So, whatever that number is used in that current um spreadsheet that we're looking at, the FY27 expenditure outlook, uh that health insurance number will go up, which will make the the gap a little um more significant. That's one way to look at the gap. The other part of the gap from an expense side is to say, you know, do do the schools have to move their 5.2, two, which I think is a reasonable rollover uh for a size district that we have, especially compared to the last two years of increases. Um, for us to go down to what the town's uh percentage is one way to kind of look at uh if there needs to
009be a moving to the middle, we'd have to figure out, you know, each percentage of our budget equals x amount of dollars and what that would mean for a reduction. Um, so I I think a lot of this is going to have to play out over the next few weeks. um and where revenue estimates can be maybe looked at differently or uh looked at in a different lens. And I know Mark, you and I and Nathan and and Katie were on a call with the larger group uh talking about that five-year plan and the revenue expectations and how we want to estimate revenue. And there was a really good healthy dialogue about conser conservative budgeting, especially when you're looking at a five-year run. Uh and then you always have the reality of a one-year run.
010So, um I think this kind of fits into that conversation pretty well. Uh the town is that larger group is trying to figure out a way to create a five-year fiscal plan that matches expenses with revenue. We all want to be conservative with our revenue so we don't get caught off guard, which ultimately moves down the the chain to expenses needing to be lowered in order to meet that meet that expectation. So, uh I I feel like there's a lot more information and a lot more discussions to be had, but this this is generally this 2.5 that could be three uh by the end of the month. Um is something that we as a town have to grapple with. >> Have you um have y'all you said the slides were kind of sent to you
011and Katie uh earlier this week. Have you all had a chance to meet with Nick and Amy yet on these forecasts? Did this come up in prior meetings? >> We we got I think I said it in my weekly update to you that we met with him last week um and he showed us a very back of the hand back of the envelope kind of estimate. Amy was check going to check into the details of the expense side of that. Then he invited us to a meeting on Friday with um the consultant Sue Shaloo. got that update kind of got an estimate of how the insurance was going to impact this there's a number this number is not fully a result of the insurance right this number is the number and then the insurance I
012think is going to be uh an additional amount to that so we got information about how to strategically approach the health uh insurance discussion uh Nick was meeting with council he was going to make some calls and then I reached out to him Monday he sent me this on Tuesday. I called him and emailed him yesterday. We have a a call today at 1 and then we have a meeting at Monday at 1. Um so we're trying to stay connected. I think he's trying to work out the numbers. Uh you know, I I keep asking and this is just my school side um selfish interest and that we want to know what the number is. Do you mean we want to just work towards the number uh but he's also trying to manage a lot
013of different things. So, we're trying to be helpful in partnering with him in order to try to make u this scenario be the best one we can for the town and the schools. >> So, in terms in terms of our actions towards putting together a budget because what we were schedule-wise for the budget, we were going to have the kind of second draft discussion today. >> There it is. And then we're gonna have third draft discussion at our next meeting on January 14th. >> We obviously don't have a second draft today because we don't have a number. It's a shot in the dark at this point. There's it's a waste of time, I think, um to further refine the current budget without having >> clarity on where we need to get to. It sounds like
014potentially cuts to get to. Is that is that y'all's your understanding as well? Is that how you're all approaching it? >> Yeah. So, the way we're proceeding is we we canled um the leadership meeting for this past Tuesday because we didn't have the number um and we didn't want this conversation hadn't gone public at the Warren Committee, the select board or with you yet. So, we didn't want to have this full conversation with the leadership team in order to begin the prioritized list of what we would do in order to um be aligned with what the potential expenses were with the revenue. Um we do have a meeting with the leadership team. they're they're well aware that there will be a potential deficit. Um we've been talking about this to this group in my weekly
015updates about a potential health uh health insurance concern and a potential related concern to budget. So the principles are aware that there might be a deficit that we have to work towards reducing. Um and so we will be meeting with them on the Wednesday we get back which is the 7th. Um and they will be we will be presenting to them um a list of reductions that we will get a conversation what I would call a consult on. Uh we will not be drafting them from scratch. We'll bring in something to the table in order for the discussion to kind of get up and running. And um so we our goal is to have a list that that goes down to a certain number that hopefully we don't have to utilize all those reductions that
016we'll hopefully get a number in the meantime that we can scale back to. So um but it will be a um you know it's going to have to be a rich dialogue and then and the number is important because if it's if it's $500,000 it's one strategy. If it's a million the strategy is a little different and if it's over a million dollars the strategy is very different. Um, so where we the numbers uh create the strategic discussion for these types of cuts. >> Nathan. >> Yeah, thank you [clears throat] Mark and thank you John and Katie. Um, there's a couple of things I'm I'm just trying to I feel like I I feel like I don't fully understand um just given given what the what the uh and so I just want to make
017sure I'm I'm clear. I I have a couple of questions which I'll just ask simultaneously. Um one is it seems like we're anticipating health insurance costs to be um potentially the increase to be twice as big as we budgeted for which we've been talking about for a while. But I can't tell. It seems like aside from that, we're coming in uh closer to a deficit position than we anticipated. And I can't tell what the what the like core driver is for that um either from this discussion or from the slides. And I'm wondering if we have if we if we know exactly what that is. I mean, I know in the in the budget coordinating committee meeting, we talked about the fact that some of our revenue assumptions could be overly conservative based on historical
018trends. Um, so maybe there will be, you know, optimistically. Um, maybe there will be some surprises in our favor in the next couple of months. It seemed like Nick would have more information in the new year, but it seems like there's something else. Um, I can't tell what that is. And then uh second uh Mark you mentioned we're supposed to talk about the second draft of the budget today. Uh we're getting this new information and I'm wondering just even thinking about next year. Is it that we were too aggressive on the timeline of trying to have a second draft by now? Or is it that the town's revenue projections or or just budget projections have are in greater flux now than any of us including the town anticipated at this point when we were doing
019the budget planning with the budget coordinating committee like just a month and a half ago. I can just answer that that last one of I mean in generally I think a budget process where you're starting in like September of you know you're just starting the new budget like I think all of this budget starts pretty early and it's difficult for the school department to have good information on like how the current budget is working at the time we start this but I think that is a restriction of the town budget cycle because my understanding is the town administrator is responsible for submitting a draft budget by the end of the calendar year. Um, so Nick has to get one over in December. So that's why we we wanted not a we don't need to have
020a final budget to them, but we need to have some budgets over to them to incorporate within kind of the overall town budget that he then has to >> show and present is my understanding. Uh and then obviously we have the warrant timeline issue where we need to have the final budget to then be voted on by school committee, submitted to the warrant committee to be reviewed by warrant committee and that has to happen in like by March in order for them to have enough time to review it and then close the warrant on time. Um so that that's like the timeline implication. So I don't I think we when we did this we kind of backwards planned appropriately. I think we have a little bit of wiggle room where we could push things and
021it seems like we might need to push things out, but it does it this is kind of the concern I've raised before where it feels like this is not a new thing. Every year it does feel a little bit like we are working towards a budget and then it's like all right well we have to make some assumptions and have we've had these conversations with Nick this did not a a revenue forecast of 0.2% never came up before at conversations with the town. Um, and so those things obviously throw all the work for a loop and then at some point feel a little bit like wasted time. So I I think your thought on how we improve this in the future is is one I'm thinking of too, but that that is my understanding of
022the timeline. >> That's helpful. Thanks. And >> and I think generally uh Katie has provided an an overview of the budget at 5.2% with all the percentage increases for all the important cost centers. And when we were in the under the impression that we were asked to roll over our existing staff and and provide a percentage increase for colar and negotiations, all that is all that was part of the uh 5.2% uh overview that Katie provided. So we're we were generally operating from a standpoint of we we have the funds and the staff to do our to do the work next year and we were beginning to do the realignment of that. So, we weren't thinking that it was going to be a need to reduce and we had no plans to add. Um, so
023we felt that we were in the right zone of being able to execute the budget and present it to school committee sometime in January. Uh, it did feel like we were a little behind a little bit. Um, but I I think that we we generally had a budget, you know, prepared with percentage increases. Uh, and then we were prepared to talk to the school committee about what realigning we were going to do going to do within the FTEES and budget that we were presenting at 5.2%. Um that that was a discussion that we were waiting on. This this is certainly a little different information that we're adjusting to uh unfortunately um at this point in time. to jump back to Nathan's first question though like the drivers of the deficit position and Katie again I
024know this is not your presentation your information but I I also am still a little confused on we're again what we're saying is that the revenue forecast is actually much worse than anticipated because we're only anticipating a revenue increase of 2%. Is that right? So I think it may be um it's not included in the presentation that was shared with Warren committee and the select board but it was shared with the um budget coordination committee. there's um there is a worksheet that shows the FY26 budget and the FY27 budget and I think for me looking at that gives a little bit more information on where the delta is. Um and I tried to kind of explain that at the beginning of the meeting, but I don't think it's hard to explain that when it's not
025your numbers and it's not in front of you. Um, so but I think if you look at that, you can see what the revenue is for 26 and then you can see what the revenue is for 27 and it looks like there was a drop off in one of the lines. Um, and then corresponding expenses as well. Um, there was a drop off in the expenses but not as big as the revenue. >> Yeah. >> So this is this is the sheet you're talking about. >> Yep. So if you look at the top the um totals are the um that includes like the levy levy limit uh local receipts state aid. So that's that 145 number and then there's the other available funds that is being utilized this year because the total revenue is 149
0261498 and the budgets come to 1493 and then you can see next year like the that top section of total revenue um is increasing at 3.3% but then when you factor in state aid um it goes down to the 2.9 and then the other available funds that's where the big drop off is. >> Yeah. Do do you have a sense of what this is? >> Um the only um there's two I think like local receipts. I don't even want to I can't even speak to it. >> Yeah. Yeah. Okay. I think I think Mark, you we were a part of some of that conversation at our long-term planning meeting where local receipts is at 1%. >> Yeah. >> And what that what that did and then there were some one-time funds that were related to
027uh uh new growth, etc. that didn't roll over. Um and and that conversation really that that revenue conversation we had with the with the long-term group um I think is probably embedded into this this form right now. You know what I mean? I think between local receipts and new growth and some other one-time >> uh revenue generators in in 25 and 26 that didn't carry over into 27 or have been just conservatively estimated because they don't plan on that revenue being as robust. Um I I I I'm struggling with the mechanics of that as well. That's this is not my wheelhouse. But I I agree with Nathan. I was absent absent health insurance. What happened here is going to be the question. I think the the general population of folks are going to want to
028understand um that I that I think we really just need to make sure that we we meaning all of us the the town the the schools can really uh create a good narrative of u exactly why the revenue has dropped. And I think that it might be because some of those funds that were utilized in previous fiscal years have from a revenue point have been uh no longer in play this year because they may have been one time in nature. And again, I'd like Katie, I'm I want to stop here because I'm really starting to speak in a way that might be assumptions and curiosities versus fact. >> Yeah. No, I I appreciate that. I appreciate you all all [laughter] being clear on um again, it's not your information and so I don't want you
029all to speak for the town. It I don't know if it it sounds like y'all are meeting with the town tomorrow. Um, I don't know if it makes sense for us to try and ask Nick to come to a future finance meeting to speak to this so that you don't have to speak to directly. I know we we've talked on through email about >> um but Loy is kind of like a reminder of we did talk at one point about having a joint school committee, select board, warrant committee, budget kind of tri board conversation um that I think we were trying to press Nick on a date and that hasn't quite picked up. So I can repress on that. Um but just a couple like local receipts I think they typically budget 1%. That's where
030that comes from and that's here. The new growth and I think they typically budget a million dollars new growth last couple years. That that's pretty um common and that's here. So neither of that is affecting the other available funds. And so I just I have no idea. I mean this is obviously a catch-all category. I'm not sure what this is but you know we have a 3% increase essentially until you get down here versus 2.2%. So like the the problem really is in this area. And then obviously the implication of whatever the health insurance increase is, which I forget what he said it was, like $100,000 for every 1% or something like that. Um, anyways, so again, I maybe I'll be able to get some more information uh tomorrow. And I guess one thing I'd
031ask is really on this revenue side, like what is this other available funds? Why are we dipping down so much lower? Um because a 2% revenue increase when your property taxes are getting you and new growth is getting you 3.4% to me seems a little wild. Uh when that's like the vast majority of your income, but again I don't don't want you to speak for them. Um do other members have sorry any questions on this or Nathan did this somewhat if not answer your original question give a little more clarity? Yeah. No, it it did. Thank you. Thank you all. I mean, I think we're all on the same page around what what clarity is needed. Um, and I think if we can get that, you know, first week of January, it sounds like John
032and John and Katie, you'll be you'll be working with Nick directly. And so, I think um the sooner we can the sooner we can all collectively be on the same page, the better about what's happening. So, so my, so um, to the finance committee, I have a call with Nick today. One, I think that might be related to strategy around health insurance. Then we have a meeting with him on Monday the 22nd. Katie and I and and Nick and, um, Amy. Um, and during that time, during those two conversations, we'll talk about other available funds and get a little bit of a breakdown for that. But um I think our next finance meeting uh is scheduled for I mean if you want us to invite um Nick which I think would be great uh we
033have a finance meeting. We could have one on uh we have negotiation prep on the 7th um at 7 a.m. but the 14th we don't have any other uh uh finance meetings going on but um we have here one on the calendar we have 114 uh as a date that we want to have a finance meeting. So do you want me to invite Nick to the 14th? Is that too far away? Do you want to try to get him the week before that? Well, that gets us a little bit into the schedule, so let's pause on that. I think it's a good question. Um, but Lizzie, I want to get you before we jump into that. >> Thanks. I just wanted to ask a question back to the table that you were showing, Mark, which
034is a question I have, but I also am imagining other sort of lay people having the same wonder. Um so it's regarding the override line. >> Can you just speak to um what that you know how that 9.5 is there for FY26 in the budget zero for FY27 resulting in that deficit number. Um I think that might be just helpful context. So Mark, that was that larger sheet that you had that um yeah, if you could put on the screen again. I think I know exactly what you're asking about. Um Lizzie, in FY26, it shows 9.5 million in the override line and it has a zero in FY27. I'm assuming that that top line above it. Uh Mark, if you can put it on the screen. Thank you. uh that the money then transfers into
035the rollover um into the see how it goes from um it goes from 99 million to 1125. I'm I'm wondering if the proportional dollars uh of the levy being raised by that dollar amount is embedded into that previous levy limit at 2.5%. That's the $2.8 million. So I think it's somewhere in there, Lizzy, but it really looks like it's really going to have it really looks like it's not being considered given there's a zero in the override dollar and column. It it doesn't feel right. So I that's a good question to ask >> sense and I just want to make sure that especially since the discussion is about the town overall picture. Um, I just want to make sure that, >> right, >> every conversation we're having about this is sort of like thinking through
036the lens of the folks that are wanting to know how could this be happening when we just pass the override. >> Yeah, that's John. I think I I think you're >> that made your explanation made good sense, John. But >> yeah, >> but but I think from a political point of view um not political as much as it is uh educating the community about what what the gap is and why the gaps there and and what the override provided for relief and what what are the circumstances that uh have brought to the that have been brought to the town or existing within the town that makes that relief not as powerful as we thought it was. I think that's the first question that we have to answer together with the town. Uh and then and
037then whatever that number becomes the delta, then we have to work together to find out how to match it. But I I that that was my first concern is just the making sure that we get that uh information accurately to the public. uh which is why I didn't want to move on anything until Nick had a chance to get it in front of his boards um with you know and and make this a public conversation because it does need it would be very helpful for that to be explained well initially in order for it not to be the focal point because the focal point ultimately be we are where we are. we need to move from where we are, but people are going to want to know how we got where we are first before
038they can engage in the second conversation, which is how do we, you know, decrease the gap. >> Yeah. Thanks, >> Nathan. >> Thanks, Mark. Um, if it it sounds like John, you may be having a few conversations with Nick over the next couple of weeks before we have a our next finance committee meeting uh to get more information here and maybe maybe Nick is coming to the next one. But in the event that you are getting clarity from him and you either communicate it back to school committee in an email or we talk about it at school committee. Um, I think on the it it seems like our our assessment is that something happened in um if and I'm having trouble just looking at the table from where I am, but like in the other
039revenue line where that's dropped off uh precipitously. I would be very curious to know what Nick's assumptions are or or what the town's assumptions are in calculating that. um they have uh I think you know generally rightly so relatively conservative assumptions on a lot of revenue lines. Um and I'm wondering if if that kind of thinking is applying this is based on uh you know I I don't know what all those revenue lines are but if we if we have greater degree of certainty in that number or if we are making more conservative assumptions I think that would be important context to get John if you if you have those conversations with him. >> I I I will gladly ask those questions. Uh Nathan and and Nick said something very important the other day when
040we were meeting as a logic group for the long term is that the exercise was to to do revenue first uh project the revenue first and then bring the expenses to the table after revenue is established. So I think I think Mark and Nathan and Katie were at the meeting where he said you know this was the exercise that we were doing first and then obviously it's showing a gap. So now do we want to look at those revenue assumptions differently? So maybe that's where he has come to this number as well. So that's a great question. Nathan, I will ask him that. >> Um Katie, do you have more on that? >> I think you missed Amanda has had a hand up. >> No, I know. I just was wondering if Katie was talking
041to Nathan's question first. >> No, Amanda can go first. I just wanted to add something about the um the table. Ma >> um for the and this could be answered later as well and I think we addressed it a little bit but I guess I still don't fully understand the shared portion of it. So will that is that piece still variable depending on where the health insurance comes in because and it doesn't look like because it's going that's going down yet we're talking about health insurance going up more and right now it looks like that number in there is at 7% which sounds like it might be only half of what it could possibly be but then there's also other items that aren't necessarily really factored in yet. So, I just I guess I question
042the variab I just am concerned about the variability of that number and that that's the one that's showing that there's not an overage in it yet. That's the most variable line. So, just having a little more clarity around that maybe when you speak with him would be helpful. >> Sure. And again, this isn't your chart, and I know that we're asking you guys questions that aren't your your piece, but I think if if that does seem to be a big, you know, that other revenue line and then that um insurance line seem to be the big question marks. Um so getting any clarification around that would be helpful. >> Absolutely. And and and I I think Nick is actively working on uh on this. So we I I'm hoping that this changes a little bit.
043I'm not sure how much it will change, but uh I will ask him all these questions. >> Thank you, >> Katie. >> The only other piece that I wanted to add is I know there's, you know, that huge focus on the revenue side, but I also think when we look at it, just really digging into the expense side. So in 26 because the other available funds were so high and we're projecting that at a different level in 27 we were seeing a pretty significant revenue drop off but that wouldn't make as big of a difference if we hadn't embedded reoccurring costs on the expense side. And so I just don't know if there are reoccurring costs embedded in the expense side for 26 that are carrying for forward to 27 that we are utilizing some
044sort of mechanism of using either you know one-time funds um to be able to cover those costs. And that's that is essentially what is creating these deltas that we're seeing year to year is the fact that there are reoccurring costs being offset by and we saw that on the school side. I think um the important part for us here um is just that the schools portion the schools portion for 26 is it's what we asked for last year. It's what we projected last year and it is what it is as um as far as the operating budget. Blue Hills we don't have good visibility into but the schools portion for 26 um did not change from town meeting of last year. It's still the amount that we were allocated at town meeting and we're still
045on target to meet that amount. So I think that that ultimately for us is really important. Um but again just we talk a lot about like revenue. Can we project it differently? Does it look differently? I think we really need to focus a lot on like the expenses. Are we funding reoccurring expenses with one-time funds? >> And Katie, when you say we, do you mean the town in general? All of us? The whole budget? >> I think all of us. >> Yeah. town and town and school um because that's that's just where you see the the changes from year to year. >> Can't can't we already answer that for the school side? My my understanding was when we did the override like that essentially >> was trying to act as a reset to not utilize
046the free cash that had been used in the past few years to kind of push off the override. >> Yeah. that when we did the override, at least on the school side, I I can't speak to every line of the town department that we are not using one. >> Correct. >> We at least feel comfortable on what we control, which is on our side. >> That's right. I I uh and I thank you for saying that, Mark. I as Katie pointed out, uh our 5.2% increase is based on exactly the numbers that we were walking out the door with in last year town meeting in rolling them over and applying some non-sary increases for certain things. And coming in at 5.2, too. I think uh given that you know 80% of our budget is salary,
047we talked about this with Nick as well. Uh we have steps and lanes and then we have whatever a coler is negotiated. You're and then you have expenses like utilities, etc. You're always going to be between four to 4.2 or 4.5 and 5.5. That's just how municipal budgets work. So I I think that our our increase is is is expected uh and under normal circumstances would be very much appreciated. uh coming in like 5.2%. So, uh we I think we're pretty good on our side of it and we just need to partner with the town to figure out how we can support the bigger picture of this um moving forward and and I think the numbers will shift a little bit, but whatever questions we have about um the his uh about the assumptions and
048other available uh funds in terms of the the those are the open questions. I think it's also going to come down to uh what actually would be the forecast for insurance if it goes from 7 to 9 to 12 to 14. Um and this is kind of a national situation that we're trying to bring into a local context. Uh whatever we can kind of minimize with our assumptions and identifying available revenue from that other available revenue funds, we could always work with those. that that that you know uh gain in the gap could be undermined by the reality of insurance going from 7 to 9 to 14 pretty quickly and I think for every every percentage of the uh health insurance I what was the number is it 120 or 85 per >> 120 one%
049>> so if you you know so you add add 120,000 for every percent beyond seven is is kind of a working assumption. >> Yeah. I mean that is the I mean the concern of if we already at a 2 whatever it was 2.5 2.2 million gap already and then add on another million so $3.2 million gap >> correct I think we might be hovering around three. >> That [clears throat] is a lot. I mean that that is essentially and again a 0 2% revenue increase is essentially flat funding because health insurance you got to pay for you have to pay for those percent increases and so that's our entire budget increase is 3 what $8 million. Um >> so what so if we we start to anticipate relief um there is the stabilization account that
050was built into the override to use about 700,000 per year and it was self-funding uh and it has a balance in it. I'm I'm sure there's going to be uh when when this discussion becomes to be more um in depth over the next few weeks, I think there's going to be a lot of folks who are going to want to talk about different parts of the the revenues discussion in different parts of the along with you know we have to look at expenses that there's just um for me as long as we understand the number we agree with how we got there then we'll just have a job to do from wherever that leaves us. But uh I think it for me it's a combination of advocating for the schools and being a good partner
051with the town in order to be seen as working together to get to the point where we can uh move the the total budget forward in a way that's responsible to the taxpayers. So um kind of wearing several hats at the same time. you know, the pro school hat, uh, advocating for what we what we need, but also being a partner in the financial stewardship from a school perspective, which I think we've done, uh, and now from a a partnering with the town perspective. So, I think it's going to be an interesting January and February, >> which I think brings us a little bit back to the point you brought up previously, John, which is just kind of our schedule next steps. Sounds like y'all have some internally in terms of conversations um with the
052town and just internally with the school department. What our next meeting is January 14th. We were not able to hold one at the normal time on January 7th because we had negotiations prep. Um I don't know if that negotiations prep is still happening because of the the delays um with just the leave of absence. Um, and so yeah, anyways, I I assume it still will happen on the 7th. Um, so do we want to try and meet sometime that week of the 7th? Do we think waiting my only concern I guess waiting till the 14th is the 14th is when we were going to talk about the round three budget >> and I don't know if we think we'll have enough information maybe to have a round two budget on the 14th based upon kind
053of what you hear from Nick this week or early next week first week back from from break. >> So I'm I'm looking at that week right now. We we have negotiations on the 8th in the afternoon. the prep on the 7th in the morning was a chance for us to review our proposals and prepare for that. Um that we could always move that meeting if we would like to to Monday or later in the day if um or we can have a finance meeting maybe Tuesday afternoon uh at 3:00 or 4 or Wednesday afternoon or prior to school committee just to get an update. Uh it it would be nice to have a a touch base during that week with this group and not just wait. Uh I know we can give you updates to
054Nathan's point. I will be updating you with what I get now to make sure that you have what you whatever I know you should know. Um but um yeah, so I'm I'm open to trying to have an hour during the week of the 5th through the 9th to catch everybody up. Uh if but I can also do it that by email as well. And I will invite Nick to the 14th just as one way to get an anchor meeting with him on the books because we know we have a meeting then. Um unless something happens prior to that. >> Yeah. Yeah, I guess my I do you think it would be helpful if we actually met with Nick the week of that fifth to like just give committee members I also I guess throw this
055out to Amanda and Nathan of would I want to have a meeting with Nick to be able to ask questions directly of the town administrator. I feel bad again making Katie and John kind of speak for the town here and I know they can pass information on but just yeah wondering kind of what y'all's desires would be on talking directly to Nick. >> I think it would be helpful if he could. I mean I think it's if he could make that and we could ask questions of him that would be great. Um if there was an issue around availability, I would still love just love to meet as the committee. >> Okay. >> Same. [clears throat] >> Yeah. I And just one one quick note, I I would love to I would love for us
056to be able to have a discussion with Nick. I also um I would love to be able to do it when we've reached a point of maximum certainty as opposed to being like a little bit on a roller coaster. Um so I don't I don't know. I don't know if there's a if there's a sweet spot there or if we if we will just reach certainty when we reach it and we need to be talking all the time along the way. I think sorry John I >> I would suggest keeping communication lines open uh Nathan because I think that absolute certainty might not come until the end of the month when other estimates of revenue and so forth are actually more solidified. a little bit of this is maybe out of his control in terms
057of waiting for, for example, the insurance discussion that we had Friday. Um, uh, the insurance number is really going to pause for a little bit until we can find out what the big insurance company's going to do at the state level and Maya and they'll be the bellweather indicators of what they're going to support, what their increase is going to be. So, he's trying to get that information um in hand and get those projections so he can help make the assumptions and the projections for the town. That's that's the consultant's advice to him. So, it might take a little while for that number to harden, but I but I think the questions that we have, it would be helpful for him to explain the underpinnings that we're talking about, the assumptions and those other lines
058to give us a better understanding. So, uh, you might be asked to explain it at Dunkin Donuts on Thursday and you want to know what the thinking is and what the underpinnings are. So, it might be helpful to keep to keep the lines open and have them in uh over time uh as opposed to waiting. >> Um, so I guess the next question is just order of operations. Do we want to meet first without um Nick or do we want to meet with Nick and then have our meeting on the 14th? My my thought is tends to be the latter of like try and meet with Nick that week first week back >> and we can hold our finance meeting on the 14th to talk about the implications for the school budget. Um seeing some
059nodding so then I think it's pending kind what Nick can make but hopefully we can get on the schedule earlier. What works for folks if the normal Wednesday at 8 is not possible? I think John threw out a Tuesday at three. Um, but yeah, just is there a afternoon that generally works, Amanda, Nathan, for you or a first thing in the morning that works on a different day? >> Um, I I could do two uh either Tuesday in the morning um or later in the afternoon. Um, I can't do Friday mornings. I can do th uh probably Thursday later in the afternoon. That week is hard for early other than what though. But you guys have something on Wednesday. So >> yeah. So t You're saying Tuesday maybe 8 a.m. W Tuesday 3 p.m. You
060could do >> Yep. >> Could you do Wednesday in the afternoon? >> Yes. >> Okay. >> Right now I can. Yeah. All right. >> The only time I couldn't do on Wednesday, Mark, is uh 12 to 1 in the afternoon. For you after one [snorts] >> and then Thursday, Thursday I can't do midday, like 10 to two, but >> same here. >> Yeah, it seems like Thursday is going to be gonna be rough. >> Yeah. Okay. >> We have we have negotiations starting at um 3:30 and then >> Got it. Okay. >> Yeah. Amanda can't do morning and you can't do midday. So, yeah, Thursday seems out. So, it seems like Tuesday, we're talking about Tuesday morning, Tuesday afternoon, Wednesday afternoon. Currently, John Katie, >> the afternoons work best for me at but like at
061three o'clock on Tuesday or Wednesday would be great. And it would be nice to maybe get that information before we walk into school committee on the we have a school committee meeting on the 7th, which kind of will >> catch up on us a little bit because it's after the break. So, it might be nice to have that information in hand for Tuesday after for for Wednesday the 7th at night. >> Yeah. >> Okay. If it's all right with y'all, then it sounds like Well, Katie, just to be clear, you can make kind of Tuesday or Wednesday at three work. >> Yes. >> Okay. So, it sounds like I will email and I'll CC all on it, but I'll email Nick to see if he can make a meeting with the finance subcommittee on Tuesday
062or Wednesday. I will just offer him both those times and see what which one he can make. and then we'll nail that down this week so I can post forward before the the break and we can let other committee members know too. >> I I also have a one o'clock call with him. So I will brief that with him as well and um >> and then whatever I learn on learn today I will send out by email to you folks um this afternoon or tomorrow morning as this afternoon and then we also have a meeting with him on Monday. So we we'll be keeping you up to date with those two meetings and the the summaries of those meetings as we go along as well. >> Great. So, Tuesday 6 and Wednesday 7. All right.
063>> Okay. >> Uh and then we will keep our meeting on the 14th for >> primarily budget. Um >> absolutely. >> Um that sounds great. >> Is there I know we're approaching nine o'clock here. Is there anything else the group feels like we need to discuss as it relates to timeline or presentation? I guess as I'm saying that I have one which is just and we said in the calendar and I can share this screen real quick. um that on the 14th we'd have our third reading and then we'd start working with the warrant committee kind of after that in the buildup to the public budget presentation on the 21st and then the kind of final vote on the 28th. It if maybe some of this depends on what information we get on the 6th,
064but it seems like this might be tight and we might need to push all this out kind of a week or so. It might be too early just to to decide that, but I guess just want to name that for folks. So that that was the timeline we're kind of working towards. And so if if we don't have to Nathan's point kind of good certainty on what direction we need to move the school department budget in, then it's going by the sixth, then it's going to be hard for us to kind of meet this timeline. And so we should just be aware of that and the implications. Yep. Agreed. >> All right. Uh, anything else budget related? >> No, just so you know, we will be meeting with the um the leadership team and presenting
065some um potential reductions to them when we get back. Uh so we will we will be working towards this uh potential outcome uh behind the scenes to make sure that we're prepared to to move in whatever direction we think that we need to uh given this larger town conversation. >> Great. Um jumping down the agenda just very quickly. John hit on this a few times with the budget coordination report. Um but Amanda just we met on Monday. Yes, we met on Monday just on the long-term uh financial projections uh and discussion of some of those um essential uh draft sorry a draft discussion around some of the um assumptions built within kind of the long-term financial projections, right? What what are we assuming for new growth? What are we assuming for percent increase of um
066local receipts? Things like that. So, not none of that is finalized, but had an initial discussion um with the select board and other members of the MBCC. So, that was that. Um meeting minutes, I did not get to y'all. I will get send those out today. I had most of them done. Uh and then we'll just try and vote on them on the 6th. Uh and then as we said, our next meeting is the 6th or the 7th. Anything else we should discuss before we in the meeting. Yeah, John, >> I would already say um that I this scenario will work its way through. I think we have a good partner in Nick in the town. So, I'm very confident that whatever situation we encounter, we'll be able to work through uh from a school
067perspective and a town perspective. Uh Katie and I and uh Ker have been meeting a little bit to find out where we can do some work in order to potentially uh arrive at a number that might be less than what we thought we were going to have. And um so I I I'm I'm hoping that this is not uh dire and so I I'm a hope overexperienced person. Our glass is half full. This will work out. Uh we did not want to alarm our principles too much by this um right before the holiday break, but we will dive into it and we'll make it work. Um so I I feel confident that we'll come up with a budget that works for the schools for sure. And I want to say thank you to Katie for
068being ready to be able to to exit execute all this work. Uh but now that we're waiting for the number, uh we're we're having her pause a little bit. So I appreciate her hard work leading up to this point. >> Yes. Thank you both very much. Appreciate you. >> Um if there's nothing further, then I will take a motion to adjurnn. >> So moved. >> Is there a second? >> Second. >> Uh all in favor is a roll call votes. Amanda, >> yes. >> Uh Nathan, >> yes. >> And yes, unanimous. Thank you all for your time. Happy holidays and we'll see you tonight. >> Thanks everyone. >> Thank you. [music] >> [music]