The Finance Commission met March 20 and agreed to bring the full FY26 operating budget to a vote at its next meeting after staff said updated numbers and funding‑source information would be available. Commissioners discussed a range of possible uses for free cash and debated creating dedicated reserve accounts for capital and pensions while keeping the town’s general stabilization policy floor intact.

Why it matters: The commission’s choices on free cash allocations and reserve policy will affect how the town pays for near‑term capital needs (roofs, HVAC, Town Hall systems) and how much operating support is available without raising taxes or proposing debt measures to voters.

What the commission discussed

- Vote scheduling: Commissioners agreed to consider the full FY26 operating budget at a meeting one week after March 20, and to finalize presentation material and budget books at the April 10 meeting. Staff said updated revenue and encumbrance figures would be ready within a week.

- Free cash and capital: Commission members said they favor using free cash for infrastructure rather than recurring operating costs where possible. Several members expressed support for seeding or increasing a capital reserve to fund studies and early repairs (examples given: HVAC study and roof work described by facilities staff).

- Pension reserve and OPEB: Commissioners discussed establishing a pension reserve fund to hold one‑time free cash until the finance team determines favorable market conditions for investing or to offset future pension costs. The town’s recently created OPEB trust (established late 2024 by the regional district noted in a separate presentation) was referenced as a similar mechanism for long‑term obligations.

- General stabilization and timing: Commissioners noted that the town’s general stabilization fund currently exceeds the policy floor and that some reserve decisions could be postponed to the fall to preserve flexibility. Several items (special education reserve, compensated absences) were discussed as candidates for phased funding later in the year.

Votes at a glance (formal votes recorded March 20)

- Approval of minutes from March 18: Motion to approve moved by Alan Slater and seconded by Eric; chair called the question and a voice vote was recorded as in the affirmative.

- Motion to adjourn: Motion to adjourn moved by Sarah Sullivan, seconded by Eric; voice vote was unanimous.

Ending

The commission agreed to revisit capital reserve and pension reserve proposals later this year if needed and asked staff to provide updated encumbrance figures and a clearer estimate of incremental costs related to the new Coakley building and natural‑gas price exposure before next week’s FY26 operating budget vote.