Town staff factor 2.7% wage adjustment and new retirement costs into draft budget

Staff told the Select Board they applied a 2.7% cost‑of‑living or wage adjustment for payroll lines across departments as a placeholder in the draft budget; the final rate remains a policy decision for the board. Amy and Brian (budget staff) said they used the highest estimate for planning so departments would not understate payroll costs. The figure was added to salary and wage lines and flowed through related payroll expenses such as FICA and retirement. The meeting also included discussion of adopting the state retirement system for certain employees. Staff explained the new retirement contribution estimates are included in several department budgets and that the town’s share of contributions will increase if employees participate. The aggregate budget impact for retirement lines across departments was shown in the packet; staff said the total town‑wide additional retirement cost included in the draft is roughly $64,422 (aggregated across affected departments), noting the final amount depends on participation and precise payroll figures. Board members asked for a consolidated spreadsheet that shows which departments already included the 2.7% assumption and which still require adjustments, and requested that staff highlight lines that are estimates or pending vendor confirmations. Staff agreed to provide a single cross‑departmental spreadsheet showing proposed wages, retirement, and which lines are definitive versus pending.