The Finance Commission on March 6 reviewed the FY26 budget process and voted to request that the Board of Selectmen place multiple warrant articles on the special town meeting warrant, while endorsing the Budget Balancing Committee’s recommendation to use $7.5 million in certified free cash to support the FY26 operating budget.

Commissioners said the Budget Balancing Committee met last week and, after school and general government reductions and conversation about OPEB, recommended $7,500,000 from free cash to balance the FY26 operating budget. The recommendation was approved unanimously by the BBC and communicated to the Finance Commission.

Commissioners and staff emphasized that the town holds roughly $20,000,000 in certified free cash. Using $7.5 million to support operations would leave approximately $12.5 million available for other uses, the commission said. The commission debated whether to earmark portions of that remaining balance for reserves, capital projects or additional retirement funding; members proposed making requests to the Board of Selectmen to put possible warrant articles on the special town meeting warrant to keep options open.

The commission voted to ask the Board of Selectmen to include the following requests on the warrant: contributions to a general stabilization fund, a compensated absences (vacation/sick leave) reserve, a capital reserve fund, an additional retirement contribution and a special education reserve. The motion carried on a roll call vote recorded as unanimous on the record.

Finance staff and commissioners said the FY26 process is being complicated by higher‑than‑expected health insurance premiums. The GIC (Group Insurance Commission) rates released the day of the meeting averaged about 13 percent, above the 10.5 percent the committee had been budgeting. Finance staff said that increase will add pressure to FY26 budgets for both schools and general government.

Jeff (finance staff) answered questions about interest and bond proceeds: investment income and interest earned on municipal funds are treated as general fund revenue unless a special act sets up a different treatment for a specific project. "The interest income both for municipal advisor and bond counsel is general fund revenue," Jeff said, and the Department of Revenue certifies free cash annually.

Commissioners discussed potential capital needs over the next several years and cited items appearing on capital lists: an estimated $10,000,000 stormwater project at Meadowbrook (expected to require borrowing), library façade work and a new ambulance among others. The commission also discussed the FY23 audit delay and reported the town has paused payments to the audit firm while pressing for completion of the FY23 work.

Action and vote: the commission voted to request the Board of Selectmen include the five reserve/retirement/capital items on the special town meeting warrant (motion and second recorded in the minutes; roll call recorded). The commission directed staff to forward the request to the Board of Selectmen for review ahead of the warrant draft due dates in March and April.

Ending: Commissioners scheduled follow‑up budget review meetings with schools, general government and facilities through March and planned to review and approve the budget book for printing in April, ahead of the May town meeting.