The Finance Committee reviewed the first level-funded budget request of the season at its Jan. 13 meeting, and it proved to be a slippery one. The Department of Public Works (DPW) is requesting $1,575,183 for fiscal 2022, about half of which is for personnel. But the department’s union workers are currently working under a contract that expired last June, so the actual personnel costs for fiscal 2021 are not yet known. In addition, other costs that are expected to rise over the next fiscal year may be difficult to handle with a level-funded budget.
Negotiations with DPW workers were delayed this year because of COVID-19. Director Tim Kilhart told the Press that there are only two computers in the DPW building, and Wi-Fi service is poor, so Zoom meetings with town officials and the workers were difficult to hold. Town Administrator Tim Bragan said the town’s labor attorney had been meeting with union representatives, but negotiations were not yet complete. A socially distanced meeting with Bragan, Assistant Town Administrator Marie Sobalvarro, and the union stewards has been scheduled in the DPW building for Jan. 21.
When negotiations are complete, depending on the outcome, the current fiscal year’s budget for the DPW may have to be increased to cover the costs of the new contract. Bragan told the Press he does not yet have an idea of where the funding might come from to cover any additional costs; it depends on how high they are. In any case, the DPW personnel costs for fiscal 2021, when finalized, will be the basis for next year’s level-funded personnel budget.
Kilhart has his own contract, and in his third year, which will begin in fiscal 2022, his contract stipulates a cost of living adjustment of 1.4% plus a sum of money agreed upon by the Select Board. But, he told the committee, Bragan directed him not to ask for any raises this year because of the level-funded budget, and said that the situation would be corrected in the future.
In addition to unknown personnel costs, the Transfer Station hauling contract expires this year. Bids on the contract were scheduled to be opened Jan. 20, and Kilhart expects that hauling costs will increase. With a level-funded budget, that increase would likely be passed on to Transfer Station users in the form of sticker or bag fee increases. But Kilhart said he worries that raising fees too high may drive more residents to private haulers, leaving the Transfer Station unable to cover its operating costs.
Kilhart said water expenses will be higher this year because of a new state requirement for quarterly PFAS testing of public water supplies. In addition, electricity costs for the town water supply will be higher because of a new mixing unit installed in the water storage tank in May 2020. He told the Press the water budget had a surplus last fiscal year, so if nothing goes wrong with equipment, he may have enough to cover expenses.
Historically though, costs often increase during the year, and there is no cushion for that with a level-funded budget. Recycling costs can go up at any time, Kilhart said, as can the cost for vehicle maintenance and road maintenance materials. “If I run out of money, I defer what I can or ask for emergency spending,” he told the Press. He said he had to defer some projects last year when the town had a spending freeze after the pandemic hit. As a result, there was still some money in his budget at the end of the fiscal year on June 30. Kilhart said that surplus went back into the town’s General Fund as free cash, which currently stands at $1.5 million.
The Finance Committee was scheduled to address the police, fire, and finance budgets at its Jan. 20 meeting.
