Committee approves enterprise fund budgets; island home financing shows $5.5M transfer from general fund

The Nantucket Finance Committee voted March 11 to recommend the fiscal 2026 enterprise fund operating budgets, approving changes tied to permanent debt sales for sewer work and clarifying the structure of financing for the Island Home long-term care facility.

Brian, finance staff, told the committee the committee's earlier meeting had presented airport, Island Home, solid waste, stormwater and water department budgets with no changes; the single change incorporated on March 11 was $600,000 in permanent debt financing added to the sewer budget to cover the South Valley Pump Station and CMOM (Capacity, Management, Operation and Maintenance) programs. "We did sell some permanent debt related to sewer, which, by holding it, it did allow us to get that in. That is primarily the sewer was related to, the South Valley Pump Station and some of their CMOM programs," Brian said.

Committee members asked about the Island Home financing. Joe Wright questioned whether the $10,000,000 financing line was wholly a subsidy. Brian explained there are two lines reported: anticipated enterprise revenue (what the facility expects to collect) and a separate financing transfer from the general fund of $5,519,064. "The first line there is fiscal 26 anticipated revenue... and the second line is the financing being transferred from the general fund itself of $5,519,064," Brian said.

Committee members also discussed the possible impact of changes to Medicare or Medicaid reimbursement. Brian said any reduction would require either private-pay increases, expenditure cuts, or use of retained earnings or later transfers if shortfalls appeared. "We would have to hope that private pay increases or we would have to reduce expenditures ... or we would have to potentially transfer retained earnings in at a subsequent town meeting if we expected a shortfall to meet the appropriations," Brian said. Committee members noted current Medicaid rates and the share of revenue Medicaid represents at the facility.

The motion to adopt the enterprise funds appropriations was made by Peter Schaeffer and seconded by (name given as) Bill for the record in the meeting. The roll-call vote recorded aye votes from Peter Schaeffer; Joe Wright; Jill Veith; Chris Kulacki; Jeremy (last name not specified); Denise (last name not specified); and an abstention by Rob (last name not specified) who said he missed substantive discussion. The motion passed with one abstention.

No other changes to airport, Island Home, solid waste, stormwater, or water department budgets were reported. The committee deferred Article 10 to the next meeting; staff said they would circulate the enterprise detail to committee members as necessary before annual town meeting.