Council reviews draft FY 2025–26 budget: staff warn pro‑fund drawdown could exhaust recovery funds by 2040 without course change

Council members received a multi-department presentation of the draft fiscal year 2025–26 budget, hearing details on capital projects, staffing, revenue assumptions and recovery fund projections.

Finance staff presented the draft all‑funds budget and long-range model. “Our budget is being put out before you,” presenter Amy told the council, and she walked members through historical totals and the proposed figures. Staff said prior years showed large swings tied to capital transfers and grant‑funded projects; the draft FY 2025–26 all‑funds budget presented to council totaled about $134 million, a figure that includes multiple capital projects and transfers.

Staff summarized historical and current metrics: the town reported about 103 budgeted positions previously and now roughly 100.4 full‑time‑equivalent positions; population estimates used in the model rose from roughly 4,200 earlier to more than 11,000 in a recent Department of Finance count referenced by staff.

On reserves and pro‑funds, staff reported stronger market returns than previously anticipated: the town’s assigned ProFunds balance as of June was about $161 million (above an earlier projection of $141 million). However, staff said that at current spending levels the model projects assigned ProFunds could be exhausted by 2040. If the council and staff begin a planned “transition” phase of reduced spending, staff said a longer…