Staff recommends time-limited 'home rule' carve-out to allow Lake Liner spending

Michael (Speaker 6), the town's expenditure-limitation expert, walked council through the constitutional framework that sets municipal spending limits and the three factors the Economic Estimates Commission uses to calculate each year's figure: a base, an inflation factor and a population adjustment.

He explained the difference between excludable revenues (debt proceeds, many grants, certain investment income) and non-excludable revenues that count against the limit. Michael said the town is effectively at its expenditure limitation and must choose among options to finance a major Lake Liner replacement without cutting other priorities.

Michael described two voter options: a permanent base adjustment (a one-time ballot question to raise the base amount permanently) and an alternative expenditure limitation often called "home rule." Staff recommended a tailored home-rule measure that would add a specific exclusion for Lake Liner spending and sunset after four years. "Any expenditures we make for the Lake Liner project, regardless of what revenue they're being spent from, are not subject to our expenditure limitation," Michael told the council.

Council members expressed concern about voter perception of a permanent base adjustment and generally favored a time-limited, project-specific home-rule carve-out that would allow the town to spend carryforwards, pursue debt or other funding streams for the Lake Liner without shrinking normal service budgets. Staff recommended placing the question on the 2028 primary ballot to allow for public education and to take effect in fiscal 2030 if approved.

Next steps: staff will return with draft ballot language, a public outreach plan and timeline for council consideration; a two‑thirds council vote is required to refer the measure to voters.