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Finance Committee weighs options to close roughly $1.3M budget gap; approves limited materials purchase for Lost Lake restroom
Summary
Committee reviewed staff analysis showing about a $1.3 million shortfall and discussed four levers — cut services, cut capital projects, raise the mill rate, or reduce year-end reserves — while urging consideration of fuller taxation of cruise-related sales; the committee also agreed staff may spend up to $10,000 of a $25,000 FY24 allocation on materials for a volunteer-built Lost Lake restroom.
Chair presented a memo showing an approximate $1.3 million deficit in the municipality's draft budget and laid out the options: reduce services, cut capital projects, raise the mill rate, or draw down reserves. The treasurer and manager clarified reserve accounting: the 50% reserve policy is based on operations (about $7 million) and bond payments are budgeted separately.
Committee members debated trade-offs. Some argued for maintaining reserves and selectively cutting capital projects; others cautioned that delaying design and rights-of-way work for housing (Garden City utilities and sewer design) could lengthen timelines and increase future costs. One member noted design fees are often a share of overall project cost and postponement risks higher future spending if construction prices rise.
Public commenters and several members urged exploring fuller capture of cruise-related taxes and closing 'leakage' first (citing onboard and tour sales). Manager Ryan and public-works representatives explained utility design must match the town's existing grid and that rights-of-way and specifications are prerequisites for later construction; staff suggested safeguards such as holding off on construction until the land-trust plan is complete if the assembly directs.
On Lost Lake, Manager Ryan described a volunteer plan to build a cabin and the need for an outhouse vault; staff proposed using about $10,000 of the FY24 $25,000 allocation now to purchase materials to be stored until volunteers can fly them to the site. The committee agreed the purchase is appropriate, noting volunteers will sign up under municipal oversight and the vault design will be simple and maintainable.
Next steps: The budget memo and options will be included in the assembly packet; members will continue budget deliberations at upcoming readings. Staff will track the Lost Lake material purchase under the FY24 allocation and report progress.
