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Finance committee recommends transfers and taps reserves to cover overages, snow removal and OSHA costs
Summary
The committee voted unanimously to recommend a slate of budget transfers and to appropriate $198,000 from reserves for snow removal and $33,865 for OSHA‑related expenses; Finance Director Cherie Trahan warned of potential ECHIP stop‑loss claims of about $850,000 and said the town contributed $500,000 to reserves on June 1.
The Finance Committee voted unanimously on motions to recommend year‑end budget transfers and to appropriate reserve funds to cover several overages at its June 8 meeting.
Finance Director Cherie Trahan detailed the primary drivers of budget overages: police overtime and retirement payouts, legal counsel expenses, temporary staffing and pay adjustments in planning and assessing, liquidated POs used to cover overruns, and significant snow removal costs. Trahan said a $40,000 transfer from DPW was used to fund OSHA items and that if OSHA repairs were not funded other overages could not be covered.
Motion text recorded in the minutes included: "I move to recommend to the full Town Council to authorize the list of transfers presented by the Finance Director" (mover: Peter Larson; second: Julie Blanchard) and the committee voted unanimously. The committee also approved a recommendation to appropriate $198,000 from reserves to cover snow removal costs (motion by Julie Blanchard; second by Peter Larson) and to appropriate $33,865 from reserves to cover OSHA inspection–related costs (motion by Julie Blanchard; second by Peter Larson). Minutes record the votes as "Unanimously in favor."
Trahan also reviewed the town’s ECHIP reserve position: combined cash in the pool was approximately $585,000 at the end of May, the town expects about $270,000 in stop‑loss refunds, and she estimated additional claims through June of about $850,000 — which, if realized, would create a reserves shortage of about $670,000. She told the committee the town contributed $500,000 on June 1 and plans to seed the new Cigna Direct fund with at least the first month or two of premium payments while attorneys complete an MOU and staff finalize terms.
Committee discussion included concerns about using DPW funds for OSHA items and the impact on road maintenance; members noted DPW was already over budget and emphasized transparency regarding transfers and reserve use. The committee adjourned at 8:22 PM by unanimous vote.
