Selectmen debate cutting OPEB, adjust retirement commission budget amid tax concerns

The Board of Selectmen engaged in an extended discussion about the town's unfunded retirement liabilities and whether to reduce contributions in the upcoming fiscal year, ultimately approving an amended retirement commission budget after a motion to adjust two lines.

At the outset of the retirement item, a member of the retirement commission explained the board's obligation to address the unfunded liability and warned that actuary‑driven recommended contributions can spike year‑to‑year. The retirement presenter said, "This is the castor oil of budgets. You just got to hold your nose and deal with it," framing funding the liability as painful but necessary.

Selectmen raised specific alternatives, including trimming overbudgeted lines and using surplus funds. The first selectman proposed a combined $1,000,000 reduction—$250,000 from line 51940 (pension contribution) and $750,000 from line 51949 (OPEB/OPED contribution)—as a temporary measure to ease the immediate tax burden. He told the board he would "work with the retirement commission on a long range plan" to address liabilities over multiple years.

Opponents warned the move could increase long‑term costs and forgo investment growth in the trust. One selectman argued that the OPED trust is invested and "it's one of the rare areas where the town can set aside money and it can actually make money," advising caution about cutting it. Supporters countered that the town faces near‑term affordability pressure: "34% of our residents are on fixed incomes," one member said, urging relief for taxpayers this year.

After debate and a voice vote, the board approved the amendment and the retirement commission's revised FY27 budget total was posted by staff. The first selectman and retirement commission were directed to continue planning for a multiyear funding approach to balance actuarial requirements and taxpayer impacts.