Good evening, everyone.

Okay, I just have a few opening comments before we dive in.

Um, I want to thank everyone for coming to this evening.

Um, tonight marks another important step in the budget process as we begin back as we began it back in uh early January.

Since that time, department heads have worked diligently to build the pages that fill your workbooks tonight.

These documents are not abstract numbers, they are crafted by people who know their departments best, who understand the operational realities, the equipment and staffing, and the day-to-day demands required to maintain services for our residents and our businesses.

Each request reflects what is necessary to sustain the level of service our community has come to expect.

And where costs do increase, you will find detailed explanations identifying exactly why specific line items require adjustment.

Transparency and clarity have guided this process from the beginning.

If we look specifically at fiscal years 2021 through 2026, the spreadsheet before you, so you have some handouts which you may refer to, um, tells an important story.

Following the last state mandated reevaluation, which occurs every five years, the cost of operating the town steadily increased, driven by contractual obligations, inflate inflation pressures, capital needs, and essential services.

However, during that same time period, the tax levy did not increase accordingly.

In fact, the town did not see a tax increase until fiscal year 2024-25, and even then it was minimal.

To bridge the gap between rising operational costs and flat revenues, the town relied on the undesignated fund balance.

While that may have provided short-term relief, it was neither sustainable or realistic.

Repeated use of the fund balance to offset operating deficiencies or deficits created a growing structural void in our revenue stream, and now that gap is catching up with us.

The overall proposed budget before you reflects a 3.4% increase.

However, you will see that the current taxes increased by 7.5%.

If the revenue mix had remained proportionate the same as the same as prior years, current taxes would have increased approximately 3.4%, roughly mirroring the overall budget increase.

That difference is that the revenue mark makeup did not stay the same.

Specifically, the use of fund balance has decreased by 1.6 a little over 1.6 million.

Because we no longer relying on that level of one-time revenue to support ongoing operated expenses.

Current taxes had to increase to make up that difference, which is why you see a 7.5 increase in current taxes.

Reevaluation does not create additional revenue.

It simply redistributes the tax burden proportionately based on updated property values.

And due to re-evaluation, the mill rate has been reduced by 8.37 mills.

Again, property values are not driving the mill rate.

Service level levels and revenues needs are.

It reflects creative consolidation where possible, realistic timelines for the useful life of town assets, capital improvements that are necessary now, and thoughtful preparation for those we know are that are coming in the near future.

In front of you this evening, you also have additional handouts, as I mentioned.

Some are duplicates of information that are in the budget book, but they are provided separately because they are easier to reference during the discussion.

There is also graphs that visually break down the data to help illustrate trends, allocations, and overall composition of the budget.

These visuals are intended to make the numbers more accessible and transparent as we move through each section.

Tonight, Bob and I will walk you through each department.

We have a department here, um department heads here this evening to answer any specific questions you may have.

We will move deliberately and clearly so each of you and the public watching can understand how departmental needs directly support the expectations of our community.

So we look forward to the discussion this evening, and we're gonna get started with our first department, which is our public um our building maintenance departments.

So if you want to go to that section first, they should be in order, your tabs.

So overall, this department went up 5.1%.

The main driver is overtime.

Um what we came to find is that previous years were not properly budgeted.

Um so this department request um was reduced by about 20,000 uh requested 20,000.

I reduced it by five with the expectation that the new full-time hired custodian who will be starting on March 16th will work Saturdays as part of his regular schedule.

Currently, when we have events and there's Saturday activities, that's a full day of overtime for our custodians.

So that was one of the um benefits of of making that position in last year's budget, which was approved full time.

No, I think that's the best.

No, I think let's go as as we go, and then we have Todd here who um also is in charge of building maintenance and and the custodians, so he could help you with that.

Okay.

This is okay.

Which one's next?

Police department.

All right.

Bob is my driver of the 145.

Sure.

I just quit button on the overtime.

Um, that isn't traditionally paid for people who rent the building.

That's it's paid to cover the minimal cost.

It does go into revenue, but um there is overtime that is generated.

It doesn't, it's not always exactly.

It wasn't budgeted properly in prior years.