Milton is grappling with a projected $2.5 million budget deficit for Fiscal Year 2027, a gap driven by a potential 14% surge in employee health insurance costs that could add an additional $1 million to the town’s financial burden. Town Administrator Nick Milano presented the preliminary forecast to the Warrant Committee, noting that while total new revenue is expected to grow by approximately $4.2 million, or 3%, it is currently being outpaced by departmental requests and rising fixed costs. Milano explained that the revenue projections assume a standard 2.5% property tax levy increase, yielding $2.8 million, plus an estimated $1 million from new growth and roughly $100,000 from local receipts.

The health insurance situation emerged as the most volatile variable in the town's financial planning. Milano noted that the town is self-insured and had originally budgeted for a 7% increase in medical costs. However, following recent consultant meetings, that figure may need to be doubled. Every 1% increase is $140,000, Milano told the committee. We budgeted 7%, but based on a recent consultant meeting, we likely need to adjust that to 14%, adding another $1 million to the deficit. Claims in 2025 were far beyond recent years due to medical costs and pharmaceuticals like GLP-1s.

Committee members raised questions regarding the town's use of reserves and local revenue sources. Grace inquired about the accounting of the town's stabilization funds, asking, We put $2 million in the stabilization fund from free cash, right? Does that mean the free cash was $6.5 million or did it go from four and a half? Milano clarified that the town is adhering to a new policy of leaving a 10% reserve in free cash, which was certified at $4.5 million. Brian sought clarity on whether certain fees were included in the revenue forecast, asking, Does the trash sticker revenue fall under local receipts? And the override money, is that part of the stabilization? Milano confirmed that $1.5 million in trash sticker revenue is counted as local receipts, while $700,000 from the previous override flows into the operating budget stabilization fund.

The committee also reviewed departmental requests from the Parks and Public Works departments. Cecilio presented a level service budget for Parks, representing an increase of less than 1% despite maintaining 121 acres of community land. The team has seven full-time workers and one part-time. They maintain 121 acres of land, fields, and community areas, Cecilio said, noting a massive increase in traffic for the Wildcat Den after-school program. Committee members Brian and Grace both questioned the accuracy of utility budgeting for the department, with Brian noting that the electricity actual was also significantly lower than the budget. We should look at budgeting closer to what we actually spend so that money can be used elsewhere.

The Department of Public Works (DPW) is requesting a 7.5% increase, driven largely by labor contracts and a move to fix a chronic under-budgeting of snow and ice removal. Brian, presenting the DPW review, noted the town has historically budgeted $160,000 for snow and ice while spending closer to $500,000. They are moving it to $250,000 this year to eventually align with reality, he explained. He also highlighted a staffing crisis, with six field vacancies currently open. They face challenges in retaining staff, particularly competing with private contractors. They are piloting a program to sponsor CDL licenses to attract younger workers. Julia suggested that the town protect its investment in employee training, noting if we train people for CDL licenses, we should have them sign a contract to stay for two years or pay back the training costs. Grace voiced concerns about the impact of the vacancies, asking, If these vacancies aren't filled, what is the impact? Is it just more overtime?

In addition to the department reviews, the committee handled a backlog of administrative tasks. Motion Made by R. [Member] to approve minutes for May 6 and May 8, 2024. Motion Passed (7-0-3). Motion Made by R. [Member] to approve eight sets of minutes up to June 30, 2025. Motion Passed (7-0-4). Motion Made by R. [Member] to approve minutes for August 25 and September 15, 2025. Motion Passed (11-0-0).

Looking ahead, Chair Jay mentioned that the Atherton Street fire station project will likely require a design appropriation at the May Town Meeting. He also noted a rare bit of good news regarding the Cunningham renovation project, asking Milano, I heard the Cunningham project came in $1 million under? Milano confirmed the bids were significantly lower than the $5.5 million budget, likely coming in under $4 million. Mr. Walker, Vice Chair of the Budget Coordination Committee, emphasized the importance of long-term planning during this tight fiscal cycle. The Budget Coordination Committee's charge is to ensure no surprises and create a long-term financial forecast looking five years out so the public understands why overrides might be needed, Walker said. Milano is expected to present a balanced budget by late January, which will require significant adjustments to close the current $2.5 million gap.