In a special March 25 emergency joint meeting with school officials, Edgecomb selectmen approved two additional warrant questions for the May town meeting referendum election. Selectmen met with School Committee Vice-Chairman Heather Sinclair and Alternative Organizational Structure 98 Superintendent Dr. Keith Laser about an unexpected $460,000 budget surplus. School Committee Chairman Tom Abello notified selectmen March 22 a couple hours after the board approved a 58-article town referendum warrant. In the email, Abello wrote: “Since the conversation with the budget committee and selectboard, we've been taking a harder look at projected revenue, expenses, tuition revenue, COVID-related savings, and federal money. It's become clear that there is more revenue than we realized.”

The school committee’s current FY21 anticipated year-end surplus is approximately $460,000. This resulted in the school committee recommending changing Article 14 for Additional Local Funds from $859,355 to $709,355. Abello wrote the recommendation, which would result in an additional $150,000 to offset the town tax assessment. School officials proposed increasing the original $50,000 taken from surplus to offset local taxes by another $150,000. This would reduce the total local tax assessment to $2,482,378 which reflects a 3.4% reduction from FY 21 total assessed taxes.

A second school committee request was the more controversial one. The committee recommended creation of an Unanticipated Cost Reserve used for a variety of initiatives including unanticipated special education and transportation costs. In a proposed warrant article, the school committee explained its rationale. “The purpose of the Unanticipated Costs Reserve is to set aside funds for unanticipated costs that may arise during the year. Examples of such costs include, but are not limited to, unanticipated repairs to the building; unanticipated equipment repairs, replacements, or acquisitions; unanticipated costs for the provision of special education or other educational services; unanticipated new hires or other payroll costs. The unexpended balance of this reserve will not lapse to the unassigned fund balance at the end of the fiscal year. Approval of this article will not affect the amount of taxes being raised.”

Abello concluded the email writing, “If both warrant recommendations are accepted, the school’s unassigned fund balance is projected to be approximately $70,000 for fiscal year 2022, which is similar to its current balance in fiscal year 2021, and is within the 3% limit of prior year’s budgeted expenditures set by Maine statute.”

Selectmen Mike Smith and Ted Hugger opposed creation of a non-lapsing contingency account which may include up to $200,000. Smith told school officials, “This wouldn’t fly.” He also reminded them voters rejected a similar request for creating a large contingency account last year. Sinclair responded the new contingency account came from the municipal budget committee. She explained the budget committee believed a contingency account would eliminate future wild budget swings and allow for more accurate spending projections. “This is a strategy recommended by our accountant and your budget committee. It’s also recommended by the MMA (Maine Municipal Association). This meets our needs to balance the budget and protects taxpayers from being hit with large tax increases,” she said. 

Smith is a former school committee chairman. He remembers annual surpluses at $25,000 per year and balked at the possible creation of a contingency fund totalling a couple hundred thousand dollars. “I’ve been in town for 35 years and involved in local education since 1994. It just numbs me to think the mindset now is a need for $190,000 contingency in case something happens,” he said. 

During the discussion, Selectman Dawn Murray brought both sides together in a compromise. Murray is a former school committee member. She agreed the school committee needed a contingency account for emergencies and sided with Smith and Hugger that use should be restricted. “I agree the fund shouldn’t be used to hire staff, but there is a need for special education and transportation which we’ve faced in the past,” Murray said. 

Ultimately, selectmen agreed to two additional ballot questions. The questions won’t be part of the ballot, and will be hand counted. Selectmen agreed to the following provisions regarding the projected $460,000 surplus: $70,000 remains in an undesignated account, $250,000 used to reduce taxes, and a $140,000 contingency fund used only with selectmen’s approval. 

Selectmen will approve wording for the new warrant questions at 6 p.m. Monday, April 5.