Town Administrator Robert L. Whritenour signaled that Yarmouth faces a likely Proposition 2 1/2 override in the upcoming fiscal year, citing a significant $839,000 budget deficit driven by an unexpected 22% spike in Cape Cod Regional Technical High School enrollment. We are hit with educational issues not anticipated, Whritenour told the Finance Committee on Wednesday, noting that 30 new students from Yarmouth have enrolled in the technical school. Town Accountant Jennifer cautioned that preliminary assessments from the Dennis-Yarmouth Regional School District could climb as high as 8%, further straining a budget where total revenue growth is slowing to a projected 2.6%. It looks like this will be a year where we require some type of Proposition 2 1/2 override, Whritenour said, adding that officials hope to keep the request as low as possible to minimize risk to taxpayers. Chair Richard Simon expressed surprise at the preliminary school figures, asking, The school budget is going up six point something percent?

Rising labor and benefit costs continue to outpace revenue, now accounting for 75% of the town's total budget. Beyond education, skyrocketing prescription drug costs—specifically the GLP-1 class of medications like Zepbound used for weight loss—are threatening the town's long-term health insurance stability. Whritenour reported that costs for these drugs within the Cape Cod Municipal Health Group are projected to soar from $4 million to $50 million over the next two years, prompting regional discussions about potentially dropping coverage for the medications. To mitigate these hikes, the town is incentivizing employees to shift into high-deductible HMO programs, which typically see slower inflation rates than traditional PPO plans.

To bolster revenue, the town is moving forward with several fee increases identified through peer community benchmarking. Member Rafael Gutierrez inquired about the methodology behind the changes, asking, Have we benchmarked our fees and taxes against peer towns? Whritenour confirmed that recent reviews have targeted beach stickers, transfer station fees, and ambulance rates. Ambulance receipts are currently targeted at $3 million annually, with $1 million of that total earmarked specifically for capital equipment like new fire engines and ambulances. Whritenour noted that the town strives to maintain middle-of-the-pack wages for public safety to combat recent struggles with staff retention.

During a review of local receipts, Member Nathan Ladley questioned the volatility of investment income and a perceived drop in revenue estimates. Jennifer explained the town’s conservative 90% rule for budgeting, noting, We want to keep it conservative so we aren't relying on it to balance the budget if it drops. Whritenour added that estimating collections at 100% of the previous year's actuals poses too much risk, as any shortfall must be raised the following year before spending a penny on services.

The committee also reviewed departmental shifts, including a new staffing plan to move a position to the Town Clerk’s office to manage a dedicated beach sticker window. Vice Chair George Perkins reviewed the Select Board and IT budgets, describing the former as pretty unexciting while praising the transfer of Geographic Information System (GIS) staff to the DPW. Ladley asked for a clarification on the technology, with Whritenour defining GIS as a map-oriented database essential for managing hundreds of millions of dollars in town assets. Regarding the transfer station, Jennifer noted the town is transitioning to electronic gate readers to ensure compliance and prevent unauthorized commercial dumping.

The committee briefly addressed the $100,000 Finance Committee Reserve fund, which Jennifer described as a tool specifically for extraordinary and unforeseen expenses. Following the budget reviews, which included unanimous support for several general government line items, the committee moved to finalize routine business. Motion Made by J. Anderson to approve the minutes of December 3, 2025. Motion Passed (7-0-0). Members Alyssa Mullin and John Anderson joined the board in the unanimous vote to conclude the session.