===PAGE 1=== Lunenburg Finance Committee Meeting Minutes Wednesday, March 23, 2022 Location: Fully remote via Zoom Present: Chairperson Peter Beardmore, Chris Menard, Evan Watters, Jay Simeone, Dave Passios Guests: Town Manager Heather Lemieux, Finance Director Karen Brochu, Monty Tech Business Director Tammy Crockett, Monty Tech School Committee member Barbara Reynolds 1. Call to Order Mr. Beardmore called the meeting to order at 7:00 p.m. and read a statement concerning the Open Meeting Law, and how all public meetings are legally being held remotely. This meeting was recorded and is viewable on YouTube at https://youtu.be/2FyhUzpRxwU 2. Announcements: none 3. Public Comment: none 4. Town Manager and Finance Director Report: none 5. Budget Presentations: a. Montachusett Vocational Technical School (Monty Tech): Ms. Crockett updated the committee on grants Monty Tech received addressing socio-emotional programs, as well as trade programs, and adult classes. The school also used Covid funds to upgrade their HVAC units and implemented extracurricular programs, and also upgraded technology. The FY23 budget as well as Covid funds will be used to address COLA increases, and hiring new staff, along with retaining newly gained staff taken on during the pandemic. Ms. Crockett informed the committee that Preliminary FY23 Chapter 70 funds have increased to $5,988,520,366, which is a $485.3 million (8.8 percent) increase from FY22. Based on Student Opportunity Act figures regarding Chapter 70, Monty Tech will spend $19,043 per pupil, not including transportation, capital expenses, or debt service. Lunenburg’s foundation enrollment has increased from 83 to 94, which increases the town’s required minimum contribution to $1,012,282 (a $140,597 increase) for Monty Tech, which is 8.2 percent of all Lunenburg’s Chapter 70 funds. Ms. Crockett reminded the committee that 96 percent of the Monty Tech assessment is governed by the state, which determines contribution by average income and property values in town. After adding in transportation at $24,131 and capital at $17,964, Lunenburg will end up paying $11,217 per pupil. Monty Tech’s total budget is $30,796,896, which comes in barely above net school spending by about $60,000, according to Ms. Crockett. Expenses are broken down as shown in following image. ===PAGE 2=== Ms. Crockett gave the committee the opportunity to ask questions. Mr. Beardmore asked about school choice, and whether Monty Tech is accepting school choice students, and also asked about the per pupil assessment for outbound school choice students. Ms. Crockett answered that the school only accepts school choice students in grades 10-12, but not as freshmen as there is already a waiting list for the school’s regional communities. She explained that the grade 10-12 spots are saved for students who enrolled as freshmen, then moved out of the district so they may remain students at Monty Tech. Ms. Crockett also explained that the four Lunenburg students who have chosen to attend Leominster and Nashoba trade programs become part of the Monty Tech assessment, which in turn gets reimbursed to the state from Monty Tech, and is distributed to the respective schools from the state. Mr. Beardmore expressed his appreciation for Ms. Crockett’s thorough budget presentation, and acknowledged the disparity among community contributions, calling the state’s assessment of Lunenburg unfair, while recognizing the importance of helping lower income students beyond the town’s borders. Mr. Beardmore opined that the state legislature has done the town a disservice. (FY23 assessment for each town and city in the Monty Tech region shown on following page.) ===PAGE 3=== Mr. Menard asked whether the town’s increase in Chapter 70 funds was shown in the Monty Tech assessment. Ms. Crockett replied that the state determines the amount of Chapter 70 funds that will be applied to the assessment based on the amount of low income students at Monty Tech, regardless of which town they’re from. Ms. Crockett pointed out that communities will pay a share of cost per pupil based on what the state determines each community can afford. Mr. Menard also expressed concerns about grant funds running out and asked what the expectation is of affording those expenditures without those funds. Ms. Crockett assured the committee that the budget presented is the ceiling when it comes to funds expected from the town, and that if any more outside funding comes in, the town’s assessment will reflect that. Ms. Crockett also pointed out that the Student Opportunity Act foundation number will incrementally increase over seven years, and hopes the legislature will look at how to fund that increase. Mr. Menard added that vocational school is very important for a great amount of students, and he is supportive of it, but also acknowledged that town’s like Lunenburg are at a disadvantage when it comes to funding. Mr. Passios added that the town needs to be vocal about unfairness when it comes to calculating the determination of what towns are expected to afford. Mr. Menard asked whether any services would be diminished. Ms. Crockett replied that with Covid grant monies, the school plans to focus more on social and psychological aspects of students, and that no services will be diminished. 6. Quarterly Fiscal Report: Ms. Brochu reported FY22 second quarter revenues and expenditures, which covers November 1, 2021 to December 31, 2021. $23,422,547 has been collected, which is 51.9 percent of what was projected. The local receipt estimate for FY22 is $3,114,990.50. The town has so far collected $979,389.85, or 31 percent of that estimate. Ms. Brochu reported that the biggest source of that revenue is from motor vehicle excise tax at $241,715, followed by licenses and permits coming in at $144,977. Ms. Brochu reported that 49 percent of taxes have been collected, which is $14,642,695.78 out of $29,833,387.33. The town has received 51 percent of anticipated state aid or $4,700,511.87 out of $9,242,812.00. As far as expenditures ===PAGE 4=== are concerned, total budgeted expenditures for FY22 are $45,098,551.93. The town has expended/encumbered $22,918,610.79 (50.8 percent) of the budget, and all expenditures appear to be at the level projected. 7. Annual Town Meeting Warrant Updates: There are 30 articles on the warrant to be voted on at Annual Town Meeting. An article from the Personnel Committee regarding the Salary Administration Plan has recently been added and will be discussed at the March 31, 2022 meeting. Ms. Lemieux said there are also some citizen petitions as well as three articles from the Planning Board. 8. Warrant Letter update and discussion: Mr. Beardmore has drafted the letter from the finance committee for the Town Warrant. Mr. Menard commented that he read the draft of the letter, and suggested adding kudos to outsourcing IT, as well as encouraging more collaboration among town departments and the schools. Mr. Beardmore added that he’s considering mentioning big projects that would add to debt service in the future as there is an article requesting to spend $450,000 to demolish the old primary school. Mr. Passios commented on the town’s debt ratio standard, and asked what the town’s rating actually is. Ms. Lemieux added that the current rating could be holding the town back from borrowing for future projects. 9. Minutes none 10. Committee Reports Committee members reported on their respective liaison assignments. Mr. Menard said he watched the Select Board discuss the Flat Hill Rd drainage issues. The board agreed that something needs to be done to solve the problem. 11. Public Comment none 12. Items for Future Meetings Capital Plan 13. Next Meetings March 24, 2022, March 31, 2022 14. Adjourn: At 8:47 p.m. Mr. Menard motioned to adjourn, Mr. Simeone seconded. On vote, motion carried unanimously.