===PAGE 1=== _____ _____ _____ _____ _____ SELECT BOARD MINUTES January 19, 2021 Via ZOOM Members present: Tom Alonzo, Chairman; Michael-Ray Jeffreys, Vice Chairman; Katey Adams, Clerk; Todd Dwyer, Jim Marino Also Present: Heather Lemieux, Town Manager; Police Chief Gammel, Esteban Bonilla-Perez; Senator John Cronin, Representative Danillo Sena; School Supt. Burnham Chairman Alonzo called the meeting to order at 7:01 p.m. and announced in accordance with the requirements of the Open Meeting Law, please be advised that this meeting is being recorded and broadcast over the Lunenburg public access channel. In accordance with the Governor’s Order Suspending Certain Provisions of the Open Meeting Law, G. L. c. 30A, § 20, all public meetings are being conducted remotely. Mr. Alonzo read the remote meeting information for anyone who would like to join the meeting. He asked if everyone was present by roll call. The meeting opened with the Pledge of Allegiance that was recited by Ms. Adams. PUBLIC COMMENT: Ms. Adams in reference to the Conservation Commission agenda listing that they are reviewing their land use regulations, requested a future agenda discussion on carrying firearms on town property and hunting on conservation land. She also referred to a citizen’s email that advocated general use of the town property for all people and noted she did not support hunting on conservation land. ANNOUNCEMENTS: Mr. Alonzo announced the Lunenburg Water District is calling a special meeting on Wednesday, January 27 at 6:00 PM to vote to petition to include within the limits of the District additional properties owned by Aro Estates lying in the northwesterly part of Lunenburg. He added if you are located within the water district you have a right to vote. Ms. Adams asked how the five year road moratorium on road openings policy would apply to this proposal. Ms. Lemieux stated ARO Estates would have to apply to DPW to request permission. APPOINTMENTS: INTERVIEWS/APPOINTMENTS/ RE-APPOINTMENTS/ RESIGNATIONS Ratification of Town Manager’s Appointment for Police Reserve Officer Esteban Bonilla- Perez Ms. Lemieux asked the board to ratify her appointment this evening. Police Chief Gammel read from his letter of recommendation: “Esteban has competed the Massachusetts Municipal Police Training Committee full time academy, class of 01-19, at Worcester Police Department, in accordance with G.L. 41 § 96B. Esteban has successfully complet ed the Background Investigation, the Pre -employment Physical, and the Psychological Examination. ===PAGE 2=== Esteban is a resident of Fitchburg, moving to the city from Boston while attending Fitchburg State University. Esteban is currently a full time Police Officer for the University of Massachusetts Medical Center, University Campus. Esteban is also a 1 st Lieutenant with the U.S. Army Reserves, assigned to the Transportation Corp in Hingham, MA. Esteban has a Bachelor of Science in Computer Information Systems from Fitchburg State University. Esteban is fluent in two languages, English and Spanish. Through his background investigation it has been found that Esteban is well thought of, being described as a hard worker, honest, helpful, and loyal. It was also stated that Esteban is professional, and "even keeled," and has the ability to de­ escalate situations. I have spoken extensively with Esteban, and I believe that he is a good fit for the Lunenburg Police Department and the Community. Esteban will have a bright future with the Department, and I am pleased to present him as a candidate as a Reserve Police Officer. Thank you for your consideration of my request. Officer Bonilla-Perez thanked everyone for the opportunity to become part of the Town of Lunenburg Police Department as a Reserve Officer. Hopefully in the future I will be able to transition over as a full-time officer. It is one of my ways of giving back to the community. Motion: K. Adams 2nd: J. Marino To ratify the appointment of Esteban Bonilla-Perez as Reserve Officer Vote: Ms. Adams- aye, Mr. Marino- aye, Mr. Dwyer- aye, Mr. Jeffreys- aye, Mr. Alonzo- aye The Board and Town Manager congratulated Officer Bonilla- Perez. He thanked them and exited the meeting. APPOINTMENTS Meeting with State Legislators Present were Senator John Cronin and Representative Sena. Mr. Alonzo expressed condolences to Senator Cronin on the loss of his father. Senator Cronin thanked Mr. Alonzo and stated his Dad had loved Lunenburg. He was happy to bring the Senate seat back to Lunenburg and stated it was a privilege to serve the town in this new capacity. He has had the opportunity to meet with School Supt. Kate Burnham and Town Manager Lemieux. His staff is monitoring the priorities for earmarks and the three projects that are in bond bills at the state level. The town can expect me to be responsive to the town. He was proud of the staff he has pulled together. We are going to be collaborative working with Rep. Sena and Rep. Kushmerek. We are going to work closely together. He believed state and local aid for Covid-19 relief is going to come through at the federal level and then an infrastructure package. He also was looking forward to sitting down with Fire Chief Sullivan and Police Chief Gammel as well. He was excited to get to work. Representative Sena noted he is the first Brazilian American to serve in the state house speaks volumes of the direction that our state wants us to head to. One of the things he was able to accomplish with the Black/Latino caucus was to push for a police reform bill that talks about our country and our state when it comes to race issues. I am very supportive of the work and family mobility act. I am also filing a bill on universal child care that would address the needs of families not only in my district but across the state that would provide child care for children 3- 5. We were able to get an earmark of $25,000 for fire alarms for the town. Mr. Alonzo asked both what their strategic goals were with this next session. Rep. Sena stated we have a new Speaker (Mariano) in the House and he was a teacher. Education, public transportation and climate change has always been an issue. ===PAGE 3=== Senator Cronin stated he was looking for equitable economic growth and recovery in bringing this region through this public health crisis that we are in right now. I hope to serve in some capacity for small business and community development, but the Senate is poised to pivot to a broader view of equity and what that means. Making sure we are making smart investments in this region in access to public transportation in this area and making our commuter rail more accessible as an avenue to work in greater Boston for working and middle class families and students. And also education; I had a really good conversation with Supt. Burnham. People are calling this the lost year and I think there are so many issues for kids’ mental health, for their social, emotional, behavioral development. There is a lack of resources for behavioral health in our schools. This is something I hope to address in the legislature. Mr. Jeffreys asked about funding for senior communities in our town and what we can do collectively to resolve the crisis that many people face financially. As people age there is greater need as taxes go up and home values increase, there are a lot of people who want to stay in their communities. Senator Cronin stated for so many seniors transportation is an issue; it’s a barrier to grocery shopping and the pharmacy and visiting the senior center for community. This is something I think needs more investment with the Montachusett Regional Transportation Authority. It needs to be more accessible to our seniors, so this is one specific area that I am going to look to increase funding and services. Transportation being cut off to our region on the weekends really hurts and I am going to look into this. He believed there is an opportunity to serve our seniors through transportation infrastructure in the future. Mr. Jeffreys stated the hourly wage we pay for the Senior Tax Work-off Program is relatively low. If there is something that can be done to help supplement those funds that would certainly be helpful. The current tax structure for seniors has not be readjusted in quite some time. If that could be evaluated it would be helpful. Ms. Lemieux stated Mr. Jeffreys was referring to the Formula Grant funding. Senator Cronin state he would have to look more into that. Ms. Adams stated what weighed on the back of her mind was pending economic changes. She requested to be kept abreast of it, even if it is bad news. She thanked Senator Cronin for addressing the mental health of our students especially during these unprecedented times. Senator Cronin affirmed we need to do more. He moved on to projected tax revenues. We have cautious optimism as we look forward over the next year. This pandemic has hurt people disproportionately. Rep. Sena regarding seniors, looking at the overall picture we have to have a dialogue about income and how much we want to tax senior citizens. Regarding mental health he shares the frustration and anxiety parents have over the past year of schooling during the pandemic. We have gone through tough times. Now we are starting to rebuild and get a vaccination out. We need to prioritize getting the vaccine distributed. Mr. Alonzo asked the Senator and Representative to look into tax breaks, limited increases etc. for those seniors. He asked where they stood with local aid. Senator Cronin stated we need to increase c. 70 and 90 funding and we need a progressive tax rate to do it. They are investments in the region at large that we can’t afford not to make. I plan to vote to get the millionaire tax on the ballot. This is projected to increase c. 70 and 90 funding by 1 billion dollars each. I also want to increase workforce development for students in low income and working class families to trade schools. I support progressive revenues to increase those and transportation infrastructure and think it is the right move for our region to bring in tens of millions of dollars annually and investments in those two funding streams. Representative Sena believed one way to do this is to pass the millionaire tax. We could use it for both education and transportation infrastructure. This is one of the ways to pay for universal child care. I am filing a legislation in Harvard under home rule petition to cap the property tax for seniors. Maybe that is something Lunenburg can look at. Mr. Alonzo announced Rep. Kushmerek was still in his council meeting and would be unable to attend tonight. He will be scheduled for another time in February. ===PAGE 4=== Mr. Marino thanked Senator Cronin and Rep. Sena for their service and I have heard quite a few of your goals and believed we are all on the same page. He also expressed condolences on Senator Cronin’s father’s passing. Senator Cronin thanked Mr. Marino. Mr. Alonzo thanked both men for coning in tonight. He also invited them back anytime if they had anything to report to the town. Both thanked the Board members and excited the meeting. TOWN MANAGER PRESENTATION OF FIVE YEAR FORECAST AND CAPITAL PLAN Ms. Lemieux began with the Capital Plan. She thanked the Capital Planning Committee and all the department heads who put together their requests. What qualifies as a Capital Project? • The Town’s Policy on Capital Expenditures (Financial Policy Section 3.02) defines capital projects as items that cost $10,000 or more and have a useful life of three years or longer. • The Massachusetts Association of Town Finance Committees defines capital projects as “major, non- recurring expenditures, for one of the following purposes: o acquisition of land for a public purpose; o construction of a new facility or external expansion or major rehabilitation of an existing one. Examples of such town facilities include public buildings, water and sewer lines, roads and playing fields; o any planning, feasibility, engineering or design study related to a capital project or to a capital improvement program consisting of individual projects. o equipment for public improvements when they are first constructed such as furniture, office equipment, or playground equipment; o major equipment which is expensive and has a relatively long life such as a fire apparatus, garbage trucks, and construction equipment. Capital Planning Process • The Capital Planning Committee (CPC) creates a Capital Plan that consists of all capital requests made by each town department for the next five fiscal years. • The CPC’s first meeting to begin the FY22 Capital Planning process was on September 9th, the Capital Planning documents were sent to departments in October and the Capital Planning Committee met with departments throughout November and December to review all the capital project requests as a group. • The forms which are sent to departments were based on the UMass Collins Center Capital Planning documents that include various categories such as effectiveness of government, the effect on operating costs, effect on revenues, whether the project is mandated by the State or Federal government, whether grant funds are available, and how the project contributes to such things as economic growth, public safety, public health and education. The Capital Planning Committee evaluates capital requests based on the responses to these categories with each category being assigned a value depending on the response, and a project receives a composite score. The CPC used this information as a starting point for prioritizing projects but also discussed projects in context of the verbal discussions with the requesting department representatives relative to each project. • The CPC prioritized 19 of the 23 capital project requests for FY22 and provided the prioritized list to the Town Manager on January 5th. • Certain projects were not ranked, certain projects initially submitted by departments were removed due to the department receiving a grant to pay for the project and one project was removed as it was below the $10,000 threshold. ===PAGE 5=== • The Town Manager may modify and/or add to this list of capital projects as part of the proposed budget for the next fiscal year. This capital budget is presented at the Annual Town Meeting, amended as necessary to reflect the will of Town Meeting, and voted on. This plan reflects the same projects that the CPC provided the Town Manager, discusses the prioritization of projects, and amends the costs for 2 of the projects due to new information received after the CPC finalized their prioritization. Fiscal Year 2022 Recommended Capital Plan There were 23 capital requests totaling $2,547,312 for FY 2022. The first chart is for Facilities. FY2022 CIP# Dept. Project Name Category Projected FM16-04 Town Facilities PSB, Construct Records Room Facilities 175,000 FM16-05 Town Facilities PSB, Replace Carpet 1st Floor Facilities 55,000 FM17-05 Town Facilities PSB, Chiller Replacement Facilities 150,000 FM20-04 Town Facilities Senior Center, Interior Painting Facilities 15,500 FM20-05 Town Facilities Senior Center, New Parking Lot Facilities 125,000 FM20-03 Town Facilities Ritter, ADA Ramp Construction Facilities 127,500 FM21-03 Town Facilities Ritter, Envelope Repair Projects in Vertex Facilities 120,000 FM21-02 Town Facilities Town Hall Repairs- Vertex Year Items 2 Facilities 69,425 FM19-09A Town Facilities Brooks House- Vertex Year 0-1 Facilities 91,992 FM21-06 Town Facilities Brooks House-Vertex Items #3, #4 Four Facilities 19,995 FM21-08 Town Facilities Marshall Park Masterplan Facilities 50,000 TOTAL Facilities 999,412 The following are from Police, Fire, Schools and DPW. ===PAGE 6=== FY2022 CIP# Dept. Project Name Category Projected PD16-07 Police Bulletproof Vests, 29 Officers Equipment 17,500 PD17-02-B Police Police Vehicle, Marked Replacement Vehicle 66,950 PD20-02 Police Police Vehicle, Marked Replacement Vehicle 66,950 PD18-02 Police Police Vehicle (Replacement Canine Cruiser) Vehicle 67,000 Subtotal Police 218,400 FD21-01 Fire Turnout Gear Equipment 100,000 Subtotal Fire 100,000 LPS19-03-B Schools AC for Classrooms at Primary School Facilities 290,000 LPS20-01 Schools THES Exterior Envelope Repairs Facilities 67,000 TOTAL Schools 357,000 INFRA20- 02 Highway Flat Hill Culvert Construction Infrastructure 428,500 INFRA21- 01 Highway Page Street Survey/Design/Permit Infrastructure 20,000 DPW17-07 Highway 6-Wheel Dump, plow & sand/Repl.2005 International Vehicles 211,000 DPW21-01 Highway Utility Tractor/Rotary Mower Combo Equipment 165,000 DPW21-02 Highway 3/4 Ton Pickup with Plow Vehicles 48,000 TOTAL Public Works 872,500 Total Capital Requests: 2,547,312  4% of requests came from the Fire Department  8% of requests came from the Police Department  14% of requests came from the School Department  17% of the requests came from the School Department  18 % of the requests are for Infrastructure  39% of the requests are for Facilities ===PAGE 7=== FY2022 Capital Plan Recommendation TM CPC Priority CIP # DEPT, Project Name Category FY22 Projected 2 1 FD21-01 Fire Turnout Gear Equipment 100,000 3 2 PD16-07 Police Bulletproof Vests, 29 Officers Equipment 17,500 4 3 DPW17- 07 Highway 6-Wheel Dump, plow & sand/Repl.2005 International Vehicles 211,000 5 4 FM17-05 Town Facilities PSB, Chiller Replacement Facilities 150,000 1 5 INFRA20- 02 Highway Flat Hill Culvert Construction Infrastructure 428,500 6 6 PD17-02- B Police Police Vehicle, Marked Replacement Vehicle 66,950 7 7 LPS20-01 Schools THES Exterior Envelope Repairs Facilities 67,000 8 8 FM20-03 Town Facilities Ritter, ADA Ramp Construction Facilities 127,500 9 9 FM21-02 Town Facilities Town Hall Repairs- Vertex Year Items 2,3,5,6 Facilities 69,425 10 10 INFRA21- 01 Highway Page Street Survey/Design/Permit Infrastructure 20,000 11 11 FM21-03 Town Facilities Ritter, Envelope Repair Projects in Vertex#6-12 Facilities 120,000 12 12 PD20-02 Police Police Vehicle, Marked Replacement Vehicle 66,950 13 13 FM16-05 Town Facilities PSB, Replace Carpet 1st Floor Facilities 55,000 Total Capital Plan 1,499,825 Funding: Raise & appropriate 600,000 Free cash 688,825 Unexpended Capital Premium Reserved for Capital Special Purpose Stabilization Account 211,000 Total Available Funding 1,499,825 ===PAGE 8=== Project Title: INFRA20-01 Flat Hill Culvert Reconstruction Project Cost: $428,500 Description and Justification: This request is to reconstruct the Flat Hill Culvert. At the June 2020 Annual Town Meeting funding was approved to proceed with the engineering and design necessary to reconstruct this culvert through the MassDOT design standards and process. MassDOT typically does inspections every 1-2 years; in the fall of 2019 the inspection raised the pipe and headwall and rated it severely deficient with the urgency of repairs to be addressed ASAP. At a follow-up inspection on January 5th, the inspector raised the deficiencies for the headwall and pipe from severely deficient to a Critical Structural Deficiency with the urgency of repairs raised to immediate and due to settlement on the southbound lane, the bridge was reduced to one lane. The Town is working with our engineer that is doing the design for the reconstruction to submit a Small Bridge Grant application but funding is not guaranteed. If the Town does receive funding through the SBGP the unexpended capital funding will be reallocated at a future town meeting. This project is being mandated by the State, is over its reasonable life span, increases effectiveness/efficiencies, reduces liabilities, does not impact the operating budget, contributes to public safety and environmental sustainability. Project Title: INFRA21-01 Page Street Culvert Survey/Design/Permitting Project Cost: $20,000 Description and Justification: This request is to perform the necessary survey, design, and permitting for the Page Street Culvert Reconstruction. The roadway is showing settling that would indicate the failure of the pipe and if further deterioration is noted a plate may need to be installed. This structure is over its reasonable life span, increases effectiveness/efficiencies, reduces potential liabilities, does not impact the operating budget, and contributes to public safety and environmental sustainability. Project Title: FM17-05 Public Safety Building Chiller Replacement Project Cost: $150,000 Description and Justification: This project has been on the capital plan since FY2017. The current chiller, which is the unit that provides air conditioning to the entire building, is in imminent failure. The unit is 16 years old and is over its expected lifespan. The unit has had a number of repairs over the years to keep it functioning but in its current state cannot be repaired without a substantial investment outside the budget and is not expected to function in its current state in the summer of 2021. As it relates to the unfinished portions of the building, this unit is designed to handle the entire footprint of the building and the rough plumbing for the HVAC was installed in the second floor when the building was built. This project will increase effectiveness/efficiencies and will decrease annual operating costs due to decrease maintenance costs. Project Title: FM20-03 Ritter, ADA Ramp Construction Project Cost: $127,500 Description and Justification: The engineering/design for this project was approved at the November 2020 Special Town Meeting and is expected to be complete by the end of this fiscal year. The next step in the process would be to proceed with the construction of the ramp that will address the lack of an appropriate ADA entrance to this building. There is no expectation that we would receive funding through a grant for this project. This project would increase effectiveness/efficiencies, address potential liabilities, improve customer service, make the Ritter Building entrance ADA compliant, and would contribute to public safety. ===PAGE 9=== Project Title: FM21-02 Town Hall Building Envelope Repairs in Vertex Report Project Cost: $69,425 Description and Justification: This project would be to cut out and replace the sealants between the siding and wall penetrations (windows and doors), replace the windows at the basement level, replace the existing roof, and repair the chimney. Items were included in the Vertex Property Condition Assessments as needed to be addressed between FY18-FY20. These envelope repairs will ensure the integrity of the building, reduce the potential liability of leaks, as well as the aesthetics, heat loss, therefore making the building more energy efficient. Project Title: FM21-03 Ritter Building Envelope Repairs Project Cost: $120,000 Description and Justification: This project would include removing and replacing the decorative trims/fascia, cutting out and replacing sealants between various materials (windows and doors), and replacing the windows. The bid would include alternates for select roofing repairs, repairing the gutters, brick-mortar repair (clean, pressure wash, repoint mortar), select brick-brick repair and replacement, repainting of exterior walls, and replacing the wood shutters. Items were included in the Vertex Property Condition Assessments as needed to be addressed between FY18-FY22. These envelope repairs will ensure the integrity of the building, as well as the aesthetics, heat loss, therefore making the building more energy efficient. Ms. Lemieux noted this project had a secondary estimate done by an architect and the total cost including the alternates came in at $200,000. But given the recommendations we went through with the Capital Planning Committee and the information we knew at that time and the budget that we have right now, which we can address at a future date when more funding becomes available. This project could be expanded to fund the whole project. Project Title: FM16-05 Public Safety Building Carpet Replacement Project Cost: $55,000 Description and Justification: This project would replace the original carpet in the public safety building that was constructed 16 years ago. The carpet has reached its expected lifespan and is presenting tripping hazards due to wear and tear. This project will reduce potential liabilities and will not have an impact on the operating budget. Project Title: DPW17-07 6 Wheel Dump Truck with Plow and Sander Project Cost: $211,000 Description and Justification: This project is to replace the 2005 International 6 Wheel Dump Truck that is at the end of its lifespan and may not make it to the end of the current snow season. The body is beyond repair as there is no viable metal to even weld do any more and the structural integrity of the frame is becoming a safety concern as well. Recently this truck has developed an engine oil leak coming from behind the oil cooler on the engine block. Fixing this issue would result in extensive work costing a significant amount of money. The reason for this is that anything that needs to be removed to fix this issue will also need to be replaced due to how delicate of shape the truck is in. This is the second engine that has been in this truck. Also the truck has many electrical issues as the mechanic is constantly chasing wiring issues. In the town mechanics professional opinion, he will be surprised if this truck makes if through the rest of the winter season without any major issues. ===PAGE 10=== This vehicle is used primarily for snow operations for plowing and sanding main roads but is also used year-round. If this vehicle were removed from the fleet and not replaced it would significantly impact snow operations. The truck currently has approximately 83,000 miles on it. The project will increase efficiencies/effectiveness, decrease the operating costs due to decreased maintenance costs and contributes to public safety. Project Title: PD16-07 Bullet Proof Vests Project Cost: $17,500 Description and Justification: This project is seeking to purchase 29 bulletproof vests as the current vests will be at the end of their five year lifespan. The FY17 Capital Plan appropriated $17,500 for the purchase of vests and there is $5,768 remaining for that capital project that will reduce the total cost of $23,200 for 29 vests to $17,500. The project reduces potential liabilities, has no impact on the operating budget, there is a federal grant that half the cost may be eligible for funding and it contributes to public safety. Project Title: PD17-02B Hybrid Replacement Marked Police Cruiser Project Cost: $66,950 Description and Justification: This project is a replacement cruiser for Cruiser #209 (2019 Chevy Tahoe); the replacement would be a 2021 Ford Explorer Hybrid. The 2019 Chevy Tahoe would become a spare vehicle. Spare cars are used by Reserve Officers and are used when there are added patrols for such things as OUI patrols, Click or Ticket campaigns, and other direct patrol events. By the time that the vehicle is ordered and outfitted, the current cruiser is estimated to have between 70,000-90,000 miles. The project would increase effectiveness/efficiency, reduces potential liabilities, has no impact on the operating budget and contributes to public safety. Project Title: PD20-02 Hybrid Replacement Marked Police Cruiser Project Cost: $66,950 Description and Justification: This project is a replacement cruiser for Cruiser #210 (2019 Chevy Tahoe); the replacement would be a 2021 Ford Explorer Hybrid. The 2019 Chevy Tahoe would become a spare vehicle. Spare cars are used by Reserve Officers and are used when there are added patrols for such things as OUI patrols, Click or Ticket campaigns, and other direct patrol events. By the time that the vehicle is ordered and outfitted, the current cruiser is estimated to have between 70,000-90,000 miles. The project would increase effectiveness/efficiency, reduces potential liabilities, has no impact on the operating budget and contributes to public safety. Project Title: FD21-01 Turnout Gear Project Cost: $100,000 Description and Justification: This request is for 20 sets of personal protection equipment for firefighters. This would provide most personnel with a new set of PPE. Their existing gear in most cases could be maintained as a spare set. The Fire Department’s operating budget has been historically funded at $10,000/year to replace Protective Equipment. This originally allowed them to purchase 5 sets of equipment per year. Due to inflation, this now purchases 2 sets of gear. At 30+ Firefighters and a recommended service life of 10 years the replacement cycle has become unsustainable. In FY’14 an adjustment of Capital funds for Protective Equipment allowed the purchase of 10 sets, which temporarily offset the issue. Another issue is the increasing concern of exposure to carcinogens that are absorbed into the equipment while fighting a fire. While the FD has the equipment to clean the clothing, many firefighters have no spare set of gear to use while it is being cleaned. Cleaning cycle can take up to 24 hours in some cases. This equipment will increase the effectiveness of the department, decrease potential ===PAGE 11=== liabilities, the purchase of these 20 sets does not impact the operating budget and contributes to public safety. Project Title: LPS20-01 Turkey Hill Elementary School Envelope Repairs Project Cost: $67,000 Description and Justification: This project will repair damaged concrete window sills in the gym section of the building that are deteriorating badly, repair fascia on the administration section, interior courtyard and front awning. The membrane that wrapped the fascia has failed and the plywood layer of the fascia is partially exposed. This project is needed to keep water out of the building and ensure that any portion of the concrete sill does not fall from the building. This project is not eligible for MSBA or Green Community funding. Green community funding has funded the addition of insulation on the interior of the fascia but is not available to provide the waterproof coverings for the plywood. This project over the expected lifespan, increases efficiencies, decreases liabilities, does not impact the operating budget and contributes to public safety, education, aesthetics, and environmental sustainability. PROJECTS NOT FUNDED FOR FY2022 Project # Project Title Project Description CPC Ranking FY2022 TOWN FACILITIES FM16-04 Public Safety Building, Police Records Room (new) This project would finish the unfinished space on the second floor on the Police side of the PSB (34 x 28). The space was originally designed to be a finished space but was not completed as part of the original PSB construction. The space is to be used for archival records storage. The area under consideration has an insulated wood framed floor structure capable of supporting 70 lbs. per SF of live load; insulated concrete masonry walls to approx. 64 inches above the floor; and an uninsulated wood framed attic space above the concrete masonry walls which slopes up to a ridge at 21 feet above the floor. There is fire suppression in the attic space and on the floor below. Construction to be a records storage room require it to have a live load capacity of the floor of at least 125 lbs. per SF, be constructed with fire resistant construction with a detecting fire alarm and fire suppression and climate controlled. The current live load capacity is not adequate for stacked paper records so the existing floor structure would be upgraded as part of this project and a fire resistant coating would be applied to the floor joists and plywood subfloor and fire rated walls and ceiling. Smoke detection would be installed and connected to the existing fire alarm system that would be a chemical system so as to 13/19 $ 175,000 ===PAGE 12=== not result in water damage to records. A 2 hour fire rated security door would be the access point. FM21-08 Marshall Park Masterplan The Parks Commission is reviewing the future uses and better use of land at Marshall Park. Plan would incorporate all necessary design considerations, including parking. 14/19 $ 50,000 FM20-04 Senior Center Interior Painting Painting of the Interior Rooms of the Eagle House. Not Ranked $ 15,500 FM20-05 Senior Center New Parking Lot Creation of new parking lot between Eagle House and Kids Kingdom to create more off street parking. This would address safety concerns with seniors parking in the street to access the Eagle House. This project was not ranked due to insufficient information and that further preliminary information is needed. Not Ranked $125,000 FM21-06 Brooks House- Vertex Items #3, #4 This project would address repairs to the foundation Not Ranked $19,995 FM19- 09A Brook House Vertex Costs in Yrs. 0-1 This project would include abatement of hazardous materials and installation of backflow preventer for water line Not Ranked $91,992 Project # Project Title Project Description CPC Ranking FY2022 DPW DPW21- 02 3/4 Ton Pickup Truck This project would be a new vehicle for the DPW Director. The Director currently is using the 2018 Ford350 and is recommending this vehicle be used by the DPW Mechanic so he has a dedicated vehicle in the events he needs to drive to the location of vehicles that need work. 15/19 $ 48,000 DPW21- 01 Utility Tractor This project would be a new piece of equipment for the DPW. This project would allow the DPW to do larger projects in-house and the department could get a lot more done in less time. 18/19 $ 165,000 POLICE ===PAGE 13=== PD18-02 Police Cruiser, Replacement for Canine Cruiser K-9 Cruiser #216 is a Chevy Tahoe purchased in 2015. It was scheduled for replacement in 2021 but it was re-scheduled for FY22 to accommodate a Green Communities grant for hybrid cruisers. The associated cost to replace the vehicle includes up- fitting the vehicle and any replacement parts to accommodate the K9 equipment. 16/19 $67,000 SCHOOL LPS19- 3-B AC for classrooms at Primary School This project will install condensers to allow the Energy Recovery Units on the Primary School roof to be able to cool the classrooms. In 2004 when the Primary School was constructed, 2 ERUs were provided with cooling capability and locations and sizes were set for providing condensers at a later date. Additionally 5 unit ventilators will be retrofitted with cooling coils so that the Music Room and the cafeteria would have cooling. This project will allow the cafeteria and all classrooms to be cooled in warm weather. This project is not eligible for MSBA or Green Community funding. The Town approved funding at the last town meeting for the design portion of this project. 19/19 $290,000 The Total amount that was not funded in FY22 requests is $1,047,487. FY2022 Capital Plan TM Priority # CPC Priority # CIP# Dept. Project Name Category FY2022 Projected 2 1 FD21-01 Fire Turnout Gear Equipment 100,000 3 2 PD16-07 Police Bulletproof Vests, 29 Officers Equipment 17,500 4 3 DPW17- 07 Highway 6-Wheel Dump, plow & sand/Repl.2005 International Vehicles 211,000 5 4 FM17-05 Town Facilities PSB, Chiller Replacement Facilities 150,000 1 5 INFRA20- 02 Highway Flat Hill Culvert Construction Infrastructure 428,500 6 6 PD17-02- B Police Police Vehicle, Marked Replacement Vehicle 66,950 7 7 LPS20-01 Schools THES Exterior Envelope Repairs Facilities 67,000 8 8 FM20-03 Town Facilities Ritter, ADA Ramp Construction Facilities 127,500 ===PAGE 14=== 9 9 FM21-02 Town Facilities Town Hall Repairs- Vertex Year Items 2,3,5,6 Facilities 69,425 10 10 INFRA21- 01 Highway Page Street Survey/Design/Permit Infrastructure 20,000 11 11 FM21-03 Town Facilities Ritter, Envelope Repair Projects in Vertex#6-12 Facilities 120,000 12 12 PD20-02 Police Police Vehicle, Marked Replacement Vehicle 66,950 13 13 FM16-05 Town Facilities PSB, Replace Carpet 1st Floor Facilities 55,000 Total Capital Plan 1,499,825 Funding: Raise & appropriate 600,000 Free cash 688,825 Unexpended Capital Premium Reserved for Capital Special Purpose Stabilization Account 211,000 Total Available Funding 1,499,825 Ms. Lemieux noted she was in agreement with the Capital Planning Committee on the order of priorities except for the Flat Hill culvert construction project. Looking Ahead- Capital Requests FY22-FY31 Ms. Lemieux presented a chart of the Ten Year Plan but was not going to review them this evening. There were many Town Facility, Fire, Police and Highway infrastructure and equipment projects. Our five year average expenditure on capital is $1.06M and the three year average is $1.44M. Given there are capital project requests totaling $18.5 M at this point in time for the next 10 years, and if our funding remains consistent, we will not be funding between $4.1M-$7.9M in capital requests. However, this total changes if we eliminate the Brooks House and TCP projects. Capital Plan Program  The below slide demonstrates the scenario of using a foundation of $600,000 from R&A increasing at 2.5% each year, a foundation of $500,000 from Free Cash increasing at 2.5% each year, and the use of the Special Purpose Stabilization Fund for costly vehicles;  Depending on what the end use of the Brooks House and the TCP Building, if the projects in the 10 year plan for these two buildings were eliminated it will reduce the amounts needed in the Capital Plan. Ultimately there will be a financial impact for both buildings but end use will determine the extent and affect the decisions that will need to be made regarding financing. ===PAGE 15=== NEXT STEPS • Re-evaluate the FY2022 Capital Plan as the FY2022 budget development progresses to see if additional funding can go towards the FY2022 projects that were not funded. Deferred projects will compound the amount needed for capital in future years. • Consider adoption of a policy that dedicates a portion of the budget for capital outlay to have a consistent amount dedicated towards capital. Tax revenue is a reliable source of funding as opposed to free cash, which fluctuates. This will help establish a baseline for funding future capital budgets. • Plan on using the Special Purpose Stabilization Fund for in years that have items such as a 6 Wheeler, 10 Wheeler, or Ambulance unless there were sufficient funds through other regular sources (R&A, Free Cash, Unexpended Capital).Current balance approx.$1.2M. • Once a plan for THES and TCP are known, this will determine the need for the capital projects for those two buildings on the 10 year plan. Ms. Adams thanked Ms. Lemieux and the Capital Planning Committee for their work. Mr. Jeffreys also thanked Ms. Lemieux for a thorough and well-thought out presentation. He appreciated the focus on facility projects and that this reflects our continued investment in facilities, Police and Fire. She also suggested discussing Turkey Hill Elementary School’s needs sometime in the future. CURRENT BUSINESS 1. Action Items Mr. Alonzo stated the Select Board needs to put Appointments/Reappointments back on the agenda for discussion but he has only receive one of four processes to date. Ms. Adams would like to continue to discuss granting permission for hunting on Town land; specifically does the Town or the public have any ability to create policy that would override the ability for hunting to be on these spaces? Project Name FY2022 Projected FY2023 Projected FY2024 Projected FY2025 Projected FY2026 Projected FY2027 Projected FY2028 Projected FY2029 Projected FY2030 Projected FY2031 Projected Totals Total Capital Plan 2,547,312 2,647,830 2,843,906 1,608,452 1,552,059 1,289,000 407,000 1,242,353 4,423,710 - 18,561,622 Funding: Raise & appropriate 600,000 615,000 630,375 646,134 662,288 678,845 695,816 713,211 731,042 749,318 Free cash 688,825 500,000 512,500 525,313 538,445 551,906 565,704 579,847 594,343 609,201 Unexpended Capital Borrowing Premium Reserved for Capital Special Purpose Stabilization Account n 211,00 0 250,000 225,850 - 396,000 - 1,082,850 Total Available Funding 1,499,825 1,365,000 1,368,725 1,171,447 1,596,733 1,230,751 1,261,520 1,293,058 1,325,385 1,358,519 13,470,963 Surplus/(Shortfall) (1,047,487) (1,282,830) (1,475,181) (437,005) 44,674 (58,249) 854,520 50,705 (3,098,325) 1,358,519 (5,090,659) Minus Brooks/TCP Vertex Projects (935,500) (386,923) 40,819 318,101 788,674 (58,249) 854,520 50,705 (3,098,325) 1,358,519 (1,067,659) ===PAGE 16=== Mr. Jeffreys requested discussing the APD by-law as it pertains to town properties. He will be prepared at the February 2nd meeting to propose a change. Mr. Alonzo suggested providing it to the Town Manager so it can be distributed to all the Board members in advance of the meeting. 2. Committee Reports Mr. Jeffreys reported the TCP Building Design Committee met last week and reviewed the interior plans in more detail. We met with the architect to review the civil plans for the building exterior in terms of parking lots, sidewalk locations, exterior doors, etc. The goal is to have a warrant article to fund some construction documents. Work is ongoing with a diversity of thoughts. 3. Discussion on Fiscal Year 2022 Budget and Annual Town Meeting Warrant articles Ms. Lemieux noted if a debt exclusion is needed in regards to the funding for the TCP Building Design, the Select Board would need to vote on that ballot question in February if it is expected to be on the Annual Town Election ballot. Ms. Lemieux reported so far we will have the standard annual warrant articles but the office has not received any submissions for warrant articles. The warrant closes on March 15th at 4:00 p.m. Five Year Financial Forecast Ms. Lemieux presented her forecast to the Board via a PowerPoint presentation. What is a Financial Forecast? • A financial planning and policymaking tool that projects revenues and expenditures conservatively over a multi- year period • It is a “living document” that is used to evaluate the budget over a five year period and update forecast with changing financial data Why Forecast? • Provides a starting point from which a balanced budget is developed • Projects likely outcomes based on historical practices • Allows to look at “what if” scenarios • Indicates future budget gaps • Projects revenues and expenditures conservatively over a five year period • Bond Rating Agencies look favorably upon communities that annually prepare a forecast document • Required by Town’s Charter, Section 4-2 (s) Forecasting v.Budgeting • Forecast provides a long-term and “big picture” financial perspective on service delivery using both known information & assumptions on future revenues and expenditures. • The Budget is a specific plan detailing service delivery in the coming fiscal year. Goals of Forecasting • Gain a long-term perspective/ basis for planning • Determine whether fiscal problems are on the horizon • Time to plan for change, favorable or unfavorable • Reinforce the need for long-range considerations during the annual budget process ===PAGE 17=== Forecasting- Key Concepts • Uses reasonable, conservative assumptions that must be evaluated and updated each year • Represents the community’s projected financial position • Is a tool to evaluate the impact of various budgeting decisions and policy choices over time • Is a living document that can be adjusted • Once you develop baseline projections, the underlying assumptions can be adjusted to address issues • A forecasted shortfall needs to be examined and does imply that some action will be taken, or at least planned, to avoid the financing problem • Action to balance the budget Raise revenue; Reduce expenditures Forecasting Tools & Guides • MGL, Town Bylaws, other Generally Accepted Standards • Financial Policies • Historical Trend Analysis • Debt Service Schedules • Union and Employment Contracts • Assumptions Financial Policies • Current Financial Management Policies & Objectives include: o Exempt and Non-Exempt Borrowing & Debt Burden: • Reg. Debt no more than 4% of regular tax levy • Total of annual debt for exempt debt no more than 11% of tax levy • Net Debt Service of Exempt and Non-Exempt no more than 14% of the tax levy o Stabilization Fund Account: The deposit from Free Cash will be made in order to maintain a min. balance of 5% of the current FY Omnibus Budget o Use of Free Cash: 1) Reg. Stab. Account (above), 2) Fund non- reoccurring expenditures (Capital), 3) OPEB 4) Special Purpose Stabilization Fund o Capital Projects/ Purchases: Projects/Assets cost $10,000 or more and useful life of 3+ years o OPEB Funding: 10% of certified Free Cash from previous fiscal year Trend Analysis & Contractual Obligations • Look at historical data to see what type of trends in revenues have occurred over periods of time. Use of historical data can assist in predicting future trends • Current Union Contracts, Salary Administration Plan increases for non-union employees accepted by town meeting vote, employment contracts • Other known contractual increases • Forecast uses only the existing debt service schedules and allows us to project what available capacity there is to take on new debt Assumptions for Financial Forecast- FY2022 - FY2026 Use data obtained from all sources mentioned to make assumptions about: • Revenues o Property Taxes, State Aid, Estimated Local Receipts, Other Available Funds (Stabilization, Free Cash) ===PAGE 18=== • Expenditures o All operational costs to provide equivalent staffing levels as FY21 and related expenses for existing programs. The FY2022- FY2026 Financial Forecast includes the long term staffing plan for Police and Fire and provides a scenario for staffing increases for the Lunenburg Public Schools. o Debt Service o Assessments for Regional Services o Pension costs, Health/Life Insurance, General Insurance, OPEB o Reserve Fund, Stabilization o State Assessments Revenues Revenues: Known Figures and Assumptions  Property Taxes: Forecast for FY22 increases property taxes by 2.5% (per Proposition 2 ½) and uses an estimate of $280,590 for New Growth; Forecast for FY23-FY26 increases property taxes by 2.5% and uses an estimate of $300,000 for New Growth. Property taxes also reflect added taxes from Bright Farms TIF for years FY23-FY26.  Debt Exclusions: Debt Exclusions are added to the Tax Levy Limit and are known figures per the debt schedule as of this point in time. Forecast for FY22-FY26 increases or decreases the debt exclusion amounts each year to account for exempt borrowing.  State Aid: Forecast for FY22 level funds State Aid from FY21, FY23-FY26 assumes a 2.5% increase from previous fiscal year.  Local Receipts: Forecast assumes level funding all local receipt categories with the exception of the Motor Vehicle category (increased by $50K) for FY22 and assumes a 2.5% increase for MV Excise and a 2% increase in all other local receipt categories for FY23-FY26.  Other Available Funds: Forecast for FY22 uses $969,243 of our certified free cash. $688,825 of that amount towards the FY22 Capital Plan,  $100,000 into the Stabilization Account, and $180,418 into the OPEB Trust Fund to comply with our financial policies. The Forecast for FY23- FY26 does not predict the use of any Free Cash and “other available funds” are consistently used across FY22-FY26. Other available funds include funds from the Artificial Turf Revolving Fund to pay for turf field debt and MSBA funds reserved for debt service totaling approx.  $535,000 (drops off in FY24). Forecast assumes use of Special Purpose Stabilization funds in years with large vehicle purchases.  Forecast for all five years assumes no draw on the regular stabilization account and assumes no new borrowing. Revenues-Property Taxes Town of Lunenburg Revenue Projections PROPERTY TAX LEVY Prior Year Tax Levy Limit Amended Prior Growth 2.5% Increase Certified New Growth Override FY2020 Budget FY2021 Budget FY2022 Projected FY2023 Projected FY2024 Projected FY2025 Projected FY2026 Projected 24,137,396 25,107,062 26,043,471 26,993,268 28,004,340 29,058,809 30,139,639 603,435 627,677 651,087 674,832 700,109 726,470 753,491 366,231 308,732 280,590 300,000 300,000 300,000 300,000 ===PAGE 19=== TAX LEVY LIMIT TOTAL Debt Exclusion(s) Capital Expenditure Exclusion(s) Stabilization Fund Override Other Adjustment Water/Sewer 25,107,062 26,043,471 26,975,148 27,968,100 29,004,449 30,085,279 31,193,130 2,947,348 2,852,779 2,828,812 2,831,932 2,477,704 2,313,898 2,213,678 - - - MAXIMUM ALLOWABLE LEVY① LESS Excess Tax Levy Capacity 28,054,410 28,896,250 29,803,960 30,800,032 31,482,153 32,399,177 33,406,808 3 4,113 - - - - - TOTAL Tax Levy② 28,054,407 28,892,137 29,803,960 30,800,032 31,482,153 32,399,177 33,406,808 Revenues-State Aid ===PAGE 20=== Revenue- MSBA Reimbursement Town of Lunenburg Revenue Projections FY 2020 FY 2021 FY2022 FY2023 Budget Budget Projected Projected TOTAL MSBA REIMBURSEMENT 474,239 474,239 474,239 474,239 Revenues- Local Receipts Receipt Projections FY2020 Budget FY2021 Budget FY2022 Projected FY2023 Projected FY2024 Projected FY2025 Projected FY2026 Projected 1. Motor Vehicle Excise 1,671,640 1,671,640 1,721,640 1,764,681 1,808,798 1,854,018 1,900,368 2a. Meals Excise 100,980 100,980 100,980 103,000 105,060 107,161 109,304 2b. Room Excise - - - 2c. Other Excise-Boat - - - 3. Penalties/Interest on Taxes and Excises 156,022 154,670 154,670 157,763 160,919 164,137 167,420 4. Payment In Lieu of Taxes 1,648 1,648 1,648 1,681 1,715 1,749 1,784 5. Charges for Services-Water 6. Charges for Services-Sewer 7. Charges for Services-Hospital 8. Charges for Services-Solid Waste Fees 9. Other Charges for Services - - - 10. Fees 164,267 164,267 164,267 167,552 170,903 174,321 177,808 11. Rentals - - - 12. Dept. Revenue- Schools 119,942 60,207 60,207 61,411 62,639 63,892 65,170 13. Dept. Revenue- Libraries 14. Dept. Revenue- Cemeteries 5,350 4,100 4,100 4,182 4,266 4,351 4,438 15. Dept. Revenue- Recreation - - - 16. Other Departmental Revenue 276,947 262,600 262,600 267,852 273,209 278,673 284,247 17. Licenses/Permits 252,317 331,188 331,188 337,812 344,568 351,459 358,489 ===PAGE 21=== 18. Special Assessments 14,031 11,844 11,844 12,081 12,322 12,569 12,820 19. Fines and Forfeits 27,213 27,213 27,213 27,757 28,312 28,879 29,456 20. Investment Income 62,935 62,935 62,935 64,194 65,478 66,787 68,123 21. Medicaid Reimbursement - - - 22. Misc. Recurring - - - 23. Misc. Non- Recurring 213,699 212,699 212,699 216,952 221,292 225,717 230,232 TOTAL Local Receipts-Budget ① 3,066,991 3,065,991 3,115,991 3,186,919 3,259,480 3,333,714 3,409,658 Revenues- Local Receipts Town of Lunenburg Receipt Projections vs. Actual for FY20 FY2020 Projection FY2020 Dollar Percent Actual Increase Increase 1. Motor Vehicle Excise 1,671,640 1,813,251 141,611 8.47% 2a. Meals Excise 100,980 134,867 33,887 33.56% 2b. Room Excise - - 2c. Other Excise-Boat - - 3. Penalties/Interest on Taxes and Excises 156,022 154,669 (1,353) -0.87% 4. Payment In Lieu of Taxes 1,648 - (1,648) - 100.00% 5. Charges for Services-Water - 6. Charges for Services-Sewer - 7. Charges for Services-Hospital - 8. Charges for Services-Solid Waste Fees - 9. Other Charges for Services - - 10. Fees 164,267 165,998 1,731 1.05% 11. Rentals - - 12. Dept. Revenue-Schools 119,942 60,207 (59,735) -49.80% 13. Dept. Revenue-Libraries - 14. Dept. Revenue-Cemeteries 5,350 4,100 (1,250) -23.36% 15. Dept. Revenue-Recreation - - 16. Other Departmental Revenue 276,947 262,555 (14,392) -5.20% 17. Licenses/Permits 252,317 331,255 78,938 31.29% 18. Special Assessments 14,031 11,844 (2,187) -15.59% 19. Fines and Forfeits 27,213 37,183 9,970 36.64% 20. Investment Income 62,935 102,340 39,405 62.61% 21. Medicaid Reimbursement - - ===PAGE 22=== 22. Misc. Recurring - - 23. Misc. Non-Recurring 213,699 231,808 18,109 8.47% TOTAL Local Receipts- Budget ① 3,066,991 3,310,076 243,085 7.93% Revenues- Free Cash and Other Available Funds Revenue Projections FY20 FY21 FY22 FY23 FY24 FY25 FY26 Budget Budget Projected Projected Projected Projected Projected Free Cash Other Available Funds 1,298,232 858,356 969,243 - - - - 282,710 143,964 315,859 352,397 325,140 41,483 434,454 TOTAL Available Funds 1,580,942 1,002,320 1,285,102 352,397 325,140 41,483 434,454 • The FY22 Free Cash amount reflects the recommended amount to be appropriated to capital ($688,825), OPEB ($180,418), and the regular stabilization fund ($100,000). Other available funds includes the MSBA Reserve for Debt from Premiums ($60,540), the annual amount from the Artificial Turf Revolving fund ($44,318) to pay for the turf field, and funds from the Special Purpose Stabilization Fund ($211,000). This leaves a remaining balance of $834,942 in free cash. • A Financial Forecast is not supposed to project Free Cash for future years that a certified amount is not known. This forecast does not project using Free Cash as a revenue source for FY23-FY26 and will only use free cash as a last resort for the FY22 operating budget as free cash should only be used on one-time expenses or to put into reserves. Enterprise Funds • Revenues from Enterprise Funds are segregated from the general fund. These funds are self- supporting • Receipts = Projected Expenses plus indirect costs budgeted in the general fund • Sewer, Water, Solid Waste, and Public Access • Forecast includes indirect costs in revenue projections such as health insurance, retirement costs for enterprise employees, and associated enterprise debt payments. Expenditures • Forecast uses a conservative approach • Looks at actual expenditures from previous years for historical trends • Uses the current budget year as the base • Personnel costs: Covers obligations in collective bargaining contracts, employment contracts, and approved wage and classification plans for non-union personnel. • Provides a 2% COLA scenario if all collective bargaining units whose contracts are up for renewal, expiring employment agreements, and expiring COLA for non-union employees. This will indicate the net effect. • Expenses: Look at annually, historical expenditures, forecast conservatively and maintains current programs. ===PAGE 23=== Expenditure Categories • Forecast for FY23-FY26 provides for contractual increases for existing staff with the exception of added staff for Police and Fire; provides for 8% increase in Health Insurance costs, 10% increase in Retirement Assessment, 5% increase in other Insurance costs, provides for a 2.5% increase in Schools; increases the Pavement Management Plan by $50K each year; provides for between $90K-$120K for Stormwater each year based on MS4 requirements; assumes no new debt; increases the FY22 $100K for Stabilization by 2.5% each year, $100K into OPEB each year, and increases the $600K in FY22 by 2.5% for each future year for Capital. • Personnel and expenses related to providing the same programs and staffing levels which includes contractual obligations with the exception of long term Police and Fire Staffing Plans. Provides scenario for long term staffing plan for LPS • Education costs • Debt Service (General Fund, Enterprise Funds, Temp. Interest) • Capital • Group health/life insurance, retirement, general insurance • Amounts to be raised: Tax Title, Overlay, Cherry Sheet Offsets, Prior year deficits, snow and ice deficits, court judgments • State Assessments • Reserve Fund, Special Articles, transfers to stabilization, special purpose stabilization, OPEB Expenditure Assumptions • Forecast document: o Adheres to adopted financial policies • Deposits funds into the Stabilization Fund to maintain required balance • Deposits funds into the OPEB Trust Fund per policy • Forecast for FY22 reflects target budget figures that departments were asked to meet when developing their budget • State Assessments and Cherry Sheet Offsets level funded for FY22 and assumes 2.5% increase for FY23-26 • Level funds the Tax Title Cost $24,000 for FY22 and increases by 2% in FY23-FY26. • Funds the Overlay Account in FY22 at $120,000 and increases the Overlay Account by $10K each subsequent year of the forecast based on historical data • Assumes level funding the Reserve Account • Forecast for FY22 provides for contractual increases for existing staff with the exception of added staff for Police and Fire; certain known costs (i.e. Worcester County Retirement), provides for 3% increase in active Health Insurance and 5% for retiree health insurance costs, 2% increase in Retirement Assessment, includes a 5% increase in Other Insurance costs, provides for a 2.5% increase in Schools; increases the Pavement Management Plan by $50K; provides for $100K for Stormwater; level funds the Reserve Accounts; level funds departmental expense accounts; assumes no new debt; provides for $600K in tax revenues for Capital, $180,418 for OPEB in FY22, and $100,000 in the regular Stabilization account. Currently does not deposit funds into Special Purpose Fund. ===PAGE 24=== • Forecast for FY23-FY26 provides for contractual increases for existing staff with the exception of added staff for Police and Fire; provides for 8% increase in Health Insurance costs, 10% increase in Retirement Assessment, 5% increase in other Insurance costs, provides for a 2.5% increase in Schools; increases the Pavement Management Plan by $50K each year; provides for between $90K-$120K for Stormwater each year based on MS4 requirements; assumes no new debt; increases the FY22 $100K for Stabilization by 2.5% each year, $100K into OPEB each year, and increases the $600K in FY22 by 2.5% for each future year for Capital. FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Expenditures General Government 1,607,284 1,676,186 1,715,392 1,770,410 1,856,191 2,005,829 Public Safety 3,625,503 3,854,868 4,098,106 4,261,419 4,439,384 4,623,574 Education 22,029,972 22,580,279 23,144,344 23,722,510 24,315,131 24,922,567 Public Works 1,810,104 1,813,574 1,910,623 1,987,779 2,101,995 2,158,040 Facilities & Buildings 753,579 754,265 756,313 769,580 783,245 799,153 Recycling Program 218,634 249,534 261,632 274,327 287,649 301,629 Health & Sanitation 83,539 89,540 92,553 95,690 98,955 102,354 Library 435,044 418,355 447,916 464,930 482,672 482,672 Public Assistance 266,242 273,123 277,995 281,946 285,517 289,193 Debt Service 4,699,521 4,562,594 4,509,623 3,515,757 2,939,910 2,547,440 General Government Unclassified 3,159,192 3,469,059 3,714,093 3,978,611 4,264,201 4,572,581 Central Purchasing 56,280 56,280 57,406 58,554 59,725 60,919 Other Amounts Raised 1,841,213 1,871,783 2,040,408 2,224,481 2,425,538 2,650,561 State Assessments 1,036,576 1,065,287 1,091,919 1,119,217 1,147,198 1,175,878 Free Cash/Other Financing Uses 2,046,600 1,780,243 1,741,361 1,781,874 1,823,391 1,863,769 Total Expenditures $43,669,284 $44,514,969 $45,859,684 $46,307,084 $47,310,701 $48,556,161 ===PAGE 25=== Expenditures-Debt Town of Lunenburg Debt FY2021 Budget FY2022 FY2023 FY2024 FY2025 FY2026 Issue Date Projected Projected Projected Projected Projected Total General Fund Regular Debt $507,123.56 $492,914.02 $455,012.39 $331,110.15 $314,208.65 $148,739.74 Total General Fund Excludable Debt $3,387,830.58 $3,363,591.91 $3,366,433.55 $2,537,672.52 $2,313,902.52 $2,213,677.52 Total General Fund Short-term Interest $ - $ - $ - $ - $ - $ - Total Sewer Debt $800,201.18 $702,691.70 $685,558.29 $645,143.85 $310,433.44 $183,792.63 Grand Total Debt Service $4,695,155.32 $4,559,197.63 $4,507,004.23 $3,513,926.52 $2,938,544.61 $2,546,209.89 Premiums/MSBA Reimbursable Excludable Debt $535,051.19 $534,779.55 $534,501.26 $59,968.64 $4.19 $ - Net Excludable Debt - Tax Levy - DE1 $2,852,779.39 $2,828,812.36 $2,831,932.29 $2,477,703.88 $2,313,898.33 $2,213,677.52 Regular Debt Administrative Fees $237.40 $211.51 $185.10 158.15 $ 130.6 6 $ 102.6 2 Sewer Debt Administrative Fees $4,128.72 $3,184.46 $2,434.03 $1,672.43 $1,234.72 $1,127.85 Transfer from Sewer Enterprise - Sewer Debt Service $804,329.90 $705,876.16 $687,992.32 $646,816.28 $311,668.16 $184,920.48 Transfer from Septic Receipts Reserved Meadow Woods Water Betterment Revenue $55,837.50 $54,837.50 $58,837.50 $57,587.50 $56,337.50 $55,087.50 Transfer from Artificial Turf Revolving $46,473.00 $44,318.19 $42,134.74 $39,321.78 $41,478.43 $38,453.78 Net Regular Debt Service $405,050.46 $393,969.84 354,225.25 $234,359.02 $216,523.38 $55,301.08 % of Net Regular Debt to Levy (cap of 4% per Policy) 1.56% 1.46% 1.27% 0.81% 0.72% 0.18% Net Excludable Debt $2,852,779.39 $2,828,812.36 $2,831,932.29 $2,477,703.88 $2,313,898.33 $2,213,677.52 % of Excludable Debt to Total Levy (cap of 11% per Policy) 9.87% 9.49% 9.19% 7.87% 7.14% 6.63% ===PAGE 26=== % of Aggregate Debt Service Costs to Total Levy (cap of 14% per Policy) 11.28% 10.81% 10.34% 8.61% 7.81% 6.79% Five Year Forecast: Revenues vs. Expenditures FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Grand Total Revenues $45,300,572.81 $44,930,398.30 $45,288,330.37 $45,747,990.44 $46,374,043.15 $47,987,761.50 Grand Total Expenditures $45,300,572.81 $44,514,969.23 $45,859,684.06 $46,307,084.15 $47,310,700.75 $48,556,160.65 Total Surplus/(Shortfall) 0 415,429 (571,354) (559,094) (936,658) (568,399) Debt Capacity FY2022 Projected FY2023 Projected FY2024 Projected FY2025 Projected FY2026 Projected Net Regular Debt Service $393,969.84 $354,225.25 $234,359.02 $216,523.38 $55,301.08 % of Net Regular Debt to Levy (cap of 4% per Policy) 1.46% 1.27% 0.81% 0.72% 0.18% Net Excludable Debt $2,828,812.36 $2,831,932.29 $2,477,703.88 $2,313,898.33 $2,213,677.52 % of Excludable Debt to Total Levy (cap of 11% per Policy) 9.49% 9.19% 7.87% 7.14% 6.63% % of Aggregate Debt Service Costs to Total Levy (cap of 14% per Policy) 10.81% 10.34% 8.61% 7.81% 6.79% Levy Limit w/o Debt Exclusions $26,975,148.00 $27,968,100.00 $29,004,449.00 $30,085,279.00 $31,193,130.00 Levy Limit w/ Debt Exclusions $29,803,960.36 $30,800,032.29 $31,482,152.88 $32,399,177.33 $33,406,807.52 Max Net Regular Debt (4%) $1,079,005.92 $1,118,724.00 $1,160,177.96 $1,203,411.16 $1,247,725.20 Max Net Excludable Debt (11%) $3,278,435.64 $3,388,003.55 $3,463,036.82 $3,563,909.51 $3,674,748.83 Max Aggregate Debt (14%) $4,172,554.45 $4,312,004.52 $4,407,501.40 $ ,535,884.8 3 $4,676,953.05 Annual Debt Capacity Reg. $685,036.08 $764,498.75 $925,818.94 $986,887.78 $1,192,424.12 Annual Debt Capacity Excludable $449,623.28 $556,071.26 $985,332.94 $1,250,011.18 $1,461,071.31 Annual Debt Capacity Agg. $949,772.25 $1,125,846.98 $1,695,438.50 $2,005,463.12 $2,407,974.45 ===PAGE 27=== Impact of 2% COLA on expiring Agreements for Union, Non-Union and Employees with Employment Agreements School Five Staffing Plan Expenditures The Proposed Five Year Staffing Plan for the School includes an additional $1,044,080 in FY22, an incremental amount of $555,680 in FY23, an incremental amount of $297,120 in FY24, an incremental $288,009 in FY25, and an incremental $550,369 in FY26. This carries forward all associated costs for any new positions in the five year staffing plan, including health insurance costs at 2.5% increase. This scenario is based on these amounts being on top of the projected 2.5% each year of the forecast. Net Effect of LPS Staffing Plan Financial Impact Analysis 2% 2% 2% 2% 2% (Excludes schools and other negotiated benefits in a CBA) FY2022 Projected FY2023 Projected FY2024 Projected FY2025 Projected FY2026 Projected General Fund: Employees with Employment Contracts $6,745 $6,880 $7,017 $7,158 $7,301 Clerical Contract (expires 6/30/21) $13,876 $14,154 $14,391 $14,623 $14,820 Fire Contract (expires 6/30/21) $13,947 $14,226 $16,268 $16,756 $17,259 DPW Contract (expires 6/30/21) $9,512 $9,702 $9,896 $10,094 $10,296 Police Contract (expires 6/30/22) $31,089 $31,711 $32,345 $32,992 Non-union Employees (expires 6/30/22) $15,563 $15,875 $16,192 $16,516 TOTAL GF Financial Impact of COLA $44,080 $91,614 $95,158 $97,168 $99,183 Cost to Fund First Year of COLA $44,080 $46,652 $30,659 $17,252 $49,508 Enterprise Funds: PEG Non-Union Employee (expires 6/30/22) $944 $963 $983 $1,002 Sewer Non-Union Employees (expires 6/30/22) $1,349 $1,376 $1,404 $1,432 TOTAL Enterprise Financial Impact of COLA $2,294 $2,340 $2,386 $2,434 FY2021 Actual Per Recap FY2022 FY2023 FY2024 FY2025 FY2026 Projected Projected Projected Projected Projected EDUCATION Lunenburg Public Schools 21,123,602.00 22,695,772.05 23,818,846.35 24,711,437.51 25,617,232.45 26,808,032.26 Curriculum Update - Non-Recurring 17,686.00 17,686.00 17,686.00 17,686.00 17,686.00 17,686.00 Monty Tech Assessment 888,684.00 910,901.10 933,673.63 957,015.47 980,940.85 1,005,464.38 Total Education 22,029,972.00 23,624,359.15 24,770,205.98 25,686,138.98 26,615,859.30 27,831,182.64 Summary of Projected Revenues and Expenditures FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Financial Impact of LPS Staffing Plan Grand Total Revenues $45,300,572.81 $44,930,398.30 $45,288,330.37 $45,747,990.44 $46,374,043.15 $47,987,761.50 Grand Total Expenditures $45,300,572.81 $45,559,049.23 $47,485,546.06 $48,270,712.70 $49,611,429.01 $51,464,776.12 Total Surplus/(Shortfall) 0 (628,651) (2,197,216) (2,522,722) (3,237,386) (3,477,015) ===PAGE 28=== Forecast Conclusions  Indicates deficits in Fiscal Years 23-26. This is largely due to the fact that the Revenue projections for FY23- FY26 does not assume the use of Free Cash but has expenditures on the Expenditure projections that are annually offset by the use of Free Cash.  Continue to review a long term staffing plan for the School to achieve their intended results.  Review Debt Schedule to look at funding scenarios for proposed TCP Building project Forecast Next Steps • Continued discussion of Assumptions and Scenarios • Firm up Revenue Estimates for FY22 when receive the Governor’s FY22 Proposed Budget • Receive insurance rate ranges at end of January and renewals mid-February • Town Manager work with Superintendent on budget that is ultimately approved by School Committee • Monty Tech Assessment mid-March • Currently reviewing FY22 Budget submissions o Town Manager’s Recommendation –February 11, 2021 o BOS & FinCom Review, February – March 2021 o Annual Town Meeting- May 1, 2021 Mr. Alonzo thanked Ms. Lemieux for a very thorough presentation. Ms. Adams wondered about how school personnel and school needs would be affected by the pandemic. School Supt. Burnham stated they will review the plan and every year to review priorities. Most things stayed the same but they have moved up the request for a social worker for the district. We had identified the need for professional to better support the social and emotional needs of the students. Covid-19 conditions have highlighted these needs. We will see if there are any new mandates from the state. Overall the five year staffing plan is dynamic; the needs of students shift each year. We were able to fund positions on the plan with CARES Act grant funds to better support student needs. TOWN MANAGER REPORT AND COVID-19 UPDATE Announcement on Existing Vacancies: The following is a list of vacancies on the following committees:  Architectural Preservation District Commission (1 vacancy)  Cultural Council (1 vacancy)  Historical Commission (1 vacancy)  TCP Building Design Committee (1 vacancy appointed by Select Board and Town Moderator for member at large)  Zoning Board of Appeals (1 Associate vacancy)  By-Law Review Committee (4 vacancies)  Senior Tax Work Off Program Committee ( 1 vacancy) FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Financial Impact of COLA Increase 19,920 (27,614) (31,158) (33,168) (35,183) Total Surplus/(Shortfall) after COLA 0 (608,731) (2,224,830) (2,553,880) (3,270,553) (3,512,198) ===PAGE 29=== Interested persons can find application forms on the Town Website and completed forms can be sent to the Select Board's Office. Fuel Tank Project Update: The fuel tank was delivered and installed on Friday, January 15th. Meetings, Events and Other Announcements:  The School Committee, Conservation Commission, and the APDC have meetings on Zoom on Wednesday, January 20th at 7:00 p.m.  The Library Board of Trustees has a meeting on Zoom on Thursday, January 21st at 6:45 p.m.  The Agricultural Commission and the Historical Commission have meetings on Zoom on Thursday, January 21st at 7:00 p.m.  I will be attending the Finance Committee meeting on Thursday, January 21st at 7:00 p.m.  The Community Outreach Meeting for a proposed recreational marijuana business located at 88 Massachusetts Ave. Unit #1 will be held via Zoom on Thursday, February 4th at 7:00 PM. Due to the current guidelines for large gatherings, the meeting will be held online via a Zoom meeting ID# 5689610481 Password: GREENLEAF. To participate go to https://us02web.zoom.us/j/5689610481 If you would like to provide a comment or question before the meeting please send them via email at infoqreenleafbotanicals@qmail.com COVID-19 in Lunenburg: The Board of Health issued their weekly update and the cumulative laboratory confirmed number of COVID-19 cases reported to the Town is 475 as of January 15th and one death. The State report shows 447 as of January 12th. This is an increase of 57 cases from the previous week. COVID-19 in Massachusetts: As of January 7th there are 433,297 COVID-19 cases and 13,156 deaths and 12,064,398 patients have been tested to date by the MA State Public Health Laboratory, hospitals and commercial laboratories. PUBLIC COMMENT Dave Rodgers, Highland Street, requested the public access staff if they could improve the quality of the Zoom transmissions. He noted the report did not take into consideration for the TCP building or the Turkey Hill Middle School costs. He did not hear what our debt capacity could be increased by. Ms. Lemieux stated the debt increase will be shown on the website and it will show the capacity. Mr. Rodgers asked about the Flat Hill drainage project cost of $458,500.00 and stated he thought the original engineering for the installation was faulty. Upcoming Meetings Mr. Alonzo stated the Board meets again on February 2nd, 9th and 16th. ===PAGE 30=== Motion: T. Dwyer 2nd: M. Jeffreys To adjourn the meeting at 9:39 p.m. Vote: Mr. Marino-aye, Mr. Jeffreys- aye, Mr. Dwyer-aye, Ms. Adams- aye, Mr. Alonzo-aye Respectfully submitted, Elaine M. Peterson Executive Assistant to the Town Manager