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John Henshaw
Christopher Menard
David Passios
Jay Simeone
Lunenburg Finance Committee
October 8, 2020 Meeting
Location:
Present:
Zoom Virtual Meeting
Terrri Burchfield, Peter Beardmore, Dave Passios, John Henshaw, Jay
Simeone, Chris Menard, Heather Sroka
Absent:
1. Call to Order
Terri Burchfield, Chair, called the meeting to order at 7:00 PM and read the
COVID-19 / Zoom meeting advisory statement.
This meeting was recorded and is viewable on YouTube:
https://www.youtube.com/watch?v=iSOVTrqv66U
2. Public Comment
None from the Committee. None from the Public.
3. School Department Report
Dr. Kate Burnham and Michael Cassidy present a PowerPoint presentation that is
attached to these minutes. Presentation and Discussion can be found on the
YouTube Cannel from minute 3:00 - 1:20.
4. Town Manager
Heather Screen Shared her document
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Town $57,871
School $115,544
Police Officer $30,161
Fire Fighter $38,928
BOH Administrative Assistant $3,616 (being paid for by Covid Cares funds)
Cost of Additional PPE $9,000
Cleaning cost $24,000
Second half of the year IT costs $11,745
Total of Deferred Capital Planning $494,333 - this does not include the
$170,0000 trackless project. That is being paid for by Chapter 90 funds.
ADA PROW Improvements $27,000
OPEB Trust fund $110,000
State Assessments 45,931.00 more than it actually was.
That leaves $546,576.41 to be appropriated - Heather's recommendation is to
deposit it into the two different Stabilization Accounts. Regular stabilization and
Special Purpose Stabilization - which is for Capital Projects.
Terri asked Heather if there were articles at the STM that had costs associated
with them -
Heather Provided the following list -
Green Community Project costs $92,000
Right of First Refusal for property - purchase price is $50,000
The two union articles would be within budget and taken out of the salary reserve
account.
Jay - why is the money for the trackless coming out of the Chapter 90 funds?
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Chapter 90 allocation for this year was approximately $490,000.
Not an appropriation at Town Meeting
It is used to pay for road projects outside of the budget.
Rely on Chapter 90 funding for paving.
Have a budget for roads.
Karen Brochu -
Chapter 90 funds are seen as Grant funds - they are not part of the operating
budget at all.
The Town currently has a Pavement Management fund.
Peter -
Uneasy on Pavement Management path - we've made a pledge to increase the
annual funding yet there seems to be more money available than we need to pave
roads. Feeling like it's not washing.
Jay-
The $4M debt exclusion is already dedicated to the roads. How much of the
Chapter 90 funds do we use every year? Do we expend the full amount every
year?
Heather and Karen -
The funds roll over - but they would have to look back historically. Typically it
could be in the $300-400 range.
Peter -
Why and how was the decision made to purchase the Trackless System?
Heather and the DPW Director made the decision as it is an acceptable use of
Chapter 90 funding.
Jay-
Does not believe it has normally been used to purchase a piece of equipment.
Heather - not historically.
Terri -comments on how Chapter 90 funds work
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Terri - who has the authority to make this call. The Chapter 90 funds are not
voted on during Town Meeting. Don't know what a trackless is. Has no idea of
the timing of making this kind of purchase. Interesting question regarding
procedures. Senator Tran - grant funds could have been used on the trackless.
Are we losing anything by having diverted those funds - she is not as concerned
with spending the funds.
Karen - can look up how much money is in Chapter 90 funds.
Peter - did not understand that this is a revolving fund that is managed
separately from the Town Budget. Would like some oversight on this fund.
Chris - additonal IT costs are for what?
Heater - the Remote Meeting Coordinator.
Peter - Town Money not School Department money for the Remote Meeting
Coordinator.
Dave - Trackless Discussion - statement made there is a process to determine
the cost to repair the current piece of equipment.
Heather - cannot remember - would have to check.
Dave - would like historical knowledge on how this went down.
Articles for STM - Green Community Street Light Project funding - what
funding source for this project.
Heather - this has not been discussed by the BOS yet. Would have to raise and
appropriate the funds in the budget.
Chris - when we go through the budget process do we usually present the
amounts in all the other revolving funds, Chapter funds?
Heather -No
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certified number for new growth.
Heather provided a historical accounting on the spreadsheet.
Heather
Deferred Capital Planning Update 1:56 - 2:21
Heather provided a review of the Capital Projects that were deferred from last
year's ATM.
Chris - Could some of the building projects be deferred to Spring?
Some discussion around the $12,000 Ritter Kitchen Remodel Project - if it
should be done with the TCP timeline.
Heather provided a brief description of the CP projects. Several clarifying
questions around the other projects.
Jim Marino - Chapter 90 funds Grant Money and can be used for this type of
equipment. The Chapter 90 funds are better used for the preparation of
pavement. The repair of other piece of equipment would not be cost effective.
He sensed there was a tone of conspiracy in the process of this purchase.
Chris - can Chapter 90 be used for paving parking lots.
Jim - if you can get approval from the State.
Peter - does not question the legality. Do you recall ever purchasing anything
over $100,000 without ATM or finance committee approval?
Jim - he cannot recall. However, Chapter 90 funds can be used on this purchase.
Money was spent on a piece of equipment for road use.
Chris - a budget should be put together with a holistic view.
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different revenue source for it. That is why it is being called out this evening.
Dave - Capital Planning has already had a conversation about alternative funding
for these requests. Going to take this into consideration next year when they start
the process next year.
Discussion about past Capital Planning Projects and alternate funding sources.
Terri - any interest in reviewing the Warrant Articles - 2:21 - 2:40
Chris - interested in going over the TIF Agreement
Heather -
10 Year Tax Increment Funding Agreement
Bright Farms
Greenhouse behind Walmart
Initial investment will be $10M in the building
Review what a TIF is and the monies involved in this particular TIF
Voting would be on the discount.
Chris - is there any Town Policy regarding TIF Agreements. When he heard of
this project he had not heard about the TIF. This is a large amount to benefit a
big company when many people in town are struggling and on the heals to the
services not rendered discussions for the bus contract.
Heather - we can develop an agreement that would be more beneficial to the
Town and the people in Lunenburg.
Dave - this went into the BOS meeting as a 10 TIF - Selectment Jeffries asked for
an 8 year with a net revenue.
Chris - is there a way to structure the warrant article to have a cap on the limit.
He doesn't see why we are supporting this TIF agreement. However, he does
support the business coming into town.
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going.
Peter- could this TIF agreement make or break the project from happening. This
is good development. It does not tax the Town services.
More discussion around this project.
Terri - should we move on to other warrant articles or wait until next week.
Chris - asked if there were transfer of land warrant articles?
Discussion on the Transfer of land warrant articles and the cost to the town.
Dave - would like to hear if Dave Blatt has any new information on the Street
Lights project.
Committee Reports
Dave - TCP Committee report. Extremely productive prioritized usage of the
building. Very high on the list was the School Department use of the building.
Very low on the list Boys and Girls Club. Got to a point that there were so many
uses for the building it was bursting at the seams. This was a big step to move
the process forward
Peter - School Committee - met last night. Debt study progress has been made.
Heather shared the Vertex information. Going to begin to get it all on one
spreadsheet. Perhaps at the meeting following the Public Hearing he can provide
a presentation.
Minutes -
June 11th - John motion to approve the minutes Jay seconded, Peter, Jay, John
and Terri yes, Chris and Heather abstained.
August 27th - Chris motion to approve the minutes Peter seconded - All in favor
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Some discussion around the policy.
Dave Rogers - 82 Highland Street-
Chapter 90 - 400M bond for the roads because we used the Chapter 90 monies
for other things. In good shape but cautions not to spend Chapter 90 monies or
it could change.
Chromebooks for schools - could COVID Cares money be used for this purchase.
Would like someone to look into that.
Mr. Cassidy - COVID related unemployment cost - what is that? Would like a
description of that. Terri responded.
Looks forward to the Debt Report by Mr. Beardmore.
Thank you for all that you do! More and more important.
Terri - next week public forum on the warrant articles.
John motion to adjourn. Peter seconded. All in favor. 10 p.m.