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Christopher Menard
David Passios
Jay Simeone
Evan Watters
Lunenburg Finance Committee
January 14, 2021
Location:
Present:
Absent:
Zoom Virtual Meeting
Terrri Burchfield, Peter Beardmore Dave Passios, Jay Simeone, Chris
Menard, Evan Watters
Heather Sroka
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=jSOVTrqv66U6:30
2. Chair Report
Terri Email received from Elaine regarding the write up for the Town Warrant.
All set. No comments from the members of the FinCom.
3. Public Comment
None
4. Presentation Regarding FinCom Project Recommendations
Chris - we spoke about this regarding large ticket items, such as building
projects, have a huge financial impact.
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some extent through that process document the decisions and make this avalable
to the community.
Attached is the presentation provided to FinCom by Chris Menard.
Peter - thinks these are important questions to ask. Is this essentially a check list
or is this a formula that drives a recommend/don't recommend decision?
Chris - The design committee is looking at the usage and size of the TCP Building
Project. He also shared this presentation with Greg Roy as Chair of the Building
Project Committee.
Terri - her take as a first look - type of information that is good to have. Without
this information harder to make a recommendation. This type of information it
makes it easier to provide a recommendation. It organizes the information for
her.
Peter - with regard to a check list - this is good to have someone's perspective.
Somewhat concerned with setting ourselves up for the TCP project will not be
good enough. Individually we'll have to make assessments on the Town's needs
and how this particular plan addresses those needs. Doesn't think in the next few
months the FinCom will be in a position to say here are the measurements used
to figure that out.
Chris - I think we used the term rubric and he's not sure that's exactly what we
were looking for. That's not really the intent. There may be some real deal
breakers in this project. Presenting to the public who may not be watching every
meeting it summarizes things with the ability to go into TM with more
information.
Terri - Seems that the types of information in the documents is what people will
be looking for at TM. Did we miss anything? Asked Dave if we were looking for a
recommendation regarding TCP at this Town Meeting.
Dave - most definitely.
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Dave - thinks well have a figure in reb. Plan to have community outreach soon
atter.
Peter - have to get moving for a May Town Meeting and a debt exclusion on the
ballot. Debt analysis fell off the radar when John resigned and Peter had
personal issues to deal with. The TM will be presenting a five -year forecast at the
next meeting. Some of Peter's preliminary work on the debt was the cost analysis
against the last year's five-year forecast. He's hoping we can look at the cost of
this and the upcoming THES cost in debt service and how that fits into the fiscal
policy. Here's how it might look.
Chris - continues his presentation with Impact on Other Buildings
slide.
Peter - Any department that is going to take part in the maintenance of the
building should be signed up in advance and made aware of their obligations.
Particularly with the TCP building and different department uses. What are the
carrying costs of the buildings we're vacating? Are we going to do the Vertex
projects outlines on those buildings? Are we committed from a Capital
standpoint?
Terri - Any other questions or comments?
Chris - to Heather L.
Is anything in the presentation to difficult to obtain or ask in the timeframe from
a analysis standpoint?
Heather L. - Time it takes to gather the information. She has to review it more -
only had the first slide and everything tonight is new.
Terri - This is the type of information people are going to be looking for at TM to
make a yay or nay vote. Gathering this and making it available would be helpful.
Peter - One area of concern he has - is there adequate time to do what needs to
be done to hear from and discuss prior to Town Meeting - 31/2 months away
when we have the budget. We're going to need the time.
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either be approved or not. If it's approved it will move forward if it's not
approved his guess is they go back to the drawing board.
Heather - agrees with what Dave said. Cost estimation is going to play a huge
part on this time line. Debt exclusion or in the operating budget. Trying to get
the cost estimate with a palpable number for TM.
Terri - if there is not debt exclusion there would be no need for a TM vote or a
ballot question vote.
Peter - Are we seriously considering that this project would come out of the
operating budget and not a Debt Exclusion? In his mind this has been a debt
exclusion. The yes/no decision is the financing of this project. He assumes this a
fairly sizable $. There is a lot to do between now and May if a Debt Exclusion. If
not be need to think of the budgetary etfects.
Terri - that's why the debt analysis part is so important. It. will be interesting to
see the $ figures.
Policy in place for debt and borrowing. The debt cannot exceed a certain
percentage of the Town Expenditures.
Heather L - 4% for net regular debt
11% for excludable
the aggregate of the two can be no more than 14%
FY21 we're at
1.56% of 4%
9.7% of 11%
11.27% of 14%
We need the TCP Number $$
5. Revolving Accounts and Special Revenue Funds
Transparency around the Revolving and Special Revenue Funds
Is there any way to present that with the sheet the State puts out. The
Department of Revenue funds that are allowed per the statutes.
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Terri - not sure this goes hand in hand.
Chris- would be nice if there was description of what it is for, who controls the
fund, how it's funded... It's provides a bigger picture of the entire budget. In the
Private Sector this would be provided.
Peter - in addition to those columns on the spreadsheet - what department
controls it, what's it going to be used for in the coming year in a budget review
and if that changes who has the authority to change it. What is the criteria?
Terri - where is the DLS form? In terms of the presentation of it - mostly
whether or not funding can be used for salaries? The MMA folder?
Much more information based - what funds are available, what department it
falls under..
Karen - on the DLS chart you're looking at now - there are accounts voted on as
well spending authorization for those funds. She understands exactly what you're
looking for. It might take her a while to get there but she fully understands this
project. Some of what you're looking for you'll see in the budget process.
Terri - It's all helpful to see in the one place. The Library would come in and say
this is our budget and these are some of the sources of funds. This is one of the
things that Michelle Walton was trying to get when she was on the FinCom.
Chris - Having the information that Karen is very familiar with on hand.
Karen - will work on this for the FinCom.
Terri - This would be good for the committee that is turning over regularly.
6. Town Manager/Finance Report
Heather L. - Updates since December 10th -
Couple of pieces of good news - Health Renewal Rates for Active Employees is
3%. Loss claims are good.
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Meeting with Legislators Tuesday night at Selectboard Meeting. Introductory
meeting - have two new Legislators representing Lunenburg - Senator Cronin
and Rep. Kushmerek. They're cued in on all the bond bills. Heather has already
met individually with both.
Chris - CARES Act Money - with the new date requirement has the amount
increased?
Heather L. - The amount is the same. We can spend that amount. We're
submitting reimbursements for the CARES and FEMA. Now we have until
December 31, 2021.
Chris - Approximately how much money is left in the CARES Act?
Heather L. - between $500,000 - 600,000 is left. It can only be used for
unbudgeted expenses. Anything Covid related that we anticipate for the next
fiscal year we won't budget for.
Peter - The upcoming Budget - he read that the Town of Methuen - refunding
the licensing fees for bars and restaurants for the coming year. Given the current
stress they've been under perhaps if there is a few dollars to spare we can look to
doing whatever we can to relieve highly stressed sectors in Town.
Concern about the Budget timeline and the TCP Building Project. The
Superintendent Published on the School Website her budget timeline for this
year and comparison compared to her - we are running into a calendar issue that
we're going to be looking to approve a budget that includes a school budget that
hasn't been endorsed by the School Committee. Can Heather have a conversation
with the Superintendent so we can know what to expect.
At Select Board Meeting - Town Manager reported Fuel Tank Project at DPW
nearing completion - $80,000 of unspent capital on that project. It at a future
meeting Heather L. could report back on that project.
Heather - We spent down the earmark first - leaving remaining funds for the
capital projects. Right now given the information we have there is about
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Peter - What was the original budgeted amount for that and what was the
earmark?
Heather L. - The earmark was $165,000 and the original budgeted amount was
$110,000 first capital and $220,000 for the seconded capital. Part of the
increase was the permitted and the design work.
Evan - Helping out the bars and restaurants - would that fall under CARES Act
Monies?
Peter - Don't think we could use CARES Act that way.
Chris - Question on the Flat Hill Culvert?
Heather L. - June Town Meeting voted for the design work and we have to go for
a full design for the MASS DOT Design fee and then it can go out to bid. Working
with the designer to fast track that out to bid in the Spring for a July 1 summer
start. They're putting together a small bridge grant application. MASS DOT
recommended we put that application together to be ready when the amount is
announced.
Chris - Do you see and unforeseen costs associated with the expedited work on
that?
Heather L. - We wouldn't be able to start the construction until the funding is in
place. Would need an appropriation in hand. Took Pleasant Street Bridge a long
time to get the small bridge grant. However, given the state of this project this
should move faster.
Dave - Permitting and licensing fees. He believes this was an agenda item at a
past Select Board meeting and they voted not to reduce the fees. Is that correct?
Heather L. - They did - renewals come up in December for annual licenses and
they did vote not to waive those. She tried to work with business who did request
the waiver.
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Abstain - Jay and Even (because he wasn't present)
8. Committee Reports -
Peter -
School Committee -
Move to live streaming (synchronized learning) - entered into another MOU with
the LEA which means during the four days of instruction Cohorts at home will
stream into the classroom - beginning in February. Happening in the HS and on
a limited basis the MS. Modification to calendar for Professional Development.
CARES Act money on in class equipment instrumental. Compliance issue
mandated a minimal number of hours instructional time.
Dave -
Parks -
Policies that do not currently exist. Field Use policies as well. Need to be
proactive as opposed to reactive.
Working on a decision regarding hunting on parks property - by mid-February.
Marshall Park Discussion - $50,000 Capital Plan Request - which is low on the
priority list. Looking to get funding for the master plan.
Workshop with the Skate Park in January.
Capital Planning Committee -
Final Prioritization - Vertex Projects that made it into the top 20 are envelope
projects to help stabilize the buildings for the short term.
Brief Policy Discussion about cap on funding. Intend to continue at another
meeting.
Made a public comment at that meeting - a project withdrawn from DPW -
parking lot for the senior center - $125,000 between the building and
playground. Pulled to provide a more comprehensive plan - in the new analysis
there is barely enough room to get ½ dozen spaces in that area. Before we put a
skatepark in between the school and the playground we have to consider moving
the playground closer to the school to provide the Senior Center with the parking
that it needs.
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Peter - is the expectation that that space will be left as a kitchen and not
changed? What is the thinking?
Dave - the infrastructure will be upgraded while the rest of the building - still
held aside as a commercial kitchen.
Heather L. - the parking lot project for the Senior Center will be noted in the
presentation.
Dave - the Capital Planning Committee also bumped 2 or 3 projects to the
bottom of the list or off the list they believed it should be absorbed in the facilities
budget - care and maintenance.
Evan - Is the skate park set to go between TCP and the Playground?
Dave - hopes the workshop meeting decides that the Skate Park will go on
Marshall Park as that is the only location the Parks Department will support it.
Peter - His understanding that the Board of Selectman voted to pledge that
property to the Skate Park and that the Skate Park has been steadily raising funds
with that specific site in mind. Is this the Board of Selectman's decision?
Heather L. - The Skate Park Group came to the Select Board meeting and based
on different factors made the vote to allow them to proceed with that plot of land
in mind.
Terri - there was a much smaller foot print at that time.
Dave - Has the letter from the Board of Selectman 10/10/2018
Voted to support it on that piece of property April 10, 2018 on the Passios
Property. Mismanagement of that piece of property. He has personally
supported this project with this piece of property in mind.
Chris - IS the demolition of the Primary School a project on the Capital Planning
and is it coming forward at this time?
Dave/Heather - No for either.
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Chris - Bylaws should be updated they're getting in the way of moving forward.
There is no need to preserve a building that has no value. We need to do that
quickly.
Peter - When we voted for the Architectural Preservation District - did we ever
think we would be creating a log jam for ourselves the same voting body. These
are all effectively 50plus one votes and a bylaw that we created.
Jay - an article was brought to Town Meeting for $400,000 demolition that was
voted down.
Some discussion around why that was.
Green Communities -
Heather - the current commentative grant projects. All projects completed and
annual report completed by February 12th, Not enough time to do that. This
year is the first year to submit grant submissions into 2 rounds - now and
October.
Evan - what happens if we aren't awarded the grants?
Heather - we would have to pay for the cost of conversion.
Discussion around Street Light Conversion -
Town Meeting vote would be required if an appropriation was needed to convert
the street lights if we do not get the grant funding.
9. Fiscal Policies
Terri - If FinCom doesn't receive something 48 hours in advance we can't post
the materials for the Budget season and so that people can review materials.
Would like to attach to the upcoming agendas so the public can view the
documents.
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Dave - He agrees - having emails come through at 3:00 the day of the meeting
leaves no time for reviewing.
Heather - will make that known to departments.
Terri - Would be helpful for the warrant article portion of the Public Hearing
that we would look at a Fiscal Policy that we would not be making any
recommendations without having the information prior to the meeting. 48 hours
is going to be a thing this budget season.
Going to meet on the 28th? Leave it on the calendar and decide next week.
Peter - Calendar question for Heather - when does the warrant close and when
will the FinCom Report be required?
Heather L. - March 15th at 4:00 p.m.
Terri - Is that when the Finance Committee report is due?
Chris - Finance Committee Report to SB office March 30th.
Terri - We would have voted on March 25th for all of our recommendations.
Public Comment -
Chris Calling Dave who couldn't speak
Dave Rodgers, Highland Street
Dave Passios - with regard to Marshall Park - please ensure that we use money to
survey the park.
Practical Politics - revolving funds - guarantees various monies - keep an eye on
Operating Budget vs. Debt Exclusion regarding TCP
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When we do a project we don t allocate monies tor certain things - turniture
fixtures, moving, etc. hoping will receive as close to a figure as possible.
Operating cost - average? Present a per square foot allocation.
Mr. Rodgers asked Heather L. - What is a realistic number for debt for a project
like this? What interest rate today? If we borrowed 20M today the market is
what % - what is the carry rate for 30 years?
Thank you for allowing him the opportunity.
Happy New Year!
Motion to Adjourn - Motion made by Dave, seconded by Peter unanimous
9:03 p.m.