===OCR macOS Vision===
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Christopher Menard
David Passios
Jay Simeone
Evan Watters
Lunenburg Finance Committee
February 11, 2021
Location:
Present:
Zoom Virtual Meeting
Terrri Burchfield, Peter Beardmore Dave Passios, Jay Simeone, Chris
Menard, Evan Watters, 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=iSOVTrqv66U6:30
2. Chair Report
No report.
3. Public Comment
Peter - Had a conversation with someone who was quite frustrated to connect
during Public Comment. He understands there have been some streaming
problems with PACC in the past several weeks. Can this be addressed?
Heather L. - The problem has been identified and addressed. Worked it out
with the server.
Heather S. - When was it fixed? Watching the boys basketball game live and it
was very poor quality.
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Highlights -
Would like to start a Health Insurance Stabilization Fund for any potential
increases in the FY23
Target Budget -
Certified Free Cash was NOT Used On Operating Budget
Property Taxes - $280,590 - 2 2% increase
State Aid - Based on FY 21 State Aid Funds approved in December 2020
Local Receipts - $50,000 increase estimated for Motor Vehicle Excise Tax
Other Funds - Other sources similar to the previous fiscal year sources.
Expenditure Side -
Includes all known contractual increases and level funded other expense
categories with some exceptions as can be seen in the presentation.
Assumptions and Unknowns -
Revenues - State Aid and Governor's Budget - 17% increase
New Growth - Assumes $280,590
Expenditures -
Cherry Sheet
Health Insurance Rate
Liability and WC Insurance
MontyTech Assessment - assumes 2.5% increase
Solid Waste and Recycling Program - Assumes 15% increase - new contract will
begin July 1st.
Snow and ice deficit for FY21 - hope to cover deficit with interdepartmental
transfer - but will use free cash if necessary.
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Total -
$44,949,784
FY 2022 - Target Budget Highlights
Police - $35K for additional Patrol Officer
Fire - $81K for additional Career Firefighter
DPW - $50K for Pavement Management
Public School - $528 for a 2.5% increase
MontyTech Assessment - $22K for a 2.5% increase
Worcester Reg. Retirement - $150K or 10% increase
Health Insurance - $179K 3% rate increase for active and 5% rate increase for
town and school retirees
Solid Waste/Recycling Program - $30K- 15% increase
FY 2022 - Above Budget Highlights (more details on the attached presentation)
$23K - General Government
$15K - Police
$22K - Fire
$43K - Facilities
$24K - DPW
$24K - Library
$154K - Lunenburg Public School
FY 2022 - Non-Discretionary Debt Service
Includes - tax outside 2 2/1%, water, sewer, MSBA School
Total - $4, 562,594
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FY 2022 Expenditures -
Capital Articles -
Prior Year Expenses-
OBEB Liability -
Stabilization Fund -
Special Purpose SF -
Total
$1,499,825
$
626
$ 180,418
$ 100,000
$
$1,780,869
FY 2022 Preliminary Budget -
Includes One Additional Police Officer
Includes One Additional Fire Fighter
Restores Facilities position eliminated in FY20
Adds 8 hours for the Assistant Town Clerk
Includes Seasonal Help for the Cemetery
Includes an Education and Enforcement Coordinator - entirely funded by grants
Includes a PT Minutes Clerk Position
Exceeds the LPS Priority needs identified in the Superintendent's 3.23% budget
Leaves $494K unappropriated balance
Leaves $834K of Free Cash
Budget Calendar -
FinCom Department Presentations
House Ways and Means Budget, end of April
Senate Budget, end of May
Town Meeting, May 1st
Town Election, May 15th
State Budget, Conference Committee by June 30th
State Aid Typically finalized by July
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Chris - On the Health Insurance - why is it so much lower?
Heather L. — rates are based on the loss claims - good loss claim history. MIIA
is a health trust - they would pull any large claims out of the calculations. We are
currently participating in the post 65 program - providing a 2% discount - a one
time one year discount. Looking to sign more people on to the vision plan which
will provide an additional discount.
Chris - Education and Enforcement Coordinator grant funded - is that a one-
year grant?
Heather L. - We receive this grant every year. Previously have used it for
recycling bins but can use it on education and enforcement.
Chris - With the Capital Plan are you recommending to go lower in priority?
Heather L. - Last year our MontyTech assessment was shocking - this year it
looks pretty stable and accurate. There are a few unknown factors like that but
her recommendation would be to put more funds toward the Capital Projects.
Peter - Having a hard time following the Vision Plan and the incentive. Why
does this seem like a deal too good to be true?
Heather L. - No brainer in her opinion. Required to go through the process -
they have representatives from all the bargaining units bringing it back to their
groups.
Discussion around the vision plan.
Peter - Budget the School Department v. everything else - when you look at
every year increases it's not an apples-to-apples comparison. When you look at it
we were able to fund one of the Superintendent's budgets. But we're making that
budget on the savings on health insurance which is a one-time savings. Need to
be very careful about what we tell ourselves what we're doing and how we fund
that budget. Who is getting increases and who is not relative to the Health
Insurance Savings? It makes things look different than they are.
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Department as it sees fit?
Heather L. - The savings?
Terri - On the holiday? Is that what you were asking Peter?
Peter - We made the budget based on a one-time savings. That's his concern.
Doesn't understand where savings go - maybe that should be a deep dive we look
into.
Dave - With all the collective bargaining agreements pending - do we have all
those increases built in here?
Heather L. - Yes - built into the budget as Salary Reserve.
Terri - Three Agreements are expected to come to Town Meeting. Town Side
only.
Dave - If we maintain that $800K plus in unappropriated cash wouldn't it better
if we used it to purchase the DPW vehicle.
Peter - What is the balance of the Special Purpose Stabilization Fund? HE
knows we have some other really expensive expenditures.
Karen Brochu - Can get that figure for us.
Dave - with the Fire Deparment's $10,000 line item increase for turn-out gear is
that enough to keep them in regular rotation?
Chief Sullivan - hoping that's the case and if the budget could increase that line
item regularly it would come out of the Capital Plan all together. The gear has a
10 year max life span. 5 sets a year would provide longevity to the gear.
Heather L. - Special Purpose Stabilization Fund figure is approximately
$1,196.470.
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Dave - The Stabilization fund - will that be an article to create that at Town
Meeting?
Heather L. - Yes - Two articles; one to create the fund and one to transfer
funds.
5. Minutes
Terri
One Drive - December and January
Has anyone not had a chance to review the minutes?
Peter and Jay
Will take up next week.
6. Committee Reports
Dave - Cap Planning
If there is more funding the Committee will move down the Cap Planning list.
Next Meeting - Capital Planning Policy Review - no need to have FinCom
involvement at this time.
Peter - School Committee
Met twice - but was unable to attend one.
Meeting on 2/3 discussed budgetary ramifications of insurance savings. As well
as the (SER) relief funding. They will be making a plan for this funding - some
needs coming out of the pandemic both social/emotional and behind on
curriculum there will be a need for programs to address those issues.
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a discussed agenda item, no vote taken and not brought forward to the FinCom.
Pavement Management Plan created because we were not spending enough
Chapter 90 funds on pavement.
Would like to have a policy drafted with a threshold for purchases and oversight
of nonbudget spending.
Terri - not sure she's ready for that discussion tonight. A lot of information to
review - who has authority to spend funds? Does the SB have interest in this?
Chris - Also feels that line-item budgets should be assigned to a Board or
commission. Transfers should go to the board or commission for review.
Peter -more than made known - publicly discussed.
Dave - it's the transparency.
Peter - transparency and oversight.
Terri - we should have some time in April to set aside for that.
8. Publie Comment
Announcement
Heather L. - A second Community Outreach meeting with Greenleaf about the
Adult Use Cannabis Facility on March 10th at 7:00 p.m.
None
9. Adjournment -
Motion to adjourn 8:21 Dave, Seconded Peter, passes unanimously.