===PAGE 1=== Lunenburg Finance Committee Meeting Minutes Thursday, February 17, 2022 Location: In-person at Lunenburg Town Hall and broadcast on Zoom Present: Chairperson Peter Beardmore, Jay Simeone, Evan Watters, Tom Balish, Tom Gray, Chris Menard via Zoom, Dave Passios via Zoom (for last part of meeting) Guests: Town Manager Heather Lemieux, School Committee Chair Carol Archambault. 1. Call to Order Mr. Beardmore called the meeting to order at 7:00 p.m. and read a statement concerning the Open Meeting Law, and how all public meetings are legally being held remotely. This meeting was recorded and is viewable on YouTube at https://youtu.be/Qx7EgjovsNE 2. Pledge of Allegiance 3. Announcements: none 4. Public Comment: none 5. Town Manager/Finance Director Report: Ms. Lemieux gave the committee an update on what she discussed with the Select Board at their meeting earlier in the week. Electricity and natural gas contracts are to expire on November 30, 2022. The town will solicit bids in spring. Ms. Lemieux also informed the board that the Meadow Woods trailer park, which has been in receivership for many years, will begin paying back taxes at $100,000 per year until all back taxes are paid off. Close to $1 million is owed. The annual $100,000 will go to free cash. 6. Discussion on ARPA presentation at Select Board meeting on Feb 1, 2022: Ms. Lemieux explained that Lunenburg’s $3 million share of ARPA funds falls under the “lost revenue” category, and the Select Board will decide how the funds are allocated. Consultants from Capital Strategic Solutions will hold public outreach meetings to get the community’s input on how funds should be spent. Ms. Lemieux highlighted 30 School St., Marshall Park, and costs related to the latest Vertex study on town buildings as possible projects to be funded with ARPA funds. Ms. Lemieux also informed the committee that several suggested projects may also be funded by alternative sources, and that much research will be done before the decision is made to spend the money. All possible projects will be evaluated and prioritized. Mr. Beardmore expressed his concern about the T.C. Passios building project, Town Hall and Ritter building, as well as the Turkey Hill Elementary school, and opined the town must be very cautious about borrowing for those projects. Mr. Gray asked about the timeline regarding the funds. The town will have until 2024 to commit to how the funds will be spent, said funds must be spent by 2026. ===PAGE 2=== 7. Town Managers Budget Recommendation Presentation: Ms. Lemieux’s FY2023 budget presentation can be found in the Town Manager’s office at Town Hall. https://www.lunenburgma.gov/sites/default/files/field/files- docs/fy_2023_line_item_detail_budget.pdf In her presentation, Ms. Lemieux explained that the FY2023 Target Budget includes revenues for property taxes included adding 2 ½ percent to the previous year’s levy, $213,523 for New Growth, and debt exclusion amounts. State Aid was level funded based on FY22 State Aid figures approved in July of last year. Local receipts included a $50,000 increase over last fiscal year’s estimate for Motor Vehicle Excise tax, but level funded other receipts. FY2023 revenue estimates come out to $47,488,938, built by 65 percent property tax, 22 percent State Aid, 6 percent local receipts, and 7 percent from available funds. Ms. Lemieux highlighted that State Aid is much greater than indicated in FY2022, that the estimate for local receipts remains conservative, and that available funds are similar to FY2022. The Town Manager’s FY2023 Preliminary Budget will fund the town’s government, including requests for a part time tech support position, a part time clerical position for Conservation, wages for Registration Workers, additional hours for the Assistant Tax Collector and increases in software, hardware, website, and internet costs. The budget also includes spending on the police and fire departments, DPW, Veterans Service Officer, library, which will be opening on Fridays, the Council on Aging, a 10.32 percent increase for Worcester Regional Retirement, a $124,341 increase to health insurance, a 3.11 percent increase to the schools, a 21 percent increase to the Monty Tech, and a reduction by $42,000 in the Solid Waste Recycling Program. FY2023 preliminary budget expenditures total $43,202,314. Total appropriation for debt service is $4,497,723. The Town Manager’s preliminary budget includes over $1 million in free cash to spend on financial warrant articles, increase funding for FY23 Capital Plan, can be used on FY22 Snow and Ice Deficit, or deposited into stabilization. Ms. Lemieux recommends leaving a portion of these funds to fall to next year’s free cash. Mr. Beardmore asked whether the $50,000 being put toward roads every year was necessary as the town has been taking care of its roads, and opined they aren’t in bad shape. Ms. Lemieux reminded the board that an agreement was made to put away $50,000 per year until the pavement management fund reaches $1 million, and that money is being expended every year to repair the town’s roads. Mr. Watters added that more attention should also be paid to storm water runoff. Ms. Lemieux responded that the Storm Water Task Force is working toward creating its own enterprise fund. Mr. Beardmore expressed that he’d like to hear more discussion on the new Facilities Director position. Mr. Menard asked whether buildings on park properties would fall under facilities, or DPW. Mr. Passios asked about the increase in health insurance and whether the town would use the money in the health insurance stabilization fund. Ms. Lemieux said that the fund was not included in the preliminary budget, and the money would be used for future increases. 8. Annual Town Meeting Warrant Updates: Warrant Articles are due by February 21, 2022. ===PAGE 3=== Mr. Menard asked whether there would be any articles where dollar amounts would not be known by the time the committee is required to hold a public hearing. Ms. Lemieux replied that all warrant articles should have all necessary information by deadline. 9. Committee Assignments: Since the committee decided to choose Mr. Beardmore to serve on the new Municipal Building Design Committee, Mr. Watters volunteered to serve as liaison to the school committee for the rest of the fiscal year. Mr. Menard moved to appoint Mr. Watters as liaison to the school committee for the remainder of FY2022. Mr. Simeone seconded. On vote, motion carried unanimously. 10. Minutes: Mr. Balish moved to accept the minutes from the January 13, and January 27, 2022 meetings. Mr. Gray seconded. On vote, motion carries. 6-0-1 11. Committee Reports: Committee members updated each other on their respective liaison assignments. 12. Public Comment none 13. Items for Future Meetings Board of Health will be invited to come before the committee to talk about their requested appropriation. 14. Next Meetings Feb. 24 meeting will be all remote. 15. Adjourn Mr. Watters motioned to adjourn, Mr. Gray seconded. On vote, motion carries unanimously.