===PAGE 1=== Lunenburg Finance Committee joint meeting with Select Board Meeting Minutes Tuesday, September 20, 2022 Location: In-person at Lunenburg Town Hall and broadcast on Zoom Present: Finance Committee members: Chairperson Evan Watters, Chris Menard, Peter Beardmore, Tom Gray, Tom Balish, Jay Simeone. Select Board members: Chairperson Michael-Ray Jeffreys, Louis Franco, Heather Sroka, Todd Dwyer Guests: 1. Call to Order Mr. Watters called the finance committee meeting to order at 7:10 p.m. This meeting was recorded and is viewable on YouTube at https://youtu.be/tQdRbe4YLUc 2. Special Town Meeting Bylaw Proposed on Capital Planning: Mr. Watters explained that Mr. Beardmore worked with Town Counsel to develop the language in the following proposed bylaw. Mr. Watters read the bylaw for the record. "§ 81-11 Amending capital appropriations. Warrant articles and floor motions shall not restrict Town Meeting voters’ ability to propose and approve amendments in totality, description, and/or scope to individual items or projects in capital appropriation articles and motions. Notwithstanding the above, amendments shall not limit the Town Manager’s authority to reapply capital funds among the individual items and projects in the capital plan, nor shall Town Meeting be authorized to increase the total capital plan appropriation printed in the warrant.” Mr. Watters explained that at the last Annual Town Meeting, some finance committee members felt they needed more information on some items on the capital plan before they could support the plan in its entirety. It was learned that because of the way the warrant article regarding the capital plan was written, residents that attend Town Meeting can only support or deny the plan as a whole, regardless of the amount of information available on each item. Mr. Beardmore explained that the proposed bylaw does not change the process of how the capital plan is developed, but it does seek to restore legislative authority to Town Meeting. Mr. Beardmore also pointed out that the capital plan has increased at about 15 percent per year since the current capital planning process began 20 years ago. Mr. Beardmore opined that the capital plan used to serve as a list of needs for the town, but has recently shifted toward a list of wants that lack proper vetting and oversight. Ultimately, Select Board members agreed that the proposed bylaw should be allowed to be heard by those who attend Town Meeting, but Mr. Jeffreys, Ms. Sroka, Mr. Dwyer, and Mr. Franco all opined they’d prefer the current capital plan warrant language remain the same, and fret that the approval of the proposed bylaw will cause a Town Meeting debate of the capital plan line by line, which will then lead to a longer Town Meeting, and therefore eventually, even less participation. Mr. Jeffreys opined that as it stands, those who regularly attend Annual Town Meeting do not fully represent the whole town. Mr. Jeffreys also pointed out that the school’s budget is accepted as a whole, and is not debated. Mr. Jeffreys expressed that he believes in the current process of how the capital plan is developed - Approved by Finance Committee at November 10, 2022 meeting. ===PAGE 2=== through proper vetting of department heads, the capital planning committee, and the Town Manager -and that Town Meeting participants should be able to trust the current process. Mr. Beardmore reminded the Select Board that if the finance committee thought the Select Board would not put the bylaw proposal on the warrant, that it would be put through via a citizen’s petition. Mr. Beardmore iterated that the bylaw does not propose to separate the capital plan into individual warrant articles. Mr. Beardmore pointed out that Town Meeting is allowed to amend the omnibus budget, minus the schools’ budget, and that there hasn’t been an amendment proposed to the omnibus budget since 2019. Mr. Beardmore also pointed out that in 2020, the “COVID year,” Mr. Passios and Mr. Beardmore motioned to reduce the amount of the capital plan, and remove items, given the financial uncertainty during the pandemic. Their motion was heard, debated, and failed in about fifteen minutes, but that same language of the capital plan article is what prevented Mr. Beardmore from proposing an amendment in 2022. Mr. Beardmore opined that the Select Board mischaracterized the proposed bylaw, and thinks that most people agree that the current capital planning process is sufficient, however, if there are particular items that deserve more scrutiny, and it’s determined that Town Meeting wants more information, they should be able to request that information on Town Meeting floor, and debate the item. Mr. Jeffreys opined that there is a lot of potential for the proposed bylaw to be abused, and he is personally against it, but he would support the bylaw article to be placed on the warrant for Special Town Meeting. 3. Debt Capacity: Mr. Watters explained that the finance committee has observed the tremendous effort put forth to develop concepts and ideas to remedy issues regarding municipal buildings, and all things related, only to find projects denied at Town Meeting because the cost is too expensive. The finance committee is satisfied with the town’s current debt capacity, but would like to see a financial forecast involving various scenarios to see how much money the town could feasibly borrow in order to form an affordable and obtainable vision. Mr. Jeffreys opined that the town is aware of what they can spend, but that the debt capacity is weighed down because of school building projects. Mr. Jeffries entertained the idea of relooking at the 11 percent excludable debt policy, and suggested the possibility of putting limits on school projects in order to address municipal building issues, and other financial issues due to face the town. Ms. Lemieux pointed out that her annual five-year financial forecast does illustrate the town’s debt capacity. Mr. Beardmore suggested that the five-year forecast does not account for projects that need to be done, and the forecast they’re proposing could. Mr. Balish pointed out that a professional financial planner could form an analysis in a few weeks, and that the proposed forecast is not an exhaustive process. Ms. Sroka opined that she, and many people in town, would like to see any project get done, and understands the value in having a financial planner map out different scenarios in order to define and execute affordable projects. Mr. Jeffreys suggested a follow-up discussion on the finance committee’s idea. Mr. Jeffreys asked members of the finance committee what the Select Board could do to make them feel more supported. Committee members agreed that they’ve never felt not supported by the Select Board, and suggested that board members continue to attend, and watch finance committee meetings on pertinent issues. Select Board members agreed they’re favorable to more joint meetings with the finance committee, and are looking forward to collaborating more in the future. ===PAGE 3=== 4. Adjourn At 8:38 p.m., Mr. Menard motioned to adjourn the finance committee meeting. Mr. Beardmore seconded. On vote, motion carried unanimously.