===PAGE 1=== Lunenburg Finance Committee Meeting Minutes Bilotta Meeting Room Lunenburg Town Hall August 8, 2024 Present Members: Chair Evan Watters, Board Member Tom Gray, Board Member Dave Passios, Board Member Jean Russell, Board Member Jay Simeone Absent Members: Vice Chair Chris Menard, Clerk Tiffaney Tavares 1. Call to Order The meeting opened at 7:00 PM. 2. Pledge of Allegiance 3. Announcements There were no announcements. 4. Public Comment Ana Lockwood, 91 Main Street, quoted the United States constitution and the Gettysburg Address. Ana Lockwood states that when someone volunteers for the town they are not volunteering for themselves. You’re volunteering on behalf of the people. Ana Lockwood discussed the vote from the prior meeting that did not pass relating to the request to fund 9 more hours for the recreation director. Ana Lockwood worked with the Town Manager prior to her leaving and there was an agreement to fund that increase. At the last minute, the funds were pulled and put towards the trash contract. There was further agreement that this would be addressed after the town meeting to have the funds come out of the revolving account. At the last meeting, there was discussion that the revolving account shouldn’t be used for that purpose. 6 months ago, that account was used to fund salaries and benefits for the town beach employees. This has been happening for the last 6 years. The government should function for the benefit of the people and if things are being done that do not benefit the people, not improving their general welfare, then it should not be done. 5. Finance Director Report Ezequiel Ayala provided a report during the Cemetery Commission presentation. 6. New Business a. Discussion with CemCom Chair The Chair of the Cemetery Commission, Nancy Foss Yasko, was present and Ezequiel Ayala provided a presentation. ===PAGE 2=== The Sale of Lots, Fund 8115, states the proceeds for the sale of the lots or rights of burial in cemeteries shall be paid into the Town Treasury and appropriated to reimburse the town cost of the land, care, improvements, or enlargement of the cemetery. The sale of lots is to be handled by the cemetery superintendent. There are no refunds/expenses that can occur without the majority vote from the Cemetery Commission. The Capital Article, Fund 3006, is to be used strictly for project-based work. The general day to day maintenance is taken care of by the DPW. The purpose of the Cemetery Perpetual Care Trust Fund is to pay for the overall care, maintenance and development necessitated by natural growth and ordinary wear. The Principal, Fund 8001, is nonexpendable and is set aside for investment. The Interest, Fund 8000, is expendable and the interest earned from the fund is to be used to support costs associated with the cemetery operations. Interest earnings may also fund capital improvements. Nancy Foss Yasko confirms that when there is a sale of a lot, half of the funds goes to the Town and half goes to the Sale of Lots. Currently, the interest for the current fund is around 2.2% and that is not ideal. There is a suggestion about looking at the numbers to find a feasible way to raise that interest rate. Evan Watters questions who could reinvest funds. Ezequiel Ayala state we as a Town are not allowed to without the approval of the Cemetery Commission. Evan Watters questions if there is any grant funding available. Nancy Foss Yasko believes there is probably some that has been overlooked. Evan Watters asks if there is any Chapter 90 funding available. Nancy Foss Yasko doesn’t know the answer but will inquire with the DPW Director. Evan Watters inquiries into how many lots are currently available. Nancy Foss Yasko is unaware of the exact number, but she ran reports on the software and there were discrepancies. b. High Deductible Insurance Plan Proposal The Chair of the School Committee, Brian Lehtinen, was present and provided a drafted letter for the Finance Committee to review relating to healthcare plans. Brian Lehtinen does not want to force a major change in the healthcare plan but has a suggestion of adding an additional option for health care. The key feature in the proposed plan includes a lower premium and the option of an HSA. ===PAGE 3=== Dave Passios states the drafted letter does not include the different deductible rates for in network costs and out of network costs. Evan Watters believes the adoption of this plan lies solely with the Town Manager. Brian Lehtinen suggests the next step would be to contact the interim Town Manager and have them reach out to the health insurance agent representative for their feedback. c. Investment Strategy Discussion There was a review of the last 6 months in FY 23. Back on June 30 of 2023, there was roughly 27 million dollars that was only accruing at a rate of 1% or lower. The Budget Task Force wants to meet with the town’s investment companies in hopes of obtaining suggestions. Ezequiel Ayala suggests having a professional look at the portfolio to advise the best route. Dave Passios suggests picking away one account at a time. Evan Watters states that a downside of reviewing one account at a time is the loss of buying power. Evan Watters will put out a request to the finance company Bartholomew & Company to obtain additional information. d. DLS Financial Policy Manual Draft Evan Watters has reached out to Casey Bick from DLS and is awaiting a response. 7. Old Business a. Town Manager Search Committee – Update Chris Menard is not present for tonight’s meeting, and he is the liaison with the Town Manager Search Committee. b. Budget Task Force – Update Renee Emkey and Ezequiel Ayala put together a presentation that Evan Watters will email to the Committee. Ezequiel Ayala and Renee Emkey used their search criteria to pull out comparative towns. Heather Lemieux had a list she worked with for negotiating that was also factored in. Between the 3 there was one town each list had and that was Groton. c. Grant Writing Services – Update Evan Watters reached out to Bailey Boyd Associates in Scituate and hasn’t received a call back. He will follow up and give them another call. ===PAGE 4=== Evan Watters will also reach out to Carter Terenzini to get his position. d. Consolidation of Services/Departments -Postponed i. Cost Analysis Comparison: Town v. School e. Review Budget Process/Suggestions for Improvement The Special Town Meeting warrant is going to open on August 14. The public hearing is scheduled for March 27. The Finance committee report is due 6 days later. Dave Passios insists we need to find out how other towns are bringing a budget together in March and April. Evan Watters will request Carter Terenzini give an explanation of his ideas for the budget process. Evan Watters suggests the Committee develop a preferred presentation format that is standardized for each presentation. Tom Gray suggests imposing a time limit for the presentations. 8. Minutes a. 7/25/2024 There was a motion to approve the minutes by Tom Gray, seconded by Jay Simeone. All in favor. 9. Committee Reports Dave Passios states that Green Communities Committee hasn’t met but he did discuss some of the projects they are working on. Evan Watters shared that the Municipal Building Design Committee will have a upcoming meeting. Jay Simeone watched some videos but doesn’t have any updates. Evan Watters attended the last School Committee meeting. An advisor was there to discuss budgeting practices, strategies, and methods. There was a review of a drafted letter to be sent to the Select Board, Town Manager, and the Finance Committee. The letter states that $30,000 to $38,000 Chapter 70 funds were received. This was more than anticipated and the Committee is requesting those funds be used towards the schools. Dave Passios requests that the liaison with the Fire Department have a conversation with the Fire Chief relating to concerns brought forward by the firefighter’s union. There is discourse as to the number of hours and forced work hours. ===PAGE 5=== Dave Passios has a question related to a previously announced meeting between the Chair, Vice Chair and the DPW Director. Dave Passios requests some sort of transcript or synopses of the meeting. Evan Watter states the meeting did not take place and hasn’t been rescheduled but he does confirm a synopsis will be provided to the Committee. 10. Topics for Future Meetings - Interim Town Manager process for budget season - DPW presentation related to Chapter 90 - Invite the treasurer, Myleen Mallari, to the September 12th meeting to discuss investments. 11. Important Dates Aside from the upcoming meetings there are no other important dates. 12. Upcoming Meetings: a. 8/22/24 b. 9/12/24 13. Public Comment Dave Passios states there has been 2 resignations in the past week from the Sewer Department. The Chair, John Reynolds, and the Sewer Commissions Administrative Assistant has resigned. John Bowen, 162 Highland Street, thanked Ana Lockwood for her reminder during public comments. John Bowen suggests looking into a forensic accounting firm that may help direct the financial director with the best investments. Additionally, he requested to have the Cemetery Association of Massachusetts come for a consultation. The consultation would cost $500. Lastly, John Bowen confirms that Chapter 90 funding includes the roads for the cemetery. 14. Adjourn There was a motion to adjourn by Dave Passios, seconded by Tom Gray. All in favor. The meeting closed at 9:52 PM.