# finance-committee — 11 documents, concatenated for reading and search # # This is a CONVENIENCE BUNDLE, not a source. Every document below is # published separately and byte-identically; cite the individual file, # whose path is given in each header, rather than this bundle. # Index of all boards: https://lunenburgbudgetproject.org/minutes/INDEX.txt # The town's own scanned original is linked per document. ======================================================================================== DOCUMENT : 2016-01-14-agenda-2226.txt BOARD : finance-committee DATE : 2016-01-14 KIND : agenda OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-01-14-agenda-2226.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_01142016-2226 ======================================================================================== ===PAGE 1=== NOTI CE of FINANCE COMMITTEE MEETING on Thursday, January 14, 2016 7:00 PM Town Hall IN ACCORDANCE WITH THE REQUIREMENTS O F THE OPEN MEETING LAW, PLEASE BE ADVISED THAT THIS MEETING IS BEING RECORDED AND BROADCAST OVER LUNENBURG PUBLIC ACCESS. AGENDA 1. Open meeting 2. Communications • Public Comment • New Communications 3. FY2015 Audit Report, Frank Serreti from Powers & Sullivan 4. Town Manager Reports 5. Review schedule for Department Budget Presentati ons 6. Review Minutes 7. Budget Goals and Opportunities 8. Committee/Department Updates Capital Planning – John; DPW and Parks – John; Pub lic Access Committee – John Library – Terri; Public Safety – Terri; Sewer Commi ssion –Jay; Green Community Committee – Jay; School Committee – Karin; Monty Te ch – Karin; Council on Aging – Karin; School Building Committee – Mark; Building R euse –Mark 9. Ongoing Business • Pavement Management Plan • Contract commitments (e.g., sick leave buy back) • Sales of surplus property – Status 10. Next Meetings • Jan 28, 2016, 7:00 p.m. – Town Hall – Regularly Sc heduled Meeting o Capital Plan Review • Feb 4, 2016, 7:00 p.m. – Town Hall – Special Meeti ng – Chapter 70 Workshop • Feb 11, 2016, 7:00 p.m. – Town Hall – Regularly Sc heduled Meeting o Town Manager’s Budget Presentation 11. Adjournment ======================================================================================== DOCUMENT : 2016-01-14-minutes-2226.txt BOARD : finance-committee DATE : 2016-01-14 KIND : minutes OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-01-14-minutes-2226.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_01142016-2226 ======================================================================================== ===OCR macOS Vision=== ===PAGE 1=== Finance Committee: Mark Erickson, Chairman Terri Burchfield, Vice-Chairman John Henshaw, Secretary Karin Menard Jay Simeone /28/16 17 Main Street, P.O. Box 135 Lunenburg, MA 01462-0135 978.582.4139 FAX 978.582.4148 Lunenburg Finance Committee Minutes January 14, 2016 Location: Town Hall Present: Mark Erickson, Terri Burchfield, Karin Menard, John Henshaw Absent: Jay Simeone Also Present: Kerry Lafleur, Town Manager, Karen Brochu, Town Accountant 1. Mark called the meeting to order at 7:00 pm. 2. Comments: a. Public: None b. Committee: • Reports for the FY2015 annual report are due February 25. Mark suggested that, as the Finance Committee report on Town Finances has been in the Town Meeting Warrant it should remain there. The committee agreed. • The Mass Mosquito Control Project notified the Town that our assessment is $68,307. It is in line with our assessment in the past. • Mark circulated the January issue of The Beacon to the committee. 3. The results of the FY2015, presented by Frank Serreti from Powers and Sullivan, LLC is in two parts: 1. The Report on Examination of Basic Financial Statements year ended June 30, 2015, and 2. Their Management Letter which notes "opportunities for strengthening internal controls and operating efficiencies." An overview of the audit results and management letter follows. For additional information please refer to the reports or to the Town Accountant. a. The Audit: Based on their findings, Powers and Sullivan issued an unmodified opinion on the financial statements, which is the highest rating possible. • The financial statements comply with all generally accepted accounting principles and the statements incorporate all the required disclosures. • The audit process found that all tested transactions were accurately accounted for; there were no material weaknesses. • Operations are structurally sound and controls are in place. • The procedures for cash and receivables insure the timely and accurate reporting and reconciliation of these two important accounts. • The Town's collection rate for real estate taxes is 98%, which is good. • Stabilization funds are at the target level in the financial policy. Mark stated how pleased he was that the Town was well prepared for the audit and that the audit found no material weaknesses thanks to Kerry, Karen and their team. Mn-FY16-160114-Draft.xlsx it ocal and remote drives) 1 of 3 ===PAGE 2=== b. The Management Letter recommends improvements in 13 processes from this and prior audits. The Town has resolved two and is in various stages of addressing the other 11. For context, Mr. Serreti observed that the audit concluded the Town had strong operating processes and controls, so these process improvements are fine tuning a good overall process. Mark asked what should be the priority of resolving the remaining issues in the Management Letter, and Mr. Serreti recommends working on those that are the quickest to resolve which would reduce the list to a more manageable level. 4. Town Manager Report a. The S& Prating update is due shortly and there is a chance that our outlook will change to negative because of the amount of debt service the Town has incurred from the Junior-Senior High School construction project. b. The Parks Commission and the School Committee have made good progress on setting up a funding mechanism based on collecting user fees from Town and private users of the Turf Field and Track facility. Renovating the Track is more critical than renovating the field; there is more risk of failure of the foundation underlying the track, with a much higher cost. 5. Mark handed out the FY2017 Budget Hearing Schedule. He also invited all interested citizens to consider joining the Finance Committee. There are five members on the committee currently, which is down two members from our full size, and just one member above our required quorum of four. It's an interesting and rewarding way to contribute to our Town. 6. Minutes: Terri made a motion to approve the minutes of the December 10, 2015 meeting. Karin seconded the motion. The motion carried 4-0. 7. Committee Updates: Committee/Department DPW-John H. Capital Planning-John H. Public Access Cable-John H. Library-TerriB. Public Safety-Terri B. Mn-FY16-160114-Draft.x/sx (local and remote drives) Update No report-will report at our next meeting about snow and ice removal costs incurred to date and prospects of managing to spend at least to the budget. The committee has heard presentations by the requesting departments on the capital requests for FY201/. There is a projected $600,000 in the capital budget net of the debt service costs for the three items the Town purchased through financing. This is not enough to pay for all the requests, so some will not be granted. Next week the CPC will meet to arrange these requests in order of priority. No Report. When the Trustees reviewed the FY17 budget, Terri noted differences in the appropriation level necessary to satisfy the grant requirements and get the two state library grants. Kerry Lafleur said that she too has had difficulty figuring out what level of appropriation is required. Since the Police Department is working on their FY1/ budget, Terri asked Chief Marino if the workload was straining his resources. The chief said that last year and > of 3 ===PAGE 3=== for the first time there were 600 arrests. Chief Marino had asked for three more offices the past couple of years but that had not been approved. So he was thinking of asking for one more officer instead in FY17. Terri did not meet with the Fire Department. Schools-Karin M. Karin noted the joint effort between the School Department and the Parks Commission on funding the turf field and track. See point 4.b. above in the Town Managers report. Monty Tech-Karin M. Council on Aging-Karin M. No report. Sue Doherty presented her budget which is right in line with the Town Manager's request. Sewer Commission-Jay S. Green Task Force-Jay S. School Bidg. Comm.--Mark E. No report-Jay was not in attendance. No report-Jay was not in attendance. The project is on schedule and under budget. The building is 74% complete; permanent power is on in all sections. Much of the internal finalization work is underway. They approved change order #7 which totaled $31,540. That brings total expenditures from contingency funds to $208,000. The committee then reviewed a List of pending and possible change order. The largest item on the pending change orders is $185,000 for a maintenance garage. All other change orders are under discussion, but are not ready for discussion. Building Re-Use-Mark E. The committee met on 12/31 and reviewed a draft from Tappé on the needs assessment and are working on a presentation to the Board of Selectmen. The committee will be meeting tomorrow morning to finalize the recommendation and work on the presentation and FAQS. 8. Ongoing business: The committee will receive a presentation of the funding of the pavement management plan at a future date. 9. The next two meetings: a. January 28—tentatively receive the capital plans recommendation. b. February 4—Special Meeting. Chapter 70 Workshop-as a joint meeting with the school committee and the Board of Selectmen. c. February 11-Town Manager's Budget presentation. 10. Meeting Adjourned: Terri moved to adjourn the meeting and Karin seconded the motion. The board voted 4-0 in favor; the meeting adjourned at 8:23. Respectfully submitted by John Henshaw January 21, 2016 Copy: Karen Brochu, Tom Alonzo Mn-FY16-160114-Draft.xlsx (local and remote drives) 3 of 3 ======================================================================================== DOCUMENT : 2016-01-28-agenda-2227.txt BOARD : finance-committee DATE : 2016-01-28 KIND : agenda OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-01-28-agenda-2227.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_01282016-2227 ======================================================================================== ===PAGE 1=== NOTI CE of FINANCE COMMITTEE MEETING on Thursday, January 28, 2016 7:00 PM Town Hall IN ACCORDANCE WITH THE REQUIREMENTS O F THE OPEN MEETING LAW, PLEASE BE ADVISED THAT THIS MEETING IS BEING RECORDED AND BROADCAST OVER LUNENBURG PUBLIC ACCESS. AGENDA 1. Open meeting 2. Communications • Public Comment • New Communications 3. Capital Plan Review 4. Town Manager Reports 5. Review Minutes 6. Budget Goals and Opportunities 7. Committee/Department Updates Capital Planning – John; DPW and Parks – John; Pub lic Access Committee – John Library – Terri; Public Safety – Terri; Sewer Commi ssion –Jay; Green Community Committee – Jay; School Committee – Karin; Monty Te ch – Karin; Council on Aging – Karin; School Building Committee – Mark; Building R euse –Mark 8. Ongoing Business • Pavement Management Plan • Contract commitments (e.g., sick leave buy back) • Sales of surplus property – Status 9. Next Meetings • Feb 4, 2016, 7:00 p.m. – Town Hall – Special Meeti ng – Chapter 70 Workshop • Feb 11, 2016, 7:00 p.m. – Town Hall – Regularly Sc heduled Meeting o Town Manager’s Budget Presentation • Feb 18, 2016, 7:00 p.m. – Town Hall – Special Meet ing o Police and Fire Budget Review 10. Adjournment ======================================================================================== DOCUMENT : 2016-01-28-minutes-2227.txt BOARD : finance-committee DATE : 2016-01-28 KIND : minutes OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-01-28-minutes-2227.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_01282016-2227 ======================================================================================== ===OCR macOS Vision=== ===PAGE 1=== Town of Luminars Finance Committee: Mark Erickson, Chairman Terri Burchfield, Vice-Chairman John Henshaw, Secretary Karin Menard Jay Simeone 17 Main Street, P.O. Box 135 Lunenburg, MA 01462-0135 978.582.4139 FAX 978.582.4148 RECEIVED & FILED Lunenburg Finance Committee Minutes January 28, 2016 FEB 12 2016 Location: Town Hall LUNENBURG TOWN Present: Mark Erickson, Terri Burchfield, Jay Simeone, John Henshaw CLERK OFFICE Absent: Karin Menard Also Present: Kerry Lafleur, Town Manager, Karen Brochu, Town Accountant, Dennis Mannone, Capital Planning Committee Vice-Chairman, Jamie Toale, Board of Selectmen Chairman, Tom Alonzo, Board of Selectmen Clerk. 1. Mark called the meeting to order at 7:00 pm. The meeting is being broadcast on Lunenburg Public Access Cable and a video recording of the meeting will be available for viewing at Lunenburg Public Access at https://www.youtube.com/user/LunenburgAccess. 2. Comments: a. Public: None b. Committee: We still have two vacancies and tonight we just have a quorum. To anyone viewing tonight who is interested in becoming a member of the Finance Committee it is a great time to join and learn as the committee works on the annual budget process, which is just about to begin. 3. Capital Planning Committee [CPC] Report presented by Dennis Mannone, Vice-Chair, CPC: a. The CPC extended the plan horizon to 15 years consider long term capital needs. b. Capital requests for FY2017 from all departments totaled $1.6 million. The committee recommends funding 12 projects, at a total cost of $781,975. • The CPC arranged these requests in priority and the Town will allocate monies to fund requests in order of priority. c. Based on local aid amounts in the governor's budget, Kerry estimates that the Town will have between $600,000 and $700,000 to fund capital improvements. At the lower end of this range, funding would pay for the first ten projects; at the higher end the Town allocate monies for the THMS asbestos abatement project. • Per Mark's question, the committee did not assign priorities to those projects not recommended for funding in FY2017. • The following table gives details of the projects recommended for funding. Capital Requests Recommended for Funding in FY2017 in Priority Order Project # Priority Description PD16-12 1 PD16-07 2 Police Vehicles (2), Units 207 & 210 Bulletproof Vests 29 Officers Cost $107,000 $17,500 Running Total Cost $107,000 $124,500 Mn-FY16-160128-Draft.xlsx (local and remote drives) 1 ofA ===PAGE 2=== LPS16-21 LPS16-20 DPW17- 01 DPW16- 11 DPW17- 04 DPW16- 07 TECH16- 25 FD16-13 LPS16-19 THMS Phone System Replacement 4 THMS Intercom Replacement 5 Townsend Harbor Road Bridge 6 Catch Basin Cleaner Attachment 7 Mack Dump 6 Wheel, plow and sander 8 GMC Dump 350 (1 ton with plow) 9 Town Departments Technology 10 Pick-Up 4x4 (M1) Replacement (2003) 11 THMS Asbestos $22,000 $22,000 $15,000 $87,125 $194,750 $53,300 $30,800 $70,000 $145,000 $146,500 $168,500 $183,500 $270,625 $465,375 $518,675 $549,475 $619,475 $764,475 Abatement, Ceiling Replacement. PD16-16 12 4-Wheel Drive All- $16,500 $780,975 Terrain Off-Road Enforcement Vehicle Source: This is an extract from Capital Planning Committee All Requests, FY2017- 2031. December 17, 2015. Compiled by Kerry A. Lafleur d. Issues, Turkey hi ladle Sinol (THMS) Repairs and asbestos abatemen This project spans several years and costs enough that funding it would consume all the capital budget over several years. So it is a candidate for a funding source outside the capital budget. • Mark stated that moving this project out will increase its costs as construction costs increase. • The asbestos abatement project is in three phases-done over summer break. • Re-use or trade-in Vehicles Policy • Kerry has a process the Town follows on a case-by-case base. • Mark said Chief Marino's plan for vehicle rotation and replacement is to replace two vehicles a year for three years and then one vehicle a year for two years. Thus over a five-year period they would replace its entire eight vehicle fleet. • Fire Engine #4: The Fire Dept. requested it be replaced in FY2017. It is ageing but the intent is to time the replacement to coincide with when debt incurred for another fire truck has been paid off. This is a case of managing the Town's debt service costs. • Replacement pick-up for the fire department. Jay pointed out that, at $70,000 this pick-up costs about twice as much as the price of similar pick-up trucks. Dennis said the CPC had the same concerns and that Chief Sullivan provided a detailed quotation that tallied the costs of outfitting the pick-up for use by the fire department, including a 5% price escalator as the truck would be purchased in 2017. The truck it would replace is 12 years old. Mn-FY16-160128-Draft.xIsx (local and remote drives) > of 4 ===PAGE 3=== 4. Town Manager's Report: a. Governor's budget was just released yesterday, January 27" and local aid estimates for Lunenburg are very favorable. • In this budget Chapter 70 funding would be $20 per student. Further the budget makes provisions for additional aid for towns and cities like Lunenburg that are above effort communities. Kerry advised that the legislature may have different educational funding priorities. She also stated that further information on this may be available next Thursday, February 4 at 7:00 when there will be a televised workshop on education funding. Both the school committee and the finance committee will attend this workshop. • The Governor's budget also increases Unrestricted General Government Aid (UGGA) amount by $42,000. But this account was cut by around $300,000 in FY2006 or FY2007, so even with the $42,000 increase UGGA remains below what it was ten years ago. b. Kerry will send out a spreadsheet of the Town's FY17 budget before her February 11th presentation. C. Town Health Insurance costs for most employees will likely increase on the high end of the allowable increase, but lower increased costs for Town retirees who are 65 + years old, (two-thirds of the total) attenuates the increase. d. There will be no financing of capital purchases in FY17 as the Town needs to limit debt service costs from regular borrowing because we need to finance expensive capital improvements in future fiscal years. e. The Town put two bond issues that were callable out to bid—in essence refinancing debt-which lowered the Town's interest rates, which in turn will save the Town $20,000 per year or $180,000 in total over the nine-year debt service period. • Mark observed that this is a result of sound fiscal management and the Town's AA+ bond rating. f. S & P Rating Services has confirmed the Town's AA+ rating with a stable outlook. Their report mentioned a lot of outstanding debt. But the Town has a high amortization rate: The rate of paying off principal is high; Kerry projected it at close to 50% in ten years. Further their report stated that the Town had incurred debt service expenses that exceeded the 3% of revenues as stated in our financial policy. • Mark stated that was a mistaken interpretation of the Town's financial policy regarding debt service costs. The financial policy states that debt service expenses will not exceed three percent of the Town's budget. • Kerry said that the rating agency only looks at debt as a ratio (e.g. total outstanding debt to the Town's debt limit or total outstanding debt to the annual revenues) and the rating agency does not distinguish between excluded debt and non-excluded (regular) debt. • During the rating process the agency gave Kerry an hour to look over the rating document and that she did not see the error during that hour. In the near term future there will be another opportunity to correct this error when the Town goes through another rating process. • Mark offered the committee's congratulations and appreciation to Kerry, Karen Brochu, and their staffs for their sound management of the Town's fiscal affairs. • Kerry said the fact that the Town has financial policies and adheres to them is a positive factor when dealing with the rating agency and the auditors. g. The Q2 budget update on revenues is positive: Property taxes, meals tax, and ambulance receipts are above budget, and on expenditures, snow and ice expenditures are more manageable than in the recent past. Right now it looks like the Town may well not have to make up a deficit in this account in FY17. Mn-FY16-160128-Draft.xlsx (t ocal and remote drives) 3 of 4 ===PAGE 4=== 5. Minutes: Terri made a motion to approve the minutes of the January 14, 2016 meeting. John seconded the motion. The motion carried 3-0. Jay abstained as he did not attend the meeting. 6. Budget Goals and Opportunities—no discussion. 7. Committee Updates: Committee/Department DPW-John H. Capital Planning-John H. Public Access Cable-John H. Library- Terri B Public Safety-Terri B. Schools-Karin M. Monty Tech-Karin M. Council on Aging-Karin M. Sewer Commission-Jay S. Green Task Force-Jay S. School Bldg. Comm.--Mark E. Building Re-Use-Mark E. Update The Town increased the snow and ice removal budget to $275,000 in FY 2017. Through last week we have spent a little over $165,000 not including some bills we have not yet received from private contractors.: Please see point 3 above for the list of capital project requests the Capital Planning Committee recommends that the Town fund in FY2017. PACC will meet on Monday, February 8. No report. No report. No report. No report. No report. Jay invited Carl Luck to report: Carl said the budget looks good and they are working on the debt side right now. No report. Mark was not at the meeting with the Board of Selectmen. There was concern as to how to spend whatever monies What the r that may remain in the contingency account associated with the new school construction project. The building re-use committee will present their recommendations to the Board of Selectmen at the Tuesday, February 2 BOS meeting. 8. Ongoing business: a. The committee will hear about the Pavement Management Plan shortly. 9. The next three meetings: a. February 4-Special Meeting at Town Hall. Chapter 70 Workshop-as a joint meeting with the school committee and the Board of Selectmen. This will be televised. b. February 11--Town Manager's FY17 Budget presentation. c. February 25-The Police and Fire Departments will present their FY2017 budgets. 10. Meeting Adjourned: Terri moved to adjourn the meeting and Jay seconded the motion. The board voted 4-0 in favor; the meeting adjourned at 8:08. Respectfully submitted by John Henshaw February 2, 2016 Copy: Karen Brochu, Tom Alonzo Mn-FY16-160128-Draft.xisx (local and remote drives) 4 of 4 ======================================================================================== DOCUMENT : 2016-02-04-agenda-2228.txt BOARD : finance-committee DATE : 2016-02-04 KIND : agenda OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-02-04-agenda-2228.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_02042016-2228 ======================================================================================== ===PAGE 1=== NOTI CE of FINANCE COMMITTEE MEETING on February 4, 2016 7:00 PM Town Hall IN ACCORDANCE WITH THE REQUIREMENTS O F THE OPEN MEETING LAW, PLEASE BE ADVISED THAT THIS MEETING IS BEING RECORDED AND BROADCAST OVER LUNENBURG PUBLIC ACCESS. AGENDA 1. Open meeting 2. Communications • Public Comment • New Communications 3. Chapter 70 Workshop; joint meeting with Board of Selectment and School Committee 4. Chapter 70 Funding Resolution 5. Town Manager Reports 6. Next Meetings • Feb 11, 2016, 7:00 p.m. – Town Hall – Regularly Sc heduled Meeting o Town Manager’s Budget Presentation • Feb 18, 2016, 7:00 p.m. – Town Hall – Special Meet ing o Police and Fire Budget Review 7. Adjournment ======================================================================================== DOCUMENT : 2016-02-04-minutes-2228.txt BOARD : finance-committee DATE : 2016-02-04 KIND : minutes OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-02-04-minutes-2228.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_02042016-2228 ======================================================================================== ===OCR macOS Vision=== ===PAGE 1=== Town of Lunenture. Finance Committee: Mark Erickson, Chairman Terri Burchfield, Vice-Chairman John Henshaw, Secretary Karin Menard Jay Simeone 17 Main Street, P.O. Box 135 Lunenburg, MA 01462-0135 978.582.4139 FAX 978.582.4148 RECEIVED & FILED Lunenburg Finance Committee Minutes February 4, 2016 FEB 12 2016 LUNENBURG TOWN CLERK OFFICE Location: Town Hall Mark Erickson, Terri Burchfield, Jay Simeone, Karin Menard, John Henshaw Members of the School Committee, Members of the Board of Selectmen Also Present: Kerry Lafleur, Town Manager, Karen Brochu, Town Accountant, Tom Alonzo, Board of Selectmen Clerk. 1. Mark E. called the Finance Committee meeting to order at 7:00 pm. Along with the Finance Committee, this joint meeting includes the Board of Selectmen and the School Committee, both of which were in session. This meeting is broadcast on Lunenburg Public Access Cable. This URL links to the video recording: https://www.youtube.com/user/LunenburgAccess. 2. Comments: Public: None and Committee: None. 3. Chapter 70 Workshop--focus on Lunenburg, by Mark D. Abrahams, CPA Notes: • These minutes are a broad overview of the presentation. A copy of the minutes at the Town Clerk's office includes the power point presentation, Chapter 70 and Net School Spending Lunenburg School District FY17 Preliminary Budget. Many slides are shown in the video recording which has explanatory commentary by Mr. Abrahams. (see youtube link above.) • Source: Department of Elementary and Secondary Education [DESE]. Link to DESE information: http://www.doe.mass.edu/finance/chapter70/ a. The Foundation Budget, Chapter 70 state aid, and local contribution: • The foundation budget is the minimum level of net school spending required by the state. It equals local contribution plus Chapter 70 state aid • The foundation budget is set by formula. Inputs include the size and composition of school enrollment, a model of the costs of school services, and inflation. • Local contribution is set-independent of the foundation budget--and by formula. Inputs include local economic factors like income, equalized valuation, municipal revenue growth, and excess local effort. b. Chapter 70 aid is the foundation budget less local contribution. c. For years the foundation budget has understated requisite spending on education. The effect of this is cumulative: Towns and cities pay all the increased costs needed to make up the shortfall, which is considered was an inequity. • In FY16 Lunenburg's net school spending was $3,583,931 or 23.4% over the foundation budget. Statewide total net school spending in FY17 will exceed the total foundation budget for the state by 20.7%. Mn-FY16-160204-Draft.xisx (local and remote drives) 1 of 2 ===PAGE 2=== • Mark E. asked what led to this, and Mr. Abrahams said this reflects towns' and cities' willingness to fund education in excess of the foundation budget. Tom Alonzo stated that towns and cities fund education in excess of the foundation budget minimum because that is what it costs. • Mr. Abrahams said two-thirds of towns and cities exceed foundational budget levels and later noted that at full equity Lunenburg would receive about $275,000 more dollars in Chapter 70 aid than it will receive this year. • Since FY07 the state has tried to rectify this inequity by increasing Chapter 70 aid to cities and towns that exceed their foundation budget levels. Despite some progress, the inequity persists. The governor's FY17 budget includes a proposal to increase Chapter 70 to help defray the increasing costs. The legislature has yet to consider this. • The Foundation Budget Review Commission recommend a significant increase in the Foundation Budget. Traditionally local contribution is about 60% of the foundation budget and Chapter 70 is 40%. But Mr. Abrahams said that that would increase the local contribution by about $480 million, which presents a challenge to some cities and towns to increase local contributions. It would take a long time to implement. • Greg observed that if the foundation budget increased the Town would not pay any higher local contribution as we are already funding a school budget 23% higher the foundation budget. Further, we would receive more Chapter 70 aid—at 40 of a higher foundation budget. Mr. Abrahams stated that the larger issue is that until the state achieves full equity, the underfunding the foundation budget may not be addressed. • Greg said that because most towns and cities fund education above the foundation budget the costs of increasing the foundation budget are borne by the state. The state would have no motivation to increase the foundation budget: Keeping the foundation budget at low levels means that cities and towns pay an increasing share of school funding over time. Mr. Abrahams said that a significant number of districts received significantly more Chapter 70 aid than they should be receiving and which could lose state aid if the foundation budget increases. 4. Mark E. thanked Mr. Abrahams and observed that he has a remarkable knack of making a very complex and important topic very accessible. 5. State Funding Resolution. John made a motion to postpone the finance committee vote by one week and Karin seconded the motion. The committee approved the motion 5-0. 6. Adjournment: Karin made a motion to adjourn and Terri seconded the motion. The committee approved the motion 5-0 and the meeting was adjourned at 8:29. Respectfully submitted by John Henshaw February 9, 2016 Attachment (1) c. Greg Berthiaume. Mn-FY16-160204-Draft.xIsx /local and remote drives) ===PAGE 3=== Chapter 70 and Net School Spending Lunenburg School District FY17 Preliminary Numbers Mark D. Abrahams, CPA President, The Abrahams Group February 2016 1 ===PAGE 4=== A+B CO ToWnS PENCiLS + » LOWER NEW TAXES STATE TAXES FEDERaL FUNDS =EDUCATON 3 TOWNS" ToWNs* HELP? REFORM NG. LOPES EDUCATION REFORM'S FINANCING FORMULA 2 ===PAGE 5=== Agenda The Big Picture - Chapter 70 Trends • State Totals • Lunenburg - FY17 Foundation formula (Chapter 70 and Net School Spending) • Foundation Budget - Foundation Enrollment • Local District Contributions • Chapter 70 • Net School Spending • Summary and FY16 Comparison 3 ===PAGE 6=== Big Picture Required Net School Spending = Local Contribution + Ch 70 Aid Required Net School Spending > = Foundation Budget 4 ===PAGE 7=== Big Picture • The following chart shows Lunenburg's Chapter 70 trends from FY93 through FY16, FY16 as budgeted - Foundation Enrollment - Foundation budget - Chapter 70 aid - Local contribution - Required and actual net school spending • Statewide, actual net school spending exceeded foundation by about 21% for FY16 5 ===PAGE 8=== State Totals Chapter 70 Trends, FY93 to FY15 STATE TOTAL $14,000,000,000 $12,000,000,000+ a Chapter 70 Aid maza Foundation Budget — Required Net School Spending _ Actual Net School Spending $10,000,000,000 - $8,000,000,000- $6,000,000,000 $4,000,000,000 $2,000,000,000- $0 93 94 95 96 - 97 98 99 00 01 02 03 04 05 Fiscal Year 06 07 08 09 10 11 12 13 14 15 16 6 ===PAGE 9=== State Totals Massachusetts Department of Elementary and Secondary Education Chapter 70 Trends 999 STATE TOTAL FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Foundation Pct Foundation Enrollment Chg Budget 951,287 -0.4 8,014,672,861 949,580 -0.2 8,406,096,436 944,224 0.6, 8,811,314,229 940,985 - 0.3 9,088,557,473 938,333 0.3, 8,921,047,970 937,307 -0.1 9,119,340,580 934,763 9,467,117,141 938,083 9,711,217,585 940,831 9,866,011,313 942,120 0.1 10,090,177,272 Required Pct Local Con- Chg tribution 6.1 4,894,002,779 4.9 5,003,339,440 4.8 5,121,200,339 3.1 5,263,382,896 -1.8 5,321,755,047 2.2 5,430,663,247 3.8 5,610,310,448 2.6 5,779,361,506 1.6 5,855,374,498 2.3 5,957,929,457 Chapter 70 Aid 3,505,192,039 3,725,343,327 3,536,496,064 3,869,526,145 3,850,884,455 3,990,228,732 4,170,667,652 4,300,755,418 • 4,400,237,013 4,511,467,180 Required Actual Pct Net School Pct Net School Co pending iS Chi Spending 8,399,194,818 9,517,716,420 6.3 8,728,682,766 3.9 9,978,220,111 -5.18,657,696,403 -0.8 10,062,456,334 9.49,132,909,041 5.5 10,398,293,771 -0.5, 9,172,69,502 0.4 10,581,836,319 3.6,9,420,891,979 2.7 10,875,258,087 4.59,780,978,100 3.8 11,275,741,785 3.1,10,080,116,924 3.1 11,702,160,878 2.3,10,255,611,511 1.7 12,159,958,326 2.5 10,469,396,637 2.1 12,641,290,711 * Dollars Percent Pct Over/Under Over/ Chg Requirement Under 5.4 1,118,521,601 13.3 4.8 1,249,537,345 14.3 0.8 1,404,759,931 16.2 3.З 1,265,384,730 13.9 1.8. 1,409,196,817 15.4 2.8 1,454,366,108 15.4 3.7 1,494,763,685 15.3 3.8 1,622,043,955 16.1 3.9 1,904,346,815 18.6 4.0 2,171,894,074 20.7 7 ===PAGE 10=== LUNENBURG $18,000,000 $16,000,000- $14,000,000 - $12,000,000 - $10,000,000 - $8,000,000 $6,000,000 - $4,000,000 $2,000,000 $O Big Picture Chapter 70 Trends, FY93 to FY11 a Chapter 70 Aid aza Foundation Budget - Required Net School Spending - Actual Net School Spending - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year FY10 actual net school spending represents the amount budgeted 8 ===PAGE 11=== Chapter 70 Trends FY02 - FY 11 cute me states green box. Or Select from the Dropdown Box below. Chapter 70 Trends 162 LUNENBURG : 999 - Massachusetts Stabe Total 1162 FY02 FY03 FY04 FY05 FY06 FYOT FYD8 FY09 FY10 FY11 10 Yr Trend Foundation Pet Enrollment Chg 1,691 1,675 20% 1,735 1,695 1,663 1,647 1,665 1,641 1,622 1,605 Đ6 5% Required Required Actual Dollars Foundation Pct Percent Local Con- Pet Chapter 70 Pct NetSchool Pct Net School Pct Over/Under Overl Budget Chg tribution 10,376,220 9.2 7.45598 63 Aid Chg Spending (NSS) Chg 3,650,152 Spending Chg Requirement Under 15.0 10,795,850 10,698,654 91 3.1 1,154,607 10.7 7,492,179 4.8 3,650,152 11,950,457 84 0.0" 11,142,331 32 12,682,682 6.1 1,540,351 13.8 11,521,283 7.7 7,895,526 5.4 3,625,757 0.7" 11,521,283 11,538,450 0.1" 8,179,359 3.6 3.4 12,577,557 -0.8 1,056,274 92 3,625,757 11,805,116 25 12,477,955 -0.8 11,716,392 1.5 8,601,526 5.2 672,839 5.7 3,708,907 23" 12,310,433 4.8 13" 13,976,437 12.0 1,666,004 13.5 12,276,374 8,871,625 3.1 3,921,700 12,793,325 13,121,501 39' 14,561,883 6.9 42 1,768,558 13.8 8,885,020 02, 13,199,279 13,675,383 4,314,259 32" 42 13,219,657 14,903,224 23 1,703,945 129 9,084,809 22 4,134,848 02 15,155,736 1.7 1,936,079 14.6 13,799,996 9,022,501 -0.7 4,528,374 25 13,414,483 28' 13,550,875 15,471,660 21 1,920,785 142 8,836,567 -21 4,498,396 0.7 3,038,263 29% 1,690,869 24% 13,334,983 -1.6 15,607,245 0.9 2,272,282 17.0 848,244 23% 2,539,113 23.5% 3,656,787.6" 31% 1,117,675 1.0 9 ===PAGE 12=== Chapter 70 Trends FY02 - FY 15 Chapter 70 Trends, FY93 to FY15 LUNENBURG $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 - $10,000,000 - $8,000,000 - $6,000,000 $4,000,000 $2,000,000 $0 m Chapter 70 Aid •a Foundation Budget - Required Net School Spending Actual Net School Spending 93 94 95 96 97 98 01 + 08 09 10 11 121314 15 16 03 04 05 06 07 Fiscal Year 10 ===PAGE 13=== Chapter 70 Trends FY07 - FY 15 162 LUNENBURG FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Foundation Pct Enrollment Chg 1,647 -1.0 1,665 1.1 1,641 -1.4 1,622 - 1.2 1,605 -1.0 1,578 -1.7 1,630 3.3 1,607 -1.4 1,627 1.2 1,647 1.2 Required Foundation Pct Local Con- Budget Chg tribution 12,276,374 4.8 8,871,625 13,121,501 6.9 8,885,020 13,675,383 4.2 9,084,809 13,799,998 0.9 9,022,501 13,414,483 -2.8 8,836,567 13,457,817 0.3 8,981,951 14,298,145 6.2 9,188,886 14,546,536 1.7 9,433,283 14,945,463 27 9,374,156 15,341,250 2.6 9,506,767 Chapter 70 Aid 3,921,700 4,314,259 4,134,848 4,528,374 4,498,396 4,522,545 5,219,937 5,354,696 5,605,872 5,834,483 Required Pct Net School Pct Chg Spending (NSS) Chg 5.7 12,793,325 3.9 10.0 13,199,279 3.2 -4.2 13,219,657 13,550,875 -0.7 13,334,963 13,504,496 15.4 2.6 4.7 4.1 14,408,823 14,787,979 -1.6 1.3 6.7 2.6 14,980,028 15,341,250 2.4 Actual Net School Spending 14,561,883 14,903,224 15,155,736 15,471,660 15,548,411 16,265,437 16,958,752 17,672,191 18,452,511 18,925,181 * Dollars Percent Pct Over/Under Over/ Chg Requirement Under 4.2 1,768,558 13.8 2.3 1,703,945 12.9 1.7 1,936,079 14.6 21 1,920,785 14.2 0.5 2,213,448 16.6 4.6 2,760,941 20.4 4.3 2,549,929 17.7 2,884.212 19.5 4.4 2.6 3,472,483 23.2 3,583,931 23.4 11 ===PAGE 14=== 162 LUNENBURG Foundation Enrollment 1 Administration 2 Instructional Leadership 3 Classroom and Specialist Teachers 4 Other Teaching Senices 5 Professional Development 6 Instuctional Equipment & Tech 7 Guidance and Psychological 8 Pupil Services 9 Operations and Maintenance 10 Employee Benefits/Fixed Charges 11 Special Ed Tuition 12 Total 13 Wage Adjustment Factor 14 Economically Disadvantaged Decile Foundation Budget FY17 Chapter 70 Foundation Budget ............. Case Foundation Components --.. (4) (1) (2) (3) Pre- - indergrn-.. School HalfDay Full-Day 38 0 99 Elementary 629 (5) Jr High/ Middle 383 (6) High School 477 6,916 12,491 57,276 14,690 2,265 8,290 4,167 1,658 15,905 14,337 0 0 0 36,036 65,085 298,436 76,543 11,809 43,195 21,717 8,640 82,872 74,697 228,956 413,517 1,896,102 486,318 75,040 274,439 137,977 82,336 526,530 474,625 139,412 251,792 1,016,003 213,159 49,530 167,107 111,832 81,889 347,580 274,780 173,628 313,589 1,860,820 221,013 59,811 332,994 174,592 235,175 419,727 328,782 137,995 100.0% 4 0 719,029 4,595,839 2,653,083 4,120,130 (7) (8) ELL ELL PK K Half 0 0 0 0 0 0 0 0 0 (9) ELL KF • 12 24 8,736 15,778 108,959 14,837 3,875 10,471 7,008 3,142 27,198 22,781 222,785 (10) Voca. fional 364 657 6,632 463 207 1,222 366 493 1,647 1,119 13,171 -- Incremental Costs Above The Base. (11) (12) (13) Special ed Special Ed Economically In District Outof Dist Disadvantaged 60 16 292 150,736 497,390 464,406 23,994 20,943 0 0 168,379 190,753 0 11,516,501 40,196 0 614 3381642 889,963 19,587 0 0 0 137,450 99,339 0 42,452 1,137,300 Foundation Budget per Pupil TOTAL* 1,632 784,980 1,072,910 6,631,581 1,492,043 246,118 858,660 457,659 413,333 1.727,287 1,472,213 381,642 15,538,425 9,521 12 ===PAGE 15=== Local Required Contribution 162 Lunenburg Effort Goal 1) 2014 equalized valuation 2) Property percentage 3) Local effort from property wealth 4) 2013 income 5) Income percentage 6) Local effort from income 7) Combined effort yield (row 3+ row 6) 8) Foundation budget FY17 9) Maximum local contribution (82.5% * row 8) 10) Target local contribution (lesser of row 7 or row 9) 11) Target local share (row 10 as % of row 8) 12) Target aid share (100% minus row 11) 1,183,701,600 0.3792% 4,488,296 368,099,000 1.4701% 5,411,329 9,899,625 16,932,749 13,969,518 9,899,625 58.46% 41.54% FY17 Increments Toward Goal 13) Required local contribution FY16 14) Municipal revenue growth factor (DOR) 15) FY17 preliminary contribution (13 x 14) 16) Preliminary contribution pot of foundation (15/8) If preliminary contribution is above the target share: 17) Excess local effort (15 - 10) 18) 70% reduction toward target (17 x 70%) 19) FY17 required local contribution (15 - 18), capped at 90% of foundation 20) Contribution as percentage of foundation (19 / 8) If preliminary contribution is below the target share: 21) Shortfall from target local share (11 - 16) 22) Added increment toward target (13 × 1% or 2%)* *1% if shortfall is between 2.5% and 7.5%; 2% if shortfall > 7.5% 23) Shortfall from target after adding increment (10 - 15 - 22) 24) FY17 required local contribution (15 + 22) 25) Contribution as percentage of foundation (24 / 8) 10,245,328 3.91% 10,645,920 62.87% 746,295 522,407 10,123,514 59.79 13 ===PAGE 16=== MRGF LEVY LIMIT BASE FY2015 Levy Limit Prior to Exclusions Impact of FY1994 FY2015 Overrides on FY2015 Limit FY2015 Limit Adjusted for Overrides INCREASE IN YUMT GROWTH DUE TO NEW GROWTH • Without Certified Growth Fiscal Year FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Exclusions, Overides CH 653 New Adjusted Growth for 653 15,367,361 15,940,277 16,786,895 17,529,866 18,265,683 1,658,903 1,142,890 810,484 1,051,710 1,288,881 188,732 448,111 321,862 287,571 282,484 verage of Last Three Yer west Three of Last Four Yed Maximum, Last Three Years Average of Two Smaller Years Difference, Maximum Minus 2 Yr Average Percent Increase in Now Growth for MRGF "Adopted CH 653 Massachusetts Department of Revenue Division of Local Services Municipal Revenue Growth Factor (MRGF) Calculation, FY2016 LUNENBURG AMOUNT 19,425,844 1,160.161 18,285,683 Percentage of Previou: Year's Limit 1.23% 2.81% 1.92% 1.70% 1.44% 1.69% 1.69% 1.92% 1.57% 0.35% 1.69% 5. CHANGE IN REVENUE SHARING Pretend tray comment ne RECURRING LOCAL RECEIPTS Motor Vehicle Excise other Excise Penalties and Interest Payments in Lieu Fines and Forfeits westment Income Ascellaneous Recurrin: TOTAL SUMMARY 2015 MRGF Levy Lim 2015 General Revenue Sharin 2014 Budgeted Recurring Local Recelf Ented levy Ceili 015 Levy Lir Y2016 Estimated New Growt: Y2016 Estimated Levy Limil FY2016 General Revenue Sharing FY2015 Budgeted Recurring Local Receipts Total commated conen minicipal. Revenues Change, Base to Current Revenues FY2016 Municipai Revenue Growth Factor Fiscal Year 2015 Cherry Sheet 940,993 47,844 988,827 FY2014 Budget 1.292,605 66,625 165,446 1,681 28,000 16,000 50,000 1,620,357 Amount 18,984,809 988,827 1,620,357 01216931993 28,190,826 19,459,429 320,843 19,780,272 1,022,702 1,815,681 022610668 1,024,062 Fiscalear Estimates 974,858 47,844 1,022,702 FY2015 Budget 1,427,000 85,000 139,000 1,681 49,000 15,000 49,000 1,815,681 Pct cha 4.19 3.43 12.05 4.75 4.75 14 ===PAGE 17=== Local Required District Contributions Apportionment of Local Contribution Across School Districts 162 Lunenburg Lunenburg Prior Year Data (for comparison purposes) 1 FY16 foundation enrollment 2 FY16 foundation budget 3 Each districis share ofmunicipality's combined FY16 foundation 4 FY16 required contribution 1,647 15,341,250 92.79% 9,506,767 FY17 apportionment of contribution among community's districts 5 FY17 total napportioned required contribuion (municipal contribution" sheetrow 19 or 24) 6 FY17 foundation enrollment 7 FY17 foundation budget 8 Each disticts share of municipality's total FY17 foundation 9 FY17 Required Contribution 15,538,425 91.77% 9,289,895 10 Change FY17 to FY16 (9 - 4) -216,872 Montachusett Combined Total for All Districts 78 1,191,829 7.21% 738,561 1,725 16,533,079 100.00% 10,245,328 91 1,394,324 8.23% 833,619 95,058 10,123,514 1,723 16,932,749 100.00% 10,123,514 -121,814 15 ===PAGE 18=== Chapter 70 162 Lunenburg Aid Calculation FY17 Prior Year Aid 1 Chapter 70 FY 16 Foundation Aid 2 Foundation budget FY 17 3 Required district contribution FY17 4 Foundation aid (2 -3) 5 Increase over FY16 (4 - 1) Minimum Aid 6 Minimum $20 per pupil increase Non-Operating District Reduction to Foundation 7 Reduction to foundation FY17 Chapter 70 Aid 8 sum of line 1, 5 minus 7 5,834,483 15,538,425 9,289,895 6,248,530 414,04 6,248,530 16 ===PAGE 19=== Required Net School Spending and FY16 and 5 Year Trends 162 LUNENBURG Comparison to FY16 Enrollment Foundation budget Required district contribution Chapter 70 aid Required net school spending (NSS) Target aid share C70 % of foundation Required NSS % of foundation 20 15 10 5 FY16 1,647 15,341,250 9,506,767 8,834,483 15,341,250 39.71% 38.03% 100.00% Five Year Trend FY17 1,632 15,538,425 9,289,895 6,248,539 15,538,425 41.54% 40.21% 100.00% Change -15 197,175 -216,872 414,047 197,175 Foundation Budget • FY13 a FY14 Required District Contribution • FY15 = FY16 C70 Aid * FY17 Pct Chg -0.91% 1.29% -2.28% 7.10% 1.29% 17 ===PAGE 20=== For Further Information Mark D. Abrahams, CPA President, The Abrahams Group 508 788-9172 Bettergov@aol.com www.theabrahamsgroup.com 18 ======================================================================================== DOCUMENT : 2016-02-11-agenda-2229.txt BOARD : finance-committee DATE : 2016-02-11 KIND : agenda OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-02-11-agenda-2229.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_02112016-2229 ======================================================================================== ===PAGE 1=== NOTI CE of FINANCE COMMITTEE MEETING on February 11, 2016 7:00 PM Town Hall IN ACCORDANCE WITH THE REQUIREMENTS O F THE OPEN MEETING LAW, PLEASE BE ADVISED THAT THIS MEETING IS BEING RECORDED AND BROADCAST OVER LUNENBURG PUBLIC ACCESS. AGENDA 1. Open meeting 2. Communications • Public Comment • New Communications 3. Town Manager’s Preliminary Budget Recommendation 4. Town Manager Reports 5. Chapter 70 Funding Resolution 6. Review Minutes 7. Budget Goals and Opportunities 8. Committee/Department Updates Capital Planning – John; DPW and Parks – John; Pub lic Access Committee – John Library – Terri; Public Safety – Terri; Sewer Commi ssion –Jay; Green Community Committee – Jay; School Committee – Karin; Monty Te ch – Karin; Council on Aging – Karin; School Building Committee – Mark; Building R euse –Mark 9. Ongoing Business • Pavement Management Plan • Contract commitments (e.g., sick leave buy back) • Sales of surplus property – Status 10. Next Meetings • Feb 18, 2016, 7:00 p.m. – Town Hall – Special Meet ing o Police and Fire Budget Review • Feb 25, 2016, 7:00 p.m. – Town Hall – Regularly Sc heduled Meeting o Department Budget Reviews 11. Adjournment ======================================================================================== DOCUMENT : 2016-02-11-minutes-2229.txt BOARD : finance-committee DATE : 2016-02-11 KIND : minutes OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-02-11-minutes-2229.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_02112016-2229 ======================================================================================== ===OCR macOS Vision=== ===PAGE 1=== Finance Committee: Mark Erickson, Chairman Terri Burchfield, Vice-Chairman John Henshaw, Secretary Karin Menard Jay Simeone 17 Main Street, P.O. Box 135 Lunenburg, MA 01462-0135 978.582.4139 FAX 978.582.4148 RECEIVED & FILED Lunenburg Finance Committee Minutes February 11, 2016 FEB 18 2016 Location: Town Hall LUNENBURG TOWN CLERK OFFICE Present: Mark Erickson, Terri Burchfield, Jay Simeone, Karin Menard, John Henshaw Also Present: Kerry Lafleur, Town Manager, Karen Brochu, Town Financial Manager/Director of Municipal Finance 1) Mark E. called the Finance Committee meeting to order at 7:00 pm. He announced that this meeting is broadcast on the Lunenburg Public Access Cable Channel. The video recording is posted on YouTube at https://www.youtube.com/user/LunenburgAccess and select Finance Committee 02.11.16. 2) Comments: a. Public: None b. New Communications: i) The Planning Board will meet at Town Hall on February 22 at 6:35 pm at Town Hall to hear and discuss a modification to a site plan review concerning the facade and proposed signage of a pet services facility at 339 Electric Avenue. il) Mark stated that the Finance Committee currently has five members--two members short of a full committee and only one member more than the quorum. It's a great opportunity to join the committee at the beginning of the budget process and learn a lot about Town finances. He invited anyone interested in joining to fill out a talent bank form at the Town Clerk's office. iii) Mark circulated the February issue of The Beacon to the committee. 3) Town Manager's Preliminary FY17 Budget Recommendation presented by Kerry Lafleur Note: These minutes are an overview of the Town Manager's budget recommendations for FY2017 with a focus on her explanation and rationale. For specifics details a link this presentation, the Capital Plan, and the Debt Service Schedule is EY2017 Budget Recommendation A printed version of this presentation is attached to the copy of these minutes in the Town Clerk's office. i) The recommended budget shows what the Town can afford, not what we want or need; when department heads make their budget presentations they will describe how these funding levels would affect services. b. This budget: i) satisfies the Town's financial policies, il) funds operating from recurring revenues, ili) funds all contractual obligations, iv) doesn't draw on free cash to fund operations, nor on stabilization funds. v) includes everything in the Governor's budget except the proposed increase in Chapter 70 aid as Kerry is concerned about push-back on this during the legislative process. • Note: If the Governor's proposed increase came to pass, that would mean about $291,000 in additional Chapter 70 aid. If the Town received any additional Chapter 70 aid, Kerry recommends it go to the school department. vi) includes $119,000 in 40S aid, which had been uncertain but has become more settled at least for FY17. Mn-Fy16-160211-Draft.xIsx (local and remote drives) 1 of 3 ===PAGE 2=== c. Figures not yet settled, upside potential, or challenges the Town faces: i) Unsettled issues: The level of state aid has not been finalized. • Monty Tech assessment has not been formally received. • It is difficult to support any additional personnel until the Town can quantify future costs in particular of employees. Data on this has been hard to gather. ii) Upside Potential in revenues: • New growth may exceed budgeted amount. • Motor Vehicle Excise tax, ambulance fees, and local option meals tax are growing fast. ili) Challenges: (See point 4 below for more information and for other future challenges. • Health insurance renewal rates, the prospect of a high tax on the PPO health insurance plan starting in 2020, and the annual increases of 8% to 10% in the retirement assessment. 4) Kerry's Recommendations of Issues to Address: Discuss and/or decide the principle goal of the Town's budget process: o arrive at a balanced budget and rund service levels from that, ol to aim at a different level of service and work toward a balanced budget Revisit the Debt Policy section of the Town's Financial Policies in light of the information needs and perspective of the rating agencies. Karen Brochu is working on a draft of this policy for the consideration of the committee. L Develop a more comprehensive capital plan going forward, which would include establishing guidelines linking the timing and amount of non-exempt borrowing available to fund large capital projects indexed to perhaps FY16 non-exempt debt levels. Per Mark's observation, this is within the levels set by the financial policy. See presentation pages 13-15. • To set the stage, the Town should not borrow to fund capital projects until that more comprehensive plan is in place. • Health Insurance: • FY17 renewal increase is 12.8% > Starting in FY20, the federal government will impose a 40% tax on high cost plans, and the Town wants to avoid paying this tax. There is some risk with the Town's PPO plans assuming inflation of around 8% per year. • The retirement assessment is an 8.7% increase this year and the Town will see 8% to 10% increases in this assessment until 2040 when the Town's unfunded liability will be paid off. See presentation pages 16 & 17. The Town will pay out pension costs of nearly $166,000 in FY17. • The Town's total unfunded pension liability is $14,700,000; on an annual basis the payment will be $900,000 in FY17. This will increase each year. 5) Chapter 70 Funding Resolution: a. John moved that the Lunenburg Finance Committee call on the Massachusetts Legislature and the Governor of Massachusetts to fully fund and adopt the recommendations of the Foundation Budget Review Commission, Karin seconded. Mark briefly listed the focus of the recommended changes was special education, English language learners, and the impact of benefits in the formulas. The committee approved the motion 5-0. 6) Review of Minutes: a. Minutes of January 28, 2016 Meeting: Terri made a motion to approve these minutes and Jay seconded the motion. The committee approved the motion by a vote of 4-0. Karin abstained as she did not attend the meeting. b. Minutes of February 4, 2016 Meeting: Terri made a motion to approve these minutes, and Karin seconded the motion. The committee approved the motion by a vote of 5-0. 7) Budget Goals and Opportunities: There was no discussion at this meeting. Mn-FY16-160211-Draft.xIsx (local and remote drives) 2of3 ===PAGE 3=== 8) Committee and Department Updates: Committee/Department DPW-John H. Capital Planning-John H. Public Access Cable-John H. Library-Terri B. Public Safety-Terri B. Schools-Karin M. Monty Tech-Karin M. Council on Aging-Karin M. Sewer Commission —Jay S. Green Task Force-Jay S. School Bldg. Comm.--Mark E. Building Re-Use-Mark E. Update No report. No report. The PACC postponed its meeting of Monday, February 8 due to the snow storm. The meeting was rescheduled to Monday, February 22. No report. Chief Marino wanted to make sure it was clear how the vehicles were being recycled and that there were no lingering questions or issues. No report. No report. No report. No report. No report. At the 2/10 meeting there was a discussion on the comparison of turf fields with sod fields in terms of cost and safety. There is more work to be done on this. The committee voted to approve change order #8 for electric work, revised door entry system, and integrated walk-in freezers at a cost of $17,000, bringing the total charges on the contingency account to a little over $200,.000. Construction is 79% complete. The committee recommended to the BOS that the Town to re- purpose TC. Passios for municipal offices, either in whole or in 9) Next meeting: February 18, Police and Fire Departments present their budgets. 10) Adjournment: Terri made a motion to adjourn and Jay seconded the motion. The committee approved the motion 5-0 and the meeting was adjourned at 8:50 pm. Respectfully submitted by John Henshaw February 17, 2016 Attachment: Town Manager's Proposed Budget Recommendation FY2017 Mn-FY16-160211-Draft.xIsx (local and remote drives) 3 of 3 ===PAGE 4=== Town of Lunenburg Proposed Budget Recommendation - FY2017 February 11, 2016 Kerry A. Lafleur, Town Manager FY2017 Recommendation - Disclaimers • Recommendation still contains a number of assumptions, but fewer than the Financial Forecast. • Assumptions will firm up as we get closer to Town Meeting- assessments insurance renewals • Uncertainty around State Aid 1 ===PAGE 5=== FY2017 Recommendation • Focus of the presentation is to talk more about what we can afford versus what we need or want - Target Budgets • The department manager's focus when presenting is to talk about what each department needs or wants to best fulfill it's mission • Define terms: Municipal and School Preparing the FY2017 Recommendation • Going forward, more discussion on budgetary goals would be helpful • Is the main goal solely to produce a balanced budget? • Are we attempting to get to some other service level? • Matching dollars with service level needs, i.e. no "flat" increases • Minimal Strategic Investment for Maximum Impact- Administration (additional hours in Assesso's Office & combined position in Conservation) & Transportation • Recommendation is roughly equivalent to FY17 Target Budgets with notable exceptions: • Debt Service • Unclassified & Retirement Assessment 2 ===PAGE 6=== FY2017 Recommendation • Funding to cover all contractual salary increases • Budget Targets are roughly equivalent to level services • Meets Town's financial policies • Deposit back to Stabilization Fund to get to 5% • Balanced budget proposal is based upon use of recurring revenues for operating costs, meaning there is NO request for a draw on either Free Cash or the Stabilization Fund FY2017 Recommendation - Challenges • Revenue: - State Aid • Expenditure: • No Health Insurance Renewal • No Monty Tech Assessment - Retirement Assessment, received but big increase 3 ===PAGE 7=== FY2017- Revenue Estimates • Sources of Revenue • Property Tax • State Aid/ Cherry Sheet • Local Receipts • Available Funds FY2017- Revenue Estimates Local Receipts, $2,858,802;_ 7.75% Available Funds, 1,804,186; votery a 245.9511 ===PAGE 8=== FY2017 Revenue Estimates Resense State Hid Local Kecelpta Available Funds F7201 FY1015 Appropriated Aerecap After Recap FY2017 FY2017 FY:017 Forecast Targel IN Dolarincrease Recommend. ever Prick Year S.20245,882 6 22105028 5.23.524,025 6 24315,73P 6 26315,739 S 24,579842 6 1,053,616 $ 635510157194530S 7513192 6 2323,091 S 7,699091 S 5,546,233. 6 127,542 1: 2920 1 4032) 3002 8 20097 5 120811 104008 16791 LS 31,511,361 $ 30,203066 5 35,433425. 536285,363 5 36,613,305 - 5 36,868,863 5 1435,435 FY2017- Property Tax • Property Tax - • Prior Year base plus 2 ½% increase ($525,979) • Estimate for New Growth ($300,000) - next slide • Overrides & Exclusions- capital, debt • No Override proposed • Debt Exclusion - increase to cover MS/HS Construction Project Debt Service, total = $2,714,483 • MS/HS Project = $1,893,018 (est. impact on Avg AV = $405.51) • Other = $821,465 Overall Increase Is 4.49%; 0.93% of which is to support new exempt debt. State Law requires you to assume 100% collection rate Estimate for FY2017 = $24,579,642 5 ===PAGE 9=== FY2017- New Growth 20.000 - 140000 3 ...... _27.49 eative Cocatrudio .......5:5000 OH Gronth Emeras Prese ..Antage Lod Value .33,500 Valen 2000.000 e 171,00 21:,400 _ 12000 s. Poteesial Grants Vaive PostarTAx .2027.000 3. ... 43.300 5 Completo 100 5 potentia coits Vain * Posental Tax 80003. 212.000 $ 130200 3. Urt Me sorten 172000 2500,500 100 3 1,521 alasses servisa 1 18,220,700 FY2017- State Aid • Governor's Budget, House 2, was released on 01.27.16 • During his tenure, Gov. Baker has shown himself to be an advocate for cities & towns • Budget Proposal provides targeted funding to meet key goals which directly impact cities & towns Investing lu Great Communitles: increases restricted local aid by 4.3% equal to 100% of the consensus revenue grossh rate for state lax revenue. Continues the Commialty Compact program to proside technical assistanco to over 100 commusities in financial planning. economic derelopment, resionalizaion and antes program to crea a domestic violence prevention training toolkit for conmumties. Maldug Massacbusetts Schools Great: Increaser Chapter 70 educaion funding by 572,1 million. Supports $13.6 million for a redesigned quality kinder forten grant program to assist commusinies iz achieving tuition-free. Adds over $20 million for a revised charter school reimbursement formula to reimturse touns. Supports the development of a next generation MCAS mith S5.6 million. Directs frads to support children and families who are mos a risk in anumber of ways, including SS.3 million for over 1,500 rouchers for the Department of Transitional Assistance's (DT A) Stabilizing the Working Poor initiative: $4.3 million to fund 600 childcare touchers for chuldren in DCE care; St million for qualiy improvements at Early Education and Care for bener assessmens, accrediacion assistance, and professional development. 6 ===PAGE 10=== FY2017- State Aid • Included Governor's Proposal for all lines except Chapter 70 • TM Recommendation: 2.1% increase in Chapter 70 = $122,524 • Governor's Proposal includes 70% reduction in "Over Effort." Current is 50% • Most communities will only see minimum aid of $20/ student • MMA is lobbying for minimum aid of $100/ student * If Governor's Proposal holds, that means an additional $291,593 • 4.3% UGGA ($41,919) ; 23% lower than FY2009, $300k • About $560k lower if aid had been increased 2.5%/ year • 40S Smart Growth appears to be 50% of FY2016 eligibility • Total estimate for FY17 = $7,646,233 an increase of 1.7% FY2017 - State Aid $9,000,000 $8,000,000 57,00,000 $6,000,000 $5,000,000 $1,000,000 $3,000,000 $2,000,000 $1,000,000 a Chapter 70 a All Olber EUGGA FY 2007 $ 2006: $ 2009 $ 2010: S 2011 S 2012 $ 2013, $ 2014 $ 2015 $ 2016: S 2017 S Foundationi AllOter Chaper70 Dollar Increase Enrollment) 1,295,240 S 696,354 $ 3.921,700 16-17 1,316,140 $ - 665773: 3 431.29 S 382550. 1865 1,316,140: $ 701,456 4,620,790 303.531 1641 831,318: S 555416S 4,528,374 .... (92,416) 094,449 $ 589,474 4,498,396 $ (29,978) 1N22 828,T77 : $ 584,063 4522,645 $ 24,149 1505 1576 894,449 $ 604.373 $ .5218.007: S. 894,449 $ 806,258 897.392.... 16:30 5354,696: 5 134,759 1607 915,E02 $ 673.166. $ 5,606,672: $ 251,176 1627 940.983 $ 743,026 $ 5834,483 $ 226,611 1,016,717: $ 872449 $ 6,243,530! $ 414,047. 7 ===PAGE 11=== FY2017- Local Receipts • Local Receipts = increased $167,032, or 6.21% • Motor Vehicle Excise Tax, licenses, permits, fees, fines, investment income • Elastic Revenues- very dependent upon the economy • MVX is the largest component; first indication of what is happening is through Commitment #1, issued in February • Commitment was up $165,040, or 14.5% (prior year was +5.6%) • Estimate for FY2017, 5.0% increase (each 0.5% = $7,350) FY2017 Revenue Estimates • Local Receipts • 2% increase, except where noted • $47k increase in Dept Revenue (Ambulance) • Local Options Meals Tax, collections strong, 20%; $19,680 • Solar Net Metering Credits - $120k • Department Revenue- Schools, decreased to eliminate FFLAC Rental Income. If lease is extended, fee will offset operational costs, currently not included in budget recommendation 8 ===PAGE 12=== FY2017- Revenue Estimates • Available Funds • Catch All Category Some one-time revenues, causing a wide variance from year t rear; difficult to make comparisons between vear • SBA Reimbursement - $534,198 • Water & Sewer Betterments • Fully fund associated debt service & related costs • Sewer Enterprise Fund to fund Indirect Costs • Prior Year Unexpended Articles for Capital, $0 • Free Cash Appropriation to partially offset Capital, $250k • School Transportation Fee Offset, $31,623 FY2016- Revenue Estimates Summary Property Tax State Add Local Receipts Avalable Funds total; Revenue Source PY Unused Lery Property Tar Nety Growth State Aid Local Receipti Available Funda total for Operations S Exempt Debt Seccice S. Annual Total: S S 33703066 $ 35.03125 |S 36295,315|S 36119315 5 36859862:9 2485138 Dollar Aurount. 10,000 $25.979 300,000 127,41 167032| 105449 1,235802 219.636 1,455,438 •Opportunities: •Uncertainty around State Aid •Potential for slightly higher New Growth •Potential to increase MVX estimate ===PAGE 13=== Expenditures — what & who? • Service Provider Organization • Demand for services doesn't decrease due to lack of funding • Town provides services • Services to students • Services to seniors • Services to residents • Focus on service levels, not employees • Allocating resources to services Expenditures - how? •• Expenditures are divided into: • Functional Categories (Departments) - Non-Appropriated Costs • Sewer Enterprise Fund • Water Enterprise Fund • Solid Waste Disposal Enterprise Fund • Other Warrant Articles with a Financial Impact 10 ===PAGE 14=== Forecast- Projected Deficits •Forecast: Expenditures FY2017 Forecast 2018 72019192020 FY2020 5 33,003056 $ 35433423 $ 36295345 $ 35,154S65 5 33102334 | $ 39,071,691 | 5 39999,70 53507536S 33483423/S 36705275 5.37366952 5 13661262 9 39916004 5 41.19319 Differess: 5 201211 5 •Target: Revenue Expenditures Dillitence: S. 5 20120 5 434235(70313 5 3614345 8 36,9563 201,211 : $ (N10,133) S »Each department was given a Target based upon Forecast Vo additional deficit created between Target & Recommendation because I was able to make a couple of revenue adjustments + $143,518 (net is $107,472 if you back out exempt debt & sewer debt Above Target Requests total $766,359, none of which have been funded. 21 Forecast vs Target Revenne Property Tax State Aid Local Receipts Available Funds total: 260,903 (26,821) 67,878 S 141,559: 143,518 «Property Tax: $235,902, exempt tax & $25,000, additional New Growth •State Aid: everything but Chapter 70 •Local Receipts: Adjustments in MVX, Ambulance Receipts, Meals Tax •Available Funds: Sewer Betterments & Sewer Indirects 11 ===PAGE 15=== Expenditures • Above Target Requests: • Police Department - $207k for 3 Patrol Officers & additional funding • Fire Department - $210k for 24/7 ambulance coverage in Target, but not included in Recommended Budget • Dispatch- $35k for weekend coverage of Desk • Lunenburg Public Schools - $313k to fund Superintendent/ School Committee Recommended Budget FY2017 All Expenditures Non Appropriated, — 4.39% Human Services, 1.78% Capital, 1.68%. General Govt, 3.68% _ Other, 0.23% Employee Benefits, 10.03%_. Debt Service, 13.17%J Public Safety, 7.35% L Public Works, 6.21% 12 ===PAGE 16=== FY2017 Expenditures- Non-Discretionary Debt Unclassified Retirement Assessment Cherry Sheet Charges Less-Discretionary Education Public Safety DPW Discretionary Solid Waste Library & Senior Center Administration & Land L: $ 4,856,831 2,648,151 1,051,795 1,620,392 $ 18,991,679 2,711,010 2,115,147 S 174,150 482,685 1,531,684 $ 10,177,169 28.13% 23,817,836 65.83% 2,188,518 36,183,523 6.05% 100.00% FY2017 Capital Priority 1. Order: CP. Trackar PD18-12 PD16-07 LPS16-21 LP$16-20 DPW17-01 DPW16-11 DPW17-04 DPW16.07 TECH16-25 FD16-13 LP $16-19 PD 16-16 11 12 • Stam: Police Veticle, Units 207 & 210 Bureprod Vests. 29 Oftcers THMS. Phone System Replacement THMS. Intercom Replacement i Townsend Harbor Road Bridge Cach Basin Cleaner Attachment Mack Dump 6-Wheel, flow & sand GiC Cump 350(1-on play) Torn Departments (Techanciogy) Pickup. 4x 4(11) Replacentent (2009) THIS. Astesios Abatemerd/ Celling Replac entent 4Wheal Drive, All Terrain Off Road Enforcement Vehicle Total: $ 07.000: 7,500, S 22.000 S 22,000 | S 15,000 $ 87.125 S 194,750; S 63,300 $ 30,800 70,000 S 145.000: S 16,500 S 780,975 Cumulative: Cost 107.000 124,500 146,500 165.500 183.500 270.625 455,378 618.675 549.475 819.476: 764,475 780,975 «Recommendation only includes funding of items 1 - 10. wIf additional funding becomes available, other than Chapter 70, I recommend that it go toward funding items 11 & 12 I recommend agalnst borrowing for capital as was done in FY15 & 16. 13 ===PAGE 17=== FY2017 Expenditures- Non-Discretionary- Debt Service • Total appropriation = $4,856,831 • Increase of $219,636 • Includes annual payments for FY15 & 16 Capital - $258,047 • Includes annual payments on $33.625M for School Construction - $1,893,018 FY2015! Total: Debt Service FY2017 ;, After Recap FY2017 Target TM Reccom. 52975,055 5 4557920|5 4523519 5 4.523,519 S 4.556,531 offsets: Tax, Outside Prop 21/2 Sewer Betterment Water Betterment Septic Receipts. Bond Prentium MSBA Net Impact General Fund 51031,125 8 2491847 5. 2478581 S 2478551 S . 271/53 770,439 5756,575 S 745,411: 5 7aS,411| s S+S,585 62,751|$ 62,781 S 10,565 5 108S10,863S 62231 5. 103661g 62,781 63251 S.. 10,369 3,278 | S - S 2424: 5 2,42+|s 2.*24 334799 S 334199 5. 33199553299 S 53-1,198 565,465 5 698,317 |S. 686.227 5. 696,227 S 653,491 Debt Service, All Outstanding Issues Exempt vs. Non-Exempt Comparison (Net of Other Funding Sources) Non Exempt * (xenal $1,000,000.00 $9,500,000.00 $3,000,000.(0 $2,500,000.00 $2,000,000.00 $1,500,000 0) 51,000,000.00 $500, 000.00 s. Notes: 1. All existing Non-Exempt Debt with Impact to the Cuerating Budget/s pald oft as of june 30, 2029. 2. Signtlicant drop In Non-Exempt Debt with Impactto the Operating Budget in FY2018 ($144,644); FY2019 (5129,801); FY2020 ($163,079); and FY2024 ($118,304) 14 ===PAGE 18=== Non-Exempt Debt Redy: Deal-itere Secretanet O281 13: NO SEN 16,2300 S 1e625 (0:3 %B00'5 Non-Exempt Debt AllOuistanding Coersing Fussel Gronerusina 6055a47er0 BFERO2E20E BEE FEE Ca0300 313020303 860222122 S530000,03 15 ===PAGE 19=== FY2017 Expenditures, Unclassified • Insurances- • 3.5% increase in General Liability & 3.5% Worker's Compensation • 2 years of 0%; in FY15, locked in no greater than 2.5% for FY2016 - 5% increase Police/ Fire IOD • Health Insurance Renewal at the cap of 12.8%, due to poor 24-month loss ratio * Net Impact to Municipal is about $178k which is about 10%. Retirees renewal is on a calendar year basis, and has generally been more favorable. • Net Impact to School is about $158k (in recommendation, based on 8%) + $96k for additional 4.8% (not in recommendation) Public Employee Committee Agreement expires June 30, 2016. New Agreement must contemplate plan design change to reduce the FY17 renewal and in preparation for implementation of Cadillac Tax - Other Post Employment Benefits Unfunded Liability -Biennial Valuation + funding to work with Actuary to draft a funding strategy FY2017 Expenditures, Retirement Assessment Summary of Member Dala Active Members Vauation Sabry Avarage Sals; Retired Mombers & Beneúciaries Total Annust PanalonS. Average Annual Pension .is. Disabled Members. Accidental Total Annuat Pansion ....Aserace Annual Pansion.....S Disabled Atembers. Ordinary Average Age Total Annual Pension Average Annual Pansan hacive Members Annuity Saings Fund Momber Unit 190.59 5030 12.10 4.438.576.00 $ 37,413003 78.00 73.50 1.291.336.00 S 1450200 S 7.00 68.50 179.65200/$ 25.050.00 S 1.00 571800 S 5.718.00.5 43.00 329.061.00 S 6411.00 ... 43.20 10.50 252222491,00 39,437.00 .....2040.00 74.10 $9.133.380.00 ....17.318.00 242.00 63.50 6,540,337.00 ...30.951.00 25.00 63.40 593,903.00 16,969.00 16 ===PAGE 20=== Retirement Assessment Unfunded Actuarial Accrued Liability as of January 1, 2014. Actuarial Accrued Liability Actino Members Disabled Meniters, Accidental Disabled Members. Crunary inactice Members coral AAL- Unfunded Actuarial Accrred Liablity FY2017 Aspassment Employer Mermal Gos: (Beneft - Employee Contrib + Admin Costs) Payment on UNL Paymeni on 2002 ERI Payment on 2003 ERI...... Payment on 2010 ERI Total Assessmert: early payment discount 11.404.611: $ 12.670.335 S 1.699.243 i S 97.167: 8 329.061 | S 26,200,417. 5 ,200,417 191,900 1.708.617 $ 165.797 5 906.232 s • S 1,072,029 : $ 1.051.795 s 610 651,639 454076903 73.406.173 6 516.349. 12 940975 1,087,592,039 .067.692.03 183.31617 699.245.668 9.253.061 35.970.079 1,321,551 259.106 5.810 46,814,607 45.930.992 Retirement Assessment Bployer formal Cos ..Paymerson UAL" Totel Asesament tests 165,797 S 906.232. s sally payment count 1,04 1012009 s0su9s •FY2017 Assessment is $87,761, or 8.7% higher than FY16 17 ===PAGE 21=== FY2017 Expenditures- Less Discretionary & Discretionary All municipal depts generally funded at Target, which generally means "status quo," but losing ground each year due to increasing service demands * No increases in Police or Fire personnel • Fully analysis of current & future costs needs to be conducted before any proposal for increased staffing levels could be presented Pavement Management is underfunded; BOS will unveil a plan next month Stormwater Management will become an increasingly urgent School at Target, but $312k below S/ SC recommend. + additional health insurance expense +$96k • Above target requests are to meet the needs of the district Grade 3 teacher; Office Clerk at MS/HS; Technology Support; Custodian Jnanticipated Placements; Technology Teacher Departments will provide an in-depth review of service level needs versus Target Budget during individual presentations Highlights- Minimal Strategic Investment Transportation * Conservation administrator • Increased hours in Assessor's Office • On the horizon... "light at the end of the tunnel" • Pavement Management Plan • Funding proposal for existing turf field • Energy Efficiency Projects • Solution for Municipal Offices which may create new opportunity for consolidation • Payoff of Non-Exempt Debt creates opportunity to create a comprehensive CIP funding plan • Data to make informed decisions 18 ===PAGE 22=== FY2017 Expenditures- Conclusions • Fully funds all contractual obligations - Balanced based upon use of recurring revenues for operating costs; no draw on Stabilization Fund or Free Cash • Maintaining Level Services (at FY16 Level) to the greatest extent possible • Service levels are not what Department Heads recommend & they don't always meet the service demands, but the services we offer are good! • Educational offerings; Class size; Public Safety; Road Maintenance • Additional Chapter 70 funding should go to Education Other additional funding should go to fund Capital Items 11 & 1: Conclusion- Next Steps - Finance Committee will begin a detailed review of the FY17 Budget- Feb 18 • House Ways & Means Budget, end of April • Senate Budget, end of May • Town Meeting: May 7 • Town Election: May 21 19 ===PAGE 23=== Proposed FinCom Schedule Thusdoy februaw 19 Smg/Soedal Meconel Police 6:00 Thursday, February 25,2016 7:00. 6.00 Thursday: Marcn 1, 2016 (Sprdal Meeting) Thursday, Maren 30, 2026 WuDleor taid Usn a hoministation, Undowided, Crbt Service :Library tunantueg PublicS checls 38 Thursday, March 17, 202G (Spercal Mertine) 7:00 7:30 8.00 ...... Counels on Agiss (Monty Tech PraticAcou Catle Committer (Other Monled Articles .FV2027 Budzet Publle Hearina Thurs day, March tt, 2056 (Spacil Mio rie as Cammitte stetod dihar Warant Arti 20 ======================================================================================== DOCUMENT : 2016-02-18-agenda-2230.txt BOARD : finance-committee DATE : 2016-02-18 KIND : agenda OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-02-18-agenda-2230.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_02182016-2230 ======================================================================================== ===PAGE 1=== ======================================================================================== DOCUMENT : 2016-02-18-minutes-2230.txt BOARD : finance-committee DATE : 2016-02-18 KIND : minutes OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-02-18-minutes-2230.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_02182016-2230 ======================================================================================== ===OCR macOS Vision=== ===PAGE 1=== Town of Lunenburg BURO, MASS Finance Committee: Mark Erickson, Chairman Terri Burchfield, Vice-Chairman John Henshaw, Secretary Karin Menard Jay Simeone 3/3/2016 Lunenburg Fiance Committee Minutes February 18, 2016 17 Main Street, P.O. Box 135 Lunenburg, MA 01462-0135 978.582.4139 FAX 978.582.4148 Location: Present: Also Present: Town Hall Mark Erickson, Terri Burchfield, Jay Simeone, Karin Menard, John Henshaw Finay Leafleur, Town Manager, Karen Brochu, Town Financial Manager/Director of Municipal 1) Mark E. called the Finance Committee meeting to order at 7:00 pm. He announced that this meeting is broadcast on the Lunenburg Public Access Cable Channel. The video recording is posted on YouTube at https://www.youtube.com/user/LunenburgAccess and select Finance Committee 02.18.16. 2) Comments: a. Public: None b. New Communications: i) John suggested that at a future meeting the committee consider a few issues that have potential consequences on future Town budgets and that have surfaced during this budget process. Mark said we could put this on a subsequent agenda after the Town budget process is done. Note: These minutes are an overview of this presentation. For specific details, copies of Chief Marino's and Chief Sullivan's presentations are attached to these minutes filed in the Town Clerk's office. 3) Police Department FY17 Budget Presentation by Chief Marino. Lieutenant Mike Luth was also present. Police Department Fiscal 2017 Budget Presentation by Police Chief Jim Marino Below is a summary of the presentation. For details you can access the presentation on the finance Committee Page on the Lunenburg On-line site. Overview: • The FY17 recommended budget is $31,000, or 2.2% higher than the FY16 recap. Effects on Current Service Levels: The budget is essentially level funded, which Chief Marino said was not necessarily a level service budget relative to the challenges that the department faces. As an example, Chief Marino said that the number of arrests in Lunenburg have increased 180% in the past five years. • There is no funding for additional officers which Chief Marino has requested. That means that the department will not have a larger presence in the community, and will not be able to augment the community outreach efforts. • Even if the Town were to fund one additional officer would help him, though three would be much better. • The more officers on patrol, the greater the deterrence to crime. • Self-initiated police interventions and the deterrent effects of those actions have declined as officers do not have time when they are busy handling calls. Mn-FY16-160218-Draft.xIsx (local and remote drives) 1 of 3 ===PAGE 2=== Future Plans and Issues: • The contract the police have with the Town expires this fiscal year. So a new contract will have to be negotiated to set pay levels. • The Power DMS software will improve efficiency. See the presentation for details. • The department needs a records retention room that was a capital projects request, but was not approved for FY17. • • Mandatory training and providing additional coverage when officers are in training. Narcan has become so common that the price is starting to creep up. As of now funds for Narcan is built into the police department budget, but as prices increase this may strain future budgets. Fire Department Fiscal 2017 Budget Presentation by Fire Chief Pat Sullivan Below is a summary of the presentation. For details you can access the presentation on the Finance Committee Page on the Lunenburg On-line site. Overview: • The FY17 recommended budget is $23,700, or 3.1% higher than FY16 recap. • Note: The $282,000 in ambulance fees goes back to the general fund. • The department responded to 2,000 calls last year, about 1 1/2% more than in 2014. EMS calls have increased at a higher rate. Effects on Service Levels: •EMS supplies typically exceed the budgeted level and would be paid for by shifting Tunding from other line items (e.g. equipment repair) if the funds are available. Additional demand for EMS supplies has been driven increasingly by calls related to drug reactions. The aging population is a factor too. • The increased call volume-it now averages over four calls per day—is beginning to strain the staff. For example, a typical EMS call lasts over four hours, including the actual call and documentation. Future Plans and Issues: • Because mandated training is not funded in this budget, this risks retention of call staff who have to take training on their own time, which may force them to decide between training and overtime at their paying job. 4) Mark related a message from Kerry asking that responses to increased chapter 70 and UGGA state aid to cities and towns in the governor's budget be forwarded to Representative Benson's office within the next few weeks. 5) Review of Minutes: a. Minutes of February 11, 2016 Meeting: Karin made a motion to approve these minutes, and Jay seconded the motion. The committee approved the motion by a vote of 5-0. 6) Budget Goals and Opportunities: There was no discussion at this meeting. 7) Committee and Department Updates: Committee/Department Update DPW-John H. Capital Planning-John H. No report. No report. Mn-FY16-160218-Draft.xisx (local and remote drives) • 2 of 3 ===PAGE 3=== Public Access Cable-John H. Library-Terri B. Public Safety-Terri B. Schools-Karin M. The PACC postponed its meeting of Monday, February 8 due to the snow storm. The meeting was rescheduled to Monday, February 22. The Board of Trustees have some concern over the increase in CW Mars fees. This increase is a result of the state not funding them at the level they had been, so member libraries will have to make up the difference. No report. The only bid to provide busing for the schools for FY17 was from the current provide and it would be an increase of $40,000. This is a service we are mandated to provide. No report. No report. No report. No report. No report. No report. Monty Tech Karin M. Council on Aging-Karin M. Sewer Commission-Jay S. Green Task Force-Jay S. School Bldg. Comm.--Mark E. Building Re-Use-Mark E. 8) Next meeting: Thursday, February 25". The Department of Public Works and the Land Use will give presentations on FY17 budgets 9) Adjournment: Terri made a motion to adjourn and Jay seconded the motion. The committee approved the motion 5-0 at 8:47. Respectfully submitted by John Henshaw March 1, 2016 Attachments: Police Department FY17 Budget Presentation Fire Department FY17 Budget Presentation Mn-FY16-160218-Draft.xlsx (local and remote drives) 3 of 3 ======================================================================================== DOCUMENT : 2016-02-25-agenda-2231.txt BOARD : finance-committee DATE : 2016-02-25 KIND : agenda OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2016-02-25-agenda-2231.txt TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_02252016-2231 ======================================================================================== ===PAGE 1=== NOTI CE of FINANCE COMMITTEE MEETING on February 25, 2016 7:00 PM Town Hall IN ACCORDANCE WITH THE REQUIREMENTS O F THE OPEN MEETING LAW, PLEASE BE ADVISED THAT THIS MEETING IS BEING RECORDED AND BROADCAST OVER LUNENBURG PUBLIC ACCESS. AGENDA 1. Open meeting 2. Communications • Public Comment • New Communications 3. Department Budget Reviews – DPW, Land Use 4. Town Manager Reports 5. Review Minutes 6. Committee/Department Updates Capital Planning – John; DPW and Parks – John; Pub lic Access Committee – John Library – Terri; Public Safety – Terri; Sewer Commi ssion –Jay; Green Community Committee – Jay; School Committee – Karin; Monty Te ch – Karin; Council on Aging – Karin; School Building Committee – Mark; Building R euse –Mark 7. Ongoing Business • Pavement Management Plan • Contract commitments (e.g., sick leave buy back) • Sales of surplus property – Status 8. Next Meetings • Mar 3, 2016, 7:00 p.m. – Town Hall – Special Meeti ng o Library, Lunenburg Public Schools • Mar 10, 2016, 7:00 p.m. – Town Hall – Regularly Sc heduled Meeting o Council on Aging, Monty Tech 9. Adjournment