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Board - Committee - Commission - Council: 1019 MAR -7
Finance Committee AM 8: 17
Date: 2018-10-10 Time: 7:30 PM
Building: School - Memorial High Location: RMHS Schettini Library
Address: 62 Oakland Road Session:
Purpose: Financial Forum Version:
Attendees: Members - Present:
Chair Eric Burkhart, Vice-Chair Mark Dockser, Daniel Dewar, Shawn Brandt,
Paula Perry, Anne Landry, Marc Moll, Paul MCNeice
Members - Not Present:
Karen Herrick
Others Present:
Town Manager Bob LeLacheur, Finance Director Sharon Angstrom,
Superintendent of Schools John Doherty, School Finance Director Gail Dowd,
Town Treasurer Endri Kume, Library Director Amy Lannon, Assistant Town
Manager Jean Delios, Fire Chief Greg Burns, Administrative Services Director
Matt Kraunelis, Department of Public Works Director Jane Kinsella, Facilities
Director Joe Huggins, Assistant Facilities Director Kevin Cabuzzi, Deputy
Police Chief David Clark, Administrative Assistant Brendan Sweeney, Select
Board Members: John Halsey, Vanessa Alvarado, Andy Friedmann, Barry
Berman; School Committee Members: Elaine Webb, Chuck Robinson, Linda
Snow-Dockser; Bob Holmes, Al Sylvia, Bill Brown, Angela Binda, Nancy
Doctor, Carolyn Whiting
Minutes Respectfully Submitted By: Brendan Sweeney
Topics of Discussion:
Chair Eric Burkhart called the meeting to order at 7:36 PM.
Mr. Burkhart began the financial forum with a brief introduction, highlighting that events
such as these fit into the town's general goal of making government more transparent. He
outlined the agenda for the evening, which included: a review of FY18 revenues and
expenses, an update for projected FY19 revenues and free cash, a look at projected FY20
revenues, a look at projected FY20 accommodated costs, a look at the use of free cash in
the FY20 budget, and general FY20 operating budget guidance.
Town Accountant Sharon Angstrom then outlined the meeting schedule for the formation of
the FY20 budget. Shifting to an analysis of the town's FY18 revenues, Ms. Angstrom noted
that we came in $2.2 million above Initial projections. Additionally, she noted that the town
came in $1.88 million under projected FY18 expenditures, which puts the town in excellent
financial shape. Ms. Angstrom then presented the certified free cash total for FY18, which is
$10.99 million. Building off of the free cash number, Ms. Angstrom explained that the total
reserves number for the town currently sits at $12.76 million. She highlighted how this
puts the town in strong financial standing overall.
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Town Manager Bob LeLacheur then moved into a look at projected FY19 revenues, which,
outside of property taxes, are growing at a slow rate. He then shifted to a more broad
outlook of the town finances from FY19-FY21, covering revenues, accommodated costs,
benefits and health Insurance. Mr. LeLacheur then used those numbers to deduct what can
expected for projected operating budgets In FY20 ($64.89m), FY21($66.93m) & FY22
($68.80m).
Mr. LeLacheur next looked at capital projects, highlighting the five major projects for the
town in the near future - building security, an elementary school space study, a community
center, recreation/athletic repairs and a new DPW garage. He outlined that for the building
security, which bears a cost of$4.5 million, the town may have $4 million available from the
state in a bond bill, but when the town can expect to see that money is uncertain. He
highlighted that the two major short term projects - replacement of Turf 2 and building
security, can both be covered within the tax levy. As it sits rights now, the building security
is planned to be addressed in FY 20, with the recreation/athletic repairs to be addressed in
FY21. Additionally, the DPW garage, which Is a larger scale project that will not happen
Immediately, has the potential to morph into a regional project with Lynnfield and Wakefield
that will create significant economic development opportunities in town.
Mr. MCNeice then brought up the fact that, due to the excessive wear &tear as well as
recent weather damage, Turf 2 may not last until FY21. Mr. LeLacheur noted that some
repairs will hopefully be addressed this spring, and Vanessa Alvarado, 5 Grand Street, noted
that the Recreation Committee is putting together a Birch Meadow Master Plan that may
encompass some of these projects. There was an ensuing discussion about the scope of the
athletic needs, and at the end three segments were highlighted: field lighting, Turf 2
replacement, and eventual repairs to the high school stadium. On the matter of lighting,
Linda Snow-Dockser, 110 Beaver Road, asked whether the town is still looking Into the use
of LED lights, to which Facilities Director Joe Huggins affirmed that the town is.
Barry Berman, 54 Longview Road, brought up the possibility of addressing both building
security and the recreation/athletic needs by prioritizing portions of each project to be
addressed first, completing the rest of the projects down the road. Mr. LeLacheur noted
how that can get tricky with regards to Town Meeting approval.
On the subject of Turf 2, Superintendent of Schools John Doherty mentioned that they've
already had to shut down Turf 2 a few times this year. Chuck Robinson, 81 Prospect Street,
suggested that perhaps the town can get creative, maybe by renting the turf at Austin Prep,
in order to cover this short-term need. After some further discussion Mr. LeLacheur noted
that, although it would be more favorable for the debt service to stagger the projects, both
building security and the athletic replacements can be addressed simultaneously within the
levy. The terms of borrowing for the debt service on the projects would likely have to be
expanded from the standard five years to ten years, however. Additionally, Mr. LeLacheur
mentioned that if the initial seed money for the project can be conjured by November Town
Meeting then the repairs to Turf 2 can begin next year.
Shifting towards the elementary school space study, Nancy Docktor, 371 Pearl Street, asked
Mr. Doherty how this project would tie into the pressing needs at the J.W. Killam
Elementary School. Mr. Doherty explained that this project will give the town the accurate
information and enrollment numbers needed to make a more educated assessment of how
the town should proceed with regards to Killam. When pressed on the matter Mr. Doherty
noted that the town has not done an enrollment study since 2001, and that the last
somewhat related study on the matter was a regional study done by the MAPC a few years
ago.
Back to the matter of the athletic repairs, Mr. Brandt asked what the savings numbers
would be from addressing all of the town's field lighting needs at once. Providing a rough
estimate, Mr. LeLacheur noted that the town can expect to save around $250,000 by
tackling all of the field lighting projects at the same time. Mr. Dockser recommended that
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the town look at all possible combinations of how to approach the athletic repairs before
deciding the best path forward.
After further discussion, Mr. Brandt spoke in favor of the seed money approach of allocating
the necessary resources at November Town Meeting to get the ball moving on the Turf 2
repairs, and Elaine Webb, 309 Pearl Street, agreed due to the increasing costs that will pile
up If the problem Is not addressed. Mr. LeLacheur then called for a brief break at 9:12 PM
so that Town officials could discuss the matter.
The forum resumed at 9:19 PM, and Mr. LeLacheur explained that an additional $200,000
would need to be appropriated at November as seed money for the Turf 2 project. He
explained that he would bring the final numbers to the Finance Committee prior to Town
Meeting, and that a special town meeting could be called on the matter if need be.
Mr. Burkhart then moved to a discussion of free cash. Mr. Dockser outlined how the town
uses free cash to cover one-time expenses, and Mr. Moll added how it is tough to predict
free cash usage year-to-year due to the unpredictability of the expenses. Mr. Brandt
questioned whether now may be a good time to use free cash to try and stretch the process
of phasing in the additional funding from the override, which Mr. LeLacheur noted may be
tougher to do at this point in the process. Regardless, Mr. LeLacheur emphasized that the
town is In good financial standing and has Flexibility with how to proceed.
On a motion by Mr. Burkhart. seconded by Mr. Dockser, the Finance Committee
approved the use of $1 million in Free Cash to support the FY20 budget by a vote
of 7-1-0.
Mr. LeLacheur then concluded the Financial Forum at 9:36 PM.
Next, Mr. LeLacheur moved the Finance Committee to their vote on the warrant articles for
the November Town Meeting. He went through each article that would require a vote by the
Finance Committee, and the numbers in Article 3 and Article 4 were amended to reflect the
change of the additional $200,000 for the initial Turf 2 costs that will be brought to the floor
of November Town Meeting.
On a motion by Mr. Dockser, seconded by Ms. Landry, the Finance Committee
voted 8-0-0 to recommend Article 3. as amended. to Town Meetina.
Mr. McNeice volunteered to cover the Finance Committee report on this warrant article.
On a motion by Mr. Dockser, seconded by Ms. Perry, the Finance Committee voted
8-0-0 to recommend Article 4, as amended. to Town Meetina.
Mr. Burkhart volunteered to cover the Finance Committee report on this warrant article.
On a motion by Mr. Dockser. seconded by Ms. Landry. the Finance Committee
voted 8-0-0 to recommend Article 6 to Town Meetina.
Ms. Landry volunteered to cover the Finance Committee report on this warrant article.
On a motion by Mr. Dockser. seconded by Ms. Perry. the Finance Committee voted
8-0-0 to recommend Article 7 to Town Meetina.
Mr. McNeice volunteered to cover the Finance Committee report on this warrant article.
On a motion by Mr. Dockser, seconded by Mr. Moll, the Finance Committee voted 8-
0-0 to recommend Article 8 to Town Meetina,
Mr. Dewar volunteered to cover the Finance Committee report on this warrant article.
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On a motion by Mr. Dockser, seconded by Ms. Perrythe Finance Committee voted
8-0-0 to recommend Article 9 to Town Meetina,
Mr. Dockser volunteered to cover the Finance Committee report on this warrant article.
On a motion by Mr. Dockser, seconded by Mr. Brandt. the Finance Committee voted
8-0-0 to recommend Article 10 to Town Meetina,
Mr. Brandt volunteered to cover the Finance Committee report on this warrant article.
The meeting minutes from September 26, 2018 were the next topic of discussion and a few
corrections were made.
On a motion by Ms. Landry. seconded by Mr. Dockser. the Finance Committee
voted 8-0-0 to approve the meeting minutes from September 26 2018 as
amended.
On a motion by Mr. Dockser, seconded by Mr. Brandt the Finance Committee voted
8-0-0 to adiourn the meetina at 10:23 PM.
Mr. Burkhart adjourned the meeting at 10:23 PM.
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