HomeMy WebLinkAbout2021-03-10 Finance Committee Minutes _ CcI � EL
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Board - Committee - Commission - Council:
Finance Committee
Date: 2021-03-10 Time: 7:00 PM
Building: Location:
Address: Session: Open Session
Purpose: Open Session - Remote Meeting Version: Final
Attendees: Members - Present:
Chair Ed Ross, Vice Chair Dan Dewar, Nick Boivin, Jeanne Borawski, Eric
Burkhart, Marianne Downing, Andrew Mclauchlan, Mark Zarrow
Members - Not Present:
Others Present:
Town Manager Bob LeLacheur, DPW Director Jane Kinsella, Assistant Town
Manager Jean Delios, Town Accountant Sharon Angstrom, Library Director
Amy Lannon, Facilities Director Joe Huggins, Assistant Facilities Director
Kevin Cabuzzi, School CFO Gail Dowd, Fire Chief Greg Burns, Assistant DPW
Director Chris Cole, Police Chief David Clark, School Superintendent John
Doherty, Human Resources Director Sean Donahue
Minutes Respectfully Submitted By: Jacquelyn LaVerde
Topics of Discussion:
This meeting was held remotely via Zoom.
Chair Ed Ross called the meeting to order at 7:02pm.
Review Town Department FY22 Budgets Continued:
DPW & Enterprise Funds
DPW Director Jane Kinsella and Town Manager Bob LeLacheur reviewed the department
budget and Enterprise Funds. There are eight divisions of the DPW, five funded by the
General Fund: Administration, Engineering, Highway, Parks and Forestry, and Cemetery;
and three funded by Enterprise Funds: Water, Sewer, and Stormwater.
Staff levels remain the same with 60 employees. The overall budget increased 2.4%.
Engineering expenses increased slightly due to the cost of some software licenses. The
Highway budget for gravel crushing, which is an optional endeavor, was cut in half and
funds were redistributed to line painting, supplies, and Police details. Non-enterprise
stormwater was level funded. Technical and Professional Services for Parks & Forestry was
increased slightly for occasions when there is a need to outsource tree removal, or rent
equipment. There was some money added for shade trees. There is some Fluctuation in
salaries, as after two years, Laborers automatically become Junior Operators. There was
$9,500 removed from the Cemetery budget for grave liners, as there is no need for the
Town to purchase those, when residents can purchase them directly through the funeral
home. The Rubbish and Recycling contract increases 3% every year. The contract with
Covanta was re-signed last year, as there were significant increases for disposal.
Miscellaneous recycling was increased because residents can bring their electronics to the
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DPW garage for disposal. Funding was added for a curbside compost program. Snow and
Ice funding remains the same.
There was some staff turnover in the Water department with the retirement of some long-
time employees, so wages did not increase much. The rest of the expenses are level
funded. The MWRA assessment increased 18.5% due to increased usage as a result of
people being home during the pandemic.
There is $1.5 million water debt added next year for a lead removal project. Once that
project is complete, there will be a $1.75 million project to re-do the water meters the
following year. There was recently $12.4 million in debt sold, which includes approximately
$10 million in water debt for projects in and around downtown, Gazebo Circle, and the
water tank.
Sewer wages increased 0.8% due to turnover from retirements of long-time employees.
Expenses are level funded. There was $1 million sewer debt just sold for downtown
projects. Meter replacement will be coming up in two years. There are sewer stations that
will need to be replaced over the next 10 years.
Wages decreased in the Stormwater Enterprise Fund, as there were only two employees and
one of them left. Expenses are level funded. There was $1 million in stormwater debt sold
for downtown improvements in the Haven Street area. There is no debt projected for a few
years.
Mr. LeLacheur reviewed the PEG Cable Access Enterprise Fund. Cable funding is likely to
decline, but there is no change from FY21 to FY22. The Town is currently in negotiations
with one of the providers for a new contract.
Facilities
Facilities Director Joe Huggins reviewed the budget for the three divisions of Facilities:
School Buildings, Town Buildings, and Core Facilities. There are no changes to staffing.
There is a 5.2% decrease in miscellaneous expenses due to $275,000 of one-time COVID
expenses. Energy expenses increase $5,500 to cover water and sewer increases.
Maintenance and Repair increases to cover some aging roof repairs. HVAC expenses
increase $64,000 to cover the cost of MERV-13 filters, which are more expensive and
require more frequent changes. Plumbing increase $2,200, due to chronic stoppages and
lack of water flow in buildings that saw limited use during the pandemic. Alarm expenses
increased to cover monitoring of two additional buildings with new security systems in
them. Core Facilities wages decrease 0.3% and Town Buildings decrease 4.1% because of
the one-time COVID overtime expenses in FY21. Overall expenses decrease 6.8%.
The Town received $2.2 million in CARES federal funding for COVID expenses. So far,
about half of the funds have been spent, and the deadline to use the funds was extended to
December 2021. The other$1 million is expected to last through the end of 2021. The
costs for MERV-13 filters are likely not covered under COVID expenses, and will continue to
be an ongoing expense.
Shared Costs
Mr. LeLacheur reviewed the budget for shared costs, which increased 5.7% overall.
Benefits increase 3.8%, Capital and Debt increase 10.4%, and Vocational Schools increase
26%. Finance Committee Reserves decrease 33.3% back to $200,000, as the additional
reserves for unforeseen COVID expenses are not needed with the remaining funds available
from the CARES Act.
Retirement assessment increases 6.3%, Medicare increases 1.3%, Health Insurance
increases 2.7%. For FY22, there is only $100,000 budgeted for OPEB, but a surplus in
Health Insurance this year will help fund OPEB. Unemployment decreases 21.1%, as there
was so much fraud during COVID that claims were credited.
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Capital was reduced by $900,000 due to uncertainties with revenue stemming from COVID,
but about 1/3 was added back at November Town Meeting. Since the Financial Forums in
September, three projects were added to the Capital plan: High School stadium turf and
track (request for debt authorization at this April Town Meeting), Parker Middle School roof
replacement (FY25), and develop underutilized space in the Police Station for office space.
The Ladder Truck is still in the Capital Plan for this year.
Costs for Vocational Schools are estimated at $480,000, though tuition and enrollment are
not yet known.
Preview of Warrant Articles
Mr. LeLacheur provided an overview of the warrant articles for Annual Town Meeting. The
draft warrant report, which includes the details and dollar amount for each article, will be
sent next week.
The Finance Committee discussed Article 19, which relates to settling claims for 59
Middlesex Ave. The amount for a settlement is not yet known, and if Town Meeting does
not approve an amount, a Special Town Meeting could be called to authorize later. Ms.
Borawski encouraged a meeting between the Town Manager, Finance Committee Chair, and
Select Board Chair to discuss any potential liabilities if needed.
Also discussed was Free Cash. There is usually between $1 million and $2 million used and
regenerated each year. This year, there is $2.75 million of Free Cash being requested. Mr.
LeLacheur noted that he was not concerned about spending Free Cash, as COVID effects on
revenue have made this the "proverbial rainy day." It is up to the Town Manager and
School Superintendent to manage it, and not rely on it for the operating budget, but for
one-time expenses.
Ms. Downing asked about the proposed positions to be added and whether Town Meeting
could strike a position from a budget line item. Mr. LeLacheur explained that the wage line
item is voted on, and if Town Meeting votes to decrease a wage line by an amount of a
specific salary, it is up to the Town Manager and Department Head how to use the
remaining funds.
For retirement, the Town has to fund what the Retirement Board votes. It is funded at a
6% increase annually and should be fully funded by 2029. Once Retirement is fully funded,
the funds that were allocated to Retirement will likely then be used toward funding OPEB.
Minutes:
On a motion by Ms. Borawski, and seconded by Ms. Downing, the Finance
Committee voted 8-0-0 to approve the meeting minutes of March 3, 2021.
Roll call vote: Jeanne Borawski-Yes, Nick Boivin-Yes, Eric Burkhart-Yes, Dan
Dewar-Yes, Mark Zarrow-Yes, Marianne Downing-Yes, Andrew Mclauchlan-Yes, Ed
Ross-Yes.
On a motion by Mr. Burkhart, and seconded by Ms. Borawski, the Finance
committee voted 8-0-0 to adjourn at 8:58pm.
Roll call vote: Jeanne Borawski-Yes, Nick Boivin-Yes, Eric Burkhart-Yes, Dan
Dewar-Yes, Mark Zarrow-Yes, Marianne Downing-Yes, Andrew Mclauchlan-Yes, Ed
Ross-Yes.
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