All right, please go ahead. >> Okay, good afternoon everyone. Um, I'm Alicia and I am calling this meeting to order as the vice president of the town council. Um, it is Tuesday, January 20th
at 2:01 p.m. This meeting is being held remotely via Zoom and is being recorded. Um, I want to call on each member of the committee to make sure they can hear and be heard before we begin the meeting.
Um, Lynn Grymer, >> present. >> Sam Mloud, >> present. >> Kathy Shonne, >> I'm here. >> Counselor Breick, >> present. >> Anna Delongthier,
>> present. Thomas Porter >> present. >> Um and I'm not sure do I have to call on you Sean also? >> No. >> Um and then I do see Tanya. I don't know if we need to make sure that um she can
be heard as well. >> Is she the note taper? >> Uh Tanya is our new controller. >> Awesome. Okay. Thank you. Um, okay. So, our first order of business
for today's meeting will be the election of our chair and vice chair. Um, and so under the town council rules of procedure, uh, the president or vice president will preside until the chair is elected. Um, and so I would like to
open the floor for nominees for chair. Um, and if uh those who are nominated accept the nominations, we will then move forward to uh statements. Uh, Lynn, >> I nominate Kathy Shane. >> Thank you. Kathy, do you accept that
nomination? >> Yes, I do. >> Thank you. Are there any other nominations? Okay, Kathy, would you like to make a statement? >> Uh, yes. I'll just make it briefly. Thank you very much for the nomination.
Um I have this will be my second year I think second year chairing and what I'm hoping is as we go into this I can impart any knowledge I have to new members so that with the goal of
rotating the chair over time and so I appreciate being able to continue since a lot of the coming up year feels like a continuation of last year. Okay, thank you Kathy. And seeing that there are no other nominations, um I
will close the floor for nominations and we will go uh use roll call for vote. Um so please indicate uh whether you are a yes or a no or an abstain at that time. I will start with Lynn Grymer. >> Yes.
>> Sam Mloud. >> Yes. >> Kathy Shonne? >> Yes. Councelor Breick, >> yes. >> Anna Delvlin Gothier, >> yes. >> Thomas Porter, >> yes. I support.
>> Okay, great. Um, so congratulations, Kathy. You have been elected. Um, and I believe at this time I can now pass the meeting over to you for the election of the vice chair. >> Thank you, Councelor Walker. Well done.
Uh so we are now open for uh nominations for vice chair and if I I look for hands and seeing no hands I Oh no >> I'd like to nominate councelor Bevik as
vice chair >> and Kathy can you also explain the role of vice chair as well just because it's the first meeting. >> Sure. So the the role of vice chair um is to chair when the chairperson is not there. Um and that has happened
periodically. Um and then the second role is it's it's varied throughout the years. Um but sometimes the role of vice chair has also been to approve minutes
that have been taken um during and we'll talk about the way we do minutes um on finance. Sometimes that is approval of the vice chair. So the notetaker does the minutes and then the vice chair would read them and the vice chair when we're writing a report we can't write
them as a team but the vice chair often provides extensive comments. sometimes authors a report depend and usually if the vice chair is going to do the report the chair just says you're doing this report. So, I had experience in my first
year on the committee writing a report because the chair asked me to as an example. You know, why don't you do this one? So, I would like to nominate Lynn Griezmer. And I guess I need to accept both. So, I
think we already did. Jill Breick, do you accept the nomination? And then Lynn, do you accept the nomination? Yes, I'd accept. >> Um, yes. >> So, would either of you two like to make
a statement um before we put it open to a vote? >> I'm I'm happy to make a statement. I It's not something I was expecting. Um, but I do, you know, Kathy and I have met several times already, and I do appreciate uh her willingness to
kind of help to pass the torch and and educate me on uh matters related to finance committee and the budget in general. Um, I and I have a lot of experience in this area professionally. So, it's it's an area that I definitely
over time hope to really sink myself into on the council being new. Um, I do understand if a different direction is preferred by this committee, but it is it is something that I think I would be excited about and be willing to do and
would would definitely commit to the work involved. >> Lynn, would you like to make a statement? Um, first of all, I really want to thank Kathy for her willingness to chair this committee again. While Anna and I have both been on the finance
committee in the past, uh, neither of us were on uh, at least last year and maybe even the year before. So, I think it's really u important and gracious of Kathy to uh, be willing to tutor us all uh, as
we go forward. Uh, as I mentioned, I h I was on the finance committee for five years. Um, as with councelor Brevik, I uh actually when I am with nonprofits that I'm on boards of, etc., I tend to be around finance and investment. So, it
is an area that is always been an area of strength um that I bring to both the council and other organizations. Thank you. With with that done, um I will do a roll
call vote and this is just name the person that you are uh voting for for vice president with um one is Lynn Griezmer and one is councelor Breivik. Those are our choices. So I'm the way I
do it is I don't keep a list of people by alphabet. So, I just look at the faces on the screen as I see them and I go through the faces to make sure I don't miss anybody. So, Lynn is the first on my screen. Lynn >> Lynn Griezmer.
>> Uh Kathy is for Greemer. Sam, >> uh Lynn Griezmer. >> L Jill Councel Brevik. >> Councelor Brevik >> and Anna Develair. Council Breick
>> and Tom Porter indicates support or not support by person's name. >> Support for Lynn Griezmer. >> So I my count is three to two. So Lynn is the vice chair for uh the coming year
and these are just one year. So everyone understands that and uh I just want to assure particularly uh Jill and Sam who are new to the committee there is lots of opportunity to substantively no report gets written without a lot of
input from the whole committee um including uh back and forth we we review it sometimes depending on the reports multiple times. So with that, um, Council Walker, >> thank you Kathy. I just wanted to
congratulate both you and Lynn on your elections and I hope you all have a great rest of your first meeting. >> Thank you and thank you for opening it for us. I mean, you can you you assume know you can stay or not stay as you want.
So, um I uh in terms of uh organization, this first agenda was posted um with the the president of the council suggesting pieces and I'm I'm not remembering the ex exact order because I didn't post it.
So, I know Sean, you have it or Lynn has it in terms of someone pulling it up. So, we just know the order which we're going through the items that are on the agenda. I can look it up, too. >> Yeah, Lyn, do you have if I have the guidelines, but if you have I can pull up the agenda if you don't have it
handy. >> You're muted first and then go to pull it up. >> So, the next um public comment is your next item. >> Yes. >> And then schedule So, so which is the first item? >> Uh, public comment is your next item.
>> Yeah. No, it's that's that has been our practice in finance is to do public comments at the beginning. Um, that is a decision we can make as a committee, but right now it's always at the beginning. So, um, I see we've got four attendees.
If anyone would like to make a comment, we welcome comments now and just raise your hand. These will be up to f three minutes and we won't interact but we will listen. So raise your hand if you would like to make a comment. I am not seeing any hands. So I will
close public comment and note that there were none today. So that the next item as Sean had just said is the uh regular meeting schedule and it's been posted in the packet. And what you'll see that Sean has done is
once we'd agreed to the first Tuesday and of the first and third Tuesday of every month, there is now a schedule that has the first and third Tuesday by uh the actual dates. and that is
downloadable from our website. So, as you'll see, it's it's it's just a regular first and third. The one thing I wanted to just bring to people's attention is during May, first and third is not happening. It's every week in the
month of May. And typically, or at least the last several years, it's been twice a week during those weeks. So, as you can see what this is, Sean has put it up as a draft, but it's every every Tuesday. And we agreed by email, and I
just want to make sure that's still okay with people that the meeting will start at 1. So, it goes from 1 to 2 is the schedule. So, that'll be the regular meeting schedule. What we have done in the month of May is pick another day of
the week for a second meeting. And we've done this interactively with making sure once we know um you know so we we've done it we typically had a Thursday but what one of
the um issues has been is people are on on the council or on other meetings and so we've tried to avoid if they're on go or if they're on to or CRC avoid a conflict with another. So, we haven't
always met in the afternoon. Sometimes we've met in the morning. And I see that Anna's hand is up and Lynn's hand is up about the schedule. Anna, >> so Kathy, I think I I have a slight wrench here that's more
of a question. One of the questions that I've had when I served on finance before was that by the time we're hearing these departmental so the reason for those every week meetings in May is that we're hearing from the different departments about their budget requests. Um and it really is it's in my experience is
really an overview of what's in the budget for them for this year. Um and uh and and serves as a good introduction for their budgetary needs uh to the finance committee. My question is whether I I've been questioning for a
while whether May is the right time for that to happen because at that point we've already gotten the draft budget. Um and so it's it's a challenge to hear it and not see it as for me to not just see it as a rubber stamp and kind of a formality. I really like hearing from those departments, but I would like to
raise the question here as to whether May is the right time in the budget process for us to hear from those departments about their needs uh or whether it would be better served elsewhere or in a different format given the intensity of that month for the committee.
>> Um and I think we can we can take that up at the next meeting maybe Anna on what might be possible. So for for everyone who's new to the committee for the town budget items not not the schools but for the town budget items
May the beginning of May is the first time we see them. We have seen regional we meaning anyone who's looking has seen regional and has seen um and it's the first time we see library although libraries finished a bit before too. So there are three budgets that are final
from those committees before they get to us. And then for the town items, we're restricted to we can make cuts, but we can't move money around. Um so any earlier discussion would be mainly on,
you know, hearing some of what we hear during May, which is we're short on this money. This is what we can't do with these budgets. So trying to figure out if there's any possibility of doing some of that in April would be the question
you're you're asking Anna before you know before it's totally final. I and I think you're talking about the mainly the town budget but the regional school last year we took up the regional school debt capital early and we talked about
assessment methods early before it ever got to to May. So, we did some of it, but not all of it was done during the May month. >> So, I'm going to go to Lynn and then come back to you, Anna. Okay. Just on trying to think. >> I'll just clarify it.
Uh my only comment is that as much as I don't cherish evening meetings, I think for the purposes of the public as we look at May, we might want to consider that second meeting on an evening and particularly for those departments that
we think the public is most interested in. Thank you. >> Okay. So that would be whether the second meeting and some of that Lynn is also staff time because if it's if it's in the evening um when they wouldn't be working and then worrying about things
like school committee meetings and other committee meetings a lot of you know so but I heard that so Anna coming back to you. >> Thank you. So it could be April Kathy but I'm I'm wondering if it's more beneficial for this committee to hear from those departments as we're going
into budget guidelines instead. um as we think about how how folks are planning for the year ahead. I think either one could be beneficial, but um I would I would love for us to possibly at the next meeting have that conversation of when is the best time for us to hear from the departments, whether it's when
we're crafting the guidelines, whether it's once we have a draft budget and what the intention and purpose of those meetings are. Um so that perhaps we could focus them a bit better. I think I want to make the best use of the staff's time and and so I think we'll leave May
can be we can yellow shade May on the sec second days and and times and then the other thing Anna is in our guidelines which is another piece that's on this today's agenda is we set up uh a
midFebruary date to revisit the guidelines in terms of the financial status of the town which was is where we will hear some of that information on um what does 3 and a half% mean for the various pieces including the town. Um,
and it's the major departments uh in the town budget that are going to feel, you know, some we've got some oneperson departments, for example, but you know, I'm talking about uh struggling the the effort with an 18% insurance increase.
So, it may be that some of that is going to happen naturally in the course of uh Paul and Shawn figuring out how we have that early the midpoint discussion. you know, so so our next meeting is uh uh
February 3rd and um so I think we could take this down for now, Sean, but this is a potential discussion on the meeting schedule when we're reviewing budget items there. But I think for February
3rd, if I'm correct, um, but you can, you had told us in the fall that you thought certified CA free cash, the closing out of FY25 would be ready by end of January, early February. So will that is that something
that's going to be ready by February 3rd? >> Yep. It's certified. It's all done. >> Okay. So that will be a February on the if it's at the this gets referred to us. So, I assume it first goes to the council and then gets referred, but we're meeting the day after. >> What part?
>> Pardon? >> I'm sorry. What What are you referencing goes to the council? >> Uh the certified free cash and any recommendations. >> Yeah. So, um our plan is to bring that to the council in February. Um I'm not sure exactly what date, but we'll um bring that to the council and then it'll
get referred back to finance committee. Um, but Paul's working through the different agendas and we're not, you know, some of it's typical transfers that we do every year and then some of it's planning for roads and things like that. So, um, I'll defer to Paul in
terms of what meeting that'll come up. >> We'll have agenda setting next week and we'll have a better idea at that point when those are coming. >> Okay. I So, so Jill, uh, councelor Brevik, I'm not going to be good about councelor Bev, so just correct me when I
forget. So, did your hand go back down? >> That's okay. I I had a couple just to try to follow along in the conversation, just making sure I understand, but going back a second. Um, you said there was a
certain date that we were going to be possibly reopening the budget pri or or allowing an opportunity to reopen the budget priorities. Can you just repeat what date you said for that? >> It it's it's in the guidelines. So, we can bring up in that document, but we we said by midFebruary and it was a
revisiting what the revenue situation is. So in in the past several years once more was known about the current year budget and what more was known about the state budget there sometimes has been revenue enhancement and so it's
coming back and it's also hearing from um getting a better idea of what the three and a half% means for um different departments across the board whether you know whoever it is. So uh with given
that we've got an 18% health insurance piece, you know that the squeeze on the town. So it's it's having a discussion. It's not necessarily um last year we were able to go a bit higher than the initial three. We were at 3%, we were able to go higher. We were at three and
a half. So it's it's that kind of midpoint um piece. And I see Shawn is up on it. So it's not revisiting them all together, but it's revisiting particularly the revenue picture. Can I add to that, Kathy? Um, so, so things that were not a part of our
initial projections are state aid um, increases. So, we're going to get the governor's budget in January. >> So, when we bring it back, um, update our revenue projections and present those to you in February, it'll ha have it'll reflect the governor's budget and changes to state aid. Um, and then it'll
als ne necessarily impact the numbers and the projections because they're projected at sort of overall levels. Um, but it might impact what type of financial situation we're looking at. So, we'll we'll share that with you. Um, and then we're we'll also take a look at all of our revenues and just see if
we're, you know, where we want to be in terms of projecting them. So, so yeah, we have that planned for midFebruary. And then the other thing for midFebruary that department heads are working on now is that there was a request to share with this committee what it would look like
if every department of the town um developed a level services budget. So, typically in the past, we've developed sort of we built our budgets to get to a number that can be supported. Um, but there was a request that what would it look like to fully level fund them and
not rely on vacancy savings or savings in other areas basically to to cover different types of expenses. So, department heads are working on that right now and are um we've asked them to get that back to us by early February so we can have that information too,
>> you know. And and Sean, the the guideline one was actually a bit narrow, but we might not have written as precisely. There had been a flatline for non-personnel expenses in the past budgets just have been really literally the same dollar amount year after year
and they were able finance >> the o overflow of that because there were vacancies you know so it wasn't but anyway you you all will so that's what the reporting back was Jill to you know since when we were looking at it in
November we're missing pieces of information there's Best guesses. Um, Lynn, >> are we moving to a discussion of the guidelines? >> Yeah, I would like to at this point move to a discussion of the guidelines and
just to both explain what they are, but also highlight a few of the pieces. Um, and uh, if that's >> Are you are you are you not asking the committee to vote on an on a schedule at the moment?
>> Well, okay. The committee was pled and I think we all agreed a 1:00 meeting first and 3rd February. So, if we want to do that formally and that the issue of May right
now is open. So, um, if if I need to take a vote on it, is everyone uh comfortable with or agree to that we're going to be meeting the first and third Tuesday of every month at 1:00 for a
scheduled two-hour meeting. And I'll just go around and get a formal approval of that. Lynn, >> I >> Kathy say yes. Jill, >> yes. >> Anna, >> hi. >> Tom,
>> yes. Comfortable. >> And Sam, >> yes. >> Great. Thank you. And so we'll just leave those additional meetings in May or whenever you decide to schedule them as TBD. Is that correct? >> Right. And and what I think Sean just very quickly did is she just yellow
shaded them. You know that it's up a top. I can say them, you know, up a topic. >> I put the calendar together and shaded. >> Yeah. No. Yeah. So up at top Athena that did that. Yeah. >> No. So Athena when you do it it could say regular meetings will be one to
three and then the other dates that are in there is a TBD. >> Okay. Great. >> A way to think about it because you know so it's the first and third and then the rest of it becomes I'm I'm assuming we're going to have to meet every week
but but in any case is that okay the way we're doing it? >> That's just fine. And I just wanted to make sure that this was final so I can post it and share it with with others. So, thank you. >> That's great. And just so people know on the schedule, last year when the fall came, we had to add them, we had to add
another day to get guidelines done in time because thing things were coming in um in bunches. So, this is the world as we know it right now. Okay, Lynn. So, I think moving on to the guidelines. Um I I I'm hoping everyone
has seen them and if not link can put them up on the screen but just a I wanted to do a brief what are what are the guidelines and what are some of the highlights in them. So if we put it up on the screen I can just do a really quick summary of what's in it with one
particular item that we have more information on now. So, Lynn, do you have it or Sean, do one of you want to pull it up on the screen? Uh, screen. Anyone who wants to pull it up. I >> do. You want me to go ahead and do it?
>> She said yes. >> I can do it, Sean. >> Oh, okay. Go ahead. So in in the guidelines uh we at the point the finance committee is doing guidelines we've had projections from the finance department
of what revenues we will have available for the the coming year based on best guesses and experience on the revenue side and taking the actual um
departments and looking at what those costs will be. Um, and so we've we've got the back very back of this guidelines has the projections we were given by by the finance department. And looking at that, the the estimate was
that we would have we could enable a 3 and a half% increase in all the major budgets. And three and a half% for the town is about 2.6 6 million um on our budget of and this is not and and this
is not the enterprise funds they operate underneath their own revenue and expenditure side. So our our basic uh 2.7 million sorry not 2.6 million increase. So it's that's the budget that
we're working with. um unless revenues increase. That's how much we're expecting to get more in the year. And this is this is the year that starts in July of this year, July 2026, and goes to June. So, we we said don't consider
an override. Um don't take on any new initiatives. Try to worry about fire and EMS with staffing. Um then on revenue adjust is this is the part we've talked about adjust as more information becomes
available on expense. Lynn you want to go to the next slide. So we went for ma all major funding areas getting the same three and a half%. Um and the
elementary school was left with a um the year before we had done a one-time increase pulled money out of free cash and the recommendation that we had at the time we were working with the fall is to not include that in the base which
is what the projections do but that we also left it that we would come back and revisit that when uh we had more information on the sixth grade move. Um, in terms of the cost, the assumption had been there would be savings as we went
from three to two elementary schools and so far that has become increasingly unlikely. So, there is something called other postemployment benefits. We opted to keep it at the same level 600,000
that had been scheduled to increase every year until we get got fully funded. We will get to fully funded in pensions in the next several years and then Sean can give me a date. But one of the things we were warned when we did
this is under the assumption that when we got fully funded pension we would re we would turn to OP OPED or other post and start enhancing it because our bond ratings and our bond raiders look at that. They want to know that we've been
funded. So those are some of the main pieces and this was the adjust if we if we um know more in the midyear. So on the capital budget um we actually
gave the town a range of 10% and up to 10 a.5% and this is a percentage of last year's the the past year's property tax revenue that gets set aside for capital. And capital is anything that's more than $10,000. And that comes from the elementary
school. All the departments put that together and it goes through JCPC, a process where Shawn works with all of them, brings the proposals and there's a certain amount of money available. This is also the amount the money that pays
for debt and interest payments on any past bond that we've used. So, for example, we did a ladder truck and we had to finance it with interest. So, the capital budget has to um do all of that
as well. We asked for uh road and sidewalk that we would have a plan and we would start counting the chapter 90 fund which is cha state money for roads, sidewalks related issues and that we would really take a hard look at that to
get to more adequate funding of it. And so then um then there is one item in here under the capital budget and it was also in context of free cash that the when we voted to do the middle school roof
and the town allocated money for the roof as did the other three towns. We knew that the auditorium roof had not been included in the roof repair because MSBA only wanted to do roofs that were 25 more than 25 years old. but that we
were aware that the auditorium roof was in very poor repair and that it would make more sense to do them both at the same time and this would be going out in um the spring for bids for the construction. So we left open the
possibility that we would be we the amorous would be welcoming a proposal for the middle school roof and I want to come back to that when we finish going through this. So then on budget surpluses when this is the certified free cash. So
Sean on a when you think about when you plan on doing it with Mandy I think it would be better if we could have this on February 3rd which means council on the 2nd but once we get certified free cash um from the year before there's a set of
decisions on whether we're spending any of it. So part of that is getting to free cash at 5% where we we drew down on some of that a year ago for banks. So getting it back up to 5% maintaining a general stabilization fund at 10%. Then
we have a capital stabilization fund that was set up for large capital projects and I'm seeing that we're jumping around a little bit but the so that was where in the past when we're allocating free cash to the extent it's
above that 5% and 10% and cannabis revenues all the marijuana revenues go into the reparation fund. So some of the free cash money is allocated already. So to the extent there is more, we talked about roads as having a claim on it and
we didn't speak to much else in the guidelines other than putting it into the capital budget into the capital uh stabilization fund. At the same time when the you have to read both of these interactively on the capital budget and
budget surpluses because we are there is a DPW a building committee meeting and the capital stabilization fund has been specifically put aside because we know we need to rebuild entirely the re DPW building and
we need a new fire station. So, we've been building up funds and the hope is we would be able to start drawing on some of those funds in this next fiscal year and it's not clear yet, but that money could be moved into the capital budget. So, that that's the high level
in this executive summary. So the one that I wanted to and I'll take any questions on this um and I'd be happy to talk more to and offline to any where this isn't clear. This sets the stage
for all the departments. So what the town has been working with now is each department what does it mean total town budget at three and a half and with the total town budget it means the whole thing has to come in at three and a half. So one piece might be a little
under and one might be an o little over but everything has to come in at 3 and a2 and the town budget carries in health insurance it carries about 2 and a.5 million of health insurance for the schools for the elementary schools. So
when we say 18% that's for town employees and for elementary school non-eing staff in the health insurance line. So our budget, the town's budget is carrying some of the school budget that doesn't show up in the elementary school budget.
So the the one thing that is new news on those guidelines is the regional school committee met last week to talk about the auditorium roof and for the first time had an estimate of what that roof
repair would cost and what condition it was in. and the facilities person was there talking about visible leaks like drops of water coming through the roof and that they're spending money each year with patchwork repairs out of the
operating budget. So he was saying the roof is in basically really bad shape. The other three towns were stretched particularly two of them were really stretched to meet their share of the rest of the roof which was an 11
million. So it's a $1.6 $6 million estimate for the auditorium roof. And the schedule that's in the packet here that Sean Shannon put together uh noted that if we're going to do it on
the same cycle as the rest of the roof, there has to be action fairly soon. So if it was shared among all the towns, Emmer share would be about 1.2, a little over 1.2 of the 1.6. six, but it would need to
happen fairly soon so that it could go out to bed bid and be in line to be bidded at the same time the rest of the roof was bid. So the idea would be that the construction people come out and set up once and do the roof. So I wanted to bring this to the committee's attention
because the timeline means that we Ammeris will have to consider whether we want to do anything more on this. One year several years ago Sean actually Sean brought to us putting another million dollars into a regional program.
It was the track and field because it was clear they were going to be coming up short. So we have in the past used free cash to spend on a middle school middle school or regional school project. So this is a slightly different
context. And I just wanted to say that's the one thing that there's new information on of the guidelines. Sean. >> Yeah. And Kathy, correct me if I I'm wrong. I believe the committee decided not to request the funds of the towns. >> They said to take no action now. Exactly.
>> Right. So I think the challenging part is it's a regional building. So all four towns bear responsibility in supporting the facility needs of the building. And in order for the smaller towns to
approve this, they would have to call in order for them to use free cash to approve this, they would need to call special town meetings. Um, and I and so we'll know if the other towns call special town meetings, but I'm guessing they're not going to if the if the regional committee took no action.
So Sean, what would what if the council and the town of Amoris decided we'd fund the whole thing without asking the other towns to do their share and said we want to that there's an interest in making the building hold and that auditorium is
a general use as our other parts of the h how would that process have to flow through? Yeah, last time um you'd have to have a conversation with the regional school committee and I think we entered into a memorandum of understanding last time around with the regional schools um
around the track and field. The one thing I'll just restate cuz Kathy and I don't necessarily agree on this point um is that the MSBA is typically the mechanism with which roofs are replaced and the roofs
are replaced in the in the state. And so by doing it without MSBA support, it would essentially double the cost, right? We MSBA would cover somewhere between 50 to 60% of the cost of this roof, if not a little more. Um, but if
we do this without MSBA support, then the whole cost would be on on the four towns. And if we do it all ourself, then it would all be on Ammerst. Um, so it would it'd be taken on a significant new financial obligation. So just one piece of information on that Sean I asked we
had an estimate for the middle school ro for the middle school roof of three million when we got into the queue for MSBA and first we had to get into the queue then we had to get rise to the top by the time we got to the top which was about 5 years later it was 11 million so
it's just it's not clear to me that MSBA would move quickly on this is the only thing I I I want to say that It it it it it's only double the cost if MASBA acted quickly. It's not necessarily double the cost if we have to wait for a long time.
You know, that's the uncertainty on >> Yeah, we went through a period of rapid escalation, inflation, which could happen again. Yep, you're right. >> Okay, Lynn, and then I see Lynn and then uh councelor Breivick. >> Why don't you let councelor Breick go
first and then I >> Councelor Breick? I just had a very small point too just to add um that it's also important to take into account the maintenance costs too as was raised at the last school committee meeting. So in addition to thinking about that a grant
may not happen for a period of time what are we paying you know what's the differential in expenses versus savings. So I see Lynn's hand is up and Anna's hand is up. No.
>> U let me just go with a couple questions or observations. One is for those of us that have been in that auditorium recently, it's scary and there's no other word. When you're looking up and you're seeing tiles that have fallen down because of being wet,
it's scary. So that's one piece. Um there was a decision made by the school committee um regional school committee to and it has been um if I'm correct um endorsed through the state that now that
we are going to do this roof we have some level of commitment to maintain the building as a school for some period of time. they've been a little vague but usually it's 10 years sometimes 20 years and so it has to be maintained for the
purposes of education etc versus a costsaving of whether or not we would close it. But the school committee has made the decision to go ahead and therefore uh accept the grant to repair the roof uh except for the
auditorium. Well, my question is it either in the cost that we've seen for both both the middle school roof, not including the auditorium and the cost that we've seen
for the auditorium. Are both of these roofs solar ready? Because I believe that as a standard for at least the town, that's what we now try to make sure is that they're solar ready. meaning they can they can hold
solar panels. Um, and I'd just like to make sure that even if we no matter what we do that we make sure these are in fact solar ready. So Lynn, I can answer only because I sat through the entire regional school
meeting on the other part of the roof is that a small part of the other part of the roof is solar ready rather than all of it. And they had to spend an extra amount. And the reason is that the roof
itself was not designed to hold solar panels. And so they have to put if they put a new roof on, they have to put holes in it and the weight of it. So they they're it added cost for a very small amount of the rest of the school
building. I'm not sure why it was they the contra example was the new schoolware building where the roof was right away from the beginning designed to hold the panels. So I don't know how much of that it's because it's on the second floor and weightbearing for the
whole roof on it and so I don't know the answer for the auditorium roof for example which is its own uh separate section but we could get that. So MSBA won't pay for solar panels, but it required that this small section be
solar ready. And they spent something like an extra 30 or 30 $40,000 even though there's going to be nothing on it because there isn't it wouldn't cover enough of the building's need. So we can we can ask Shannon that this estimate of
the auditorium roof was done by the um same owner's par manager that did the estimate over. So, they went back up and looked at this. So, so I can that's all I can say to you is I don't know. Um, it was too expensive to do it for the
rest of the roof because it required a whole different roof was the way it was explained to the committee. So, Anna and then Sam. >> So, process-wise, Kathy, um, we have to wait for a request to come in from the
regional school committee regardless on this, right? This is this is not something the town of Ammeris can give a gift and dictate where it goes. Is that that's correct? Right. >> Um if if if they Yeah, I think yes. And if they thought that the we might be
willing to do the whole amount, they might reach a different decision than they met a week ago. >> Because that was kind of my question is is if you had any more information about why or if kind of trying to see into the future a little bit. um what the regional school
committee discussed around that possibility if that's something that you know knowing hypothetically knowing that that's in our budget guidelines as a as a possibility to fund more of this roof. Um, so that's my first question. And then I just wanted to
cosign with what Jill said about maintenance because I think that so often we look at the cost of a new project and I won't cite any examples here, but we look at a cost of a new project ignoring the cost to repair or maintain the existing status of the
project, right? And so we don't often do a fair comparison. Um, and I I'd like to see that information. I'd like to know what that what that cost is of that annual maintenance. But again, this feels a little bit getting ahead of myself if the regional school committee is never going to even request this this
funding. Um, and then that leads me to my last question, which is Sean. I just want to make sure I'm understanding kind of your perspective here. It's really interesting to hear your your approach and Cathy's approach here. Um, you're saying your preference is to wait and then reapply for a separate MSBA grant for the auditorium once it becomes
eligible for an MSBA grant. Yeah, I mean I would I would and maybe where we're headed heading is that there's a request for information from the regional schools for different pieces of what people are wondering. Um but I would a want to know what has been done, what
repair efforts have been done to that roof and what else could be done. Um, I totally hear hear what uh councelor Breivik said, but there could be a a middle-of the road uh more robust repair project that we could engage in that might buy time for it to get to MSBA.
Um, but I think the information I've heard so far is not enough where I would say, "Yeah, let's just volunteer and spend all the money on behalf of the other three towns as well." And I also would just caution there's a little bit of a a slippery slope that we could be heading
down where we did this one time where we paid for the track and field more than our share and now you know less than a couple years later we're bringing forward another project where Ammerse is going to pay more than its share and I just worry is that a trend if that keeps happening because I don't remember that
happening very often prior to the track and field and maybe my fault for bringing that forward. I'll take take uh you know criticism for that if need be. But um you know that wasn't meant to start a trend. That was meant the track and field is located in the town of Ammerst and it's used by a lot of
Ammerst residents and that was sort of the rationale for it. Um where the auditorium is more a school function. You know the town doesn't use it for town meeting anymore. Um it's you know it's not like people just walk into the auditorium the way they can the track and field. >> Thank you Sam. Uh yeah uh interesting
discussion. Uh it seems to me that the potential uh you know how po what's the likelihood of any MSBA is very significant in terms of the time frame of it. Um and also hearing if there's a possibility of the
other towns participating. Uh those two items aside, which are major, uh it seems to me it's a question of the extent of the deterioration of the roof, how grave is it? Uh in other words, over the course if it's delayed, how um how
much worse would it get? Uh that's information that would be worth knowing as Sean was alluding to. uh and incorporated in that is the maintenance. How much worse it would get and maintenance are uh kind of two sides of
that question. Uh and the other item that came to my mind uh as this was brought up was what are apt to be the projected increases uh due to potential inflation. So I see two different issues
uh which sum up to not enough information. I I I feel that the question of the MSBA likelihood, the other towns as well as um you how much how bad is it? I I heard
Lynn's comment, but I would be interested in seeing uh information related to that and related to how bad it is. How how expensive is a a stop gap? Usually, it's expensive. So, I um that's
where I'm at. More information would be helpful. I realize we're not making the decisions at this point in time, >> right? Well, we can't anyway. I mean, we don't have this is more a a the equivalent of a straw poll on and I'm getting to the request for more
information. Jill, Council Brevik, I'll just offer two things. One, just on the I think I know everybody worries about the slippery slope aspect of these things and so I hear you Sean on that one. Um, but I think that so two things.
one, I do think it's a community space or could be a community space uh used by lots of different groups. It's one of the few large spaces in in town that people can use for free. It was where my kids first theater performance ever was in the Lion King and it was full of
buckets cuz it was raining that day and the whole front row I mean it basically you know ruined it. Uh cuz it was it was really really unacceptable. I think about so then my just other point being that I do think there should be a
different weight given to things that are health hazards. I mean, this is something that could lead to a lawsuit uh or you know, it's just this li liability. Um and and also we do care about our the health of the children in
our town and you know, leaks cause air quality issues and mold and and you know, just a generally unsafe environment for kids. So, I do understand not wanting to go down the road where we're approving projects maybe like the track and field. I don't know enough about that project, but I I
you know, nice to have things. I do I understand that, but I really don't think that this is something that falls into a category where we should be worrying about that type of thing. Um, it also I I I just I
see like a nice pathway to getting done something that should have been done a long time ago and then I So, it's a little trouble. It's it's hard for me to hear. And this is just I'm just being brutally honest like get let's get an assessment of something else. Let's do let's go get
you know like a lot of red tape holding up something like this where you know and as Mandy Joe and others have said it feels like there is a night there there is you know an opportunity here to get this done while the rest of the roof is being done to take care of a problem
that is honestly an embarrassment um and that that really should have been done a long time ago if we can do that for a fairly negligible amount of money to me and I I know I'm I'm preaching to the choir to a lot of you here. So, I'm
not I'm not uh but but those are just the points that come to mind, you know, and especially as I heard a tremendous amount about this in in campaigning and just in my work in the community. So, I think anything we can do to move ourselves along on this issue, I think would be really great.
>> Sam and then Lynn and then I have a a a way I think to move forward on this that I will suggest. Sam? Yeah, I I think councelor Brezi way uh brings up very good points and uh uh I'm not sure how recently your kids performance was in
the in the auditorium, but it would be worth knowing. Uh >> years ago, years four years ago. Yeah. >> And and there has not been repairs or improvements to it in that time. Uh unknown. Um, I'm not suggesting that
letting a roof sit to get worse is a good idea. Uh, I've was a contractor and I'm familiar with how things can uh, become more involved. Uh, but what I was alluding to was that more information
would be helpful. I didn't see anything specific in the packet for this evening's meeting which could be helpful. uh and I absolutely recognize the uh how damages could get worse depending on
the nature of the leaks particularly in winter uh when ice happens. So, uh that's a uh caveat to my request for more information and uh it the
questions regarding the MSBA and uh other towns participating aside from whatever the graveness of the situation is uh assuming the information projects that is uh just a straight financial one uh distinct from the urgency. Uh so
thank you councelor Breivik for your uh I don't know if it's anecdotal or or personal uh uh experience with that >> Lynn. >> Yeah, I appreciate the various comments. Uh my comments are really more towards if we're going to seek additional
information, here's some information I would like. So Kathy, why don't you >> Well, that's what I was just doing. So I um I actually uh the the regional school committee chair asked to talk to me after we talked today. So but we can do
a me an official memo from us. Um so what I have down is um do they have a report and there was one in 2022 that I know exists but could they provide us the report that was done in 2022 that
specifically looked at the auditorium roof? It would be one, you know, how bad is it? Number two would be um any repairs that have been done since, you know, what is the cost of that they're spending now with annual or emergency
repairs on the roof again on this particular piece of the roof. um how degraded it the will be if they don't put major money in if they have to wait one or two more years before any money
or more and then I was going to ask how long did they have to wait when they got in the queue accelerator repair you you're in a queue with others how long did they have to wait before we got to the point of approval for the big part of the roof just you know t just time so
those were the the Gail I think it's the Gail report. Sean I think you got a copy of it but anyway it has a name. There was a consultant brought in to look at the roof. Um and then the maintenance person um Mike Gallow knows what the current condition is. He's the one who
spoke at the regional but putting it in words on paper rather than just um thing and then how degraded it would be. So are those did I get all the the pieces of information that we would need that
piece of information and then how much of they're not taking any action was if if and that's this is the part I don't know how to word if Ammeris might consider the one point the full 1.6 six.
How h high how how high a level of urgency do they think this project is? You know, would they say extremely urgent? You know, somewhat urgent, you know, what what's the level of urgency of this repair? So, those are my uh five
because just so people know, the the big issue is the other three towns. Um two of the towns exhausted all their free cash to do the current roof repair. They they're out of money. So, they're looking at an override. They're in over an override. So, they
can't, as Sean said, they would have to do a town meeting, but they the likelihood of them being able to do a town meeting on this one piece with a yes, they don't have the time anyway. So, they just said can't happen timewise. So, Lynn, do did I did I miss anything
in terms of what we'd be asking for? One of the things I would want to know is when would we actually be eligible for MSBA money, >> okay? >> Because if it's two or three more years, then we need to take that into consideration. >> So that's my MSB time. So it's eligible
because you can't be in while you've got any active project. So it's when eligible and then time to rise to the top of the queue, >> right? And then a second thing that completely it I mean this is part of it
but uh and this is really a question for Sean and that is anywhere in our records or the records for the regional schools is there an accounting of how much each town has paid towards the regional
schools over the years and the reason I'm asking that on a capital side the reason I'm asking that is because it does look at this trend and that you know you've expressed concern about and I understand the reason for your concern. Um the the issue is that when
schools are um then abandoned they are often then given back to the municipality but in this case it's for municipalities and so it's not even clear who it goes to. It's not even clear to me where we
stand on terms of equitable contribution based on our populations and so forth. So, those are really my only additions, but thank you for this conversation. >> Jill, anything to add to my list? >> Just a very small clarifying question
since this was in the budget guidelines. Can I just ask if we're were these conversations that were had at that time because it feels like it was I'm just wondering if we're we're kind of rehashing something that maybe was already discussed at the time that it got into the budget guidelines. It got
into the guidelines because I had we knew the auditorium roof wasn't covered and there was a report that's they said it was in bad shape and at that point uh the finance director did not have have
an uh an estimate of what it would take and all we knew is that it couldn't be included in MSBAs because it wasn't old enough. So it wasn't really even discussed at the regional school committee the auditorium other than unfortunat you know they were told it's
outside the scope of MSBA so it wasn't uh how bad is it kind of discussion uh there wasn't that wasn't the focus so it was an awareness that if we could it would make sense to do the two at the same time rather than to have to do it
set set up once and then set up again for another part of the roof. So I see two more. You know, I just want to say for Sean, for the regional school, the town uses the pool and we use the gym all the time. >> Yeah, we pay we do pay for that though.
The So the region charges us for the use of the pool and for some use of different spaces. That's part of the work that the recck department is doing with the school to document all of the the different arrangements where we provide services to them, they provide services to us. So um that accounting is
still kind of going you know being developed. So I just think the integrity of the building is what we're talking about here, you know, on a, you know, that you don't want to allow a central sits in the middle. Walls are shared with other pieces, you know, so this is it's roofness that we're worried about.
But yes, I understand what precedent this is setting. So Anna and Sam with my I think we're asking, you know, what other information we need to get back if we if this moves forward at all. Yeah, mine was really just kind of a response
to council bravik's question. This was something that I think I ended up making the motion at council to add. Um, it wasn't necessarily a huge uh it was not something that was initially in the the version voted by finance. It was in the version the council voted. So, there was not significant or robust discussion.
Um, there was small discussion, but I would say we're not rehashing this is we're we're going more in depth than what had occurred before. If that's helpful, >> Sam. Uh, thank you. Um, in terms of new information we could get, you referenced
asking what's the current state of the roof. Uh, I'd like to add a subcomponent of that is, uh, how has the current state been altered by any repairs that might have happened in the last few years? In other words, has it been
dramatically improved or not from repairs that might have been made? uh because uh early on uh in our discussion here there was a question about what would be the uh additional costs of delaying and that's related to it. How
how much of an impact can a repair of some form take in order to buy time versus is it going to cost Ammerst more two years from now than would have been contributed by the other regional
schools. Uh so I'm looking at the decision tree model at the top of course is just how grave is the situation and a subcomponent is what impact has it has or might repairs of a you know whatever
nature make if that's already been discussed from not necessarily whole assessment from a study but from what the uh uh the manager who the the project person who's done it in the past the internal our opinions. Thank you.
>> So, I will I I've taken notes and I've got little scribbled notes on the side, so it's not eloquent yet. Um, if it's all right with everyone, what I'll do is I'll draft a request for more information about the auditorium roof.
I'll send it to everyone tonight and if you would get back to me with any word smithing of anything I've met then we can send it on to and then the question of who I think we send it to the chair of the regional school committee. Um it
would be my thought of who it goes to and then she or the regional school committee the the people that will have answers to these are going to be the finance director and the facilities director. They're the but they would be have to be asking for, you know, any
reports they have. Um, as you said, Sam, what kinds of repairs over the last few years have been made? You know, what did they cost? What did they anticipate over the next two years having to put into it? And then Linds, um, when would they
become eligible for MSBA? How long do they think they would wait? you know and and I guess my final is how urgent do they see how urgent do they see this repair you know you know given that and that we would like something back in writing from them um you know and given
this is all in the context I just have to make it clear I think it's in the context of uh the other three towns indicated strongly two of them no interest right now um so we're potentially talking about uh the ammeris
amor being able to do it out of our free cash. And if we don't move soon, you know, if we if this drags on, um it won't be it won't be an option to do it at the same time as the rest of the roof because they're going out to bid and then construction would be June, July,
and August. So that's that's the timeline on set up once for the roof. So there's the urgency is just to make to put a period on it um if it's going to move or not. Does that sound like a I'll draft this memo from the finance
committee with all of our names on it. You all respond to me just one at a time. Don't respond all to any edits you want and then I send it off. Jill, >> do you want to add a date that you were
requesting the information back by? >> Uh yeah, I will. Um they I was told that the regional school committee has another meeting on June uh June right January 28th January 28th. Um and so uh
it will be um whether the chair of the regional school committee can get the request for some of this information into motion before they meet as a full committee. you know, just to say they're going to need more or whether they're going to have to ask for it at that meeting is what I don't
know, Jill. And um what I would say it would be good to have it by February 3rd would be that's the next time we meet or February 2nd, you know, so put it tight. You know, some of this is they either have records of what we've been asking for, how much have they spent on repairs
each year of the roof, right? And what's their best guess of what they're going to spend this year, you know, so some of it is in their file somewhere. Um, does that make sense for a a deadline? You know, I'm saying the third because that's the next time we meet. Then we
don't meet again till the 20th. Um, >> but aren't we talking about the use of free cash on the >> So, free cash. >> Yeah. So, no, no, for them to get the information back to us. I think you said deadline. So, that's why I was saying just get it back to us by no later than
February 3rd. So we we have this information. >> We don't want it in advance of the council meeting on the 2nd. >> If she Well, if they could So I hear what you're saying. So would it be better to say um
January 2nd, which is when the council meets? Okay. It's just it's it's a short timeline from when they're meeting. So I I'll ask, you know, and if they say not doable, it's not doable, right? Does that Okay, Sean.
>> And just in terms of timing, I think the region needs to know whether there's the possibility of this being funded in order for them to develop their bid documents. I don't know if they necessarily need the funding by, but Well, we'll have to go back and look at Shannon's memo and see exactly when. Does it say exactly the date they need
the funding, Kathy? >> Yeah, I'll look. Um >> I assume it'd be before they sign any contracts. They would need >> before they sign contracts. So, the arms roof arms roof memo. I I have to look at it again. I had
>> But that that lays out the timeline of when they need uh funding approved. >> Yeah. Okay. It's It's in our document, but I'll have that. Yeah. Okay. Exactly. you know they and so Sean it
was in I think you can't go out to bid unless you've identified a source of your money you know so that it was partly the bid documents and Bob parent on our side would be working with them you know on the bid documents so I'll
just look at it again I'm sorry I I thought I had it open but I don't have it open I know where I can find it any case Let's let's assume this tight deadline will at least alert them that we need the information sooner rather than later and then they can get back to
us. I mean I see Shan is looking for the memo too. It it got forwarded to us by Mandy. Um who Sarah sent it to Mandy. Everyone has it. Everyone who's on the council has it and I have it in the
packet but for some reason I can't open it. So, is that a is that enough of a discussion on this topic? Yes. Okay. Thank you everyone. I'm sorry to prolong it, but it seemed
like it was timely. The next is the quarterly reports and um when we posted the agenda, we didn't know for sure we'd have second quarter. So, you have both first and second quarter posted. Um and Sean, I know you said you had another
meeting at three. Were you able to? >> Yeah. No, we'll we'll delay that. That's fine. >> Okay. So, um I propose we go right to quarter two, which is the most recently quarter report, and then Sean can walk us through what we're seeing, and then
then so he walks us through what we're seeing, then we ask questions or comment. >> All right. Um can you see it on the screen? >> I can. Is that good for everyone? So let me just since we have some new members. So we provide this quarterly
usually within 30 days after the quarter ends. Um the end of year one sometimes takes a little bit longer but now we're in the middle of the year so we're trying to stay on that schedule. Uh and we provide you a little bit of a narrative about
the general fund and our enterprise funds. And at the back of the report, which is probably the most interesting, um, is a revenue u summary and an expense summary. So, I'm going to probably start there just to explain what you're looking at and
then I'll go back to the beginning. So, through December 30th, 2025, these are different categories of general fund revenues. And the estimated revenue column is what we built our budget off of. And the actual year-to- date is what we've collected so far. And then
remaining is just the difference between those two. And then percent collected gives you a sense of how we're doing relative to our target. Some revenues are are um seasonal or they come in at certain times of the year. So because a percentage is high or low doesn't
necessarily mean it's going to be a great year or a bad year. It could just be the timing of when the revenue comes in. Um, a good example of that is motor vehicle X size tax. So, if you look at motor vehicle X size tax, we've only collected 13%. That's all stuff we've collected from prior years. Um, the big
uh commitment for motor vehicle excise tax comes out around now. Um, and so we'll see that revenue start to come in. But, so revenues are less, you know, it's harder to tell by the percentage with with revenues than it is with expenses, which are a little more evenly
paced out. Um, but some that we've talked about that I'll just highlight. So, investment income, that's one where we talked quite a bit about that. So, our revenues that we've estimated were 500,000. We've collected 754,000 to date. Um, so we've hit, we've surpassed
our target for the year. Um, and that number will grow, but it's not quite as high as it was last year. So, last year it was well above the target at this point, and um, and this year it's it's hit our target already, which is great. So, we'll we'll be we'll beat that one.
Um, licenses and permits a little bit over 50%. So, it's pretty close. That's another one that we talked quite a bit about during budget um budget guidelines. Uh, what else? Some any that are trending low. Pilot is a little bit low.
That's that's a timing and it's actually a journal entry that we have to do on our side. That is more of a timing um situation right here. So, that'll be 100% collected pretty soon and that'll be done for the year. Uh but all in all for the general fund we're at about 51%
collected which is a little bit lower or you know decent amount lower than last year. So last year we were at like 54% collected at this time. Um not the end of the world but it it may be a sign that we're not going to end with quite
as quite a large of a surplus as we did in the past year um at the end of this year for revenues. And then I'll I'm just going to go through enterprise funds on revenues and I'll stop and see if there's questions on revenues. Um and then the enterprise fund. So we put the sort of the
operating revenue and then if there's any transfers, but these are all you'll see these are all the operating revenues. And so these are really important to look at because these are based on usage and how much demand there is. Um and if we look like we're going to come up short, we might have to do something midyear. They're a little bit
below 50% but they're actually doing better than last year. they're higher percentages collected uh through this point in time um than last year. So all in all, we're these look like they're doing pretty well except for transportation. And transportation is the one we want to keep a close eye on.
Um you know, we lost the parking lot in front of town hall. Glad Paul's not here. He doesn't want to hear me say that. Um but we've lost the parking lot for a town hall. So we really got to monitor these revenues closely because that was, you know, theoretically that re that parking revenue dispersed elsewhere. But um it is falling a little
you know a little lower than that 50% mark that we'd like to see. So that's revenues. Lynn question. >> Uh can you describe what makes up the pilot revenue? >> Yeah. So this section of pilots in
particular is um enterprise fund payments. So the enterprise funds own lots of land um in particular water and sewer own lots of property and that's one of those kind of indirect costs that they reimburse the the town for. Um because enterprise funds are really
supposed to reflect all of the costs associated with providing that service. And so the bulk of that pilot section you know 90% of it 95% of it is coming back from enterprise funds. And and where, for example, will the pilot that
we receive for Hickory Ridge, will that go into that account or is that a separate account? >> So, if it's if it's a sort of a regular um like a property tax pilot or a personal property, that will show up in our in our property taxes still. We have
a few of those that still show up in property taxes. >> Okay. And where does the state contribution to pilot show up? Um the state pilot is an assessment. So that comes in as a state assess um and state aid. >> Okay. >> Like like the the payment for the land
that they own comes in as state aid. >> Thank you. >> Any other questions on revenues? Even curiosity questions for our new members if there's anything just want to ask. Now's a good time. Kathy.
>> So well I have a uh comment question. uh investment income is running 50% higher than we budgeted for. So which is because it was a large amount for starters is $250,000.
Do you have any sense and just what one of the things we found out for everyone on the committee that I didn't know before this is not investment income on our stabilization on our reserve funds. That's that that investment income is
stays in those funds. This is investment income on money waiting to be spent on a capital project we've approved or some other piece that that is correct Sean. Yeah. >> So if if I take that are we potentially
if you took it out for a full year given that we've got more than it's not going to go down everyone. That is the amount we have. So, >> can are you at a point because you know what the base is that the earnings are on, will we be running another 250,000
for the next half of the year? You know, >> you know, let me let me check with um with our treasurer. So, a big portion of the investment income here comes through as CDs that expire. So, it's a little bit about timing of when those CDs expire when you know there's a monthly
kind of regular checking account interest that is more predictable and then there's money that's in CDs that it's when it comes due. So um in terms of how much more we'll collect depends how much more is still in CDs >> and then doesn't it also depend on what
the basis you know I know at one point we had taken money for I think it was a fire engine or something but they couldn't be del couldn't be delivered for >> yeah so like some of that money is going out so some of that money is going out the door right so we paid um we paid for
the ladder truck uh for example but we also were borrowing money to for that ladder truck in March. So, we'll be reimbursing ourselves essentially for paying for that ladder truck a um this past month. So, some of this money this interest earnings is on borrowed funds
for the school project for example. Um basically unless the interest is required by law to be accounted for separately which like for MBLC the library grant that's required by law stabilization funds and trusts those all are required by law but unless it's required by law essentially the interest
revenue belongs to the general fund and is shown here. Um so yeah capital projects is a big one and we have some big capital projects going on right now um which has contributed to some of this higher interest. So I know you don't like to look forward based on a second quarter report. So I was doing my what
might this look like in the end. And then my my other two is the hotel motel. Even though it's running lower, we're at almost 100% of what we expected. So and meals. These are good news things. I'm not those are good. >> These are good news.
>> And these are all areas that we've adjusted up in our FY27 projections. So when we look at the FY27 projections when we come back in February, you'll see that the numbers that are in the estimated column, we've already looked at the history and brought those up. And
some of what we'll do in February is, you know, look at the new data coming in as well and see if that if we're still comfortable with what we put in FY27 or if we want to increase it a little bit or decrease it based on this information. Okay. >> Uh Jill, uh Councelor Breick and then
Sam. Sean, I appreciate you taking the time to go through all of this. And this is maybe a newbie question, but um in the nonprofit world, we usually have something that's called a budget narrative. Is that something that exists here or something? I'm thinking about
transparency and public the public's ability to look at these documents and read them as well. Um so yeah, wondering if there's something like that that maybe I've missed. Yeah, the top of this report has um we don't go through every line, but we highlight some of the like the key trends or the points some of the
key points to look at. >> But I mean I and and for revenue, but also maybe more importantly for expense, I would probably have the same question, but yeah, something that did go through it line by line. No, we've this is sort of the level of quarterly reporting that
we've um provided >> and and and Jill, I just point out it's also what Northampton particularly on quarterly the end of the year one has a lot more information. >> Sorry, I just to clarify I don't mean I
mean something more evergreen I guess is what I'm thinking about. And so I I do >> like something that just explains it once so that people know like what's in >> what items are in each of these lines. >> Yeah. No, I don't don't know if that exists, but that's something we could um
we could create. And so let me let me take a stab at like almost like a glossery or something or an appendix that could be added to the back that just outlines what's what's in each category. Um that's something we could do. >> Yeah. I just think when the question about the PL pilot line like you know
areas where >> it's not glaringly apparent. Um >> you're saying just a definition of what what's even in this line like what so we don't have to ask it again. That'd be great. >> What comprises each line? Yeah. >> Yeah. We can work on that. >> Cool. That's great. Thank you. >> Sam,
you're muted. You're muted. Sam, >> thank you Kathy and thank you Sean and your staff for putting this uh report together. It's quite informative. Uh a question maybe not just related to this but in a
bigger scale. What do you see uh as the biggest areas of risk for revenue uh in the future? I'm assuming it might be state aid but it's an assumption. Uh maybe that's beyond the scope of this uh um of this uh discussion, but I'm just
curious from your perspective if you were to look at this and say this is what I worry about. Uh I'm curious what you know if there's a particular segment uh that has enough potential variableness that uh or uncertainty.
>> Yeah. No, it's a good question. >> And then if you're going to do the expense similar >> Yeah. No, that's a good question. Um, I think it it really depends on what section we're looking at, right? So, so state aid, we haven't seen it drop in a long time
and we haven't seen 9C cuts in a long time. However, state aid is an area that with sort of some of the, you know, what's going on in Washington and especially, you know, some of the rhetoric around blue states and funding for blue states. That is an area that I'm concerned about. Um, you know, I'm
hearing, for example, that the Affordable Care Act subsidies LA, you know, expired or some of them expired and the state has already kicked in some money to preserve them. If that's on a permanent basis going forward, you know, that takes away resources that might otherwise be used somewhere else. Um,
and then the the state did come out with their revenue forecast and I I forget the exact percentage at this point. You know, they they I think it was around a 3% growth uh for state revenues. Um but they did highlight some big concerns as well in terms of uh what may be coming
their way. So so state aid is one that I'm concerned about. Um economic activity in town is another one. If there's an economic downturn more broadly uh that could impact our and we have seen it in the past that could impact our meals taxes that could
impact our um hotel motel. And then related to that, and we've saw it this past year, and it was the first year in a while that we've seen it, is if our new growth starts to slow down, that really impacts how much our revenues grow as a whole because new growth as
tax base more than the allowable 2 and a half%. So that allows our property taxes to grow at a faster rate. Um, but along with that new growth is a lot of our uh building permit revenue, which and our licensing revenue, which is, you know, this past couple years has been really strong. um if that starts to slow down
and our new growth starts to slow down is kind of a double whammy. Uh so I'd say, you know, economic activity in town, new growth, and state aid are um you know, three of the areas I'd be concerned about. >> Thank you. Council, councelor Bick,
>> can I ask one more just sort of process question um that a constituent brought up to me which is is it possible in these quarterly reports and maybe this isn't the place for it but to see prior year data as well just in for ease of
getting like an at a at a glance sort of understanding of the situation. >> Yeah. Um I can we we do post all of these online so there's a history of every quarterly report. Well, not maybe not every, but there's uh a running list of all these quarterly reports. Um, but I can think about how maybe we can put
it into each current report. You know, the the thing I do, for example, when I do these reports is I go back to last year and I look at the prior year to see what percent collected were we through December last year and compared to this year to get a sense of are we, you know, how are we comparing to last year since
I know, you know, ultimately at the end of the year how we did last year. Um, so maybe something like that could be added to these reports that would give you at least, you know, two years time span to get a sense of how we're doing. >> Yeah, just a thought. Thank you so much.
>> So, it looks like you can go to expensive. >> Okay. You didn't say expensive. You didn't mean that. That wasn't a tip of the tongue, right? It's not expensive. >> Um, all right. So, this is the expense side. So, very similar. These are uh this is the budget that the council
votes and uh broken down by uh department. What the budget is, how much has been expended. Incumbrances just mean that there's a a contract or a purchase order in place, but we haven't spent the funds yet. But those but the dollars are earmarked for a certain uh purchase.
And then sorry I got cut off the the col second column from the left should say available budget. And then uh percent used. I think one of the rows got cut off. So again here this is more um you know you're more able to look and see how we deviate from the 50% level to get
a sense of how we're doing. Not necessarily in every single category but in most categories. So uh for example town managers at 48.9% spent pretty close you know pretty uh much on track um with being at 50%. um areas where you see it lower, it's
likely there could have been a vacancy. You know, finance director, we had a vacancy for several months, so you know, we will not hit 100% with the with the in the finance director section. Um accounting had a vacancy. Again, that's part of why they're trending lower. Um some areas that are over 50%, it's
because they might have a contract that they've, you know, it's a once a year, start of the year expense. Um, so especially you see that a lot in information systems where a lot of their software renewals come up at the start of the year. So they're always trending a little bit higher.
Uh, what else is in here? Scroll down to the bottom. You'll see in here you'll see the schools. So we've got the region. The region assesses us quarterly. So they're that's why they're exactly at 50% because they've sent us two bills for the operating budget. Um, and then the elementary schools, that's
within within our town budget. But we track that so you can see where they're spent. They are typically a little lower than 50% as well because they uh have four summer pays. So what they pay their teachers in July and August of of this coming summer actually gets rolled back
to this fiscal year. So they're typically a little lower than 50% at this point. Um inner fund transfers, you'll see that's 100% spent. That's what we send out for capital. So whatever gets voted for capital, we basically fund all of our capital accounts. It
comes out of our general fund. It goes into capital articles and then we track those capital articles and those projects. Um and then if they're not those funds aren't spent for any reason, they get closed out and they can be appropriated again in the future. Uh but yeah, so pretty
um nothing stuck out too much other than I did want to highlight that we do have two collective bargain agreements that are not executed at this point. So there's a reserve for the outcome of that, but we don't know exactly what that outcome will be and there will be a
retro payment um that will hit at some point when that does get settled. So, just keep that in mind that you might see some of these numbers jump up a little bit once that contract is settled. What else? Any questions? We're at um
52.9% spent, which is a little bit higher uh than where we were last year. We were a little bit over 50% last year at this point. >> Lynn, >> Lynn, >> are those town contracts that are not settled? >> Yes. Yep. Those are town contracts. Yep.
Okay. And uh has the school settled their contract? >> I haven't heard that they have. >> Okay. All right. Thank you. >> So I have a a couple Sean that are sometimes it's a comment, sometimes it's
a question. So on debt service, we're running 15% on death service. Um, are there balloon payments that happen in third and fourth quarter? Is this, and that's question number one, that's part of that. And the second, um, does this
include the debt service override that we've done for the Fort River School or the Ames Brook Elementary School? Um, so what what's in that three? >> Yeah. So, so it does include it does include the override. It it does include
the override. Um and the uh payment or so the way that works is we have a like a semiannual interest payment and then an annual principal payment and um interest payment. And so the big one that will be coming out of there is the school our bonds for the schools. We
have two bonds uh that for the schools that come due in March. >> Um so we'll be making principal payments on those which will use up uh most of that money. >> Okay. And then on the um on fire they're running
slightly higher 53%. Are we fully staffed up at this point? Last year we were running under because they had vacancies. Fully staffed. Yeah. >> So last I heard they they were in the process of hiring somebody that would fully staff them. >> Okay. >> So I I think they might have had one
vacancy for a little bit but and but they filled many of them. Um so I believe they are fully staffed at this point. So, this may be may be issuing may be indicating an issue if they're not fully staffed. Um, then on uh what was my
other one? Uh oh. On inspection services, are we now fully staffed on that? So, LA half a year ago, we were still looking to hire. Um >> I think we've only filled one. I think we filled all the new positions except
for one. I think they're still looking for a second inspector. Uh I think there were two inspector positions related to the housing um component and I know when I last looked one was filled but the other one was not yet. >> And for the rental fees for the
inspection fees that we're charging and for the is that all under fees? It's just >> uh that comes in as revenue under under the licenses and uh permit section. I'm assuming the answer to this is yes. Do you track it separately? So if we said
what is the revenue from inspection fee and what is the revenue from um >> yeah we're able to provide you that they so part of the new um uh staffing structure is there's a sort of a dedicated administrative position.
Um and that was one of the questions I asked when we were working on the budget was what do you you know what have we received this year and what do you forecast for next year. So yeah that information is available. >> Okay. I think those were my main um you know and then it's a minor comment
comment and question on DPW on the traffic street lights and traffic lights in the JCPC budget. We put $50,000 in for each of those categories >> and one was like changing out light
bulbs or something. It was capital. Does this budget for street lights and traffic lights reflect well it clearly to traffic lights? It can't because we put 50,000 in. So >> yeah, this doesn't reflect anything capital. The only the only part in
capital anything voted in JCPC is part of that interfund transfer that I showed you that was 100%. Um because that's where that whole appropriation goes and then it gets transferred out. This section is more for the operating piece. So like in street lights, a portion of
our electrician gets charged there. Um and then there's some other some line items in there. But yeah, this is not the capital money, >> you know, cuz I just for others, part of the intent was opening up those lines was uh making sure DPW had enough
capital money to actually install a new street light if we needed one, if one got knocked down, not just fix it. Um, so and and then traffic lights, it's got a specific name, changing out the bulbs or doing something with the traffic
lights. So there were those were new to the capital budget that we put in to help out on the DPW expenditure side. So I just wanted to make sure we track how it was to augment their operating budget. So okay, thank you.
So, you know, in in kind of summary, revenues are, you know, over 50%, there, you know, no major concerns there, but it's it's trending a little bit lower than last year. Expenses were trending a little higher than last year. Um, but I'm still uh at this point okay with,
you know, department by department where things are at. But if anything changes with that, we'll, you know, we'll let you know right away. Um and then on the revenues and the enterprise funds, the the major concern at this point is the transportation fund and monitoring those
revenues. Those are always been a little tricky and those again are sort of economically driven. How many people come downtown and pay for parking? Um on the expense side, you'll see this here. Uh the sewer we uh all the interfund
transfers get done at the start of the year. So those are always spent 100%. But the rest of the operations, you can kind of track track the spending. Water department's a little low. There's a there's some annual journal entries that didn't get done yet. Um that expense things like benefits and um and
insuranceances and different things that we allocate out to enterprise funds. So that's why they're a little low that we've got to we've got to do that. But overall, the enterprise funds on the expense side are doing okay. Um again, no red flags. Parking expense-wise is doing well. Um, really just a revenue
issue with parking. Any final questions on the Q2 report? >> I don't see any. And I just want to thank you for getting it to us. This is great. >> Yeah. Sorry. I would send it out normally more in advance, but saw it on the agenda and I was like, I can think I can get this done for Tuesday. So,
>> no. Thank Thank you very much. I it's nice to get a quarterly court this soon to when the quarter ended. So, thank you very much. >> So, for next the next time we meet Sean, it may or may not have the close out of
the year with certified free cash. It depends on when you council meeting. Correct. Correct. >> Yeah. So, we have to So, just again, I think I might have said this, but um some of this has to do with the road plan that is going to be brought to the
council um because part of our appropriations may or may not include some additional funds for roads. And so, if it was just the appropriations and we weren't thinking about the road stuff, um that might be able to happen sooner, but we we were still working on what that long-term road plan is that the
council has requested. So, it'll likely come at the same meeting or around that date when we bring the appropriation. So, that's why I'm thinking it's likely going to be the second meeting in February. Um, unless there's some sort of emergency need like the middle school roof if the if you guys get the information back and
it's an emergency that could be taken separately. >> Okay. And anything else? I mean norm just so people know normally I wouldn't have to ask this because I would have sat down with Sean to say what do you think for the next two or three agendas was coming up but since I wasn't chair I
didn't do that and plus he's been working really hard on behalf of all of us so I figure he didn't need to meet with me so just are there is there any any other you know we the other things that periodically come to us and we'll know them is that some uh financial
expens expenditure gets sent to the council and then it gets referred to finance. Um and that could be a long large variety of things. So I I just don't know what else we might have. >> CPA will be coming up at some point. Um they likely have two more meetings.
They're going to meet Thursday and then I think they'll they'll need at least one more meeting um which will be the next the following week. So that'll probably go to the council in February and then be referred to finance committee.
Okay, Lynn. >> Um, this it's really not for this meeting unless you want to address it, but Sean, you mentioned at the four towns meeting um the budget uh directions that departments have been given in town. Uh and it would be useful
at least for me and I hope for others to understand what those budget directions are and why. >> Sure. Yeah. the the 10% um >> decrease. >> Yeah, I can quickly speak to that if that's okay, Kathy, since we have a little bit. Um so, we've asked
departments, we've we um we've sent out budget development documents to departments. We've asked them each to identify reductions up to 10% of their current budget. um we held two optional meetings with them to kind of explain, you know, some
of the factors that are why we're looking at reductions this year. This is a little bit different um environment than where we've been in the past. Um even last year, while it was a difficult year, you know, I think this year could be worse. Um and so some of those factors that we've explained to department heads are that within our own
budget, we're looking at an 18% health insurance increase. Um it could come in a little bit lower, could come in higher. We don't know yet. But at this point, we have an 18% in uh estimate and we have to start working out our budgets. Um there's the state aid component that I you know we briefly
talked about which is state aid's unsure. Um and there's concern that that could you know impact one way or another our funding. Um there is the schools and the fact that both of our school departments are looking at large reductions and you know how that you
know overall budget health um could impact departments library and the town as well. Um and then what was the last thing? There's one other thing bear with me. Oh. Um,
you know, and at the same time, we've been asked to bring forward a a multi-year road investment plan and to take a look at the fire department staffing and come up with a plan to improve the fire department staffing. So, you know, all these things are sort of trending in a way that there's not
enough funding to do everything we want to do. And we've also framed it as, you know, we're not going to make every reduction that is identified. Um, we may not make any reductions that are identified. Maybe, you know, something moves in the right direction, but we have to plan for several years going forward. It doesn't there's nothing that
to me indicates next year is going to be substantially better than this year. Um, so this is just a a process we're going through that we haven't done in a long time that will give us information and help us um, you know, best position the town and provide services to the community.
Sean, let me just use an opportunity to say it's great to have you back. >> Yeah, I was Well, I've I've started all those meetings with not the budget year I wanted to start with um because it's not not uh we haven't had to do this in a long time. Um but the departments have
been department heads have been good and we've also framed this, you know, Paul, you know, sets this tone. This is an opportunity to think creatively about the way we deliver services and um you know possibly identify you know less expensive ways to provide you know equivalent service or close to
equivalent service and there could be impacts. We've also been very clear to the departments like tell us what the impacts will be um the council's going to need to know that and so you know as we make these decisions >> Jill councelor brevik. >> Yeah first off just saying super
grateful for that process. I I think it's going to help, you know, especially for new counselors, get a sense very quickly of where things are at from the perspective of the people closest to the work. So, I I'm just yeah, grateful that's happening. Um, I was just
wondering, and correct me if I'm wrong, we were maybe throwing out things for future agendas as well. Um, I would love at some point to have a session on the various stabilization funds that the town has uh
currently, you know, and I think members of the public might tune into that and I've gotten a lot of questions around it. What are the uses? How do they work? What do they go to? um and kind of just grounding us in an understanding of how we what how those funds work and then
how we might be able to use them to get to a place of greater stability so it's not you know each year isn't this kind of frantic feeling uh situation for the town. The other one we had um that didn't get happen last fall was an
explanation of the ambulance fund which is a big fund that we pay capital out we pay ambulance out of but it sits there and how does that actually work so um I can work with Sean on a if the third
doesn't have certified precache it might be an opportunity to do these how do these work you know we'll just we'll just figure out agendas so that we're not bumping into other things so that we can have a a good discussion on it. Yep. And it would actually be great
stabilization fund because we could find out how much is in them right now both how they work. You know, the last number we had was in the budget book and that was as of April 2025. Yeah.
So, and suggestions like this along the way are most welcome. I mean, they often come up in a meeting and then we try to figure out how to get them on an agenda. Lynn, >> the other thing is even though um the council chose not to do any referrals on
the charter um recommendations, there were several that relate to to um >> Jeff finance and I just want to make sure that we don't lose sight that we they may get referred to us because they would require changes. I'm not and some of them I think we have to check against
state law. >> Okay. Well, and and one actually I had asked Sean about if you look at the budget book itself, the one that comes out in May 1st, I have long had ways of
simplifying it, making it less long and at the same time adding some tables that would be useful some So, we might have a either session on that or just periodically we've asked for finance committee people who stare at it. you
know what what would be improvements to the presentation. Um and Sean originated the very creative thing we're looking at it but that was now eight years ago. So you know we could and the idea would to be to save you all time too you know so
that something that would be pretty easy to do in terms you already have the extra detail. Um, so so that could be a a session and that was one of the things that came out of the charter commission when is and asking for a change in the
level of detail and transparency in our budget. Yeah. So okay, I have that on my list. That's great. So any anything else? I don't see any hands.
I want to thank everyone for what was a great first meeting in terms of uh substantive discussions. Um and I will make a motion to adjourn. >> Second. >> And I will put that to a vote. Lynn
>> I >> Kathy is yes. Anna >> hi. >> Tom Hi. >> Jill. Uh councelor Breick. >> Hi. and Sam >> I >> we are ajourned and for people don't
know the trick if you just press down your chase chase space bar it temporarily de dismutes you so if you can't find the unmute button so we are adjourned and I will see I'll get everyone a memo and just get back to me
directly to me on any wording changes on it and then we'll get it off to the regional school committee. So, thanks everyone. >> Thank you.