I will call the by board to order for Tuesday, September 13, 2022. Due to the ongoing CO 19 pandemic, in accordance with chapter 22 of the acts of 2022, suspending certain provision of the open meeting law, public bodies otherwise governed by the open meeting
law are temporarily relieved from the requirement that meetings be held in public places open and physically accessible to the public so long as measures are taken to ensure public access to the body's deliberate deliberations through adequate alternative means. This meeting will be
live on Zoom. The public may participate remotely by joining Zoom meeting ID number 85400324335 or by calling 9292056099. For additional information about remote participation, please contact Carly Antineellis, assistant town manager at
ATM at air period ma period US or 978-7728220 extension 100 prior to the meeting. All right, thanks everyone for joining us today. Uh we have the call to order on the agenda complete. Uh next item is
the review and approval of the meeting minutes from August 23rd, 2022. Uh were there any changes to the presented minutes? Look good to me. No, they look fine to me.
Okay. Do I have a motion for approval? So move seconded. Excellent. Thank you. Uh roll call the vote. Miss Antonellis I. Miss Tierney I. Mr. Aanti.
And Mr. Prerand I. And the chair says I. The minutes are approved. Uh number three on our agenda for today is town finances and budget status update. Mr. Chair, I'll just go first briefly
and then if if uh Fred or Barbara have anything to add on the update in terms of the budget status last time we discussed the budget uh calendar. Um if folks could take a look at that again and if there's any questions or
suggestions or so forth, let Carly and I know. Uh the plan is uh for the September 20th meeting of the select board is to present that draft to the select board uh to get their thoughts or any input and then as we traditionally do we're looking to get that schedule
ultimately approved by the select board at their meeting um on October 4th. So we're just in the beginning phases of the next budget cycle. But through you, Mr. Chair, if Mr. Ponte from his end has
any updates or mis tier any the only update I have is that um I should be u submitting the balance sheet by the beginning of next week maybe the middle of next week so we can get free cash certified before the uh October
meeting October town meeting that's about it yeah so for me uh the treasur's cash reconciliation is out there the statement of indebtedness this um both Fred and I updated and and looked at and then um the only other
thing I have is August collections went well and I am in the process of doing the next tax taking and happy to report that since we did the intent to takes and the demands we've brought in another almost $200,000. Um it's amazing how the
advertisements do work. So we're in good shape. Okay. And I'll put that in my monthly report. I'll put some um actual numbers in my monthly report if anybody's interested. Excellent. Thank you. Anything else on the town finances or
budget? No. Okay. Wonderful. Uh moving on to number four on the agenda. Review and discussion of proposed updates and revisions to the financial policies. I will pre-appize. I did not get the
chance to take another look at the policies though I had submitted some changes I think back late last year early this year um on the current versions that we do have. Um so with that I'll turn it over to whoever wants to take the lead. Sure. Robert. So
Mr. chairman um and members of the by board. I have a a brief um presentation related to the um related to the financial policies and really item number four and five on the agenda sort of go to together and looking at the
policies I sort of put this as a very rough presentation but thanks to Miss Anteneellis for shining it up some. I tried to um cap en capsulate all of the major um issues if you will so they're in one po one one point that we could
discuss and as number five I know that Barbara had brought up previously the idea of a a working group or so forth to to sort of really iron these out. So um Carly will also send this uh to everybody. It's more of just a an outline and through you Mr. sheriff just
take a few minutes to I'll go through it quickly and then so and Carly would you navigate for me please all right so this is just an overview and again I may have missed um something or there may be additional points folks
want to start so next so just an overview of the general updates and many of you have submitted this there's a lot of language changes and updates for example updating where it says board of selectman to select board or town administrator to town
manager updates in in the general sense I think we're in pretty good shape there. The second thing which we'll talk about later um as Barbara mentioned we have a specific investment policy that is subject to update and revision uh
every year. It's currently in the policy and it was suggested that it be removed with a reference to where it can be found and how how it's subject to annual review from the financial advisor. So, we'll come back uh to that later in the
in the slide. And then one of the things I pose here and throughout this I put questions for us to to ponder is are there any other format changes that we'd like to see in terms of font layout and so forth. So, something to to just think
about. Um, and that is not a criticism of the current document is is fine as as as far as I'm concerned, but if we're doing the update, now would be the time to to look at that next. So, one of the areas and on each of the
slides when she sent it, I referenced the page number. It's on in the policy and I and this comes from I should point out all of your comments I've sort of incorporated into this. So on page four, there's a section on the restrictions of the financial policies. And it currently
reads, "These policies will be binding once accepted by a majority vote of the board of selectmen in the event that the policies cannot or will not be adhered to. They can only be bypassed with a majority override vote by both the board of selectment and finance committee." And then I put down proposed. We we need
to rework that. Um, and I've been looking at that in the sense that the these are policies and so forth, but ultimately the issue that has come up from town council and so forth is the is
the issue of the the override and the binding piece. So, uh, I we'll come back to that. I think we need to to clean to clean that up. And I understand the intent. The intent is we want everybody to adhere to these policies and if in
the event that they can't be uh is there a mechanism to address that or a mechanism to address address changing that yeah Robert if I may to give some context around that when this was put in um it was chairman Maldun and myself who
put that piece together and to your point um the vision the fear we had was we were going through to put together these financial policies and once um these were adopted that we wanted them to have some semblance of teeth in our
approach in operations as we put our budgets together. So this at the time was the best that we came up with, but even at the time town council did tell us it was not 100%. So but we put it in
anyway just to you know I guess ask for forgiveness later above above everything else. So that that's the context of where we were trying to go with the original version of of this. Agreed. And thank you. And I know Scott, you and I have discussed it over the
years and it's a great um first attempt. So um again, we're going to move move on to get through this quickly, but we can come back to anything. Let's this is one area we want to to use Scott's comment in the most recent review is sort of
clear up or or refine, but the challenge is we do want to have to use Scott's term teeth in it as much as we can. Next. So then on page five of the documents, third paragraph, uh there's a section
about um the audit and the management letter. And the third paragraph on page five addresses a committee to review the management letter, summarize the information, and share with department heads. The finance committee will review the recommendations and findings with
the department heads and town officials in a public forum and implement changes if possible. And again, there's not we're looking to sort of review and update. There's not a criticism of this, but since this current policy has been
in place, we have not followed it exactly. I will say in full disclosure that I know in my time the management letter has been reviewed and discussed at times both at the select board and the fincom but this idea of a committee
and so forth didn't quite happen. What the bottom is a proposed um suggestion that the executive buy board shall review the town's management letter and transmit a summary to the select board finance committee and town manager
regarding the recommendations and findings. This summary shall be reviewed by the select board and finance committee in an open public meeting with recommendations to be made to the town manager and finance manager for implementation.
So the major changes is giving the audit and management letter assignment really to the buy board first to review it. Come up with any summary that is related at this level. Transmit that to the select board, the finance committee and
the town manager and then the select board and finance committee in an open meeting um review and discuss uh that. So that's just a proposal of sort of refining that. And again, we don't have to go this way. I just trying to put
some suggestions. May I? Um, so I I just want to say I think that's good because the majority of us who would read the finance um the management letter are on the byboard already. So you know, being Fred, Carly,
you, me, Scott as a selectman. So I think that makes sense instead of having another committee. Agreed with that 100%. Yeah. So to Barbara's point that's the essence. It basically create it takes away creating another subcommittee puts
it with the by board requires the byboard to summarize it formally transmit it to both the select board and the finance committee and also puts the guidance that those two public bodies would meet and review. Next.
So, the financial forecasting on page six. And I will say when I first came to air 12 years ago, and and Scott's been at this and air longer than I have, the the tri board at the time, there was a lot of discussion um about a financial
forecasting and financial model uh for the town of Air, which I think is definitely a good idea. It's a best practice as all of you financial folks know. Um we have yet to get that over the years and again not a criticism
fully refined and in place. Um and I know we have a lot of new financial folks. So as I put on the bottom though the financial forecasting is a best practice and there's no issue with this recommendation or this section the reality is that over the last 12 years
it has yet to be effectively done. And I know a lot of work went into that. So I think this is something more of not necessarily the policy to be thinking about but I think we need to think about the forecasting and the model in the future. And under the pencil image I put what do we do about this section? Do we
just keep it for now? Do we delete it or do we revise it? Um and maybe that's for a larger discussion. If it's for a larger discussion perhaps we just keep it for now until we develop a plan.
Next employee compensation. So I think through the last revision of the policies we developed I think there was no process before the last round in the in the policies and I think that the
the policy the procedure in the policy is good. Um, one of the points that Scott and some others brought up is do we want to add a cap to that cola recommendation? Now,
over the last in my 12 years here and the cost of living has recommendation has been 2% with the exception of 2011 when there was no uh cola. It was zero because it was the pre-regionalization.
Do we want some type of language or concept of a cap? Because what I'm getting at is the metrics we use to make the recommendation are good. The issue is if we go by those metrics, what we're seeing, social security is looking at a 6% or a significant increase in the year
ahead and so forth. These metrics may recommend something that is not sustainable. So one of there's two I think key points we need to flesh out here. One is do we add some kind of cap or parameter to the recommendation? If
so, what? And then the first bullet, I got ahead of myself. In the current policy, it talks about an economic downturn will trigger a review of this policy. Do we want to further sort of quantify or qualify what that would be?
Um, so two points to think uh think about uh there. And I just put to add to the policy, the town manager make an annual cola recommendation to the select board and finance committee for their consideration. The recommendation is
subject to select board approval to put before town meeting. The finance committee shall put forth its position on said recommendation at town meeting. So just clarifying the process a little bit. Next,
so the enterprise section on page 10, these are the enterprise and other similar funds and apologize for the the formatting. Uh, since the re last revision of this, we put in place a rate review committee. And so what I'm
suggesting we add for the enterprise funds um is the rate review committee shall meet quarterly to review the rates for the water, sewer, and solid waste enterprise funds. The rate review committee shall make annual recommendations on the solid waste
enterprise rates to the select board each October at an open public meeting. The rate review committee shall make annual recommendations on the water and sewer rates to the select board each March at an open public meeting. So basically adding what we're doing now.
And then the second paragraph is the ambulance enterprise fund shall be reviewed bianually by the fire chief, finance manager and town manager with any recommendations being made in an open public meeting uh of the select board.
Next on the stabilization and capital stabilization which is on page 10 and 11. I think we need to and we've discussed this informally some. I think we need to review and discuss the current percentages uh in the policy uh
as we've ramped up stabilization capital stabilization. I think we need to look at those percentages. I know many of you flagged that in your comments in the review. Um, we need to revise the current example to reflect more re So
there's an example in there uh for the public as to how the percentages work has just tweaked that to update it. And I think we should add in there, I was surprised we didn't have that uh in there that the authorization to expend stabilization and capital stabilization
funds requires a twothirds majority vote of town meeting. Next, the OPE uh on pages 11 and 12. Uh I I think since the last review didn't make the last review, we should add the
town's OPED board of trustees, which consists of the finance manager lists who's on it and a representative from the select board shall meet quarterly to review the town's OPED funds and make any recommendations related to OPED to the select board and finance committee for consideration.
And I pose, do we want to add a finance committee representative? So the this is specific. There's five members with the town manager as an exhibition and the five members is set by state not on the local level. It's the finance manager,
the treasurer, tax collector, the town clerk, benefits and payroll and a representative from the select board. There's no formal finance committee representative. If we felt that should be the case, we'd
need to perhaps maybe remove the town clerk position. I was thinking that because out of all of the five positions, sort of the least of the financial positions um and replace that with a fincom rep and that would also take a vote of the select board, but
something to think about. Next on the cannabis policy, I just wanted to put this here as a placeholder. Do we want a dedicated cannabis policy and if so, what? And we can discuss in more in detail.
Next, capital planning. This is on pages 12 through 15. I suggest we add the town manager and finance manager, our voting members of the committee. The select board changed that several years ago to
add those to his voting. I think we need to review the charge of the committee. Uh do we need to change the various capital thresholds? So right now we're defining capital as $10,000 or more for one-time expenditure. Uh do we change
that? That's just a question. Right now it's 350,000 or more requires a capital or a debt exclusion. uh does that need to be looked at? 40,000 and under the practice has been to recommend funding from capital stabilization.
That's been a sort of a practice over the last almost seven years of the committee. Does that need but it's not in the policy per se. Um, the other thing I flagged that we need to review and maybe change is right now in the policy it says the capital planning
committee will prepare a multi-year report to be given at town meeting. Um, we have not done that to date. Um, again I think we need to look at that and and and address that. And then on the bottom
uh the current section 2.1 states an amount equal to 8% of the proposed operating budget shall go into a capital expense fund. Again I think we need to look at that at the current balance and see you know does that percentage or
this piece of the policy need to be uh tweaked. Next, again continuing on capital planning, uh, do we add language that further defines the five-year capital plan? So, our current policy and we what we have
done is we have all departments prepare and maintain a five-year capital plan. Uh, do we want to further define that or add any required elements to that plan in the policy? Again, this is a question for consideration. The other one is do
we add lang language do we add language expanding the requirements of the capital planning committee to include to meet periodically to review the town's capital plan long-term planning and debt schedule. So I know that selectman Hood who's the current chair has raised
recently in the past the committee has largely met from December to February on the current capital recommendations and I know that Scott has mentioned and I I t I do agree that we need to perhaps expand that the capital planning
committee also meet uh throughout the year periodically to review the capital plan the long-term planning and the debt schedule. again uh something we should consider. And then on the second bullet, do we add language regarding vehicle
acquisition? For example, the town does have a green community's energy efficiency fuel policy, but it's not spelt out in the current financial policies. And as those of you who have been involved in capital planning, as of late, there's a lot of vehicles and
vehicle needs. and do we further define the vehicle acquisition uh piece within these policies. Next, the investment policy which currently is spelled out in great detail in the in
the financial document. It's pages 15 through 24. And I think at both in her comments and at a previous meeting, the town treasurer tax collector had reported that per the town's financial advice, the current investment policy and the financial policy should be
removed because it changes. Um, so what I'm proposed is we add language that says the town of air has a detailed investment policy which is under the care and custodianship of the town treasurer tax collector. The town's investment policy shall be reviewed
annually by the town treasurer, tax collector, finance manager, and town manager in consultation with the town's financial advisers who shall publicly report annually to the select board and finance committee and any required
updates or recommended changes to the policy. The town's investment policy can be found at and then wherever we decide to put it. Next on the water and sewer shut off policy, uh the DPW has reviewed it and they made
some minor changes uh to the shut off policy. This is on page 24. I couldn't fit it on this slide correctly those changes. So I'll send it after this meeting to everybody. And in discussing uh with Barbara, we want to connect with
DPW uh regarding the issue of the shut off policy in a little more detail because one of the issues is is the treasurer tax collector's office sort of by de facto is becoming the the shut off uh entity and I think we need to make
some improvement there where the shut off piece is really uh coming from the DPW. Um so more on that next. And then on the procurement policies in the current financial uh policies are
are are good. Uh it just needs to be few minor things need to be updated. Uh as the town's procurement officer officers Carly and I will update that um and get that into the document. But there was no
policy real changes there. It's just some cleanup. Next, a proposed UDAG policy. So, we've been talking about um having a policy for the UDAG, and this is just a proposed draft. There's nothing currently in the
policies about UDAG. Uh in a nutshell, a thought is the town's UDAG funds are under the direct authority of the select board. Though these funds are currently unrestricted, the select board shall only consider authorization of UDAG funds upon recommendation of the town
manager and finance manager for use toward one-time economic development or infrastructure needs of the town which are extraordinary or unforeseen outside of the normal budget processes. Additionally, the select board shall
authorize the use of UDAG funds by a simple majority vote and subject to said funds being replenished with free cash by a future town meeting or perhaps replenished by a future town meeting without identifying free cash. So, just
sort of I took a a first attempt at that UDAG uh policy. I think that the three things I've heard from the select board is one uh they really want it to go towards the original intent even though it's unrestricted uh to be economic development or
infrastructure and two that there's a mechanism that we're replenishing uh those funds uh as we move forward. Next. So a proposed uh policy for reserve fund for future payments of acred liabilities
for compens should say compensated balances in a nutshell I took uh with Kevin Johnson sort of we put this together. If you recall um the town meeting in 2019 and that's what the first bullet says established
this um account where we can uh for funding of uh compensated absences owed to employees specifically upon their termination of employment uh with the town. The second bullet says it's intended for use when an employee
terminates employment with the town for retirement or other reasons, when the termination is unforeseen prior to the annual budget process, and when the department budget is not able to support payment of compensated balances. The third bullet uh and this is what the
policy has been since the fund was established. Use of this reserve fund is authorized with a written recommendation from the town finance manager with the approval of the town manager. And then the final bullet, it is recommended that that this reserve fund maintain a
balance of at least $50,000. Contributions to this reserve fund will be considered during the annual budget process by written request from the town finance manager and subject to approval by town meeting. So, at the time when Miss Gabri and I looked at it after it
was formed, we estimated that on average, and we're not in average times unfortunately, but usually there's about one maybe one or two say retirements or separations a year. Um, and roughly that's where the $50,000
recommendation came from. So, again, something you can review in more detail and open to any uh suggestions. This is obviously a new item that isn't in the current policies. Next, other potential policy updates and this
is the last slide and I appreciate everybody's uh time is do we want a section about the financial authority and role of town meeting um in the in the policy. So um do we want something
specific uh that talks about uh town meeting its its financial authority its role something to think about? Do we want a section about the budget calendar and process? Uh both the budget calendar and the budget process that we're using
now which I think are a a great uh leap forward um has happened since the last update of these policies. So they're not mentioned um in the policy. And then lastly, and I know Fred and some others have brought this up at some of our
meetings, do we want a section about the reserve fund, I should say, transfer policy. We do have a reserve fund transfer policy. I know that there have been some concerns um that about further defining and further perhaps restricting
for lack of a better word that and then lastly other there's some other things for this. So to conclude, Mr. Chair, I wanted to try to at least get this on the paper as they say. So Carly's going to send this to everybody. I know there's a lot here. There's perhaps more
questions than answers, but that way folks can review it. And when I said this ties into number five, I think that perhaps we should put together a working group uh that has some dedicated, you know, time to further refine and and and
drive these out um in preparation for completion. So I know that was a lot. I appreciate the time. Thank you. Thank you, Robert. So for a working group we would have to
have a number that it's not quorum for the byboard. It would also have to stay away from any final decision. So it' be a working group to just take the feedback. Are you going to distribute the presentation
that you just did so that everyone can provide their feedback along in that in writing? Okay. I think a working group is a fantastic idea. Uh definitely would help collect what the questions you posed with the changes that everyone else has
proposed and and put that into a final draft for review. Okay. Um if I may, so we'll send that to everybody now, review it. We're open to any suggestions. Like I said, there's more just to further frame our thoughts.
Also perhaps if there's something that's an individual is particularly interested or passionate about or has experience with that we can also accomplish more by dividing up if you want to take on some of the things but maybe let's start with
that review and then to your point Mr. chair, we could put together a working group. We just have to make sure there isn't a quorum and that it it has no decision-making authority. It's just to sort of get this work done to be brought back here.
Okay. So I guess the the question on the working group makeup would it be better um to have so sorry how many do we have on the buy board for what's our quorum number is it five so the quorum number is based
actually on seven so there's five of us now um and then there are two the chair and vice chair of the bincom um so it'd be four Have they been technically
have they participated yet? Informally. Uh Kurt did informally. I'm one of them. Do we know who the vice chair is? No. Because they haven't met, right? Which is on this agenda for I have a thought on that that's later on the agenda. So,
um, sorry, go ahead. Oh, just I'm sorry. I would argue the following and I I know they're so everybody of of the five, all of them are employees except you, Mr. hood, meaning
you're an elected official. So, if we were to meet quote in the town manager's office under those oasises, it would not activate an open meeting law uh violation. Correct.
Yeah, that was my thought also because I think trying to trying to schedule where you know for myself I mean you know and other individuals from the finance committee were working full-time it it would probably end up pushing us back a little
further than um if the employees full-time employees on the on the buy board were to take the initial pass. Right. And again, I just want to stress again that we it's just to get this this work, if you will, done, then come back
to this group, which would make the recommendations. And as we all know, the policies actually have to be approved by the select board and the finance committee. So, what I'm getting at is there's just a working group. There's no has no authority. Yep.
I think that's our best approach. feedback from anyone else, Harley? No, sorry. My hand was just like that, but I did just email the presentation, just FYI, to everyone here. Thank you.
So why don't we folks will get this riveting presentation from me take a couple days to review it thoughts and then I'll reach back out to folks to talk about how we want to you know meet or you know set up the next stage for the working group.
Okay, that's good. With the goal of having working group, excuse me, meet hopefully before the October byboard meeting. So then at the October byboard meeting, I think we'd have a pretty good draft. All right, sounds like a plan.
Thank you, Robert. Thank you. Thank you, everybody. All right. Uh before we move on from not on items four and five, anything else on the policies before we move on? No. All right. Thank you. Number six,
discussion review of proposed FY2024 budget process and schedule. I sort of that's a chair. I sort of touched upon touched upon it in the beginning. I think everybody has the draft schedule. If you could take a look
at that, if you have any suggestions, edits, or so forth, get that to Carly and I. Uh, as I mentioned, this is going to be on the agenda under my report on September 20th for the select board just for their discussion in questions. And
again, we're looking for to get this in place and approval for October 4th. Okay. Thank you. Item number seven, new business proposed joint uh meeting with Fencom for
overview of the town finances, town financial policies and the budget process. So, Mr. Chair, I I sort of put this took the liberty to put this on under new business. First, I'd like to um thank the town moderator who has worked very
diligently uh since his election to get the finance committee uh reconstituted uh if you will. And and it's exciting that we have uh the committee uh members in place. And it's sort of a we're in a unique time in the sense that the
committee is relatively all um brand new and is sort of reconstituted. And I know we've talked about this that perhaps it would be a nice idea to have a joint meeting, a future joint meeting uh with the by board and the FINCOM uh to
introduce everybody and then uh just give an overview of the town's finances, the town financial policies, and the budget process. Um and and sort of kick that off. And I would envision the by board, the moderator and the members. I
mean, I think ideally it would if we did it in person, which is always nice for a first meeting, it would probably have to be um in the evening that worked with folks work schedules. Um or I mean it could also be something considered for
Zoom. But I just think uh where this is a unique time, I think it would be great and we'll all be working together to to get off right on the right foot. There's a lot of institutional knowledge here on the buy board. We have some great new energy on the fincom and put that
together. So, how many um how many members of the finance committee do we have? I know we we lost um Lou. So, are we at four right now? We have Let's see. I think she's pulling
it up. Yeah. Sorry. Mr. Chair, if I may. Yes, Mr. Tison. I'm speaking as a moderator, not as a member of the finance committee. We currently have four members and I'm still looking for more. Okay. Excellent. Thank you, Mr. Chair.
Carly, do you have their names? I do. It's uh Jin Hong, Sebastian Cordova, Andrew Cely, and Kurt Fchowski. Have they scheduled their first meeting yet? No. No. Okay.
All right. We'll wait for them to I guess meet and get organized and then we can schedule a joint meeting. Yeah, Mr. Chair, what I was going to maybe suggest is um and I have always been especially since the change by town
meeting. I am fully sensitive to the fact that the finance committee is a committee of town meeting and is independent. But I was thinking perhaps the moderator myself, Mr. Aante, I could reach out maybe if they put their first
meeting together at least um appear before that first meeting just as an introduction and then um present the idea of this you know future joint meeting. That sounds like a good idea.
And then if folks from this group would be thinking about and and to avoid sort of information overload. Um but if each of you have very unique um in professional experiences in various aspects of the town's finances and
budget process be thinking about you know your brief brief you know presentation based on your experience for their benefit. Okay. Yeah, I think whatever we can give them to get started
information-wise is definitely helpful. I remember when I first started, I came on at the time there were four new members. And the senior person, Mr. Maldun, had oh, I think I made less than a year on the committee and we were we were figuring things out as we went. So,
uh, if we can prefill that information just on, you know, where to find information and what their, you know, let them decide what their scope and what their process is going to be, that'll be definitely beneficial. Okay. All right. Thank you, Robert. Uh,
next item on the agenda is scheduling of our next meeting. So, we've generally been doing the second Tuesdays. Yep. So, it would be um Tuesday, October 11th at two.
That works for me if it works for everyone else. Yep. For me, thank you. Um, and actually I forgot to do this on, but I'll open up to any other questions or comments uh before we adjourn. No, good. Okay,
I'll make I'll take a motion to adjurnn then. So move. Second. Right. Roll call vote. Miss Antonellis, I. Mr. Aante, I. Miss Tierney, I. Mr.
comprehend I and chair says I we are adjourned. Thanks very much for all the hard work that went into today's um presentation discussion and thanks for your