Call the executive by board to order for Tuesday, October 25th, 2022. Due to the ongoing CO 19 pandemic, in accordance with chapter 22, the acts of 2022 suspending certain provisions of the open meeting law, public bodies
otherwise governed by the open meeting laws are temporary 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 [Music] or by calling 929-2056099. For additional information about remote
participation, please contact Carly Antelis, assistant town manager at atm period ma periodus or 9787728220 extension 100 prior to the meeting. All right. Excellent. Uh so first order
of business for today we have is review and approval of the previous meeting minutes from September 13, 2022. I had no issues. No issues. Me that I'll make a motion to approve the minutes from October
no September 13th 2020. Second we have motion and second roll call the vote. Miss Anthony Ellis I Miss Tierney I Mr. Preand I and chair
says I All right. Excellent. Minutes are approved. Item three on the agenda is town finances and budget status update. Um Mr. Chair, I'll I'll go first. Um, in
terms of the the budget uh update, uh, as we're beginning to enter into the season, as they say, the the capital directive has gone out. All departments have until Friday, October 28th to return the revised and updated uh,
capital plans. I have been in communication uh, with some of the departments uh, regarding some of the potential larger items and so forth. uh but uh we will be in good shape uh to start the capital process uh after
October uh 28th on that front. Also, the rate review committee did meet um this month specifically focused on the solid waste transfer station rates. Uh we they have another meeting uh for November
1st. Um at which time we're anticipating uh basically two recommendations. One will be a very small um increase involving um the stickers and in reviewing in preparation for that
meeting in reviewing the DPW director and the committee the lot of the bulk items and the schedule and price for the disposal of the bulk items is way out of date and not competitive. So the main
focus on November 1st, there was some further work to be done by the DPW director and others to come together with a again a modest but realistic um increase on some of these bulk items. Uh
if all goes as planned at November 1st, uh the committee at the meeting articulated they'd like to um come to the select board uh with their recommendations for the November 15th um meeting. So the rate review committee is
underway focus on solid waste. They will then be switching rapidly after um the solid waste piece to the water and sewer rates. And one of the topics they'll also be discussing on November 1st is updating the rate model as it pertains
to water and sewer specifically the flows and flow rates are uh significantly uh need to be updated for lack of a better term and there's been some talk um about potentially a new a different
consultant uh to work on that effort. So the rate process is underway. Lastly, uh as the budget calendar has been approved by the select board, uh per that um we'll be looking to issue um the budget
directive uh for the overall budget uh for December 1st. I anticipate to have a couple of um initial discussions on the budget uh with the select board prior to that to get some uh thoughts and input.
And I also hope to u meet with the finance committee uh to do the same. Uh since the byboard last met uh the last meeting of the pincom frustratingly for I think everybody just unfortunately didn't have a quorum. So we're in the process of of of regrouping on that
front. So that's the budget status update and through you Mr. Chair. don't know on the financial end if if Barbara you have any um updates on collections or anything um from the financial side. Um so as far as collections, we're
gearing up uh November 1st. Due payments are starting to flow in. So we're busy. I just completed the tax taking on the 21st. So we're doing all the follow-up paperwork and recording. Um and that went well. And um as far as like our
fiscal 22 audit goes, I've been working with Pam, our auditor. I believe I have pretty much everything that she needs from me uh for that audit and um my reconciliations are up to date and current. So we're in good shape.
Great. And just through the chair, so Barbara, as far as collections and everything remains on target. Yes. Excellent. Yes. through the chair. Thank you. Anything else on finances or budget? Okay.
Uh item four on the agenda for today is review of financial policies, proposed revisions, updates, and next steps to completion. So, Mr. share uh through you and and I did send out to everybody um and I
appreciate everybody's input. I did send out what we'll call sort of the final working draft. And one of the biggest challenges uh I found was in using the track changes with everybody's thing. It started to look like um you know an
electric circuit board. So I did perhaps oversimplify it with a colorcoded system. And in a minute I asked Carly to prepare the shared screen. What I sent is in yellow were any highlighted in yellow are any changes from the existing
the current policies. Um and those changes were pretty much for lack of better word there pretty much sort of consensus. So we've discussed those. the light blue uh which we'll get to as I mentioned in the transmission was some
areas where we need to make some uh decisions. Um the third thing uh Barber reminded me just recently since then and we can discuss I' maybe put this in the light blue category is do we want to
have a a free cash policy or free cash directive the the current policies define free cash and so forth but do we want and that light blue question do we want for this version some type of policy on that and the other one that
has come up and will come up again in the budget cycle is the tax levy and specifics the um uh overlay and excess levy capacity. Again, I think the current policies do a good job um Mr. Chairman in defining those and what they
are. The question is, you know, do we want to have any, you know, policy direction. So, those were two things um brought Barbara brought to my attention since I sent out that email. But why don't we, what I was going to suggest, Mr. as we go through briefly at least
the light blue um areas. I think my final piece and I'll do this quickly is obviously there's a reason why these are subject to review and update every two years. I think one is because things change but also
you we could spend forever it's never ending in the sense it's always something as they say I think at some point uh we need to decide for this version um you know this has been a a robust update this is the version we're going to send to departments and so
forth for their review and move forward with that so um Charlie if we would go to and I just hang on One second. If we go to page, we'll start with page four. So obviously we'll have to update the table of
contents and the revision thing. So again the as I mentioned on the yellow front as you can see everything from on uh everything from changing board of selectment to town manager. Um the maintenance of the financial policies as
we discussed we changed that. It used to be that there was going to be a a committee. Um the executive by board seemed illogical to change that to the executive by board and that the review
of the financial policies uh are subject to review by the finance committee and with approval by the select board. So as we move forward for the next version in in in the future as it stands the buy board would take the lead on preparing
the review and the the the draft of course is needs to be reviewed ultimately by the thincom and approved by the select board. um on the restrictions of the financial policies. That was another area um for looking for
cleanup. Uh sort of these policies will be in effect upon acceptance by a majority vote of the select board as they're the chief policy body. Amendments to the financial policies must be reviewed by the finance
committee with approval by majority vote by the select board. Again, we could also put amendments may need to originate with the by board. Um, but again, sort of cleaning that up. Um,
there and we'll we'll go through and then we'll come we'll we'll come back and again here um this had to do this is on page five with the the audit um letter uh the management letter. So the existing policies if you recall talk
about again another a formation of a committee that would review and make recommendations and so forth. We sort of have discussed through this process cleaning that cleaning that up a little bit to be again the by board will review the management letter from the audit
firm which by the way is something I'll Mr. Chair propose for our next meeting as we have it. Um the management letter the by board would review it. Um we could put together from the by board a summary, distribute that to the
department heads and then the finance committee will review the recommendations and findings with the town manager relevant department heads and town officials in a public form and implement changes if necessary or possible. So the takeaway we get the
letter every year I would transmit it here to the by board. we would review it in detail uh put together appropriate synopsis. Some years it's very lean which is great. Sometimes there are some um uh points of discussion and policy.
We put together a summary and then you know go to the finance committee and I suppose also we could the select board if they wanted those are public meetings and then talk about next steps there. So the big change was defining sort of the the buy board and the process on that.
At the bottom of page five onto page six, this is our first sort of light blue area is the financial forecasting um component. And let me just say my opinion from my perspective when I first started here a lot of work and effort
was underway to develop the financial forecasting and the five-year model. Uh this is not a criticism of anyone um since I first came here. This has in my opinion yet to fully materialize and get
off the ground. Others may disagree. That's just my observation. I have from my my opinion is I have no problem with leaving it. The question and why I put it in blue is are we going
to do it? And that's meant to be a rhetorical question to some extent. I think this is an area where we need to decide um what do we want to do in terms of financial forecasting and in terms of the financial um model. I believe as a
town there's some room for improvement here. I know that we do do revenue projections every year. I know that we you know build upon the previous we do a lot of different work but I think the intent of the policies uh from their
inception and the intent was to have a formal financial forecasting and model moving forward. Yeah, Robert, if I can just interrupt for a moment. Um the 5-year forecast, in my opinion, is vital to our ability to
really look years out and do a longer term planning. So, you know, I think when I first started on the finance committee, it was frustrating that everything was siloed one year at a
time. Wasn't really much of a look ahead. So there are ways that we can fiveyear forecast that is actually somewhat viable. The biggest variable in that would be capital. But
if we can push to get capital a little more realistic on the five-year view, we can marry those two together and and hopefully put something together that actually um is at least useful. I mean, the thing about forecasting is every year you go away from where you're at,
it's less and less accurate, but at least it gives you a sense of where things are going. I I agree. That's why I the the just to clear the reason I put it in light blue was more of I think I think we should
leave it at this point. I think I flagged it in light blue that I think we you know as the by board and so forth need to have a a further discussion as to uh further formalizing and developing this. I I agree with everything you you
said, Scott, and have I think our challenge is just to get it to a point of further refined and more of a reality. But I don't think we should we should pull it. I also don't think that we should change it. I think what we
need to do is develop a goal and a benchmark in the year ahead to get this going. Yeah, I think we should keep it in. Okay. All right. Then I added a If you move up just a little bit, Carly, and thank you, Carly. Um, here I just added
this is sort of a new section. We have developed uh the town budget calendar, which I think uh since it was brought up by selectman Hood a few cycles ago, has been a good step in that in the direction and has been helpful to the
town. We've received a lot of positive feedback. So this section here I guess you could say is new. It just it defines that each year beginning in July the by board shall develop a proposed budget calendar for the upcoming fiscal year subject to review. I should put probably
subject to review and input by the finance committee and approval by the select board. The town budget calendar shall contain all major dates, deadlines and events related to the town budget process. The select board shall finalize and approve the budget calendar no later
than their first meeting in October. Once approved by the select board, any changes to the budget calendar must be presented to the select board for review and approval. The budget calendar shall be distributed to all town departments by the town manager and is available on
the town's website or upon request from the select board office. So basically, this sort of codifies what the current practice has been. Um, again, this would be a new addition to the the policy here.
All right, Carly, we'll move on to um that was just clarification there. Keep keep going. Okay. So then here on this section if you look at the uh the the
previous version of the policies I talked about in general the looking at the rates and enterprise funds and as we've been discussing this here just clarifies since the last version really the role of the rate review committee. So, the town's rate review committee
will review the rates and fees of the solid waste enterprise, water enterprise, and sewer enterprise on an annual basis and make formal recommendations to the select board in a public forum. And that's in concert with statute. And then the town's ambulance
enterprise fund will be reviewed annually by the fire chief, town accountant, finance manager, and town manager with any formal recommendations made to the select board in a public forum. So again, this is just sort of cottifying the current practice and
clarifying sort of those rate processes. Okay, as we go down, all right, there's a blue area here. We've talked about is the cannabis tax, local tax. So we have had a very successful, I think, policy
with the use of the local meals tax in funding OPE. We know that the cannabis money is going into the general fund. Um the question is I and I throw up a question marks here too is we've talked about this sum
but we haven't um really nailed down do we want a specific a policy with respect to the use of those funds and I'll just add this as everybody knows but for everyone's benefit this policy if we come up with something would all most
likely involve the appropriation authority of town meeting. So again, these are general fund fund fund monies um subject to appropriation by town meeting. But what are folks thoughts on the cannabis tax?
I think it's worth um putting something together. Uh how much annually is it? So the last couple quarters it's kind of leveled out to be around the mid80s. U the so we're not seeing quite as much the last couple few quarters as we were
that first couple of years now that surrounding towns have um which is why I think it's really important to dedicate it versus having it incorporated into our regular budget. I can look that up though if you like.
So, so through the chair. Um, so Barbara, I know that there was, you know, a spike in the beginning and then there was some interruption with the pandemic. So, you're saying that the last couple of payments you're looking at, it's, let's just say for the sake of
discussion, 80,000. Yeah, it was around the mid 80s. I can look that up real quick uh while I'm here. But I I think I remember bringing it I thought it was to you a while back and I'm just that it was kind of
leveling out and um but if you'll bear with me if you want to keep talking I'll I'll look that up. Yeah, sure. We Yeah, we can circle back on that. Okay. Um actually I have it. So, the last quarter of 22 was 81,254
and then the first quarter of 23, we haven't received the second quarter yet, $74,80. Um, so that's down from the first couple of quarters of 22 it was like 120, then it went to 107, 99,
and 81, and then 74, which I know we kind of talked about. it was probably not going to continue um on the same path as other towns around us got their licenses. So, we are seeing that. Are other communities around us or that
have cannabis um dispensaries are they using anything to specify where it goes that anyone's aware of? I haven't seen I think he's had it more. Do you know, Carly? Um, I've had discussions. I've been in a class the past couple weeks.
Um, and um, in talking just with other town managers, it it seems like it's no one wants to commit it to a certain spot because it's been kind of volatile, meaning up and down, up and down. So, most people are just letting it go into
their free cash, honestly. And from my perspective, a couple places because this is sort of still new new territory, but I know some communities um have looked to put it towards and
we're much more ahead of them, but put it towards say capital stabilization. There's been a few towns that have put this towards capital stabilization. Um a lot of them it's still sort of general general fund
situation. Um, yeah, I mean, I'm thinking that as if we at least uh define it in our policies for this time and then as things we get more time under our belt, if if you're not ready to make a decision yet, but
maybe at least put in a definition in here like we did for meals and tax, sales tax, that it's in general fund money and etc. I think that's I mean yeah I think that's a good point Barbara I mean we should that's easy enough to do at least
um to define what it is and then the question is hence the light blue what do we want it to go towards um could you say something you know like general fund revenue to be you know
further appropriated to either capital stabilization our you know regular stabilization oped. So we have so for the meals tax we have that goes towards oped but it's not 100%
funding the oped amount. Um so what if we fully funded the oped and then said any additional towards Yeah that's undesated. That's kind of my thought. If we want to fully fund the OPED, the other item is
it's about 320,000 at 80 80,000 a quarter, 320 for the year probably, you know, we could look to do I think like that we're looking at a future liability that we can quantify to a
degree is to use that same premise like you know let's put it towards whether it's OP or um even the um the funding that we do that we did for the retirement obligation, you know, something something along those lines.
Um, I know we're probably not going to do the the retirement one again, but I think the oped might be a good one. Okay. Um and just through you um Scott last year just for everybody's
information sales and meals tax was um 154 for fiscal 22. The first quarter for fiscal 23 was 46. So we're still staying right in that ballpark. Thank you. Okay.
Yeah. So maybe um given where we're at um getting a finance committee up and running to Barbara's point, let's define the cannabis tax um and then maybe put a placeholder in. Then we can have one followup discussion with
this group that includes the finance committee uh to get their feedback to codify what we want to do with it. Scott, your audio is cutting in and out pretty good. I don't know if it's only me hearing that, but I'm hearing it too.
I thought it was me. Sorry. Working from home today that a challenge. I heard you, Scott. I got the assignment. So, what we're going to do is we're going to, as Barbara said, we're going to define what the cannabis tax is. That's easy enough to do and I think that's important for the purpose of the
policies. And then we'll have sort of a placeholder and I this will be reflected in the minutes too of the various discussions that folks have have come up with and if you think of something let let me know as well.
Keep going or Yep. So then we'll be moving along. Um yeah, keep going. That was Oh um yep. Underneath the cannabis tax. So there was the issue of tiffs and the special tax agreements and as we
discussed the the the current policy has an old mechanism for this. So what we have been doing is so when a tax increment financing tiff agreement a special tax assessment agreement is presented to the town I should say for
consideration the said tiff or STA shall be reviewed by a committee consisting of the town manager assessing administrator director of economic development finance manager and a member of the finance committee. The committee shall have the authority to negotiate the terms of the
the TIFF or STA subject to review and approval of the TIFF or STA by the select board. Additionally, all TIFF and STA agreements must be approved by town meeting. So, this sort of reflects what
the practice has been since 2018. Um on that um I don't know if there's any questions on that. Um I don't have anything. Okay. All right.
I don't have any questions. Moving along. So then we are um so on employee uh compensation um and I think this was a great step from the last um review um
a couple of things I uh flagged um on here. Well, the main one is I clarified because it's been the practice in the second paragraph um that the cola recommendation shall also apply to all elected officials
receiving a stipen as well as the call firefighters. That's been the practice um even before uh 2018, but it that wasn't in the policy um the last time. The cola recommendation is subject to
review and approval by the select board for inclusion in the fiscal year omnibus budget to be re reviewed and approved by town meeting. And one of the things that Scott had brought up in his initial comments and that's what I flagged here in blue uh is the cola recommendation
shall not exceed the amount of and I put question marks. So what the way the policy has been working when we use these indices below and so forth in the last 12 years with the exception of FY12
the cola recommendation has been 2% in FY12 it was 0% as we are moving into regionalization it's been 2%. The the issue is if if I was a betting man using these indices
below as we're hearing for example social security index for example there's going to be a record you know cola adjustment of about 8% there. Um our union policy has generally been 2%. Uh what Scott is raising and I've been
trying to think about as well is do we put some kind of parameter or metric or control on the cola um recommendation and I I think it's a fair point because we try to be objective using our goal is
to be objective using these indices and I did check before Kevin left um these are still the ma major ones that are news. The concern is what if you go by all of that and you
have a town manager not not necessar not me but come forth to the board and make a recommendation that the FY24 cola should be 6% you know so what are folks thoughts on
that I mean because the other thing with the coler and and Scott knows this I think everybody on this call knows this because we've discussed This is one of the other guiding principles has to be affordability and sustainability as well. And I mean I will in my from my
vantage point position up until now and we have yet to do this process the 2% has been um fair and sustainable. Um the question is and and those of you who are involved, you know, we do battle
almost every year with the unions that come in anywhere from 3% to 21%. Um any thoughts what we should do on on that? Just a quick thought. Oh, go ahead,
Carl. You sure? Um, so what I liked what Robert just said about instead of maybe putting a percentage, I liked that Robert used the words fair and sustainable and I don't see those in the policy yet. So depending on what that is, it could vary, but um I liked that
that terminology. So Barb through the chair. So what you're saying is put in the policy of some language to the the effect of you know fair and sustainable something. That's a It's a good point, Harley. And I was just going to say too,
as far as, you know, I know 2% certainly has been consistent in my eight and a half years both with union and non-union and it is great and it is appreciated, but I think sometimes it ends us ends up costing us more because the union knows
we're going to really try to settle at 2%. And then they're looking for extras elsewhere, I'll call it. So, I mean, some years I think it would be cheaper if we were to give a group a two and a half or a 3%. Um, and that would be it.
But it just I just feel like there's such a um focus on the 2% that we sometimes we could do better even maybe offering more because then you don't have to offer as much elsewhere. It's just a thought.
Yeah. No, it's a good that's definitely a good point. Uh my reason for putting the comment was really um when you tie everything together when we look at union and non-union is you know if we do our contract union
contracts we do the 2% you know people the taxpayers understand or most of them understand um you know it's a 2% cola it's also step increases on the grid there's also longevity so that you
there. It does question the sustainability over the long run. And and Carly, you do make a good point that yes, we do end up um paying in other areas. My biggest concern um is the situation we were in going into this
last budget cycle is we have all of our union contracts at 2%. the we use the COLA formula and it comes back say a 7% increase because inflation and then all of a sudden we have to reopen all of those contracts and we have to give 7% across the board and trying to claw that
back down from a 7% is going to be incredibly difficult um because we're going to end up having to give exponentially more to get that claw back down. Um, so I think that the fair and
um sustainable is definitely good verbiage to put in. I would also re propose that we put in something that says inconsistency with the union contracts. Okay? and and that way, you know, at
least it's it's uh it's documented that we need to, you know, that they're intertwined, so to speak. Okay, both good points. Um,
yeah, the issue, and if I had all of the answers, maybe I would write the book on it, and I talked to my colleagues on this. The issue of municipal compensation is um an ongoing and and unique uh challenge, but I do definitely
the sustainability point uh the fairness point, the consistency with the unions and the non-UN folks. Um but feel free also to further reflect on this if there's further thoughts. I mean I even
toyed with you know the cola recommendation as I put here shall not exceed maximum you know 3% or so forth but then that creates conflict with the concept of using you know the indexes and so forth. The other thing we have to
keep in mind and this is why they get the big box ultimately though too the check on it is I if we came forth with it and the select board you would hope and they know the board does this look at it and be like this is not you know
there's a check it's not a given as well as you know town meetings so why don't we all just give this a little bit further thought I definitely will take a another version of it with the consistency language and the sustainability
language. Um because I can tell you that you know as far as the if you looked at these survey if you look at these indices now the first four are probably going to show something in excess of 2%.
Uh then the municipal personnel cola survey because that's done by all of the communities including us will range my predictions between 1% and 3.5% as you get closer to Boston. Obviously the
collective bargaining agreements all held at 2%. Um so again let's give it some further thought. Yeah, the the one interesting thing about our community, I'm not sure if everyone's aware of this, we are actually considered metro Boston because
we have the Qurell. So that's the way that we end up being grouped when it comes to all our financial information uh within the census. So, uh, you know, when you look at being 30 some miles outside of the city, but, you know,
still being tied to the financial inflationary or or consumer price index, uh, doesn't make a lot of sense, but be more detrimental to the town in the long run. No, ex excellent point, Scott. I agree. And it's it's a ongoing um battle
and anomaly as to how we're grouped in there. Okay. Uh moving along. Um then we get into the funds. Keep going. This is pretty solid obviously. Oh, so right here um there was
this is would be sort of a new section um what would be the reserve fund and reserve fund transfers and we've talked about this throughout this review. The town's reserve fund is in accordance with provisions of Mass General Law Chapter 40 section 6 and is to be used
only for extraordinary or unforeseen expenditures. In order to access the reserve fund, a reserve fund transfer RFT form must be completed by the town department or elected official requesting the transfer. The form requires the amount being requested, the
account name and account number of which the funds will be transferred, the present balance in the accounts budget, a written description of what the RFT will be used for, and a written explanation as to why the expense is extraordinary or unforeseen. The RFT must be reviewed and approved by the
finance committee in accordance with chapter 40 section six and the select board. I should probably put a disclaimer. There's a couple of scenarios where it's just the thing. The funding of the reserve fund shall be reviewed annually by the finance
committee in consultation with the town manager and town accountant to determine an adequate level of funding for the reserve fund for inclusion in the fisc year omnimus budget. So again, the current policy, we don't have an area
that's this sort of just spells out the RFT and the RFT process. [Music] the other blue area when we get to stabilization on these two pages. So stabilization um why I put this in blue and this was
flagged by a lot of you in your comments and I know we've discussed this is do we need to do we want to you know change um these percentages in these amounts? I
mean as as we know when the financial policies first came into being we were still in a position where we were um putting aside and building up stabilization and capital stabilization to meet the benchmarks. We exceed those
benchmarks as of right now. Um, so I don't know what folks thoughts are um on this and what the practice as you all know have been the recommendation at least the last few budget cycles. We've
been putting the lion's share of free cash into capital stabilization based on that capital expenditures obviously are generally significant in size and not putting as much a much smaller amount in
um stabilization. Um, I did clarify and see in yellow that the use of stabilization and capital requires the authorization of town meeting by a twothirds vote. But what are folks thoughts on the the
percentages and not to put you on the spot, maybe you want to think about it and let me know, do we do we change any of this? Well, our stabilization fund is over seven right now or it's 10,
right? Yeah. Let's see. The the minimum funding percentage was developed at a time where it was a little bit of a disagreement
between the select board and the finance committee where you know the finance committee was trying to look more towards the future. So, as we it's it's a hope that as we build our budget, we know we need to put an X percentage into
stabilization for the future and then build our budget around that as opposed to just building a full operating budget and then um saying, well, we don't have anything for stabilization. And I understand we're in a complete different
area now than we were when the first um version of these policies were put together. I would like to see that minimum percentage at least stay just you know because we don't know how sustainable our current situation is.
Mhm. And on the percentage for capital, I do actually think that should be increased, but I don't know what it should be. Okay. I think Oh, go ahead Barbara. I my thoughts were uh initially about
changing the percentage and then I came across uh some other policies where they in addition to stabilization and capital stabilization they have a percentage of uh free cash that they try to maintain unused and undesated. Um so I think I
sent that to you Robert u I apologize it was late in the game you know I'll send that to everybody. Yeah. Um, so I thought if if we're not sure about percentages, maybe if we focused on um building that up for now instead, but take a look at it. And then the only
other thing I wanted to say is um for capital stabilization, I'm trying to see, but don't we have something in here that says if we know we have a large expense on the horizon um that we would continue to build it up in anticipation and I think we've been doing that because of the potential of a
new school. Mhm. So, I think that's working. I'm trying to remember where I saw that, but those are my two thoughts. I think that's it might be in the capital section. Yeah. Oh, okay. Okay. So, when I looked at it, I I do I concur
with Scott in the sense of keeping the minimum uh the 7%. The question is I also agree on the capital piece not only based on um past practice but where we are now you know potentially increasing that percentage
but in all honesty I I don't have a a thought on an exact number yet. Um so again as the policy stands it's not
it's not a huge problem. The issue is, you know, do we want to, you know, upgrade it to reflect um the the current trend? And and Scott makes an excellent point. Uh, as we all know, we're in a a strong, you know, position and things
are the way they are, but things happen and let's hope not all the time that can drastically, you know, shift it, some huge unforeseen capital thing or so forth. Um, I will also send what Barbara I just got from Barbara. I'll send to everybody
about this this policy she found about an undesated um amount of of of free cash as it relates to this. But I don't know if you want to think about that a little bit more in that area. Um, but we have not
changed these, you know, percentages or looked at this in some time. Okay. Uh, moving along. Can we Sorry, Robert. Can we circle back real quick to the reserve fund transfer? Yep. We'll go up a little bit. Yeah, right there. Yep.
Um, so one of the things regarding the reserve fund transfer is the I think on the process from where how was explained to me when I first started um versus how we're actually using it. seem to be two different
things and I think we should try to codify that. Okay. So the way it was explained to me um is that the reserve fund transfer is when a budget is fully
utilized beyond you know there's additional expenses in there that were not the budget as opposed to I think what we've been doing is you know if fire department says well we have or we'll use the police because the police
are are one of our biggest um give acts at the end of the fiscal year. You know, the police will come for a reserve fund transfer of $20,000 because they have an invoice save for HBAC, but then at the end of the year, they're giving back say 50 $60,000 of unused
budget. So, I think it's just I would like to and I'm not sure exactly what do regulations are at this age because is as I'm getting older, I forget more things than I remember. um what the actual process is supposed to be in regards to those. Is it at the time of
of incurrence or is it at the time of um end of the year when the budget's used up? Because I know also in the past sometimes departments would discuss with the finance committee to say this is this is something we need. Would you
approve a reserve fund transfer if we move forward? Uh, and you know, I'm not sure if we're putting the cart before the horse in that front. And that kind of also goes back to I think the UDAG discussion around the usage of UDAG.
Excellent points. And I actually have to on another matter speak to our do rep. I actually have a call in. Let me ask her on the clarification. So, and I made a note here and I now remember I'm getting older too. I had no gray hair. Um, not
that long ago. I remember you and I also discussing this too. There has been, and I don't think there's mal intent on this, but I'll categorize it as there has been a drift from on the RFT from say 10 years ago till now. So, why don't
I check with Do and come up and put revise this with the uh proposed language. I I know exactly what you're saying and I think it's something we need to tighten up. Okay, good. All right, so the stabilization if folks
would think about that on the percentages and so forth. Then we come to OPE. Um again, uh policy is pretty uh solid on that already. The yellow area just mentions
that there is a OPED board of trustees who the positions are that are on it that it does does meet quarterly to review and that's in the charge. is supposed to meet quarterly to review the OPED trust and that's an open meeting
and to make any formal recommendations to the select board uh which is generally those recommendations are coming um sometimes sooner than early in the budget process but no later than about February or March what the recommendation is and it's can been the
last several cycles consistent with our policy on the meals tax and the and free cash at that 300 or 320,000% 300 or $320,000. So, I know if there's any questions um
there. Um next, almost there. Um so, I just put in blue um as the policy reads now, it says the town expects to contribute 300,000 annually into an OPED trust. Uh, I'm not
suggesting that we have to change that, but I just did put it in blue if there was any thoughts of changing that number. I think Barbara can correct me if I'm wrong. I think that's remains the magic number, if you will. Yes, it's
been that amount since I've started here. And that puts on target for the fully funding. Um, yeah. So Parker Elmore from Odyssey did make a um this amount I think we came up with or Lisa had come up with because it
gave us the full available discount rate when calculating our unfunded liability. So it gave us the top bang for our buck for minimizing our unfunded future liability um while making a contribution if that makes sense.
When's our next actuary report due for that? So, we're we're on that in between year. So, we're in the it's every other year and this is it was last year for OPED. So, it'll be next year. Okay. Um because I'm actually my only
thought is maybe we put contribute a minimum of 300,000 annually. Sorry, Scott. Just adding the word minimum before 300,000. Okay. Yeah. Okay.
I think that's good. Minimum before 300. Okay. Yeah. Yeah. Because I mean, you know, looking at, you know, the question about the canvas tax is if we want to try to max if we get to a point where we want to start maximizing a little bit more,
depending because I know we have a lot of retirements, you know, over the last year and a half and into probably over the next couple years, too. So, make sure we're in a good position for that. I am going to request, Mr. chair that the select board
put a townwide moratorum on any retirements until 2042. All right, we'll do that in and pizza pizza. Okay. All right. So, we'll add minimum there. So, then new section which we've been talking about uh the UDAG urban
development action grant and so I put this together based on all of your feedback and what we've discussed. It reads 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. So that's
that's overall where we've been for the most part. Again, using the theme word of today, there has been a drift on occasion on some things. Um, from what I heard, I mean, this defines what the UDAG is, defines what the mechanism is,
and says it really should be only one-time economic development or infrastructure needs. And again, sort of stealing the RFT language, but of extraordinary unforeseen outside of the normal budget process to and maybe we
put to include the capital process. Um, and then there's the replenishment piece. I know that there's been some discussion too in the past, you know, whether do we replenish it or do we if it's used for one-time economic and infrastructure and that that's it. But
that's a a policy decision. So, I know we've used it for I mean, we've used it for capital purchases in the past also. I don't know want to introduce that into the language. I mean
there are situations where like like for example where we are now with supply chain issues when the chief needed the police chief needed a new um car and we you know authorized the money so we could get into the queue for that.
I mean, I I like how it's worded, but I don't know if it might be I mean, I guess maybe get the feedback from, you know, Fred and the finance committee on on modifying it that way. I like the way that it is
worded as is, though. Thank you. Okay. Yeah. And again, we as we all know, this is still going to also go to the departments um in the fincom for review. Um the next section in a nutshell this is the another new section as town
meeting created in 2019. This is the reserve fund for future payments of acred liabilities for compensated balances. Uh this is per chapter 40 section 13D. Um, and it explains what it is. I'm in the
interest of time, what it is, the mechanism, and at the bottom, the last piece, it's recommended that this reserve fund maintain a balance of at least $50,000. Um, 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 uh town meeting. So again, the recommendation is that the minimum balance be of at least $50,000 per year.
Again, this is depends on how many. It's largely driven by either retirements or unforeseen separation, but this is basically right out of the warrant article and Okay. Okay. And then on capital
planning, uh I just clarified the composition of the committee. There's one member of the select board who acts as chairperson, one member of the finance committee, the town manager, the town accountant, finance manager, and
five or fewer in an odd number of citizens. So just clarifying the composition. No changes really on the mission statement. I think was very good. Nobody flagged anything. Keep going down down
the charge and then we get to um just that capital request shall be submitted to the town manager using the appropriate forms provided by the town manager. Um I flagged here and put do we need to increase adjust this or leave it. Right now a capital expense is an
asset with an initial individual cost or cumulative cost of more than $10,000 and an estimated useful life in excess of two years. Um, do we want to just keep that? Do we want to increase that threshold?
Um, uh, just real quick, the $10,000, is that just following 30b procurement? You have to have the quotes if it's 10,000. I don't think so, Barbara. I think it was just it was just established that
that this has been at least since I've been here um that's been anything over this activates you know the capital I I don't from my vantage point I don't have any issue um with that I just
wanted to flag it do we need to increase or adjust this if people want to think about that um and let me know ahead Karly I just think with like I'm still baffled and in disbelief and
um denial. 10,000 just seems so low now. Like again, four benches for Depot Square was $8,900. Like I I can't believe it. So yeah, it's still driving me nuts. I I don't know. Maybe we up it a little bit
just because prices are only going up, but certainly whatever the committee thinks. Yeah, I I think updating it to Carly's point. I mean, the prices of things have gone up so much in the last 10 years.
Um, increasing it works. And also, when we're doing our budgeting, we usually claw back any one-time expenses we put into a budget as baseline for the next year. So, as long as we able to keep doing that, um, you know, the fear, I
think, you know, 10 12 years ago was that if you put 10,000 in for, you know, turnout equipment, you well, it's probably not a lawn mower. We'll say a lawn mower for the DPW, that that 10,000 stays in the budget going forward. But I think we're proactive enough that we're
managing the baseline budgets very well and able to interject um additional cash where needed. So what if folks I sorry I do need to run I actually have another meeting because I just have another job. No
that's fine. We'll um we'll just finish up briefly the review of this no decisions. Um yeah I'm okay with increasing it. I I agree costs have gone up but I just don't know what that number would be.
Okay. I can. Yeah, we can put some thought into that. I do need to run. Um, yep. Robert, are you able to Well, actually, we lose quorum if I leave though. That's the challenge. Okay. Um, I know you and I. So, why
don't we do this? Uh, we've been meeting when, Carly. T Tuesdays. So, do you want to do November 8th? Well, let me make sure you don't have chat or rate review or anything. Yeah, I'm actually traveling
for work that week. Okay. Oh, and it's the election. Duh. How about the 15th at 2? That should work for me. Okay. Okay. So, November 15th at 2 and
we'll and then why don't we know I'll send out an email with some next steps and we should probably adjourn. Okay. Okay. All right. Um I will take a motion to adjurnn, please. So moved. Second. All right. Thank you. Roll call
the vote. Miss Antonellis I. Miss Tierney I. Mr. Preand I. And the chair says I. We are adjourned. Thank you very much everyone.