Good evening. Welcome to the town of A Finance Committee of Thursday, January 15, 2026 at 6 p.m. in the AA town hall. This is a hybrid meeting. This meeting of the finance
committee will be held in person at the location provided on this notice. Members of the public are welcome to attend this in-person meeting. Please note that while an option for remote attendance and/or participation via Zoom is being provided as a courtesy to the public, the meeting hearing will not be
suspended or terminated if technological problems interrupt the virtual broadcast unless otherwise required by law. Members of the public with particular interest in a specific item on this agenda should make plans for inperson versus virtual attendance accordingly.
This meeting will be live on Zoom. The public may access the proceedings by joining Zoom meeting ID 97877282 or by calling 9292056099. For additional meeting information about remote participation, please contact
Carly Anteneellis, assistant town manager atmirair.mma. us or 97877282 extension 100 prior to the meeting. Okay, I'm going to call the meeting to order. Um, first item on the agenda is
the to uh review and approve the meeting minutes from December 4th, 2025. Does anyone have any? >> I thought they were quite nice.
>> I'll make a motion to approve the minutes. >> I'll second. All those in favor? >> I I >> Okay. >> All right. Um, next item on the agenda is uh committee updates. And you'll see
in your packets, we've got there's been two meetings so far this year. Um the first is the capital planning um committee had
uh first well it's actually second meeting but the first big meeting where we talked about um started to talk about the capital projects and specifically at that meeting we talked about uh can I take a look at
your notes here Of course. >> Yeah. >> Okay. Um so in the handouts that I gave to you um there is uh just a one page and this is the major capital items uh
that were presented so far in the last two meetings. Um so again this is just uh we we looked at all the major items uh which are listed here and then the last meeting um Dan from Department of Public Works
did a presentation on the uh Department of Public Works specific capital items. I don't Oh yeah, you do have a copy of that also, right? I do. >> Okay. So, um, nothing really.
Oh, no big highlights except um well, so far in the the public works, um they have uh and again with the public
works, the sewer fund, there's major costs coming up there. Um but those are remember part of the enterp sewer enterprise funds. >> Um and uh is there Robert is there anything else
that you >> Yeah Mr. chair. So, um we are going to take So, capital is just reviewing the initial submissions, but just like with the budget, which we'll talk about in a moment, we have to take a a really conservative view with uh with um
capital. And so, this sheet um that the chair passed out um is just what I would call the initial that's been passed out to capital. Now, we did meet with DPW. Um next Thursday we will meet with police, fire and facilities and then on
the 29th uh we will be meeting with parks and then at that point um the committee will actually start to make um recommendations on things. So for example like the ambulance uh replacement um that would come out of
the ambulance enterprise um the storm water uh the 230 that would be the stormwater enterprise. Um the committee is taking a very hard look at vehicle requests. So like for example the fire prevention vehicle request they have yet
to present on on Thursday. Um the parks department I mean not to get way ahead but this beach house replacement that's a placeholder and they're in the design phase and not to get way ahead but I I don't believe this is going to be
ready. Um, and there's a lot of work to still be done. So, what I'm what I'm just saying through the chair is this isn't like, oh, this has been approved and and etched in stone. Um, trying to think just real quick going down. And there are some other items. Um, for
example, in the in the water enterprise fund, the PAS media replacement for 175 and for 250,000, we we're recommending that we actually use PAS settlement money to pay for
those. Um, we're in a class action lawsuit for PAS remediation, and to date, we've received about 1.8 million in settlement funds. the settlement funds have to be used for PAS uh related
projects and so forth. And so the DPW is recommending that we use some of that funding for this these two PAS related. The significance is that would reduce that impact to the water enterprise fund which will the plan is to sort of
mitigate any rates or rate increase on on the water side. So I guess the takeaway is um it's really early in the process. Um, but we'll keep the fincom up to date. If you go to the capital web page, there's all of the material
including the videos from the meetings. Um, but th this is definitely just the 50,000 ft starting point and we have to sharpen the pencils and drill down. >> Good. Thank Thank you. >> Your your memory is much
>> better than mine. Um I think the other two things just as far as capital uh as far as uh this is concerned is the west main street bridge is actually going to
>> project is finally going to start. That was approved two years ago and they're going to have a public meeting in a couple weeks where they're going to outline how they're going to be >> I think they're going to close off one side of the road. Yeah. I say work on one side and everything. So that's a go.
And then apparently the fire truck, the new ladder truck is somewhere in the United States. >> Yes. And it's expected to roll into air. I can't say it like you did. Um in October. >> Oh my god. October. Wow. Okay.
>> And that's one of the things just on the ambulance for example, there's almost a 3 year it's like 2 and 1/2 year lead time on ordering the ambulances. That's why this ambulance replacement is presenting itself now and I'm sure the
chief will speak in detail on that next Thursday. Um, so let me just throw out I mean since I I will be attending next capital planning committee meeting. Um, any observations I should bring back to them for a mark group?
>> Um, yeah. This list is way too long. I I sorry it's just way too long. There's way too many things on here. >> I I just
um I part of the thing is like for example, we're getting the fire truck delivered, right? Which we approved years ago, >> right? >> And be like great, so we'll approve a new ambulance this year, but we're not
paying for it. So there's like we tend to forget all the things that we we still have to pay for. We we okayed something but we haven't even started paying for. We haven't even borrowed the money. >> And I feel like there's a lot of that.
>> Mhm. >> Or more than I'm comfortable with anyway. >> Yeah. Like a bridge. >> Yeah. Yeah. But that was one of the things. Uh yeah. No, that's >> right. And so we got to order it 3 years in advance, but
>> what else do we have that we've okayed 3 years in advance that we still have to pay for? >> Yeah. >> So the water comes out of the water rates, right? And the sewer comes out of the sewer rates, >> right? Well, that's I then I'll give you an update on the rate review committee, which is talked about water and sewer.
So that's my favorite committee. Yeah. But yeah, no that's uh >> so all the all the all the funds the water none of that get money gets borrowed. >> Oh no. >> Oh okay. See that's
>> there's the sticking point. You say it comes out of the fund but >> No, but how it's paid is different. Right. >> Right. It's paid by the the rateayers but it's still >> you're a rateayer. >> Yes. We're all rateayers. >> Yeah. So, we're still >> I'm not saying yolo with borrowing money.
>> I'm just saying like it's I I know and and we it's infrastructure. It all needs to be updated and fixed. I I I totally understand it. >> But it isn't just just paid by the rate. We still borrow the money and then say, "Hey, we need to set these rates
>> based on what we need to pay back." Right. >> So, it's it's the same thing whether it's coming out of the enterprise fund or the general fund. In a way, we're still >> actually when we look at the rate review, I'll show you an example of that how that's how that sort of flows through. Uh cuz yeah, it's good. Um but
that's and that's and what you brought up about again this stuff we approve it and doesn't come on board till another two or three years. That's one of we had Barbara do that presentation this year earlier this year
on how the debt was flowing through and how she was when she does her projections she does >> have a placeholder and take into account that >> if you remember the fire truck still has to be paid for
>> the bridge still has to be paid for so she keeps a good track on that. I would love to see how much debt is associated to each department. >> Okay. Debt debt to department. >> So when you said would that So this is
where what we'll touch on is that it's debt service. In other words, so in other words, when we're figuring out looking at the rate review and looking at general funds, the actual budgeted item that we have to be aware of is
what's being paid is for debt service. >> Yeah. >> So, in other words, back to your point, okay, we approved the fire truck two years ago. It's just sitting out there. Now it's actually hitting we'll be hitting the budget starting in October when we actually
take the loan and pay for it. And now we have debt payments fire truck. >> And also even from a even higher viewpoint like okay we're asking for each department is asking for this money. Okay. Well, I see department XYZ.
You have X number of million dollars. We've borrowed for the department or are about to borrow for the department or waiting for delivery. So, >> sorry, you're going to have to take a break for a year or something like,
>> well, DPW probably owns some >> I I know big chunk of it and and and I said like I know all this stuff needs to be fixed, but just as a way of okay, how much do you how much are we asking for? Cuz >> they're just there are limits to what
>> we can all pay or afford. As much as we would all love to say great, let's do it all. Let's make it let's, you know, I would love to be like, yeah, we need all these things. Let's get all these things this year. >> Well, maybe you could maybe you borrow
10 million now and then don't borrow for 10 years. >> So, things are only getting more expensive. >> Do you think that would work? So we would borrow $10 million and no departments would come for anything for 10 years.
>> Specifically talking about DPW. >> Oh, so D but DPW wouldn't come for anything for 10 years. They come for two trucks every year or three trucks or however many trucks every year. There would be no no getting around it. >> Yeah.
>> Now Jim Jim Bernard has >> Oh, yeah. has made a very good observation and I I don't know if you've I know you're working on it's a list of all actually I think it's >> we have the yeah we have the DPW list which we can get for you we will have
after Thursday is a full not that we haven't had it before but all in one place an entire vehicle inventory because that is what I meant earlier when I was saying that capital is putting the magnifying glass on vehicles Um and this is just this is just what
was um submitted to capital. Every department has a right through the process to submit it from the beginning. This is from December 1st, but we have got to come way way down. >> And and part of that idea, >> we'll get to that too on the budget in a minute. >> And part of that idea was well this
department needs a truck. What oh some this department over here has a truck so maybe we can swap or >> Yeah. So yeah, Jim's on the capital plans been very because he as he says he goes I buy trucks for my business all the time. So I'm quite sensitive to this
>> and to your question I will through the chair I will talk to Barbara and we'll put together what you were saying to see the the debt service the debt by all just what you were saying. >> Yeah that's yeah that's what I made a note here. So by department debt and that so the current debt service in
other words this is we're paying out of the budget x amount principle and interest and then I think back to your original point and this is what's out upcoming this or still out this we have approved the fire truck so that still hasn't turned from approval to debt
service >> just just out of curiosity if the truck is supposed to roll into town around like October does that get on this upcoming fiscal year, next fiscal year, when do you start paying for it? >> I think it once we receive it, we have
to start paying for it. So, it would be FY27. >> Yeah, I actually have a more interesting question. >> Looking at the the projections, right, talking about debt service. >> Mhm. >> I see projected debt service. Is that like Dan actually projected what he's
going to need for 10 years or is that just the like >> So if I could just So you're you're looking at the rate review >> for anything. >> Well, no no but no actually that was let's go ahead and move to rate review because this is this is a a good
exercise and and uh so is in front of us is the rave review report. >> Continue. >> Well, I remember when I was on the rave review, right? If you look at the the model forecasts a 2% decrease of use
or revenue every year and an operating increase in of at least 2% every year. So you have a 4% gap every year which means your rates need to go up 4% every year to cover the difference. So right I'm looking at so if you like take the
sewer cash flow one right you can see the yellow over the top is the proposed debt service. Now, is that just what am I looking at? 10 years. >> Uh 26. Yeah. Yeah. >> So, is is the like Dan went through
every year and it's like I need to here's what I need this, here's what I need then because I feel like if not then it's an under estimate. >> Um so this is a model that uh and I will
allow myself be corrected by Robert as I talk about this. Um this is a projection model that Barbara and Kimberly >> Kimberly that's her name >> um use for the water and cash flow. So
they plug in the existing numbers um and then they plug in projections um so we are looking at FY 2027.
So, if you're looking at the sewer, the revenue, I'm looking at the sewer cash flow. The revenue covers all of the expenses. And this is the the key here to what you're talking about, um, Eric. If you look at the columns that make it up, you see operating expense, uh,
existing debt service, and proposed debt service. So, they do keep, um, track of that. So, um I assume in 2028 they begin 2027's are
actual that's what we're looking at. >> Yeah. >> And then from there 2028 on they uh do uh projections. But if you actually look at the capital um spending report program we have, it
actually will show the amounts through the years going out. So in other words, I think that on the sewer inflow and correct me if I'm wrong, but inflow and infiltration repairs 500,000 is actually pegged every year as a
capital expense. >> I think that's right. >> Yeah. And just to add to that, we contract and have with a company called Rafillis that works with Barbara, Dan, and Kimberly on this rate model. And like any rate model, it's that it's a
model. I I think after year five, a fiveyear outlook or as you were saying, Andrew, as you get further out, the level of assumptions are >> Well, I'll I'll say what I said in that meeting. >> Yeah. >> Which is I agree with you. the 10 years is like totally pie in the sky, but the
the trend is what you're looking at, right? And right now we're in some pretty deep trouble. Uh particularly in the water, >> right? >> Well, there's also though there's almost $5 million in retained earnings in water
and about almost just over 4 million in sewer. So the committee is looking at using some of the retained earnings as we have in the past to balance the the rate increase. If you go by that model, um it would look at a 2% increase uh for
water and 2.5% increase for sewer. But yes, I know what you're saying that the line is is close. >> Well, I I feel conflicted about those things, right? Because the problem with like, oh, we're going to buy down the rates this year is that, right, percentages are compounding. >> Mhm. >> Right. So, you're going to end up with a
nonlinear issue if you buy down your rates. So, I think you'd be better off buying down your debt. >> Yeah. >> Which is non which is a linear uh problem as opposed to a rate increase. >> So, for the rate review people on the thing,
like if you got to increase the rate 8%, then you do what you have to do. But the retained using retained earnings to buy yourself a year feels like a terrible idea. >> Well, it's to it's to balance it all out. An 8% water increase. >> Yeah. >> Yeah. Yeah. Right. But yeah,
>> people will lose their mind. >> Sure. But the the if you don't >> I'm not arguing against you to say people lose their mind. >> The cost is the cost to a degree, right? Then if it has to go up 8%, then we have to look at why it went up 8%. Right? But like if it's got to go up eight, we go up two, you're just kicking the can down
the road. >> You're burning through your reserves for no reason, >> right? >> And the other thing, one of the key variables, and this is where capital is tied into rates on all enterprise funds is the assumptions depending on what's
approved for um capital is a piece of what drives this as well. So, there are assumptions made based on the five-year capital plan. That doesn't mean um and I think this year is going to be a classic example I think in water and sewer where
that first sheet that um that's not all going to um come to fruition. >> Yeah. Sure. >> So, um if we look at that water um side, water cash flow and water fund balance.
So from the meeting so far, what we're the looking at doing um this projection assumes a 2% increase and a 2.5% increase. Now, what we requested that
Barbara's going to do is she's going to redo this projection, but with a 1.5% increase in rates and using 500,000 from retained earnings. Okay. So,
um, and we'll see how that, uh, affects this flow because >> I think part of the balancing act, the rate review is looking at is keeping rate increases level or or low.
>> Um, but Andrew, I have to admit, I saw what I think you're looking at is that boom, right into 2028. >> You brought it up at the meeting. Yeah, it's we're starting to go below >> and um >> well the sewer one looks like a much more healthy
>> situation that looks like you could fix it >> right there's a decrease in revenue in water in 27. >> So on that point that's a good point that came up. So one of the problems with water as you know we've talked about it before is when we went to the
PAS treatment with the PAS treatment everything was working and then there was a decrease in output and so we have to build that clear well you've heard us talk about and the clear well >> because the clear well was not online
some of the large commercial users and so forth water revenue water consumption is down that's that dip you see there. Now, the Clearwell is supposed to go online uh the late spring, early summer.
It's almost done. And the hope is, well, the plan is once the Clearwell is online, production will be back up. So, there's an example. I agree, like even in the model of last year or at least two years ago, that wasn't even um a
variable. So, that is why water is down. >> Oh my god. You know what? I know we talked about at the rate review the fact that we had decreased revenue >> and I just didn't put two and two together. The fact that there's a dip in revenue line. >> Mhm. >> So
>> I don't I don't understand why um why we don't. So if we have what would you say like $6 million in retained earnings in water >> about water I think is about >> 4.5 in water and sewer is just about
five. Yeah. Okay. So, 4.5. >> As an example, why don't we instead of borrowing $500,000 for inflow infiltration repairs, take $500,000. >> Mhm.
>> And out of this retained earnings and pay for it. >> That Well, that's what we're That's the current That's the >> That's on the >> That's an expert. That's the was the suggestion at from the last rate review meeting.
>> But but I don't know that it needs to we need to do that just to keep rates low. Like I think to Andrew's point, we need to have rates at increases at a point where this is all sustainable and we don't get to a point where it's like, well, water went up 15% this year.
>> Like, we don't want that. >> And we spent all our reserves buying down the rates. >> Oh my god. But like to, you know, mitigate some of that, it's it's always cheaper to pay for something now >> than to borrow. Regardless of whatever
fancy math there is that shows interest rates and arbitrage and blah blah blah, if you can pay for something today, it's cheaper than paying for it over 10 years. >> Yeah. >> I don't know. This is maybe an off topic
adjacent question. The reason we don't put inflow and infiltration just in the omnibus budget borrowing over here. Well, there's several reasons. One is it it's considered capital as opposed to
operating. Um, also it's the the INI is it's under the the the sewer enterprise fund as opposed to the general on the bus budget. Yeah. Yeah. Yeah. It's part Yeah. Um,
so one that's I'm glad I'm glad I threw this out because the feeling from the rate review was boy, you know, let's you know, we every year we we we you know ask for two two and a half%. But what I'm hearing is it
water is what it is. We we have the PAS problem. Um, we have an expensive water system, so we might as well keep up with it by keeping with a 2% rate increase. >> I would say look at one and a half, two, two and a half and three and buying
$500,000 back. >> So the original So the original this projection is at for the water only is that was 2%. Um, that's what that is. And then the uh the one scenario she's going to run is 1.5% and 500,000 from
retained earnings. So what I'm hearing is maybe just keep it at 2%. >> Cuz in a way I know like this is that's partly how we're in the situation we're in. we have that over years the
decisions weren't made to like say keep up with things or whatever. So Dan now is like I have tens of millions of dollars of of fixes to do. >> I feel bad for the guy. >> Right. Right. It's not he's not like I want this, you know, to look pretty with flowers. These are things that need to
be done. Yeah. >> Um, so I think in a way there's facing that reality of, you know, we it it can either be painful now or extremely painful later. >> Yeah. >> And it's >> he always uses the culverts as an
example, right? Like fixing a culvert's a lot easier than after it breaks and you have to totally replace everything, right? Well, that and that leads into we're not we're not going to do too is that's why we now have the storm water >> fund because part of the purpose of the
storm water keeping the storm water system up to date is that that does not enough so the storm water doesn't go into the sewer and bust up the sewer pip raise the sewer price. I'm going to channel my
inner Eric and expect that the budget has gone down accordingly uh to cover my increased water rates. My my future my future note. >> Well, that's I think that's part I think that's part of the balancing act going
on the rate review and stuff. So, but no, I'll I will take that back to the rate review then. Um and then now the sewer looks a little bit in >> sure you want to kick that can down the road that looks much more tenable.
>> Yeah. >> So >> I think for water I think you actually need to play the game with projections of like look at doing you know two to 5% plus whatever options you have of spending some money
>> maybe in like 1%. This budget doesn't consider the Clear Royal coming on. >> Correct. >> So that's not in this forecast. >> Right. So that that dip what the dip the dip that we're talking about was caused
by this PAS thing. Yeah, >> the Kimberly and Dan uh the plan is once the the Clarewell will correct the the production issue and hence the flow no pun intended of revenue should should
increase. >> So then I think from what you're saying this dip right here that then just then continues to increase at this smaller pace should in a way actually go up a bit first and then continue at the Yeah,
there should be an adjustment >> so you can see a reverse. >> That's what the whole that's what I mean I don't want to say that but that's what the whole the plan is. >> Yeah. >> And when Barbara did her presentation was under the impression that when we
have a surplus of cash, she applies that or the town applies it against these capital projects and pays them down. Is that >> correct? Yeah, it's >> so in essence, isn't that what we're doing when when we have that surplus? >> Yes. >> What Eric?
>> Yes. The question is what as you Yes. is a simple answer, but what we're looking at is >> uh pushing that a little further. In other words, it's been a very conservative. >> Is there more we can do on the capital front? >> Okay.
>> For these enterprise funds, okay. >> Okay. All right. Good stuff. Um, so let's continue on our agenda here and the next item is
uh Robert is going to give us an update on where we are on the 2027 budget and then also give us a a presentation on the uh administration department part of the budget. >> All right. Thank you gentlemen. Good
evening. So the the first thing is tomorrow uh you will get I will send to you it'll also be in the board packet. You'll get draft one of the budget which is due tomorrow. Had really hoped really been pushing to try to get it here for tonight. There's just some some final
things but we'll talk about a high level on that but you will have draft one um tomorrow. So just a couple just to show you sort of where we're at. You've seen this slide before when I came to the finance committee that there's I'm not
going to rehash from my perfect storm presentation, but we are in a perfect storm in the sense that it's going to be a tight budget year. Um, not only for air, but for a lot of other places. Um, but just to recap is the FY26 omnibus
budget was at about was about 20 million for the sake of discussion. There was a 5.9% increase. The average increase of the omnibus budget over the last 10 years has been about 5.2%. We've got to get back to five and below
five in terms of sustainability. So, one of the targets is that the omnibus budget does not for FY27 at a maximum um increases by 5%. If that happened, increasing the budget by 5% um would be
a million dollars in um additional um funding. However, and the situation has changed is all of these drivers and we'll talk just briefly about health insurance and the schools because the health insurance situation has actually
gone from 20% to 25%. You can see health insurance alone, we're still anticipating 25 um% increase and we won't know the rates until the end of February or March. Um that's why um we
ask for some reduction scenarios to plan for that. Additionally, the Air Shirley Regional School District and the town of Shirley also have Maya. um health insurance is crushing um every municipal entity um in Massachusetts. The well
I'll show you um well let me show you where we're at. So so those are the drivers. So on November 12th is when after it come to the fincom with the department heads is looking at what are the budget drivers. So health insurance
at that time we were looking at 20%. the debt service at 283. Union contract obligations, that's what is already agreed in contracts as the impact. That doesn't include the clerical contract. That's up. non-union uh contract
obligations, fixed operating costs. Um and then the school assessment, specifically the air surely one, that is just an assumption of that would 7 if the school assessment goes up 5%.
It'd be approximately a $765,000 um increase. The bud the school assessment in my time that I've been here has ranged anywhere on the low side for air around 3 to 4%
and all the way up to 9%. Um not to speak for the school committee because mark your calendars February 3rd is the joint meeting of the fincom and the select board with the schools are coming down. um they have been saying that it's going to be a doubledigit um assessment
increase which uh we'll get to um in a moment. When we move forward to December, the health insurance situation, we were had a 20% placeholder. Our Mayer rep and so forth with saying you really need to be around
22 to 25%. And now we're really hoping that that number comes in at 20% or lower, but in draft one of the budget, we have a 25% placeholder there. On the debt service, uh we've made significant
progress, not to get way ahead, but we're down from 283,000 down to 119 um,000. We continue to um review and work on that. on the contract obligations. Again, we're on both the
union and non-union. We're now doing the deep dive with all the rate um all of the pay rate reviews. The clerical negotiations are underway. The fixed costs have still held at that because fuel is looking favorable and most of
our energy contracts uh are locked in right now. The school piece should really be a huge question mark, but I put a placeholder in there. And the Nshoba Valley Technical High School, which I sent to all of you that are invited to the budget breakfast on
February 5th, uh we're looking at about a $100,000 increase cuz we have more students there. However, that's just a placeholder that 100,000. I'm hoping that would come down maybe more to the 80 to the 90. So, we've made
a little bit of progress on the on the driver front. So, the omnibus budget that you're going to see, and this is just draft one that you're going to see uh tomorrow, um will be issued on January 16th. January
spelled wrong, sorry. It assumes a level service budget. In other words, we ask for three scenarios. A level service, a level funded, and a 10% reduction. It's basically a level service budget at this
point as a as a starting point. There are um adjustments. It currently maintains all of the FY26 staffing levels with no new uh positions. It assumes a 25% health um insurance uh
increase. It doesn't include the clerical contract cost because the negotiations are underway. It includes some of the costs on the non-UN personnel contracts. There are three of them um that are uh wrapping up. It does
not include any non-UN cola cost uh per the town's financial policies. A recommendation is made to the select board. In this case, it'll be February 17th and it's subject to um whatever the select board if they adopt the
recommendation, it's subject to town meeting approval. So, all of that in a nutshell, draft one um increases the FY26 budget by just over 1.2 million or 6.4%. So, we're about over Now, this is
already changed. I'll get to in a second, but we're over um about 284,000 for the uh for our target. So again, here's the omnibus was 20 million roughly last year. Our target is
2129408. That's a maximum of 5%. Like to obviously try to get below that. Right now with the level service budget when it came in, it's still over. Now since that we've looked at this was about a
week ago up until that's why it's coming out tomorrow. They have been further reductions. I anticipate that um don't hold me to this, but I think that for tomorrow that draft one will come in at about 5.5%.
Which is about a half a percent over the target. So, we still have more work to do. That's assuming that health insurance doesn't go up beyond 25% which a and the school remains a variable. So what's missing or what we don't have yet
in the process the clerical contract costs to be determined the non-union contracts to be determined if a non-union cola that has been done historically that's for all the non-union folks the call firefighters
and um uh the uh stipens elected stipens that'd be about 50,000 u there is no cola in in draft one of the budget So if you add when I said we're 284 over, we're about 364 at this time. If
you factor in that's assuming there would be a cola. We're not there yet. And that is about between the clerical contract and the non-union maybe another 30,000 based on past. Um but I don't
want to in the because the negotiations is underway. So, what what are we going to what what's up next? So, tomorrow you'll get draft one. Um, it will be available just for the public on the town's website and in the board packet.
Um, I'm anticipating, as I told you, it to be around a 5.5% increase, which is okay for a draft one. We've submitted draft ones in previous years, much much higher percentages, but we're trying to really focus this down because draft two
right now must we've got to reach that target. Um, which we will um draft two is going to be submitted. And the reason it's not in the budget calendar is once we have the health insurance rates which
is the end of February, beginning of March, we're really hoping end of February and the school assessments which we will have Nishoba on February 5th Regional School District at least when they come here on the third will have an initial we'll have enough more
information to further um further shape this. So the key benchmarks coming up February 3rd with the fincom select board is the budget presentation from the Shirley Air Shirley schools valley tech the budget breakfast is on the 5th
if you can make it if you can't once I get that on the 5th we'll send it to the fincom as I do every year so we'll have that number I am the February 17th will be the cola recommendation which there's a whole process set forth in fincom on
that financial policies, the health insurance rates la end of February, early March, and then the public budget presentation uh which is a joint meeting of the select board and the fin all of the departments is scheduled per the
calendar for March 25th at 6:00 p.m. Any questions on draft 1? I know that's just a quick overview. I was really the chair really asked me to come to just briefly talk about some of the administration budgets but I wanted to so you'll be you'll get draft one be
happy to come back I'm going to do a similar overview on Tuesday night for the select board um and we'd be happy to come back uh to further discuss um because there's still a lot of a lot of work um to be
done because I will say this I we can only deal we have to plan for the future and we're dealing in real time. But the reality is the health insurance and the school situation, it would be awesome if it was more like the PAS water issue.
It's not going to be just an FY27 problem. It's going to be an FY28 and probably FY29 problem. So, we've got to tighten up and bring down um this bud budget. And there's going to be some there's going to be some pain and some
tough decisions involved with that because the other pieces the taxpayers I've said this to the departments the taxpayers that foot the bill for this are hurting and are experiencing all kinds of pressure and the health insurance system in my opinion on the
municipal level is broken and I'm not and it's up to the federal government and the state need to do something but based on the current situation so I I know you gentlemen can appreciate that. I just want to say we're not just I I wish it was just oh we're going to have
a problem this year but so okay so real quick what the real reason and I thank you Mr. Chair for let me do that um is about the administration budgets. So specifically I talk about the budgets for the select board town council
management support and general insurance. Um when we say administrative budgets, I mean ultimately I'm responsible for the administration of the entire um budget um with the department heads and boards and committees, but we'll just take a quick
look. So this is the select board budget as you're going to see it um in draft one tomorrow right now. So >> So just so you we you've now changed your hat. You're now doing a presentation on the the >> Yeah, just on the town administration
part of the Yeah. So, part one that I just and I'll send you these slides and put it to your website. The first piece is I just felt where draft one is coming out wanted to hit upon that. So, the select board budget um the salary line
contains um the town manager and assistant town manager. Uh we both have personal service contracts that are on the town website under the select board under contracts and it includes the the select board um stipens um there. So the
increase um the 14,192 is a contractual um increase and that's with you know no um colar in it. the wage line covered uh what was a full-time department administr
administrative position um that was in the office. Um in light of the situation that we're in um we're proposing uh reducing that position to 30 hours um uh
from 40 to 30 um and that would be the the savings on that front. And then the service and supply lines um and the expense lines are all um level
funded. Um and right now that sits at um a decrease um from last year just shy of 1%. Um now depending on how as we move through this process that wage may come
down even further. Town council budget line item. So the town council um services the whole town. It's under my office more for coordination and cost controls because before I came it was a free-for-all and
there was issues. So it was at 85,000 for FY26. This is a tricky budget in the sense I if I had a crystal ball, we never know who's going to take legal action against the town or what's going to happen. So
we do our best based on historic trends. In my time here, it's been as low as when I first came here, town council budget was about 315,000 and we're involved in all kinds of huge Yeah, it was big. Much much higher. So, um the
average um so it was 85,000 last year. There have been times, as you know, I've come before you, needing a reserve fund transfer, small ones, because things have come up that we had no way of knowing that tipped us into that. Right
now, we're still running strong. Um, I know we still have to get through the second half of the fiscal year. Um, so hopefully no RFT. And I the key piece I think at this time we best it would be
best to level fund it. Town council is increasing their hourly rates by $10 an hour on July 1st and you're going to see this throughout the other challenge we have within the budget is costs are going up on everybody to some extent. I
mean that's that's modest. That's not um the real concern. Also, significant property enforcement matters have been resolved at FY26. We had an enormous a huge um case which I know you're familiar with. Um
involving some property and animal enforcement that's all been resolved. So based on knock on lenolium right now um we're looking at putting forth in draft one level fund. Now if we
have to reduce that we can reduce that the tradeoff becomes um you know are we going to run it'll be less legal services and so forth and and the big driver of this budget is always the unforeseen you know lawsuits and so
forth. So that's where we're at with town council for right right now. Um so then management support. So you'll see in the budget there's this there's a series of lines called management support and um this one I wanted to
offer some more definition of okay what what is under management support so the first item under management support the wages um we have a full-time um administrative coordinator that provides
um full administrative support to the building department to the to the planning board and town planner and to the board of health and um I will say provides excellent support to the town. Um that position is in the union. So the
union contract negotiations are underway that so that increase that you see that is a contractual um uh step that we know of that line will most likely increase slightly depending on the negotiations.
the overtime line. Um we've level funded that. Um right now this is for overtime for this position. That has always been um very helpful and willing to um cover meetings and other um tasks that would
be uh subject to overtime. Um then the next line um the management support services for 50,000 which is level funded. So what's in that? that contains the clear gov budget book platform. So that's the the program we use both for
the capital planning and for the budget book. Um that fee is in there. All of the town meeting warrant printing and I'm going to talk to the I as I do often many years to the board about this. We print the full warrants for all town
meetings and mail them. Printing costs have gone up in the last five years and continue to go way up. It's a trade-off, right? On one hand, everybody, we send out 4,200 roughly warrants to every household before town meeting. So,
everybody has all the information is important. Some towns just send like a postcard and say you can get the warrant here or so forth. the board in previous years and Carly's done an analysis on this which we can share with you in previous years need to update it is do
we continue the level of you know printing um the general code platform. So, when you go to the town website and it says bylaws and you click on there, the code the general code platform is the agreement that uh organizes all of
the code um because our bylaws were a disaster before general code and now you can do a an itemized search and so forth. And then the town report, which is required by state law, that's the book every year. Um that that again is
the printing cost. So I know it that the 50,000 a good half of that is probably all printing and so forth in there. So something we are going to be looking at um as we move forward for right now and draft one just level funded it. The
supply line that's the 4500 is all of the the copy paper um in the copy room that's used by the town. a copy machine service contract in toner, not only for the copy machine, but toner for some of the town printers and so
forth. the increase, I know 80% the $2,000 increase um was recommended by Barber in the town account based on um toner costs and the increases of costs here cuz last year we had 2500 and we
just they just made it without having to do a RFT. Again, something we'll look at and then management support expenses 6,000 that's level funded. at the last line on the bottom that contains all of the legal advertising that the town has
to do um legal notices for postage. So with the zoning board of appeals, for example, has something that we're required by law to notify all of the abutters and then election and town meeting um signage from the town clerk's
office. That's the smallest amount. The big piece is the legal advertising and the legal notice. um and postage. In most towns, we still have to advertise for certain things under statute in the newspaper and those ads are not are not
cheap. So, um I'm glad that the chair had asked on this because this line often gets not, you know, looked at and and people over the years have asked sometimes that tell me, okay, well, not the the top line, not the position, but what else is in that line? So, right
now, this budget would there's a slight um increase at this point, but again, I think we're really looking at that $50,000 number in terms of um printing costs and so forth. Two, I've got I think this is the last
one. So, general insurance. So, of course, any town has to have insurance. This this line item is overseen by the assistant uh town manager. The first line is our workers comp. Um, which there's a 5% placeholder. Um, the
frustrating part with this this budget is these we don't get these rates until the end of February or March just like the health insurance. But we try to put a placeholder that represents I would say the maximum. So workers comp there's
that 5% placeholder. That would be the maximum. We're hoping that will come down slightly because um you know based on our claims history. Then the fire police liability insurance. That's when you hear us talk about um the 111F. This
is the insurance that covers police and fire. Again, similar thing as a placeholder for 5% at this point. The good news this year, which will be the first year for what it's worth, is the fire caus our fire insurance and
causality insurance, we're it's level funded is we're in a rate lock in that um Carly was able to negotiate. And so we're locked in, I believe, not just this year, but I think next year, the year after. Still a significant amount
at 182,000, but no no increase. that line some years has increased by uh anywhere from 5 to uh 12%. So again a slight increase but that increase hopefully
uh could come come down. So those are sort of that was it. So that's sort of just a a snapshot at some of what we'll call sort of the administrative budgets um in the on the bus. So, if there's any any questions
and um we'll definitely can revisit when we have the have the full budget. The other ones I just didn't put up here, just so you know. You'll see in the omnibus there's the postage machine, which there's a slight increase cuz postal rates went up. Um that's overseen
by the town of Hamilton and that's by code by department. So, it's not a it's not a freeforall. And then the other one, parking tickets. Uh there's about $1,000 is the service that we use for parking tickets. Up until COVID, we
brought in about anywhere from 15 to $20,000 a year from parking ticket revenue. Then CO came and there were none and then very little. But now we're seeing an uptick again. I think the chief has for not to balance the budget
or anything, but the $1,000 is for the the service. I didn't make a slide for those two, but you'll see that in the budget. It's level funded parking tickets and postage is a slight increase because the rates it matches the rates that went up.
So, there any questions? And I will get you this presentation and put it on the um website because I just finished it up right before the before the meeting. >> So, with the printing of the warrant and the the town >> Mhm.
report. Um, >> do you have any idea like if if we didn't print them all and we had them essentially just available digitally, how much that might save? 10,000 4,000? >> No, I I think it could save probably
about 10,000 that it because the printing cost. So like the warrant, you know, you've got the >> the printing of the warrant. Um, that's a big that's a big one and that's for all the town meetings, you know, that's for the annual in the fall. The town
report. Um, that's another one, you know, and I think we're moving I don't know as some people like the hard copy. I hear what you're saying and I >> I'm just wondering. No, I when we're in tight times as we move forward um we
have to look at I know a lot of towns do um like where I live in in in Duniple you get a postcard that says when the town meeting is and please go to this website and you can pick up hard copies upon request like town hall. >> Yeah.
I was just going to ask is there a means of asking people to opt out from paper versus virtual? Is that a consideration? >> That's an interesting idea, Bob. >> I like that one. >> Certainly is a at least a first step.
>> Yeah, I feel like all the research I've done on it >> which is like part it's partially an access issue, right? like low income people normally don't have the same resources digital resources as other people >> right >> it is the modern era but
>> right >> milling a warrant to someone makes a difference makes a difference optic I mean >> there how many people live in town and then >> so there's 150 people show up >> I was just going to say there's about don't hold me to this I think there's about 4200 what we'll call households
and there's a formal list so we send out about 4200 quarant To your point, the average turnout at a town meeting is about 100 to 150 average, >> right? Let me look into that Bob about an opt out because from what I
understand before I came >> there was a town government study committee that looked at ways how can we get people more involved in all type and one of the recommendations that came out of this and it was probably in the year 2000. So we're talking 25 years ago
costs were a lot different is if we mailed the warrant to everybody everybody would in full transparency everybody would have it. Now the law is the the legal requirement is after the select board approves the warrant it
needs to be posted in each it needs to be posted at town hall and in each of the voting precincts. Now we post it in 10 locations post office here the doc that's the only there is no legal requirement to mail the warrant or so
forth because people have asked that too. The the only argument I would make about and I I really do like the often thing about you know like people saying you know like is >> um >> it's not being kept from you like having
you having physical copies available to you can go seek it out. You don't have to get online. You don't have to be a you know an experienced coder >> to be able to find >> the town warrant. Mhm. >> If you know, >> right?
>> It doesn't have to be spoonfed, too. >> We're pro town engagement, right? >> Maybe if one person shows up, it was worth it. >> Yeah. >> I I in theory, I love that we mail it out to everyone. I think it's fantastic. I >> I Yeah, I come I come with it when not
in there, >> right? And I think the issue because we've talked about it before lastly on this is the question that comes up is is this a budget buster? Obviously it's not a budget buster but there's no this line
I'd have to look and I I meant to ran out of this line was not at that level you know not that long ago. It's just the issue of the costs and same so the town report as well similar thing the only legal requirement is that we produce an annual report that's
accessible to the people defined as you know a copy on file with the town clerk and we send a copy to the state. We don't have to print them. We always have and we've cut down on the number of those that we printed because it it is
available electronically. So, but I like that opt out. If there's a way to do that, that would be good because then it gives people a choice, you know, opt out, opt in. >> Yeah. >> Ironically, >> Yeah. >> every meeting. >> Uhhuh.
>> Yes. >> Right. And you know, with the advent of the computer and the >> uh ability for virtual meetings, I find it ironic that >> we print more paper now than we probably did before because of the ease of doing
it. >> So, um uh you know, just I know it is a small part of the budget, but what did Benjamin Franklin say? >> Yeah. >> Just keep counting pennies and the dollars will take care of themselves. >> True, right.
>> So, We should bring back the mioraph other boards have gone to make copies. >> So now you know every time you get paper at least you know it's coming out of management support supplies account 54,000.
>> I have to admit it's easier for me to read paper >> online. I have a short attention span so if I get through the first two sentences I'm doing well. >> I think it also is Not our age specifically, but everyone
in here grew up right >> always using this. I think my my kids have a much easier time doing everything and just in reading on the screen without >> without it, you know, whatever, you know, whereas I'm like, "Yeah, I'll just
print it out and read it." >> The planning board went full digital >> because they they had you get plans and all sort the paper and that is huge. Yeah. >> So, >> one other thing I want to look at on the printing is I want to talk to Desoba
Tech because they have a print trade, you know, the vocational school is is there an opportunity that they could potentially do some printing for us, you know, it would be potentially cheaper and it would be good for the students. So, but I like that opt out. So, we'll
keep you posted on the printing front, but it's not cheap and neither is the advertising the legal Governor Baker tried to get legal advertising in the newspapers out in the Massachusetts modernization bill. And I think that the
last the media lobby convinced the legislature to keep it in. It is interesting because I know Samantha has to mail those things out and she'll be like, I put it in this newspaper or this newspaper because it people need to be able to get it. I'm like, what's the
circulation like? What what how many people does that actually reach? >> And it's state law. It drives all the towns crazy, but it's required. >> I don't get the lum. >> No. Yeah, I was the ironic part is which
newspaper do we even get in town? >> And and I I can't there's another one too. I'm like >> and they're expensive if you get a newspaper subscription. It's not it's not what it used to be, >> right? >> Oh god, someone someone shoot me.
>> Okay. >> Um rolling forward. Thank you, Robert. And >> yes, thank you gentlemen. And if you have any >> thank you for that >> detail there cuz it just >> gets me warmed up
>> to look at the rest of the budget. Um so >> public >> oh yes the >> is online >> is nobody online. Okay. Um so um schedule next meeting. If
you note, I have a calendar updated calendar for us. So, why don't we walk through that? Um, so our next meeting we've got, we're going to do a third meeting. Well, just a second meeting. Usually,
our meetings are first and third, and by virtue of the calendar, we've got a another Thursday in January. So, we're going to have a meeting on January 29th and that's where we will take the first good look at the whole budget. Okay. And
then February 3rd, Tuesday, we have a joint meeting with the select board so that the Shirley can just do one >> presentation. Sure. The school district.
And then February 5th will be our first meeting in February and that's where the fire department and ambulance will make their presentation. Uh and then there's the next um three
meetings, second one in February, the two in March are um just placeholders right now. And we've got public works, police department, and the Shoba Valley Tech. what I bought
uh Robert helped me put this together with with the uh with the joint meetings. Um so Robert what I was going to do suggested today was I will contact Dr. Pigeon and see >> which of if she can make either the 19th
of February, 5th of March or 5th of N 19th of March is that would that's test. >> Yeah. And I think wherever Mr. chair. Wherever she can make it, then we can we can adjust our people accordingly. >> Right. So, okay. So, then we'll have her
uh say which of those three meetings that she she can make and then I'll schedule public works and police department for the next two meetings. >> And then on the March 25th is the public forum with this again joint with the
select board. And then uh April 2nd we review photo warrant articles. April 7th um >> select board meeting >> select board and then we have our
regular schedule meeting on April 16th. We'll see where we are then and then town meeting on the 27th. >> Mr. Chair, >> off to the races. depending on where we're at. As this committee knows, historically sometimes the April 7th, you know, has been a joint meeting as
well. I know I I do like how you have I like how you have it separate for April 2nd, >> but I'm just saying um if for some reason um >> we need to also use April 7th with the select board, we could. I like how you have it that the ping pong will do its
stuff on the second, >> right? because that's what we we've historically >> But I'm just putting that out there. If there's a wrinkle or something, you're always welcome. >> Oh, well, I mean, because then technically on the 7th, I present to the select board, >> correct? >> The the result of our April 2nd vote.
>> Yeah. >> Okay. Okay. Any notes or observations or corrections on calendar? >> I like it. >> Let's do it. >> Okay. And >> thank you for putting that together. And then the other thing I just want to throw out, Robert, before I forget. So,
we still have to make the free cash >> aotment. >> Yep. >> And when is that when are we going to do this? >> Cuz I'll just I was thinking I'll add this to the calendar. And we've got like
>> Why don't we We could do that as part of the January 10 29th review. >> Oh, >> okay. And then what I'm thinking is on April 2nd because almost the use of all of the free cash is tied into warrant
articles on the 2nd. It could also review when you approve, but we could we would be ready uh on the 29th. >> Okay. We could do an initial >> initial it can be initial right to say this is >> and we've got about 2.5 million I think in free time.
>> We got 2.9 2.5 million. Okay. Okay. So, that's what I'm going to So, that's going to be for I'll add that to the agenda for January 29th then. Okay. I think we're Anything else? Okay. Okay.
I have nothing. I'm like to make a motion to adjurnn, I guess. >> I'll second it. Why not? >> All those in favor? >> I meeting is adjourned as of 7:11. Thank you.