[snorts] Why doesn't Karen come up? Let's move. Say not so far away. >> I'm good. We're fine. [laughter] That is too much shuffling and coercion. Thank you though. >> Good evening everyone. Uh welcome to the
finance committee meeting for Thursday, July 9th. We have a welcome for our new member uh reorganize the committee. Going to review year-end transfers with treasurer Robin Healey. Potential reserve fund
transfer for the fire department. A couple of appointments for committees. An update to Shaker Lane. uh any member or public input, approved minutes, and then our next meeting. And with that, we can start tonight and welcome our new
member, Cara McCloskkey. >> Hello. Nice to be here. Thank you very much. >> I figured we can kind of get two birds with one stone here. Uh Marilyn is is taking our minutes tonight through LCTV and she doesn't
really know you guys. So, if you could inter introduce yourselves and so Marilyn could know who she's saying what. [laughter] >> Where's Marilyn in there? >> Marilyn's watching on LCTV. >> Oh, all right. Okay. Hi, Marilyn. [laughter]
Cara McCloskkey. I live on New Town Road. I've been in town 20 something years at least. Um maybe 25, maybe more. Um, I most recently served on the charter committee which was a super interesting experience and I'm happy to
be part of the finance committee. >> Excellent. Welcome. >> Yeah. >> I'm Rick Kingsley. I live on Hartwell A. Um, do do I need to uh say anything more than that? [laughter]
>> Give your background to so >> I have a pretty extensive background in municipal finance. I worked for the state division of local services for close to 30 years and then worked for the Collins Center for Public Management and then I worked for the commissioner
of education serving as the fiscal overseer of a school district. >> Wow. >> Rex ringer. So >> yeah, no kidding. >> Um since we don't have a full committee, we can probably hold off on reorganizing
till next year. >> Whatever. Whatever. It's fine with me. Yep. >> Unless >> what could you just explain what the reorganization entails? >> New fiscal year. >> Yeah. >> New chair. >> Yeah. >> New vice chair. >> Got it.
>> Secretary. >> Yeah. I mean, we could do it. I don't know if either one of them wants a chair and vice chair. >> Well, that's quick. >> I in my opinion, the chair and vice chair positions are should go to you
two. Um, you you've been on the committee. You've been on [laughter] the committee the longest. So, um, I would feel comfortable nominating Steve as the chair and Fred as the vice chair. >> All right. And here comes Sanjay. That's good.
>> Just say second. Sanjay. [laughter] No. Come on. Come in. Come on in. [laughter] Come on. Hello. Sorry. It's okay. >> So, I'll catch you up. This is our new member. [laughter] >> Hi. Nice to meet you. Sanjay.
>> Hi, San. Nice to meet you. >> And this is Sanjay. Marilyn. This is Sanjay. In case Marilyn's doing our minutes for us, so she knows. Um, I guess there is a motion on the table right now to select chair and vice
chair. Fred of me is chair. [clears throat] Fred is vice chair. And uh, Sanjay is by the way our clerk. Unless somebody wants to take that position from Sanjay. Do I have a motion for clerk?
>> I move that Sanjay be appointed clerk. Oh, he's done an excellent job. [laughter] >> I'll second that. >> You okay with that? >> Okay, I have a second. >> I did. >> We have a second for chair and vice chair. Did we second those two?
>> No. Second. >> Second. >> Second. Yeah. >> All in favor of the slate of officers say I. >> I. >> I. I. >> Opposed. It's unanimous. Thank you. I'm sure Fred says thank you, too.
>> Elated. [laughter] Okay, we can get into the year-end transfers. I can turn this over to Robin. We have transfers in front of us each year for our new members. Um, the budget is the budget as we know
throughout the year. We don't really make adjustments to the budget at the fall town meeting. Occasionally departments do overspend their budgets and we have the opportunity up until July 15th of the
following fiscal year to straighten out any um overages we have in line items from departments. So usually it's within the department first they look and if not then we can look as town meeting votes
um town government public safety and those categories we look within the category and if not then Robin gets creative but [laughter] I don't think she had to get too creative this year. >> No actually it's a a small list this year compared to last year. Um if you
look at it the first one was the assessing department. We had a deficit of the 485694. Um that was because we had extra help through the certification through DLS the the restart. Um and that made us shorten wages but we thought important
to help so that we could um get the help so we could set the tax rate. So uh that is coming out of some accounting wages that we had. um field maintenance which is DPW had a shortage of 826959
which was some stipens for like um that they get for certifications that they get along the year that were not budgeted steps and stipens along the way that they just weren't budgeted um the health department >> before you go. >> Yeah. >> Have they been budgeted for 27?
>> Yes. Kim and I made sure those were budgeted. We had a discussion with Steve so we should be good. Um, and for assessing, we're not hiring anybody this summer to help with them, so we're fine for that. Um, for the health department, um, you may or may not know, um, that Francis left, um, to a job closer to
home. So, we had to hire an interim, um, professional services, uh, health director to get us through the end of this this fiscal year and a few months, a couple weeks, excuse me, in July. So, that's that 2,998. Um, and we're taking that out of some
money we had in veterans benefits. Um, information technology, there's a shortage of 18,794. That is primarily due to the Munis software that wasn't budgeted high enough. They don't give us a quote. Um,
so we estimate and um, Nancy estimates that. So I believe she went higher this year for that. >> Yes. So you'd like at least 3 to 5% increase >> yearover-year >> over what she budgeted last year. So
this could be kind >> over 26. Yeah, over the 26 number. Yeah. >> Um street lighting. Um that's a bill we get from the electric department for the street lights. It was short 287443. Um [snorts] that's an it comes from the
electric light its rates. Um, we did up the budget this year to 19,027. We may still be a little short after getting this. We'll deal with that when it happens. Um, [snorts] the town clerk um the assistant clerk um
was not budgeted for a step. He started was like the first couple weeks of July he started and um it was missed that we didn't include the step. So, normally you wouldn't get a step, but it was so close to July one that um the step was approved.
>> So, he should be covered this year, though. >> Yeah, he's all set forward. Um town meeting reports uh 22732. Um expenses were higher than budgeted. Some of that is Meridian that we've been pulling in to help um with the computer
services at town meeting. [snorts] Um >> now, she normally budgets for that. >> She does. I'm Yeah, she does. So, um, Tom meeting, excuse me, treasurer, uh, that's, uh, $37,66.58.
That is because, uh, the finance director position was shifted to me in the treasures office. It lived in the TA budget as well as Kim took on the procurement piece as the procurement officer, which was also in the TA budget. So, that's just a transfer from the TA budget. Um and we made sure to to
hold back on that so that we had enough money to cover that in this fiscal year. So >> So is it totally covered by that transfer or Okay. >> Yeah. Yeah. The TIA budgets not short. So >> Okay. >> Yeah. >> Um that So that's all the general fund
transfers. This year for the first time since I've been here, we have some enterprise fund transfers. Um these transfers have already been approved by the water commission. Um Erica brought them to them. That's >> is this this other memo? >> Yeah, that's a backup for it. >> Okay.
>> Um so we thought they should come through you and select board to be approved as well as the water >> on the water or sewer side. Yep. >> Yeah. Okay. >> So um the water department had a $600,000 shortage um for a capital project. So they're transferring that
from a miscellaneous expense. >> And is there any >> She has a whole thing here. It says two projects that came in over budget were necessary for us to complete. The first was a replacement of a water man in the sewer district and the other was a main
water man replacement on Taylor Street. [snorts] >> Well, well, it states what happened, but it doesn't state why it happened. I mean, the why did they end up spending 600,000 more than they had budgeted?
I I wasn't like I wasn't at that meeting because I was at the hospital. So I apologize. >> I don't know that [laughter] she >> I couldn't help the hospital why that went over. >> Um but it's categorizing it just within the category still approved in their budget.
>> It's just reclassifying from miscellaneous into that line within their budget. >> So if you look Fred, they're both 6,000 funds which is the water budget and they're just shifting. I don't even know if they really needed to because they have enough to cover it, but they're
they're they're putting it out there. Um the $1,800 um was a deficit that was carried from the Whitam PAS project um that they overexpended it. So, this is them covering that from their their fund. Um
[snorts] the sewer department, this is our first year really with the sewer department budget. And um let's see what did she say here. So the stipens they stipens. So they're shifting Yeah. the stipens [snorts] >> from the expense line.
So it's still again within the sewer budget, but they're just shifting the funds. >> So if I understand you correctly, in total it's okay. It's >> in total it's okay. Correct. Yeah. They just shifted >> they vote the budget, the line items in
the budget. So wages, salaries. So they're they're just shifting it. >> Okay. So >> the the town basically votes town meeting votes the bottom line. >> Yeah. >> And then the line items up above the
line that the town does vote line by line. >> Got it. Y >> So we may likely see some shifts in the sewer budget. We may revote a sewer budget in the fall now that we're getting some more solid numbers. We may take a look at that and um do a revised budget. Okay.
>> In the fall. >> And that's it. If anybody has any questions. >> Okay. And a bit of an aside, betterments. My favorite topic. Do we actually get meaningful betterments in from 550 King Street or is he still not paying
his taxes? >> Um, we we have uh quarter three but not quarter 4, >> which was two. >> Okay. >> So, >> so are are we okay? I mean, we assumed a significant
betterment to come in for this year's budget, right? >> Correct. >> So, are we okay or are we >> Yeah, we're fine for FY27's budget because we would not have voted more than the balance. >> Okay. >> So, we're fine. >> Okay. >> We were very cautious for that.
>> Okay. >> So, >> but it's certainly important to collect those funds because >> going forward a big potentially a big issue. >> Correct. >> Yep. Okay. >> And we are earning interest. So every day he doesn't pay. Just
>> $115 a day. >> Okay. >> Nothing at all. >> Can you tell I've looked at that one? >> Well, and and then he just tries to up the tiff to offset the interest that he's having to pay. You know the game. >> I'm not going to comment on that.
>> I know. [laughter] >> That's on the the water project. I mean to get on what Fred was saying with that 600,000. I'm concerned that the project was cost more than what they anticipated.
I'm also concerned that they just had $600,000 available in their miscellaneous expense line item. >> And I can certainly reach out to her to get more information about it. I'm happy to do that and send it along to all of you. >> Right. >> They are definitely in control of that
budget. So, and how they closed. >> Okay. >> I mean, I don't spend a lot of time on the water budget, but I mean, seeing is $600,000 >> just to show up. Yeah. >> Just >> Oh, we can take it out of miscellaneous expenses. I I would question that next
year in their budget. So, >> all right. There any questions of Robin for any of these transfers? This is She's taking it easy on us. Like somebody said this was like four pages last year. >> Last year.
>> So what was different this year? >> Instead of four pages, it's one page. >> Uh we we really Kim and I really watched the budget and made sure to make sure we had enough. We went line by line with every department. Same thing we did this year. So
>> yeah. >> Okay. Any questions? Sanjay, you good? No, I'm good. >> Okay. Do I have a motion to accept the transfers? >> I move that we accept all the transfers listed on the finance director's sheet.
Are we doing the water, too, or >> everything? And the water department transfers. And >> they're all on They're all on here. >> I can't. This is too small for me to [laughter] >> They're all They're all on this. That's just >> This is much bigger print.
Um and move that we uh approve the wa water department transfers and the small uh sewer department transfer. >> So we have general fund transfers of 80,10435, [snorts] >> water department transfers of $61,800
and sewer department of $27,000. >> Correct. >> Second. Somebody want second. >> Second sign. >> All in favor? Hey, I >> I We're [clears throat] good. >> We're good. >> Thank you. >> I may depart. [laughter]
>> May run away. >> We don't have much more. Oh, before you go, um there was a possibility for reserve fund transfer for the fire department. >> We're good. >> My assumption is that we are fine with that since I don't see any requests here. >> That's correct.
>> Okay. >> How close was that budget? >> Um pull up the Excel sheet. I got it. >> I believe they're turning back $50,000 in total. >> Um 45,000 in wages were remaining
>> 5,000 in >> and 5600 in expenses. >> Mostly mostly in the wage line. >> Yeah. >> The 46 was w >> 45, excuse me, was wages. >> Was wages >> that they had left. >> Okay. >> Okay. >> Okay. Good.
Thank you. >> You're welcome. >> So for your benefit. >> Yes, please. >> This this is actually two years ago. So our budget for FY26. >> Yeah. >> So this was early 2025
that we did this. Fire department presented us with a budget that had an overtime line um that increased by over $200,000. and they were saying it because Noua hospital closed >> right >> that their runs would to Emerson would
would incur more overtime. Um we've pushed back to the fire department and agreed to move that money from their budget to our reserve fund and at the end of the year if they needed something >> we would make their budget whole and as
we just found out they didn't need anything. So >> great. >> That money that's in the reserve fund will fall to free cash. >> Okay. >> Okay. >> Thank you. >> You'll get to know the terms soon. Free cash is something you'll hear a lot. >> Free cash is not free.
>> Free cash is not free. [clears throat] As part of the um financial policy, we put in for this year that we would have a capital committee or capital
>> working group or whatever it is. >> Yeah. >> Um policy. So, it's going to incorporate two finance committee members, two select board members, the finance director, and the town administrator.
Correct. Okay. Um, so we're looking for two members. Generally, these things fall to the chair and vice chair. I guess they usually happen during the day. So, we wouldn't impose on you guys if that's
okay. If somebody really feels like they're want to be on those committees on the capital committee, we can certainly do that. But if not, we can just let Fred and I do it. >> Yeah. >> Is that okay? >> Yep. Absolutely. >> Thank you.
>> Um there's also it's not on the agenda, but there's also a tiff committee that's listed in the financial policy. We've never selected members again. It usually falls to the chair and vice chair. If that's okay, we can look for
Okay. Do I have a motion from TIFF committee and capital committee to be Fred or the chair and vice chair? Let's put it that way. >> Motion. >> So moved. >> I have a second. >> Second. >> Second. All in favor? >> I I
>> Okay. Um, another committee that we're on that I'm on is the Shaker Lane Building Committee. Um, I'll just give you a quick update on that we've been having.
We've when the last time probably town meeting was the last time we heard stuff about Shico Lane. So, we've selected a construction manager,
Gil Bane. Um they did the elementary school in Grten. Um so they've been meeting with Studio G,
which is the architect firm. Um right along um Studio G is right now doing the design work for the building. that has to be approved at our next meeting which
is on the 22nd of July and right after that it goes into the MSBA for approval because everything has to be approved by the MSBA and they have six weeks or so to respond back to us
uh for any questions that they have and then we have another six weeks to get them the answer or something. So this is a long process that'll going on. Um but once those approvals are gone and start the actual um construction design documents,
construction is slated to begin at the end of this school year. So about just about a year from now, early July, I'll have the subcontractors in to do site work and things like that.
um along the way like with this design that they're getting now there'll be another estimate that comes in um it's out probably out of the estimators right now. So we'll get an updated number we'll get another updated number at 20%
40% 60% design as they go along um probably in next spring when it gets to that point. So, we'll have an updated number. Again, this project just moves along, but you
know how municipal government works. It slow and MSBA slows things down even further, but we want their money, so we play by their rules. Okay, any questions on Shake? That's
kind of like nothing. And >> just one quick question. Any changes to the numbers that we discussed before? uh nothing until we get this next estimate. And so we'll know in a couple of weeks um when we see this when we see
the design that we're going to submit to the MSBA, we'll have a new estimate. As I've told the committee many times, what town meeting voted is what town meeting voted. This project will not be a dime more than that. We are not going back to town meeting. I'm not going to
ask the town for more money. So that's That was going to be my question. And if the number is different then >> and then we cut from the project. >> Got it. >> And Mark can talk to that. I mean, he dealt with that at the library. [laughter]
>> All right. We're moving right along. This going to be very quick. Oh. Um, this isn't on the agenda, but we're not going to be meeting um probably until probably September or so. by that time
we're going to have dues. So each year the Association of Town Finance Committees um sends us a bill, an invoice for our dues for our membership to that state committee. We don't have an invoice just
yet. It's generally $200. My suggestion would be to um vote to approve the invoice no greater than $300. That's okay with everyone.
I'll let Robin know that we approved the invoice. Do I have a motion for that? >> Sounds good to me. [laughter] >> Second move and second. All in favor? >> I
again we got to pay our dues to the state. So that's what they're looking for. Uh member updates. Anybody have anything they'd like to talk about? Any questions about the process or anything moving forward? What to expect as we go
forward in the budget season? We have two select board members here that one brand spanking new probably wants to hear about the project process themselves. So >> yeah, if you could do that, that would be helpful. >> Sure. >> Quick overview. >> Um I can speak to how we did it the past
couple of years. I know that there's been some changes banded about, but we can talk about uh what we do um in the policy financial policy which you should probably go to the
>> right >> treasures website. >> Yep. >> And there's a financial policy there that uh >> Yeah. I mean, I know when it came up earlier, I'm like, "Oh, yeah, the policy." It's kind of like what we go by when we are >> right >> doing this budget. Um
we have a timeline in in baked into that document just a generic timeline. So around September or so Robin will get I'll say pre preliminary budget for the
year based on her estimates uh where things are coming from. They'll send requests to the departments probably around that same time for their FY28 budgets. Wow. And probably expect those
back the end of October, first part of November or so. um internally once they get those back Robin and Jim Dugen the town administrator will meet
with the departments and Jim's mission and his uh job in all of this is to re present the finance committee and select board a balanced budget.
So the past couple of years that budget that preliminary budget that's come in from the departments has been three to4 million dollars or so underwater. His job is to get that down to zero.
Um generally comes to the two boards at the end of December first part of January. We'll get our budget books at that point in time. finance committee and last year the select board joined us um meet with the
different departments um the leazison meetings were each assigned uh departments that we would go sit down with um you'll be paired up with somebody of course we wouldn't just throw you out there Sanjay's this is his
third year so you're on your own [laughter] um we'll get those back so those those people meet with the departments. They're kind of like the um I won't say advocate for them, but they're the person that's more knowledgeable than
the rest of the group about what those budgets would say. Um past couple of years, we've had joint meetings with the select board to talk about the budgets. We have the departments in. Um I think there was
like three consecutive Wednesday nights we had departments in. They come in, they just talk about their budgets. The liaison that met with them should be the one that speaks up and asks a lot of the
questions of them because they're more informed than everybody else or they can answer some questions from the board as it comes up. Um we do that for all the the smaller departments. Then we have what's called
super Saturday. Um that's where police, fire, highway, schools generally come in, save the best for last. They talk about their budgets and then we that usually lasts the
morning and the afternoon. We go through capital. We try and finalize as much of the budget that day as we can. So, it's a long day. I think we came out of there last year with a balanced budget. What we have to remember since Jim is
presenting us a balanced budget that if you hear something in those department meetings and some and you think, well, that's something that should be added. Well, now we need to cut something because we have a balanced budget. So, it's always that fine line. If you want
something in there, >> you need to come up with a cut. Um like I said, so generally by that Saturday we're probably 95% or so done with the budgets. There's
always new information that comes in. Stra goes through through February and March. Um when it comes time to send the budget book to the printer, we generally have a couple of meetings just before that just to take in account all the new
information that's come in. So some of these things like last year was a big to do with health insurance. >> So we had to find cuts. >> Yep. >> And a lot of that [clears throat] falls on Robin and Jim to say, "Okay, we know
we have this. we know we need to cut something, they do a lot of the heavy lifting for us, which is good. Um, but we don't just take what they give us, >> right? You have the discussions between us and that's basically it. Goes off to
the printers and then it goes to town meeting and then we start the cycle all over again. Um this year like I mentioned um at last year's policy discussions or actually in this spring's policy
discussions at the select board um select board representatives wanted a capital committee to be established. So on that super Saturday in that afternoon session we generally talk
about capital. So, we get the recommendations from the town administrator and the finance director and we discuss it and come up with what we think is a capital plan. That stuff will be vetted by this
committee beforehand. Now, >> um Jim is on that committee. Jim and Robin will be there. There's two finance committee, two select board, Jim and Robin. and I think maybe a school committee
member too. Um so that would be the um group that puts together the proposal for the two boards to look at and maybe we can speed up the process and spend a little bit more time
discussing capital than just >> Saturday afternoon. Yeah, we can have a a meeting because the intent is to get this done. I'm kind of like while the departments are doing their budgets. So in the
September October time frame or so. So we'll see how that shakes out. That's something new for this year. We'll try that and make sure it's going to work. I think it will. Um it's not only looking at this year. The departments give us a 10-year
>> right >> capital plan. >> Y >> we kind of focus on the next, you know, three years or so. really concentrating on the current year, >> but this will give us a good feel, a better discussion. If we feel that
something's on that 10-year plan that shouldn't be there, we have no intention of doing it, we just drop it off. Right now, they just kind of hang and they go from year to year. >> So, I think it'll make the process a little better.
>> That good for you, Kyle? That a good explanation? >> Great. >> Okay. Yeah, >> ask for a better one. >> That's helpful. Thank you. So, as an example, this transfer for water that came from miscellaneous to capital >> that would have been picked up maybe in this working
>> when we talk about capital, we're talking about mainly the town. So, okay, water department >> is an enterprise fund of the town, >> but they have a separate water commission. Light department is totally separate from the town. Right.
>> They have a separate light commission. >> Mhm. >> Sewer department has the water commissioners as sewer commissioners. >> Um but those two are still town departments. >> Got it. >> So whereas the the commissioners
can make the decisions for that department technically, it still needs to come to the town for final approval. That's why their budgets go to town meeting to get approved. whereas the light department's budget doesn't because they're separate from them meeting too.
But yes, we have we do get a presentation from the general manager of the water department and store department and that's something that'll certainly will stick in my head when he sits in front of us next year >> as to why he had 600,000. It's a good
thing they had it. >> It's a lot of miscellaneous though. Yes, it's a lot of miscellaneous money to just keep around. >> Anything else from anybody? >> Public comment. Nothing. Um, we have minutes. Three minutes I
sent around. March 23rd, May 5th was the pre-town meeting meeting and June 8th. >> June 8th. Anybody have any >> anybody have any comments or questions? >> No.
>> I'll move that uh we accept minutes from June 8th 26 May 5th 26th March 23rd 26 as presented. >> Have a second. >> A second. >> Second by Sanjay. Moved by Fred. All in
favor? >> I >> I. It's good. next meeting um like I said probably early September maybe for that budget um
forecast that Robin will present the committees. >> Um other than that, unless there's something strange that pops up over the next month or so, we'll see you in September as the sign says. >> Sounds good.
>> Okay. [laughter] And every once in a while, we have a reserve fund which is basically a cushion for things that are unforeseen that pop up.
And every once in a while, maybe every two or three years, something crazy will happen with a building or something crazy will happen with a vehicle and they will need reserve fund transfer to take care of things and that'll be a,
you know, sort of an emergency meeting, but that's very rare that we've we have to do that. But that's really the only other thing that >> Yeah, we kind of let let them handle things in their budgets first, right? You know, use the money that's been appropriated first unless it's truly
truly truly something that's unforeseen emergency. We've had them pop up over the years. >> Okay. Generally, as you you probably read in the finance committee handbook, it's for emergencies that reserve. That's all that's there. the fire
department, we kind of took the money out of their budget, said we'd hold it for them, >> right? >> That's why that was there. >> Yep. >> Because as you'll find out, once money gets into a budget, it's very hard to take it out of the budget. >> Got it. >> Y
>> we didn't want it going in there to begin with. >> Okay. Does anybody have anything else? Nice and quick meeting. >> I promised Rick it would be under an hour. [laughter] Motion to adjurnn. >> Have a motion. Do I have a second? >> Second.
>> All in favor? >> I >> I thank you. >> Thank you.