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HomeMy WebLinkAboutFinance Comm. 11/18/2021Finance Committee Meeting Minutes f?ErEIVED November 18, 2021 "' 's ''AA'" ; S OFFICE Present: Ms. Sara Walsh, Chairman; Mr. Brian Eagle, Vice -Chairman; arz.zslga P&lym; 3S Walter Wilk; Mr. Michael DeSantis; Mr. Michael Flaherty; and Mr. Jac Cocom rle ,k 4...y�._r LD Also Present: Mr. Kevin Dumas, Town Manager and Mr. Barry LaCasse, Assistant Town ` S Manager and Finance Director Not Present: None 1. Call the Finance Committee meeting to order and review the agenda Chairman Walsh called the meeting to order at 7:01 p.m. 2. Specific Agenda items- See Minutes summary below • Update from Barry and Kevin on some of our larger spends and new sources of revenue: Well-water/PFAS treatment, Fire station, and marijuana facilities • Review of Financial Reports • Discussion points of Budget Process -Special Education Fund Policy - Calendar Review - Level Services Budget Assumptions - Role of Budget Subcommittee - OPEB Funding Position for Budget Process • Review and action plan on goals 3. items not known within 48 hours - None 4. Audience Q&A - Nnno S. Adjourn Motion: To adjourn the Finance Committee meeting of November 18 at 8:22 p.m. (Feely/Cooney) Pass 6:1 John Cooney Finance Committee Clerk Signature - q�l_ -f o r Min rtes Clerk Signature Minutes Prepared by Jack Cooney FinCom 11/18 mtq summary: 12/29/21 Date kII rIf .-A Date FinCom was updated on major outlays (projects) and reviewed Mansfield's monthly financials. We also discussed the budget process, role of the Budget Subcommittee, special accounts (School Special Ed and Other -Post Employment Benefits/OPEB) as they relate to long-term planning efforts. And finally, FinCom walked through our revised FY 22 goals. FinCom received an update and discussed large-scale projects and their ongoing financial implications. • Town continues to move forward on the Well Water/PFAS treatment and upgrade efforts. The financials remain on track and there may be opportunities for offsets from recently enacted federal infrastructure funding. We cannot wait or slow down our current efforts or we will risk increasing costs, but if we receive federal support, it'll be used to reduce the amounts borrowed, thus reducing the impact on taxpayers. • The sale of the Main Street Fire Station has been slowed by soil testing but both sides continue to move forward with expectation the sale will be completed by early 2022. • The retail marijuana shop opened and appears to be doing well. Mansfield receives 3% of gross revenue on a quarterly basis with ReLeaf paying the state and the state redirecting our portion back to us; we haven't seen our first quarterly payment yet. Community Gardens (grow facility) construction has been delayed but will likely begin in 2022. Mansfield will not be able to build tax revenue projections into our budgets until FY 23 (ReLeaf) and FY 24 (Community Gardens) because of state budget rules. FinCom walked through the Town's monthly financial reports with a focus on unusual spending/revenue items or worrying trends. The Asst. Town Manager only noted our return on investments has been tracking lower than we'd like, something the Town is watching and may have to address in the near term. He did not note any others that stood out, reminding FinCom that some expenses (such as insurance) are paid up front, others are paid as the year goes by, thus the differing percentages. FinCom requested additional information to show how the financials compare to a similar point in the previous year and will work with the Asst. Town Manager to see how that information can be incorporated. FinCom next discussed the budget, including timeline (receiving a still in the works budget calendar), charge of the Budget Subcommittee and 2 of the special accounts included in the budget. The budget calendar was shared with FinCom showing how this 10 -month process plays out; once finalized, the calendar will be published online for residents. Rather than present to each group and the Budget Subcommittee, Town/School Department heads will present to the combined groups in February to review budget requests and long-term plans. FinCom was unanimous in requesting that all Departments present, not just larger ones. In reviewing the charge (role) of the Budget Subcommittee, FinCom requested a slight change to the description. Rather than having the Chairs of FinCom. School and Select Board appoint their respective members, FinCom suggested leaving it up to each group to make their own determination. FinCom also discussed the role of the representatives and that they are tasked with taking the respective recommendations and requests from their Committees into the Subcommittee meetings, not just their own opinions. Members stated this was already occurring and there was no need to add language to the Subcommittees charge to reflect it. FinCom moved on to specific issues within this year's budget. There was clarification that in materials referencing "level services", this was meant to only apply to the Town side of the budget. We do not have enough information yet to know whether the School's current budget request will be for level services. FinCom reminded viewers level services DOES NOT mean no increase, it just means the actual services supplied are not increased/decreased. As costs almost always go, expenses will naturally increase each year. At Fall Town Meeting, residents approved starting contributions to a Special Education Stabilization Account to be used to offset unexpected special education expenses that hit the schools. FinCom reviewed a draft policy — adopted from one in place for another town - for this account, including a recommended account balance floor ($100,000) and ceiling ($500,000). In earlier discussions with School Board Members, FinCom learned they were comfortable with the floor/ceiling but needed to better understand triggers that would allow spending from the account. FinCom did not take a vote on the policy, but it will continue to review as part of our ongoing efforts. The Committee also discussed spending plans for the OPEB account. The Asst. Town Manager presented the Administration's current plan of (1) using funds in the Health Care Stabilization account as budget offsets spread over 13 years (2) continuing to catch up on the unfunded portion of our pension liability, with expected catch-up by state mandated 2035 (3) then more aggressively addressing OPEB liabilities with a goal of catching up by 2045. The Asst. Town Manager stated there is no legal obligation to fully fund OPEB by any specific time frame and the only impact by not continuing to follow our funding policies was potential negative reaction to our bond ratings. The Asst Town Manager will share materials showing the financials behind this strategy and FinCom will evaluate whether additional information, including running other financial scenarios, is warranted. FinCom reviewed and accepted our updated goals after an earlier draft had been reviewed by Town Council at the request of the Select Board Chair. The goals are consistent with FinCom's role of serving as a financial watchdog, providing input and information on the budget and financial matters to residents and serving as a financial advisory to the Town and Schools. FinCom will next meet in January as the heavy work connected with the budget begins.