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HomeMy WebLinkAboutFinance Comm. 07/25/2024Town of Mansfield 6 Pak Rom, Mansfield, Massachusetts 02048 Finance Committee Tarsk Goldfien, and Mr. Michael Flaherty were present in meeting room 3 A/B at Town Hall. Not Present: Mr. Jack Cooney Opening Meeting - { 1. Open Meeting - r Ms. Sara Walsh called the Finance Committee meeting to order at 7:02PM. 2. Approval of June 20, 2024 meeting minutes.CD Motion: To approve the June 20, 2024 meeting minutes. (Feely/Cooney) Passes jy i`+i L7 CJ Financial Updates` 3. Budget Transfer Memo from Assistant Town Manager/Finance Director 7/8/24 D scmlo Ms. Walsh stated that this item will be deferred until the next meeting, given the Assistant tic wn Manager is not in attendance as he is on vacation. She stated that any questions that there are about this point should be directed to him upon his return. 4. 2024 Year End Update Ms. Walsh stated that the Fiscal Year 2024 has officially ended and that the committee had not received any notices from the Town Manager about major items that had come up. She stated that this item will also be deferred to the next meeting, in which the Town Manager's Office can report back on matters regarding the end of FY2024. 5. 2026 Budget Planning Process Update and Schedule Ms. Walsh stated that there had been two Budget Subcommittee meetings since this committee met last, and that there are two meetings scheduled in August. She stated that they are also working on planning a Tri-Board meeting in September. She continued and described the work that the Budget Subcommittee is doing, which entails reviewing major expenses, such as the trash/recycling mechanisms, as well as a comparison of employee benefits for Mansfield and other towns, which revealed that we do not have any outliers in our benefits plan. They are also working to establish a Benefits and Insurance subcommittee, and members of the Finance Committee will likely be asked to be on that committee. The benefits compose of roughly twenty percent of our spending so it will be helpful to have a committee looking into and review that aspect of the town's finances. They are also working on a line by line review of the multi -year plan, and got through the majority of the major expenses and will be moving on to revenue at their next meeting. She said that the Assistant Town Manager and the Chair of the School Committee are working on recommended parameters for the different departments to utilize as they are looking to implement scenario -based trainings. There also may be three different versions of the budget, with the goal being that the December/January budget will be closer to the final budget than in the past. This will be beneficial in light of any potential discussions about an override, as we will have an idea of what the state's budget will be by that point. Mr. Feely noted that the failed override in Norton could be a valuable learning opportunity when analyzing what sort of cuts would need to be made, and what changes will result from not obtaining an override, if one is necessary. Mr. Feely asked if there has been any data at the state level from a Finance Committee perspective on overrides and where they are happening. Ms. Tarsi-Goldfien responded that the Division of Local Services has collected data on when overrides go up, whether or not they pass, and the rationale behind them, but due to the large number of overrides this year, they were going to try and wait for the last round of Town Meetings to commence before pushing the data out. They have data from past years, but given that this year was so abnormal they do not have data for this year posted yet. She continued on to say that there may be a lot of information coming in the next couple of months for finance committees across the state based on the lack of progression with the Municipal Empowerment Act. Ms. Thurston asked if the Select Board had explored any opportunity to produce revenue via the Xfinity Center, as she had heard someone mention that they were attempting to explore potential options for the future. Mr. Feely stated that it seems in the past that we have been unable to do so given the property ownership. Questions from the Community 6. Questions from the community There were no questions. Committee Business 7. Policy Review and Discussion Ms. Walsh stated that the committee had been asked to review the financial policies that are available on the town's website and see if any changes need to be made, or if anything is missing. The first policy that the board reviewed is for the Stabilization Fund and the Capital Stabilization Fund, as the two go together. Ms. Tarsi-Goldfien asked if there is wording anywhere that allows the review of the definition of a capital expenditure. Mr. Feely stated that there is no universal standard and towns can flex the definition as needed. Ms. Walsh stated that it could be helpful to define the definition further to make it easier to interpret. Mr. Feely stated that he would prefer to have a meeting prior to doing so to ensure that everyone is satisfied with our current definition. Ms. Walsh stated that she is unsure if the town is effectively following the Capital Stabilization Fund, as we are not putting any money in to it. Mr. Feely stated that the idea behind that aspect of the policy is to encourage additional funds to be allocated for that fund, assuming that the town has the ability to do so, which has not been the case for many years, Ms. Walsh stated that she had a question that is applicable to both the Stabilization Fund and the Capital Stabilization Fund, in Section 5B. She asked if the section was saying that these funds combined cannot amount to more than ten percent. Mr. Feely confirmed that the ceiling of ten percent collectively between both funds is accurate, and stated that it is unlikely that the town will approach or hit that ceiling. There were no questions on the Free Cash policy. Ms. Thurston suggested that in every policy be updated to say Select Board as opposed to Board of Selectmen. Ms. Walsh asked if the General Fund Reserve Fund needs to be revised and Mr. Feely stated that it could be beneficial to consult the Assistant Town Manager for clarification. Ms. Walsh asked about the usage of the General Fund Reserve Fund in "emergency" situations. Ms. Tarsi-Goldfien suggested that the language is changed to reflect the language in Massachusetts General Law that states "extraordinary and unforeseen" situations. Ms. Walsh asked what prompted the state to implement a deficit spend rule for snow and ice. Mr. Feely stated that it is because it is unpredictable and if towns under -budget, they are unable to plow or utilize any resources towards managing the snow and ice. Ms. Thurston asked if snow and ice should be specifically mentioned in this policy. Mr. Feely stated that due to the way state law is structured it is not necessary to do so, but Ms. Walsh stated that it could be beneficial to ensure the policy is reflective of the way we are utilizing it. The last policy the committee reviewed was the Long -Term Debt Policy. Ms. Tarsi-Goldfien stated that she noted some language that needs to be updated to reflect the Department of Revenue's language. Ms. Tarsi- Goldfien stated that she would circulate the supporting documents for the updated language to everyone on the committee to review. Ms. Thurston asked about number two in the Long -Term Debt Policy, and what it means specifically. Mr. Feely stated that it is saying that if a project does not receive funding, it must be re -voted upon in order to complete the project. Ms. Walsh asked if there were any policies that were missing or needed to be added. Mr. Feely mentioned the discussed agreement between the town and the schools stating who will be paying for what. Ms. Walsh stated that they are working on such agreement. Mr. Flaherty asked if they should do anything with OPEB, to which Mr. Feely responded no. Ms. Tarsi-Goldfien asked if it would be beneficial to consult a rating agency to see if they have any examples of best practices. Mr. Feely suggested that they should run it by the Town Manager and the Assistant Town Manager. Ms. Walsh stated that she would summarize the committee's discussion and suggested changes and will consult with the necessary parties to answer the respective questions. 8. Select Board Visit 9/18 Ms. Walsh stated that the Select Board has invited every board and committee to come and speak to the Board on September 181n 9. Website Discussion Ms. Walsh stated that she received a suggestion that it could be beneficial to take a look at the Finance Committee's website and add useful key information such as definitions for various financial terms. Ms. Tarsi-Goldfien offered to work on any changes and updates that the website could need based on the websites that other communities have. 10. Survey Discussion Ms. Tarsi-Goldfien stated that the School and Town Needs Subcommittee will be meeting in August and that after that meeting she will report back. Ms. Walsh asked when the best time for a survey would be. Ms. Tarsi-Goldfien stated that December or January could be the most beneficial. 11. August/September Meeting Schedule Ms. Walsh stated that September will be easier because everyone will be back in the flow of things, and she has the September meeting down for September 19tn. The third Thursday in August, Ms. Walsh will be in Disney, so she would need to join virtually or someone else would need to lead the meeting in her place. Alternatively, they could look at other dates, such as August 22nd or August 29tn. Everyone agreed that the 291h would work, except for Mr. Flaherty, who stated his wife's birthday is that day and he is unsure if that would pose a scheduling conflict. 12. Liaison/Committee Updates Ms. Thurston stated that the Downtown Committee meeting was pushed back to August 12th. Mr. Feely stated that the School Needs Committee has had a meeting that was just barely at quorum and that they are having another meeting at the end of August to try and determine what material will be shared with the public. 13. Member Comments There were no member comments. 14. Adjourn Moti n: o ad'ourn nce Committee meeting of July 25th, 2024 at 7:57PM. (Feely/Thurston) Passes: 5:0 2&qZZ N S(g rlatu'rd Date Minutes prepared by Michelle Henderson