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HomeMy WebLinkAboutFinance Comm. 11/21/2024Town of Mansfield 6Park Row, Mansfield, Massacbnsells02048 U`F ICE Finance Committee r R t g: 2b Meetine Minutes November 21. 2024 .. -. i'Ir,l �.��` c`TT�(S Present: Ms. Sara Walsh, Chair, Mr. Scott Feely, Vice Chair; Ms. Gret2,Thursio''A1 Cretk; Mr. Jack Cooney, and Mr. Ryan Martin were present in meeting room 3 A/B at Town Hall. Also Present: Matthew Violette, Assistant Town Manager/Finance Director and Mike Ahern, Pub lic Buildings Not Present: Mr. Michael Flaherty and Ms. Melinda Tarsi-Goldfien Opening Meeting • Open Meeting Ms. Sara Walsh called the Finance Committee meeting to order at 7:0413M. Approval of Minutes September 19, 2024 Motion: To approve the September 19, 2024 meeting minutes. (Feely/Thurston) Passes 5:0 Financial Updates • FY 25 Update Mr. Violette began his Fiscal Year 2025 update stating that all is going as expected for the General Fund. However, the sewer enterprise revenues are not hitting their mark and the Select Board has approved a 4% increase in sewer rates. It was necessary to do this as the Department of Revenue would not approve the tax rate because the State looks at what the actual revenues are and what our estimated receipts are and they look at the percentage change. This change is 6% but the approved increase was only 2% and this difference shows that the enterprise fund may not be working properly and may not support itself. Mr. Violette then stated that the other enterprise funds are all on track. He noted that the enterprise expenses are tracking as expected, he noted that we are a third of the way through the year and many of the accounts are 50% expended however many expenses are front loaded at the start of the year. Mr. Violette then stated that the General Fund local receipt revenues and they are at 27% collection. He stated that the Ambulance receipts are now at 30% which puts that back on track compared to last month. He then stated that there is nothing remarkable to note for the General Fund expenses except that he will be looking for Finance Committee transfers to cover the increase for the retiree health insurance and the fire union contract. • FY26 Scenarios and CIP Planning Mr. Violette began the discussion with speaking about the forecast. Ms. Walsh that this was discussed at the Budget Subcommittee meeting. He stated that the revenue estimate and what made up the number that is fairly predictable and flat, and the only estimate in that number is the new growth. He added the new growth is typically $900,000 to $1,000,000 so the number is conservative. Mr. Violette stated that the State Aid number should possibly be more conservative than the 1.5%, he also stated that local receipts he estimated at 3.5% increase and it may need be more conservative as he continues to see Fiscal Year 2025 progress. Mr. Violette then stated that the only new positions that are in the budget are for an additional police officer and a firefighter which are estimated at $300,000 for salary, benefits and gear. Mr. Martin commented that there may be savings in forced overtime and the increase would then be less than $300,000. He stated the Town's budget for Fiscal Year 2026 is 5.1 percent over Fiscal Year 2025. He stated that the school estimates are not finalized and Ms. Walsh noted that the School's budget presentation will be on December V. Mr. Violette and the Committee discussed short-term and long-term borrowing scenarios and the pros and cons to each. • Current Financial Score Card Update Mr. Violette explained that the financial score card is a metric that shows if the Town is in line with the established financial policies. He then went through the financial policies and if the Town met the goals or not. Mr. Violette stated that the Water Enterprise Fund may have a high debt that is outside the recommended amount due to PFAS projects and Mr. Martin asked if that would have a negative effect on the Town's bond rating and Mr. Violette responded that in the meetings with Bond Counsel they are looking at the undesignated fund balance in the General Fund, contributions to OPEB and whether Enterprise Funds are self- supporting and does not think it will negatively impact the bond rating. He felt that PFAS would be an extenuating circumstance that has a valid explanation. • Discussion with Department of Public Works Operations Manager Mike Ahern Ms. Walsh invited Mike Ahern to come forward and talk about the projects going on in Town. Mr. Ahern gave an overview of his department and an update on the projects that are being worked on and those that have recently been completed. Mr. Ahern also discussed the dramatic rise to building costs and stated that the Public Safety and the DPW project completed in 2020 was $35 million and today that cost would be $90 million. Mr. Ahern also reviewed some of the capital projects and the members of the Finance Committee asked some questions. Questions from the Community • Questions from the community There were no questions from the community. Committee Business • Policy Recommendation Final Review Ms. Walsh stated she would redistribute the policies for the members to review and send in any feedback. • Survey Ms. Walsh stated that Ms. Tarsi-Goldfien was not present so this item was skipped. • Liaison/Committee Update Mr. Feely stated that CIP was approved but the Town will not be going to go forward with all the projects. He also noted that there may be a virtual meeting to talk about which ones will move forward. • Member Comments Mr. Cooney asked about the School projects and when will the earliest those will be brought to CIP and Mr. Feely responded that maybe 2027 and the projects will likely be debt exclusion projects like public safety. Ms. Walsh stated that December 11th with be a Budget Subcommittee meeting and December 19th is a Tri-Board meeting. She stated that she is also trying to have a short Finance Committee meeting to discuss the Town Meeting articles that evening as well. • Adjourn Motion: To adjourn the Finance Committee meeting of November 21, 2024 at 9:03PM. (Feely/Cooney) Pass s ':0 Signature Date Minutes prepared by Carrie Champagne