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HomeMy WebLinkAboutFinance Comm. 03/20/2025Town of Mansfield 6 Park Row, Mansfield,, Massachusetts 02048 RECEIVE[ Finance Committee 2025 APR 23 P Present: Ms. Sara Walsh, Chair; Mr. Scott Feely, Vice Chair; Mr. Ryan Martin, i ler[t M,S:;¢LTI��gston; Ms. Melinda Tarsi-Goldfien and Mr. Jack Cooney were present in the Meeting Room 3 A/B at Town Hall. Mr. Matthew Violette, Assistant Town Manager/Finance Director and Mr. Steve Schoonveld, School Committee Chair were also present. Not Present: Mr. Michael Flaherty Opening Meeting 1. Open Meeting Ms. Walsh called the Finance Committee meeting to order at 7:03PM. She then read the broadcast message stating that the meeting was being broadcast live and recorded. 2. Approval of Minutes Motion: To approve the November 21, 2024; January 16, 2025; February 13, 2025 and February 25, 2025 Finance Committee Meeting Minutes. (Feely/Thurston) Passes 6:0 Financial Updates 3. FY25 Update Mr. Violette provided a brief update on Fiscal Year 2025 stating that numbers are tracking as expected. He stated that the Snow and Ice budget is $115,000 over what was budgeted and he will be requesting a Finance Committee Transfer to cover that expense once the snow season ends to make sure the amount does not increase more. Ms. Walsh asked how much money was in the Finance Committee Reserves and Mr. Violette responded it was about $800,000 (at the end of the meeting he updated the Committee that the balance was $900,000). The other transfer requests that will be coming closer to June are for the Fire Department and retiree health insurance. Mr. Violette then stated that General Fund Local receipts are 67% collected and this is tighter than previous years and he stated that interest income has been going down and may not hit its budgeted target. He then stated that Enterprise funds are tracking well and the one he is watching closely is the Sewer Enterprise, but he believes that it should hit its revenue targets. Mr. Violette stated that at the last Special Town Meeting the Town approved the Albertini PFAS treatment facility for $24 million. He stated that this brings a lot of debt on and they have been zero percent interest and hoping for SRF funding for this as well but noted that it will affect the water rates. Mr. Violette noted that even if they do not get the zero percent financing if they wait to do the project the expense of the project could increase and Mr. Feely noted that it is better to pay the lower interest rate than having the entire project having a cost increase that is more than the interest rate. Mr. Martin asked if the Town was still selling water to the City of Attleboro and Mr. Violette answered that it has stopped but it was about $200,000 and this amount will not be factored in when doing projections for rate setting. Ms. Walsh asked for the budget verses actual reports and for the April meeting and can we discuss the debt sheet projects. Ms. Tarsi asked what the reserve fund balance is and Mr. Violette responded $800,000. 4. FY26 Update Mr. Violette stated that he sent several documents out and wanted to summarize where they are in the Fiscal Year 2026 budget. He stated that things are finally becoming finalized. He provided a balance budget which are Articles 1 and 2 on the Annual Town Meeting Warrant and it does not include an override. He explained that health insurance is the biggest driver and he then gave examples of items that will be cut should an override not pass. Mr. Martin asked how many full-time employees would be cut and Mr. Violette responded that it is three and a half Town positions regardless of the override and five positions that will be cut if the override fails. Ms. Thurston asked if it has been decided to add the solid waste fee into the override or not. Mr. Violette responded that it has been decided to include the fee into the override amount but if the override fails it will remain as a quarterly fee. Mr. Feely commented that this is not fair to the Commercial and Industrial tax payers because they have to pay for trash twice. Mr. Violette then stated that Article 3 of the Annual Town Meeting Warrant is for the override of $2.8 million. Mr. Violette then discussed with the Committee the projects for Fiscal Year 2027. S. Federal Funding Concerns Ms. Walsh asked Mr. Violette if there were any funding concerns due to the new Federal changes. Mr. Violette stated that there are not any concerns right now. He stated he was a conference with the Department of Revenue and if federal reductions impact the State and then it could affect the Town, he further noted that most of the grants on the Federal side are for the Schools. 6. Spring Schedule and Materials Discussion Mr. Violette stated that the dates for the Public forums are finalized. They will be on April 211 at the COA at 10:30AM. There will be evening sessions at Mansfield High School on April 911 and 1011 at 7:OOPM and then Saturday, April 12'h at the High School at 1:00PM. He noted that Annual Town Meeting is April 3011 at the High School at 7:OO13M and the Town Election is May 13tn 7. Discussion with School Committee Member(s) a. FY26 Budget Detail Update Ms. Walsh invited Mr. Steve Schoonveld to come forward. Mr. Schoonveld commented that these presentations are not Mr. Violette's presentation they are the School Committee and Select Board presentations. He stated that Federal Grants through the State total about $1.5 million of the Schools budget. He then stated that the budget reductions of $1 million is comprised of 12-17 positions which will slightly increase to class sizes at the elementary grades. He then stated that programs that are offered at the school that are outside the mission of the school have to pay for themselves. He stated a comparison to this on the Town side would be the Parking Enterprise account and that it has to pay for itself. Ms. Walsh asked if they have looked at what the true cost of benefits is and charge that amount back to the revolving accounts to see if there needs to be increases to the fees. He stated that they are and noted that the Champs program does well and could put health insurance costs into those accounts however the revolver for the bus does not take in fees to cover the full cost. He then commented that if the override does not pass not much changes as the cuts are enrollment driven and 3-4 positions would remain if the override passes. b. Financial Questions and Discussion Regarding Moving Roland Green and Robinson Elementary and Closing Little Hornets Mr, Feely then asked about closing the Roland Green Pre -School and moving it into the Little Hornets space at the Robinson School and he stated that this changes the dynamic in the Town and School Needs Assessment Committee. Mr. Schoonveld responded that there are capacity issues at Roland Green and for every student there is a peer model student added and they have to prepare for additions throughout the year that are added when a special needs child turns three and qualifies for services. Ms. Walsh asked if there were financials to look at to see the cost of moving Roland Green compared to what the Little Hornets program cost. Mr. Schoonveld stated that initially it was discussed to add on to the Robinson School to make room for the pre-school program and the cost was approximately $29 million and this was identified as a top priority for the Schools in the Town and School Needs Assessment Committee meeting, but the new build is not necessary. Ms. Walsh asked Mr. Schoonveld what the cost would be to move the program and outfit the classrooms and Mr. Schoonveld did not have a number but believes it would be around $50,000, Mr. Martin commented that the override amount could potentially be reduced. The cost savings of the Little Hornets is a savings to the Town in benefits. Mr. Schoonveld then commented that historically the Schools budget has come in at three percent increase on average over the last twelve years. Mr. Cooney asked if the Little Hornets program ending was a decision of the Administration or the School Committee and Mr. Schoonveld responded it was an Administrative decision wrapped into the budget. Ms. Thurston then asked what would be done with Roland Green and Mr. Schoonveld stated that it would be turned back over to the Town. Mr. Violette stated that it would just be speculation but the Town would probably sell the property to have it developed like the North Main Street Fire Station. Mr. Martin brought up cost concerns as it was going to cost lots of money to have the old police station torn down and Mr. Feely noted that there is probably lead paint and other issues with Roland Green and Mr. Violette stated that there defiantly could be environmental concerns that the Town has to incur. Ms. Walsh asked for confirmation that on Tuesday many of the questions being asked would be answered at the School Committee's meeting and Mr. Schoonveld replied yes. 8. Discussion and Consideration on FY26 Budget for Town and School Ms. Walsh stated that this vote would be moved to the March 26th Tri-Board Meeting because they do not have more complete information from the Schools. Questions from the Community 9. Health Benefit Options, Email Question from Community Member Ms. Walsh stated that she received an email from Ms. Kathy Betts of 250 Otis Street. In her email she asked about the Town using the health insurance offered through the States group insurance plan (GIC) that has a large membership. Mr. Violette stated that the high deductible plan is an additional offering and no one is forced to go to it. He stated that the Town is contributing to an HAS to offset the high deductible and it will be a savings to the employees and the Town in premiums if employees go with the plan. He stated that the GIC insurance is part of our discussion but it is not a move that the Town is going to make now. He added that back in 2012/2013 it was more advantages for communities to go with that plan but there is not as much savings today, but they are looking at many options to move through this to reduce insurance costs. 10. Questions from the community Greg Penesis of 12 Shannon Lane came forward and stated he was currently the Town Moderator. Mr. Penesis commented that bond rating is important and Mansfield puts a bond rating report on their site, He stated that Mansfield has an AA plus rating which is a high. He stated that the report is great and goes over what would lower the rating and what could increase the rating. He stated that the schools are the best here and there is a fiscally responsible government. He asked if the PFAS Loan Authorization approved at last Town Meeting would be enough to lower the Town's bond rating. Mr. Violette responded that the PFAS project debt will be absorbed by the Water Enterprise Fund and when you look at the percentage of debt in that fund it is on the high side but he does not expect any problems and noted that the Town looks at its water rates every year and you need to have some amount of debt. Ms. Tarsi and Mr. Feely further commented and explained why some debt is important. Committee Business 11. Survey Ms. Tarsi-Goldfien stated that she circulated the word version of the survey to the Committee members as she made some changes to the questions. Ms. Walsh asked when did the Committee decide that the survey would be launched. Ms. Walsh asked for members to send any changes by the end of the week. 12. Policy Update Ms. Walsh stated at the last meeting there are comments from the Town lawyer but now the Select Board is looking to possibly change law firms so she wanted to pause this until the new attorney could provide feedback. 13. Liaison/Committee Updates Mr. Feely stated that the CIP Committee met and gave an update. 14. Member Comments Mr. Feely commented that he wanted to reiterate that the level of knowledge is almost zero now that he has spent some time at the Council on Aging talking with residents. Ms. Walsh then stated that the School Committee is meeting March 25th for their budget presentation, March 26Ih will be a Tri-Board meeting at Public Safety and then April 2nd is the Select Board which will have the presentation on the Town's budget. 15. Adjourn Motion: To adjourn the Finance Committee meeting of March 20 2025 at 8:47PM. (Feely/Cooney) Passes 5:0 (3 Sign e Minutes prepared by Carrie Champagne y(t #Z s Date