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HomeMy WebLinkAboutFinance Comm 04/26/2018i-inance committee meeting minutes April 26, 2018 RECEIVED tttt}� �� Present: Mr. Walter Wilk, Chairman; Mr: Scott Feely, Vice Chairman; Mr. BTY�i'Eag1KS OFFICE e,LE�terk; Ms. Kathleen Aguiar; Mr. Yogen Chemburker; and Mr. Michael DeSantis lon FEB -b P S` 08 Not Present: Mr. Michael O'Brian Also Present: Mr. John Stanbrook, Finance Director and Town Accountant and NN, d� es Clerk 1. Call the Finance Committee meeting to order and review the agenda Chairman Wilk called the meeting to order at 7:02 pm. 2. Approve prior Finance Committee minutes Motion: To approve March 22, 2018 Finance Committee minutes (Feely/Aguiar) Passes 5:0 3. Presentation and discussion with sponsors of Warrant Article 45 Chairman Wilk asked Mr. Barry Cioe (12 Deer Path Circle) and Mr. Jack Cooney (425 Branch Street) to present information about Warrant Article 45. Mr. Cioe stated that based on average Mansfield alone uses and discards 20,000 daily with an average life of 15 minutes and 90-95% are not recycled. These bags contribute to the Town costs in multiple ways and they would like the Finance Committee's support on Article 45. Mr. Eagle asked about town savings and projections for costs to businesses. Mr. Cioe states that part of the costs to the town is because plastic bags shut down recycling stations and get trapped in storm drains but it is difficult to quantify. He continued saying that article encourages the use of reusable bags and does not add any fees for paper bags. Organizations like Keep Mansfield Beautiful may be providing free reusable bags to the Food Pantry and Council on Aging. Mr. DeSantis asks about costs to retailers and Mr. Cioe responds that paper bags cost more than plastic to the retailer. They have met with Chamber of Commerce and took neutral stance. Mr. DeSantis asks if any other surrounding towns had adopted this yet and the response was no but there are 64 cities and towns in Massachusetts that are. Chamber of Commerce did not think it was going to be of any significance to the retailers to deter business from coming or have them move elsewhere. Mr. Eagle asked where the fines would go and Mr. Stanbrook confirmed that fines will go to general fund. Mr. Feely stated that our current recycling vendor charges the Town when plastic bags stop the machine and Mr. Stanbrook confirmed. Mr. Cioe states that the larger stores have a 6 month transition time and the smaller stores have a 12 month transition time. Ms. Aguiar commented that she lived in Europe and they taxed for plastic bags. Mr. Cioe explains that there are also requirements for the 100% recyclability for paper bags in the Article. Mr. Wilk explains that financial analysis is needed in order for the Finance Committee to vote to recommend in favor or opposed or stay neutral on article. Mr. Feely asks Mr. Stanbrook to find out how much money this has cost and recommend to contact DPW to get figures on recycling charges relative to the plastic bags. Mr. Wilk said warrant sponsors can come back with financials if they'd like the Finance Committee to vote on the Article. 4. Warrant articles discussion Mr. Wilk stated that the Finance Committee voted in favor of the CIP budget based on funding source at April 12th, 2018 meeting. There were five items in question to see if they were being bonded or using free cash. Mr. Stanbrook stated that the plan was to take the Plymouth Street Fire Station, Memorial Hall and Engine 4 replacement for total of $1.68 million and fund that through short term borrowing with idea that at fall town meeting when the new free cash is certified these would be paid off completely. Mr. Wilk asked why not save free cash and bond while interest rates are lower but Mr. Stanbrook said Mr. Dumas wanted to use this mechanism to alleviate the $300,000 "bite" out of the budget. Mr. Feely stated that the plan for FY 2020 was LU FIUL UU(FVW any nl(ney IVF Udpn.dl PIUJecu uluuaulg uIe ;)c IFnmun FUdu uunu. rvu. � [IenIIJWKeF adlu Ian town meeting may be difficult to satisfy because of quorum issues. Mr. Feely said there is a short term authorization to borrow even if there is no fall town meeting. Mr. DeSantis asked about utilization of free cash if it isnot used and Mr. Feely explains there is a 5 year plan for capital projects and that money could be used for that. Mr. Feely explains that CIP is actually being started earlier because of certifying the free cash at fall town rrreeting'.-Mr; DeSantis asks what we would do if rates remain neutral and Mr. Stanbrook said there is a budget capacity problem due to flat state aid and other issues. Mr. Eagle asks about the process and what Mr. Dumas has presented to the Finance Committee has changed and that he has asked for information that has not been provided to the Committee yet. Mr. Eagle also expresses his concern about a fall town meeting. Mr. Wilk said at April 12 meeting town officials said there would be "laddered" bond approach to pay for CIP projects and now it has shifted and he wants to know what changed since the last meeting. He also asks about the $300,000 budgetary issue and does the Town Manager know of something in the budget coming in the future where this would make them want to change the funding. Mr. Stanbrook is to provide debt projection to the Finance Committee. Mr. Eagle asked if the Committee could rescind the vote of support of CIP until we get debt projection from Mr. Stanbrook. Mr. Wilk stated that the Committee could just not vote on the CIP motions within the Article. Mr. Stanbrook provided handout on Article 1 with breakdown of all the money. Article 1—Town Budget -Mr. Stanbrook explains that state aid was $36,000 less than projected. He further explains that the budget amounts can be shifted within these areas but cannot exceed that amount and this is the first time the budget has been presented this way. Mr. Wilk clarifies that it would alleviate mid-term transfers. Motion: To recommend approval of the amounts in Article 1 totaling up to $42,419,783. (Feely/Chemburker) Passes 6:0 Article 2 —School Budget— Mr. Stanbrook states there is a 2.8% increase over last year. Motion: To recommend approval of the amount in Article 2 of $50,442,599. (Feely/Eagle) Passes 6:0 Article 3 — Electric Budget — Mr. Stanbrook notes that they are under different rules and can use their income to pay expenses. Motion: To recommend approval of Article 3, the Municipal Electric budget (Feely/Eagle) Passes 6:0 Article 4 — Enterprise Funds — Mr. Stanbrook states there are 4 Motions in this Article for the Enterprise Funds: Motion 1 is water, Motion 2 is sewer, Motion 3 is airport and Motion 4 is parking. The parking includes the increase from $2.00 to $3.00 for residents starting July 1. Mr. DeSantis asks about the parking information that was requested previously about the other lots in town. Mr. Stanbrook states that Public Works is going to upgrade the resident parking lots to include cleaning, weeding and new signage. Mr. England states that the private lots in town have just renewed their contracts so Mr. Wilk states that we should make sure that the parking increase is equitable. Mr. Feely states that our parking lot enterprise should support itself by retained earnings and states that the private lots and the town lots are different issues. Mr. Stanbrook clarifies that parking permit fees paid by private lots goes into the general fund, not the parking enterprise fund. Mr. Wilk states that he is uncomfortable with the Board of Selectmen approving the warrant articles before the Finance Committee and suggests Finance Committee meet a week earlier next year to review before presented to Board of Selection. Motion: To recommend approval of Article 4, Motions 1-4, the Enterprise Funds (Feely/Eagle) Passes 6:0 Article 5 —Transfers inter -budget — Mr. Stanbrook states this is for FY 2018 and the new appropriations for snow and ice deficit in the amount of $355,000 but all of the bills have not been received yet as well as a $5000 transfer to the airport. Motion: To recommend approval of Article 5 as described (Feely/Eagle) Passes 6:0 Article 6 — Unpaid bills— Mr. Stanbrook explains these from prior fiscal years. Motion: To recommend approval of Article 6 as described (Feely/Eagle) Passes 6:0 Article 7 — 5 year revaluation of all town properties — Mr. Stanbrook said this will be tabled to fall town meeting. MI LILIU 6 — lV yUdl LyUILdl — IVII . JLdI IUI uvn JGIU a IIO Will uc LdUlCU w I GII W W 1 I I1ICCl11 %. Article 9 —Capital Improvement Plan motions: Motion 1—Town projects using free cash Motion 2— School projects using free cash Motion 3 — Plymouth Street Fire Station improvement bonding $660,000 Motion 4 — Replacement Fire Engine bonding $660,000 Motion 5 — Memorial Hall improvement bonding $360,000 Motion 6 — Underpass/overpass project and roads bonding $3.4 million Motion 7 — Water Department repairs to Albertini Well repair $500,000 from water enterprise fund Motion 8 — Closed general fund articles of $176,500 Motion 9—Sewer Department repairs to Mill Street sub -station from sewer enterprise fund Motion 10 — Water Department retained earnings for meter improvements Motion 11—Airport $16,727 from retained earnings Motion 12 — Parking retained earnings $200,000 for parking Jot improvements Mr. Eagle asks if they can not vote a Motion within an Article but Mr. Wilk explains they cannot break up the Article. Mr. Eagle expresses concern with Motions 3, 4, and 5 based on lack of funding information from Town Manager and why it has changed since the last meeting. Mr. Wilk asked for Mr. Dumas to respond to the question of free cash versus bonding. Motion: To recommend approval of Article 9, Motions 1-12 (Feely/Chemburkar) Passes 5:1 Article 10—Annual exemptions — Mr. Stanbrook explains these must be voted on annually and include veterans, blind, etc tax off -sets. Motion: To recommend approval of Article 10 (Feely/DeSantis) Passes 6:0 Article 11— Change to revolving fund by-law — Mr. Stanbrook states that this is done to satisfy new Attorney General requirements. Motion: To recommend approval of Article 11 (Feely/Eagle) Passes 6:0 Article 12—Sets limit for revolving fund Motion: To recommend approval of Article 12 (Feely/Eagle) Passes 6:0 Article 13 — OPEB liability contribution of $400,000 Motion: To recommend approval of Article 13 (Feely/Eagle) Passes 6:0 Article 14 — Capital Stabilization Fund — no action Article 15 —Stabilization Fund contribution of $239,870 Motion: To recommend approval of Article 15 (Feely/Eagle) Passes 6:0 Article 16 — Compensated absence reserve fund - no action — Mr. Stanbrook explains there is enough in the fund to cover any known retirements. Article 17 —Special indemnity fund for police & fire— Mr. Stanbrook explains this is a special workers compensation fund for police and fire personnel with $300,000 funded from free cash. Motion: To recommend approval of Article 17 (Feely/Eagle) Passes 6:0 Article 18 —Special education reserve fund - no action Article 19 — Payoff of bonds for sewer enterprise — Mr. Stanbrook states the sewer department is going to call $520,000 worth of bonds payment from sewer enterprise fund to save interest. Motion: To recommend approval of Article 19 (Feely/Eagle) Passes 6:0 Article 20 — Raising of fees by Town Meeting — no action Article 21— Masterplan update — no action Article 22 — Antenna — Mr. Stanbrook states this Article would give the Town Manager the authorization to enter into a lease agreement with telecommunications company. IVIVIIVI I. i v i cwu a nc$ iu nNNiwa i v i n1 U�IV icVly/Uagic) Passes 6:0 Mr. Wilk presents financial analysis prepared by Ms. Aguiar in sale and cultivation of retail marijuana. Ms. Aguiar prepared this to give people a "financial skeleton" for revenue. She used three very different sources. The first stated $1.2 billion in sales in MA by 2021 with 6% tax back to the municipality which would equal $3 million in revenue for town but not sustainable. The City of Brockton is an example of medical marijuana and they received $172,000 through host community agreement. Ms. Aguiar clarified that a town can charge anywhere from 0-3% (Brockton is 2.5%). In this scenario Mansfield would receive $412,000 based on 3%. There is the need to reach balance between host -agreement and tax rate to prevent sales going underground. Mr. Feely asked about probability and Mr. Eagle said you cannot because technically you are looking at something that is illegal in the eyes of the federal government. Ms. Aguiar stated there would be a great deal of training and education necessary so would need to add one full time police per shift. Mr. Eagle pointed out that this article only addresses retail and not cultivation and they are taxed differently. Mr. Wilk suggested taking out $300,000 to cover new police shifts and then preparing handout at town meeting. Mr. DeSantis said to clarify that 20% go to the State and that people are under the misconception that towns get millions of dollars in taxes. Mr. Eagle will circulate analysis and ask for edits and will discuss at next week's meeting. No update. F6. Budget discussion including FinCom Town Meeting presentation I Mr. Wilk asked Mr. Eagle to circulate last year's Town Meeting presentation to the Finance Committee. Mr. Wilk stated the Town needs to get new commercial development and the Board of Selectmen should set the vision. Mr. DeSantis states that there needs to be a focus of driving new revenue. 7 Items not known within 48 hours None. 8 Questions from the audience There were no questions from the audience. 9 Committee member comments Mr. DeSantis requested an update on the chocolate factory development. 10 Adjourn I Motion: To adjourn the Finance Committees Meeting of April 12, 2018 at 9:22pm (Eagle/DeSantis) Passes 6:0 7 Signature Minutes Clerk Signature Minutes Prepared by Mary Dalton 11611,6 Date Date