Finance Committee: March 20, 2023

Transcript captured from MHTV’s Vimeo auto-captioning. No speaker labels; proper names and dollar figures occasionally misheard. Click any timecode to jump to that moment in the source video.

0:00 Okay, good to see everybody. I’d like to call our meeting to order.

0:05 So generally this is night one of our three budget review hearings where we review and approve various Department budgets given the challenges of this budget season. We thought we’d take as much time as we could. That being said we wanted to keep tonight’s to really check in as a team and figure out you know, we have all of our Liaisons going on right now. Most of us have met with each department at least once if not a number of times. And I just thought it would be good for us to kind of get together and make sure we all know the schedule ahead. We have meeting scheduled tonight in the next three Monday nights in a row thereafter, but first before we get into the fun budget season part, we do have a couple of more administrative things.

0:53 First I we forgot to vote one of our meeting minutes at the last time. We got all together in February. And then we also have the meeting minutes from February to vote. So first item on the agendas to vote the November 14th and the February 13th full fin calm meeting minutes, which were shared with everyone via email. Looks like everybody read through and all right, so that one will be quick. So I like to make a motion to approve November 14th and February 13th income meeting minutes. all in favor Great. And then the second item tonight. We had one of these back in November for those that are new but another one of our main roles is the fincom is we actually review and you know vote to

1:40 approve any reserve fund transfers. So, I believe I reserve started at 144,000 as it always does I looked back we approved about 28,433 back in November for the budget software and then I believe Kim or Thatcher if you want to come up and speak about tonight’s request. Can you just give the brief overview of yes because we need you on. microphone and I can share it on screen. Turn my back to you folks. Okay, so we’re here tonight to ask for assistance sister bridge the gap in our maintenance. funding for repairs

2:27 At the Everlast school, so we are. Finding that our heating system needs constant repairs. It’s very old unit and it’s hard to find parts for it. In any case we we owe combustion Services some out sweet for some outstanding invoices. It’s almost $3,000. We have them in last week. So that’ll be another invoice that’s building up. So we are here to ask if we could have a little bit of extra cushion to cover us through this fiscal year. And that I think my request is an odd number. It’s a 8,770 dollars.

3:11 And that’s you know, we it’s a modest request. We we don’t know if we’ll need all of it. It’s possible. We won’t especially as we get into the warmer parts of this fiscal year. Yeah understood. I know, you know, everybody knows the libraries and the avalith school as their temporary space and generally it’s working really well, and we’ve got a lot of good things happening there. So it’s just added contacts because they’re in. Borrowed space for for a period of time until the main library construction is done. We’re trying to spend the minimum necessary to keep keep them operating in the building. You’re not freezing anybody or anything. So this is this is yeah. To keep the ship running until the the

3:58 main library projects done and then they’ll move out because it’s a building that’s you know this at some point. The schools are gonna have to decide to Surplus the building in dispose of it in some fashion. So we don’t want to we’re not here to rebuild that school. Just keep keep the systems running long enough to take care of the library while it’s in there, but that being said just you know, we have made some improvements to that building ADA Compliant bathrooms and things like that great, so It and wiring the seems pretty straightforward to me. Definitely a reasonable request pretty small amount. Again was 3,000. No, the full amount of the request is 8,770 dollars eight thousand.

4:47 Seven not to exceed. At this point. Yeah, it sounds like if they don’t spend it all would come back. Yeah. We still have over a hundred left for any late later part of the year. So. you know and Hopefully I’ve done my estimates properly. No, it’s better to be safe. I did hear there’s a leak in the roof. Somebody told me that oh, that’s been that has yes. We did take care of that.

5:17 You know, you never know. There’s a like 300 holes in the roof. Yeah, it’s an old building. We got we did the best we could and then last two storms seems to have held. fingers crossed Yeah, any other questions from the finance committee? Like to make a motion to approve the reserve fund transfer in the mouth of 8,770 dollars to the library r&m BG 610-5260 line. recession on favorite Thank you very much. Thank you soon. I’m saying thank you very much. Okay.

6:02 Next item on our agenda. We’re really the next two items we can kind of Merge together obviously thatchers here to provide an update from the town side Thatcher and Alicia are tasked with formulating budgets with all of the department leads. That’s their role and our role as a fincon is to advise review make recommendations at town meeting. So both Thatcher and Alicia are here, I guess before we I do have a list of every town departments that we review separately as a fincom and I do want to go around the table and look at every chair liaison. We have a number of them here and then you know, making sure we’re all on the same page as we enter our two budget hearings the next two weeks, but first, I guess just the

6:49 overall budget we talked about last meeting in February that you know, in order to balance this year there has to be reductions and most departments and just kind of you know, I know you know the books we’re waiting to be closed and we’re waiting on that certified free cash number. But you know, what’s the overall budget looking? Like I know you’ve met with all departments at this point, so yeah, I I can’t think of a department that I haven’t met with I’m sure somebody May. Cheer up and say but no so where we are in the process. So we’ve gone through you know on the town side. All the requests came in met with with all the Departments to today.

7:37 Three three different departments today. So I think that closes it out primarily have a Have a spreadsheet that has two main columns. And that’s that’s a

7:52 a balanced budget Budget that’s the the budget that does not have any any override numbers added to it. It’s the it is a balanced budget based on the current known revenues that we have. I will say, you know, the even on the revenue side. Those numbers will bounce around a little bit not big. big movements but As I break the slack board. So the governor released on the first of March released her budget numbers, which we have which was a a net small increase overall for Marblehead. And in the fact that there’s on the Cherry sheets the so called Cherry sheets. There’s the eight that comes in under

8:40 various different categories to the municipality Chapter 70 school funding in the district General government Aid. Yeah, they have to come up with a better name, but basically the end restricted on the town side. So that’s on the revenue side on the back seat backside of the Cherry sheep back one was really paper. We’re all the assessments charged against the town that we pay back to the state. And so so the numbers are net result of how much the revenue side went up or down and how the the reimbursements or the chargebacks to the state go up and down we have I think is 7 or 8,000 net gain on those

9:26 numbers, so

9:30 So we have those. So what will happen is the the governor submitted the budget it goes to the house. And so where the next numbers that’ll come out will be from the house Ways and Means and we’ll adjust accordingly as as it goes through the legislative process. They won’t be a final final. you know local aid number until sometime in June when when the legislature does a final state budget and only that but but again the numbers I don’t expect they’re gonna have any any big you know, it tends hopefully in the hundreds of thousands, but more like in the tens of thousands it’ll adjust. So we we’ve we have that column that that we we’ve we’re working with a balanced

10:15 budget. I’m not prepared to give any specific numbers because even though we are uploading the clear cup and we’re you know, I spent I know this week in the last weekend building out all of us the the salary pay scale worksheets that have to be uploaded in the system so that we can attach the employees to the their salary skills. It’s that type of just grunt work to get the clear up to be related. So we’re still using Microsoft Excel and and I met the stage and we had a whole whole team in the finance directors office just scrubbing numbers and and checking formulas. I want to make sure that I don’t have like a bad link that gives me, you know a wrong number. But but we

11:02 we have a pretty close to having a final balance budget that works extremely tight. But if there’s no other, you know increase or revenues, it’s a budget that We could live with over the next year if we had to and then the other column is the level Services budget. That’s that where the department heads on the town side and I know schools working through there there finance office and superintendent developing a budget that represents the levels the actual cost to provide the current services that are currently being provided in Marblehead. So

11:50 we have that column and the Delta be between level services in the balance. That number is the is what informs us as to what an override number would represent. and again, I’m not ready to give specific numbers, but but I’ll say we My concern earlier on the process that would be some astronomical number it is I’ll say reasonable to work with obviously that’ll be in the Judgment of every individual as to that but but from a municipal perspective. I think we’re in a ballpark of of a reasonable and responsible override number and so

12:37 I hope to sit down, you know, Alicia and I sit down first of all, I want to sit down with John Buckey and Michelle Cresta to to go over the numbers with them get them informed and then ready to kind of put the numbers out on the street. Great. Appreciate that update. As I mentioned when we kind of started this conversation at our last meeting, it’s fin com’s role and job really to present a balanced budget at town meeting. So in Thatcher talks about his first column you all know that you know checking in with both department heads and Thatcher make sure they’re they’ve been talking to one another as we’ve been having our liaison meetings given the fact that we have such a tight schedule and our next two weeks are really cutting each

13:24 or all the departments in half. However, many we are going to review and approve next week and then review and approve the week there after on the Monday. I just wanted to kind of go around the room check in with each chair liaison. Make sure you’ve had your liaison meeting. If not, I know there’s a few smaller ones that might still be out there and then also make sure that that you’re in Alicia have You know met with those departments and made sure there’s nothing we want less than approving a budget that doesn’t fit into a balanced budget certainly this year, right? So I kind of put them in order of what I think are. The easier ones are smaller ones I should say. So we’ll start with Pat and the retirements department budget. yes, we’ve had our

14:11 liaison sub community meeting with the retirement. It’s a fixed allocated number from the state. There’s no discussion essentially. So yeah, it’s it’s we’re given a number and that’s what it is. So for retirement, yeah connect. Can I just ask check question before we get too far into this because I think it’s kind of a general question for everybody and that’s so you’ve talked with all the different departments and you’ve and and you collectively have taken all the department budgets that we will be reviewing in our if we haven’t already in our liaison subcommittee meetings and and you’ve

15:00 you recognize that the total is gonna be equal to the available revenues. Is that right? I didn’t hear any other choice, right? Well, no, but I just want to make sure because we don’t want to be in person situation where we’re we have to do this. We don’t have time to do this twice, right so you so whatever budget whatever amount of available Revenue Are exist or projected to exist for this year? all of the budgets that have Have been vetted through YouTube and and it works. Yes. Okay, that’s okay and I’ll say this you’ll see departments who?

15:45 taking You know good amount of cuts. The target was 4% That was about the overall average. There are departments that that were significantly reduced to that to that Target. There are other departments that you would there’s nothing to cut you just if you pretty much cut anything you shut them down, right? Yeah, so so I just want to write it’s not every Department there are departments where they were left alone because they maybe consist of two employees and and office supplies. And you know, I’m not gonna trip nine dollars of office supplies to balance the budget. So I just want to show this not expectation that everybody. There’s not an expectation. It’s and it’s not reasonable to assume

16:31 that. Yeah, in fact, that would not work. In fact logical manner so is but as long as yes, the cumulative number for all the budgets for all the Departments that we’ll be reviewing, you know, liaison committees is equal to the available Revenue within that’s all I’m yeah not necessarily equal but within yeah, you know with the revenues are fair. Yeah. Thank you. Yeah, and that’s kind of the purpose here is I’m not trying to micromanage but I just want to make sure we have every town Department, you know liaison and Thatcher. We’re good. Yeah, so Town Clerk and elections. Yes. I’ve been in touch with Rob and she was had some professional conferences back

17:17 in February and then just got back from vacation last Monday. Okay ever last week to kind of yeah get caught up, but I hope to get in with her this week or next week. She’s met with you. Yeah, so we met and talked. There’s a few numbers. That we need to get nailed down some information on but we we’ve had the conversation. So I’ve received yeah, we’ve received preliminaries. Yeah. Yeah. So yeah assessor I spoke with them today and and years. I think that yeah, so I have Miley is on meeting Mike and I on Thursday and then we have a couple weeks thereafter to for the actual hearing.

17:58 Water and Sewer Enterprise budget Yeah, Water and Sewer. We’ve also had our liaison joint liaison meeting with the Commissioners and reviewed the reviewed their budgets their Reasonable budgets relative to their to their their needs again. They are Enterprise departments. So they’re their budgets don’t roll into the tax levy however Because we we try to do dude due diligence with those departments because the citizens actually end up paying for that budget through their rates through the fees for water and sewer. So

18:44 but yes, we’ve had we’ve had those those discussions in as usual. There’s not a final number for from mwra or sesd but as as the numbers are as close as possible under the circumstances in those are the only two numbers that were questionable coming forward. Sorry GIC was I’m not sure how that was gonna work. It was they were waiting on hiring. a potential person To to work the GI the gis, right?

19:29 Now there their insurance number. I thought had been assessed so yeah, okay, but yes, the bottom line is over. They can’t they’re in trouble. Yeah. Sorry. Sorry, though. Yours. You’re good. I think yeah bottom line is yes, we’ve had the liaison some Community meetings with water and sewer and they’re yeah and we’re gonna you know, hash out all the details and are hearings over the next few weeks. It’s just as we enter those in a challenging year. I just want to make sure we’re not, you know showing up to those. I’m prepared, right? So Cemetery Mike Cemetery. We have our meeting scheduled Thursday or Wednesday morning at 9:00. I’ve confirmed they have been in touch with you. We had one scheduled earlier, but you know, they hadn’t at that point been in touch. So I just wanted to make sure that we

20:15 weren’t doing this twice followed up. You know, it doesn’t you know, they do not have any Cuts their budget. They have one. They have a smaller piece of the pie. So, you know, I think that talks to what you’re what you were pointing out earlier how you know if there’s not Much to be caught in a certain Department. It really severely limits their ability to do what they can do. They have one ask that, you know, they’re a relatively they’re not an Enterprise fund but they do generate Revenue through their sale a lot fun. So that one ask which is Lighting in some facility that is projected to be funded by that by that Revenue source, so I don’t anticipate any

21:02 issues, but we have been touched there and she has been in touch with the address. So that’s all we’re looking to confirm for now. s***. Yeah, so the outstanding manage just validating all the salary numbers are so so she did she give you a breakdown because she yeah, she sent me the information. I have to I have to go back. So the the quick calculation is, you know, it’s assuming two percent increase for the contractual that’s that’s burned in and then it’s calculate because they’re most employees not all summer Mexico have step increases somewhere in the year. So you get to do the math of how many weeks of the year. They Current step and how many weeks of the year and do the math? So I just get a kind of go through the calculations on that and then I think we’re good. Okay, sounds good. Yeah, I’ll follow up with you before we meet just to make sure that’s the

21:50 case. Yeah, great. Cam Library. Yes. We met with Kim and a few board members. And we had it was a good presentation about the status of the project. It was prior to her meeting Thatcher. So we’re in the process of scheduling the follow-up meeting numbers. Sounds like you since have met with Patrick this afternoon awesome. Great reckon Park Molly. Yes, Tara and Mike Django and I met with them on Thursday, and we wanted to also confirm with you that they are one of those budgets that did not need the cuts as well. Okay? Yeah, they’re just the construct of what they do. There’s the salaries portion and

22:37 we tried we’re not looking to eliminate positions everybody’s Pretty short staffed or barely staffed and mostly it costs. The rest of their expenses is running that facility and

22:53 That’s they could use a bunch more money to. Do some things there. So. Yeah. Tara health and waste Hi. Yes, we met last week on our budget liaison meeting. It was Molly Mike and myself we reviewed at that time reduce Services budget as well as a level Services budget. I understanding is Thatcher you had met with Andrew ahead of our meeting. And so I think we’re in good shape there. Just one thing to note as we go forward the Health and waste Budget on the Wayside. There is an Enterprise element because there are commercial ways that comes to the transfer station and so

23:39 in the budget This is a budget for the taxpayer funded aspect of the department. And so for trash disposal it is only. Part of the overall trash disposal expense. So there will also be a request at town meeting that they take money out of their revolving fun and that will be to pay their part of the trash disposal thing. Yeah, that would likely go in. Well, is it a separate article or is it just the max they can spend other evolving fund. I know that’s a general article that we always review but we can look at IX. It’s article eight. So I’m gonna make sure to show the year over year comparisons of those last year. Remember we got some questions that town meeting just want to be transparent. So right and to be

24:26 clear because I know this wasn’t necessarily clear town meeting that was revolving fun requests. There’s not additional taxi to anyone. That was my point back right and last year and they contribute that or projected to contribute at least that to the revolving fun next year, right? Schools, so the schools have been presenting a good reduced Services budget and level Services budget. The last I don’t know we’ve had at least five meetings. I feel like and they’ve been doing it since the state of the town. So I guess my ask is have we finalized the reduced Services increase. I know that the other piece is still being worked on but you know, we’re gonna be voting them next Monday. Obviously a very large

25:12 piece of the budget. Yeah. So like I said, we’re gonna sit down with John Buckeye Michelle’s been working closely with Michelle already. So there’s already a lot of good info exchange. I just want to do like a sit down with them. And then yeah do to as long as it’s ready for the Monday. It’ll it ready for Monday. Great. We’ll be yeah, I’ll just I’ll give doctor Bucky a call. Yes week later in the week. And then the select board departments were scheduled to meet. Well, we’re in the process of getting the date for either this week or next week and then there two weeks from now. So not next Monday the one after but I know you’ve been working very hard on those. So appreciate all that.

25:59 okay, and then does anybody have anything else on kind of the Steps step one article 30 process? Sounds like we’re all on Pace here. The next few nights. Okay. This is one question of that. You’re about that. I’ll just the current services. I don’t know what term using is current services or level Services. Yes, and that includes any sort of contractual obligations any sort of projections of funds like in the school side. They’re special education projections that are not within their control. I mean, I’m assuming everything that is required to be spent and even I guess the projections you’ll have to analyze as to whether you think they’re

26:46 the same as others think they are but that’s all going to be covered everything. That would hold us constant. Employees being held constant and that’s how you define current services that way. Yeah. I mean there’s some trade-offs within the Biden, you know normal trade-offs were for example, we’re seeing some significant energy costs. Nobody should be surprised. So to try to to maintain, you know certain levels that means you got to you know adjust elsewhere so that there’s the normal making you know choices but but the whole idea is that the basic programs and services that we currently provide will continue and you know on the on the salary side the the top part

27:33 of the everybody’s budget which is all the salaries it, you know, it builds in the the unions have the collective bargain agreements of 2% increases plus whatever the impact of Step increases that employees do it builds in the assumption that the nine Union is also at 2% So those costs were all projected in as part of level Services because it’s is the folks that we have but there’s you know that there are a few areas of

28:09 I you know, I’ve talked about publicly HR Director. I know there’s a big push for sustainability coordinator.

28:17 Whenever I you know, look for things like that, I pay I try to pay for it from within the budget from somewhere else. So, you know, there are trade-offs like that that you you look for so it’s not adding anything new. That’s that’s making a new commitment of costs. It’s being paid for by, you know some adjustment elsewhere in the budget approach.

28:43 Pat yeah, so so your definition of actual cost to provide is is current if you were saying that level Services is equates to actual costs to provide. Yes, and that’s current actual cost so if in different departments like there was a a previous cut that was not added. Would that be eligible for adding being added back in for the level service or not? So because that’s not being that’s that’s a cost that’s not occurring now. If I know that’s a fine point, but it’s good. It could be significant. So if I understand

29:30 why you’re asking so basically the articulation of what an override number would be is simple calculation of the of each every line item in the entire budget. It’s like 1100 lines. Um that the the balanced budget that the more austere, you know, no ride budget. And in a calculates the difference to what you know department heads and and the professionals that do this. what the level services are and it’s just the dollars that were cut between level services and and what I call the balls budget. I have that for every line. I’m I can tell you every line item.

30:16 Out of the Thousand line items that have changed. Within the budget that make up what would total up to be? You know, I I say it informs us of what the override number would be in the sense that I never wanted to say that it was going to be Absolute Math without knowing how the numbers of play out that you know, it’s easy enough to do a math calculation of what that difference is. The next question is is that number whatever a totals up to palatable to the voters? To prove an override. So I’ve always said, you know, the math is to inform us as to what an override number could be and then it’s up to you know, the policymakers the board with a bunch

31:04 of other people to to make a final decision to you know, should that number be the override number or should is it too much for the for the voters and in make some choices below that but as I’ve said earlier, I think I think the numbers that I’m seeing now that we’ve done the work our I’ll use the phrase reasonable and responsible. So I am very optimistic that that those numbers would work but level Services May mean different things to different. Absolutely. Yeah, and so it the point I was trying to make is if you if we can use if you had something to be grounded to be able across all departments to say.

31:51 It was actual cost to provide as of now. That’s I think that’s been official because you could at least have a number of what? Because it’s basically what they’re spending now. Yeah, and what was to what they might? Think level Services would be and that’s an all departments. So and that’s that’s the sit down and walking through every line item and every department and asking about the numbers and so to the extent practical because this thousand line items, you know to to ask about at least the larger ones in there as to what makes up that number in there’s there’s nowhere, you know on the town side meeting with everybody there. I did

32:38 not see anybody putting anything in that was

32:44 you know out of the what’s over pretty much already being done. It’s good. That’s good to hear. Yep. And and we will get we really won’t see this number or even and it’d be nice to have at least some idea what how that number got rolled up. but until the warrant hearings that right, what’s our what’s I hope no sooner that we’re we’re at the stage now of grubbing and validating all our numbers and making sure that all the links calculations because again, I’m having to build this in Excel. So I it’s it weren’t sort of the quality control phase right now of the calculations to make sure that everything is

33:30 Correct. That’s the stage we’re in. So as soon as we finish that sort of quality check and then have some conversations obviously with you know, the school side is having that conversation. I’m prepared to to share the information. I think the sooner the better. Absolutely. Yeah, thanks. Yeah. Right. I have a technical question. Save the town meeting that.

34:01 Level that Comet. Yeah get shot down because people are like no no too many Cuts yada yada yada. Warren gets voted for go to a special override. Overriding it shot down.

34:19 Well tell me it has to prove a budget of some form. I’ll be shocking. Yeah, okay for at least the the article 30 balanced budget. Yeah. Right, right. They may propose they may be amendments too. But at the end of the day of tell me and a moderator will make sure we have a vote to some budget. Otherwise nobody shows up to work on July 1st, I guess. Just follow up to Pat’s question. Are you planning on communicating to departments and to the public sort of how you see that overwrite of breaking down? I think you were sort of asking this but is this something you can say the schools will get you know x amount and you know, you will I have the math. I I have that

35:07 mask though and you know price summarize the information because there’s a lot of bunch of line items with small changes, but it’s it’s the summarize, you know, probably part department by department and and you know, what was cut to in order to to meet those numbers. So yeah.

35:27 Our committees kind of stealing my funder, but I appreciate it. I did want to point out that I was dialed into the meeting on Friday and I shared the link with everybody. I’m sure most of you either already watched it live but you know, we’re not deliberating anything tonight. We haven’t been presented with numbers or anything but I think everyone understands the concept of that charity provided but I did just want to recoup what I heard that the override that’s being considered will address the fiscal year 24 structural deficit our level services for Star reduced and that is a potential second piece to it to fund Town stabilization fund, which is also being worked on. So at some point we presumably will

36:13 want to see the details of both pieces of that. Yeah, and that I’ll iterate that that was a draft document in order to allow the select board to have right have his brainstorming session. But it like like all of you it has to do that in public so and have that so yeah, there’s some work being done as to what what is what is exactly would be the mechanism. So the again what was laid out the memo generally speaking was sort of two main objectives trying to be achieved one obviously addressing a the structural deficit part of it. The second part is to start addressing building up our our actual reserves as was discussed there right now free cash is being used as a revenue source, and and you know, we’ve talked

37:01 numbers times about the fact that that’s a declining resource, but it’s being used directly as a revenue Source rather than as a as a reserve for the town, so it’s looking at how do we so address In this process start building, you know a real reserved mechanism. I think the balance is we need to do that. There’s no doubt. I don’t think anybody would challenge that we need to start building up a reserve account. The big question is depending on the size of the structural deficit number. Is there an opportunity to also add some additional amounts to start putting in a stabilization fund to

37:48 be there kind of replace the the free cash that’s being used as Revenue. That’s still an open question. It depends on on the numbers. And so what you know, the residents of Bible had think about, you know, balancing those those items out. So they’ll be more discussion on that. Talk to them and listen to their conversation last week and I think the one part that I wasn’t 100% certain about is that the stabilization fund is a long-term plan, which you’re going to start in with this particular article. But there’s nothing we’re doing specifically to address 2025 at this point. That a fair statement. Um, well one we I don’t

38:34 think it came out clear Friday night. We already have a stabilization fund. It’s already been funded twice with 250,000. Right? So there’s a half a million sitting in it already. And the you know the issue with free cash of utilizing free cash. We often it’s often described as we’re going off a cliff of free cash. That would be a 90 degree angle and I’ve retorted well actually it’s not a 90 degree. It’s more very steep 45 degree angle and I’m gonna like burn it all off next year and it’s just totally gone but it’s gonna it’s significantly decreasing each year. So so there is still some capacity of free cash over the next year or so.

39:20 Declining rapidly. So the question is do we, you know, can we accelerate a bit having a stabilization fund the key difference in in the free cash as an unrestricted. It’s an unrestricted Reserve, you know, Tommy can just vote majority vote to to transfer from free cash to supplement the budget. The stabilization fund has a higher threshold of approval. It takes a two-thirds majority of town meeting. To access the stabilization fund and so the theory being that it would require much more scrutiny to to for using that as a fun. It’s there be more discipline of building reserve and I think

40:07 And it’s just me speaking, you know, if we continue building up over time. Hopefully what happens is we may need to use a portion of what we build up to get through next year the year after but each year we need less and less. Of drawing from the fund it at some point where we’ve we’ve stabilize enough that that we’re just adding every year the stabilization fun and getting you know getting some policy thresholds of what we want to achieve on that. So it’s in the long term. I guess what I’m saying, we’re not it doesn’t seem to me that we’re planning with this override to address the structural

40:52 deficit for 2025. It’s I mean, I’m just yeah, it doesn’t appear that way. I’m not saying that the combination of the override rolling into next year and some money in the stabilization fun might help but it doesn’t appear that we’re trying to address two years. We’re trying to address one year and then begin the process of a long term solution. That’s that’s a fair statement because and and that’s been in the car in the long journey of all the conversations. The concepts kicking around can we can we do an override that gets us through five years, which there are municipalities out there by policy every four or five years, you know promise to do that, and if you saw my numbers on February principles numbers are just too big that’s too big of a mountain to climb. So it was a question of how

41:40 about two years. How about one year and part of my argument of I I wasn’t ready to put together a Five-Year Plan was bring the finance director on board in part two are patient systems that were were bringing in stall and and in populating the data get those built up because so we’re buying probably one year. Things go family and economy and such baby too. But you know, this is truly as to your point to to fix this one year, but it gives us one year for us working together to start putting the longer range plans in place and you

42:26 know, and it may not go from a one-year fixed to a five year. It might be one year and we do another one that gets us two years and then For you know, we don’t know yet. There’s a lot of different parts, but that’s that’s the thinking in a few years back when the stabilization account was created. It was funded with very small amounts, but that was a step in the record Direction and this is another step in the right direction from my perspective. In just listening to everything that’s that’s coming through one point. I have to make kind of in common with Cam here is you talk about kind of not just all at once right? We’re not just gonna say hey we used I think nine to ten million and free cash last year now, we’re going to use zero that’s gonna be a more over time. We’re still

43:11 going to use a portion presumably as part of article 30. Yes. Yes as I mentioned before It was 10.5 million that was put in the current year budget. That’s 10% of our operating budget. And it we’re not going to pluck out 10% in one year. It would we have to move our way off of it. Okay? And then it was already brought up, but I think just from my perspective right now. The schedule for us is budget hearings next Monday half of the Departments April 3rd are the rest of the department. So now we’ve got our article 30 level service and then really the latest I could push back the warrant hearing was to the 10th. So that would be the time when we would presumably be voting on article 31.

44:01 31 would be every article. Okay weird out with financial implications. Yeah, that being said we have had second warrant nights should you need one but you know presumably that would be ideal and I guess we just want to make sure in speaking with some other members that I would be great to be able to at least watch another board’s meeting go through the numbers before we see it for the first time when it’s our duty to vote on it, right? So that’s just something to keep in mind. Anybody else have anything on kind of? Items three and four from tonight. Mom, just ask her just a follow-up on cams and Alicia. This is your first finance committee meeting so welcome. We’re so happy that you’re here.

44:46 This questions geared toward both of you. But you know and thinking about sort of this long-term plan. Could you sort of walk us through what that process looks like what resources that you’re be using, you know, both external and internal sort of a timeline and maybe what the output would look so either to the community and and you know within all the Departments Yeah, so I think the idea of that stabilization Fund in building that up is important because even though we’re weaning ourselves off of free cash or declining it. So if it’s declining and we’re not adding anything back and we need to borrow funds, you know an interest rate when you’re going out there as you know, they’re high and we lose our bond rating that could cost the citizens millions of dollars. So we want to make sure we put the proper financial mechanisms in

45:33 place to save the taxpayers money. We’re looking at several different revenue streams whether it be local Aid or looking at how the school Chapter 70 formulas working. I was talking to that drugs went to a training on that. It’s very interesting because they’re trying to build it up build it up build it up and how that works. I’m looking at Grant sources revolving funds. I’m looking at how everything is working how everyone thing is moving are things classified properly. Are they not and these are the things why country and I are taking more time. Because I really need to dig in and understand all the different moving pieces so that we can really analyze and come up with a really solid structure for the channel.

46:16 steps in the right direction We’re very happy both of you are here.

46:26 so Along the lines of understanding the article 31 override piece of what will be presented. You mentioned the sooner the better to be able to communicate with us. I just think I for my standpoint I’d certainly be willing. to have another finance committee meeting where That would be sort of like. a article 31 summary meeting presentation, but yeah presentation of that in advance of The warrant article. Yeah the warrant hearing and so I know that’s an extra.

47:12 Meaning for all of us. But yeah. You know recognize recognizing it’s gonna take a while to get to that point, but hopefully it’s within the yeah window that we have and what I meant was, you know, obviously open to that but if we’re at least able to see a presentation, even if it wasn’t in our own we could obviously deliberate and talk right at the warrant hearing on it too. So just an option but either or depends upon timing, right? It’s a tight time for everybody. So I agree with Pat and Alex because we’re the ones that are gonna be hammered. Yep when this comes out so we need to be as educated as possible about it. Yeah. No, absolutely. Thanks.

47:56 So that’s all I had on. Agenda items three and four kind of update from Thatcher and Alicia and our liaison updates. I do want to share my screen just show the remaining calendar for at least the current calendar

48:16 so next Monday and and I believe one or two of these departments just spoke with Tara before the meeting might have to shift still but the idea here is next Monday. We’ll be voting on individual budgets that roll up into article 30. And then the next Monday Monday April 3rd will be voting on the remainder of the Departments that roll up into article 30. So those are our next two meetings and then latest I thought we could do the warrant would be able 10th given school vacation the following week and you probably want to do it a couple weeks before town meeting at least. So newer members of the committee will share a summary kind of no deliberation, but just a summary of what each article means kind of from the fincom’s perspective which ones

49:03 we generally vote on if they have financial implications and and some we don’t vote on. We just, you know, no vote really but we do host the meeting and you know, it’s a long night, but it’s a good night. Alex just logistically. Those meetings will be held in this room now in Abbott Hall. Yeah, I think just with the technology and it’s been working well here so we’re lucky to be able to have them they’re all going to be here for this year. It’s in Kyle’s taking our minutes now. So thank you Kyle. We really appreciate it. Was Pat’s been kind of doing double duty for us for the last few days?

49:46 Finance committee comments new old business. I don’t have anything else for tonight again. I just wanted to make sure we kept this meeting to make sure we’re moving towards an end goal of a number of moving targets. So anybody doesn’t have anything else? I’ll I don’t have it in the agenda. But I’ll move to public comment looks like Sarah. Yeah. Sure, if I had to guess I’d say at least two nights given the last few years, but I don’t know for sure. Good information to have usually the the articles that take the longest of the non-financial ones that that’s what I’ve seen leaf blowers.

50:34 Yeah, exactly.

50:38 anybody can’t Aaron Hi, thank you so much to the members of the finance committee for enduring this really challenging. Budget season and process. I just had a question. That’s right. I didn’t get a chance to talk. But the clear God, could you just I know you’d meant you talked about it, but are the department heads actively using that right now. In terms of like, you know, is that actively being used at this point or are we still transitioning over? Yeah, well, so the question of everybody could hear was we department is using cleargov. Not not yet. We’re still

51:23 Having to upload information into it what what the department heads are doing. So they’ve got the logins. They have clear gov Academy. So so it’s it’s a whole training program that’s you know built into the system. And so what I’ve asked the department heads to do is go through all the modules due to their their training to familiarize with the whole the whole system what we have uploaded all the expenditures are uploaded in detail, which is already been useful just for looking things up the revenues loaded up at I at a summary level, so we need to build up the detail and have them upload it as I

52:09 mentioned that the Personnel module so we have to we have to build out all the all the personal and you know, every person position their step gray all that information needs to be uploaded and then the salary tables which I have build to be uploaded. So that we can connect the individual personnel with the proper pay scale step and clot to step in great. and Again, what the clear-up system once all that data is in there. It’ll allow us to be able to run scenarios to do what ifs so as I’ve said early on in this process not knowing how quickly it will take to get click of

52:55 up and running but the goal is to go through that pain now. as you know, even if we don’t get to actually use it for the for the budget, but get people trained up and familiar with it so that when we go into the next budget cycle where we’re really good to go and Alicia who has experience can probably add some more Ash ‘s gonna jump in and just say that I’ll build the digital budget book. So it will be available for 24. It’s just the Departments won’t be a part of it. Yes. Okay. That’s great. I just wanted to make sure that that the Department’s use of that wasn’t contingent on these meetings on Monday and like next week or whatever. Okay, so whatever the finance committee will be reviewing will be from the way we used to do things like.

53:43 Yeah, the Excel sheets the Excel similar. Yeah, so yeah, I’ve been doing I’ve been doing the Excel. I just wanted to it’s really great and it’s a lot of work to undertake and it makes sense to do it now. I just wanted to make sure that it that that wasn’t like the departments in the being up in all ready for Clear gov was it gonna in any way impact the finance committee’s job right now?

54:10 No once slow us down. Yeah, no, no, that’s That’s why I’ve been dual Channel. Microsoft Excel you yeah, every time you definitely the same time.

54:25 Okay, so just under an hour. I don’t see any more hands unless anybody else in the room make a motion to adjourn second.

54:37 Thanks. Thank you everybody.