Finance Committee: March 27, 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. So this is our first budget hearing night to review Town Department budgets the agenda tonight. We’re gonna vote some meeting minutes like we did last week last week’s minutes. So we’re on top of that. Thanks Kyle for taking our minutes the last few weeks. And then we’re gonna get right into review of fiscal year 24 budgets. We have Cemetery assessor in schools in that order tonight. We’ll do public comment at the end and then we’ll adjourn for the newer members of the Finn calm. This is your opportunity. If you’re not in the chair in the liaison groups with these various departments to ask questions. We’ve provided liaison notes we call them from from the chair Liaisons have shared those through email will

0:46 be voting on these budgets tonight just to remind her to everyone that the budgets that will be voting tonight will roll up into a balanced budget and article 30, which what you’ll see tonight a few of these departments as we go through tonight and next week, we’ll have reductions and services as a result of this year’s budget not balancing without those. So that’s what we’re on the agenda tonight. So I’d like to start off we shared the Minutes in email earlier this week. Did everybody get a chance to review from last week, so I don’t need to share them on screen, but I just like to make a motion to approve last week’s meeting minutes. all in favor Great.

1:32 So cemeteries up first tonight. Kathy

1:41 do you mind just pressing that button so that turns green so here? Yeah. and Mike O’Neill’s the chair liaison of the cemetery, so

1:55 Let’s share that budget on the screen.

2:02 Yeah, if you want to just we’ll just do the same thing. We did when we discussed the other day you guys go through your budget and then out there. I’ll just go through the other the key points that we discussed and then a couple of specific increases and then any other information that we talked, but that might answer your questions before.

2:20 They ask myself. I’ll let you go ahead and pick it up. Okay, we just we presented a budget here. Well, we’re requesting this budget of the salaries is just all contractual and step increases but the expense part of the budget we have several little increases and that’s because over the years of level funding we All these bills just kept increasing but we couldn’t increase our budget to cover them. So now we’re getting to a point where we’re really stealing from other line items in order to cover ourselves so that you’re asked for real numbers. So that’s what we did and we stuck with that and we discussed it in. that’s what we’re going with which is the

3:08 I’m so tiny here the electricity heating gas.

3:15 the heating oil

3:24 repair and maintenance alarm equipment repair and maintenance gas pumps and the doctor’s fees, which is for doctor appointments for physicals and and for the CDLs for their DOT physicals. internet access groundskeeping tools and supplies and the wreaths and flowers and it’s all because of most of it too as covid. Everything has gone up. So we really were going to be in a pinch if we didn’t raise something this year. So, but other than that, everything else is level funded.

4:06 Yeah, I’m just gonna

4:10 be discuss the other day distribute it on fiscal year 23, they didn’t see any major budget challenges there with a little bit under 30% of the year left. There’s roughly right around 30% of the budgeted expenses left operating wise so they’re all appears reasonable.

4:29 We thought we touched on that seasonal labor line. So if we look up, you know on the top line where they’re if you look. Fiskier 21, there was no expenditures there and last year there was very little the issued. There was the the prior year so officially year 21 there was not there was one approved and they weren’t able to hire that person. Well, we did quite after a week. That’s why so that’s fascular 22 you’re talking about right the Five Sixty. Yeah. So then last year we approved three seasonal help throughout the summer to to do the trimming around the grave sites, since they only had one approve the prior year. They weren’t they

5:14 didn’t know they were you know up for three in fiscal year 23, so Come June. We kind of need that position already hired. Is that correct? Yeah, because it’s too we’re in two fiscal Seasons so that the kids get out of school and they apply for the summer jobs and we can hire them only for a month unless we are approved for the following fiscal year, which we weren’t so we we didn’t hire anyone last year and then by the time seven one rolls around everyone’s already got their job. So no one applied after seven one. So in fiskier 23 there approved so they know they can hire and if approved this year, they know they can hire three. So if this year, you know, it’s definitely a major help to them to have

6:00 these, you know college students help out with the regular staff. So if approved there will be three in the budget expense for that would be

6:12 22,000 about 7,000 a little over 7,000 person So just just want to touch on a few differences between the prior year again, the major increases on the operational side where you know energies electricity Heating and heating heating oil and heating gas. The heating gas relates to the Chapel at these this is never budgeted. They put, you know, 200 in the line item this year which we discussed and it appears reasonable. So the total energy costs increases over the prior year with 2,252 dollars over the first year 23 budget, you know it like like happy said they wanted to give real numbers and develop an accurate budget going forward Thatcher as

7:01 well remaining increases, you know. Sort of 450 dollars outside of the Reeds which was a thousand dollars. And again, these are just service fee increases that are you know budgeted and they got they have an idea of what it’s going to be coming up. So relatively salt small dollars we’re talking there. And could you actually reads and flowers are just you usually go over on that line item. That’s why we’re increasing it a little bit. It went up. It went up with a lot for flowers.

7:38 Okay, I mean those are kind of the main points the main increases over fiscal year 23 where you know that we have been level-funded for a few years now.

7:48 So we also wanted to know that it had been set up a 26,000 transfer from the Perpetual care trust fund is set up every year to cover. I think how many years ago is this? Yeah, that’s the interest on yeah the Perpetual care correct? And that was set up for with between you and John again about how many years ago. I don’t know when it went to 26,000. It was it was 150 then it was a hundred and then it was 50 and then it got really bad and that’s when John. Cut it down to 26,000. Oh, yeah, so that was maybe six years ago. That’s every year, right, you know and the idea on that was budget the

8:34 idea on that was when he, you know came to that 26,000 number. I think that was right around where your operational expenses outside of salaries where and I think the idea was to have that cover. I don’t know if that was I don’t know if that was the idea to cover just that it’s just that’s all that that fun would allow us to contribute towards towards the budget to offset our budget. Okay, so currently there is another 26,000 transfer from this Perpetual care fund into your into your operational fund to cover these expenses and the that comes from the interest on the Perpetual care principal balance, which is derived from where someone buys us a lot in the cemetery half

9:20 of the lot cost goes to this Perpetual trip care trust fund half. It goes to the sale of lots fun. And you know the official care trust fund and build over time the interest on that is what funds this this transferred and it covers of the 30,000 last year 30,621 dollars or this year that that’s this year’s request. So the that transfer will cover 26,000 of that. And again that’s derived from you know, the operations of the cemetery directly. Just wanted to make that note and you do have a couple Capital requests this year.

10:05 one for lighting for 14,585 and this is related to replacing the lights in the three facilities that are on on premises there. Yeah, okay. and then the about four I think was four to five women purchases that you needed and that was a total of the $9,495

10:35 I think when we just when we talked about it that sell and that wasn’t picking up the top line, but if you had those all up, I think 9,495

10:46 amount and then these two capillary requests are going to be funded from the sale of lots fun. So that requires article 9 but that you know on the warrant hearing night, but just wanted to point out Gaba requests or not, you know that excluding profession or anything. It’s gonna be from the sale of lots fun Which derived from the operation Cemetery. And then quickly if you guys had any questions on sale was preparation care fund. Each each lot is $2,000 cost. And then again half of that goes to each of those funds the current balance in the sale of lots fund is around a hundred thousand dollars is 98,745 Professional

11:33 Care trust fund is 1.7 million dollar balance again. That’s what creates this interest amount that helps out with the with the expense the operating expenses for the cemetery. We discussed the possibility of raising fees. Again. This is a delicate decision. And we considering these increases due to the nature of these expenses. But again, the cemetery board does continuously evaluate possibility. And then a couple other just notes we had there there are still lots available. They’re expanding water side and there’s been new lead new land deeded to the cemetery by the town at cressey Street Green a little triangle right there and they’re doing

12:18 work to improve that land and water just going out Dave Rogers and the veteran committee coordinated with Ryan deru and Kelly tree services to get some necessary work that was done there last year at no talk no cost the town. So we just wanted to make a note say thanks to both of those parties. Just open it up to anyone that if I understand you correctly that the Perpetual care fund what we were drawing from that is about now from 150-100 now 100,000 to 50,026. That is the amount. Yeah that they are getting from that but the the fund is not decreasing it the only the interest the principal balance can’t be touched but yes at the moment. So how do we know how that those funds are being invested now the total

13:05 off because that’s that’s only about 1.5 percent yield on that which is Free yeah, I don’t I don’t think every everything you can correct me from wrong, but I don’t think everything all the income is is taken out every year. I think that was just that 26,000 number was a conversation between you and John or you know, everything. Well it was it was what John felt was was. Appropriate to to put towards our budget without draining the interest that we have available because we can draw on some of that to like last year or the year before we purchased a vehicle with that. We took it from the interest. That was that was left that wasn’t, you know, put towards our budget so there was a little bit there that was left

13:51 that we were here than 26 a year. It’s just how much you draw I assume so, but I don’t get reports on it. It’s a good question. Here we ever see that. What’s in it? I have not I use I used to ask that when we go through the owl warrant here. I used to get reports but for the past six or seven years we haven’t gotten anything.

14:15 Thank you Mike. That was very good. Very end up. Thank you Kathy. So if I’m looking at this, it looks like about five full-time full-time people in the department for full-time crew and then we’d have the three seasonal that would do all the bedroom. Yeah, so just thinking back to our conversations with Thatcher over the last couple meetings budget update meetings. This is a pretty small Department, right? So in a year where we have the need to do a reduced Services budget, as you can see on screen, there’s a reduced service and a level service which for the cemetery are equal right now. It’s a pretty small Department cutting, you know, 20% of the entire crew would be devastating. So this is just an example of one of our smaller budgets.

15:01 Our next budget will be that we review tonight will be the same, but I just wanted to point that out the presentation this year and thank you that Alicia and Thatcher for that. It’ll be very helpful in this format to review level verse reduced and yes, my other point was just The utilities seem to be in line with the other departments that I’ve seen so far in Miley is on meetings. So I should it appears that the utilities are pretty consistent which not a great thing in terms of expenses, but good to see consistency that all departments are kind of reporting similar increases that they’re all agreeing upon with the town and you know, everybody’s in

15:47 it together and and they face all the same challenges. Anybody else have any questions?

15:58 We’re good.

16:02 this up to yeah, make a motion to get it give them this will make a motion to approve the cemetery budget in the amount of

16:13 472,830 and 12 cents for the fiscal year 24. second I think we should go around the room for these boats, right? That’s what historically done, right? Sure. Okay so passive.

16:33 Sure, they went up we can revote that that’s it again. So. I would like to make a motion to approve the cemetery budget request for 472,000 800 square 172,830 for fiscal year 24 second. Pat approved Cam yes, Molly. Yeah like yes, Eric I Tara.

17:01 Okay. Michael oh, sorry. I said Mike. Thanks. Blank Space Thank you very much. Appreciate it. Thanks again.

17:21 It’s Karen here. There she is.

17:32 Good evening. How are you? I’m good. Long time no talk. I know.

17:38 So Mike and I met with Karen this past Thursday, we went through the assessor budget. We shared our notes. Hopefully everybody got a chance to read through pretty small department, but I’ll kind of turn it over to you Karen to kind of walk through the budget that I’m sharing and sure so. In speaking with Thatcher for salaries for admin was told to add 2% and then if there was any eligible step increase, so that’s what the admin salary is. We are at Department of three myself into clerks one of which is when the process of interviewing in Thailand for that’s the same position. So the senior clerk position and the senior clerk to position those salaries are contractual their Union employees. So that comes right out of our

18:28 I’m the only one eligible for longevity and there are only two individuals in the department out of three that would be eligible for the sick time bonus if they make that so that brings the salaries and I did not round up. To 231 before you have the same numbers me 231 289 so 290.

18:54 The only other thing I’d point out I said in the notes is that one of the positions is vacant, but I think you were interviewing. Yes. Um, we I am checking references and then we’re going to be extended an offer and that’s for the senior Corpus.

19:10 Argument, could you speak out just a little bit? Sure. I can I was trying to use my inside voice. I’ll use my outside voice. Thank you.

19:20 Yeah, and then the the main item on the the expense side is the real estate appraisers for you. So maybe yes, and I will go through that so information technology level-funded that is our contract with our primary vendor, which is Patriot Properties, which is our assessment software as well as our proportion our portion of the gis and mapping vendor. So that was able to stay the same real estate appraisers that has been going up year after year after year like everything else on we requested an additional $5,000 and that is due to In order to meet our dor cyclical inspections, we need to be doing more inspections. So we bump that up on to 500 permits.

20:07 So that’s half of that as well as doing income and expense mailing, which is again, it’s another annual expense Department of Revenue requirement for us to go out to Value properties commercial properties by two valuation methods the income and expense more forms are one of those approaches.

20:27 So that is the request there. Telephone we were able to stay the same postage request was another dollars and again postage has increased we have additional compliance mailings that we need to do one of which is the income and expense. internet stayed the same office supply stay the same D. Stay the same in-state travel requested an additional $800 on. Cost of our classes have doubled as well as I myself and the administrative assessor are required to have our designation and that used to be recertification on a three-year cycle that has been reduced to a two-year cycle. So that is to cover the increased cost of both the classes and need to take more of them

21:15 more frequently.

21:19 Jews remain the same. The only other increase was in state travel and that’s local travel for when I go out and do my site inspections. I’m using my own vehicle. So the cost of wear and tear and gas that has increased. So that’s the additional expense to cover that.

21:38 Yeah, pretty straightforward. So I guess the one thing I since I’ve been working with reviewing the assessors as a liaison the last few years you have kind of certification years that come up that it the real estate appraisers expense tends to jump significantly. When’s the next one still fiscal 26. So in calendar year, I’ll be requesting some money and fiscal 25 and the balance sort of straddles to fiscal year. So come. Spring of 24 will be when I will be requesting proposals for the 26 recertification year, but I do want to make clear that every year we revalue the town. So these are intramurious and the third year which is the one we’re going

22:25 into they sort of do a little bit of a deeper dive and look to ensure that we’re on track for our fiscal for our five-year certification. Yeah, and for some of the newer members some of those assessments are, you know, utility property underneath the ground and things like that require outside experts. So it sounds like in our conversation last week that you’re taking it an approach where you’re kind of gonna phase that in over a number of years rather than have the you know, 15,000 to 25,000 Joe.

22:59 Um ideally in a perfect world. I mean I can’t or I can’t or want to project what we’re going to be what’s gonna happen three years from now. What I can tell you is that the we’re trying to ensure that we’re meeting the department guidelines so that we’re not having an extra expense that we should have been doing something along to minimize a larger request at the end. Yeah, so it’s largely driven by the DOR in their car. Okay. Does anybody have any questions for Karen? Yeah question and maybe this is just I mean it’s a Patrick question, but I know that some of the budgets are really small and that you were not going to

23:46 have the Across the board increase that was gonna be the same for every Department even for the reduced Services budget and I’m just trying to understand when we see a budget with a percent increase above that like this one. Are we to assume that when we see them all there’ll be a net across the Departments that it meets the Target and that this increase above that amount is reflective of how it fits into the overall puzzle. You know what I’m asking so I guess not only but it was not a blanket cut across the board fully. in the two good examples. They’re both departments presented tonight. They are primarily people right and not

24:32 a lot of them. That’s the majority of costs. So there’s no there’s no value in a showing. The small dogs when they’re actually strained with what they have. So you will see other departments that will have you know much more significant. Cuts in the budget, so it was it was no intent for parity across Department of was reaching the bottom line in assessing Department by department where we could make cuts that have the minimum impact. on service and I appreciate that. I guess that’s you know viewing this in isolation. It’s hard when you see a couple of budgets that exceed the percentage where we’re working on the assumption that you have got all of the departments at least

25:20 within New York Direction. Overall below the OR at the percentage for the balanced abuse budget, right? That’s because when you prove this, I just want to make sure we don’t we’re not seeing it out of context. Yeah, so you look at all at some point. Look at all the requirements balances 0 that’s when you see right? Okay. Got it. Thank you.

25:51 Any other questions for Karen?

25:55 Okay, so I’m gonna make a motion. I’d like to make emotion to approve the fiscal year 24 budget from the assessors of 283,891. second Yeah. Approve? Okay. Yes, Molly. Right. Yes, Eric. Yeah, Tara. Yes, Michael. Yes, right. Thank you very much. Thank you gentleman. Have a good. Thanks.

26:34 Dr. Bucky and Michelle Oh Sarah, great. Um, so I have three documents. I’m gonna help you navigate this you want me to do the presentation first presentation first place.

26:48 So we’re here tonight. We had just both voted our budget. To request that you approve our reduced Services budget in the amount of 44 million 837,273 dollars. Dr. Buckeye will walk us through what that number represents. I just as you know the chair of the school committee and as an elected official to to You know look out for what our schools need. I just Want to reinforce as we talk about how we we are trying as a town to? Only you know or make decisions about cuts that are less impactful. These Cuts. I don’t want anyone to be under any Assumption of anything else. These

27:35 cuts are extremely impactful to the delivery of Education to every student in our system. So this is a huge impact on our students on our town on education and Marblehead. So I just I felt in all good conscience I needed to. To see that I also want to thank the fin Conley’s on say have been so collaborative. This has been a really great process. We’ve met several times. I think we have five we’ve had five meetings. Maybe they’re all up on YouTube, but it’s really been a joint effort and I have like they have supported what we have asked but I just I needed to say as we talk about making cuts that are less impactful that these cuts

28:23 that doctor about people go over are exceedingly impact. You got your Buffy. Thanks, Sarah and I would just Echo would Sarah said I think that the relationship with Liaisons we’ve been able to attend to some Community feedback or further transparency. We’ve had our documents up on the school department website tracking changes as we have gone along Alec and I’ve worked offline in presenting some information. That would be helpful for the complete finance committee to understand the school department picture. So next slide.

29:00 So our budget is very similar to the town budget and that there is not an equal relationship between the expenses and the revenues are contractual obligations are 3.85 percent or roughly 1.4 million dollars our district tuition. I’ve shared with liaison’s the unprecedented increase in from OSD of 14 percent this year over the last decade that increase has been two to three percent every year. So a 14% increase represents 385,000 or out of district and then as we all know utility costs have skyrocketed and I’ll address that more specifically in the next slide Chapter 70 increase. I’ll talk

29:47 about this a little bit more but for Marblehead that’s a 1.29% increase projected for fy24 and then certainly we know the tax rate 2.5% next slide. You could ask for some information on our projected utility increases and certainly the small box in the upper right hand corner represents what we’re all seeing at home as we open our utility bills those increases and so you see the difference between fy23 and fy24 for electric gas and water the Delta. That’s not moving is the utility Reserve that is not increasing and so that represents the 37.9% increase in

30:33 our utility costs projected for fy24.

30:40 So when I talk about Chapter 70, I pulled this and I think it’s impactful. This is 2020 data, but the top 10 wealthiest municipalities in the Commonwealth. Marblehead is not in the top 10 and we’re getting a 1.29% increase which is roughly 80 thousand dollars. But you look at Weston getting seven percent you look at Westwood getting 17% in the basic formula is broken. And it seems as though no one has a good answer for how the formula operates but it seems that communities that are investing in their educational system are being

31:26 Rewarded for that and communities that have not had as robust and investment are almost being penalized for that next slide.

31:39 So enrollment is a big part of our budgeting process. You see the numbers for this year principles use they’ve been tracking their enrollment school committee gets an enrollment update weekly from the district. We use NASDAQ to do 10 year enrollment projections for us. Unfortunately covid significantly impacted that they actually have projected our enrollment to be much lower than it is. And as you see as we plan for fy24, it’s almost even what we’re anticipating for enrollment. next slide

32:20 so Staffing levels you will see for our level service budget. The impact to each of our bargaining units from teachers custodians paraprofessionals tutors and then are reduced Services budget. I was looking today because enrollment and our staffing numbers are often discussed in the community and the first budget that I prepared was fy22 and our enrollment was 2704. All of this information was available on the Department of Education website as we’re preparing our level services and our reduced Services, you see the impact to the Staffing positions that we have fy22. We were 2704 today.

33:05 We’re 2622 difference of 82 if you use the average class size. The department says we have in Marblehead at 17. So logically we should be reducing by five positions if you see the difference between fy22 and the level Is that is nine positions? So we’ve eliminated almost nine teaching positions in concert with our enrollment. So it is something that we track. next one

33:40 So you see the level Services the school committee Sarah shared that they voted this evening and what those numbers represent 1.94% increase in our reduced Services budget and a 4.5 to in our level Services budget. Thanks.

34:03 This gives you a bit more granular detail on what those numbers represent. Certainly the level Services requires the override with the town it pays for all of our payroll obligations and then other contractual obligations that we have in the district. It does eliminate seven positions three of which we repurposed into something else that we currently do not have so increase in the school counselor and esteem program at the elementary school. It would fully fund. Our freshman sports program and does not fund anything in what was known as the aspirational budget. So there are no Dei requests in the level services or the reduced Services budget.

34:48 The reduced Services. It doesn’t require the prop 2 1/2 override. It eliminates 33 positions. We are people program increased funding for unemployment costs and then it funds a portion. The projected utilities costs relies on 92,000 from our building rental revolving fund next life.

35:14 And this just gets even further into the Weeds on what those 33 positions represent. You know, I’m just startled every time I see it. Next slide please.

35:27 So we have put forward an opera request for some of the things that were in our aspirational budget that are supplies equipment materials professional development and we continue to work with that committee to see if some of those could be funded next level.

35:49 And then this is just a budget summary that I put together last week to share as I said our budget materials have been up on our website. They dig more deeply into the line by line school by school program by program so that if people have questions on a specific budget ask that material is out there and readily available for our community.

36:13 I’d be happy to entertainment questions. Eric And Dr. Barkley the arpa funds that’s a grant from the federal government. Yes, and if that Grant is awarded then it will go to these items that you’ve listed on this slide. Okay. Thank you.

36:35 Yeah, I’m just gonna scroll back. There’s some of the slides just because it was a good summary of a lot of our conversations. So I appreciate it. utilities as I understand as I said in our liaison meeting I wasn’t gonna run those numbers in depth myself, but my understanding is that the department sat down with Alicia and and the calculations make sense. And like I said during our last few reviews that seems to be a pretty consistent range of what’s going up with respect to the utilities around town the out of District tuitions continue to be a challenge. I’ve said in a number of the liaison meetings that if you just Google special education costs, you’ll see a lot of towns if you

37:23 just Google News, you’ll see a lot of articles about the challenges that are going on. I know that we had a significant increase last year for that line item and it continues to go up. It’s not as severe you’re over year this year as it was last year, but um obviously is something that’s very challenging for your department to navigate. I understand there’s other sources of revenue that help pay for that revolving funds the circuit Here and you have reserves set up within that could you speak a little bit about those Reserves? and so circuit break. Anybody who doesn’t understand is the state will reimburse for special education. Once we pass a certain threshold up to

38:08 a certain amount. It is estimated each year, and then you hope it comes in because we’ve had years like 2018. It came in drastically lower which really led us into a crisis. So this year as we noted there’s an unprecedented increase by the state in this out of District placements what they can choose or what they can charge. It’s typically an increase two to three percent. They’re allowing 14% So we will we have circuit breaker the rule not the rule but the guidance is that you should try to carry a Year’s worth of your circuit breaker reimbursement. In your revolving fund because if you have a year that all of a sudden you’re reimbursements don’t come in because the reimbursements come in mid to late

38:55 January typically and we’ve obviously start at that point we’re seven months into the fiscal year. So it’s too late to redo things. The reason why they want you to carry that year is if in January your circuit breaker funding comes in not what it was estimated by the state which we all seen happen. You’re really in trouble and the only place then to cut is is in your general education and your line items and things like that. So we’ve tried to use best practices and Michelle has done a really great job of encouraging us and explaining to us why that needs to happen and we’re not quite to that threshold of caring the year yet, but we’re working towards it. So, well, you see in all the documentation we have up online that we have this fun. We’re we’re not quite where

39:40 we want to be with it yet, but we’re working towards that it’s not that it’s just money that’s sitting there. It’s it’s essentially good fiscal management to happen.

39:53 Sure, Madam chair, Dr. Buckley. I notice in the budget tracking sheet. There was a downward adjustment of 584,000 for contractual application calculation. It’s not to embarrass any no it could you speak to No, it’s it’s an easy answer. The program was counting some of our part-time employees. We have 1.0 is considered a full-time, but we have people that were 0.8 or 0.6. It was rolling them forward as one point-ups. Thank you. And then the the payroll contractual obligations. In working with you guys for two years closely. Be more than that not as close. It seems to be in line

40:40 with what your contracts have been over the last few years the 3.85.

40:46 I guess my question, which I think you might have answered already. When I saw this presentation sent over today was the Chapter 70 and how that’s determined. It sounds like It your guess is as good as mine first. There’s no formula. There is a Formula but I’m on a the North Shore superintendence round table and every year people think that they have a grasp of the formula and then it doesn’t equate the calculations. Just don’t work. And the Commonwealth doesn’t want to share.

41:22 figure out from industry

41:31 Thank you, Alicia. I actually after your presentation to the town. I actually tried to figure it out which is you know, downloaded all the data and I couldn’t but I did think maybe one driver of it might be enrollment. Do you agree with that? And so yeah multifact or some of the and again each have a different portion. Some of the factors are enrollment. If you’re you know in at at risk District if you will, there’s all these moving pieces and it’s so multifaceted in different ones are weighted different ways that

42:05 little hard I just had a question about the heart that yeah you had New piece of data was your comment that communities that invest. Are being rewarded to is. That well, we’ve had something that’s that’s a new piece of data not I’m just trying to is that true or is that what seems to be going on? Just curious? Yeah, it seems to be seems to okay. So again without Because these aren’t at risk without details. Yeah the formula okay and can a granted I can see if the you know, if we’re conceptually thinking that

42:51 some of these like Lexington is investing supposedly. Yeah higher percentage of their Town budgets or whatever on their schools, but I I think that’s worth trying to figure out what the formula is and if there’s and who controls it and what can we do to try to get a changed if there’s or or see what see what the inputs are what the variables are so that in the future. understand how to potentially position ourselves

43:28 and to the extent Molly’s observation obviously factors in enrollment just not looking into this in depth, but I do believe enrollment over the last five years, although maybe not on this slide seems pretty even year over year, but it has come down pretty significantly, so The Lesser increase maybe your result of that potentially. Yes. We’re not going up like some other towns essentially, okay. A little more clarification again. We’ve been through this of them liaison subcommittee. We’ve been through this a lot, but I think it’s worth clarifying for everybody else who’s listening. The 14% OSD number is the number that the state has indicated would be an allowable amount, but

44:14 we don’t know yet if it’s going you. Yes, we so our our needed to go up 14% Yes, okay. I was I wasn’t sure that was that that had actually Been implemented I knew was the plan and you would have to budget for that in in your reduced services. But because the special education costs are are contractual obligation. So maybe I misunderstanding that but there’s a number of different private schools that Yep falls into that right? So that’s that’s a state mandate that allows these private tuitions to go up and then it’s up to them as to how much they increase their tuition. Yes, but you would I would be hard-pressed to

45:00 assume that any of them are not no. No, I don’t need to write read that because they Lobby the state for that increase and one of the points they lobbied with was. There’s such a vacuum out there to feel teaching positions that they needed to. Strongly increase their rate of page their teachers as well as sign on bonuses to fill these special education department at a district placement departments. And so the state responded by allowing that gigantic increase our hosting a legislative luncheon on the North Shore on Friday to see if our local Representatives can You know. Provide some relief at the state level.

45:42 Fine, you know and in terms of that that out of District tuitions, have you discussed I didn’t hear this in any of the meetings this year. Have you discussed, you know with the town about other ways to fund those and turn other ways to fund the reserve to help you get to you know, a full year like was that could that be part of the budget override or so level Services? I’m phoning a friend Michelle, I believe because it’s a revolving fun for circuit breaker. It only is funded from circuit breaker, correct? Yeah. other is

46:27 Ers. that everybody

46:34 that’s what I was that’s more what I was thinking. Yeah the circuit breaker on this and and but I don’t believe that came in up in any of the in the discussion. I think last year. I’d have to check back the details but I believe there’s 250 in there but it it hasn’t been funded to that per year was 250 two or three years 2018 when it was originated. It was 250 into my memory. We have not the town as a whole we have not voted to increase it at all. But when it was established my understanding was we would continue to grow that not yeah, there’s never been a draw from it either. Yeah. So the operating budget has you know, increased the last few years as we talked. Yeah, but yeah, I

47:19 think to me this is the just in my research limited knowledge prior to being on a finance committee looking at a school department that’s special education seems to be impacting every District in the entire States. So, you know we Continue to navigate this and obviously be looking at revolving funds circuit breaker. How to lessen the burden on the general fund if possible and then potentially, you know the reserve fund as well. Yep, forgive me really late shooting but a question about the special ed that we’ve been talking about. What where’s the difference lie between where we can handle a student in District? And where we need to send a student out of district for special ed.

48:05 Is it a fine line or is it like there’s a Big wall and you realize okay. We can’t handle that. No, I think we’re always looking for ways that we can maintain services in District. If there are programs that we can establish where Marblehead students don’t have to go out of district for services, but it’s very individualized and there are some students who we could just never provide services, but there are enough where we can be creative to develop programs to keep students in District and they’re they’re mainly going to private schools and other Public Schools, correct? Okay, so so it’s not like other public schools are putting but it’s serious money, I guess investment.

48:52 Well different different districts do different things. Yeah, you know we’ve talked about this at the liaison level that in path brought this up for a few years now. I think we’re You do want to start investing more in knowing you will not get a return on your financial investment maybe for a few years out. But because in the long term will keep some of these out of District placements in-house if we can invest one thing I want to just make sure I know because I’m sure our email inboxes will be full for the way. We’re talking about at a district placements. I want to make sure that you know, everyone understands and the community that’s listening that that we’re not

49:39 trying to place any blame on our budget on any individualized students or that our goal is that everyone’s needs and I don’t think anybody here is doing that but you sometimes get something else that you know, these are our students too. When we want to make sure that every student is getting their needs met appropriately for what they need. numbers so ideally when you’re looking to hire you’re looking at somebody with hey, here’s someone that also brings in something that we might not need to send somebody out of district for or something like that that that’s something that’s in the mindset when you’re looking to hire when you’re looking to move forward on things. You say peace short. Okay, we used to have more students’ tuitioning in so that has been a driver on our budget because other districts came to

50:26 the conclusion. Well, if we had a program in District, we would not have to be sending students to Marblehead for that programming two or three years ago was double what you’re getting now and yeah. here So it’s almost like those those. Towns have come up to marbleheads level with respect to what can stay in because not only is it fiscally responsible to keep as many students in but it’s what everyone’s family’s want. It’s what our students want, you know, no one wants their kid to get on a bus for an hour and and to go somewhere not with you know, their neighbor down the street. so You know, I think it’s everyone’s goal. Is that an analysis that’s been done in terms of what the investment would be and you can look at, you know, your current population of students out of District to sort of estimate. You know, how long

51:14 that payback would be because again that could benefit the Chapter 70 money as well. Right the more students that you can keep in or directors of student services and our assistant superintendent meet weekly and they track out of district and programs and so it is something that we keep on. And so at this point it hasn’t really made sense to to sort of make the investment now or at least presented, you know, there was there was numbers in our aspirational budget. There’s there we’re trying but when we have to cut 30 pm to be blunt. We’re not building anything. Just looking at this slide with the stuffing levels from fy20 and for his

51:59 there are table that shows the enrollment level over those number of years. Well and behind that I know it actually that just shows current enrollment and the budget for next year. But but this is looking at what is that five years? So I’d be interested to understand be enrollment Trend over those five years as a comparison to ftes as well. I’ve had count. Yes, if we enter discussed today. We looked at it. It’s a pretty significant. of students there was a huge drop in the covid year, but it seems to be coming back up. Yeah, because last year we actually had a jump because our via to added an entire Kindergarten section two weeks before school

52:46 started because we had such an influx coming back. I think two factors covid is You know we have full day school now as well as we have our new school online. So people who were going private to avoid some of our older buildings in the transition our nail coming back in. Yeah, and there’s I can share the link Dr. Buckley had shared links. It’s right on the Desi site that shows here kind of profile and you can run different scenarios and different years. But yeah, we’re enrollment definitely has come down from what I recall review. During this time. Question I have on out of District tuitions. I’m not quite certain how whenever Marblehead student wants to go to say that the vote Tech.

53:31 Does the school department pay for that? Where is that funded out of a different? So that is wouldn’t be considered an out of District special education. That would be a family’s choice in and there’s some assessment through the town. Yeah, or Students who’ve got a natural. Yeah. There’s a South Africa. Yes. The same way we assess Charter School. Thank you.

54:03 I just want to thank you for the work. You’ve done this budget. I’ve had the benefit of sitting through a lot of the conversations and you know, I appreciate your working closely with the town on this I think. what I think is important to highlight aside from the impact which you have highlighted is that your aspirational budget had Investments that make sense whether it’s whether it’s on special education whether it was on technology infrastructure for remote learning and I think as we go ahead I’m hopeful that some of those can be brought back to the conversation in the next year the year after because there are That were items that could save the town and the school system money over the long run, and I know that’s not possible this year, but I appreciate

54:50 that that’s in your list of aspirational items. And I think that’s what we’re talking about without a district placements, and I know that was not the only place so I think that should be next year’s conversation and thereafter make sure that we’re not sure excited. Thank you for saying here if I get tag on that I want to say I appreciate that this year that we’re all kind of on the same team and you guys aren’t coming in with them with the override barn and we’re coming in whatever ride Warren and that I just think we’re more in Step this year. For the last year, I appreciate that effort on your committee’s part.

55:30 And looking at this slide or Molly go ahead. Oh, well, I just I wanted to say sort of, you know to that point though. I think that Financial disclosure and transparency this year was excellent and it was you led the way for the whole town in terms of setting a framework. You know working through it. Everything was so clear. Everything that was asked for was shown. Disclosing for example some of the revenue categories really helped for for me at least in my other department meetings to also have additional transparency. So I just wanted to to recognize that and I do think that to the extent we can tie together these Investments that will benefit the longer term. You’ve done a great job,

56:17 but I think you could even be more specific with a specific investment and then when you see the outcome and be able to show that as a as it grows to build the case, you know, hopefully, you know next year and Beyond. And we’re not we’re not just I just want to keep hearing hope we’re looking for positive Financial outcomes. But we’re also in the business of educating students. So our ultimate goal here is improving outcomes with students success. Yeah, and I can Echo the the process was great from from step one. I know that we moved to 855 but you know you started off with that first liaison meeting right at the estimated 800. It made it a lot easier to navigate a challenging year. So we appreciate that and the

57:02 presentation was great and looking at this line because I know this might have shifted actually the level service was at five and it came back sounds like that last week or so. It looks to me like you have some vacant positions that you decided to repurpose. That’s a great sign. You know, I just want to reiterate what I keep saying is that and it’s been set at the state of the Town. We’ve hit our fiscal cliff. So the years of kind of presenting a budget at 10% requests. It’s probably behind us because our revenues are really limited and we’ve really hit that that breaking point where we’ve you know, we have to go for an override just to just to balance. So when there’s opportunity, I know it’s very

57:47 Challenging for any departments to have to reduce headcount, but if it makes sense to be able to repurpose that headcount and use it towards some of your aspirations. I think that’s a great sign of you know, being able to to participate in a challenging financial situation. And then my question on freshman Sports is that because it’s headcounts. The coaches would be eliminated. Therefore you can’t have the programs or it has a lot of different impacts. So the coaching stipends equal I think around 32,000 we offset that with the user fees, but then there are costs for officials and transportation and drivers and Fuel and over time and custodians in

58:34 the building. So it ends up being around a 40-45,000.

58:41 That’s why it’s just one item in your listing for the Freshman Sports as a quote. Okay, I was gonna ask that too because there’s more than one sport. That’s why there wouldn’t be a position per se that’s but it’s it’s a program. It’s a program. It’s a funk. Yeah, and all of these are usually impactful. I mean we’ve eliminated a librarian at the middle school the Veterans School. It’s not that there’s two and there’s still one left. There was one librarian we have eliminated the librarian. So these are really really impactful, but we’re in this together and we just really hope that that 31 pants.

59:28 Trying to think. We’ve covered most of Lord discussing a meetings Molly brought up looking at kind of the full budget was very helpful to understand.

59:40 So yeah, I mean the transparency was good this year. It’s very helpful as we continue to grow our our newer members to Liaison community. So anybody have any other questions?

59:58 Yes, I can pull up the budget. How are the roofs? in process MSB area leakage probably their leaks. Yes, make sure it’s the same I have the motion here.

1:00:20 As a very much movement with that young man’s Greenhouse. He had a fundraiser about two weeks ago and is continuing on his goal.

1:00:34 Of meeting the financial need very lofty. I’m an eagle scout myself and I was on an executive Council for years and I’ve never seen one so Ambitious as this correct? Yeah. He’s an exceptionally a man. Okay, so I have up on screen. We really covered the main buckets pretty well. This is a very detailed line by line of their entire budget, but we covered the, you know differences between the level-funded and reduced services and kind of a categories and those are all of the categories that I kind of outlined in our meeting minutes and everything like that. But this I’m assuming is posted on your website as well for anybody that wants to follow up. I think I shared it before the meeting as well. And those

1:01:21 are the percentages that you know of those bucketized categories the larger categories that show kind of the the changes between last year’s fiscal year 23, and this year’s level Services which were not voting today, but we’re voting the reduced services to roll up into article 30. So just wanted to let everybody know that that’s the documents that I’m looking at just to make sure I Vote or make a motion for the right number. So if there’s no other questions, I’m ready to make. Version on the the reduced service to some of the contractual obligations like the i-Ready and some of the is that included in the reduced services. So that will continue for the no no. Yes, it is. Yeah. Okay. Okay. I just yeah, I didn’t know how that fell out. Okay. Yeah it is.

1:02:08 Sorry, Mr. Chairman you increase the size of the slide. Yeah.

1:02:15 Just a quick clear beautiful. Thank you. Sure on the on the retirements. It’s so that assumes I think when I originally when you were going to this process, I thought that would be someone would retire and then be replaced at a lower cost. Is that how it is or is it really the retirement is just That person goes away someone takes their spot and there’s one less person in the district one less up to you if you roller. Yes, and yes, some retirement positions will not be replaced. Okay, then other retirement positions would come in at a lower salary. Okay. And so your fourth grade teacher then you’d still have the fourth grade teacher you just would pull from maybe another grade or you would just have that fourth grade would just be much larger. There are two teaching positions at the Village School and

1:03:01 one teaching position at the Glover school. And so there would be one fewer section of third grade. Second grade at Glover and then two fewer sections I think of fifth grade because they do teams. Okay, so there claritis is will increase it is okay. Yeah, so it is A steep loss A retirements not a good thing. Yeah, so in a normal budget, I believe is it but not in this scenario the reduced positions in the reduced Services budget. My understanding is was it 37 33, so it moved by the four that’s probably what it is, but it’s about one third one third one third with retirement unfilled that we’re budgeted for last year

1:03:47 and then currently field position. That’s right. But as we discussed, you know, just because a position is unfilled doesn’t mean it’s not something that

1:03:59 the breakdown that you included by job function was this is very useful too just to show that it’s across the board. Lots of it’s not necessarily. in it’s not necessarily 33 classroom teachers, but still positions within District

1:04:23 Any other questions that guest number I had assumed in there that had to be natural gas for heating up. Yes. I got broad gas. Okay. Yes. Yeah. And be doing a lot of driving around Marvel and true. Yes. All right. So with respect to the school Department’s requests for their budget that rolls up to article 30 balanced budget like to make a motion to approve their budget request of 44 million 837,000 273 dollars. I’ll second that motion.

1:05:01 Approved Tim Groves Camp. Yes, Molly. Yes, right. Yes, Eric. Yes, Tara. Yes, Michael. Yes. Thank you very much. Appreciate it all the time. Oh Alec. Yes. That’s right. I made the motion forgot. Um, I don’t know if we’re supposed to do this tonight or not, but we avoided to approval both of our our budgets tonight. So we had wanted to ask. For the number that would be contingent on the two and a half override as well tonight. We’re Not Gonna vote on that tonight just something we haven’t been presented with the details. Okay. All right, okay, but we’ll be in a position at the warrant hearing hopefully so we would like us to reappear that

1:05:48 night or no. I mean, you’re welcome to attend. There may be a question that could be directed your way. Thank you very much. So you’re not aware of what the number will be in the override for your budget aware that it will service. We are it matches what the it matches what the select men put in, but we just officially voted it tonight. So we were just going to request that I Okay. Thanks. Alright, thank you. Thank you.

1:06:20 Thank you for the team effort this year too. That would really. really appreciated

1:06:27 All right. Let’s try them.

1:06:32 We’ll move. Yep. We’ll move the public comment.

1:06:40 Sure, come on up. Or speak loudly. Progressive and Marblehead to people I’ve done this before. Um, I’m a graduate of Marblehead high school and I moved back in 2000. I’m also an occupational therapist and just retired last June after 35 years. And so of course, my special interest is special education and I’ve worked with kids with disabilities for many many years pediatric therapist worked in homes work with families. I wrote a book. You know, I really have a background in this so I have a lot of concerns about any cuts of involved any of the kids whether it’s a regular

1:07:26 education or special education. I was a teacher before I was an OT and I think

1:07:33 In just a little bit. I’ve gathered from reading the paper. I have a lot of confusion about what’s going on, but I would like to first of all tell you that represent my family of whom you know have kids and in the schools and we really don’t want to see any cuts and education and I think that the town in general if you look at the response to building new schools swim fantastic, I mean when the school districts I worked at Massachusetts I moved back here in 2000. It was at Manchester Bay to see it forever to get a new elementary school there. And you may or may not know that but we worked with leaking roofs. I came into

1:08:21 my room a couple years ago before I retired from Manchester and I went back to work later. But and the custodians had a hose coming out of the ceiling and a great big trash can to catch the water and So I don’t I don’t think too many Otis are working in conditions like that. But this town we build really nice schools and we have great teachers. I went to a good great college and so did all my sisters and my brother and you know, so I think we just have just a lot of feeling in this town for supporting things for our kids and that includes our Sports programs that includes like ice skating just all the fun stuff that we did when we were kids here.

1:09:07 So so I just want to say in any way that I and my family can help. We want to make sure that we get it the word out there support the overrides we’ve got to do it. So I think that we’ve got great leadership in this town and it can be done. But one question I haven’t concerned that I have is putting the two. Parts together the you know, the approving the override for the town’s systems and then having the schools go in on that too. I don’t really understand it. But maybe we just need more information out there because I have two master’s degrees and I don’t know what’s going on with it with this particular issue. And so

1:09:55 I know that the information isn’t out there can anybody really explain? I don’t know if you want to do that tonight or you want to just put that on to another meeting, but can you explain a little more? Clearly? Why you think it’s a good idea to put those two things together into one vote one issue to vote on? Well, I just want to make clear that the finance committee is not developer of overrides, but for my perspective. This override that’s being discussed as we’ve been listening into meetings is an override to balance the budget that comes out of, you know, property taxes that impacts all departments the general fund, right? So all departments are supported by the general fund including the schools roughly 50

1:10:42 to 55 percent. I believe is the math about that a couple but it makes sense to to look at an override that would address all departments that are impacted by the same Revenue stream. Would be one yes, but I think what my concern would be if you kept the two votes the two issues. separate votes If people had issues with some of the Town things at least we wouldn’t be.

1:11:16 You know reacting to the school issues. So the school needs and I just really feel this. I mean, I’m retired obviously. I’m on a fixed income now, but I would still vote for an override. I mean heck, you know, we we really need to support the kids. I don’t really think anybody has has an argument with that. So I’m afraid if you bundle it together. You know people aren’t going to go I think people are a little bit lazy and they’re not going to go through every particular need for each department in the town. But I think most people get it with the schools. I think they understand this town. That you know, we need we need to come up with the money for the kids. We all know that during the pandemic

1:12:02 the kids lost ground and they haven’t made it all up. We see it in the standardized test scores. And we know we have a lot of really bright kits here and even kids that had it needs supports for reading and and things that we service with special ed. I mean a lot of those kids are very intelligent and once they get the right kind of teaching that works for them. They take off I’ve seen this I’ve been in school. I’ve been in more than one school district for a long time and I’ve seen the kids where I work with them in preschool by the time they went as a high school. You would never know they had special ed support. I mean, I don’t you know, I don’t think too many people know that but kids do not have these ongoing needs their whole life. And they can be really significant disabilities when

1:12:49 they’re little guys like three years old and they look great when they go into high school. So I I think that we just have big hearts here. We know we can we need to spend the money and I just don’t want to see that not happen because we don’t look at like how people are going to perceive having this great big bundle together. I think the other side of the oh, yeah pretty important as well. Oh, I think it’s important too. But I think the kids are our future and we were really we just have to put them first. That’s my opinion. Okay, but thank you. Thank you.

1:13:30 Sarah yes, Sarah gold nine Reed Street. I’m a member of the school committee and also a parent of two boys in the public schools here and

1:13:41 I just have to say that it’s really it’s really difficult to hear about gutting gutting a department in one in one area of the town but that it’s less of a gut in another area of the town. You know, I stand by the votes that I have taken on school committee and I fully support the fact that we are going with a limited ask this year. I think that you know across the town this is what needs to happen and it’s really important that we are all working together. If you ever watched me talk about the budget in a school committee meeting that you will hear that from me over and over. but it’s really hard when I have to tell a student that they’re not going to have access to their freshman sports or that they’re

1:14:28 going to have a more difficult time getting their teacher to answer their question in their fifth grade class. because we had to gut some of our departments And we are one Marblehead. That is one thing that I continually say over and over but it’s much like Sarah mentioned with the special education. We don’t want a situation where special education children are pitted against regular education children. That doesn’t benefit anybody. We also aren’t benefited by a system where one Department in this town is pitted against another department in the town. So when one Department isn’t asked to give up anything, it’s really difficult to sit back and

1:15:14 listen then as we’re talking about what we’re being asked to give up and again, I stand behind the votes that we’ve taken and the work that’s been done, but it is just I just needed to express that that is a difficult pill to swallow.

1:15:32 Thank you. I do think I just want to remind everybody that we have not been presented with the full details of the override yet, and there should be significant Cuts in other areas as well to be reviewed.

1:15:47 Yeah, Jen Schaffner online. I think can you hear me Alex? And I yeah, maybe speak up, okay. Okay, great. Sorry about that. I just I not usually one to have a quiet voice. So anyway, I just have actually not really a comment but actually doing kind of event but a question or series of questions on some of the earlier presentations between assessors and Cemetery, so I’m just trying to understand where The how I would go about submitting those questions. Should I be sending them to fincon to the administrators? I just yeah had some questions on those. You can send through the town admins office, but you could also submit through

1:16:34 fin calm. Okay, I don’t know that the income. Email goes to my email, but I could I could follow up and provide you my email. If you have specific questions, that would be great. I also do have questions on the revenue side particularly sort of the the history of the Chapter 70. It’s a little surprising to me that there’s confusion on the funding of Chapter 70 as well as how that’s been allocated to the schools. We’ve had a you know, it’s been pretty clear for the 20 years. I’ve lived in town. So again, I have some questions on that. So I don’t know whether that should go to fincom or to the town or to the finance department.

1:17:16 It’s probably through the finance department first. Okay. Okay, great. So that was it really was just some questions. I had I think to the point made just a moment ago by Sarah gold. I will say that. You know, I understand concern around one Department versus another but I think from my perspective having been in the financial world that it’s understandable with economies of scale right that you’ve got one Department that has literally tens of times the budget is some of these smaller departments that there are no economies to scale in the cemetery and assess you really I understand. It’s clear that you really aren’t in a position to cut make Cuts there where you’re cutting 25 50% of

1:18:01 their Workforce. So I mean, I think that in the savings would be Minimus compared to your larger budgets which obviously other school and the town and the town side the government so You know, I think that that’s understandable. The route that you’ve taken that way, but I will follow up with my questions. I appreciate it. Thank you. Thanks, Jen. Appreciate it. That’s the last of the hands online, right Kyle.

1:18:30 Unless anybody else in the audience has a question. Again, thank you to everybody that presented tonight. This year’s process has been difficult so far, but everybody’s in it together and it’s been a really smooth discussion in each meeting and and we’re happy to be moving along and and have approved a few budgets and we’ll be we’ll be back next week for our second of two budget hearing nights. It may be a long one due to some scheduling conflicts because we’ve got the rest of the Departments and then the warrants hearing will be the Monday after that. So that’ll be announced soon. I think Kyle is gonna post the official announcement tomorrow or the next day on the warrant hearing and then About two or three weeks until town meeting so between the warrants and town meetings. So I’d like

1:19:15 to make a motion to adjourn unless you all in favor. Thanks again.