Select Board: February 1, 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.

0:01 All right. I’d like to to call this meeting to order. Thank you all very much for coming tonight. I’d like to announce that the meeting is being recorded and videotape we assume so we have you know participants online as well and our agenda is pretty straightforward tonight. We’re going to start with the state of the town. The town administrator will go ahead and give that presentation.

0:31 Yeah. If folks that are participating remotely could please mute themselves. That would be very helpful. Thank you. We ready.

0:45 Okay ready? Well, good evening. I’m Thatcher Keyser Town Administrator here. and Marblehead and I’ve been here what six almost seven months. So it’s already been an adventure. So what I’m going to present tonight as the state of the town. you’ll probably see it’s a little bit different presentation than Then the ones in the past. Part of the purpose is to focus in on the information. That’s very pertinent to kicking off the budget process working with the the select board the fin common others to provide. What I

1:33 hope is specific information or guidance or contacts that’s needed as we start this journey into the budget process. So with that we’ll begin. Kyle do the slides anytime I get involved with any organization in the military civilian, wherever I always have to ask what I think is the pertinent question. Why do we exist? Right. It’s the mission State and what’s your mission? Why do you exist? So I put the answer. I found it on a Maryland website. The one I like best basically a municipality is a corporate political entity organized by the residents.

2:20 Of an area to operate within a geographical area, which is Marblehead for the purpose of and embold providing Public Services. So I doubt anybody can disagree with that statement we exist to provide public services and given the fact that we’ve been in business 200 300 years of doing this everybody agrees. It’s a necessary function that we perform for for the community. So the next question next slide

2:56 um it after so what do we do? as a municipality so in my world am I thinking of municipal government? What we do is five core services for the community. And I lay them out on on the graphic. So public education. Public Safety infrastructure, so that’s providing roads water sewer all of the the facility the the facilities buildings. I throw Municipal Light provide infrastructure for the electrical power to to the Community Land Use control managing the use of land and

3:43 that’s done through zoning planning functions of that sort and finally Health and Human Services. Municipalities provide a certain set and so what I’ve done in this graphic, those are the five five course services and I list the Departments the Marblehead departments. That perform those functions you will notice some departments show up in more than one part of the graph. Engineering as an example they’re involved in. infrastructure helping that they’re in involved in land use control boundaries and things that sort. So those are examples of in multiple places. You’ll also notice so we have recreation

4:29 in parks. One Department. I list the parks under the infrastructure part because that’s what they do. They handle the infrastructure primarily in the recreation side. Handles, the Human Services running activities and such so all of those five functions of municipal government. Are directly involved in the service delivery component of what we do. So that that’s the customer facing resident businesses facing delivering of services for the municipality. now for any organization to run and run well You have to have Resource Management. So the block underneath that is holding up.

5:15 The five core functions is finance information technology and Human Resources. Those are broad-based. They cover the entire all of the the areas of the community. It is critical that we have a well functioning ability to do resource management at that level and then finally underlying all of that. Is executive management which provides policy and strategy? And the example here would be the select board the school committee for the library be the library trustees. I throw myself and the superintendent under we’re agents of our various boards, but that’s executive management which provides policy and strategy. So that’s what we

6:02 do. And the reason I go into this is as we’re starting to make financial decisions. I’m hoping to illustrate that we have all these core Services all these functions. They all need to be performing because they all. each play a critical role next slide So finally the question is how do we do it and and the short answer is resources and I list and in the list probably could be longer. But as far as resources number one employees, we can’t do the job unless we have the people in place to do the function. We need Equipment Technology and vehicles to do it public works

6:47 is not going to do a good job clearing the roads on a snowstorm. They don’t have trucks implants. So well, those are resources. We need the facilities that we work from that support our ability to provide the services. I list information and knowledge. I look at that as professional development. It’s networking. It’s it’s also Some could say it’s part of the technology. It’s our databases. It’s the content of information within technology and other means that we need to help manage the Affairs. I look particularly, you know finance department Human Resources. We need you need information and knowledge available as

7:36 a resource events. I read that somewhere events is trying to cover a broad area. But it’s it’s the this is an event where there’s a communication that’s happening from from the town to to the public about critical matters. But I also include sort of part of professional development events is the professional staff being able to to interact with their peers and other communities where they they learn information and and gain gain more knowledge. So that covers the whole interaction between people Um time is a resource. And so when we think about managing infrastructure projects

8:22 and Road improvements and things we we measure time and in years and months for for projects like that. If you would ask the police chief and the fire chief what’s their measurement for time? It’s in minutes and seconds in in the business that they do and so as an organization managing a resource of time to allocate the means so that in the example of minutes and seconds that we have the ability to do the job that they do within minutes and seconds because that’s sometimes life and death critical. And then finally the last section is funding and that’s what we’re here about mostly that’s a big resource that needs to

9:09 be managed and we’re going to talk some more about so that’s money. So next slide, what we’re going to do is now talk about revenues and then following the the revenue picture. We’ll talk about the expenditure picture. It’s a bit of an eye chart up here. So hopefully you can follow along on the printouts. And I’m going to I’m going to quickly and officially kind of walk through what we’re looking at here mostly focused on fiscal year 2023, which is the current fiscal year that we’re in. And what we’re starting the process of is developing fiscal year 2024 numbers. So this is and what

9:55 we’re looking at is strictly the revenue side. This is the money calculating our best estimate at this time as to what our revenues will be that will be available for us to build a budget and expend so quickly walking. I’m going to go down 2024 column at the top the 70 million and change. That’s basically your base Levy. Your Levy is your tax base plus two and a half which is allowed under the prop two and a half law gives us a 70.9 million. new growth typically estimates have been usually based on around 300,000. There are some projects that are coming to fruition that

10:43 are that are bringing in additional funds. So we’re estimating about 450,000 in in, New Growth. The next line I debt exclusion the 10.7 million so that that is for debt approved that town meeting. There is an equal number on the expenditure side that washes it out. But that is the additional property taxes raised to pay for specific debt when that debt matures. That that Revenue falls off in that expense falls off. So that’s what that represents. So our total property taxes. We estimated 82.1 million. State aid now.

11:29 State aid is we’re all waiting for state aid figures from the state. At the MMA conference two weeks ago. the governor spoke and and Governor Healy typically at the MMA conference a governor will announce their numbers for local Aid that they intend to put in the budget it goes through a journey of having to go to the house and through that process to the Senate and then conference committee before it’s a final number but usually the governor’s number is the first indication for municipalities is to whether it’s going in upward direction or downward Direction depending on economic factors and such. Um, the difference is in in the first year of a new Administration. They are

12:16 given an extended amount of time to file their budget. So as Governor Healy stated March 1st, she hopes to put out local Aid numbers for us. So in the meantime, we plugged in a number of which represents about an average over a number of years in there and let me let me I should have said the beginning a person who helped very much with these numbers John again. We keep pulling them back from retirement and and coming in. So he was absolutely invaluable to me to be able to pull in the historic numbers and do the calculations to provide a basis of of this information. And then Cherry that’s that’s still the local Aid.

13:02 And again, this number is based on a 1% increase. It’s an assumption. My my optimistic view is

13:13 given that the Commonwealth of mass seems to be flush with cash and you have a new Administration that wants to make good. I am optimistic. It’ll be a greater number than that how much who knows but I prefer to start with a conservative number on the revenue side and and move upward then have to go the other direction. So that that gives total state aid estimate 8.2 million. local receipts now we’re going to have a little more conversation about local receipts. Keeping it is the same number as last year.

13:50 If you go back under the fiscal 2022 column, you’ll see that local receipts was two estimated. These are estimated local receipts 2.7 million. And then for fiscal year 2023, it was bumped up to 5.5 million. Now when you’re building your budget on this you’re going to use estimated receipts typically that are below actual receipts and a lot of communities what you do for your estimated receipts and a new fiscal year is you just use your actuals from the prior year and carry forward but in my old head historically the local receipts have been held lower than the actual receipts. and the difference between

14:36 What was actually collected in the estimate has been a big part of the funds that are rolled over into free cash the following year? So the two ways you create free cash is you underestimate your revenues as what this is doing. Or you come in under budget on your expenditures and again the difference between rollover and primarily becoming a free cash. The reason I point this out. Is the increase from 2.7 to 5.5 last year? By doing that has actually decreased the available free cash for this year. So so you use it up by increasing that you’re you’re hitting your free cash. We’ll touch that a little more 35,000. It’s

15:22 just some available funds that are transferred in I think some Cemetery funds and a couple small items.

15:31 The next category funds to reduce the tax rate. So these are other outside sources of revenue outside of the tax base that are transferred in that then help offset the expenses and therefore

15:48 Those expenses do not need to be covered by by taxes. So it’s funds to reduce the tax rate estimated at 8.5 free cash that first item, so. It has free cash has been a upward trend for five six seven years. It’s been a topic of discussion in these presentations in the past as at some point in the near future. We’re gonna we’re gonna run out of free cash. Or we’re going to have a significant decrease in free cash that has happened for this year. So free cash went from 7.2 to 8.8 and last year 10.2 million dollars drawn from free cash used for the

16:34 budget. So one there was an significant increase in the amount of free cash use which means there’s less. Free cash that carries over from one year to the other. And going back to the local receipts. Because the upward adjustment of the estimated local receipts shrank the amount left over to come into free cash the best guess and again, I asked John mcgint to help pull this together. He had been doing it here for a whole number of years. This is the 8.5 million. It is an uncertified number it it has to go through a process with the state DUI. They’re gonna look at a number of factors and

17:20 and that number may swing to our best estimate. It may swing, you know, one of 200,000 up 102,000 down, you know sort of the magnitude, but we’re gonna plug in 8.5 million. Which is down 1.6 million from the prior year. Municipal Light Surplus is traditionally been been. Contributed to to the funds and then finally water sewer Harbor and general government transfer what that the 305,000 represents an estimate or the 333,000 of the current fiscal year. Those are our how do we do it the services that the municipality provided to the Enterprise

18:07 fun accounts and therefore they’re paying us back for the services rendered. So that’s in this probably Services it went in different directions and they get netted out but that’s how you account for the general government funds being used on the Enterprise side as well as Enterprise funds being used on the government side. This is a Reconciliation to at the end of the separate separate the funds and account for that. So That leaves that that line to 9.1 million for total funds to reduce. So that leaves total revenues. We have in order to develop a budget for 2024 of 105 million two hundred fifty seven thousand six hundred forty

18:55 two dollars. That’s the current estimate. Today that we’re working from that leaves 1.361 million dollars.

19:10 To address any increases in the budget with the revenues we have which represents only 1.3% growth on the revenue side.

19:25 next let’s talk about expenditures. So this is on the expense side now I’m running I have three slides that run three scenarios. Because we’re very early in the process the department heads. Have been submitting their their budget requests deadline was last Friday.

19:48 So so I’ve looked through some of them so we don’t have sort of a compiled exact number of you know, cost increases such so working with John John and I basically said let’s apply. a cost increase Factor and let’s run three scenarios an optimistic. A middle of the road that we think is probably as close to reality. I guess a pessimistic line right a high-end. What I wanted was a range of what? We can expect for our cost for the next fiscal budget. So the first scenario the optimistic is let’s assume operating budget general fund increase the cost increase by 3%

20:37 Now we already know that our collective bargaining agreements were entering year three of three agreement two percent. Contractual increases there will be some step increases and other increases so it’s slightly more than that when you when you calculate it out. So that’s that’s slightly below the 3% There are other cost factors, for example the health fund which is about 15 million dollars. We’re waiting for the GIC to publish what they believe will be the the increases for those costs. They have not yet. So we we don’t know at this time what those costs the point being there’s going to be some cost increases that are going to be lower than what we project in some higher as

21:23 we move forward over the next week since or so all these different, you know, the GIC and others will start putting out what their expectations are. But under this scenario 3% and to go down the list. So again Debt Service 10.7, which is the exact same number on the revenue side. That’s the wash on the debt exclusion. Um, so total time meeting Appropriations estimated to be 103 million. cherry sheet offsets That’s just cost back on the Terri sheet from the state snow and ice deficit. That’s that’s been a consistent number of carrying a deficit of 200,000 week. We budget 100,000 snow and ice is is one of the only

22:10 line items that we’re legally allowed to over expend. And then you’re allowed to carry it as as a deficit over to the next year. It has been my sort of operating theory that you don’t want to grossly underfund that line item because then you get a grab from somewhere else to backfill it. You don’t want to overfund that line item because as part of the ability to over expand you can do that so long as you never reduce the appropriation, once you reduce the appropriation, you cannot over expand and so what you don’t want to do is put too much money in the account have it stranded even though it will show up as free cash following anyway, so that’s that’s going to stay consistent.

22:58 State assessments Charter School tuition driven by enrollment both on the reimbursement side on the cost side. So the schools track very closely on on those numbers.

23:13 And I I think that number is driven from it from an average over a number of years to plug that number in and we’ll work with the schools to adjust that number as the information becomes more available other state assessments cost for other things. I think that’s like mapc Metropolitan air Planning Commission. They get their funds MBTA those type of chargebacks to the state. So total assessments. We estimate 2.8 million overlay 300,000. That’s the pay for property taxes not pay that that the assessors control that to cover that so bottom line with a 3% change 107. million in expenditures given

24:01 the estimates on the revenues with a with basically an optimistic 3% increase in costs puts us at a deficit of 1.77 million dollars. For the budget if we move on to the next slide. I don’t need to repeat all the line items. This is expenditures operating budget. Costs increasing at four and a half percent. Which work with John is probably we think closer to the reality. When we run the numbers, the total costs are 108 million that leaves us in a deficit of 3.13 million. for next year and then

24:47 the final scenario, it’s 6%

24:52 What’s our cost at 109 million which puts us at a deficit of 4.4 million dollars.

25:01 So those are those are the numbers based on our current assumptions in place. next slide what I done here is run the numbers out. This is running the 4.5% scenario over the number years and I just list the total revenues. I have four years back. So from fiscal 2020 to 23 actual numbers. With with the balances but starting in 2024 again at a increase of 4.5 percent assumption. With on the revenue side some conservative assumptions of how the revenue is going to grow 2024 3.1

25:50 million. Deficit 2025 7.9 million deficit 10.6 million 13.1 15.8 The numbers give bigger I think in in the real world, you know, 4.5% may not, you know straight line across not likely to be the scenario. We are hoping given, you know, the what the feds are doing today on interest some indication that the economy is is slowing down inflation will come down. It would it will improve those numbers but they’re definitely still going to be negative and they’re still going to be sizable even with a positive economy. next slide

26:40 so I want to go over. The double side I have to have three from there. So. I tried to make a list of some of our current challenges that that we’re working on in regard to managing the budgets. and such so

26:59 Thank you new free cash is now in Decline, so the point has come Where we are not replenishing free cash at the rate that we’re spending it. And that’s driving a big part of the deficit. So it’s it is significantly hitting revenues. As I mentioned GIC health insurance rates the increases still I know and again that’s up 15 million dollar line item. and I wouldn’t be surprised if the increases are in the seven to nine percent range. on that we’re in year three of collective bargaining agreements. So we know what those costs are the 2% increase Factor, but what we’re

27:47 what will be coming into for the next fiscal year is all three collective bargaining agreements or expiring please fire and Municipal Employees as of June 30th. So we will begin negotiations in this fiscal year on that.

28:05 I list Workforce Recruitment and return retention challenges. We all see it in. The private sector public sector of the upward pressures on on wages Collective rule is in the administrative policy not near the teachers, but I commend hello men. Excuse me. If you could please meet yourself. Thank you. Thank you for advocating to the teacher already. We’re meeting as a scheduling committee today. So up the you through as I said, excuse me. Whoever speaking on the line, please. Please mute yourself. Thank you. They’re multitasking. Sounds like thank you.

28:46 So recycling disposal fees are increases all-time high of 95 dollars a ton that’s having an impact on on health and waste budget and then that’s before. The contracts over there expire in a few years and and those costs are expected to go higher. But for this year coming up disposal and trucking class are up.

29:10 One of the things one of the challenges is we need to upgrade our general ledger and other Financial software applications. They are critical. They are failing in my opinion in making it very difficult the accounting department. They got all the information everything’s being accounted for but for all of us outside of that department has myself the system is old and slow and it doesn’t give us the ability to have real-time data, you know readily in front of us. We need to have that to manage this.

29:44 When I’m asking for we need to centralize and professionalize Human Resources function. We’ve got to make sure we’ve got meet all our compliance issues.

29:54 Centralize it makes it more efficient right now. We have however many department heads. That’s how many resource directors we have. The function is dispersed out to everybody personal records that just burst out and they’re probably very degrees of knowledge awareness and and currency on those Mass. We need to centralize IT and management as well as as we enter to in into contract negotiations with the collective bargaining units and the PC the personal employee committee section 19. This is the group that’s formed in order to negotiate the healthcare plans. So that contract expires at the end of this next fiscal year. So having an

30:40 HR person becomes the key resource person on information and Analysis and such on all those matters that really make a difference in negotiating contracts that that balance the the employees but the the towns needs and finally the condition of Municipal facilities We are working on a number of roof projects based on the debt exclusion that passed it last town meeting. My point is there’s much more work to be done on that. So those are current challenges that work on next slide I gotta put the good news in there recent recent successes. One we hired a new Finance directives starts

31:26 in March Alicia Benjamin sitting here on the front row. Can’t wait for her to get here. We recently hired a new treasure collector who starred in December another key position that where that was vacant in in transition. So from from our finance perspective of managing all these Affairs. Those are those are two key positions that have been in transition from far too long. We’re putting the pieces in place to have an All-Star team. We are now onboarding a budget building software clear gov the turn on turning it on is eminent. We we’re doing the final quality control of the data that’s inputted into it working with

32:13 with the clear gov folks turn that on and that’s a tool that will help us develop the budgets that we need much more effectively richer in information right now. We’re doing spreadsheets all over the place and trying to link them all back together. You spend more time trying to create make connections rather than reading the content and making decisions on the information. Clear Google will improve that situation for us. We’ve also migrating. We’re in the process. I’m pretty sure we’re almost 100% or if not close to it migrating all employees to Office 365 software. One if you have old software, you

33:00 have vulnerabilities. We need to make sure we’re not hacked and and closed down but also puts everybody in a common platform. It gives us some enhanced tools productivity tools. So we’re all starting to learn teams and and all the collaboration tools and data management tools that come with it. So additional productivity. We’ve also established a professional help desk support for employees. This is for all our it needs so through we plus we put in we have we have an individual in person located here who helps with that technology problems plus we have the help desk that you call in email in either way and and work whatever technology issues you

33:45 need done. We had a very successful sale of bonds for the the the debt exclusion for the road sidewalk building improvements that was approved that town meeting. We we went out in the street for half of the amount there was approved and that’ll fund projects for the next couple years. And then sometime in the near future we’ll we’ll go out and bond for the other half of that as we manage the projects over time. And again our town Bond raining remains it Triple A at this time. So those are all good successes. next

34:23 what are we focused on? The fix as I mentioned having a full finance department team in place and actively developed Financial systems sustainability plans. In other words the challenges that I’m laying out in the earlier charts. The first step to success is we have to have a team in place that can help us get through this this financial Challenge and that’s that’s what we have come in place. We are looking at migrating to a new general ledger payroll human resource cast management and collections information system. Like I said, the challenge we have is our system is failing. We we’re looking at the same vendor and upgrading and

35:10 adding in a number of these additional tools. to to just stabilize our information systems and I have I have somewhere Below on one of the bullets.

35:26 Move the administrative staff responsibilities away from paper shuffling and into information and policy quality control. So that ties into that that software piece and what I mean by that is we have many many processes that are paper driven. And all the inefficiencies of paper systems, we need to move those systems and our employees are pinned down and their function is moving paper. From one part of the process to the another we want to move into these Information Systems. That will handle the processing for us. So the employees are less about making sure a piece of Paving is from point A to point B, but that the content of the information that we’re reviewing they’re

36:13 doing quality control that it’s got the right information and you know, the policies whatever policies are being followed. It’s more about quality rather than being being paper movers and and we we need to migrate to that another reason I harp on this. Going back to Workforce recruitment young people coming into the workforce. They don’t want to shuffle paper. That’s not their thing having the technology systems that are current and modern will allow us to attract high quality. Young people coming into the workforce in in working that environment rather than rather than the the paper-based environment.

37:00 So next. Again, building better Financial tools. So having having the applications in place what I want to have Is information especially financial information for me for all the department heads for anybody who needs to be part of that process. We need the information to be real time. It needs to be transparent meaning all the eyeballs that need to see it can see it. It needs to the information needs to be understandable. You need to be able to be able to look at it and have it simplified in a sense that you understand what you’re looking at and by doing that you can make it actionable information. We can look at information and and make decisions of what actions we need to take and whatever the issue is.

37:47 Because the information is there it’s current real time. We can understand it and we can act on it. That’s the critical criteria. I believe in in all the systems we’re doing.

38:00 better Asset Management

38:04 trying to develop and stick to a discipline lifecycle management of our resources. So that’s Rolling Stock. That’s Vehicles trailers. Things are buildings our information systems in our infrastructure. Develop a methodology that I guess the old school Municipal approach. You know, I’ve been around a while I’ll pick on the police is let’s run the Cruisers into the dirt and when when the wheels fall off then we’ll get you a new cruises. And and one of the the lessons in Amesbury for me of why we don’t do that is two o’clock in the morning domestic. Call emergency call. That’s when we figured out that our cruises electrical system was going to fail.

38:51 And in my you know in public safety world, we don’t need to find out that thing, you know things are going to fail when they’re responding to calls. We need to put them on. a life cycle system in rotate critical equipment on a regular basis and then we can better manage the cost on the long term by leveling out the costs in the system and not not heavy years of high cost to replace everything and and go years of not improving our infrastructure. So a discipline lifecycle management approach finally stabilizing free cash. Building our reserves and increase in level Levy capacity over time. We got to fix our structural deficit. That’s what we have. We have a structural deficit. We need to work our way out of it.

39:36 And part of that is increasing New Growth Revenue through through smart development. most municipalities the lifeblood is New Growth Revenue that makes a difference to To deal with your financial challenges and final slide. the big question override and it’s purposefully put as a question. What I have said publicly and in my conversations. My intent is to develop a balanced Town budget assuming no override. I have to do that. I cannot I cannot presume the will of the voters what may happen. I have to have a real budget ready to go that assumes

40:22 no override that. We have to build it with the revenues that we have. But we have to develop at some point. In conversation with the with everybody develop override scenarios. So this possible scenarios are there is no override. Or there is a limited expense growth property enough meeting an override. Just just to plug the structural deficit. And and allow us to live with the with just prop two and a half a new growth revenue and fill that covering structural deficit. Or override by manual covering additional priority service enhancements.

41:10 If there are things that we don’t do now that the public says we should be doing do we do that in addition to structural deficit fix. So those are all question marks on the end. We need to have public discussion. If override the other components are for what duration do we address do we try to fix the problem for one year? And then work on a plan. following that do we try to come up with a fix that fixes us for a five-year period Big difference in numbers by doing so but that’s the conversation. We need to have and what are the parameters sort of

41:57 similar above? What are the premise for? What should be covered by the override? What what’s the rules we want to put in place of making the decision of what should be or should not be covered by an override. So we need to have those those conversations. So this again the completes? the presentation but I think starts the process my intent was to give you the numbers real numbers as they are. Good bad or whatever. I it is my belief in the way of function.

42:33 You know, you need to make decisions based on good information. And you know, if we candy coat the information we can’t base future budgets based on bolts hoods. So with that I conclude my presentation pinning any any questions from the board Thatcher. Thank you very much just for everybody’s information here. We’ve got a two-part agenda tonight. The third component will be public comment. So we’ll have an opportunity after we go through the second agenda item. But in the meantime, there’s the board have any comments reflections. Great.

43:14 job, you think Patrick thank you very much for that. Thank you. You got into the detail and you also laid out the the priorities that were focusing on so that was very very helpful. Thank you.

43:26 Okay, don’t sit down for too long unless you.

43:32 So the next part wait, I have a question. Yo, please. Oh, sorry about that. Nobody make sure so are you moving on to two or are we discussing his presence but I think we’re discussing his presentation then moving on to two. Okay, perfect. Okay, so I have some things I definitely The first of all, thank you. For addressing that I appreciate that and to I’m just gonna look at my notes to make sure right cover everything. Um Alright, so a couple things. I know that took a lot of time and you’ve been doing a lot of outside work, so I just want to acknowledge that first. And I just want to start with you know, personally, I’m a little bit frustrated just as a select board member and obviously also as a taxpayer just you know, looking at a structural deficit as

44:17 we all know, you know, we’re staring down inflation Rising costs and you know discussing this can be a hard conversation for everyone and you know, I have spent a lot of time in the last several weeks just reviewing the budget and you know, I’ve gone through reviewed every budget that was published, you know since 2004 and now, you know staring down at 2024 so, you know, 20 years of budgets and just understanding where things have been going and what we’ve been doing, you know, whether it’s known or not the last you know, General override was 2005. So just to kind of put things into perspective, you know 2005 until right now. So in 2005, the iPhone was still being developed, you know, we were still using your blackberry

45:03 or no Kia. We’re now on the iPhone 14. So just a little You know thought process and where we’ve gone to where we are now. So, you know in just with that rising cost you need a dollar forty now to do what you could do with the dollar in 2005. so, um You know, I think. for me we keep talking about a balanced budget and what that means but really we’ve known that there was this clearly shown this significant shortfall coming in 2024. And you know, we’ve been using free cash to bridge the gap. And you know, this was to my knowledge. That was what was projected

45:51 as we were looking at those financial reports over and over and over again and for the financial management policies from the division of local services and what my understanding was in relation to what the recommendations of the policies for free cash and how that should be allocated as one-time expenditures capital projects replenishing reserves. And there’s also, you know a premise within that to State a need for a policy to restrict the use and how it’s allocated. And you know, I think it’s important for the select board. It’s one of our duties to assume that role in any policies. We know with the broad implication on the town finances including obviously a free cash policy tax implications stabilization funds and

46:37 so, you know doing in going through this It seemed that you know, there was this nowhere policy for utilizing that 40% or more of that cash in the to balance the budget. So that’s you know, what we’re looking at right now and I believe it’s important to have a sense of predictable Taxation and that long-term planning so You know, that’s where we’re Landing right now. You know, it’s is one of the hardest things that we have to do. But you know, it’s been the predominant decision. To balance the budget with a free cash knowing that option, you know wouldn’t be sustainable. So here we are in 2024 kind of looking at what do we need to do? So really we’re looking at strategically planning and a responsible

47:23 way. So we need to keep up to date with the capital Improvement plan with the five-year Outlook that was you know, really a thorough process has been done within the last several years and looking at, you know, planning in that way which is, you know, a good process through for the town. And really potentially looking at options that you know, special purpose stabilization funds funding that that you know, I think we should advocate for one of the things you brought up which was on my list which was great was, you know, quarterly public meetings kind of a financial Summit and developing those strategies, you know, involving the towns the schools the public the the finance committee and you know, collecting those input and bringing that

48:10 together. So we’re making, you know these decisions holistically and you know, it’s our job to kind of stabilize this process and I think it’s important to acknowledge, you know that we’ve had turnover in the finance department clearly the treasurer payroll Administration Town administrators, but I also think it’s important to note that we’re not unique like every town has turnovers. I think just on it really underscores the need for this board to take an active role and ensuring we’re in line with the best practices of our financial. management process and you know, I think the difference in Other towns potentially is when if we’re following best practices with those codified policies and procedures then we’re better able to weather the storm, you know

48:56 at a certain point we have to stop relying on the generosity of John McGann to come back and kind of write the ship, you know, one person’s institutional knowledge is not going to keep us afloat. So, you know the ship needs to function on its own some proper sales. So now for some good news, but so I think it’s important to also note that the board was supportive of the gfo A and the process of really taking our budget working through that transparency process and all of the department had to who did a lot of work of building that and going into that framework and part of that framework, which I wanted to point out tonight was that page 20 Page 249 is on the website but covers, um, you know, a whole draft of financial policies and you

49:44 know, it’s many many pages long, but you know, Covers things such as Reserve funds stabilization funds proper recommendations for the use of one-time funding. You know, I think it’s it’s our job here in my opinion to make sure that these go from the draft format of what we adopted into implementation and utilize what the framework is that we you know, as a board said, hey, we you know, we brought this forward with some really good sound fiscal management policies. Now, we need to take and Implement them and create these types of things and you know, the only thing I would add is just additional Thoughts with this would be just with the free cash policy that’s in here. even just additional things of allocating like

50:31 percentage of what’s going into capital accounts what’s going into, you know past employment benefits stabilization to grow Revenue, so, We’re utilizing some of these things. It also talks about this in the document of you know, special purpose stabilization funds in relation to Capital Improvement projects and just you know for the public as well, like one of the examples that DLR gave which I found helpful was like something, you know, if their Town needs a new fire truck, for example the idea that’s in your Capital plan, you know, it’s coming that you have the ability to use these funds and then you can derive growth off of it as opposed to, you know, get hitting on the interest from the borrowing side. So as we’re looking at some of the news that was

51:16 presented tonight. I just wanted to highlight the other side of it that some of these things are in play and you know, I hope is a board we work towards making sure that we get them implemented and carried through for where we’ve gone so far with it. Thank you. Just a point of clarification. We have had Financial policies in place since 2014 that draft is an update to those and additional but to your point. Yes. Something definitely more comprehensive. So just clarify that. Okay any any other comments? Yes. I was just hoping so for the percentage change in Revenue. This year’s projected to be 1.3% um, and I’m sure that I I’m assumed assume that that’s like conservative number, but that could also

52:03 we we could it could be less.

52:07 I think Yes, it could but I think it’s conservative enough and a lot of these. Revenue numbers of Fairly consistent it is far easier to calculate like the property taxes that that’s that’s formula right up two and a half formula the new growth is the variable there. State aid is is the largest revenue source that has the most variable. numbers, okay, and so, um, but just like for people that kind of put that into context how does that compare to you know, what we’ve traditionally been seeing it which including which including our alliance on free cash like

52:54 just so people can kind of understand what that means like as compared to like so last year if you include like property taxes, New Growth debt and then

53:04 Free cash and the things that you know, like that’s because that’s what we’re talking about. so, you know in past recent years, is it fair to say that like the percent change in Revenue that we’re budgeting like that we’re seeing is like three percent just so people can understand really good question. And actually that’s when I talked about that earlier if you want what that like because 1.3% in in isolation. I just I mean, I I know I just want to kind of because we have so an audience here. If you could just kind of like put that a little context around that for folks. Yeah, I think what it’s it’s around 3% I think I had 2.9 was my math for the for the past year. So slight fluctuations and again.

53:50 The revenue side other than the state aid fluctuations. The rest of it is fairly consistent to project. You know, it’s on the expenditure side that that are the bigger numbers so

54:05 yeah, and the biggest change I mean if you look at on the revenue chart at the the bottom of 2023 that the seven million number represents the increase in revenue from the prior year. Which was a huge jump seven million dollars of money additional money available. But where did it come from? Right it was bumping up the local receipts which you pay for the next year with less free cash as well as a significant bump in the actual use of free cash. So we use the savings account. And we took out a loan that we’re paying back. To this year, I guess another way to boil that down is that the

54:50 reason the 1.3% is less than the you know than the two and a half to three to three something percent growth that you used to seeing is because there’s a free cash there’s free cash. We don’t have exactly so that’s us basically hitting the free cash wall. Okay. Yeah, that’s why it’s at one point three and then on the expenditure side. I I like that, you know, we have the three percent. We kind of have a range to look at.

55:20 Can you explain or can you just kind of can you tell what did we what did what was what was our expenditure increase? Say last year. Like and just by way of like, you know comparison like what we’re going to be looking at this year versus the last couple years. Yeah. So so the numbers prior to 24 actual numbers so from fiscal 22 to 23, somebody will have to do the math. We went from 96.4 million to 103.4 million. So I don’t have the math on here, but that’s for five six seven million. I mean actually, right. Yeah because you’ll it’ll match. That number on the other page, right? So that

56:06 was this and that that was a bigger jump than what’s been. Consistent in the past. So there was definitely up and because in the extended range balance, we’re assuming I know a four and a half percent increase of costs. Which is typically we’re taking making that assumption because that is really what we see, right that’s probably is best educated guess as close to the reality. And again, they’ll be factors that above that fact is below but and what it does it provides us a trajectory to compare to again some above some below so that whatever adjustments the goal is whatever adjustments we need to make their small adjustments because we we think we’re

56:52 in the mean of Of of the trend rather than just going with the two lower too high and having to make big changes as we peel back the onion on the on the numbers. So just for folks to follow along. four and a half percent is typically what our expenditures is that is a percent change of expenditures. Oh over your year to year. Yeah, I haven’t done that math, but maybe it’s three to four I say this will come in general has been as I’ve looked over the years. four to four and a half as a fair number to work from okay, and then even in times of yeah, and typically have three percent CPI. Yep, and so like we just said typically

57:39 Our Revenue side we’ve been. You know that that’s been a around like more of a 3% growth which is including the free cash. So this year just to kind of like that’s what it’s been. for folks and then this year

58:00 we are looking at 1.3. Percent growth which I know you like. I just wanted to kind of like be clear about the comparison and what we’re looking at when we talk about the percent change and so when the number to cover Okay, so

58:20 when

58:23 will we know? the number that it’s going to cost to cover the structural deficit. Well part of the process. That we’re at now is collected all the department requests. Compiling that and then refining and refining and refining and that’s a process of play out over the next month and that with the phencom plan is significant role in that because they have their Liaisons. That’ll be working. So So it’s refining the numbers and then like I said, there are some large dollar items like the GIC is probably the best example of 15 million at some point. because all cities and towns are going to be demanding it is give us your projection of increases so

59:09 they can start plugging in for their budget building, but I know so, you know, today’s February 1st, and I know it’s some of the more recent Presentations they were done at the end of February. There’s a lot of new information that comes rolling in February and March from you know, the agencies and such so we’ll be able to refine those numbers going forward that will at some point. We’ll be able to to say that for a lot of ticket items will have hard numbers. We’ll know what they are and then the remaining. Numbers then we can make another projection of a general.

59:54 increased cost but we’re narrowing down the dollars that we’re just guessing at and having hard numbers on some of the bigger items to work from. Right sense. Yep. Yeah, absolutely, and and I guess so, you know when we Kind of talk about an override for this year or preparing for that like, you know, I’ve expressed that. There’s you know there that we need to have the public discussion like it’s here on the slide. You know.

1:00:28 I just always worry about the time like having enough time to actually do that.

1:00:35 and you know last year was my first day of the town, but I’ve been attending the meeting for four to five years now and it’s been you know the same cut this we’ve been seeing this message conveyed. You know, we need to reduce our Reliance on the free cash. We have a structural deficit. We have you know, the Reckoning on the horizon and and tonight. It’s it’s the same message. It’s just more dire budget.

1:01:10 Figures and so and I’m also glad to see on here, you know, the technology focus and you know, the modernization needs but you know, those also have budget impacts that we haven’t yet, you know.

1:01:26 plan for and so, you know Like the select board is the chief executive office of the town and it’s our role and our duty here. To you know, really?

1:01:41 Oversee that like process and and you know prepare. Like a well that a budget proposal and and I said like last year at that that this meeting last year. I said it is not for us to decide. You know whether we raise the tax levy or not. That’s for The folks here in the room on the you know, listening to this presentation the voters of this town the legislative body. But it is our job as the executive board. To monitor the financial performance of the town and prepare. Well that adoptions to put forward as choices. And if we aren’t doing that we aren’t doing our job.

1:02:28 and you know, I I want to make sure that for me like I would like us to see that we have that time. To do that, right? You know, I I don’t that, you know remains to be seen, you know, and and we have you know, we have continued to rely and kind of run the same Playbook time and again and

1:02:57 Kicking the can down the road fingers crossed. Well, maybe we’ll get some more fat, you know, maybe we’ll get some more state aid. We hope it doesn’t snow but you know it that we continue to go every year with those challenges and and some people in town may consider that you know a victory. Each year that we are able to do that, you know, but the math doesn’t lie. And you can only paper things over for so long. and many of our peer towns require annual allocations to stabilization funds with you know, so they have a safety net and budgeting policies that would prevent us from even getting to the quite honestly this far and

1:03:45 Marblehead residents really, you know need to understand that each year. We don’t address the structural deficit. The problem only compounds and it’s like racking up the credit card debt to pay for the groceries. Someday the bills come due. And you know, maybe the people at this table will still be here. Maybe we won’t. Maybe we’re okay. If others have to face the issue if we can just get through another year. But I don’t think that’s good governance, and I don’t think that’s good leadership. and so as much as we Face a challenge. It’s also an opportunity. to put together a month a real multi-year budget study of what our needs are over the next.

1:04:31 say five years to modernize our Town services and and government operations Um, you know in many of our community community peer communities have gone through this process. It’s not a unique problem. Given the constraints on multiple Municipal finances and we can and should learn from their examples and experiences. We could come together with other elected boards to forge a consensus on tackling this my great financial challenge. We can and should host the public forums that was mentioned. We should survey and continue to survey the community as to what level of services. Um, you know Town side education side that the citizens of the town are looking for. And yes, the analysis will include consideration of an override.

1:05:19 But also alternative sources of revenue that we need to look at. That maybe we have put off looking at. the hospitality taxes user fees for example It’s like life would also include. I believe. Should include a review of operational efficiencies. As well as perhaps Outsourcing consolidating some practices. And you know, I want to lead the town government through doing this work collectively. with this work in analysis going forward we will have and the voters of this town can be reviewing and weighing the merits of a budget proposal that would finally address the structural budget issues, which has been with us. I think we can all agree for far too long.

1:06:07 I’m just one voice of five, but I don’t see a better option. So I hope we can finally get to work.

1:06:14 Thank you Aaron. I appreciate it very much. I just do want to make a couple of comments though that this year. In fact is very different than past years. Okay, because now we are actually hitting the the impact of not having enough free cash. If you just look at the financial statements you can see that so we’ve never papered over the problem. I think we’ve given fair warning to the town over a long period of time that we’re kind of moving in that direction where we’re going to ultimately kind of hit that hit that hard wall. And this year is the year. Okay, so that’s very different. Thankfully, thankfully we all hired Thatcher Keyser who has been through this process himself understands exactly what needs to be done and he’s you know, very thoughtful tough-minded individual

1:07:01 who is providing our leadership. We’re also you know, we do have we have to acknowledge that one of the key areas of challenge as we’ve been trying to set up gfoa standards. So gold-plated standards one of the challenges we’ve had as we’ve had a finance department that has been understaffed and there’s been turnover. Frankly apart, you know a part of the challenge one of the reasons why these finance department is under staff is because we did try to make cuts a couple years ago to kind of diminish the structural deficit. Okay, we have you know, we’ve looked at other sources of revenue hospitality and all this stuff already. We did that when Jason Silva was here. Okay. He’s very limited kind

1:07:49 of It’s very challenging to find those additional sources of revenue. So the end of the day. You know, I think we’ve we’re putting together are very good team. I do want to Echo Aaron’s concern about time. Right we do we’re going to have to work like professional athletes here to really get this thing done. But I’m convinced that we do have a professional we’re we’re getting a professional team in place that’s world class. So I’m actually very optimistic and I think this debate is fantastic because you know the end of the day we know we have issues. I would love to brag a lot more about the services of the town. I think we’ve got an unbelievable, you know group of employees that make the service delivering this town happen. We have some challenges and

1:08:37 You know, I think we know we kind of know what they are. And what’s great about tonight’s report you can tell is that Thatcher is not shy about telling us where we’re tripping up and where we’re potentially falling down. And I think this is just a philosophy of transparency. I think that you got that everybody should really appreciate we are really doing our best to be as transparent to the taxpayers possible and I’m hoping that in two or three years perhaps even less given the pace at which we’re setting up clear gov that taxpayers themselves will be able to get online and and drill down on financial statements. I mean, that’s the kind of information that we’re intent on delivering to the taxpayers. And this is a philosophy that we you know, it’s not typically Marblehead, but it we have to change to adapt to the world right now. It’s definitely the way the world is going

1:09:25 and for all the reasons that you’re outlined. So I’m actually optimistic. The bad news is we we are running into you know into finally into This situation where we did build up a free cash cushion, that’s fantastic and it allowed us to survive for a few more years, but we’re at a point right now, as you can see very clearly the financial statements that were only getting instead of getting the usual two and a half three three plus growth. We’re only getting you know one and a half and the reason is is because we hit the free cash wall. Okay. So with that I’ll leave that and I think we can rather than we’ve already taken a lot of time in this discussion. I would like to move to the next agenda item if yes, please though. Okay.

1:10:13 All right information, please. Yeah for you mentioned, you know that obviously we have the jfa financial policies, but just in historically obviously you came from bencom and you know, you guys have been on the board a long time. Yeah, like what was the historical policy for balancing the budget was you know in regards to free cash. Obviously. There’s a policy in here. There’s the recommended policy but My interpretation of looking through it was simply whatever it took to, you know to clear that Delta to clear that difference. Can you just speak to that? Yeah, well, I think you know you got to remember also. We’re yeah, we were in a in what I used to call the the prop two and a half Paradigm right? We’re in this kind of virtuous kind of steady growth low inflation cost within reason

1:11:00 and it was a great disciplinary tool because you could basically tell the Departments. Hey, you know, we’re level-funded, you know, if you want to save here you can spend here but you need to tell you know, so it’s a very good budgetary discipline, right? And Cat at free cash and John mcginn is you know, it was was really the author of this he really built up that free cash because he was very conservative as in his product projections. So basically stable basis of growth Reason, you know not too choppy. We had a lot of volatility in the in the expense line items that we took out right with the energy fund and all this other stuff. Yeah. I know the separation and yeah, I guess no but just It’s all about the stability 24 20 13 2014 when you guys saw the forecast like that like separation of like doing some sort

1:11:48 of Reserve fund like, you know. Pull yeah, we what we did what we didn’t set up the state stabilization fund until 2018. I think and we’re in the process of slowly funding it why because we realized back then in 2018. Hey, you know what free cash is great and like a stable kind of context but that’s not the way the future is going. You know, we need to have you know, we need to rely Less on free cash. Keep it nice and stable. So it’s a cushion there but really develop a stabilization fun to be able to kind of manage the unexpected ups and downs. Yeah, because that’s the only carry you. Yeah, it’s it’s a very good question, you know, and again, I think we are facing a real change now that we have to adapt to you know, so we’re operating on you know, parallel processing on multiple fronts, you know, and we’re having to you know to to Really

1:12:35 deliver that and I appreciate your research there, but you know, it’s really I I think we’ve always operated very conservatively. And I think because everything was kind of so stable. We didn’t really have the urgency to kind of upgrade to let you know I call it sharpening the saw, you know, we didn’t really upgrade on a whole bunch of fronts, but then we had a lot of people leave right we and and things started to get more complicated on the more difficult for us on the implementation side. So Okay. Thank you, appreciate your your comments and questions. Let’s move to agenda item two if we could just to do a Town cash management update, you know, there’s been some questions in town floating around and you know, I think it’s better just to kind of address it directly. Hold

1:13:20 on. Hold on a second. And what I’d like to do is make sure you’re talking about this. That’s right. We’re yeah, in fact, you’re really paperwork. And Thatcher if you would like to to open up with with kind of a discussion on that and then we can. Again on this go around the table. Yeah some slide so we can so others can see we’re talking about so the people have them out there. No, there’s no printouts. But we oh area it’s up on the board area. So So given the recent question, so I was asked to put some basic information together about the town’s bank’s investment accounts and so forth, you know, I’ll start with the fact that again.

1:14:04 The turnover in the finance department. We have a new team in place or soon to be in place. So For a number of us like looking for the the treasurer’s policies that are in place. We found some we found them they’re policies that are in place established in 2014. But as a bunch those of us that are new we have to find them to identify but and looking at at all the accounts. So the first the first slide is just to give a visual.

1:14:42 Perspective of where our funds are being held right now. We have an influctuates somewhere around 94 million dollars in in cash.

1:14:56 Through the various Banks. So on this graph, you’ll see that the largest deposits are at Eastern Bank that represents 39% of all our funds. There are a number of accounts that are some that are transactional and some that are for investment purposes. So there are number accounts there. The the next is UniBank at 15% are Which was the rates? Yeah 15. Yeah 15%

1:15:31 And that looks like an investment account. It’s got a lot of deposit coming in. It’s it’s in a I would call a high interest checking account what it seems to be with limited liquidity. Right right National Grant bank, which which holds 15% of our accounts and that is our our primary transactional account. So the balances at times are around 13 million, they’ll drop very much lower from that account is the bi-weekly School payroll comes out of that the ant the weekly Town payroll and then all our vendor accounts

1:16:17 payables transactions come out of that. So that’s that is the primary checking account. For the town in that bank and then mmdt mass mass Municipal deposit trust which holds 14% So that’s that’s set up as as an investment. Account for for municipalities so it has a portfolio of short-term. Type Investments can very conservative short-term, but it’s designed for funds that are going to sit for some time to to collect more interest. There are a number of parameters that treasurers are required to follow time limits of how long certain Investments can can sit

1:17:05 before maturing.

1:17:10 Trying to dig in alert learn more detail, but that’s why we have Rachel brought her in to provide that function. Then we have the next one down is Bartholomew. That’s 9% of our funds. That’s that’s also an investment. So Bartholomew and mmdt sort of compete for business on for Investments of Municipal funds. Never report Bank 5% funds there and then we have MNT peoples at 2% Rockland Trust at One Lending Club rounds down to zero. It’s just I think 39,000 in that account. Um, so those are the banks that we hold at. I know this discussion about the number of bank accounts. That’s

1:17:58 with Rachel and Anna’s looking at that of Downs knocking those down knocking those Downs it my assessment and again that was part of the the Consultants report about the large number of bank accounts. I’m seeing a trend as I deal with General clear gov and looking out all our line. We have somewhere around 10,000 line items for our budget. Why do we have that it seems the philosophy is for every every transaction needed a line number. I think it might have been a philosophy of whomever in the past, but it seems to me it was due to the limitations of the software.

1:18:44 and so just almost every different transaction needed that I see the same pattern on the bank account bank account side that for whatever reason in the past That a lot of this money are trust fund monies people donate for particular purposes that we hold in managed for their four public purposes, but it’s a private donation of public purposes and it seems the same philosophy that every individual contributed. They it was another bank account opened.

1:19:22 We’re obviously going to change that the whole philosophy and and have fewer bank accounts and let let you know the accountants and sub-led sub-ledgers manage the differentiations between the different purposes, but manage it from a single account or a much more limited account. So with updated software that will be so much exactly part of his is our information is just getting our hands and all this information. So with the new team in place, you know, Rachel is just going at full speed and and getting your arms around this and I’m going in and setting with her and trying to absorb as much as I can at the detail level, but but the overall philosophy is is absolutely, you

1:20:09 know, making it much more manageable in trackable. For these Investments, so that’s that’s the first slide. The second slide looks at National Grant Bank transaction account in the question about how you know, how are the rates? for that that account You know, how does it how does it set the rates and relative levels of it? I guess the short answer is you know, it tracks the federal funds rate very much. You see on the graph as a transaction count, you know, we list the bullets. It’s guaranteed principle no limitation liquidity. We get, you know,

1:20:56 free transactions services for the transactions and interest payments for the town reflect changing interest rates of the environment meaning it’s tracking.

1:21:07 So again, it’s it is a transactional account. It’s not an investment account. So

1:21:15 I think you know we have to be mindful of of. comparing different type of accounts to try to compare rates The other issues so what this graph shows? Interest rates basically went to zero for a long period of time for covid we still received.

1:21:38 interest during that time I guess the unfortunate timing for us. Is that at the time that the rates started making the changes when there was wholesale turnover in the financial staff? So so it’s the treasurer’s job to be regularly monitoring and and moving money as as appropriate for the accounts that you want to have to do. So that was probably limited during the time that the treasure the Past treasure was also the finance director acting Finance director and dealing with those things. And then after he left we had the assistant treasure collector who was mostly on the collection side holding out three jobs.

1:22:23 As acting Treasurer assistant Treasurer collector and as the the office clerk who basically she was stuck to the front window most of the time servicing taxpayers and others making transactions at the window rather than you know, having a focus. We’ve we’re beyond that point. We we have the treasure in place Finance directed coming soon. So we’re already on the path to manage that I would say despite that period of time and looking at the policies both both the policies we have in place and the the treasures Association, you know, they prioritize the priorities of for for

1:23:08 these accounts already one is safety. It’s is keeping the funds secure. And we’ve met that through through all of this turnover and such that the funds was Secure. Priority number two is liquidity, right because our function is is to be able to pay our bills and and have access to the fun. So that’s the second priority yield is the third priority. So the fact that we we accomplish Priority One, we accomplish priority to we might have lost a bit on priority three during the interim period but the key now is we’ve got the team back in place to be able to manage manage those functions and then on the

1:23:56 third. page third slide

1:24:02 for benefit, you know for the board as well as myself as looking at what’s the what’s the Mass general laws that apply to the responsibilities of the treasure and and the the parameters for Investments? So chapter 41 section 40 six of national law. Very short defines the the duties of a town treasure. It’s basically they they have the soul responsibility of managing the funds. The system is designed that the all the investment in transfer funds is not done at this level of the board level. It is specifically the function of a treasure in order

1:24:48 to make those decisions manage funds the other laws Master chapter 44 section 55 that is specific to the parameters of how a municipality handles Investments for General funds. Our operating funds and what it specifically identifies what type of accounts what type of Investments you can be in. very conservative obvious reasons Mass General Law chapter 44 section 54 is specific to the investment of trust funds so it’s your managing your your investment type funds and it specifies the parameters of What type of Institutions what type of investment vehicles what’s the time frame? What’s the duration? You’re

1:25:33 allowed to be invested forward. Let’s fix my head. Generally. It’s it’s not more than a year. And in other situations your your maturity can’t be more than 90 days. And and so it’s designed to be conservative but also kind of puts us as a tail wagging on the dog as far as trying to trying to maximize return and then the last one is mastering a lot chapter 203 C. That was a special legislation dealing specifically with opab. Um employee benefits funds. So basically municipalities being required to put funds aside for future costs that’s longer term obviously longer term funds so allow for

1:26:21 You know a little more flexibility on the Investments. So so the bottom line on this is You know, we’ve been taking a lot of look at this. A lot of the problems have been identifying the past. We’re already working on them. We’re already well on the path to making sure Marblehead is in the norm and and is basically doing the job that’s laid out under these statutes and policies to again keep the funds safe. Keep them liquid. and third maximize the yield but within the parameters they have I will finish with this my my story of the past being publicly criticized because

1:27:08 someone did a comparison of the investment returns of the state the Commonwealth’s funds compared to City of Amesbury funds and why why we’re well below what the state and and the answer was Because under these laws we have much more restrictive conservative options than even the Commonwealth itself and all of us at the time Municipal leaders were like banging the table. Hey, we need in on this but but the point being is that doing any kind of comparisons you got to have full depth of awareness of all those factors that we of all the rules that we have to play Under and

1:27:54 That’s where we stand so. You have any other questions? Thank you. Any questions. I just a couple things just to I think reinforce a lot of the things that you’re sad. And so I have all this knowledge fresh in my brain, you know, I mean, this is pretty consistent like the mmdt like that investment. I mean I the treasure report was like 2004 or 2005 2006 like consistently throughout there like this, you know was part of that portfolio. And so that’s I just remember seeing that you know through there and then just also kind of reiterating the trust fund fun donations. It was one of the things that actually stood out to me when I was reading through all these reports that actually was heartwarming thinking. Oh my gosh, like there was so many amazing donations that were made through the years for Parks or for you know,

1:28:41 anyone who is financially struggling like just a lot of really thoughtful individual donations, but if you pull those all up and they’re riding an individual accounts That yeah that adds to kind of the it has complexity to yeah, right. So, you know and the balance is very Considerably from you know, maybe it might be a $40,000 versus a $400,000. Like there was multiple different things that were put into that throughout the year. So I you know, just wanted to kind of reinforce what you were just saying that I And you know in real time saw that in looking through what you know, just kind of just even the last 20 years where things have been. Yeah and over the last week and I’ve been since

1:29:26 Since they’re being but working with the the treasurer’s team that we have now our outstanding all of each of them in their role. We have a great team. They’re soon to have a great leader to work with them. Yeah. So all the pieces are coming out and you hit on this, but also, I think it’s important that once again, this is you know, the document that we were adopting from last year and it has a whole section. I just looked just to make sure I had the right page but unit 12 talks about Treasurer investment policies in detail and it sites all of the same Mass General law references like where this Product was built upon. So this hits it in detail too. And once again, like this is all out there in the public that people can disseminate and look at if there have questions and just

1:30:11 so you know for those draft policies. It is our intent so our financial gets in get settled down a little bit. That’s one of the the top priorities is to, you know, allow her to do the review and get her special input and and bring forth to this board proposal for for finalizing, you know those policies and put those in place so and we’ll be doing that systematically of you know throughout the organization of getting those things in place.

1:30:46 The hunter. Thanks. There were some.

1:30:52 recommend in that report Is that something that the treasure our current treasure is? Working on looking at and will that be something I’m just you know that our new Finance director is going to consider. Yeah, so so when I became aware of the report I read read the report. working with the acting Finance director treasure collector at the time what I had done it, I pulled out all the all the the items that they identified and I made a task list out of it. I shared it with with my credit at the time so they were starting to look at they were some. Findings report that we’ve looked at said man,

1:31:37 that’s not really broke that you know, there’s there’s an explanation for something. So as to kind of get through those figure out the quick fixes that can be done and the ones and basically just made a project plan. Um, I I’ll admit unfortunately when he left for the private sector and waiting for the new, you know new place to come in. I kind of put it aside because they’re just I’m with anybody there to work it again had the the first step to solving a lot of the issues that we’re dealing with is having a team in place to actually work it.

1:32:14 Yeah, I play a finance director once in a while on TV, but I want to leave it to others. Yeah, I think once to everybody gets on board and the team really comes together that it would be. You know nice down the road when the times appropriate to get sort of just an update on the department and how things are going with the new team in place. Absolutely before the board on it. Yeah. I just like to say as well obviously part of what we’re what we’re attempting here is to, you know, present a broad context for something that’s come up recently one of the papers. Okay, and I think I’ve mentioned all the newspaper folks in

1:33:00 town that we really welcome investigative reporting. Okay, we really do and as you can tell from the way Thatcher conducts himself, and and the way we attempt to conduct ourselves is that we have nothing to hide and we’re completely, you know open to to discussions. And you know, I think the presentation today was an attempt to show you that. There’s a broad scope of accounts. There’s different types of accounts. Transactional accounts specifically are designed and constrained by liquidity and guarantees that are completely different. And you know, we have an independent mandate by the treasurer to to manage the cash accounts. They’re they’re literally a silo

1:33:47 in the way the state views their, you know ability to make decisions and conduct business. Okay, that’s really important. I think that all I’ve always encouraged all the folks that provide such crucial information to all of us through the newspapers you come in and talk to us. All right come in and talk to us what that does is it helps us frame. The context for you because we have a very large complex organization. It also makes the foyer requests which we also encourage 100% Although they are very time consuming but it improves the efficiency of the questions that are being asked. You know at the end of the day, it’s crucial. I think if you’re going to do good investigative reporting

1:34:33 that you compare apples to apples. You don’t cherry pick time frames and you you know, you really drive your analysis with a full understanding of the context and I think what we’re trying to do tonight. Um go straight to the point is to provide context. Okay, and and for people to understand that we’re doing our damnedest to to make sure that we run. You know with efficiency and with Integrity so with that I think if no one else has any other comments.

1:35:09 I think we’ll go to the third part of our agenda, which is public comment. So why don’t we go ahead and open it up. If anybody has questions online, please raise your hand electronically and We would ask that you stand up please. I’ll recognize you first ma’am. Please stand up and you know, tell us your name and and where you live great.

1:35:32 If you have with Marblehead season, yes, so actually to Echo what you just said about promoting transparency and encouraging foyers and conversations and most importantly that you in reference to a newspaper cherry picking what I’d like to comment as I know you can’t answer tonight. Is that the requests that specifically Marvel had Beacon sent repeatedly and resulted in ultimately an appeal to the Secretary of State for failure response was precisely seeking to get answers to timelines. So as not to cherry pick and in fact what we did receive Although we had asked for times including June

1:36:20 July August September October November December.

1:36:25 Thank you. In spite of us asking for very specific timelines including average daily balances, so there could be a comprehensive. Look at what the finances were of the town and where the cash was being held we were not provided that we were in fact provided a Cherry Picked snapshot in time. Which suggest given that on December 8th. It was roughly 29 million. We were told zero was at mmdt. All of it was at National Grand bank and the interest rates. We were provided were minimal and what we got was wildly different from that of what the federal funds rate was. Now, in fact, I would argue that it was quite disingenuous to hear tonight.

1:37:11 To people who maybe are not familiar with how these processes work and what Treasures slash Town manager / selecorder required to do is to look at liquidity, which is exactly what the mmdt offers mmdt is meant to be a transactional account. It provides interest as well as National Grand Bank does and Bartholomew and the other Banks which I would respectfully add you did not include your little pie chart in what was distributed to the public tonight. So it’s impossible to know other than squinting at the screen to see I don’t believe there are interest rates on there. I don’t believe there was a date. So for all I know all this money was transferred in this morning. What I do know, is that

1:37:56 when we’ve asked time and again, can you clarify We did not say oh you didn’t answer this in 10 days on day 11. We’re going to publish this. We waited more than 30 business days. And by the way, that was since asking some of the initial questions since July. This is not an attempt at a hatchet job. This is an attempt to be to make a select board and town manager transparent and I would also respectfully add that. I do appreciate that. There’s been ups and downs and people bailing in the treasures department and the finance department and thus you’re in a rock and a hard place Mr. Keys, or I really do understand that and you only came on board in July, but we are now hearing what is essentially catastrophizing about our town finances and

1:38:42 the possibility the distinct possibility of an override yet at the same time. We’re being told well we didn’t have a finance director. We didn’t have a treasure that wasn’t my job. So Things Fall Apart and they weren’t put where they should be. At least that’s how I heard. So when I look at one of the members of the select board being the president of National Grand bank and the money is in National Grand Bank. It is worthy of a discussion I would argue and when I hear we love transparency come in and meet with us, we can’t get our emails responded to we have been trying now. We do know there are other outlets that do get responses. So I would argue we are trying to represent the public here and get a not just a snapshot but in overview and

1:39:28 I would also ask that if anything after our two articles came out even one response we called we emailed we we try we came to town hall We call we we call Town Hall to try and get a response tell us we’re wrong point out where we didn’t contextualize. These are all really important things especially at a time when inflation is crushing people energy rates are going up and we are most likely going to be hearing conversation leading up to Mae’s town meeting about the absolute urgency. To have an override that will affect all taxpayers. So I would hope that at some point these matters will be addressed to

1:40:14 date. We are still waiting on our appeal with the secretary of state and I haven’t heard back from anyone at the town with responses to our comprehensive questions that by the way, I would suggest are not very hard. I think you can call the bank. Someone can call the bank and ask them. You have select more member who works there. Thank you. Thank you. Thank you for your comments. Appreciate it. Any other that’s on other hand. Yes, please Sarah.

1:40:46 Fox 46 peach tree three years ago. I sat in a school committee and town meeting for finance and I heard Jason Silva say we are the phrase we are no longer cutting that we are now cutting flesh and Bone and that is stuck with me for three years. What we saw that year we were done Union Personnel across the Town Gate forfeited Cola increases some even took pay cuts to get us through. I’m I speak I think at all times through the lens of students and how this affects our students but I think it’s safe to say that it’s the same for every department whether you’re police and fire whether your park and rec Health Department every Department.

1:41:32 1.3% doesn’t allow us to stay not only does it not allow us to stay level service. It doesn’t even cover or contractual obligations. The impact of what I saw is terrifying for each of our individual departments and therefore terrifying for what it could mean for what we deliver to our residents. These are real tangible things. We cut police officers that safety we cut fire that safety. We cut schools that’s education. These are real things. So what I I am imploring all of you to do is to work diligently. And expediently with all of our departments all of our boards.

1:42:18 To get what we need so that we can offer the citizens of this town an option to it. And again like Aaron said it’s to them to vote it up or down but I hope that we can all we’re collectively to get that option out to them and to get the information out to them about what it means if this number is approved if this number isn’t approved because at the end of the day, I I think all of our citizens are really proud to live in Marvel head. All of our staff is really proud to work here and I I think they want to to not have Cuts in their service delivery and we cannot there’s no more flesh and bone to cut we’re here. So I really I want to work with you guys. I I think every department

1:43:06 head every board wants to work together to get where we need to get. It’s a tight timeline. But I 1.3% is not getting it done it that is a gigantic Delta. That is a 4% Delta from what we or at least a 3% Delta from what we normally carry that is that is significant and I want us all to work together to make that. Not affect our citizens in a really adverse way. Thank you very much, Sarah. Any other comments from the public? Attention sorry Jen Schaffner 20 Casino Road. Thanks for your time tonight. Thanks for all of the reporting. I also with my buddy Beacon. I’m not gonna expound. I think Atlanta said it all I will take you

1:43:51 at face value that you’re welcome us into town hall to meet with Thatcher. Whoever else we need to meet with to get answers to our questions and we will report so I will I will thank you for that. I have a series of questions. I don’t expect to be answered tonight, but I’m just gonna put them out there and hope that we will get those these answers at some point. The first thing that I want to understand is it seems to me what jumped out to me particularly. This is a point to Mr. Keizer is and you may not know the answer but we jumped from 22 to 23 fiscal years in our estimation of our local receipts. So there must have been a reason for that because that seems to me to be a big portion of a three million dollars. So that seems I guess Mr. Graders referring to having us hitting free cash, but someone somewhere made that decision to not

1:44:37 Project is conservatively. So I’d like to understand that. Will there be a gfoa report this year? For fiscal year 23, I want to let the Town Administrator answer that okay, and then in the override question mark slide Mr. Keyser talked about sort of next steps need to have a public discussion. So we’d like to understand what that means. To select board into intimistication and what will be the process for this? So we’ll have public discussions. Will there be a recommendation to the select board for what to go forward with? Will there be a level funded budget presented to the select board and possibly at town meeting? Where does the finance committee fit into this? Where is their role as a fiscal Watchdog to help?

1:45:22 When we go through this process. So I don’t expect those answers tonight, but I’m putting them out there as a citizen and a taxpayer that those. Are seem to be top of mind when it comes to this presentation. Thank you. Thank you. Appreciate your comments Julie noted. Anybody online?

1:45:42 I’m saying who? Nancy please go ahead. Yes, hi. I’m sorry. I am needed next month. I live at 55 Commercial Street. I just want to thank you all it was a nice presentation and it was nice to hear that. We have a finance team coming together and Mr. Caesar. I know you’re you kind of walk into a little bit of a hornet snap. You’re right on the edge of it exploding on you. and your finances and because the town has become a little angry and it’s been a lot of online commenting about things and a lot of assumptions. About how things are run and what they don’t a lot of people don’t understand a lot

1:46:29 of you know have the time that’s operated over the years. I’ve worked in the finance department in the 80s in the summer when I was a college student I worked there for about five. Four five Summers, then I was full time for a little while and it was for Bart snow. And Bart was very very conservative. He was quite you know. He ranting the tight ship. And he told us what we did and what we needed to do and you know, he was very transparent in the sense of he told us. To taxpayers comes in here you get validation where they live you look at their license or whatever and if they want to see the payroll you pull it right up and they can see the payroll. That was his I was told this as a 19

1:47:16 year old kids. In the town and I saw a lot of how the financing was done. I also typed the town report on an all of that. He report on typewriter. Um when I was there getting it ready and to tell meeting I would work in my Winters. I saw all the accounts. I saw the trust funds that dated back to like the 1700s that we still had hanging in the banks. That was just sitting there earning interest and they had, you know certain. Criteria in order to draw from them. So understood that I I laughed I went on my own I left I left town. I moved away for a while. I came back in. Oh seven

1:48:04 when my parents were getting elderly and I actually took a job in the school to replace Nancy Forest who wanted to retire couldn’t after 27 years. She had it. when I came in I was surprised to see that the town was still on the same Legacy system from two fat from 1977. When we used to bring the payroll over to Wayne Marquis and Denver and he’s vocabulated and then we went into the new system and I worked with Bart on getting we had these big cakes and everything and we convert they were still on it and I said This is not going to work. You can’t be doing this. There’s no security levels. I mean, it’s 2007.

1:48:51 This system is way outdated and you’re going to run into trouble and then within I think a year they converted to a soft rates system, which was a fairly new system developed by two UMass Lowell graduate. And it was something it was cheaper, but they were advised to go to Munich because munis was more well established more supported but they did not because it was treatment and because it still gave the town control. That they want and I also felt when I came back but the town had turned so top down so controlled so secretive. That’s how I felt from the difference of

1:49:39 when I left in the 80s and I used to deal with the Selectmen board coming into the finance office all the time. If you ever had to deal with Tom Jordan, you know. from so what I’m trying to understand is We’re now 2007 was quite a long time ago. We’re now almost you know, 15 years later 16 years later, and I’m not seeing that the town has really improved. On establishing policies and becoming transparent. I know that there was a big thing with the you know the town dump that that was a mistake in the sense that

1:50:25 it should have been run as a project with a project team people watching the finances. It should have been put in separate accounts. Largest accounts that you draw down and you were watching with the expenses and it wasn’t it was kind of getting co-mingled to the town. And when you do that you lose you lose it control of how you’re running things. Especially a project that is, you know, 30 40 million dollars, whatever that project was. the reason why I know that I I actually was part of a 200 million project with the five UMass campuses, and I used to do all of the billing. So I

1:51:12 I have to like accumulate expenses and build them out to all the campuses to the treasurer’s office Etc. So I know the understanding of needing project teams and meeting a real Financial control. When you’re when you run into these things and I know the school department does have project managers when they do the building of the schools. We need something similar to on the downside, especially when you run into that type of project. I’m also I wanted to ask a couple of questions.

1:51:53 You’re going to get a new system for an HR reporting and things like that. What system are you looking at for this Nancy? We really appreciate the review and it’s been your services really duly noted. If you could you know, I think we’re not in a position to answer questions. You could answer them. You could ask them rhetorically though if you’d like, but if you could if you don’t mind a summing up, that would be great. Okay. Thank you.

1:52:25 I also was just I was just concerned you’re migrating to Office 365 which is good because there’s a lot of applications in there and I think you can move into looking at the applications and how they can feed into where you can get a rid of the phone systems and use Microsoft teams working with the Department. I think the town has set to level things down more. At the department to make them more responsible. for their budgets for developing their budgets and doing more of a zero-based and get away from more of the level funded because I

1:53:10 think I think it would just manage things a lot better. It’ll make people really look at their expenses and really look at how the money is being spent. Setting up a position system so that we have specific positions with you know tied to payment. Pay scales. I know we have different things to the union, but I think we need. a much broader one in the administrative area

1:53:42 I’m also think I wanted to say something. I think that was pretty much it. Um, I think they’re just you know, I I get a little Disturbed when I see people attacking people online like the different, you know the banks and I I I’m gonna try to make people understand that the national Grand bank has been around. For empteen years and they have helped a lot of the towns the town and that I know and they’ve done a lot of good things for the town and I think we need to really get back to kind of get away from the anger. And really sit down and try to work together and maybe set

1:54:28 up some sort of like. Town people that can set up committees to kind of work with the time and help advise them on internal control and how we can you know, we can work and just you know give advice on on based on our experience. But anyway, I’m going to go because dimple has got his hands on his head and he wants to talk Nancy Nancy. Thank you very much for your comments or duly noted. And and play and please watch us get through the gfoa. I think a lot you’ll be impressed by that process and we’re glad to have a conversation anytime. Thank you.

1:55:12 before Jim Is Chris that is Chris there to speak?

1:55:19 Yes, I am. I’m starting my videos. Sorry and that go right ahead. So I don’t know folks didn’t see me, but I think you can hear me. Um, thanks Becca Whitten 150 Atlantic Avenue. I’m just under my husband’s Zoom account. I had one question and two comments. The first comment was related to the town administrators presentation at the beginning kind of echoing what Nancy just at a moment to go. I’m very excited to hear about migration to Office 365 some of the sort of professionalizing updating and standardizing of town functions. I think is wonderful to hear Um, that was comment one comment two, I have the perception. I’m just going to be very blunt when I watched the conversation between some of the select folks on the boards, like people on the board. I think

1:56:06 sometimes questions are asked not because Selectmen there’s like people don’t understand the answer themselves, but because they’re trying to illuminate clarification for the audience. So Aaron was asking some questions that as an audience member not super up to speed on current topics. I really appreciate it. And I think sometimes that the responses are directed to the select person rather to the audience and I just would hope that as a group you understand that I don’t think select people don’t understand the thing. I think they’re trying to help the audience understand things if I’ve misconstrued that Aaron please ignore, but I just I think Aaron is not the one who needs the answers. She’s trying to get the question. And then the third thing is a question. I thought the pie chart that I had the name of that screen somewhere but not even the pie

1:56:53 chart that we all saw with bank accounts was helpful was interesting. I read the article in the beacon. I thought that was well reported. I thought the first question asked tonight was Um frustrating to hear, you know the lack of communication from the the town to the the journalists who are asking so I wonder if the pie chart if there would be a venue for that to be revised or updated and presented to folks so that we could understand of those accounts that are held in the pie chart in the various accounts, which ones do the the select people have oversight over right? I think if there are questions about National Grand Bank questions about conflict of interest, it might help the audience have a sense of what accounts in the town the select folks have have control over have opinions over that’s work.

1:57:40 That’s worthy of an answer. The answer is none. We don’t we don’t control those in the treasures has a specific State mandate to to run those accounts. Okay, so I think I think then I would then Echo. I think the first woman who spoke. I’d love to know when those accounts, you know, what was the time frame of that because we’re, you know, we’re getting cross cross information, which doesn’t really square up with this idea of transparency, you know as a viewer. I want to believe that everyone is on the up and up. I believe everyone probably is on the up and up, but the miscommunication is not helping anyone and so I think responding to journalist questions would probably be helpful to that and thank you. Thank you very much. Who’s next? Jim fall please. Go ahead. Jimmy fall

1:58:27 21 chamber Avenue. So could we could we back up? Could you please pretty please put the pie chart slide back up on the screen for everyone to see is that possible in 2023? I think we’re I think the computers are shut down Jim. Is there is there anything my mind still on Moses? But anyhow, my question is this that I got a little bit of money at National Grand Bank. I’m not a big player. I’m not the town. I got a little money at National Grand bank. I got a little money invested in Eastern Bank. Could could anybody on the board? At least for Eastern Bank because that’s the largest slice of the pie on the pie chart. We can’t put up. Could you please tell the public

1:59:12 the town anybody? What our return on our interest rate return on investment whatever you want to call it at Eastern Bank is right now because I know what mine is. And I’m also concerned about my tax dollars. The good someone please just for everybody online. Tell us what percentage rate we’re making just at Eastern Bank. I don’t have that answer but I think you know part of the challenge is there’s a number of accounts. Some are transactional summer for Investments. So it It will take and it’s taking. Some effort of our treasure to to actually collect that information into do the calculations

2:00:00 because it depends on what time frame what the rates were at the time what the balances were at the time and again, there’s a number of accounts there. That’s primarily the water and sewer. Enterprise funds through that use that they use an Eastern so that that’s been the challenge for us to to pull information together. It’s it’s a lot of data points and the folks working hard to do that and I guess our our longer goal is to have better information to more quickly be able to do that simplify the accounts and make it easier to have that information. So, okay. Well

2:00:46 not nothing against anyone on the select board. Nothing against you Mr. Kaiser. Nothing against anybody that works for the town lack of Finance directorship, whatever you want to call it. All I got to do is log into Eastern Bank and see what my current interest rate is. I understand that your Diversified allegedly across your your I think it was 39 percent at Eastern Bank. And whether it’s an Enterprise fund or whatever, it’s it’s this is a one click World login click on it. What’s my credit score? What’s my interest rate today? What I I I’m struggling to understand why even the newspapers. I understand the newspaper was frustrations. But I I don’t understand why nobody that

2:01:34 works for the town and again nothing against you or the select board or the whoever. It’s pretty simple. I can I can get on my phone right now and click on Eastern Bank and find out what I’m yielding as an interest rate in all I’m asking is with all the hubbub about the interest rates and the money and everything sitting around not making Prime. Nobody can just say well, you know what Jim we’re making three percent which to me would sound better than what the newspapers are reporting. Nothing against the newspapers either. I’m glad they’re doing their investigative journalism. I’m just I’m kind of dumbfounded that nobody can even just say you know what Jim we’re making three percent. Because I think right now it’s it’s closer to four percent

2:02:21 on good Investments and and us stop. It’s just frustrating and I can only imagine how every other taxpayer in town feels right now. Thank you for your time. Thank you, Jim appreciate it. And we’re obviously, you know, we do want to tell the story in contact and we welcome any, you know discussions to get there and to answer these questions. Any anybody else?

2:02:48 Someone in the audience as well. Okay. Why don’t we take make okay Megan. If you would go ahead please and then we’ll get to you sir. Thank you. Oh great. Hi. Yes Megan Sweeney 23 Beacon Street, and thanks for taking my question gonna be similar to Becca and offer a couple of comments and then one ask One is with all the staff turnover it is and with everybody trying to figure out what to do and where and what’s happening with the new staff. It’s really encouraging to hear that there are some policies and procedures to help sort of guide them. Even if they’re dated 2014. They’re at least something to guide to guide the department to guide the employees and to hopefully set people up for Success.

2:03:35 It’s one of the reasons why I submitted an article last year to town meeting asking for policies and procedures to be put into place because when there are turnover when there is turnover, it just helps the department and in this case the town keep moving forward, so I’m reassured to hear that. The second thing is Aaron had brought up a couple of questions. And I’m just going to Echo what Becco set Becca said and that is you know, the questions that she was asking was asking for our benefit and for people who are trying to figure out all these numbers and graphs and what did it mean? So Aaron, thank you for presenting those questions. It’s very helpful for the audience to try and understand what’s being presented a lot of times. It’s overwhelming to see all these numbers.

2:04:22 The second thing or the student the third thing is I’m also reassured to hear that the select board as a collective and I assume as individual celebrates the Free Press because it is rather disturbing to hear, you know, the frustrations of one of our local newspapers. Because we rely on that there are partner and they don’t they shouldn’t be a friend necessarily, but they’re definitely a partner in helping that goal of transparency. If if that’s what we’re trying to establish as more than a philosophy, but actually a practice. I think it’s really important that you engage in a partnership with them. So, I hope that you all make yourself accessible. That’s true that goes for you as well because I know I’ve tried to reach you and I don’t ever seem to get a response. So I’m really encouraged to hear that. Thank you.

2:05:08 The last is a question and it’s a hard one. but I guess I think out there a lot of people in the audience. A lot of people that I’ve talked to are are growing weary with the Perpetual surprise every year that we are in a dire financial situation.

2:05:27 With so many of you involved both in the finance committee as well as on a select board for decades. This shouldn’t be a surprise anymore, and we should have a plan in place and it shouldn’t be February that we’re deciding that perhaps we should have an override. It just shouldn’t be it’s not it’s not setting you up for Success. How is that you’re going to put together a reasonable argument to bring to town meeting to pass an override of any kind and our poor Finance director Dear God. Hi, welcome to Marblehead fix our fix our tax our Revenue problem. But anyway, I just I just hope that you know, if it’s not this year that we actually presented it town meeting. I hope it’s this year this meeting this information

2:06:12 that Thatcher has given to us that we actually act on it and in a thoughtful way and an inclusive way with the community. So thank you very much for your time. Thank you Megan. Yes, please. I think oh, I’m sorry. I hate to do this gym, but he has the man the gentleman behind you had his hand up first.

2:06:33 For a clarify for Megan that we did like the gfoa in those budgets like were voted and it’s not 2014 like we have more updated versions. I just yeah, that’s right. I know that there’s been a lot of progress it. I just wasn’t 2014. Just want to make sure people understand that right the update was yeah, it was later. Please mark Pelletier. Thank you for your time. Yes, Mark. Thanks Thatcher for the presentation tonight much of the presentation as I was watching. It seemed upon this new team that you’ve put in place that we’ve hired. We’re waiting for them to all get on board. I’ve been in town now 11 years. So not nearly as long as most of this crowd but here for a while Town’s been a revolving door of employees and I get concerned when I see three year plans five-year plans. We can’t keep employees more than one to two years. They’ve been leaving so I

2:07:18 get concerned when I see like a five year override if the people are actually going to be here to implement it five years down the road. So I’d love for the select board or somebody to put a presentation out of what we’re doing for employee retention and how we’re playing on keeping that team in place so that we can actually spend the money successfully and be successful in town because it just seems like the same story every year. I agree with others. Thank you Mark. Appreciate your comments. Yes, Mr. Zissen.

2:07:47 Thank you, Jim. Ziston Two Mile Road. I think I have a unique background to explain one of the things on the flytrap. I’m actually a corporator for local bank. None of the town’s business is with it, which is fine and also for many years. I served as a treasure of the Salem housing authority. So I know a little bit about cash management in the municipal world, but people ask about Eastern Bank in Eastern Bank is one of the few banks around that actually manages trust funds. There’s not many I think it was the only one up there. So I think you probably want to explain that as Eastern probably. When you break down, I think people have asked has a lot of trust funds like I bet the Shattuck fund is here for instance. So that’s how it quickly goes up to like 36 million, but I think that’s the type of thing people are looking for to

2:08:32 understand. So, you know, why money is there in these different places find bank. I think they all are I don’t think this I don’t think this is about Banks to be honest with you. I think it’s just but anyhow, just a little clarification. I think that type of thing would help because that jumped out and I said, I bet those of trust funds. So, thank you. Appreciate you. Thank you. Now that’s why we’re setting up the framework so we can so we can see make distinctions like that, you know. Yeah, Kathy Hempel. Are you I’m here. I’m here Kathy Kathy Hempel nine Palmer Road. First to thank you for the presentation. Very much appreciated it. I just have a recommendation. If we really are going to have this significant deficit that was projected in the middle.

2:09:18 Scenario that a communication plan be established and how this is going to be communicated to the town. And I also recommend that you utilize Community organizations. Perhaps have little meetings. I’m a member of the League of Women Voters chair of the Marblehead dams. Use use those organizations to communicate, you know, what the the pros and cons of an override are or if we’re not going to have an override what the costs are. I I think it’s complex and serious enough that you really need to have a plan on how this is all going to be communicated. Thank you. Thank you very much. Kathy. Appreciate it. Yes.

2:10:05 Brett Murray some Nabbit Street. Can we ask Swampscott to take its Podium back, please? Oh, I see it change you people at home. It’s it’s very dark blue. It should be legal in this room fair enough fair enough. You’ll given that today is February 1st. And town meeting is May 1st. And we know we were going to hit that free cash wall for years. It’s been talked about it’s been discussed and and I’m glad to see that there’s gonna be a public discussion. I would love to see, you know falling Kathy and others who have spoken tonight. I would love to have the board outline it tonight or at least begin that process because we’re already too late. Let’s be honest if we take a look at last year with the

2:10:52 school department, they did months in advance. It passed town meeting and it failed at the election box. And time is not in our side right now time wasn’t our side. This board did not do it, Mr. Keizer your new I’m gonna give you a you know, a free pass right now. You did a wonderful presentation, but this is not something that was unforeseen. This has been talked about for years and years. So I’m a little disappointed. So I was glad that Miss Noonan brought it up, but I would really like to see this war take some actions forward. Thank you very much. That’s we can Brad. Thank you. Appreciate your comments. Any others online?

2:11:34 Okay, anybody else in the audience? please

2:11:45 I have two points. The first one is I believe Steve pools gave a presentation last year pointing to exactly tonight. So anybody who says who pretends or does not think they were aware of what was going to happen? Was not here or wasn’t paying attention because that was that was definitely on the agenda at that point Mr. Caesar came in Mr. Thatcher. Keyser came in just to the right right time. Yeah, we’ll just hopefully that’s we’ll say about that. Mostly the second thing is As we speak the town is not has not submitted their 2022 cafr. I don’t understand how you can. Try and do your budget without a cafr now it turns out you did in fact do a cafr

2:12:32 and you submitted it in as a requirement for your bond issue for review. So basically it’s all done. All you have to do is put your cover letter on it and put the color in it and then you can put it out but as we speak. We don’t even know what happened in 2020. The populace doesn’t know what happened in 2022, and I don’t know whether the select boards are where what happened in 2022. I would also point I’m not sure exactly how this works out, but that documents numbers do not match up with this document. as far as expenditures and revenues So I’m not sure I would assume that we submit to the bonding authorities is correct, which means that this one is incorrect. So I think if you hear your furniture the school year 22 numbers 23 21 26

2:13:19 9. Well, they’re published for 19 20 and 21 and 22 in the cavern or in the the disclosure statement Let’s take a look. So we don’t want to be working with the wrong numbers. So the sooner you get the calf are done. Which I hope would be like tomorrow. the better off we all are

2:13:45 thank you. All right any other questions?

2:13:51 all right any I think the last item on our for this evening are the select board announcements if we have any

2:14:02 Go around the table. No.

2:14:07 I just want to thank the turn like the people who showed up tonight to participate in in your government and the process, you know, it’s It’s great to see you know, we have a hybrid meeting and to see a standing ramonly only crowd and and this many numbers that are zooming in to pay attention to this and you know, this is obviously for you know, this is going to be a conversation across the community. So please go, you know, please talk to your neighbors. Tell them to pay attention. Tell them to show up. Tell them, you know, this conversation’s coming and thank you. Thank you for being a part of the process. by being here

2:14:52 Anything no actually good just piggyback with Aaron. Just thank you to all the department heads that came tonight and to work with Thatcher and to get a an accurate. Projection of what it will look like in May. Thank you. Jim stole my thunder we are participatory government and town. Thank you very much for coming here. And with that I’d like to entertain a motion to adjourn. Second all those in favor. Okay. We’re here by a journey.