Select Board: March 17, 2023

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

0:00 Outstanding, okay. Like to bring this meeting to order we have a one agenda meeting today. And that is to go over a statement of intent regarding the town of Marblehead fiscal year 24 operating override and before jumping into that. I just like to preface our proceedings. To say that it’s the duty of the select board through the Town Administrator and his team as the select board designate a formulate and set the budget. It is similarly the duty of the select board and its designee to formulate and set an override. Immense with the budget requirements.

0:46 Now the finance committee will have a meeting this Monday with the kind of administrator and the finance director the finance committee advises the 10 administrator the finance director and all the Departments. On the budget through its budget review process and ultimately it’s tasked with approving all the budgets. Similarly. The thing com is tasked with advising and ultimately proposing the overrides financial appropriateness with regard to the budget. So I just want to frame that out. and I think what we’d like to do is what I’d like to do is entertain a motion.

1:31 to accept the statement of intent Which for everybody’s clarification it’ll become obvious as I read it out. is to frame the how and the why in which in how the town should proceed? Okay, we’re not getting into specific numbers today, but it’s basically, you know an intent. To frame up how how we hope the discussion will suggest that this discussion moves forward. So this is you know, something obviously that is subject to discussion and we will discuss this and open this to deliberation today. Um of the select board and then afterwards we will have public comment. We won’t respond to public comment,

2:17 but we will take and and note public contact. So we don’t want to you know respond to every question that might come over the transom. So with that I’d like to entertain a motion to accept this the following statement of intent. I’m going to move through this as quickly as I can. It’s a three-page document, but I think it’s very important that we that we that we spell it out. So marvelous select board statement of intent town of Marblehead fiscal year 24 operating override. The town is entering the fiscal year 24 budget season with a deficit that is resulted fundamentally from increases in salaries benefits and operational

3:03 costs where the costs of providing Services as outpaced the revenue growth under proposition to enhance. The town has also been aware for the last four years that it’s over-reliance on free cash to balance its annual budget. It’s a annual operating budget would be unsustainable and that ultimately an operating override would be needed to address an underlying long term structural deficit. the covid-19 pandemic also placed burdens on the town’s operating budget as a town augmented and redirected its operating capacity as efficiently as possible at the height of the pandemic in fiscal year 21 and fiscal year 22

3:48 The municipal government and school district have been careful that deploy one-time federal and state covid-19 funds number one into one-time sustainable capital projects to enhance the town’s capacity. And two into a one-time capacity salary increases with limited durations, which would be operative for the periods of the covid-19 pandemic as a result. The town is avoided using one-time federal and state money for embedding permanent additional operating costs as we move away from the covid-19 pandemic. I was standing the town’s fiscal discipline regarding one-time money is the costs associated with the town’s operations has accelerated recently as a

4:33 result of sustained price inflation labor shortages and increases in the cost of contractual services.

4:43 This is the title balanced fiscal year 24 budget with no operating override. So through the fiscal year 24 budget process the town will present a balance budget. That assumes no override funding. To present a balance budget the town will propose cuts to operational line items that eliminate the fiscal year 24 structural deficit. The town will determine a final structural deficit amount as part of the fiscal year 24 budget process and will identify the specific cost savings used to eliminate the fiscal year 24 structural deficit. Endeavoring to cut services with the least impact on the challenge operating performance and Service

5:29 delivery.

5:33 We’re not ready for public on it.

5:41 So as a result, there’s there’s a fiscal year 24 operating override proposals. So as a result of the contacts that I just described. The town’s current intent is to propose two separate overrides for the fiscal year 24 budget which address which address two key considerations number one the fiscal year 24 structural deficit and number two the Reliance on free cash.

6:09 So number one override to address the fiscal year 24 structural deficit. the town will determine the final structural deficit amount to be proposed as an override as part of going through the process of developing a balanced budget without an override. The structural deficit is basically defined. As the difference between fiscal year 24 revenues supplemented by available free cash minus expenditures. Revenue increases are essentially limited by proposition two and a half to a two and a half percent increase in the tax levy from the prior year plus new growth. And expenditure increases are essentially driven by contractual

6:54 obligations and inflationary increases in costs for goods and services. The unsustainable balance between revenues and expenditures has been covered in past years by relying on the use of free cash.

7:12 As the Town Administrator outlined in the state of the Town address in fiscal year 24 in the town in the as the Town Administrator outlined in the state of the Town address. Fiscal year 24 is the first year since 2005 that available free cash is no longer sufficient to cover the total difference between revenues and expenditures. The proposed override would effectively balance the fiscal year 24 budget to assure level Services funding for one year.

7:48 Override the fund the town stabilization fund. This is the second Overlord where we discussing here. The proposal to fund the town stabilization fund rest on three goals. Number one to move away from free cash as a revenue source. Free cash is a municipal Finance number that includes actual receipts and excessive Revenue estimates and unspent amounts in the department budget line item for the past year. Just ending plus unexpended free cash from the previous year. As such it is not designed to fund ongoing operations. The town should remain an appropriate and recommended free cash balance and you

8:33 should be limited to appropriate one time expenditures on a year on a year to year basis. Number two to offer the town a transparent operating Buffet buffer funding source. Because no money can be allocated from an existing stabilization fund except by a two-thirds majority at town meeting a stabilization fund brings operating stresses into the public eye and requires incredible process for explaining any stabilization uses of the funds in the public pool.

9:13 Thank you.

9:18 We also consider the use of a stabilization fund. There’s a best practice viewed favorably by Auditors and credit rating agencies. So the number three reason for a stabilization is to provide the town with a buffer going into fiscal year 25. Because the override to fund the fiscal year 24 structural deficit is a one-year plug the stabilization provides an emergency rainy day option for town. meeting and taxpayers to vote on enumerated needs

9:53 the proposed override would commit the town to weaning itself from the use of free cash for operating purposes commit the town to using transparent best practices and to provide the town with the potential Financial buffer for fiscal year 25. and Beyond to pass the proposed operating overrides will require approval at both the annual town meeting on May 1 2023 and on the ballot at the annual Town election on June 20 2023. This last section is the longer-term finance strategy going forward. the above proposals are designed to offer the taxpayers a range of conservative options for fiscal

10:38 year 24, which highlight the Practical service cuts to eliminate the structural deficit and override for this year’s structural deficit to maintain existing service levels and an override to commit to a best practices stabilization fund the fiscal year 24 budget and override proposal allow the town to complete the development of the budgeting capabilities under its adopted gfoa best practices and to get a better read on the rapidly changing economic and uncertain inflationary situation and fiscal year 25 and Beyond. This year’s investment in the beard of platform financial analysis and budgeting solution will

11:23 allow the finance department. To provide vastly expanded capabilities and fiscal year 25 to contextualize and clearly explain the town’s historical Financial condition multi-year projections and a full gfoa budget presentation embedding all the towns budgets within a strategic plan. We will compile information resources and frequently asked questions on the town’s website page to help community members learn more about the fiscal year 24 budget process and override proposal and continue to post additional information and updates over the next few months.

12:06 So this has been entered into emotion do I do I do I have Discussion. Okay. So second years and the second. Yes. Thank you Jackie. All right, so we will stop it have a delicious. Let’s go ahead and deliberate on this. It’s a long document. We have had an exploratory meeting, you know, the basically rough fleshed out the basic elements of this, but I think it’s important for the select board to you know to continue our collaboration here on that. I’d like to yes. Please yes, go ahead Jackie. Thank you. Thank you. I’ll be I’ll be brief. I think Thatcher has done a stellar

12:53 job in. Is presenting transcriptions? And I’d like to just say a few things. I’d like to see a number as soon as possible Alicia and Thatcher have been working very hard to accomplish this and it’s a little difficult to explain the the pros and cons without a number. But override Cuts or not people do have a choice. I for one hope that the override funding is our choice because it matters. Significantly depending on what the cuts are and I think that we need to set up forms to explain and listen to the public and so that

13:38 we’re not.

13:40 We’re not doing anything that people don’t believe in and listen to so. That’s all I have to say. Thank you, Jackie. Yeah, I mean I would I would agree with with everything. He said there especially the forms and listening to the public. Thank you. any other okay. I mean I have comments you go ahead. Oh, yeah sure and just a couple this is just Just from a definition perspective. I think it’s important that we use. Clear language. So when we say level service in the override that we Define what that means specifically because I think there’s you know that the interpretation of that terminology seems to be unclear and

14:28 different ways. So I think it’s important that we Specifically Define, what is that mean and we clearly lay that out to the public under?

14:40 the last page longer term Finance strategies paragraph two so

14:49 I just you know, it just seemed to all below together there. So I just separated out into some bullets some of those the proposals into just bullet points of you combining some of those ideas together. So completion of the multi-year plan, utilizing the upgraded budgeting software and adopting the gfoa best practices. So combining all of that together, which is what you know, we talked about really just looking at doing And then I think the next thing I have is as far as presenting this and the reserve is updating the financial policies for funding and maintaining a stabilization fund. I need to think that needs to be a part of the override proposal one. It’s

15:35 part of the what’s required for utilizing that plan and also that will let you know let the public know specifically where we and where and how we’re going to use that and what exactly are the guardrails on that. So, I think that that would be one of my amendments there and then this was just other notes that I have on this.

16:02 And you know, I think the assessor’s office does a really great job of. Reaching out and working with anyone who needs tax referrals or tax abatement processes. But really anything we can do to support the clear messaging that they’re trying to get out there. You know, I think this is well in their mind and they’re doing a great job to put that out there but I think that’s important that we can access anyone who needs assistance that we are proactively explaining and putting that those options out there for anyone who needs it so they can plan and then you know, I think all of this is coming into play but a clear picture of what are we doing? How are we going to do that? And what’s the plan to get there? And I will reinforce what Jackie said about the communication

16:49 because that was my that was my last edit that I had in the draft was that I put in here was a specifically for that last sentence was We had information about fa using the Tom’s website, but I also had added continue to post additional information and opportunities for public engagement over the next few months. So not just that but other ways that you know that we can engage with the public and then the other piece of this was.

17:21 We just make sure. I to them that’s one of my notes. Uh, oh the last thing would be just an overall and we talked about this the last meaning but a commitment to any positions that generate growth and give access to additional funding. I think we need to have that discussion and we need to bring that to the Forefront especially with grant writing with access to Federal friends. Like this is where that’s an opportunity for us to capture funding that we wouldn’t normally capture and helps to reduce the tax impact on the citizen. So I I feel really need to bring that up talk about that as far as our planning and what our options are there. And then the other thing was, you know, this came up

18:08 and it’s important to know just for the citizens to understand is that there was a request, you know at one point from the public. Why aren’t we, you know presenting a truly balanced without with eliminating free cash completely in this fiscal year. I think it’s important for the public understand that what we’re trying to have as a thoughtful approach and that we’re committing to them all here plan because they impact of that, you know would be millions of dollars and have it, you know, considerable impact on services in the town. So the idea is we are trying to say this is our commitment to transition from a process that we’ve been utilizing and how do

18:54 we get to a point where we have changed how we are utilizing the free cash using it in a different way reducing that method and instead putting it inside of a stabilization Fund in. Conjunction with the financial practices and updating those financial policies. So we are showing that shift but I think the impact on services in you know, I mean your would be looking at a multimillion dollar guy not you know, I mean potentially several million in the schools or those types of things that it’s not something That would be I believe a good fiscal decision. In the impact would be high and so this allows us

19:40 to make this transition in a thoughtful way. But by doing that there needs to be a commitment of cooperation with the schools cooperation with the town Corporation with all those departments that we are looking at what is our option for the next 12 months and then a secondary commitment to what are we doing for the next several years and presenting that out to the public and I think we have the tools in the resources now in play to make a commitment to spend that time for all of the Departments to really generate that education to the public and look at operationally where and how could we be doing things differently or addressing that and really giving a thoughtful analysis to the public? I know

20:28 that here wants to say something about this, but I would I would emphasize a couple of points that you made I think all your furniture very well take so. I think what we’re trying to do this here given where we are with a new Finance team and where we are with our dear God and excuse me with our clear golf platform. That were establishing the conditions where we can move forward to next year. And I think what we’re doing is we’re placing a fundamental pillar. of a future plan to have more transparent leaner clearer presentation and management of the overall budget so

21:15 and that’s why I think this proposal for an override for stabilization fund is actually very strategic and it weans as often free cash. I think free cash has always been kind of like this very difficult concept to understand right the town doesn’t understand it. And what we’re doing is removing that free cash Alliance into the public light of a stabilization fund that’s important to understand the stabilization fund is the taxpayers fund. They’re basically boy. It’s like people’s fund. That money is there and it doesn’t get spent until you make a case for spending it. Okay, so that gets to what Thatcher I’m sure you know in terms. I’m I think that you’re the question about using all three cash this year. I think that’s something that

22:01 should be understood and continue to be discussed. Yeah, and I think that was my point is that to answer that clearly to the public this is choice and

22:14 How do we systematically reduce that Reliance and take that free cash and when we generate it, although, you know, which is where we ended up here. We can generating less but what we’re generating we have a set policy to say. This is the percentage we’re going to be using into a stabilization fund and look at some of the other options that we can explore and I think there are just important for the public to understand is there are ways that we can set up special stabilization funds. There’s a lot of things that we are able to do now that are allowed under the state from a savings perspective that might not have been something that we could have done years ago. So things like special capitals, you know stabilization projects in those types of things say, you know, the Department of Labor Services gives an example of a fire truck. For example, if you have 400,000 fire

23:02 truck that you need and you look at it in putting money into that account for five years. Then you have the ability to build interest on it. You have the ability to plan for it and then the public as well aware of That helps us save money as well because instead of putting money on the back end. We’re putting it into the front end. So those are just all of the things I think it’s important for the public to know that we are actively exploring. Yes, and I know Jim is has got his hand up and I’d like to kind of make another Point relating to the agenda. Is that You know, I think the purpose of this statement of intent is not to drill down, you know to heavily on all on all the wonderful things you said and I think that’s it’s really just kind of frame the basic.

23:49 Strategic concept to go forward to give folks kind of something to orient to and set expectations. So, you know, I think I think to some extent we should try to you know, it’s tempting to kind of embed a lot of stuff in here that I think is going to take place in a public forum. And I think where Thatcher is going to deploy and and Alicia is going to deploy their expertise to talking to think, you know broadly communicating this so I just you know for the for the purpose. Yeah, that’s right. I think what you know, yeah. I just think it’s important just to give the public contacts and yeah with the understanding that that is that is part of a larger discussion that is in part of this. The

24:34 one thing that I do say though that is very relevant to this year specifically and we creating this is the implementation and updated Financial policies for specifically. Yes funding this and it’s part of What? You know is in a stabilization one. So, you know producing that as part of this process that that goes in conjunction. I do think that’s a hundred percent. Listen and I do have to give up. So yeah, I do have to say that, you know when Alicia came on board. This is one of her top priorities to do this, you know, and I think it has to come up from the professionals the civilization not disabilization fund the the energy of financial policies and procedures. I’m sorry. Yeah to make that to make that right. We’re just come

25:20 from as an idea. Was that something recommendation? I mean, I think it bubbled up through, you know, but was that recommendation from our professional staff? Yeah. Yes. It was. Yes basic tool. It’s a basic basic tool and I think down the road. Alicia just didn’t say just in talking has also said that there’s other stabilization, you know debt stabilization funds capitalization. So their other best practices. And again the idea is to is to be very clear to folks in town. You know, it’s a platform. It’s it’s an enforcing mechanism to you know to kind of just to have these discussions openly so That’s the idea behind. Yeah, I think it’s just people want to know okay, you’re going to change a process. So how and

26:06 I think this provides the answer to that how there are mechanisms for us to produce how answer and that’s what whether we’re implementing that column now, I think to for the public understand that mechanism does exist in that’s an important piece for me to communicate. I think I think you’re elucidating and I think you’re fleshing out all of many many things that are very important. So that’s something we will continue. I know Jim I just yeah I can Jim why don’t you go He’s all right.

26:38 I thought you said okay. Okay, that’s fine. But James said he’s okay, right? Okay, look beautiful any other any other comment you yeah, so I am So I think I’ll I for I do have some comments on the first piece regarding the balance budget with.

26:57 No, operating override and the first override your class and then setting less than stabilization piece right now. So the no operational override budget. What is I mean are we using like a 10% of the free cash? Are we using all of the free cash most of it? What is the amount of free cash? That we will be using in turn to. Get to those reduced service budget. So not prepared to give a specific number, right? I understand looking. Yeah, but like first like are we talking about let’s we need to use 90% of it. We need to use so well one

27:42 two to Alexis comment about

27:48 You know to go to Junction no free cash for the current fiscal year the town the the towns overall budget. And percent of its budget is depending on free cash. Which ought to be zero we’re using it. We’re relying on free cash to be 10% of the operating budget. So if we were to do a 90 degree. Time on that that would be devastated that that that’s would be like recent Ireland during the Euro meltdown right the austerity approach. The reality is, you know, the decrease in free cash is more like a very steep slope. I would say we are not voluntarily taking ourselves

28:34 off free cash. We have no choice because the the free cash is decreasing at a significant amount.

28:44 You know, my guess is somewhere in the two to three million dollars a year increase and there are some factors that we talked about in regard to. You know having to go in using the local receipts close to you know, use a conservative number, but but not relying on that to generate new free cash. So so for the years following That amount of free cash is gone as we keep tightening up the budget again. Your revenues are following. So now you have to hold your expenditures. We are generating less free cash. From the unused expenditures right people spending under the budget amount that’s getting closer and closer. So it’s it’s a

29:31 force steep decline. So, you know, we’re going from 10% to again. I I don’t want to give a specific number now because we’re we want to have a good estimate a safe conservative estimate of what free cash is. I think the reality is we’re going to use pretty much all that. We think we can safely generate. just to keep to keep things not being so asking because the reason I ask is because I think I take issue with the terminology and the nomenclature of Calling this a balanced fy24 budget. Because it’s not a balanced budget right like our expenditures are still.

30:17 Exceeding our Revenue we’re going to be relying on free cash. So I would say that this would be a deficit budget. It’s not a balanced budget. So I as a board, I would just put that out there as you know, that that language is, you know, not being truly kind of honest. It’s a it’s a budget that further exacerbate our alliance on free match. So, you know, and let’s be transparent and honest I mean the town this town has not passed a balanced budget in a year. So I take objection to calling. The no operational override a balanced budget part one. Can I respond to that? Okay, the implication that this is not straightforward and honest is really

31:03 Not cool, right. I mean what we’re saying right here. It’s not about listening. We yes, it will be balanced. Once we make the cuts. That’s the whole point. We’re free cash. It doesn’t matter. It’s balanced with three cash. That’s what makes it not balanced because you’re relying on free cash, which is where it’s which is free cash is not to be used for ongoing operational purposes. It’s for non reoccurring expensive. Yeah the way you define. How do we Define social? And that’s the thing. We need to focus on because the structural deficit. Is what we need to address to create me to we need to make Cuts in the amount of the structural deficit to balance the budget and that’s what we’re going to present. We’re going to present a balanced budget

31:51 to the town. That’s what we have to do. That’s why that term inology is in there balance fiscal year budget no operating override which means it involves costs that amount to the structural deficit as we’ve defined them. Okay, and the structural deficit is revenues. Plus free cash minus expenditures. Okay, and I know let me just let me just well, this is precisely why free cash is so hard to understand. Okay, that’s why we need in my opinion a stabilization fund. Okay, but at the end of the day When Patrick respect them telling you is that the free cash amount we’re spending all you know, basically all and we hit that wall because we don’t have enough to cover the difference between resonance and expenditures. Okay. So what we are actually one of the options is

32:38 we’re going to prepare a balanced budget and we’re going to show cuts to that in those cuts are gonna launch instruction deficit then we’re going to propose an override to cover the strong deficit to provide that one year plot. Okay, and then the third one is the more strategic long term idea weaning ourselves off of free cash and you know setting up a stabilization fund for all the best practices reasons not just we have a plan instructor here. Can I just sure and well, yeah, but please approach the table Yeah, and point taken Royalton funding sources must equal expenses be cash is considered a funding source. Yes. We’re not supposed to rely on it. It’s supposed to be for one-time Capital type of expenses.

33:27 But it still considered a funding source. Therefore legally. It is a balanced budget.

33:33 Please just go ahead and can I this is just a suggestion and listening to both points of view here. What about if we amend the statement to when it says bounce budget, it would I think was one of the statements that you put out. It said including, you know, including free cash like including available free cash. So the message it’s just clear that we’re using that. Source to get to the balance budget, so it’s labeled to balance budget, you know, it can be utilize that’s how it is and it’s just not clear to balance your budget using free cash only and that’s what exactly that’s probably this problem. So, I think it’s a little bit. Well, listen, I’m the only thing that I only objection I had was your use of

34:19 dishonestly. I didn’t say dishonest like that. Just bleeding. Mostly. Okay, it’s Mitzvah. It’s not truly a balanced budget that sense of like fiscal. That’s right information. I think that’s the only thing I’m object forms. I think this is when we have more forms with the public. That’s what we can really explain free cash because we cash really isn’t free cash. I’m designated fund balance on the general funding, right? So it’s really you know, what we thought we were gonna spend this. We didn’t we have some savings. You’re not always gonna have savings. We’re looking at inflation. We’re looking at class Rising no matter what we’re doing with that contracts. It’s eating that two and a half. So those savings that we had before we can’t regenerate those savings every year and that’s why we’re going down down. Yeah. No,

35:04 I fully understand we need to do it. It’s the idea of not using the free cash. It’s really not an option that I’m comfortable. Even presenting as a choice because it’s that dire of a number and it’s that where this is such high stakes. So I was just wanted to kind of There’s a little you know, just I just wanted to kind of like within you know think it’s important to really be honest about what balanced budget means you cheer. Yes. I’m sorry. So in the past from talking to China administrator, that’s your Keyser. What was happening was? Revenues would be underestimated right to generate that be cash. I mean in the real world, you wouldn’t underestimate those revenues, right? So that was revenues really do belong to balance the

35:52 budget. So if you look at it, there’s it’s all in how you put even look at it. He shouldn’t have been underestimating to generate Precast you to plug it should have been estimated at the correct level. That should have bounced a budget but that’s not what was happening. So now we’re trying to get there read the policies and procedures to get there. Right? Absolutely understand your point. You’re saying Hey, I want to highlight again. We’re doing this. But this is why is Alexis said this is why it would be such a dramatic impact and okay, we’re going to show all the pieces but I think they would do it. Any information session will be that’s why yes. Thank you very much you appreciate it. Just I just want to make the point once again that There we have to present a balanced budget without an override and I’m

36:37 well aware of that. Okay? Well that then when you said you were you rejecting to put you know to to actually calling and a balanced budget, I just think the terminology I just wanted to point it out that you know, I mean, let’s be honest, right? Well, right we are being very on that’s that’s what I’m prepared to move on because we are we are very honest you can take that. I mean, yeah, I mean that that’s that’s the only is the terminology you’re using that I’m objective. It’s one thing to make the argument but I think what you’ll find in this document is that the definitions are the factor? Wrote into this document are very precise and very clear. Okay, an operating a balanced budget that we will present will include the use of

37:25 free cash as it always has. Okay, so next. I would just like us to focus on the level servant funding. Yeah.

37:42 So that would be part one the first override piece to address the structural override. So there just seems to be some anxiety on the part of the school committee around. first of all like the town to me the town Means everyone in the town all the Departments. I don’t I mean it would include the school department the Recon Park the Board of Health, so I’m not sure where that anxiety is coming from, but I just wanted to like does anybody we say to town? We’re including course everybody? Okay. Just want to make that there so then all so I do think to Alexa’s Point level service funding. um, you know, it is a technical term and

38:29 I want to just make sure that this includes Let’s agree what this means so, you know, so so for me. Level service funding includes payroll contractual obligations utility costs increases which are significant this year. Out of District needs software and other licensing needs and those contractual pieces. So does everybody agree on that? But that’s what we’re using in terms of level service definition. Yes doing business doing the business that we’re currently doing. And what’s the additional Financial commitment to maintain what we’re friends. Um, so as long as we all agree, that’s the terminology here. I mean, we don’t need to specify it

39:16 and the thing in the in the document, I guess. Well, maybe just I actually just looking at this it might just be easy to just add the phrase under override to address the section one paragraph four just to say for all departments funny level service funding for one year for all departments. And then that clarifies and that’s you know, it’s it’s, you know puts it finally it’s written as a given but it’s good. Yeah, just like those. You know, let’s throw those three words in there. Yeah, that would be great. Yeah. and Okay, but so I and and then. Just another thing I would like us to consider adding to this statement, which doesn’t really appear anywhere in

40:02 the statement and I would kind of was hoping it would appear up front or there the least in the ending. in the longer term Financial strategy going forward is our commitment to a multi-year operational overrides study to actually address our underlying structural deficit because that, you know to me that needs to taste take place in June July. of this year, we need a full year momentum to undertake that and I think that if we’re going to be asking for a simple one-year plug which again, I am in favor of the import of this ass I’m

40:50 totally in favor of a one-year plug to keep the lights on but to the extent and that we commit to doing the multi-year operational review and override study that needs to take place across all departments in this town in collaboration with the town. So I would like to see that commitment made in this statement. Okay, I mean I just respond to that but a hundred percent agree with you and I think part of what we’re doing now. And by the way, you know, we’ve committed to this kind of You know progress or the by applying to ourselves the gfoa standards, right? And as I mentioned before that was one of our original stress tests of the town we passed it. We got the award, but boy, it was ugly because he

41:36 had a lot of We had a lot of spreadsheets that we have to pull together. Now. We are not only we’re Finance team in place and a great Finance team. But we’ve also got the software that we talked and that is the whole purpose of it. We’re not it’s it would be challenging right now to do a multi-year, you know precise multi year and easily communicable, you know, multi-year process. I’m success and when you say study, I think it’s really the job of the finance department to do just that right and and to kind of indeed. I think there’s a couple of things next year. We’re gonna get a better look on the economic environment inflationary environment, and we’re going to be better institution and more capable of kind of delivering a multi-year in the budget proposal. So that is

42:21 Hopefully that comes out in this but it more likely stated because it’s not expensive stated and I know Jackie chumming and I don’t want you to think they’re not seeing you Jeffy. No, that’s okay. Keep you thank you. I can wait so I you know to me I think it should be expressed in the statement that whether it’s you know. That we plan to direct our professional staff to undertake. The operational override study and you know efficiency review that we need that we all acknowledge. Apparently we all acknowledge that we need to do. I would like to see that commitment represented here. in the statement I I would not be.

43:08 I would not be in favor of that. I think that’s I don’t want to tie anyone’s hands. I think we should do what we’re doing. Now. This is difficult enough and let’s see how we come out before before we start giving them other choices to do. I really I really don’t think this is the time. to do this If you if you’re hoping that it’s July June, well, not June July August Etc. You can do that at the table if you want to.

43:40 But I I really think that’s that’s not necessary. I mean people understand that after they understand I don’t think situation as we work for no not in any way. This is a one-year solution, but I don’t know that’s that’s true. That’s right. I guess in respect one.

44:05 I think what you’re asking for is. I know for me. He might is implicit. Well, I’m supposed to be doing yeah and Alicia to as far as being you know, the the professional staff to manage the financial affairs of this community and as they’ve done other community that’s implicit up just driving for maximum efficiency and making decisions that are that are both deal with short term, but also looking at long term. I think I think you know, what what you’re asking for is is a commitment to be that external help to come in and look at it. Not necessarily. Okay. Yes because I was gonna say, you know that I guess the one concern is the, you know asking for

44:52 a very short time frame we are just you know, but the folks in place and Implement and and rolling in the software to do it. I think the whole idea of having the one year. Approach at this point is to buy us some some Runway space to do exactly what you’re asking for. So I think it’s it is implicit and if there’s this I guess a sentence that that makes it more explicit absolutely can do that. Yeah, I think yeah just historically I just feel like, you know, we kind of not held ourselves to that commitment and that’s why you know, it’s like, okay. Well, you know, there has been a Wednesday year Wednesday year. So like that’s where I’m coming from is just the historical like look

45:38 back. You know, I feel like They’re people. That you know could have you know that feel that this process should have begun in earnest. The time ago or two and so that’s where I’m coming from in terms of it being explicit at this point in time.

45:57 Um Alexa, yes, thank you. And so that was one of the things I said in the beginning and I actually read it differently. And so I mean Jackie having to have a discussion because I read your that was one of the first things I opened with paragraph two of longer term Financial strategies. I read that to actually say the uncertain and situation and fy25 and Beyond so that’s where I literally took what was in here and I just bulleted into three statements that just came out a little Easier to read where it said completion of a multi-year plan, utilizing upgraded budgeting software and adopting gfoa best practices. It’s saying we’re going to create that which is what is the work that’s already in progress. And then the second was to provide forecasting in

46:43 a rapidly changing economic environment accounting for that inflation and gives us the opportunity to really address that and then the third thing was the one that I wanted to add which was updated Financial policies for funding and maintaining stabilization bots. So I read that in the to say that that was my interpretation of what you extracted out and bullet points. Yeah. I just rather than a continuous. Yeah. It’s expressed in here. Yeah through there and I just put it in a way that I was reading this as someone in general public. How would this make sense to me too? Answer those questions, which I think Aaron is trying, you know, if I were to understand what you were asking for correctly. That was my response in my read on that statement, but I did read the intent there which is why I did not

47:31 change the intent. I simply summarize the intent except for the adding of the updated Financial policies. So, I don’t know if anyone wants to speak to that but that was my original edit that I brought.

47:45 Yeah, I mean, I think that the way the way faction framed it certainly, you know, I think the way we’re discussing. I think it certainly that. But that’s that it makes it very clear that we’re you know what we’re trying to do. Okay? Email where you specifically yeah, that’s right. Yeah. No, I mean it’s literally like right that’s right everything. I just read like I have the edit. Okay. Okay. All right. Yeah, I take it up. So again, I mean, you know, I think what we’re trying to do is provide strategic Clarity and Direction around you know what we’re What we’re going to have to do and presenting a balanced budget that will include Cuts plus two overrides that I think set us up.

48:31 Gives us the runway to you know, establish the institutional capability and then do what we have to do which is to look at, you know future environment to make future projections. So I think this is part of you know, and Bachelor of articulated this and I know Alicia has also has also consolidating this but we do it is a long-term plan to really you know get our financial our fiscal house in order and you know through technology integrating so and I think there’s any doubt about that. I do want those to make sure that we get a deliverable that fulfills what it’s supposed to do, which is really just a given intense and it’s framework and I think and to be a source of conversation or

49:17 having today. Yeah, and I think ultimately, you know, that’s where the slot boards designee. It’s especially with the interface within we’re gonna get a lot of these issues flesh that in the detail that we don’t have right now what we want to do. system I did have some I did have comments on this second override and stabilization, but I don’t like I don’t know Jim. I don’t know what’s done. But the question if they have some other things but I do want to talk. I do want to add a comment. Okay, there’s anybody else have any any additional comment or from the select board exactly your gym.

49:57 Okay. Okay, you want to say no, I just said I’m good for now. Sorry. Yeah, so my thoughts on the stabilization piece is you know with that. So that’s asking for a second override at this time. Correct. That would be two separate override device. So for me, I just feel personally that that is like biting off more than we can chew at this moment. I feel like it risks. putting our conditional override keep the lights on at Jeopardy when we go to the polls and ask for that. I don’t a stabilization fun is a rainy day fun, and it’s a great aspirational goal for a town to have I’m really

50:45 unclear as to how a stabilization fund at this time addresses are. Multi-year structural deficit issue and why we are kind of to me putting the car before the horse and establishing and having a dedicated override. For a rainy day fund that we’re not supposed to use for reoccurring costs. When in fact it’s raining really hard right now. honestly

51:13 well, that’s yeah, I mean I just I guess how does that so how does the stabilization Fund in all at all address our multi-year structural deficit To me that’s part and parcel of the planning process. By the way. I’m in favor of the stabilization fund. It is a great thing to do but we need to have Financial policies and targets and how we’re going to fund it before we like to start like, you know, just kind of like haphazardly putting money into it, you know, we need and especially in a situation. We’re not really in the place to eat doing that right now like putting away money for a rainy day like it’s pretty raining. Well, I think I think important the really important thing to understand I think about stabilization form is that it is It no dispersements can happen from that

52:01 fund unless it goes to town meeting. Right? So why would you do that now because it is because we are making a statement that we want to get multiple declining free cash balance as that, you’re explained. Okay, and so it is a commitment. to you know Certainly from a personal point of view is less practices. I think our finance team feels the same way and that’s why it’s in here. and it’s basically looking at the taxpayers of Marblehead and saying look we are going to move to a different Paradigm because we have to And the good news is is that all these, you know, all these changes and stresses will be registered in

52:48 clearly in financial terms at town meeting through this stabilization function. It’s a very important communication mechanism the very important way to have a discussion that that helps with the whole budget process because nobody had really understands free cash. It is like it is an animal of the municipal Finance, you know the world and I think we want to move away. I just think that I totally agree. We should absolutely we have a stabilization fund. We should develop the financial policies and how we want to fund it what funding streams are going to go into it. What’s our Target balance? Those are the types of things that you

53:34 set up and a lot of other towns do this as part of their multi-year operational override and so I’m worried very deeply worried that just doing a direct. override for a stabilization fund when we are also presenting a keep the lights on budget is Is going to hamper and hinder our ability to do the actual, you know, multi-year plan. I think it could confuse the issue. I think it puts at risk this. One year kind of ask that we’re asking to avoid really really painful service cuts and I do hope that people, you know consider this stuff Gap solution. I’m

54:20 just saying that I think that putting this on all so I just don’t feel like we’re in a position to be asking the voters to do this piece. So I am in favor of part one keep the lights on budget. I would like us to make the real commitment expressly in the document and I’m not in favor of doing a stabilization fund at this time. Finish it would like to speak to that and to me I you know as I look at this in my mind, I look at all of the pieces that are coming into play and we are having that s*** and you know as Alicia just spoke to when you look at handling those local receipts differently, you will generate more of that and you’ll generate less of

55:06 the revenue source that we have been using to to clear the budget. So therefore you need a mechanism in place that allows for if emergency needs develop like that’s what this does is it creates a Ability to come to the town into utilize that clear communication to the town. So to me, this is not and it is using best practices and utilizing that thought process of as we make the shift. How do we create that emergency backup? How do we put that in place that if we were to need it, we would have to come to the town and explain it and I think that’s really important as far as communication piece to I Understand where Aaron is coming from from the concern

55:51 of potential confusion. So I take that away as so we need to be more proactive with how we are communicating this to the public how we are saying, this is not just a we do this and we’re doing that. It’s not a one-level s***. It has to be four or five different levels that are pivoting and this is one of the options that we’re utilizing to Pivot and create that emergency backup. So in the event that we do encounter some sort of economic severe downturn. There’s something that happens. We have this mechanism in place to protect the town services that we need to so that’s where my thought process and this is coming from is it creates that backup emergency? Like obviously my background is all about

56:39 emergency. So this appeal to me so so I okay Jackie. Go ahead. Oh, you know what actually let let me let that responsibility and then you won’t so I spoke at I think the last board meeting when I read the state it they’re basically three reserves that municipalities have one is the free cash which we talked about. Is reserve but it should be used for one time uses. There are stabilization funds right? You just have one you have multiple purpose and in the third is living capacity meaning we’re taxing at a level below the maximum allowed by two and a half. And and unfortunately for Marblehead.

57:25 The the free cash piece we’re using every bit of it to sustain our operations. And as we said that’s decline. So so we’re going to be relying on that despite his decline in the next few years, right and that our goal is to get out of that the stabilization fund. Is specifically targeted to protecting our bond rating we have to be able to show that we have a reserve when we go out for bonding and if we’re staying right now our free cash is not a reserve because it’s being used as a revenue Source not a reserve. We need to have a mechanism to have a reserve in some form of fashion and show the bond agencies. We are

58:12 serious about having that flexibility. And as I said in the future, we want to build that with Levy capacity, but we’re not there yet. So this is what this is is putting the structural pieces in place to get us to that point and it’s the stabilization fund is primarily to protect our bond rating when we go out to Future one and just for the public that’s listening. Can you just take a minute to Why is that? Why is that Bond rating important that affects the cost of borrowing? And so the the better our finance position is the lower the cost of borrowing. We we have needs to borrow, you know,

58:57 our infrastructure our facilities. So there’s no avoiding that it’s to keep the cost of borrowing as low as possible. Yeah. Thank you. Very very simple. Yeah. Whenever people hear usually don’t understand it’s all the way to kind of think of it in the public is your credit score when you’re going out. Okay, you going out to borrow something you want to go buy a car. You have a really bad credit score. You’re gonna be paying a lot more interest. That’s what I’m reading is for a city or town. So when we’re going on we don’t want to pay lots of interest for the better our bond reading the less interest cost you have so just make these before you yeah, that’s amazing. Thank you Alicia. That’s great. Jackie please. And first I have a question, I would assume that if

59:42 we go for an override, this would be another question the stabilization fund and if that is so I think that it shows good sense, and I think that you’re The voters know what they’re doing. I think you know remember I’m still thinking about last year that we have a 24 million dollar.

1:00:08 Sidewalks and streets and it it overwhelmingly was okay and I I just think that you have to give the voters a chance and we need to make them understand what the stableization fund is for. So I I really I support it and I would support both of the the questions. Thank you jacket. I mean, I guess just you know to provide the town with a buffer going into fy25. I mean are we planning on using this tableization fund and fy25 because that’s exactly the problem. We’re in right now. Where is you know?

1:00:54 I guess that that to me stuck out stood out, you know, this is you know, we’re gonna be doing a stabilization fun. It is for non reoccurring expenses and it’s to mitigate unforeseen. Like economic downturns and right now FY 215 being another deficit year is a foreseeable event. So I wouldn’t consider that a proper use of a stabilization fund money. And again, I mean favor of funding a stabilization fund. And in favor of including it in an override. I just questioned why we would do this at this time. I would like to see this part of next year’s multi-year process that actually solves our structural deficit. Thank you. Yes, and just

1:01:41 I you know throwing this out here as looking at Aaron’s question is it sounds like you’re concerned is how it’s going to be utilized in my answer to that would be adding that financial statement which needs to be that Financial policy. That’s part of how this like. This will be spelled out. To say this is exactly how this account will be used. And so I think that would answer your question as well as the Public’s question of specifically this is what it’s created for. This is how it will be utilized and that would be clearly communicated and in my mind answered that concern up. I was just going to you know, are we are we going to be putting ourselves in a

1:02:28 position where we were, you know recreating similar problems? I think that would that would outline that answer part C of this draft statement. It’s already calling fy25 or rainy day. So it’s like I I mean like I do what the whole entire which I take, you know in seriousness like the what we’re trying to you know signal to the community. So I really you know, yeah, I think you make your point. I understand that. I think we add that, you know that you’re out of that in there because it’s it’s Common Sense thing to do. I don’t think it invites though a you know. You know anything that’s still a terrible Interiors I think right now is an excellent time to bring

1:03:13 up our conversation around a stabilization fund and as Jackie said the good thing that I know the town in their wisdom, I think we’ll understand this and basically because it’s time now we’re explicitly to the full use of through cash. We have relied on food cash. It’s not served as well. We need to move over to a State University. I think that’s what we’re going to try to better. I think that we’re gonna try to present that to the town and say look, this is something that’s really necessary and important. As long as we don’t come back here you’re from now or two years from now and we’re not in a situation and voters are like I thought we stabilize the government. Well, it’s a journey the forecast 205 and Beyond is

1:03:58 You know some rain Sunshine peeking through right? And so the goal is yeah, we’re you know, we’re we’re in a situation. Now the whole idea is put the structure in place and work our way out of it. So it’s not saying it’s going to be all sunny in 25, but it’s gonna be less rain than what we have right now and continue to improve and that’s that’s the goal. And that’s the work of presenting that forecasting information, right?

1:04:29 And I think that’s really important for the communication piece now. You know, I mean, I think that’s right just to add to that point. I think the clear of the platform is actually going to be a radical transformation in the transparency. You know that there’s a really good and and it’s you know, I think it’s going to be hopefully, you know people in town can will be able to click on what they need to know and can get there pretty quickly and it also facilitates. You know the speed with which the finance department can generate information. So that’s that’s where we’re encumbered right now. We don’t have to speed and it’s frustrated for everybody. I think next year.

1:05:12 I’ll just one last thing as that I just feel that. You know, it needs to be clear in the statement that the one year Gap override initial ask. Is just that the stabilization fund is not going to solve our our long term. Multir is not solving our structural deficit or financial out problems for 25-26 and Beyond. So as long as that’s clear to voters, you know, and again, that’s why also I emphasize I think it needs to be expressly stated in the in the in the document in the statement that you know, the town is committing, you know, the board through its professional staff is committing to a process,

1:05:57 you know. Starting this summer basically of doing the work to actually address those needs. I am curious to hear what Jim’s thoughts are on it, you know, he’s been on the board a long time his position on you know, he’s in favor of just well, I mean You okay, are there other any other comments and by the way your points you’re noted and I think that you’re going to practical sense take the feedback integrated into this draft. And yeah before concluding here, is there anybody any other? Member of the board that wants to make additional

1:06:45 points that we should know most of debate. Jim Jackie Alexa turn yes. So I mean I just add that, you know for all departments those three words, which I gave you that at it and then just so some just people yeah just clarification around those other pieces, which address what Aaron’s concerns are at that that we are outlining with that commitment is through the professional staff and I think that also helps to provide that Clarion Clarity that there are many steps that need to be taken and the Creep that, you know funding the stabilization fund and that request is one step in many steps that we need to take and I think that’s that’s where that needs to be communicated. This is just one step. Yeah,

1:07:31 and it’s a great step but it’s what I think your bullet points help really y that I so, okay. So I think what we will do. We’re prepared to take a whole load of this time. And it would be to a you know, to accept the statement of intense subject to you know, final inputs. Is that the way we would we should do anything and I mean it’s a final edits. So I think I think these are amendments to the original motion. Yeah, or to accept that amendments okay to accept amendments and then move the statement and you’ve made you’ve made notably, you know, yeah. Okay all the best. I mean my sense would be here need a

1:08:18 final I guess final look by the board to make sure yeah the attitude intense right? So I don’t know if that’s maybe maybe set up another that’s set up another. Yeah. I know that meeting. To you vote on Final right or rather than improve it now and take the yes, you know. There’s a meeting Wednesday night. Okay. So let’s go ahead and do that right over the next few days. So that means that we’ll just You know you want to proceed to that. All right, so no vote. Yeah not taking photos this time not thinking about I have the proposed. Yeah you I think we can take a little table of motion is at the right terminology withdrawn

1:09:05 or you can take Davis. Let’s go ahead specific. Yeah. Yeah. Sure Wednesday. Let’s table the motion until until Wednesday at which point we will okay, and I’m assuming that the yeah, that’s at that point. We’ll go ahead and take okay. Jackie okay. Well, actually the table which there’s no exceptions. Yeah, he’s over Point State that’s going to take the whole boat. So yeah.

1:09:39 So this is about bel-techer in favor. Mr. Knight I don’t know if he’s yes singer in favor this morning in favor, Mr. Gray and this is nice vote be recorded if when we get it here a message connection. Yeah.

1:10:10 All right.

1:10:13 I don’t know the gym has the capacity. We waiting on Jim or should we?

1:10:23 Yeah, well we listen we’re gonna move the public comment here.

1:10:29 Okay.

1:10:37 I can you hear me? Okay? Well, hold on a second. Okay, so didn’t I? The agenda. I just voted anything. Okay, so we have a unanimous decision on cabling any other motion for next like board meeting now, we will move to public comments. Yes, sir. I am Tom Mathers school committee. Just a couple of comments first law on stabilization fine. I can’t inbox for tiny little problem 7500 people. We had a stabilization. But so whether you decide to establish or not how much you find out hope that we haven’t consider establishing one and maybe the other side on how much you actually find that maybe another maybe the board consider. Number two. I appreciate on behalf of the school can be your clarification around proposed

1:11:24 language everyone to support level Services, which would include business as we contemplated now to include those contractual obligations. We have to curriculum things of that are multi year. So, we really appreciate that. I’m hopeful that you’ll consider some specificity in that and then we’re in a language that specified schools are included I need to implicit Appreciate you stating that but for whatever reason there’s actually this town I’m not from you know, only been here a couple years, but we had something blow up our public comments last night. So that’s all I want to say and then I don’t know you but

1:12:10 I always get a little swish about the word honest as well. So I think you’re asked asking for clarity, which I completely agree because I think all y’all are honest and I would hate for anyone thinking about so thank you very much us all had to say. Thank you. This just wanna know the next one discussion and it’s all a lot of things about pleasure in the year. One is the structural horse stabilization funny. I think I heard it’s gonna be two separate articles. I think that’s very important because everyone agree. He’s completely separate academics about them. I think we heard that today and different appetites with attack. Yeah. The only thing I would recommend is if they’re

1:12:57 different articles, which you are he’s put the structural one for us in get that one place. I won’t elaborate when I say that but you might want to just think about that everything going forward. The definition of the structural level was brought and I think the days and weeks going forward. We really need to work and that’s fine your letters. Wow, I think everyone the 8,000 tax day everyone who’s gonna be Definition one person might say let’s just take a snapshot of a current Staffing levels and keep that in place for money that that might be an answer Colonel keys are over here might say to support current Services. I’m just making this up. I didn’t hide directives. He might say or someone

1:13:44 else in the time. I say I mean and I keep it right obviously, you can’t have a laundry list of new departments and people but there might be a couple of key things. That’s our directors each execute those services.

1:14:01 The other thing is on the stabilization plan things. I’ll be looking forward to be clarified going forward is it actually sort of like a capital budget estate Envision to be a one-time slug of money or is it a permanent override where we actually always every year to build up the stabilization funny. And if it is that case how you keep that products actually second. So just doesn’t get mixed into the overall technology. That’s that’s a question that I think it’s gonna be have to be worked out. The last piece is one free cash and Moses. You’re right. It’s very difficult concept to understand and thing and your two will go.

1:14:47 Steve Pooler said something that I in Alicia. This may be correct. But I think it is just specific to Massachusetts municipal government. barrier as Massachusetts be on the other thing is I always do with my hair is neither free nor is a cash. In the way, okay, everyone tries to put it in context of the wrong personal and I can’t put it in context in Miami budget, but I can’t put it in context about my money budget. So what do I know when I get to the end of the month? Hopefully there’s a little extra money and I have this little posted no time. Office it has little capital projects. My wife’s 12 year old baby needs new tires little

1:15:34 money left over. You know, we’re going to do that. Now what I hope doesn’t happen at the end of the month is well, the first thing is this No money left over but second worst of that is which often happens. I need this money for Inflation because the class and he my house is volume. So I tried whatever in that perspective. So anyway, keep the conversations going this this is a big deal about these things. So thank you. Thank you very much Mr. Listen, appreciate it just for clarification. It’s technology that you unfortunately so okay. Yeah. Okay, that’s fine. Is there anybody right now? Let’s let’s go to the it looks like we have a number of hands up here. Yeah,

1:16:20 go ahead. Right right from left to right would be great. Thank you. hear me Can you hear me? Okay, here you well Jen. Go ahead. Thank you. Thank you Moses. I have a couple of questions or several questions. I don’t expect obviously to select board to answer because you had indicated you will not be responding to public comment, but I do think it’s something you need to perhaps think about as you go forward into public forums and ultimately tell meeting the first thing that was unclear to me in your discussion around an override vote to To a one-time override to cover the structural deficit was unclear whether that would be a Permanent General override.

1:17:05 Which means you would have it every single year. This is going actually back to Jim’s question on stabilization fund or is there some way similar to a debt exclusional ride where it’s a limited I guess to one year and then the Levee reverts back the following year that was unclear because if it is a Permanent General override then you are going to have that every year going forward. The next question is in regard to the stabilization fund again, you know, it makes sense the school department established one for the unforeseen special education costs. The question obviously to Aaron’s concerns is it’s one thing to establish it. The other question is how much you’re going to ask to fund it in the first year and you could fund it potentially with the sort of minimal amount and begin to build it up.

1:17:52 One thing that I also want to ask about we’ve been hearing about our town Bond rating for years. We have a Triple-A rating in Marblehead and we’ve always talked about the fact that we you know manage our but allegedly manage our finances to keep that rating now, we’re hearing we need a stabilization fund to keep our bond rating. So I am going to urge you to button that up a little bit when you talk about the bond rating and really be clear about what is necessary. We have had a high Bond rating we’ve maintained it and we’ve maintained it without a stabilization fund. And then finally, I am going to ask again both the finance department and the members of the select board and and the Town Administrator. Are you going to commit to maximizing the yield and the interest rates that you’re receiving on the cash in the

1:18:38 town as has been reported quite a bit in the last several weeks. Thank you.

1:18:44 Thank you, Jen much appreciated. next week Katherine Martin Catherine Martin, go ahead. Good morning, Catherine Martin 29 West Shore Drive. Good morning. So I was happy to hear that. There was an assurance this morning that the schools will receive level Services. I was happy to hear that in a public meeting so that we don’t have that annual passing a paper back and forth like we’re in a car dealership what it’s our children’s education because I was very concerned that the kids in this town were going to Bear the brunt of poor fiscal management and I do have to say You know, I’m not an economist and I’m not a finance person but I am I do have a lot of trepidation over

1:19:32 the current majority of the select board overseeing a essentially a slush fund given that the warning signs of where we are started back in like 2016-2017 with John McGann raising red flags, but yet we proceeded forward putting Band-Aids on things. So for me. Moving forward I’m glad we’re taking these steps. I think this statement needed to come in January. It’s March 17th, and we don’t have numbers. I think today’s presentation should have been numbers with services and expectations. I mean, we’re five weeks from town meeting. We’re talking about having Discussions with taxpayers and forums when again we’re five weeks from town meeting.

1:20:18 So, you know glad that this is getting hammered out. I’m glad that you are moving forward this needed to move forward a long time ago, and I’m happy for the commitment for the schools for level services, and I’m happy that it was said out loud in a public meeting this morning. Thank you. Thank you.

1:20:39 Who’s next?

1:20:44 Yes, go ahead Megan. Are you on oh, yes, I am. Hello. Good morning. Good morning, everybody. And I do appreciate the virtual format. So thanks very much for accommodating. It’s great. Looks like you guys have changed the screen options. So I get to see everybody at the table. So thank you for whoever’s in charge of that.

1:21:05 That being said I’m I too like what Catherine just said I am encouraged that we’re having this conversation. But it is very very discouraging to have it March 17th. We’ve heard from years in our annual reports from our various fincom directors that there’s a there’s issues that we need to resolve and last year in particular. I believe the fincom said explicitly that we needed to get going. We needed to to start planning. We needed to start having these conversations because come Tom meaning 2023. We were going to be needing more than what the town would be able to give. so I encourage you to

1:21:51 I don’t know. I’m torn between saying hurry up and get all of the meetings scheduled that you need to because obviously everything that you do everything that you do needs to be in public. I just don’t see how you’re going to make that happen. Unless you have meetings every single week and I’m not sure that’s realistic for you as a board of five volunteers. I hope you can get it done because the Forum that we held the other night, there’s a lot of frustration in public and I think that a lot of people feel that they haven’t been heard that they’ve read the financial reports. They understand the position that we’re in and their concerned. So to come on this morning and hear how much the public doesn’t understand. I would have to challenge that statement and that assumption. I think that we do understand what’s

1:22:39 going on and that we were looking for you as our executive leaders to to lead us into town meeting 2023, and I hope that happens and we’ll do all our part to attend and encourage people to attend and ask questions. I hope that that you continue to do your part as well to get us to town meeting and thank you. Thank you very much, Megan, Ron. Okay, Ron is Ron. Are you there? We don’t have your Okay, don’t what’s it? What’s happening? Right. Can you hear me? Yes, we yes we can Ron go ahead. Okay.

1:23:22 um I’m going to give you a round of applause. It’s not easy being a public official in these days.

1:23:32 Have many coming at you from all sorts of ways.

1:23:37 You know, there’s there’s a phraseology. That applies to business and government and other things. Lessons Learned This board is showing. Lessons Learned and so I applaud you for that.

1:23:59 I particularly pleased to hear about best practices.

1:24:05 Particularly, please to hear the voice of the new finance department person obviously grounded in steeped in her field.

1:24:17 We can’t be. We can’t be held up by the past. Yeah, there may be people. Maybe even I was one of them from time to time who disagree or thought things should have moved more quickly.

1:24:34 That doesn’t mean you lose faith. and give up and let the pass hold you up.

1:24:43 from moving forward and so you’re moving forward and I applied you to stay on that track that you’re on. I would agree with some previous speakers expedite the public. meetings and forums and I think we will be okay Marblehead. Thank you. Thank you very much, Ron. Now happy Hempel. You’re on I good morning. Can you hear me? Okay loud and clear right? Thank you for having this very important discussion, and I learned a lot this morning and I understand without numbers it’s difficult, but it seems to me that This free cash.

1:25:30 Discussion is somewhat critical in that if a hundred percent of it is going to be used and this is kind of going to Aaron’s comments. If a hundred percent of it is going to be used. to balance the budget and the public does not approve. An override or a creation of a stabilization fund. then we’re in in deep sneakers and For me as a finance professional for many many years. I think it’s really important that

1:26:11 I understand what amount of the free cash will be used to balance the budget this year and how much will be available? Should the town not approve? the override or the stabilization fund Thanks. Thank you very much.

1:26:35 And who do we have next time Paul Baker Paul? Go ahead. You’re on thank you Moses. Pool Baker 79 Overlook Road. Thanks so much for this discussion. I would just like to Echo Erin’s comment and seem like frustration. I mean, there’s only five of you on this committee and the fact that the one member had not one comment to say during this whole discussion is very discouragingly, and that’s what I’m going to say on that. Thank you. Yeah, I was telling technical problem. Yeah. Yeah. Thank thank you Paul. Thank you. Thank you. Okay, next comment. We still have a couple hands up. Yeah, you know.

1:27:24 Okay. Is that it? Yeah, okay.

1:27:31 So we’ll bring anybody in the room. We’ll bring public comment to a close and I think we can move to it for a motion to adjourner. Someone second spell Becker in favor. The singer Ms. Miller Mr. Knife is able to communicate. Mr. Greater in favor at least have four fifths. Okay. This meeting is adjourned. Thank you very much you