Canton, Massachusetts · Saved source text
FINCOM 20250205 Minutes
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Canton Finance Committee Minutes Voted on: 3/5125 801 Washington Street Vote: 7-0-0 Canton, MA 02021 Finance Committee Meeting Minutes February 5, 2025 Virtual Meeting Finance Committee Members Present: Dave Clough, Dan Cole, John Leonetti, Emilio Mauro, Maureen Menconi, Kristin Mirliani, Reuki Schutt and Cindy Thomas, Finance Committee Members absent: There were no members absent Guests Present: George Comeau, Library Trustee Carolyn Floyd, Director, Assessing Regen Jamieson, Conservation Agent Ellen Jones, Recording Secretary Arafat Knight, Veterans Agent Gene Manning, Board of Assessors Peg Mead, Library Trustee Randy Scollins III, Finance Director Joan Schottenfeld, Chair, Library Trustees Mike Trotta, Superintendent, Department of Public Works Diane Tyan, Director, Elder & Human Services Call Meeting to Order: Mr. Mauro called the virtual meeting to order at 7:00 p.m. Mr. Mauro introduced the Finance Committee members and the guests that were present at the virtual meeting. New Business: 2025 Town Meetina Warrant Mr. Scollins reported that the Warrant was approved at the Select Board meeting on February 4 and was emailed to the Finance Committee members the morning of February 5, however the Warrant still needed to be reviewed by Town Counsel one final time. Mr. Scollins read through the list of 36 articles of which 10 are Planning/Zoning articles. Discussion — Department of Public Works, Water Enterprise and Sewer Enterprise — FY26 Budget Reauests — Mike Trotta Mr. Mauro turned the meeting over to Mr. Trotta. Mr. Trotta stated that the Department of Public Works operating budgets are funded through the General Fund, while the Water and Sewer Departments are funded through the Water Enterprise Fund and the Sewer Enterprise Fund. For the following five departments, Mr. Trotta's FY26 Department Requests represent a zero increase over the FY26 Base Budget. 400 — Department of Public Works 425 — Street Signs 426 — Gas & Oil 491 - Cemetery and 492 — Tree Department, The following three departments represent a $9.00 increase in total. 410 — Engineering (decrease of $34,867), 420 — Highway Maintenance (decrease of $65,178) and 427 — Highway Equipment Maintenance (increase of $100,054). Mr. Trotta's Total FY26 Department Budget Request of $3,292,067 for operating salaries and expenses represents an increase of only $9.00 over the FY26 Base Budget of $3,292,058 Discussion — 427 — HiahwaV Eauipment Maintenance — FY26 Budget Request — Mr. Trotta is requesting a new position in the Highway Equipment Maintenance Department for a total $73,749. There is a GIS Tech Position that was funded 100% out of Public Works for FY25 that should have been split between Public Works, Water Enterprise Budget and Sewer Enterprise Budget, similar to how the GIS Manager position is funded. FINCOM 20250205 Minutes FINAL WFS CT.docx Page 1 of 8 2/8//25
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Discussion — 420 — Highway Maintenance — Mr. Trotta is able to fund the new position in 427-Highway Equipment Maintenance through a reduction of approximately $22,000 and $44,000 in the Highway Maintenance Laborers Salary budget line item. The other item that allowed Mr. Trotta to ask fora new position was that there was a Special Heavy Equipment Operator salary that was erroneously placed in Public Works and it should have been funded through the Water Enterprise Fund. Mr. Trotta stated that he was able to make up the $73,749 by transferring the GIS Tech position salary and by placing the Special Heavy Equipment Backhoe/Loader Operator into the Water Enterprise Fund where it should be. Discussion — Sewer Enterprise Operatina Budget — FY26 Budaet Request — Mr. Trotta stated that the only increase in the Sewer Enterprise operating budget Is the addition of $22,000 for the GIS Tech position. Mr. Scollins reported that due to amortizations in the debt service budget for Sewer is decreasing by $77,000. With regard to the Massachusetts Water Resource Authority (MWRA) Assessment, Mr. Scollins stated that the MWRA Assessment is not usually finalized until the and of the fiscal year. Based on present assumptions the MWRA Assessment is estimated to increase by $103,840 for FY26. This estimate may change between now and April based on new data. Salaries and wages for the Sewer Enterprise budget will be decreasing by $8,567 because the Sewer Enterprise Budget is lower in other areas due to retirements and new employees hired at lower rates. The number of positions has not been reduced. Discussion — Water Enterprise Operating Budaet — FY26 Budget Request — Mr. Trotta reported that the only change in the Water Enterprise Budget is $91,250 which is related to the GIS Tech Position and the Special Heavy Equipment Operator. With regard to the Water Enterprise debt service budget, Mr. Scollins stated that the $110,248 decrease is due to amortization of existing bonds. The Water Enterprise budget also includes the Issue of two new bonds assuming the estimated principal and interest costs do not change. The MWRA assessment for the Water Enterprise budget is relatively flat and is estimated at a zero increase for FY26. Salaries and wages for FY26 is estimated to decrease by approximately $8,567. Mr. Clough inquired if the Water and Sewer Enterprise budget numbers were included in the Revenue Forecast for FY26 or if the estimates were done separately. Mr. Scollins replied that the manner in which the Water and Sewer budgets have to be put forward Is that the revenue budgets have to balance with the appropriations that are put forward. As an example Mr. Scollins explained that if the Town did not have a revenue forecast that would meet the appropriations level, then a General Fund Subsidy would be required. He further stated that expenses have been estimated well within the range expected for this year. If there were higher amounts of revenue expected in the Enterprise Funds the Town would not budget for those higher amounts because of how the tax recap process works. It would result in the funds being returned to the General Fund. The common practice across the state with regard to any Enterprise Funds is to balance the revenue estimate for the Enterprise funds to match the appropriations. Mr. Scollins is comfortable with the Enterprise revenue estimates for FY26 as the Water Enterprise revenue estimate for FY26 is $120,220 less than budgeted for FY25 and similar to the Sewer Enterprise revenue estimate for FY26 which Is relatively flat. Mr. Clough inquired if the Town has special tax agreements with businesses to lower their water rates. Mr. Scollins explained that Blue Hills Ski asked last year for a special water rate for producing snow because they were concerned about the water supply from Milton. Mr. Scollins stated that the Town of Canton did not enter into any agreement with Blue Hills Ski and cannot enter into any special water agreements with any businesses because this would not be fair to other Canton rate payors. Discussion —Article 12—Appropriation to Supplement the Commonwealth's Chapter 90 Program — Mike Trotta Mr. Trotta explained that Chapter 90 is funded by the gasoline fax from the state. The formula includes the amount of roads in a Town, population in a Town and the number of people employed during the day. The state uses this formula to disburse these funds to the cities and towns. He further explained that the funding provided to Canton has been relatively flat since 2014 at $770,000 per year. In 2014 asphalt cost $67.50 per ton. The Town could pave approximately 4'/2 miles of roadways. In 2024 the Town received $775,000 from Ch. 90 with asphalt costing $105.00 per ton. Ch. 90 was basically level funded while the cost of asphalt nearly doubled. The goal under the Town's road management program in place is to spend approximately $1.3 million per year based on attempting to pave 6Y: miles of roads. Asphalt Is expected to last 15 years before it needs repaving. With the Town being funded with only Ch. 90 funds the Town is falling behind. Per Mr. Scollins the Town supplemented Ch. 90 funding with $1 million last year (completed paving Washington Street and some work on Dedham Street ) and $774,000 the prior year. The Town will be asking voters at the 2025 Town Meeting to subsidize the Ch. 90 funds with a transfer amount from Free Cash (an amount of approximately 50% of Ch. 90 funds or an amount to be determined as there are many requests for the use of Free Cash). Mr. Trotta does not believe the Federal Government's tariffs will affect the price of the oil that is being used for roads (as this oil may not be subject to any tariffs). Former President Biden's infrastructure bill/federal funds are used for state's roadway repair costs and is used for larger projects such as adding a lane to Rt. 95, bridge work or updating the interchange at Rt. 128 and Rt. 95. FINCOM 20250205 Minutes FINAL WRS CT.docx Page 2 of 8 2181125