(3-11-26 Document #8) FinCom Minutes 2-11-26 (HM)

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Canton Finance Committee Meeting
Wednesday, February 11th, 2026, 7pm
Virtual Meeting


In Attendance: Emilio Mauro, Kristin Mirliani, Nicholas Corkery, John Leonetti, Helen Mancuso, Evan Patton, Cindy Thomas, and Ronald Wilson.
William Scollins – Finance Director
Absent: Reuki Schutt
CCTV Recording
Recording Secretary: Allison Neff
Minutes Approved 3/11/2026

Chairperson Mauro called the meeting to order at 7:02pm.

CONSIDER VOTE on FY27 SCHOOL and MUNICIPAL BUDGET TARGETS

Finance Director Scollins presented the formula used by the Town for the past 15-20 years in allocating incremental revenues between the School and Municipal budgets. The 2nd page of the document contains the history of the formula and shows that the split range between School and Municipal funding has stayed very stable and consistent.
There were no Committee questions regarding the budgetary history.
The formula starts with the FY27 general revenue estimate, which the Finance Committee voted on last week, then deductions are taken from that to arrive at the net incremental revenues. The total deduction to the FY27 revenue is $133,635,997, leaving $4,120,595 in New Funding for the FY27 Budget. 66.85% is the Schools share and 33.15% is the Municipal share.
The School budget target is $62,172,973, while the Municipal budget target is $30,957,473, adding to a budget target total of $93,130,446.
Mr. Patton asked for clarification on where the 66.85% & 33.15% percentages are derived from and Mr. Scollin’s replied that they are the FY 26 School base budget divided by the total of the FY26 School and Municipal budgets, and the FY 26 Municipal base budget also divided by the total of the FY26 School and
Municipal budgets.

Mr. Scollins suggested a motion be made to accept the target for the FY27 Schools and Municipal budgets, and noted that it will be a difficult ask for the Canton Public Schools as they will have to pare back significantly to make up for the shortfall in requested funding. Mr. Leonetti asked about the Committee’s responsibility when there is such a large gap in funding falling short from the amount requested by the Schools given that the numbers are figured out by formula. Mr. Scollins responded, noting the Town’s excellent history in splitting these revenues fairly and equitably. Both the Schools and Municipal departments will need to pare back, mostly driven by the rising cost of contractual obligations and increased expenses on the Schools’ side, like Special Education and transportation, which is why there is a SPED reserve account (it is expected that $1 million will be contributed there). The Committee will hear about the needs of the School and Municipal Departments, but they will both have to find places to pare back. Chairperson Mauro noted that the Committee is voting based on the revenue forecast, and this target tells the School and Municipal Departments what amounts they are allocated. The Finance Committee will vote their recommendations based on what they hear from the various departments, in addition to the Select Board and School Committee, in later meetings.
Mr. Patton made a motion to accept and recommend the target budget of $62,172,973 for the Schools, and 30,957,473 for the Municipal budget for FY27 as written and presented. Mr. Leonetti seconded the motion.
Discussion: no further discussion.
Motion passed 8-0-0.

MAY 2026 ANNUAL TOWN MEETING WARRANT ARTICLE DISCUSSIONS/VOTES:
 
Ms. Thomas suggested assigning discussions to Committee members as they review, though Chairperson Mauro pointed out that some discussions may have boiler-plate templates that can be reused from past years. The Committee agreed to see how it goes as they proceed regarding discussion assignment.

ARTICLE 7 - PAY BILLS of PRIOR FISCAL YEAR

To see if the Town will vote to raise and appropriate, transfer from available funds, or borrow pursuant to any applicable statute, a sum or sums of money to pay any unpaid bills of any prior fiscal year; or to take any other action related thereto.

The purpose of the Article is to pay outstanding bills from the past fiscal year. Some years there may not be any outstanding bills, but this year there are three. The Town has to vote to pay these bills due to MA General Law, which states that a prior year’s bills cannot be paid with a current year’s appropriation. This action requires a 4/5 vote At Town Meeting (which is a very high threshold) because the bills are old and the Town needs to ponder the legitimacy of them.
The first is a bill for water meter repair from late 2024 totaling $317.19 that was put forward by the DPW Superintendent.
The second is a fuel adjustment error from Republic Services. Mr. Scollins noted that Republic Services accidentally credited the Town for fuel costs twice in the past prior fiscal year and this is a correction to that.
The third is an invoice from the Canton Citizen which was received after the end of the Fiscal Year; the ad placed in the paper was an advertisement for the Police Audit Community Forum.
These three expenses will be charged to the FY26 budgets they would have been charged to if paid in FY25.
Ms. Mirliani asked about the Republic Services bill, questioning whether any compensation to the Community in regard to the strike is forthcoming before this bill is paid. Mr. Scollins stated that the matter was not discussed in the last meeting, but one article (Article 8 being reviewed later during this meeting) is an adjustment to the FY26 accounts; one of those adjustments in Article 8 is to move the credit of $204,000 Republic Services gave the Town to compensate for the disruption. 
Mr. Patton pointed out that the Canton Citizen invoice has a due date of 5/3/25, which was before last year’s ATM, and Mr. Scollins explained that the invoice had not been received by the end of fiscal year 2025. 

Ms. Mirliani made a motion to recommend Article 7 - That a total of $2,265.66 be appropriated to pay bills from prior fiscal years for the purposes and vendors set forth below, and to meet this appropriation a total of $2,265.66 be charged to the listed Fiscal Year 2026 appropriation accounts voted pursuant to Article 36 of the 2025 Annual Town Meeting as follows: $317.19 to Sensus Metering System for water meter repair, $1,218.47 to Republic Services for a fuel adjustment error, and $730 to the Canton Citizen for the Police Audit Community Forum Ad as written and presented. Ms. Thomas seconded the motion.
Discussion: There was no further discussion.
Motion passed 8-0-0.
 
Committee members agreed that the boiler plate discussion in the Warrant Draft is sufficient unless given further discussion, which no Committee members requested. Mr. Patton suggested that a note be included to inform concerned citizens that the Republic Services remediation for the service interruption is part of another Article at the Town Meeting. Mr. Scollins agreed to add a brief note referencing that inclusion in the next article.

ARTICLE 8 – ADJUST FISCAL ‘26 ACCOUNTS

To see if the Town will vote to increase/decrease or otherwise adjust the appropriations heretofore made for the Fiscal Year 2026 beginning on July 1, 2025 and ending on June 30, 2026 and the revenue sources to meet those appropriations, as voted pursuant to Article 36 of the warrant for the 2025 Annual Town Meeting, and to raise and appropriate, or borrow pursuant to any applicable statute, transfer from available funds to meet any such increases or adjustments; or to take any other action related thereto.

There are 2 adjustments to appropriations proposed under this article.

Motion 1: 
The supporting documentation from the MA Department of Revenue (CS1ER) is the final revenue portion of the Municipal Cherry Sheet Estimates for the current Fiscal Year. The Total Estimated Receipts ($12,716,186) is the final number and is $316,264 higher than the Governor’s proposed budget; the Schools’ budget would have benefited from this difference. Assessments were also increased ($163,269), so the net change is $152,995 and that amount is to be added to the School Budget for the current fiscal year.
Mr. Leonetti asked for clarification on whether the $152,995 is reflected in the budget formula, and Mr. Scollins responded that it was; given that the Town voted to do the same action last year it was assumed the Town would do the same this year and the total was added to the Schools’ FY26 base budget, but it will only be confirmed if this Motion passes.

Ms. Thomas made a motion to recommend Article 8, Motion 1 - That $152,995 be raised and appropriated from FY26 State Aid to the Town to supplement the voted School Department Budget voted under Article 36 of the warrant for the May 2025 Annual Town Meeting as written and presented. Ms. Mirliani seconded the motion.
Discussion: Mr. Leonetti asked for confirmation that the Committee is only voting the motion at this time, rather than the whole article. Mr. Scollins confirmed this, noting that the article in its entirety is approved by the Select Board and Town Counsel, and cannot be changed, but the Finance Committee votes each motion individually.
Motion passed 8-0-0.

Motion 2:
This motion will move money to the trash budget, as these funds reflect the credits received from Republic Services for the strike disruption. The funds will go to the DPW, as they incurred extra costs during the strike.
Ms. Thomas asked about the charges for the police details that were following the trash trucks and Mr. Scollins informed the Committee that Republic Services hired the details themselves and is current on all police detail bills. Ms. Thomas noted that this may be important information to add to this discussion, so members of the public are aware.

Ms. Thomas made a motion to recommend Article 8, Motion 2 - That $204,000 be transferred from the FY26 Trash Collection Budget, account #14332-52901, voted under Article 36 of the warrant for the May 2025 Annual Town Meeting to the Department of Public Works Solid Waste Disposal Budget, account #14332-52905-REPSV, voted under Article 36 of the warrant for the May 2025 Annual Town Meeting as written and presented. Ms. Mirliani seconded the motion.
Discussion: Mr. Patton noted that the 3 supporting documents for this motion includes an invoice for 7/1/25-7/31/25 and one for 8/1/25-8/31/25, and another for 7/1/25-8/30/25 and these are overlapping dates. Mr. Scollins responded that these invoices were generated after the strike because the Town did not pay any invoices until after it ended, and they are accurate.
Motion passed 8-0-0.

Chairperson Mauro suggested that the discussions for the two motions under Article 8 will be assigned as one item. Mr. Patton accepted the assignment.

ARTICLE 9 – RESCIND UNUSED BORROWING AUTHORIZATIONS

To see if the Town will vote to rescind unused borrowing authorizations previously voted by the Town; or
take any other action related thereto.

Mr. Scollins explained that this is a standard article which does not always have something under it, but does for this year’s ATM. All borrowing authorizations are made at Town Meeting, but if the entirety of the debt was borrowed any unused authorizations are rescinded to clean up the books.
Authorization was given at ATM in 2025 for the Phase III 5-Year Sewer Capital Improvement Plan; the MWRA provided funding in two forms. This funding was not a supplement, but rather a primary source; it gave the Town a no-interest 10-year loan which reduced the required authorized amount, and also gave a grant of $793,657.50. Rescinding this authorization means the Town can no longer borrow these specific funds. Typically, in a non-MWRA bond, the article already contains language to rescind unused portions, but MWRA documentation doesn’t include this language. 
Mr. Mauro asked if the rescinding allows the unused funds to be available for reallocation as part of the enterprise fund, or how the full rescinded amount becomes available again for debt borrowing. Mr. Scollins explained that debt capacity is town-wide, rather than specific to enterprise funds, though Sewer Infrastructure authorization is considered outside the borrowing limit.
Mr. Leonetti asked if the Committee would be hearing about this project again now that it is authorized. Mr. Scollins noted that the liaison for the Public Works Department could have a conversation with Mr. Trotta to get up to speed on this project, but it is not something the Finance Committee would discuss as it is considered operations.

Ms. Thomas made a motion to recommend Article 9 - That the following unused borrowing authorization previously voted by the Town be hereby rescinded: 5/12/2025 Article 13, Motion 9 – Phase III 5-year Sewer Capital Improvement Plan in the amount of $793,657.50 as written and presented. Mr. Patton seconded the motion. 
Discussion: There was no further discussion.
Motion passed 8-0-0.

Ms. Mirliani volunteered to write the discussion.

Mr. Leonetti departed the meeting at this time.

ARTICLE 10 - APPROPRIATE FUNDS FROM OVERLAY SURPLUS ACCOUNT

To see if the Town will vote to appropriate funds from the Town's Overlay Surplus account for purposes voted by the Board of Assessors; or take any other action related thereto.

Mr. Scollins noted that this is an interesting situation; the Town learned that the deeds and plans for 3 properties owned by Town were not properly recorded many years ago (possibly 20+ years ago). Another project is advancing separately that requires these missing documents to be on file with the Registry of Deeds in order for that project to move forward. The Board of Assessors agreed to release $75,000 from the Overlay Surplus (which is over $5,000,000 that is part of the Town’s reserves) to fund the legal work associated with perfecting the records for these 3 properties at the Registry of Deeds. He noted that when overlay funds are released they automatically have to move to Overlay Surplus, because they have to be appropriated at Town Meeting.
Mr. Patton noted that the expected funding needed ranges from $43,570 to $72,560, and questioned what happens to the remaining/excess money. Mr. Scollins stated that since this is a specific request to fund a specific project, whatever is not spent will drop out to the General Fund and be certified as Free Cash. Ms. Mirliani noted that the motion says “professional services legal account” and asked if it should instead say “professional services/legal”. Mr. Scollins responded that this entire effort is being spearheaded by the Town’s legal team, so they are the entity driving the work and billing for this time and any time for professional services required, therefore the motion is not worded restrictively. Chairperson Mauro noted that the Overlay Surplus is particularly prepared to address issues that come up in the Assessors’ work of evaluating properties and looking over tax rates, and Mr. Scollins agreed that this is an appropriate use of the funds. He noted that the Overlay Surplus can be used for any legal government purpose; the most recent example was $1.5 million used for the rink reconstruction project.

Ms. Thomas made a motion to recommend Article 10 - That Seventy-Five Thousand Dollars ($75,000) be appropriated from Overlay Surplus Account 100-12326 to Assessor's account# 11412- 53126 Professional Services Legal as written and presented. Mr. Patton seconded the motion.
Discussion: Ms. Mancuso asked where the Overlay Surplus is shown in the budget documents, and Mr. Scollins informed the Committee that overlay funding is part of the Town Reserves and the breakout can be found in the supporting documents for the July 4th article.
Motion passed 7-0-0.

Ms. Thomas volunteered to write the Discussion for this Article.

ARTICLE 11 – AUTHORIZE CERTAIN REVOLVING FUNDS

To see what new or additional revolving funds, pursuant to c. 44, section 53E ½ of the General Laws of the Commonwealth, the Town may establish by amendment to Article VIII ("Financial Regulations"), Section 16
("Departmental Revolving Funds") of the General Bylaws of the Town and to see what amendments if any the town may vote to existing revolving funds contained in the Town's Bylaw, and to determine the limit on total amount that may be expended from the Town's revolving accounts, for various boards, commissions or departments of the town, for the fiscal year beginning July 1, 2026 and ending June 30, 2027; or to take any other action related thereto.

Mr. Scollins explained that Revolving funds are funds that are allowed to be maintained independently from operating budgets; these funds can be used for specific stated purposes associated with these funds in the Town’s bylaws. Funds in these accounts carry over if there’s any balance. There are no changes from the spending limits set last year, and no departments have requested any changes. 
Mr. Mauro pointed out that the table says “FY26” spending limit; Mr. Scollins noted it was his error and he will make the edit.
There were no questions from the Committee.
Mr. Patton made a motion to recommend Article 11 - That the spending limits for the revolving funds established pursuant to General Bylaws Article VIII, Section 16 pursuant to the provisions of MGL chapter 44, section 53 E ½ for the 2027 fiscal year beginning July 1, 2026 through June 30, 2027 as set forth below, and that each Revolving Fund shall be credited with the balance remaining in such fund at the end of the FY 2026 as follows:
Revolving Fund# Name of Revolving Fund FY27 Spending Limit
110Veteran's Services Special Revenues $100,000
119 Library Revolving Fund $75,000
130Recreation Revolving Fund $650,000
134 Pequitside Farm Rentals $50,000
135 Greenlodge Street Parking Fees $100,000
136 Beautification Fund $10,000
137 Animal Control Special Revenues $50,000
138 Library Building Rentals $50,000
140 COA Revolving Fund$150,000
141 Board of Health Special Revenue $50,000
142Paul Revere Heritage Site Rolling Mill$250,000
and Open Space Fund 
145 Traffic Mitigation Fund $50,000
152 Paul Revere Heritage Site Museum Fund $100,000)
as written with the correction made: changing “FY26” to “FY27” in the table. Ms. Thomas seconded the motion.
Discussion: No further discussion.
Motion passed 7-0-0.

The article discussion is a boiler plate copy from last year and there were no objections from the Committee regarding using it for this year’s warrant.

ARTICLE 16 - APPROVAL OF FUNDING FOR THE ANNUAL 4TH OF JULY COMMUNITY CELEBRATION

To see if the Town will vote to raise and appropriate, borrow pursuant to any applicable statute, transfer from available funds, a sum of money to be expended by the Director of Parks and Recreation, and with the approval of the Select Board, for the purpose of funding the annual July 4th community celebration in 2026; or
to take any other action related thereto with the intent these funds be available in FY26 in anticipation of July 4, 2026.

This is a standing annual article to fund the Community’s July 4th celebration. Mr. Scollins noted that, given the nature of this celebration, it’s more appropriate for Town Meeting to authorize this spending rather than it being under a specific department budget. Last year $50,000 was appropriated to cover all expenses, but this account has a current balance of just over $30,000, so another full $50,000 is not needed this year.
Mr. Scollins explained that the language says “in anticipation” so that funds may be spent in preparation; the funds can be spent immediately after an affirmative town meeting vote, rather than waiting until July 1, as preparations and planning must be done sooner.
Mr. Scollins shared the schedules laying out where these funds are coming from in a document called FY27 Possible Free Cash Appropriations at May 2026 ATM. These are all the Free Cash appropriation requests Mr. Scollins is aware of. While the July 4th Celebration appropriation is for $25,000, the total for all is approximately $2,000,000 less than the available amount. The Cash Reserve Balances table shows what is in the Overlay Reserve, Stabilization Account, and where the free cash is from. 

In regards to considering other Free Cash appropriations, Mr. Scollins explained the BGFE (Budgeted General Fund Expenditures), stating that the Town’s target is to keep the General Fund Reserves at a minimum of 15% of the BGFE. While it was under 15% after the crash of 2008, it has been steadily at or above target for years. The Town generally does not hoard money beyond the target, so for the last 3 or 4 years the entirety of the excess has been voted in articles at town meeting. However, given the slowdown in the building of reserves and challenges expected in FY27, that approach is not being suggested this year.
Mr. Patton asked if the references to FY26 on this chart should be FY27. Mr. Scollins explained that the answer is no, because the vote was taken in FY26, and expenses start in June, so this article makes the funds available in FY26.

Ms. Mirliani made a motion to recommend Article 16 - That the sum of Twenty-Five Thousand Dollars ($25,000) be transferred from Free Cash (Undesignated Fund Balance) to be expended by the Director of Parks and Recreation with the approval of the Select Board, for the July 4th community celebration in 2026 with the intent that said funds shall be available in FY26 in anticipation of July 4, 2026 as written and presented. Ms. Thomas seconded the motion.
Discussion: no further discussion.
Motion passed 7-0-0.

Mr. Mauro recommended adding a note to the article discussion about why the appropriation is $25,000, though spending up to $50,000 is allowed, and Mr. Patton agreed. Mr. Scollins agreed to add this note to the article discussion.

Mr. Mauro asked if there is any sort of insurance if this money is spent and the event does not take place or is suddenly cancelled. Mr. Scollins responded that he is unsure how the Director of the Parks and Recreation Department manages that aspect, but he will be attending a future Finance Committee meeting to discuss his budget and can be asked at that time, or the liaison to that department can reach out for that information.

ARTICLE 18 – APPROPRIATION to INCREASE CAPITAL STABILIZATION ACCOUNT

To see if the Town will vote to raise and appropriate or transfer from any available funds or borrow
pursuant to any applicable statute, a sum of money in order to increase the Capital Stabilization Account, or to
take any action related thereto.

This is a request to fund $1 million from the Free Cash Reserves (as just reviewed under the last article discussion) into the Capital Stabilization Account earmarked to pay for carrying costs/short term interest costs associated with the construction of the new Galvin Middle School. This will spare citizens from excluded debt tax during construction and allow the Town to only begin charging excluded debt tax when the project is permanently bonded in FY30. This means voters will not have to pay incremental excluded debt taxes before the permanent bonding. 

The funding sources to pay the carrying costs of the construction project are a reimbursement of the feasibility phase (~$739,000), the Capitalization Stabilization Fund, which has been funded every year since FY23 and has been collecting interest ($8 million by FY30), and ~$300,000 in premium received from the Bond
Anticipation Note buyer. The MSBA will audit each aspect of the project prior to reimbursement, as they do for all projects.
Mr. Patton noted that the documentation shows the Town can expect to pay interest in excess of $900,000, and it is mentioned in the draft discussion that a 2/3 vote is needed for withdrawals. Mr. Scollins clarified that a 2/3 vote is required for any amount to come out of any stabilization account, and went on to say that those particular funding elements will be isolated in the ATM vote; the vote for short term interest debt-service is its own line within fixed costs under Article 48. Chairperson Mauro stated that this article only requires a majority vote because funds are being transferred into the Capital Stabilization Account.
 
Mr. Patton made a motion to recommend Article 18 - That the sum of One Million Dollars ($1,000,000) be appropriated to the Capital Stabilization Account (#801) and to meet this appropriation, One Million Dollars ($1,000,000) be transferred from Free Cash (Undesignated Fund Balance) in the Treasury of the Town as written and presented. Ms. Thomas seconded the motion.
Discussion: no further discussion.
Motion passed 7-0-0.
 
The Committee discussed using the article discussion based on last year’s, but Mr. Patton suggested that now that the Stabilization Account is being actively used, the last two sentences should be edited to be in the present tense. Mr. Scollins suggested including a reference to Article 48, and Mr. Mauro agreed. 
Mr. Patton volunteered to write the article discussion.

ASSIGN LIAISON to CENTRAL MAINTENANCE DEPT.

Central Maintenance was accidentally not included on the previous liaison list, as it is a new department. Mr. Wilson volunteered to be the liaison.

VOTE MINUTES
There are no minutes prepared for voting yet.

Chairperson Mauro reminded the Committee that there is no meeting next week and then 2 meetings taking place the following week on 2/23/26 and 2/25/26. The Committee will decide if the 3/2/26 meeting is needed at the 2/25/26 meeting.

The interview schedule is currently in flux as the recording secretary schedules guests, but Mr. Scollins will send out an updated schedule with the agendas going forward.

Ms. Thomas wondered if the schedule needs to be more realistic about timelines, and noted that some department representatives’ usual conversations take longer than is allocated on the current schedule.

ADJOURNMENT

Ms. Mirliani made a motion to adjourn at 8:51pm. Ms. Thomas seconded the motion and it passed 7-0-0.

Minutes reviewed by: Helen Mancuso

Respectfully submitted,

Emilio E. Mauro, Jr.
Chair, Canton Finance Committee

REFERENCED DOCUMENTS:
Agenda – February 11, 2026
FY27 Split Guideline & General Fund Revenue Forecast
FinCom Article Support Materials