Canton, Massachusetts · Saved source text

November 08, 2018, Finance Committee Meeting. Minutes

Finance Committee · Record date 2018-11-08 · Record 8f1304dc93a88a7d56

Saved text from 6 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.

Meeting of the Canton Finance Committee                    Minutes Voted on: 1/17/19
                                                  Meeting Minutes                                Vote: 7-0-0
                                            Thursday, November 8, 2018

 Finance Committee Members Present:
 Christos Arsondiadis, Rob Barker, Dan Cole, Cynthia Holcombe, Emilio Mauro, Tim McKenna, Cindy Thomas and
 Wai Wong.

 Finance Committee Members Absent: Barbara Saint Andre.

Guests Present:
Charles Aspinwall, Town Administrator
Steve Choiniere, Supervisor of Facilities and Maintenance, Department of Public Works
Jim Murgia, Finance Director
Ellen Jones, Finance Committee Secretary

Opening: A meeting of the Canton Finance Committee was called to order by Chairman Barker at 7:00 pm. on
Thursday, November 8, 2018 in the Salah Meeting Room of Town Hall.

A.       Approval of Agenda

Chairman Barker reviewed the items on the agenda which included a discussion of a Reserve Fund Transfer
Request for the Police Station roof.

B.       Announcements

There were no announcements made by the Chairman.

C.       New Business

Reserve Fund Transfer Request - $45,000 —Police Station Room -Discussion with Charles Aspinwall, Town
Administrator, and Steve Choiniere, Supervisor of Facilities &Maintenance, Department of Public Works

M r. Aspinwall thanked the members of the Finance Committee.

M r. Aspinwall offered the following information about the Police Station roof project:
    • The purpose of the $45,000 Reserve Fund Transfer request was to fund the repairs for the upper roof of
         the Police Station (see meeting documents).
    • The base cost of the project is $39,100 with contingency costs of approximately $5,000 to cover any
          unforeseen costs or problems that might occur, particularly the drains located in the roof.
    • The price for the project was obtained through the Operational Services Division (OSD) bid list.
    • There was a prior appropriation of about $40,000 made for fiscal 2018 for the area indicated in pink
         (lower roof) on the schematic drawings (see meeting documents).
    • At the time of ATM May 2018 the upper roof was operating fine with no leaks.
    • During the summer of 2018 there were more leaks that occurred in the upper roof.
    • The Police Chief had previously indicated to Mr. Aspinwall that during any substantial rainfall there were
         significant leaks throughout the Police Station Building and that he was concerned that equipment could
         be damaged in the building, specifically if damage were to occur in the evidence room. Moisture in the
         ceiling tiles could be a problem as well. The cell area. has experienced leaks also.

M r. Aspinwall turned the discussion over to Mr. Choiniere to explain the cause of the leaks in the upper roof and
the schedule for the work.



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Mr. Choiniere provided a detailed written explanation (see meeting documents) for the repair of the upper flat
 roof as well as the following information:

     •   He had obtained OSD bids from the prior year for doing the entire roof but that the funds were not
         enough to cover the upper roof repair.
     •   Because of the inclement weather in the 2-3 weeks prior to the 11/8 Finance Committee meeting the
         Maintenance Division has had to place barrels instead of buckets under the leaks. Sand bags were also
         being used for patching in anticipation of heavier rain predicted.
     •   The Maintenance Division has been working with Sarnafil (a Canton-based roofing company)to replace
         the roof.
    •    The roof that had been installed 16 years ago was called a Stevens TPO (a type of PVC). Unfortunately,
         the white roof had been adhered to black sealant. An excessive amount of drying and decay had taken
         place in the joint areas, which essentially was ripping the roof apart. The roof has been patched
         n umerous times but now needs to be replaced. His estimation was the roof should have lasted 20-25
         years but has only been in place for 14 years.
    •    Mr. Choiniere used the two bids from the prior year and reached out to them for updated pricing.
    •    He further stated that Titan Roofing was the cheapest for this section of the roof and assured the Town
         that this would be completed within the next few weeks.
    •    Mr. Choiniere was expecting the roof as indicated in pink on the drawings and the Library roof to be
         completed soon.
    •     Different companies would be completing the upper roof and the lower roof. Both companies are
         q ualified representatives of Sarnafil.

I n response to Chairman Barker's question about the possibility of changing the pitch of the roof to accommodate
air conditioning or ventilation etc., Mr. Choiniere was satisfied with the upper roof being flat because the design of
the roof was made to accommodate any excess water to drain properly off the roof. The roof indicated in pink was
problematic in that most of the mechanicals were in this area with roofing six feet up the walls.

M r. Choiniere explained that in the case of the Library roof the drain had been placed higher than the roof thereby
causing a pool of water at least one-inch deep to collect and settle on the roof.

M r. Aspinwall explained that the roof was no longer under warranty and the contractor that had originally done
the work on the Police Station roof was no longer in business, thereby the Town had no recourse.

I n response to Mr. Cole's question about the longevity of the Titan Roofing Company, Mr. Choiniere did reach out
to Sarnafil and the factory representative had positive reviews on the pre-qualified roofing companies that were
listed on the OSD bid list. In regards to Mr. Cole's question if the roof were to fail which company would the
Town's recourse be with, Mr. Choiniere stated that the 20-year material warranty would be with Sarnafil but that
the workmanship for 2-3 years would be with Titan Roofing Company.

I n response to Mr. Mauro's question regarding damage to any areas in the interior of the Police station, Mr.
Choiniere stated that there had been damage to ceiling tiles (at $14.00 per tile). No wood floors have been
affected as most areas have vinyl flooring. The roof decking has held up well because it was made of plywood
i nstead of particle board. There is also 8-12 feet of space between the suspending ceilings and the roof which
helps with ventilation.

Ms. Thomas was in agreement with the need for the funds for this replacement but questioned the need for these
funds to come out of the Reserve Fund instead of the Board of Selectmen mitigation accounts or other sources of
funds. Mr. Aspinwall stated that the BOS had discussed the source of funds and it had been determined that this
was an unforeseen and emergency circumstance and that it was appropriate to request a Reserve Fund Transfer
i nstead of accessing mitigation funds.



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A motion made by Ms. Thomas to transfer $45,000 from the Finance Committee Reserve Fund to the DPW
 Building Maintenance Division for the purpose of repairing the upper middle Police Station roof was seconded
 by Mr. Mauro. Vote: 8-0-0.

 M r. Choiniere thanked the members of the Finance Committee

 M r. McKenna inquired of Mr. Murgia if this was the first transfer for FY19 from the Reserve Fund. Mr. Murgia
 confirmed that this was the first transfer from the Reserve Fund leaving a remaining balance of $455,000. He
 further stated that this was favorable given that the Town was almost half way through fiscal 2019 and had not
 had to utilize any of the Reserve Fund. The $200,000 transfer that took place in October had come from the fiscal
 2018 Reserve Fund because the Town had not yet closed the fiscal 2018 books.

M r. Cole inquired if there was a listing of other available funds, how many and what type of funds and the balances
i n those funds. Mr. Murgia referred to the BOS mitigation funds that have accumulated balances in those from
different developers and entities that gave the Town funds for various projects. There are also trust funds and
capital project funds but the best fund that could be used for this type of emergency request would be the Finance
Committee Reserve Fund. Mr. Murgia stated that the Reserve Fund was not really a fund but that there is an
annual budget for the Reserve Fund which is part of the General Fund #100. Mr. Murgia also stated that there are
Stabilization Funds which help to keep the Town's bond rating in a favorable position.

Chairman Barker requested of Mr. Murgia to put together a listing of all the available funds for the Committee.
M r. McKenna referred Mr. Cole to the Finance Committee's Recommendations (aka warrant)from last year's Town
Meeting in which some funds that the BOS controls are listed in the warrant. Mr. Murgia volunteered to the
Committee that if the Committee wanted to spend approximately one-half hour at a future meeting that these
funds could be shown on the screen for public viewing and that he could provide a brief description of the purpose
of the funds. Mr. Cole and Chairman Barker agreed that that would be a great idea for the Committee members as
well as the viewing public.

D.       Other Business/Open Issues

ATFC (Association of Town Finance Committees) Annual Meeting —Update from Mr. Mauro & Mr. Cole

M r. Mauro provided a recap of the ATFC Annual Meeting held on Saturday, November 3 attended by himself, Mr.
Cole and Mr. Murgia.

Some of the highlights of the ATFC meeting that Mr. Mauro provided were as follows:
   • Workshops offered in the morning and afternoon addressed such issues as budgeting and how to prepare
        that information so that the "stakeholders" or public had a better understanding of that information
        especially with regard to an open town meeting form of government.
   • Workshops also included how social media could be used by Finance Committees to enhance the work of
        the Committees.
   • Another topic covered at the meeting was holding Citizens Academies to educate the citizens on how the
        Town is governed and the budgeting process.
   • The establishment of fiscal management policies and wise forecasting to help the Town to maintain a high
        bond rating was also discussed.
   • Discussions also took place regarding collective bargaining.

M r. Mauro stated that the annual meeting was a great opportunity to hear from other towns as to problems they
are facing and the solutions they are using to solve the problems. He encouraged members to attend.

M r. Cole stated that he thought the annual meeting was a great orientation and encouraged new Finance
Committee members to attend. He also referred to Jay Ash's (Secretary of Housing and Economic Development




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for Massachusetts) comments that Towns should establish reserves for economic times that are not so great. Mr.
  Cole stated that it would be beneficial for the Committee to know exactly how much the Town has in reserves.

  Budget Timeline —Update from Mr. Murcia (see meeting handouts)
  M r. Murgia referred the Committee to the 2-page Fiscal 2020 Budget Timeline and highlighted a few of the
  following key dates:
      • November 13 —Municipal Departments submit capital requests to the Finance Director for fiscal 2020 and
           fiscals 2020 through 2024.
      • School Committee provides capital requests to the Finance Department towards the end of December.
      • Late November budget worksheets will be sent out to departments for fiscal 2020. These worksheets will
           i nclude salary projections based on contracts that have been settled. Contracts for Police and Fire have
           not been settled yet.
      • November 27 and December 11 -Departments explain their capital requests to the Board of Selectmen.
           Finance Committee liaisons to the Capital Planning Committee (CPC) could attend these BOS meetings.
      • In January departments explain their budget requests to the Board of Selectmen.
      • By-law states that the Finance Director is to send capital requests to the CPC by the end of December.
      • January 2 -Municipal departments submit their fiscal operating budgets to the Finance Director's office.
      • January 18 -Finance Director sends to the Finance Committee the Municipal fiscal 2020 operating
           budgets.
     • January 25 —Finance Director sends to the Finance Committee the School fiscal 2020 operating budgets.
     • February 6 —Revenue Forecasting Committee (RfC) meets after the Governor's budget has been
          prepared. Chairman Barker stated that it is usually the goal of the RFC to estimate a conservative revenue
          target number that has a likelihood chance of 90% of being met and not a 50%chance.
     • February 8 —Finance Director send to the Finance Committee the fiscal 2020 revenue voted by RFC.
     • Finance Committee meets soon after February 8 to settle on operating budget targets. The purpose of
          this is to have a balanced budget.
     • February 28 —CPC presents recommended fiscal 2020 capital requests to the Finance Committee.
     • March — BOS and School Committee explain to Finance Committee their budget requests.
     • March 21 or earlier —Finance Committee votes on capital requests.
     • April 4 —Finance Committee votes on fiscal 2020 operating budgets.
     • May 13 —First night of Annual Town Meeting.

M r. Wong inquired as to how the process works with regard to the State Aid recommended by the Governor. The
Governor decides based on the previous year's aid as well as the amount of revenue available. The real state aid
n umbers are unknown until the Legislature has voted on the budget. Ms. Thomas stated that some of the state aid
the Town receives is formula driven and not negotiable.

M r. Murgia stated that there are two main pieces of state aid: Ch. 70 and General Government Aid (GGA). The
state did see a rise in their state aid when a free full-day kindergarten program was implemented because there
were approximately 100 students that were now considered in the formula. He further stated that if the state
revenue is increasing by 3-4% for example the state tries to increase the state aid amount for municipalities by that
percentage amount. If the state expects a 5% increase on tax revenue then Canton could see a 5% increase on
GGA as well.

I n response to Mr. Cole's inquiry if the Finance Director issues guidelines to the departments for their budget
requests, Mr. Murgia stated that typically departments are not provided guidelines. An exception to this was in
2008 when there was an economic downturn. If departments request more than their base budgets they are
i nformed to be prepared to explain their requests to 1) the Town Administrator and the Finance Director, 2) the
BOS and then 3)the Finance Committee. The Finance Committee will receive an adjusted version of the budget.
Setting guidelines for the departments is difficult because the by-laws states that the budgets are due to the
Finance Committee by the third week in January, prior to the RFC setting the revenue estimates.




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Mr. Cole inquired as to why the RFC could not meet earlier in the budget process. Mr. Murgia stated that there is
 a law that requires the sitting Governor to file a budget with the legislature by the end of January.

 M r. Arsondiadis inquired about the estimate of State Aid received and how predictable that amount is and how
 often it varies from the Town's estimated amount. Mr. Murgia replied that the Town does not know how much
 state aid it will receive until late June. At the Town Meeting in May the Town uses an estimated amount for state
 aid. The House of Representatives usually releases a version in April and then the Senate releases a version in
 May. In June the two branches meet in conference to decide on the final state aid numbers. All cities and towns
 have this issue of not knowing the aid early in the budget process causing many communities to hold fall town
 meetings to set their final budget. Mr. Murgia stated that Canton's state aid is approximately 10% of its revenue
 stream which is not a huge portion of the revenue. He further stated that for fiscal 2019 Canton's state aid could
 be slightly less than budgeted because of the final amount of State and County Charges/Assessments. This amount
 combined with GGA could decrease the overall amount that Canton receives for State Aid.

 M r. Wong inquired if real estate taxes was the main revenue the Town receives. Chairman Barker stated that new
 growth also contributes to the Town's revenue. Under Prop. 2%z the entire assessment can increase by 2% %but in
 addition to the 2%% is all of the new building growth within the Town. Excise is also another large contributor to
 the Town's revenue. At the conclusion of Town Meeting the Town must have a balanced budget.

 Operating Results —15` Quarter —Update from Mr. Muria — (see meeting documents) Mr. Murgia reported that
 the revenue was a little low in comparison to the prior year primarily due to permits ($333,880 variance). Last year
 for the first quarter the Town had two significant building permits which the Town did not have in fiscal 2019.

 Liaison list —Chairman Barker has received interest from some members for particular departments. Mr. Murgia
 suggested that a liaison for the Capital Planning Committee should be decided soon to coincide with the capital
 planning process. Chairman Barker asked that this be an agenda item for the next meeting. The purpose of the
 liaison is to obtain information from the department or committee and provide this information back to the
 Finance Committee.

 E.      Approval of Minutes
 A motion made by Mr. McKenna to approve the minutes for October 23, 2018 as written was seconded by
 M r. Wong. Vote: 6-0-2.

F.       Next Meeting Date: The next meeting date was unknown but it would likely take place on December 12
at 6:00 p.m. to discuss any last minute items such as amended motions prior to the STM.

Ms. Thomas suggested that the Committee follow up with the School Committee regarding special education.
Ms. Holcombe stated that she attended an interesting workshop on October 25 regarding the Master Plan
i ncluding but not limited to updating and beautifying the downtown area.

Adjournment: A motion made by Ms. Holcombe to adjourn the meeting at 8:15 p.m. was seconded by
Mr. McKenna. Vote: 8-0-0.

  Minutes reviewed by: Cindy Thomas
'`Respectfully subm tted,

     ~        ~             ~:__
Rob Barker
Chairman, Canton Finance Committee




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Canton Finance Committee Meeting
                                            Thursday, November 8, 2018
                                                Meeting Documents



 Please note: These meeting documents may also be found on the Town's website under the Posted Minutes
 section (Laser Fiche).

 Some of the budget or Annual Town Meeting documents referred to in meetings may be found on the Finance
 Committee page of the Town's website.

 Agenda dated November 8, 2018. (1 page).

 Reserve Fund Transfer Request - $45,000 for Police Station Roof Repairs (1 page).

 Price Estimate from Titan Roofing, Inc., base bid price of $39,100(1 page).

 Summary of Police Upper Roof Repair —provided by Steven Choiniere, Supervisor of Buildings (1 page).

 Drawings of Police Roof —provided by Steven Choiniere (1 page).

 Fiscal 2020 Budget Timeline provided by Jim Murgia, Finance Director (2 pages).

 General Fund's Operating Results as of September 30, 2018 (8 pages).

 Enterprise Funds' Operating Results as of September 30, 2018(2 pages).

Finance Committee Liaison List dated 11/6/18(1 page).




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