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March 03, 2015, Finance Committee Meeting. Minutes
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Town of Canton Finance Committee Minutes Voted on: 3/9/15
Meeting Minutes Vote: 8-0-0
Tuesday, March 3, 2015
Members Present:
Rob Barker, Sepp Bergschneider, Jim Casamento, Jerry Dorfman, Nichola Gallagher, Dianne Gustafson,
Stephanie Leach, Tim McKenna, Mark Porter and Barbara Saint Andre.
Members Absent:
Jim Sims and Diane Wolff.
Guests Present:
Jim Fitzpatrick, Council on Aging
Mark Lague, Library Director
Janet Maguire, Parks & Recreation Director
Nick Pirelli, Parks & Recreation Assistant Director
Diane Tynan, Council on Aging Director
Karen Zukauskas, Assessing Director
Jim Murgia, Finance Director
Ellen Jones, Finance Committee Secretary
Opening:
A meeting of the Canton Finance Committee was called to order at 7:03 p.m. on Tuesday, March 3, 2015
in the Upper Meeting Room of the William J. Armando Recreation Center.
A. Approval of Agenda
Chairman Porter reviewed the items on the agenda.
B. Announcements
There were no announcements made.
C. New Business
Library - FY16 Budget Requests — Mark Lague, Library Director — Mr. Lague reviewed for the newer
members of the Finance Committee the minimum standards that the Library needs to meet (such as
hours of operation, dollars of budget being used) in order for the Library to receive funding from the State.
Mr. Lague is requesting the following items for FY16:
• $12,000 for two non-union, non-benefit library pages at 10 hours per week at approximately
$12.03 per hour.
• $12,000 increase to the electricity budget line item to cover rate increases.
• $13,000 for print, digital & audio-visual materials to allow the Library to maintain full compliance.
Mr. Murgia explained to the Committee that from the original $9 million debt exclusion for the Library
there is $27,000 of unspent funds remaining that could be transferred to the Library's $36,000 of cash
capital balance. Buildings Renovation Committee Chair, Bob McCarthy, is aware of the remaining funds
and would be in support of this transfer. The $27,000 would be used to extend one of the interior walls on
the Sherman Street side for dividing the computer lab into two separate spaces.
Assessors — FY16 Budget Requests — Karen Zukauskas, Assessing Director — Ms. Zuakauskas is
requesting the following items for FY16:
• $5,000 for a 20-year step for the Director's Personnel Board position.
• $2,000 for an upgrade to the Assessing Technician's position.
• $2,000 for the CAMA software license through Paul Kapinos.
Ms. Gustafson inquired as to which contracts included a clause for a 20-year step. Ms. Zukauskas stated
that there was currently no existing contract for the Personnel Board employees but that a 20-year step
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clause was in the Police and Fire contracts as well as in some personal contracts such as the contracts
for the Town Administrator, the Finance Director and the Police Chief.
At 7:31 p.m. this concluded the discussion of the Assessing Department's FY16 budget requests.
Council on Aging (COA) — FY16 Budget Requests — Diane Tynan, Council on Aging Director Mr. —
Jim Fitzpatrick joined Diane Tynan for the discussion of the Council on Aging's FY16 budget requests.
Ms. Tynan was requesting the following FY16 budget increases:
• $12,000 increase to the utilities budget line item. Ms. Tyan based this budget increase request
after having contacted Westwood's Council on Aging and Stoughton's Council on Aging for their
utility costs.
• $20,000 custodial services. (see meeting handout) Ms. Tynan provided a three page handout of
information with regard to the costs for services of UNIC Pro., Inc. After having had a
conversation with the School Business Administrator, Barry Nectow, Mr. Murgia suggested the
use of a Luce custodian for custodial services for the new Senior Center and the Armando
Recreation Center. Essentially there are four options with regard to custodial services: 1) hire a
private company 2) hire a new town employee with benefits costs 3) utilize an existing school
custodian or 4) utilize an existing Property Maintenance custodian. Mr. Murgia commented that
he thought 25 hours per week was too high. Ms. Tynan stated that the Council on Aging is in
favor of an outside custodial company.
• $37,000 Program Coordinator (new position) — (see meeting handout) Ms. Tyan provided a three-
page handout with detailed information regarding the overview of the Council on Aging, the duties
for the new Program Coordinator, staffing comparisons with area Council on Agings and the
number of units (participants) served 60 & older and under the age of 60 by year starting in 2007
(15,268) through 2014 (31,014). The significant increase in the number of under 60 being served
by the Council on Aging was due to a large population requiring fuel assistance. Mr. Dorfman
inquired if the COA received any outside grants. Ms. Tynan stated that the COA does receive a
$34,000 grant from the Executive Office of Elder Affairs as well as private donations.
Capital Request — Replacement of a COA Bus (see meeting handout) Ms. Tynan stated that she was
—
requesting the replacement of the present bus that has over 120,000 miles on it with no working
handicapped lift. She provided information on a new Starcraft Bus. The Capital Planning Committee
recommends replacement of vehicles every five years, which the COA has not been following. The COA
provides greater than 7,000 trips per year with approximately 319 trips for participants under the age of
60.
Council on Aging — Revolving Fund The present COA's revolving fund is used primarily for donations
—
received for transportation. Mr. Murgia spoke in favor of changing the purpose of the COA revolving fund
to include donations for purposes other than transportation as well as program fees. This would eliminate
the administrative workload of having the Board of Selectmen vote to accept private donations at a public
meeting. Under c. 44, section 53A donations can be spent without appropriation. At Ms. Gustafson's
suggestion, the revolving fund needs to have specific purposes identified. The present limit of the fund is
$25,000. Mr. Murgia suggested changing the spending limit to $50,000.
At approximately 8:20 p.m. this concluded the discussion on Council on Aging.
Rink Roof Collapse Update Ms. Maguire gave a brief status update as to the recent Metropolis rink
—
roof collapse. Since it had been only two business days since the collapse, Ms. Maguire stated that it
was premature to speculate as to how the Town would be proceeding with the loss of the rink. Ms.
Maguire stated that the Town is working with DCR (the Department of Conservation & Recreation) and
the Town's insurance company. Ms. Maguire also stated that she had a preliminary conversation with Mr.
Murgia, the Finance Director, to discuss the $30,000 to $35,000 of rink salaries and expenses remaining
for the month of March, the likelihood of a FY15 revenue shortfall for the Rink Enterprise Fund, the
possibility of a Reserve Fund transfer being needed at the end of FY15 and the possibility of the rink
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employees' salaries being charged to the Recreation Department budget instead of the Rink Enterprise
Fund for the remainder of the fiscal year.
Mr. Dorfman inquired if the Town's insurance policy for the rink would cover "business interruption".
Because it was still so soon after the collapse, Ms. Maguire did not have an answer for this inquiry.
The biggest effect to the FY16 budget would be the lack of the usual $85,000 to $90,000 transfer from the
Rink Enterprise Fund to the General Fund.
Parks & Recreation — FY16 Budget Requests — Janet Maguire, Parks & Recreation Director Ms. —
Maguire and Mr. Pirelli, the Assistant Recreation Director, explained the FY16 budget requests for the
Parks & Recreation Department as follows:
• $7,000 summer help. Because recycle bins will be placed at all ball fields, Ms. Maguire is
requesting a new position for the upkeep and maintenance of these bins.
• $5,000 electricity expenses for increase in rates.
• $15,000 custodial services. Ms. Maguire is requesting in conjunction with the COA $15,000 for
purchase of services for an outside custodial company UNIC Pro., Inc. Mr. Pirelli stated that he
worked with COA and spoke in favor of UNIC Pro. This company would provide after hours
services to Parks & Recreation by cleaning both the Armando Recreation Center and the Gridley
School.
Parks & Recreation Capital Requests — Ballfield Groomer and Irrigation & Sod Project for Tilden
Field Ms. Maguire stated that the ballfield groomer would be used to groom 12 fields that the Parks &
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Recreation are responsible for. The current groomer is outdated and in need of replacement. The
irrigation and sod project for the Tilden Field is being requested to remedy a clay/dirt infield that has
become a safety hazard issue with dust.
Mr. Murgia stated that he has been in contact with the Town's financial advisor to state that due to the
rink roof collapse the Town would no longer include $245,000 for rink equipment in its upcoming
borrowing. There would be no need for a $4,000 interest payment for debt service as well.
Special Revenue Fund #130 — Parks & Recreation The current special revenue fund is set up under
—
c. 44 sec. 53D. Mr. Murgia explained that the auditors have found that the current fund is limited to
$10,000. Any excess goes into the General Fund. Mr. Murgia suggested that in lieu of c. 44 sec. 53D
that a revolving fund be established under c. 44 sec. 53E% under Article 11. By setting the fund up in this
manner it would allow the fund balance to grow and to carry over from year to year.
Ms. Gustafson stated that the Committee and the Department should be prepared to explain to Town
Meeting how this fund will be tracked and accounted for. Ms. Maguire is working on the ability in MUNIS
to track this and Ms Butters, the Town Accountant, is working with Mr. Jutras of MIS, on developing this
process.
Revenue Forecasting Committee — Results of February 20, 2015 Meeting Mr. Murgia gave a brief
—
overview of the Revenue Forecasting Committee meeting that took place on February 20. Voting
members that attended the meeting other than Mr. Murgia included Kathy Butters (Town Accountant), Bill
Friel (Town Administrator), Jeff Granatino (School Superintendent), Barry Nectow (School Business
Administrator), Mark Porter and Karen Zukauskas (Assessing Director). The Revenue Committee voted
to increase motor vehicle excise revenue for FY16 by $150,000, increase permits revenue for FY16 by
$100,000 and decreased by $100,000 the FY 16 budget for OPEB (other post employment benefits) from
$750,000 to $650,000. Overall, the estimated revenue and expenditures for FY16 is $82.1 million which
is a 4.6% increase as compared to a 3.6% budget increase for FY15.
Because the Governor's budget has not been released yet, the Revenue Forecasting Committee plans to
meet again to review revenue. Ms. Leach inquired as to why the Revenue Committee decided to lower
the OPEB budget. Chairman Porter responded that the reason was to increase more on the operating
side of the budget.
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Mr. Casamento spoke in favor of increasing the $650,000 FY16 budget for OPEB. Mr. Murgia stated that
an actuarial study is currently being done.
AAA Bond Rating — S&P Bond Rating Report for March 2015 Borrowing — (see meeting handout)
Mr. Murgia was pleased to report to the Committee that S&P had affirmed the Town's long term debt and
new debt as AAA. Some of the reasons for this AAA rating include a high per capita income, low
unemployment rate, the 5% growth of assessed values for residential homes, the strong commercial tax
base and the 10 leading taxpayers account for about 7% of assessed value. The Town's healthy
reserves of $10.7 million or 12.4% of budget helped contribute to the excellent bond rating as well. The
rating agency did express concern with the unfunded pension and OPEB liabilities. S&P also attributed
Canton as having strong financial management.
Chairman Porter was called out of the meeting and did not return. Vice Chairman Saint Andre chaired
the remainder of the meeting.
D. Old Business/Open Issues
Liaison Reports — Capital Planning Committee (CPC) — Ms. Gustafson and Mr. Dorfman, the Finance
Committee liaisons to the CPC, reported to the Committee that they had attended the recent CPC
meeting in which the School Committee presented their capital requests for FY16. The Hansen addition
would be presented at Annual Town Meeting. The CPC asked for more detailed information on some of
the School Committee's capital requests.
CPC would be attending the Finance Committee's meeting on March 16th and the School Committee
would be attending the Finance Committee's meeting on March 19th,
E. Approval of Minutes
A motion made by Sepp Bergschneider to approve the February 12, 2015 meeting minutes as
written was seconded by Rob Barker. Vote: 8-0-1.
A motion made by Sepp Bergschneider to approve the February 19, 2015 meeting minutes as
written was seconded by Nichola Gallagher. Vote: 7-0-2.
A motion made by Sepp Bergschneider to approve the February 23, 2015 meeting minutes as
written was seconded by Nichola Gallagher. Vote: 7-0-2.
F. Next Meeting Date: The next meeting would be held on March 9, 2015 at 7:00 p.m. in the Salah
Meeting Room of Town Hall.
Adjournment: A motion made by Sepp Bergschneider to adjourn the meeting at 9:36 p.m. was
seconded by Jim Casamento. Vote: 9-0-0.
Minutes reviewed by: Jerry Dorfman
Respectfully s Awed,
„
anton Finance Committee
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Town of Canton
Finance Committee Meeting — March 3, 2015
List of Meeting Handouts
Agenda (1 page).
Council on Aging — Description of Cleaning Services — UNIC PRO, INC., dated 1/5/15, provided by Diane
Tynan, Council on Aging Director (3 pages).
Overview of Council on Aging, Program Coordinator duties listing, Staffing Comparison to surrounding
Towns, Population Served by Canton's Council on Aging, undated, provided by Diane Tynan, Council on
Aging Director (4 pages).
Pictures of current COA transport van, Picture of proposed Starcraft transport van, provided by Diane
Tynan, Council on Aging Director (4 pages).
Revenue and Expenditures update based on Revenue Forecasting Committee meeting held on
February 20, 2015, dated February 20, 2015, provided by Jim Murgia, Finance Director (8 pages).
Standard & Poor's (S&P) Ratings Services, AAA Bond Rating Report, dated February 27, 2015 (6 pages).
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