Canton, Massachusetts · Saved source text
March 20, 2024, Finance Committee Meeting - Virtual Meeting. Minutes
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Canton Finance Committee Minutes Voted on: 4/3/24 801 Washington Street Vote: 8-0-0 Canton, MA 02021 Meeting Minutes March 20, 2024 Finance Committee Members Present: Dave Clough, Karen Foley, Emilio Mauro, Maureen Menconi, Kristin Mirliani, Reuki Schutt and Cindy Thomas. Finance Committee Members absent: Dan Cole and Tim McKenna. Guests Present: Charlie Doody, Town Administrator Derek Folan, Superintendent, Canton Public Schools Ellen Jones, Recording Secretary Maureen Moran, Chair of the Budget & Finance Subcommittee of the School Committee Randy Scollins, Finance Director Call Meeting to Order: Ms. Thomas called the virtual Zoom Finance Committee meeting to order at 7:00 p.m. Review of the Agenda — Ms. Thomas reviewed the agenda which included a discussion with the Superintendent of Schools regarding the FY25 School Department budget and with the Town Administrator regarding the FY25 Select Board recommended FY25 Municipal Departments budget. Discussion — FY25 School Department Budget — Mr. Folan and Ms. Moran Mr. Folan thanked the Finance Committee for giving him and Ms. Moran the opportunity to share the FY25 School Department budget discussion. Mr. Marshall, Assistant Superintendent of Operations and Finance, was unable to attend the meeting due to illness. e The Schools are expected to develop their budgets in accordance with staff input from staff, principals administration and School Committee guided by strategic plan and core values. Mr. Folan stated that they had completed a five year strategic plan which represents the budget guidelines brought to the Finance Committee. Mr. Folan will send the link that details their Strategic Plan. e Mr. Folan read the School’s Mission Statement as follows: “The mission for the Canton Public Schools is that they are an inclusive, student-centered, learning community that fosters academic growth and resilience and achievement while insuring that every member experiences a sense of belonging, embraces challenge and positively impacts their world. Our vision is an exceptional education that develops innovative thinkers, curious and empowered learners and compassionate citizens. Our strategies are teaching and learning for all, respectful and collaborative relationships, equity and academic excellence, community engagement and high- quality teaching, learning and leading.” e Preliminary Governor's budget was not what most schools expected. e The School budget received a minimum for student increases in Canton. The schools had two very good years in which there was recalibration of Ch. 70 funding which benefitted the School greatly. They are dealing with the final year of the ESSR Grant money. Mr. Folan explained that they used the ESSR money wisely and did not invest deeply in operating or personnel matters. They knew the ESSR grant would sunset after three years. Many schools that invested using these funds are facing dramatic challenges. e The budget for FY25 is basically a “level service” budget and is within the target of a 4.76% increase. e While some communities are facing multiple layoffs and operating budget overrides, Canton is not in this position. However, Mr. Folan commented that they are not in the position of being able to add a lot of positions. e For FY25 the School Department budget will increase by $2,548,055 with a target number of $56,038,598. Mr. Folan was part of the Revenue Forecast discussion. He respects the target number set for the School Department and acknowledges that the schools are thankful for the share of 66.37% that comes from the Town revenue available. The 66.37% share is not seen in many communities. e Contract obligations for FY25 amount to $1,834,790 or a 4.21% increase. They have settled with Unit A, Unit E, three AFSCME unions and all personal service contracts. FINCOM 20240320 Minutes WRS MM FINAL.docx Page 1 of 6 3/24/24
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e Supply & Services requests are non-negotiable costs that represent level service but reflect increases from inflation and various other factors. It includes one of the most volatile costs for Special Education. Included is Professional Development (PD) for $20,000 and $50,000 for the bus contract which is in its third year of the contract, OOD (out of district) tuition of $400,000 and van transportation for $250,000. Ideally, Mr. Folan stated that they are trying to put more into their operating budget for special education so they could rely less on SPED reserves, using the reserves for unique circumstances or extraordinary relief. OOD 4% increase over last year. The increases have not stopped. Other districts have had increases of 18+%. The district has not had an increase in the number of students OOD with a range of 60-65 students for the past few years, but the cost of tuition has increased greatly. Transportation has increased with an allocation of $250,000 for a subtotal of $720,000 for FY25. « Enhancements may not be fulfilled, but the reality is that the School Department has to work with the target number. e A1.0 CHS Special Education ACCESS (All Children Can Expand Skills Set) position K-12 has been added to the budget with an annual salary of $83,837. e Staff Reductions included a 1.0 BCBA (Board Certified Behavior Analyst) position with a reduction of $100,034) (prior to COVID the Schools had 3 BCBAs). After and during COVID the School Department had 4 BCBAs. The idea is to go back to 3 BCBAs and not fill the one position and reallocate the funds towards a Team Chair for the PreK program. To account for the two special education positions (one at CHS and one at the Luce) a non-renewal of commitment to two Bubble Classroom Teachers (1.0 at the Luce and 1.0 at the JFK) with a reduction of $169,375. As the children are aging the School would still be within the guidelines for the number of students in a classrooms. The challenge for the FY25 budget is what could be reallocated for positions. e Ms. Moran spoke in support of having more discussion and to look at other alternatives versus cutting the Bubble Classroom Teachers. More discussion also needs to take place on how the Team Chair position would be structured as part-time or full-time as well as not replacing a BCBA. ¢ The School Committee is scheduled to hold a budget hearing on Thursday, March 21. Ms. Thomas acknowledged that the School Committee has bottom line budget authority and that the Finance Committee is charged with voting the bottom line and that it is not included in the Finance Committee’s scope of work of how to figure out how the School Committee is going to spend that money. Mr. Clough inquired if the BCBA position and the two Bubble Teachers could be considered as special education and potentially added to the Special Education Article. Mr. Folan stated that they could look at different ways of covering these positions either through revolving funds or Special Education routes but that he does not have a definitive answer. Mr. Folan’s response was that they are very fortunate as a town to have the “relief valve” but they are treading very carefully to relying on it as a portion of their operating budget. The desire with some of the original requests from Mr. Marshall and Mr. Folan is to really work in the special education costs into the operating budget and not over rely on reserves. As volatile as the special education costs are, by law the School has to serve all students, whether it is a special education decided through the Team process. Canton is slightly over the state average for OOD with 65-66 students who are educated OOD. Article 18 — Vote — Appropriation to Increase the Special Education Reserve Account - $1,600,000 Mr. Scollins spoke in support of Article 18 and the $1,600,000 amount for this year. Last year the appropriation was $1,000,000 but understanding the challenges in this particular area as indicated by the Superintendent they were in agreement to recommend $1.6 million to this reserve account to ensure that the budget overall for the School Department has a sufficient cushion and “safety valve” should they need it in FY25. If they do not need the $1.6 million in FY25 they certainly will need it in FY26 and the Town has the funds this year. In his opinion this transfer is highly appropriate to fund it at this level. A motion made by Ms. Schutt that $1,600,000 be appropriated to the Special Education Reserve Account (#250) and to meet this appropriation, $1,600,000 be transferred from Free Cash (Undesignated Fund Balance) in the Treasury of the Town was seconded by Ms. Foley. Roll Call Vote: Ms. Schutt Aye Mr. Clough Aye Ms. Mirliani Aye Mr. Mauro Aye Ms. Menconi Aye Ms. Thomas Aye Ms. Foley Aye Vote: 7-0-0. FINCOM 20240320 Minutes WRS MM FINAL.docx Page 2 of 6 3/24/24
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Discussion — FY25 Municipal General Fund Operating Budget — Select Board Mr. Doody reviewed the following regarding the FY25 Municipal Operating Budgets (detailed budget reports may be found as an attachment to these minutes). $27,595,533 FY25 Base Budget (FY24 Budget + FY25 Est’d. Contractual Obligations) $29,097,466 FY25 Total budget Requests $1,501,933 Total incremental Requests ($1,156,730) | Reductions to Requests 345,203 Recommended Incremental Requests $27,595,533 Plus FY24 Base Budget $27,940,736 FY25 Municipal Operating Budget Request (=Fincom Voted Municipal Budget Target) A 4.95% Increase over FY24 Budget, with 3.66% Contractual. Additions to Municipal Staffing: e 1.0 FTE Central Maintenance Trades Position (likely an electrician or HVAC technician) e 1.0 FTE GIS Tech (cost split between General Fund (40%), Water (30%) and Sewer (30%) 2.0 FTE New Additions to Municipa! Staffing = $109.6K (General Fund) The GIS Coordinator’s role has expanded with mapping for multiple departments. Increases to Hours / Position Change: e Position Change: Executive Office -> Executive Assistant promoted to Assistant Town Administrator e 5 hours (35 hours to 40 hours) for Town Clerk e 5 hours (35 hours to 40 hours) for Assistant Town Clerk e¢ 5 hours (35 hours to 40 hours) for Assistant Recreation Director Position Change and 15 hours — New Increases to Hours = $53.9K Mr. Mauro inquired if the expansion of hours would affect the hours that the Town Clerk’s Office is open. The Town Clerk's office hours would remain the same. Of $1,501,933 total incremental requests for municipal departments, $345,203 are the Select Board's recommended incremental requests for FY25. Mr. Mauro and Ms. Foley inquired about the $50,000 reduction/adjustment to the Veteran’s FY25 Budget. Mr. Scollins explained that the Veteran’s budget has been overfunded for the past six years approximately $65,000 per year. This relates to the number of veterans who qualify for benefits. If funds continually are not utilized within a department over several years then the funds are not required. Mr. Scollins further explained that he and the Town Administrator spoke with Mr. Knight, the Veterans Agent, and that the funds would be repurposed for other needs. The Ordinary Benefits budget has been approximately $30,000 underutilized for six years with the Insurance Benefits $36,000 underutilized for the same period. If an eligible veteran was in need of benefits, they would not be denied any benefits and the Town would be reimbursed 75% by the state for the benefits. If there is a deficit at year end in the Veteran’s Budget then a Finance Committee Reserve Fund Transfer would be requested to cover the deficit. If a pattern developed in the Veteran’s budget where it was running in deficit year after year, then a decision would be made to increase the budget going forward. Mr. Clough inquired about the Veteran’s Budget and the American Legion Budget and rather than cut the Veteran's Budget he asked if a cut could be made to the American Legion Budget. Mr. Scollins explained that the $25,000 support for the American Legion budget was not a one-time budget adjustment, but a permanent budget adjustment for the Legion capped at $25,000. He emphasized that if the Veteran's’ Budget were to spike up, no benefits would be denied. If the trend was to continue with the Veteran’s budget being overspent then the budget would be adjusted accordingly going forward. Ms. Thomas inquired about the removal of rental of electronic voting devices from the Town Clerk’s budget. Mr. Doody explained that this is a capital request because it is greater than $5,000. This would be moved to the Town Clerk’s capital plan. Article 31 Accept Saddleback Lane & Horseshoe Lane as Town Ways Mr. Doody explained that the Select Board voted to refer Article 31 to the Planning Board. The Planning Board would be reviewing Article 31 at their April 9" meeting. The Town's Engineer has been asked to review the request. FINCOM 20240320 Minutes WRS MM FINAL.docx Page 3 of 6 3/24/24
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Discussion of Article 30 — By-Law Modernization Study Committee Creation Ms. Thomas stated that there were four things for the Finance Committee to consider with regard to Article 30. 1) Retain By-Law and Governance with the motion because they are intertwined. 2) Extend the timeline. Ms. Thomas and Mr. Mauro met with Mr. Doody and Ms. Kemalian. It was pointed out to them that the timeline was not realistic in connection with the ATM timeline. If approved at Town Meeting, Town Counsel recommended not to include the Governance timeline within the warrant. Move the timeline to May of 2026. 3) Increase in the membership of the Committee based on changes made by Town Counsel who included only three community members. Not only include many town departments and managers who might have useful contributions to the Committee but to also increase at large members so there would be a stronger role for the voters. 4) If the work is extended the $20,000 may not be enough of an appropriation. The only option within the article is to increase the amount by 10% from the original appropriation. Word the motion in a way that would allow the committee to go back to ATM in 2025 if an additional appropriation request is needed Mr. Mauro spoke in support of including the Governance Committee in the motion and making ATM 2026 as the goal for articles. Eighteen months would be needed by the time the Committee meets, develops proposals and hires the consulting firm, and the consultant completes the work would push them past ATM 2025. He suggested leaving the amount at $20,000 as long as the Committee could come back in FY25 to obtain additional funds from reserves. He spoke in support of nine members for the Committee with two added citizens for a total of five citizens. The Zoning By- Laws are more regularly reviewed by the Planning Board. At the time of the Finance Committee meeting the Select Board had not taken a vote on Article 30. Zoning By-Laws would not be included. Sharon has had.a Governance Study done The goal for 2026 - 18 months needed for the RFP. Pass at ATM 2024. Come back in FY25 for additional funds beyond the $20,000 from reserves. Increase membership to nine with five citizens being an appropriate number. One task or multiple tasks over several years. Mr. Clough is concerned with the timeline extending out too long. If the $20,000 is not enough then get a placeholder in the warrant as soon as possible. He has looked at other communities that have by-law software that is searchable using eCode360, an easy-to-use online code portal specifically designed to house codified laws and municipal information in one convenient location. https://www.generalcode.com/online-code/#features Ms. Mirliani asked how the Modernization Study Committee members would be chosen and would they be selected by the Moderator. Ms. Mirliani is fine with the timeline. Mr. Scollins stated that in his prior community the Town Clerk’s office worked closely with the vendor regarding the by-laws. The vendor codifies the by-laws with a software program that is used across the state. This would realign the by-laws to be consistent with other communities. It would be a “living” record. Mr. Scollins has discussed this new by-law process with the Town Clerk and she is very receptive to it, however, they are overwhelmed with four elections this year. Mr. Clough suggested that it would great to have searchable by-laws in place prior to the consultant coming on board and that this would help speed up the process. The initial buy-in would be at least $20,000 plus an annual maintenance fee. A legal consultant would not be brought in. The Finance Committee agreed to come up with a motion and vote the motion at their next meeting on March 27. A committee of nine with adding two more citizens at large for a total of five at large citizens. The Committee would be appointed by the Moderator to convene no later than July 1. Leave the cost at $20,000 with an option of the 10% addition. A preliminary report would be given at the ATM 2025 with the expectation that the work would be done for 2026. Mr. Mauro inquired if the committee (Modernization Committee) created at ATM would be required to give a report at ATM 2025. Mr. Scollins reached out to Town Counsel to see which committees have standing at Town Meeting to give committee reports. Town Counsel's response was there were two committees that have standing at ATM: Economic Development Committee and Canton Alliance Againt Substance Abuse (CAASA). Mr. Scollins also inquired of Town Counsel specifically about Revere and Son Heritage Trust Corporation (RSHTC). Town Counsel stated that the RSHTC does not have standing at Town Meeting. Mr. Scollins also inquired of Town Counsel about the Police Audit Committee to understand whether or not that committee has standing under Article 3. Mr. Scollins stated that the Audit Committee would not have standing at Town Meeting to give a report. FINCOM 20240320 Minutes WRS MM FINAL.docx Page 4 of 6 3/24/24
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With regard to the Modernization Committee Mr. Scollins imagines that because this committee would determine how things are governed and because the committee is established by the Moderator it would seem that it would give a committee report at ATM, but again Mr. Scollins deferred this to Town Counsel. Ms. Thomas stated that it is also not an ongoing committee and that if the Modernization gave a report at ATM it would more of a progress report with the potential adoption of some changes to governance. Ms. Thomas spoke in support of adding to Article 30 that the Modernization Committee would give a progress report and that this would be a way to keep the voters informed. Mr. Clough commented in regards to the Town Moderator appointing the members of the Modernization Committee in that he thought there was in issue with separation of powers at ATM with the appointment of members to the Police Audit Committee. Mr. Clough asked for clairification as to why it would be allowed now (to appoint members to the Modernization Committee) when the Moderator was not allowed to appoint members to the Police Audit Committee. Mr. Scollins stated that this would be a question for Town Counsel. Ms. Thomas stated that given that language is included in Article 30 for the appointment of members by the Moderator, the article was drafted by Town Counsel so it must be acceptable in this case. Ms. Thomas was not ready to respond to Mr. Clough’s inquiry as to why the appointment of committee members was allowed in one instance and not allowed in another instance. Mr. Mauro suggested a title of the committee could be the Governance Modernization Study Committee. Meeting Minutes: A motion made by Ms. Schutt to approve the March 6, 2024 meeting minutes as written was seconded by Mr. Mauro. Roll Call Vote: Ms. Schutt Aye Mr. Clough Aye Ms. Mirliani Abstain Mr. Mauro Aye Ms. Menconi Aye Ms. Thomas Aye Ms. Foley Aye Vote: 6-0-1. The March 13, 2024 meeting minutes were not voted on. The minutes are still being reviewed. Next Meeting Date: The next meeting will take place on March 27, 2024 at 7:00 PM as a Zoom meeting. Mr. Scollins stated that Town Counsel requested motions be sent to him by Friday, March 22, 2024 so he could begin reviewing the motions. Meeting Adjournment: A motion made by Ms. Schutt to adjourn the meeting at approximately 8:31 p.m. was seconded by Mr. Mauro. Roll Call Vote: Ms. Schutt Aye Ms. Thomas Aye Ms. Foley Aye Ms. Menconi Aye Ms. Mirliani Aye Ms. Schutt Aye Mr. Mauro Aye Vote: 7-0-0. Minutes reviewed by: Maureen Menconi Cindy Thomas Chair, Canton Finance Committee and Sub-Committee to Review Compensation of Elected Officials FINCOM 20240320 Minutes WRS MM FINAL.docx Page 5 of 6 3/24/24
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Finance Committee Meeting Documents March 20, 2024 Please note: Some meeting documents may be found on the Town’s website under the Posted Minutes section (Laser Fiche). Agenda — March 20, 2024. Budget documents discussed at the meeting may be found on the Town’s Website under the Finance Committee section. The budget documents are subject to change as the budget process progresses. These documents may also be found at the below links: https://town.canton.ma.us/DocumentCenter/View/10987/FY25-Municipal-Budget---Dept-Requests---Jan-2024---Part- 1-0f-2 https://town.canton.ma.us/DocumentCenter/View/10988/FY25-Municipal-Budget---Dept-Requests---Jan-2024---Part- 2-of-2 Canton Public Schools — FY25 Budget Request, provided by Derek Folan, Superintendent of Canton Public Schools, dated 2/14/24 (2 pages). School Operating Budget Summary & Forecast FY23-FY25 as of 3/1/24 (1 page). Special Education Expense Analysis, FY23-FY25 as of 3/1/24. (1 page). FY25 Balanced Municipal Operating, Fixed Costs and Enterprise Fund Budgets, email with exhibits,11 pages). from Randy Scollins to various Town employees dated 3/20/24 (11 pages). FINCOM 20240320 Minutes WRS MM FINAL.docx Page 6 of 6 3/24/24