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January 13, 2016, Finance Committee Meeting. Minutes
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Town of Canton Finance Committee Minutes Voted on: 2/4/16
Meeting Minutes vote: s-o-o
Wednesday, January 13, 2016
Members Present:
Rob Barker, Sepp Bergschneider, Jim Casamento, Gerald Dorfman, Nichola Gallagher, Dianne
Gustafson, Stephanie Leach, Tim McKenna, Barbara Saint Andre and Jim Sims.
Members Absent:
All members were present.
Guests Present:
Bob Golledge, Chair, School Committee
Jen Henderson, Interim Superintendent of Schools
Barry Nectow, School Business Administrator
Reuki Schutt, School Committee Member
Jim Murgia, Finance Director
Ellen Jones, Finance Committee Secretary
Opening: A meeting of the Canton Finance Committee was called to order by Chair Saint Andre at
7:00 p.m. on Wednesday, January 13, 2016 in the Salah Meeting Room of Town Hall.
A. Approval of Agenda
Chair Saint Andre reviewed the items on the agenda which included a discussion with the School
Committee regarding free full day kindergarten.
B. Announcements
Chair Saint Andre congratulated Blue Hills Regional Technical High School on their 50t"anniversary.
C. New Business
Discussion with school Committee Rec~ardinq Free Full Dav Kindergarten
M r. Golledge gave an overview of the free full day kindergarten program being proposed by the School
Committee. The discussion included some of the following items:
o Canton is in the minority as compared to 78% of municipalities in the Commonwealth now offering
free full day kindergarten.
o The School Committee did not support the program last year because of the timing of the citizen-
proposed article and the School Committee's other priorities for FY16. (The Hansen Elementary
School addition had been proposed at the 2015 Annual Town Meeting.)
The School Committee looked at phasing in free full day Kindergarten with a gradual decrease in
tuition costs over times. (Canton would not be eligible for Ch. 70 aid if phased in over time.)
o The School Committee would be requesting cone-time increase of $686,000 to their FY17 operating
budget through a warrant article at the 2016 ATM. This would be for one year only. Jim Sims and Jim
M urgia have been instrumental in helping out the School Committee with the financial implications.
o The School Committee is anticipating an increase of approximately $600,000 in Ch. 70 aid for FY18
in the second year of implementing the program. (Preliminary Ch. 70 figures for the following year
are typically released in the fourth week in January.)
o The School Committee also discussed the need for an additional school bus that would transport
students from the Luce and/or JFK to the Hansen. Mr. Golledge stated that the School Building Use
Committee has been studying options to relieve crowding at the Luce and Kennedy schools. One
option would be to move the fifth and eighth grades to other buildings.
Mr. Nectow reviewed for the Finance Committee an economic analysis of implementing free full day
kindergarten which included three options (see meeting handout). Option 1 eliminates tuition for
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kindergarten while requiring one additional bus for transportation. Option 2 also eliminates tuition for
kindergarten but also includes installation of modular at JFK, eliminating the need for transporting
students to the Hansen. Option 3 phases in free full day kindergarten over 3 years by reducing the cost
of tuition to $0.00 over athree-year period.
Mr. Nectow contacted Richard Hatch at the DESE (Department of Elementary and Secondary
Education) to "run the numbers" with regard to Ch. 70 aid. Mr. Hatch estimates a $797,369 increase
to Ch. 70 funds. Mr. Murgia's estimated increase to Ch. 70 funds is $711,599 or approximately
$80,000 less than Mr. Hatch's.
Because the Town will be able to review Governor's House 1 budget in February 2017, this will give
the Town adequate time prior to ATM17 and FY18 to address if Ch. 70 funds are lower than budgeted
for.
Mr. Murgia reviewed the financial calculations:
o If free full day kindergarten had been implemented in FY15 the increase to the School Department
budget would have been approximately $600,000.
o Ch. 70 to Canton could decrease if the state's finances decreased. Typically the Governor's budget
has been the "floor" amount with regard to aid. Currently state tax collections have been better than
predicted.
The School Committee stated that they would look for cuts to programs in their budget if Ch. 70
funding came in lower than expected.
o The revolving fund for kindergarten tuition of $490,000 would be reduced to zero. Under the School
Committee's Option 1, in addition to an additional bus, two classroom teachers at a total cost of
$145,000 and two educational assistants at a total cost of $57,306 would be added to the school
operating budget.
Mr. Nectow confirmed for Mr. Casamento that the balance in the Kindergarten Tuition revolving fund
is forecast to be approximately $125,000 to $150,000 at the end of FY16. Any remaining balance in
this fund will be used to offset the amount requested from Free Cash at Town Meeting to pay for Full
Day Kindergarten in FY17.
Discussion Regarding the school Commiftee's proposed ATilll Arficle —Office ~uildinq
Mr. Golledge explained the following:
o Last year there had been discussion between the Board of Selectmen and the School Committee to
move the School Administration offices to either the Rolling Mill or Barn at the Revere Historic site.
As part of a mitigation package, the developers for the Plymouth Rubber site committed $2 million to
the School Committee. This $2 million could be used for renovations at the Rodman Building.
o Since last year's ATM other uses have been identified by the BOS for the Mill and the Barn.
o The BOS are in the process of identifying other land/parcel to construct a new School Administration
building.
o As discussions evolve, the School Committee submitted a warrant article for funding construction of
an office building as a placeholder for the warrant.
o The School Committee would like the use of the Rolling Mill for administration space and the use of
the $2 million for the Rodman Building.
FY'~~ school Depa~rnent ~udc~et
The School Committee is scheduled to vote on the budget on January 21. They are in the process of
prioritizing budget requests which currently represents a 3.16% contract costs increase to their
operating budget.
M r. Casamento made reference to an excess of office space available for leasing in Canton as a
possible option for Administration Offices. Mr. Golledge's response was that it would mean an
increase to the School operating budget to cover leasing costs.
Ms, Gustafson spoke about concerns with the $2 million mitigation funds from the Developer with
regard to the assumptions and the adequacy that this amount would be sufficient to cover renovations
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to the Rodman Building based on an architects assumptions 16 years ago, Also the $2 million is
based on getting an advance on future tax revenues.
Public Comments
Mr. Steve MacPherson, a resident who has been leading a group of residents who support free full day
kindergarten, spoke in support of the program.
Mr. Tony Braconi spoke in support of the program and thanked Mr. Murgia for his Ch. 70 financial
analysis.
FY'i7 fU~unicipal Depar~rnents' ~udget Requests - (see meeting handout) Mr. Murgia provided a
summary of budget requests submitted by Department heads.
The FY16 voted budget is $18.1 million.
The FY17 base budget is $18.4 million. FY17 base budget was level funded except for personnel
costs, COLAs and step increases which amount to $305,000.
The FY17 department budget requests total $19.4 million. FY17 Department increases or "wish lists"
total more than $948,000.
o The Fire Department has requested $493,000 in total requests which include $250,000 for an annual
regional dispatch fee, $44,000 for promoting four firefighters to lieutenants as well as $47,000 for
hiring an additional firefighter.
o The Police Department is requesting an increase of $140,475. This total includes a $75,000 for an
additional Sergeant's salary.
o The Department of Public Works is seeking a $70,621 budget increase for two new positions — a GIS
analyst funded 50% out the DPW budget and a Business Manager to be funded 40% out of the DPW
budget. The remainder of these two salaries will be funded out of the Water and Sewer Enterprise
Funds.
M r. Murgia stated that Chief Doody will be seeking support from the BOS for an ambulance rate
increase. This increase could generate $275,000 per year of additional revenue to the ambulance
fund.
Ms. Saint Andre asked for liaisons to contact Department heads to discuss their budget requests. A
schedule will be set up soon to meet with Department heads including DPW, the Fire Department, Police
Department and Parks &Recreation.
FY1~ Fixed Goss' ~udget Requests — (see meeting handout) Mr. Casamento inquired if the Fixed
Costs budgets included assumptions to account for any increases in head counts. Mr. Murgia stated that
he has budgeted fora 5% increase to health insurance rates and a 2% increase to Medex rates. These
budgets are based on headcounts from one year ago.
FY17 Enterprise Finds' ~udget Reques$s — (see meeting handout) Mr. Murgia stated that the Water
and Sewer budgets would likely increase for FY17 once updated MWRA information becomes available
in February. The Rink Enterprise Fund is being budgeted for debt service and a few minor expenses.
FY'~7 Municipal De~a~rne~~s' Capi~~l Requests — (see meeting handout) Mr. Murgia provided an
overview of the FY17 municipal departments capital requests. There is $600,000 available for municipal
cash capital requests and $700,000 available for municipal debt requests. Some of the requests include
the following items:
o Council on Aging has requested $142,000 (cash) for parking lot repairs.
DPW has requested $220,000 (debt) for Elm Street culvert replacement and $110,000 (debt) for
Bailey Street drainage.
Other sources for funding the Conservation/Pequitside Parking lot redesign capital request includes
$65,000 from the previously authorized $4.2 million of ADA funds.
o Parks &Recreation Director, Janet Maguire, has requested $75,000 for Tilden Playground Equipment
replacement. Ms. Maguire had tried to submit this as a CCPC request but because of deadline
restrictions this may have to be delayed until next year for application to the Community Preservation
Committee.
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The Executive Office had put in a request for $21,000 for Town Hall Roof Repairs, but because of the
urgency for these repairs they may have to be funded through another source.
o The Fire Department requested $284,000 (cash) for replacement of 2010 ambulance. This item may
be funded through borrowing.
The Fire Department also requested $90,000 for regional dispatch communication equipment, but it is
likely that a grant will be available to fund this request.
D. Other ~usine~s/Open Issues
Liaison ~epo~ —Veterans' Agent — Mr. Casamento gave a liaison report regarding the Veterans' Agent.
Mr. Casamento reported that the State reimburses the Town 75% of all benefits paid on the "Ordinary
Benefits" and "Insurance Coverage" line items in the budget. This reimbursement is received from the
State one year later and is considered general fund revenue.
E. Approval of Illiinutes
The minutes for the meeting of November 19, 2015 were not approved at the meeting. They would be
placed on the next meeting agenda.
F. Next Mieeting D~~e: The next Finance Committee meeting would be held on Monday, January
25, 2016 with the Canton Community Preservation Committee.
Adjournment: A rmotion made by fi1i~. Saint Andre to adjourn the rnee~ing at ~:~0 p.rn. was
seconded by IVIs. Gustafson. Vote: 10-0-0.
Minutes reviewed by: Sepp Bergschneider
Rem-ectfully submitted,
i~
~~~
Bar ~~~ ra~Saint Andre
Chaih, Canton Finance Committee
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1"own of Canton
Finance Committee Meeting —Wednesday, January 13, 2016
List of Meeting Handouts
Please note: These meefing handouts may also be found on the Town's website under the Posted
Minutes section (Laser Fiche).
Agenda (1 page).
ATM Proposed Article —Free Full Day Kindergarten (1 page).
Memorandum from Barry Nectow to Jen Henderson regarding Implementation of Free Full Day
Kindergarten (4 pages).
Fiscal 2016 Chapter 70 Calculations for Free Full Day Kindergarten (2 pages).
FY16 DESE Foundation Budget Information (4 pages).
FY16 Chapter 70 Foundation Budget(4 pages).
ATM Proposed Article —Canton School Department Office Building Construction (1 page).
FY17 Municipal Departments' Operating Requests, dated 1/11/16 (2 pages).
FY17 Fixed Costs and State and County Charges, dated 1/8/16 (1 page).
Enterprise Funds' Operating Budgets, dated 1/11/16 (1 page).
Email from James Murgia, Finance Director, to Gene Manning, Chair, Capital Planning Committee
regarding FY Municipal Capital requests, dated 12/30/15(4 pages).
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