Canton, Massachusetts · Saved source text

January 19, 2022, Finance Committee Meeting - Virtual Meeting. Minutes

Finance Committee · Record date 2022-01-19 · Record e92447e8b5263d6726

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

Canton Finance Committee                  Minutes Voted on: 2/2/22
                                             801 Washington Street                   Vote: 7-0-0
                                               Canton, MA 02021


                                                 Meeting Minutes
                                                 January 19, 2022


Finance Committee Members Present: Dave Clough, Dan Cole, Tom Emery, Karen Foley, Emilio Mauro,
Tim McKenna, Reuki Schutt and Cindy Thomas.

Finance Committee Members Absent: All members were present for the meeting.

Guests Present:
Ellen Jones, Finance Committee Recording Secretary
Randy Scollins, Finance Director

Call Meeting to Order: Chair McKenna called the virtual meeting to order at 7:01 p.m.

Discussion – Municipal FY23 Operating Budget Requests – Randy Scollins.

Mr. Scollins stated that he had not yet received the FY23 School Operating Budget Requests and that the School
Committee would be voting on the School Department budgets in two weeks.

Mr. Scollins gave a “high level” review of the FY23 municipal budget requests received to date. The following are
some of the highlights:
        The total FY23 municipal budget request increase of $1,019,056 is a 4.1% increase over the FY23 base
         budget.
        The total FY23 budget request of $26,105,848 is a 6.3% increase over the FY22 voted budget.
        The FY23 staff-related requests include the following:
              o Assistant Town Planner position ($80,000).
              o New Deputy Fire Chief of Operations position ($119,600).
              o Part-time Veterans’ Department Assistant ($21,200).
              o Part-time Young Adult Assistant Library ($32,300).
              o Total new position requests: $253,000.
        The following FY23 requests are for increased hours for existing positions:
              o Town Planner position – Title change from Town Planner to Community Director with an increase in
                  hours from 35 to 40 hours at a cost of $22,500.
              o Increased hours for Revere and Son Heritage Trust Corporation (RSHTC) Contractor
                  Administrative Support $13,300.
              o Elder and Human Services – Social Worker increase in hours from 19.5 to 35 hours at a cost of
                  $25,500.
              o Total increased hours for positions: approximately $60,000.

A Finance Committee member inquired about the difference between the F22 Voted Budget amount and the column
“Change from FY22 Voted Budget” is the contractual costs. These amounts are obligated costs and cannot be
changed. The “Change from FY23 Base Budget requests are up for discussion and would most likely be trimmed.
The contractual obligations are negotiated by the union representatives and are independent of the CPI.

In response to a member’s inquiry about the FY23 revenue estimates, Mr. Scollins stated that it would be a few
weeks before the FY23 new revenue is estimated because the Town is still waiting on the Governor’s budget (which
is scheduled to be released on January 26). The revenue forecast has been started but the missing piece is state
aid.

Mr. Mauro inquired if the Town has been affected by labor shortages. Mr. Scollins stated that he was not versed on
municipal or school positions. He stated that the Recreation Director moved on for personal reasons and the Fire
Department lost a few personnel due to competitive issues related to stipends in parts of the contract.

The Revenue Forecasting Committee meeting would be on February 8 at 10:00. The revenue meeting is not a
posted public meeting.




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FY23 Fixed Costs Budgets

Mr. Scollins discussed the following FY23 fixed costs budget requests:
        The total fixed costs budget of $33,511,893 represents an increase of 4.2% or $1.35 million over the FY22
         budget. An approximately $123,000 increase is due to an increase to the debt service budget.
        Nine projects will be going out to the bond market in six to seven weeks which will add $3.5 million for new
         debt service.
        The Norfolk County Retirement System (NCRS) FY23 budget request of $6,932.851 is a $436,079
         increase from FY22. Mr. Scollins reported that NCRS is on an aggressive path to be fully funded by
         2030/2031. The Town’s assessment is expected to dramatically drop at that time. The Town’s assessment
         by 2029 could be $10 million. If NCRS becomes fully funded the Town’s assessment will dramatically drop
         by at least $5 million. Mr. Scollins recommends that the Town use that savings towards funding Other Post-
         Employment Benefits (OPEB).
        With regard to the District Improvement Finance plan, the mechanism in place is to set aside funds into a
         sinking fund that will go to debt service to buy out the developer including the two buildings and land. The
         Town owes $8.75 million for the project. The Town will put aside $656,000 in FY23 as compared to $96,000
         in FY22.
        Mr. Scollins is recommending an increase of $100,000 for the FY23 OPEB budget for a total FY23 budget
         of $1,150,000.
        Town liability insurance for FY23 is a $93,000 increase from $1,368,849 to $1,460,666.
        With regard to the Trash/Recycling FY23 budget, the recommendation is a level-funded budget. The
         Town Administrator negotiated separate contracts for the Town’s trash (Republic) and recycling (Waste
         Management). For the first 6 months of FY22 the Town has seen a credit balance in the recycling budget.
        With regard to the State Assessments and Norfolk County Tax budgets for FY23, there are four items
         that will change in these budgets once the Governor releases his budget. One of those items in the state
         assessments is for charter schools. The trend is to carry the current budget forward but Mr. Scollins is
         hopeful that the Town will see some relief in this area.
        The recommended FY23 budget for Norfolk County Agricultural School is $50,000 or a $30,000 increase
         from the FY22 budget. The Town received a letter from the school regarding this contemplated 150%
         increase for this supplemental tuition. Mr. Scollins stated that this is an old law with regard to supplemental
         tuition.

FY23 Water, Sewer and Rink Enterprise Budgets

        The Water Enterprise operating budget for FY23 will increase by 10.6% or $840,000 because of new debt
         service projects totaling $8.9 million.
        The Sewer Enterprise operating budget for FY23 will decrease by 1% or $64,000.
        The Rink Enterprise operating budget for FY23 will increase 3.5% which can be attributed to chargebacks
         which are up approximately $13,800. In response to a Finance Committee member’s question about
         serving alcoholic beverages at the rink concession and income from these sales, Mr. Scollins stated that he
         would be surprised if a municipal building would be allowed to serve alcoholic beverages at the rink.

Stormwater Developments - Mr. Scollins reported that a job description for a Stormwater Operations Manager has
been forwarded to the Select Board and the Town is looking to fill this position to have a dedicated manager on board
to help evaluate how best to further develop a stormwater program.

American Rescue Plan Act (ARPA) – Mr. Scollins is waiting for the Select Board’s final decision on how the funds
will be used. The Town’s allocation under ARPA is $2,491,635 with an additional $4,485,127 to be allocated from the
Norfolk County Commissioners for a total of $6,976,762. To date there have been $6,258,287 requests made leaving
$718,475 of available funds not yet requested.

Mr. Scollins explained that there are six different buckets that the ARPA funds can be used for:
    1. Public Health
    2. Negative Economic Imparts
    3. Services to Disproportionately Impact Communities
    4. Premium Pay
    5. Infrastructure
    6. Revenue Replacement

There are restrictions on items 1-5 with less restrictions placed on the revenue replacement category. Mr. Scollins
reviewed a 457-page document which was the final rule regarding ARPA. One of the significant changes made was
the manner in which the lost revenue category was figured – the rule changed from a choice of using a formula-based
rule or electing a cap of $10 million. Most everything could go into the revenue replacement category.



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There is a federal infrastructure bill in addition to ARPA. The Town is waiting for a plan from the state legislature if
there is other funding that Canton could receive without using ARPA funds.

In conclusion the Town will receive approximately $7 million in ARPA funding. To date approximately $80,000 has
been requested by the Board of Health to be used for increased hours from 19 to 35 hours for the Public Health
Nurse (2 years increased wages and related benefits costs) and for Contact Tracing efforts.

FY23 Municipal Capital Requests – Mr. Scollins stated that the total capital requests for FY23 is $3.4 million (both
cash and debt requests) and that there is only $1.7 million of available funds leaving $1.7 million above the amount
available.
        The $270,000 Elm Street Downstream Retaining Wall infrastructure project could use ARPA funds.
        During Mr. Scollins and Mr. Aspinwall’s capital requests review process with Town departments a common
         problem was apparent – price escalations faster than the Town can develop its budgets and supply chain
         issues.
        Mr. Scollins stated that with regard to the Town’s total current debt, 80% of that is scheduled to be paid
         down within 10 years and that the rating agencies have commended the Town’s debt profile.
        Mr. Scollins suggested that FY23 may be the year to “break from tradition” regarding debt allocation.
        In response to Mr. Clough’s question about the capital request projects including electric vehicles, Mr.
         Scollins stated that the Town of Canton has a green vehicle policy and that unfortunately heavy-equipment
         vehicles may not be efficient or available as electric vehicles. Mr. Clough inquired if the Town could include
         20% contingencies in case the projects were to increase in costs. Mr. Scollins stated that contingencies are
         used in construction projects, not in vehicle acquisitions. The Capital Committee will be reviewing all of the
         F23 capital requests.

Cash Reserve Balances – Mr. Scollins reported that the Town’s reserves have accumulated to 20% of FY22 general
fund budgeted expenses. The maximum use of these reserves at the Annual Town Meeting is $5.5 million if the 15%
target for general fund reserves is to be maintained.

Mr. Scollins will suggest a Town Meeting article to establish a Capital Stabilization Fund when the Select Board
reopens the warrant at their next Select Board meeting. He stated that it would be prudent for the Town to start to put
funds away in this account to reduce the impact of a possible debt exclusion project regarding the Galvin Middle
School. The “gold standard” for the Town is to have the core or primary Stabilization Fund at 5% of the operating
budget which is currently close to 10%, therefore, Mr. Scollins stated that he would not be recommending an article at
this year’s Town Meeting to transfer funds into the $10 million core Stabilization Fund.

Master Plan Implementation Committee (MPIC)

Mr. Mauro, the Chair of the Master Plan Implementation Committee (MPIC), presented the following information
regarding the MPIC:
        A 1-page FAQ information sheet – What is the Master Plan, why it is important, what are the MPIC
         responsibilities and who is on the MPIC.
        The MPIC is implementing visions of what the residents might want Canton to be based on a long process
         (2018-2020) that resulted in the current updated Master Plan. The 26-page Master Plan Strategic
         Framework 2020-2025 document contains strategic areas of focus for the next five years drawn from the full
         multi-volume Master Plan. Among these strategic areas are goals for improving life and town services in
         Canton, economic issues, recreation and open space opportunities, connectivity, protecting the town and
         adapting to future changes.
        The target date for completion of the plan is 2035, with interval dates for manageable implementation.
        The MPIC has their own Master Plan website.
        February 2021 was their first meeting.
        Town Planner, Laura Smead, has been instrumental in organizing the Master Plan.
        Three areas of Town that have been identified as special focus areas include Canton Junction, Route 138
         and the Downtown area.
        Because the Master Plan was created before COVID, there might need to be changes in the plan regarding
         such items as transit practices and economic development patterns.
        Mr. Mauro presented a 2-page summary of shared responsibilities between the Finance Committee and the
         Master Plan. Some of the responsibilities include the following:
             o Housing & Neighborhoods – consider funding for the housing trust, zoning bylaw amendments and
                  infrastructure at the Paul Revere Heritage site.
             o Public Health and Social Well-being – consider additional staffing as needed, funding ADA
                  improvements, look for opportunities to add space to the Senior Center and funding for
                  pedestrian//cyclist infrastructure.
             o Town Services – consider funding or matching funds for grants, funding for software, technology
                  opportunities and energy-efficient equipment.


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o    Municipal/Town Buildings – address universal design and ADA concerns and adding space to
                  Senior Center.
             o    Economic Development – support staffing, offer economic incentives to encourage growth, support
                  expansion of marketing efforts.
             o    Recreation – funding for trails, Pequitside improvements, ADA improvements, and Earl Newhouse
                  Waterfront improvements.
             o    Transportation – implement Complete Street Prioritization, improve traffic flow and safety in certain
                  areas, fund traffic calming measures, funding public charging stations, walking amenities, biking
                  infrastructure, downtown infrastructure, purchasing electric or energy efficient vehicles, and shared
                  parking arrangements for Canton Center
             o    Protect – opportunities to acquire, rehabilitate historic resources, placemaking, green infrastructure
                  to meet stormwater goals and continue to maintain and upgrade municipal water supply
                  infrastructure and capacity.

Mr. Mauro is hoping to provide an MPIC report to the Annual Town Meeting possibly under Article 3 (Hear Reports of
Committees). He also added that he hoped that the Master Plan recommendations will routinely be considered
throughout upcoming budget cycles when decisions are being made.

Mr. Clough has noticed that surrounding Towns have articles on their warrants for establishing District Improvement
Financing (DIF) areas in their Towns. Mr. Scollins stated that there would not be a DIF article at this year’s Town
Meeting but it does have to be approved at a Town Meeting. Mr. Mauro noted that the Town Planner is seeking a
MassDevelopment technical assistance grant for the development of a Route 138 DIF district and that some
upcoming zoning articles regarding the corridor will help improve the Town’s chances of being awarded the grant in a
future state grant cycle, perhaps as early as next year. In addition to the Planning Department, the Select Board and
Economic Development Committee would have to be among those involved in the process.

Chair McKenna agreed that for the Master Plan to work it would have to have a framework in mind as articles and
capital requests are considered and debated. Chair McKenna does not have an answer for Mr. Mauro regarding a
report of the MPIC being presented under Article 3 but he would reach out to Town Counsel and the Moderator.

Mr. Scollins stated that the Fire Chief has mentioned the idea of a third fire station and Mr. Mauro confirmed that
exploring a third fire station was within the objectives of the Master Plan.

Liaison List: Chair McKenna inquired if there were any members interested in serving as the alternate liaison to the
Capital Planning Committee (CPC). Mr. Mauro is the primary liaison to the CPC. Ms. Schutt had to refrain from
being the alternate liaison because she has a relative serving on the Capital Planning Committee as well as a relative
on the Board of Health. Mr. Cole volunteered to serve as the alternate liaison to CPC. Mr. McKenna volunteered to
serve as the liaison to the Board of Health.

Mr. Clough asked if there was any update with regard to the St. Gerard’s acquisition. Mr. Scollins stated that the
parties are still negotiating and at that time that was all he could share for information.

Approval of Minutes: There were eight sets of minutes submitted for approval. Of the eight sets of minutes, five
were for Executive Session minutes related to the St. Gerard’s real estate acquisition. Mr. Scollins was advised by
Town Counsel that the Finance Committee could vote to approve the Executive Session minutes but should not
release the minutes until the St. Gerard’s acquisition has been completed.

Next Meeting Date: The Finance Committee will be meeting on Wednesday, January 26, 2022. Mr. Scollins stated
that he would be presenting all of the budgets that are prepared by him. He further explained that over the next two
weeks he and the Town Administrator, Charlie Aspinwall, would be meeting and reviewing budgets with department
managers.

The Revenue Forecasting Committee would be meeting on February 8, 2022 at 10:00 a.m. to discuss and vote on
revenue estimates for FY23. The Recording Secretary will send meeting invites to participants.

The Annual Town Meeting would take place on May 9, 2022 at 7:00 p.m. at the Canton High School. Mr. Scollins
was recently notified by Town Counsel that there would not be an Annual Town Meeting warrant article with regard to
Shephard’s Pond for weed control nuisance. This request would be submitted as part of the Conservation
Commission budget under a maintenance line item.




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A motion made by Ms. Schutt to adjourn the meeting at 8:43 p.m. was seconded by Mr. Clough.

Roll Call Vote:
Mr. Clough      Aye             Mr. Mauro      Aye
Mr. Cole        Aye             Ms. Schutt     Aye
Mr. Emery       Aye             Ms. Thomas     Aye
Ms. Foley       Aye             Mr. McKenna    Aye
The motion to move into Executive Session passed 8-0-0.

Minutes reviewed by: Tom Emery

Respectfully submitted,




Timothy McKenna
Chair, Canton Finance Committee




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Canton Finance Committee Meeting
                                               Meeting Documents
                                                 January 19, 2022


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

Agenda for January 19, 2022 (1 page).

FY23 Municipal Operating Budgets (1/3/22 requests), dated 1/11/22. (2 pages).

Fixed Costs and State and County Assessments dated 1/11/22 (1 page).

Water, Sewer and Rink Enterprise Fund Operating Budgets dated 1/11/22 (1 page).

Cash Reserve Balances dated 1/14/22 (1 page).

Municipal Capital Requests for Fiscal 2023 dated 1/14/22 (1 page).
Capital Capacity Planned Use (1 page).

Canton Master Plan Implementation Committee FAQ (1 page).

Finance Committee and Master Plan Share Priorities (2 pages).

Canton Master Plan 2035 – Strategic Framework 2020-2025, dated May 6, 2021 (26 pages).




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