Budget and Finance Subcommittee

RECEIVED By City Clerk at 1:50 pm, 8/16/21 AMESBURY CITY HALL 62 Friend Street Amesbury, MA 01913 City Council Finance Committee Meeting Minutes Tuesday, June 1, 2020 at 7:15 PM or Immediately Following Special City Council Meeting Virtual Meeting Finance Committee Chair Stanganelli called the meeting to order at 7:48 PM. Roll Call was taken and present were: Councilor Mandeville, Councilor Rinaldi, Councilor Stanganelli, Councilor Wheeler, Councilor Gilday, Councilor Hogg, and Councilor Einson, Councilor Lennon and Councilor Kisieleski. Minutes for Approval: April 27, 2021 Councilor Wheeler motioned to approve the April 27, 2021 minutes pending correction noted. Councilor Einson seconded this motion. Roll call was taken, 8 out of 9 members voted yes, one abstention (Gilday). Motion passed. Communications & Updates:  Chief Financial Officer, Angel Wills gave her monthly report. o She referred to the updated expensive report by saying the City is trending on target and the appropriation transfers needed to finish out the year have been submitted. o The City has met its revenue target. o The free cash certification last year was $267,788.00. As of this meeting the balance is $207,788.00.  Councilor Stanganelli asked where the city stood with regards to the fee study. o Chief of Staff, Paul Fahey, replied by saying the fee schedule is nearing completion. It will not be ready before FY22, more likely it will be reviewed in the early part of FY22. o Paul Fahey said that what the Collins Center is doing a two-step process. The first part which is just wrapping up is an evaluation of fees in comparable cities and towns. The second part is to do a deeper dive into a series of fees that are mutually agreed upon.  Councilor Stanganelli asked about the cannabis impact fees. o Paul Fahey responded that there are discussions on how to utilize the impact fees for the community. Public Comment:  Jane Snow submitted an email letter as public comment. This email letter has been included in these minutes below1.  Councilor Gilday stated that herself, Jane Snow, Councilor Hogg and Councilor Rinaldi have corresponded via email. She said that Angel Wills had replied to many of Jane’s detailed questions. She would like those emails included in the record2. o The email correspondence have been included in the minutes below. 1 2021-074  Department of Public Works Director, Robert Desmarais spoke on this order. o He referred to page 76 of the FY22 budget book.  Councilor Wheeler asked if the two projects would go to bid. o Robert Desmarais said the roof will go out to bid, but the $75,000.00 is a proprietary component of the centrifuge.  Councilor Stanganelli directed a question to Angel Wills asking, are there any special guidelines as to what the retained earnings level should be in the enterprise account? o Councilor Wheeler used point of information.  He read from page 149 under “Retained Earnings” in FY22 budget book: “For each enterprise fund, the City will maintain an unreserved retained earnings balance of 10 percent of the enterprise fund's total annual budget, at minimum, with the objective of 20 percent, but any reserve may be significantly higher if major infrastructure improvements are necessary.” Councilor Lennon motioned to send order 2021-074 back to City Council with a positive recommendation. Councilor Wheeler seconded this motion. Roll call was taken, 9 out of 9 members voted yes. Motion passed. 2021-075  Angel Wills gave an overview of the capital plans that would be compensated with this loan. o She said this 5 year capital plan was looking at more than just vehicles, it was looking at building repairs. o The decision was made with the amount already being borrowed in mind since it raised the taxes up last year and the City was not trying to raise them again, while also trying to complete critical repairs. o The debt service payments are in the budget book on page 49. The estimate is $422,724.00 for year one.  Councilor Lennon proclaimed she would like to make a point: o In reference to page 21 of the budget book titled “Outstanding Debt”, she said it would be helpful to know the timeline and terms are for the debts. o Angel Wills replied by saying she does have an entire amortization schedule available that does break the loans down into terms and timelines. She said she can put it on the website as a standalone document, the reason it is not in the budget book is because it is very large.  Councilor Stanganelli requested that the amortization schedule be posted on the Finance Committee page of the website as a spreadsheet as opposed to a PDF.  Councilor Einson asked how the budget for borrowing, sewer borrowing and water borrowing are either one bond or separate per department. (Page 124 of the Budget Book) o Angel Wills replied that is one vote and that she did clarify with bond council that there wasn’t a second vote needed to borrow against the enterprise fund. The reason they are broken up the way they are is because they are three different enterprises and she wanted to show that. But it is one bond. o Councilor Stanganelli asked what are the terms and timeline. o Angel Wills explained the loan amounts and timelines vary year by year depending on the amount, larger loan times can be extended longer and smaller loans can be shorter. 2  o The rate is 2.5%. The net tax bill impact is about $38.00 per average single family home.  Councilor Gilday asked Robert Desmarais: o Where the pumping station on Route 110 is and what it does. o What is happening to the Newton Road Weir? o What is the expected length of the fix?  He answered by saying the Newton Road Weir is a small damn that holds water back over the Water Treatment Plant’s intake. It makes the Fall River three or four feet deeper in the summer so that there is enough water to draw. The water is drawn directly from the Powow River.  The expected repair is good for 50 years. With good maintenance and interim repairs it could last longer than the expected repair life.  The pumping station is located under the Route 495 over pass on Route 110. There is a sewer siphon that goes under the Powow River. It has been backing up in the spring and the EPA is demanding there be something done about it. The proposal from the DPW is to install a sewage pump near the over pass. The cost being budgeted for is the worst case scenario. o Councilor Gilday asked about the Oak Street Bridge repair.  Robert Desmarais answered by saying the $450,000.00 is for engineering. Councilor Lennon motioned to send order 2021-075 back to City Council with a positive recommendation. Councilor Wheeler seconded this motion. Roll call was taken, 9 out of 9 members voted yes. Motion passed. 2021-076  Angel Wills explained this is a perfect match for the smaller capital improvement projects.  Councilor Gilday asked for an explanation of the project. o Paul Fahey responded by saying the project consists of adding bathrooms and exploring what can be renovated at the site. The wayfinding is part of a project that began last year. He said he can have the Mayor send out an update if desired. Councilor Lennon motioned to send order 2021-076 back to City Council with a positive recommendation. Councilor Hogg seconded this motion. Roll call was taken, 9 out 9 members voted yes. Motion passed. 2021-001  Chair of the Finance Committee, Councilor Stanganelli, decided to discuss order 2021-001 at the end of the meeting. *Items not anticipated 48 hours prior to meeting, may be discussed at the discretion of the Chair* 2021-078  Angel Wills discussed: o This is part two of two, the first part was a vote to release the overlay and this part two is to appropriate the released overlay before June 30th of this year or else it goes back into free cash. 3  o The current balance of the overlay account is $132,154.00. The amount needed is only $121,765.00. She suggested amending the order so the residual amount would fall back into free cash rather than have to be appropriated at a later time. o This money is for two projects, the AHS hot water tanks ($99,999.00) and the CES fire control panel ($21,775.00). Councilor Wheeler motioned to send order 2021-078 back to City Council with a positive recommendation pending final amendment of the by the Mayor’s Office. Councilor Gilday seconded this motion. Roll call was taken, 9 out of 9 members voted yes. Motion passed.  Changing the amount for transferring from $132,154.00 to $121,765.00. 2021-079  Angel Wills explained this is the remaining balance of the free cash. She said $168,305.00 to help mitigate the FY22 tax rate, thus leaving $39,483.00 to help the school with smaller capital projects.  Councilor Wheeler would like to see what attachments the will be purchased with the CIP money. Councilor Lennon motioned to send order 2021-079 back to City Council with a positive recommendation. Councilor Wheeler seconded this motion. Roll call was taken, 9 out of 9 members voted yes. Motion passed. 2021-001  Angel Wills spoke at length about her pride in the administration and the way the budgeting process has been handled despite all the trials following the past year.  Councilor Wheeler voiced his concern about there being many onetime funds. o Angel responded by saying the reliance on free cash has been dwindling over the previous years.  Councilor Lennon thanked Angel Wills.  Councilor Stanganelli recommended putting in place capital projects for the future ahead of time so they are on the books and not just through word of mouth. He gave the example of digitizing and restoring vital record books in the Clerk’s Office. Councilor Wheeler motioned to send order 2021-001 back to City Council with a positive recommendation. Councilor Lennon seconded this motion. Roll call was taken, 9 out of 9 members voted yes. Motion passed. Councilor Lennon motioned to adjourn. Councilor Mandeville seconded this motion. Roll call was taken, 9 out of 9 members voted yes. Motion passed. Adjourn at 9:46 pm Respectfully Submitted by, July 19, 2021 4 From: Angel A. Wills Sent: Thursday, April 1, 2021 5:26 PM To: 'Jane Snow' Cc: Robert Desmarais; Michael Hogg; Anthony Rinaldi; Matt Einson Subject: RE: Cem Funds Hi Jane. The balance in the Sale of Cemetery Lots is $28,820. There is $19,000 earmarked for the FY '22 budget. The remaining funds can be appropriated by City Council for the care and improvement of the cemeteries. The interest from the cemetery trust funds stay with the trust fund accounts, not the Sale of Cemetery Lots revolving fund. -Angel From: Jane Snow [mailto:jsnowcat@gmail.com] Sent: Thursday, April 1, 2021 9:44 AM To: Angel A. Wills Cc: Robert Desmarais; Michael Hogg; Anthony Rinaldi; Matt Einson Subject: Cem Funds Morning, Could you please let me know the balance of the Cemetery Account (238-4140) and how to access the funds for care & maintenance of cemetery? Does the interest from the trust for the 3 cemeteries also go into this account? I have spoken with Rob Desmarais and there are several project we would like to address this year using the cemetery funds. 1.repair stones damage b y trees that come down over winter -Union Cemetery 2. be pro-active and attend to some dead/decaying trees in Old Corner 3. Purchase some sign posts to enstall in Union & Mt Prospect Thanks in advance for your assistance. 5 From: Angel A. Wills Sent: Wednesday, May 12, 2021 11:16 AM To: 'Jane Snow' Cc: Robert Desmarais; Michael Hogg; Anthony Rinaldi; Matt Einson; Pamela Gilday Subject: RE: Cem Information Hi All. Just to follow up, the City pays for mowing for the Mt. Prospect Cemetery in the amount of $22,380 annually and mowing for the Union Cemetery in the amount of $19,500 annually so the revenue we are withdrawing from the Cemetery revolving fund only covers a little more than half of the annual costs. From: Angel A. Wills Sent: Tuesday, May 11, 2021 4:55 PM To: 'Jane Snow' Cc: Robert Desmarais; Michael Hogg; Anthony Rinaldi; Matt Einson; Pamela Gilday Subject: RE: Cem Information Hi Jane. Please see below. From: Jane Snow [mailto:jsnowcat@gmail.com] Sent: Monday, May 10, 2021 12:25 PM To: Angel A. Wills Cc: Robert Desmarais; Michael Hogg; Anthony Rinaldi; Matt Einson; Pamela Gilday Subject: Cem Information On April 28th I sent you an email with regards to Cemetery Funds. To date I have not received a reply. My concern is that the Budget Hearing for the DPW is scheduled for May 19th at 7pm and it is important to have the information this week in order for me to notify the council in ample time, before the budget hearing so this can be addressed. Would it be possible to get that information to me by Wed., May 12th. Thank you for your assistance in this matter. Jane Snow jsnowcat@gmail.com 978-462-6133 6 *The email below was sent from Jane Snow to Angel Wills. The black text is the original email and the bold and underlined text are the replies from Angel Wills to Jane Snow* To: Angel Wills Re: Cemetery Funds April 28, 2021 From: Jane Snow Thank you for your April 1st response to my questions. I am trying to get this straightened out/addressed during this budget season. I have concerns about the amount of money being transferred to the General fund from the cemetery accounts -monies that are needed for the care and maintenance of our cemeteries. If I understand this correctly the $28,820 appears to money acquired from the sale of cemetery lots. From 7-1-2019 to 6-30-2020 - 47 lots were sold. Total collected in lot fees and deed fees was $28,760. $28,820 was the balance in the account on 4/1/21. As of today the balance is $37,820. You stated that $19,000 was earmarked for the FY22 budget. Can you please tell me how or who makes that request? Traditionally, when there was a Parks and Cemetery Division $16,000 was added to the DPW budget for summer employees to work in the cemetery. That no longer happens, so I would like to speak with the person responsible for this to see if in fact this withdrawal of funds is still appropriate. Currently volunteers are supplying approximately 500 hrs. of work in our cemetery. Yes the Administration is requesting that $19,000 be transferred from this fund to supplement work provided by the DPW for city cemeteries. This is consistent with the amount transferred in FY 21, 20, and 19. In FY 18 the amount transferred was $22,000 and in FY 17 it was $20,000 You shared that the balance ($28,820 - $19,000 FY22 =) $9,820 can be appropriated by the city council. As I stated in my email we have stones that were damaged when a tree came down during a storm at Union and need to be repaired. We would also like to do some pro-active tree work (discussed and approved by Rob Desmarais). What are the steps for me to submit this request to the city council? If you do not have that information could you direct me to the right spot? In the past, under Mr. Lynch, any balance at the end of the FY was put in the General Fund. I do not want to see that happen this year when we have things that need to be done in the cemetery what steps need to be taken to ensure that does not happen? This fund does not close to the general fund. It is a revolving fund governed by ch. 114 sect. 15 of the MGL. The link for your reference is https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXVI/Chapter114/Section15. The Council may vote to transfer funds from this account for the care, improvement, embellishment or enlargement of the cemeteries. This would be done via a City Council Order which could be coordinated through the Town Clerk. 7  I inquired about the Cemetery Trust accounts and you shared the interest stays with the trust fund accounts. Could you please provide me with the trust interest and balance for FY20 & FY21? The current balance of the interest is $8,977.27 and balance at 6/30/20 was $12,240.15. We have budgeted to withdraw $3,500 for the FY 22 budget again to support maintenance of the cemeteries. The amount withdrawn in FY 21 & 20 was also $3,500 and was $4,000 in FY 19, $2,000 in FY 18, $4,160 in FY 17 and $8,000 in FY 16. I am aware that in FY 19 $4,000 was taken from various expendable interest accounts to supplement the FY19 general fund budget. Was money taken from the Cemetery Trust interest? If so how much? In FY 2020 Mr. Lynch shared with me that $3,500 was taken from the trust fund interest to supplement the FY 2020 budget. I hope that this is not being considered for the FY 22 budget as the money is supposed to be used for the care or maintenance of the cemetery or to help grow the trust accounts to allow for monies for future care of the cemetery. An Administrative fee of $500 for each full burial and $150 for each cremation is charged. Where does the money go – what happens to it? Is it in a separate account or is it placed in the general fund.? From July 1, 2020 to Dec 30, 2020 (6 months) $10,200 has been collected for 28 burials. I would appreciate an accounting of this for the last 2 years as this is substantial amount of money generated by the cemeteries above the sale of lots. Under MGL this is general fund revenue. I will send you a report detailing the receipts into this account. For years, lot owners were charged a perpetual care fee. Approximately, 80% of the lot owners purchased this. Before it was decided to stop it and include it in the sale of the lot it was approximately $200. How is this money accounted for? Unfortunately, I could not find a record of these funds. I appreciate your help in trying to sort all of this out. 8