Budget and Finance Subcommittee

City of Amesbury Office of the City Clerk 62 Friend St. Amesbury, MA 01913 By City Clerk at 5:22 pm, Feb 23, 2023 City Council Budget & Finance Committee Meeting Minutes Tuesday, January 17, 2023, at 7:30 PM Chairman Hickok called the meeting to order at 7:35 p.m. Roll call was taken, and present were Chairman Hickok, Councilor Deschenes and Councilor Stanganelli. Approval of 2023 Schedule: Councilor Deschenes moved to approve the 2023 Budget and Finance schedule. This motion was seconded by Chairman Hickok. The motion passed unanimously (3 voting members present). Minutes for Approval: November 21, 2022 Councilor Deschenes moved to approve the minutes of November 21, 2022. He was seconded by Councilor Stanganelli. The motion unanimously passed (3 voting members present). Communications and Updates: • CFO Marisa Batista provided updates (see attached). o In response to a question from Chairman Hickok, Ms. Batista stated that ambulance receipts are running higher than in the prior year. o In response to a question from Chairman Hickok, Ms. Batista stated that receipts from the settlement are in the general fund currently, and that she will be reaching out to the director of accounts to update the free cash certification. o In response to a question from Chairman Hickok, Ms. Batista stated that the pension assessment has been paid in full. o In response to a question from Chairman Hickok, Ms. Batista stated that the trash collection contract is expiring June 30th, and that she is expecting an increase. o Councilor Stanganelli asked who is responsible for completing paperwork for Medicaid reimbursement. Ms. Batista replied that the school department is responsible. Chairman Hickok requested a follow up and the answer on the interest rate of 4%. Public Comment- There was no one to speak during the public comment portion of the meeting. 2022-162 An Order to decertify the Tax Increment Financing Incentive Agreement entered into by the City with Global Property Developers Inc. as described herein and incorporated herein by reference. - Mayor and Councilor Rinaldi Sponsor Councilor Deschenes read a summary of the bill. Chairman Hickok stated that the current TIF is being decertified and approval to decertify is required to hear a new TIF. Councilor Stanganelli stated that the city does TIFs because of extraordinary cost for development of the parcel, and that it is clear that the property developers have not taken advantage of the TIF. Councilor Stanganelli also stated that he is in favor of getting rid of the TIF. Councilor Stanganelli moved to send bill 2022-162 as presented back to the full City Council with a positive recommendation. He was seconded by Councilor Deschenes. The motion passed unanimously (3 voting members present). 2022-163 An Order approving and authorizing a Tax Increment Financing Incentive for Munters Corporation through a Tax Increment Financing Agreement with Munters Corporation and Global Property Developers Corporation as described herein and further described in the attachments which are incorporated herein by reference, authorizing execution thereof by the Mayor, and authorizing the mayor to take such actions as are necessary or appropriate to obtain Massachusetts Economic Assistance Coordinating Council approval, implement those documents, and carry out the purposes of this Order. - Mayor and Councilor Rinaldi Sponsor Councilor Stanganelli read a summary of the bill. Chairman Hickok read his support for the TIF. Community and Economic Development Director Angela Cleveland gave a brief explanation of the TIF agreement. Ms. Cleveland stated that red line changes to the TIF agreement are being reviewed by the state, and that both the certification and decertification have already been approved by the state. Andrew Cook, a representative from Munters, spoke on the positive impacts Munters has had on Amesbury as well as projections. Councilor Deschenes offered himself as an example of economic spin-off from Munters. He stated his support for keeping Munters in Amesbury. Councilor Stanganelli stated that it is disappointing that the city is not getting 62,000 hotel nights. Councilor Stanganelli asked if a traffic study and/or traffic mitigation are one of the extraordinary costs anticipated. Ms. Cleveland stated that it is hard to tell, but there is an official submission to the Planning Board asking for a waiver for some of the parking on that site, and she is not anticipating this as a big cost. Councilor Stanganelli asked if Munters has provided a number for costs and extraordinary costs. Ms. Cleveland stated that Munters has provided $28,000,000 in capital equipment. Councilor Stanganelli asked if Munters would continue to use the facility for manufacturing. Andrew Cook replied that the intent was to sell. Councilor Stanganelli stated that he is happy to see Munters stay, but there are concerns about the specific extraordinary site development cost and the burden shifting from stock owners to taxpayers. Councilor Wheeler asked how the $40,000,000 is calculated. Alison McDougall, a representative from Munters, replied that this refers to the investment cost for developers to build the property. Councilor Wheeler asked clarifying questions regarding the TIF Agreement and recommended reviewing certain numbers. Councilor Wheeler expressed concerns regarding the document as a whole, as this is what the City Council will be voting on. Councilor Deschenes stated that 100% of nothing is nothing, and that what Munters pays in taxes will not be replaces when they leave. Chairman Hickok referred to the Economic Incentives guidelines (see attached). Chairman Hickok stated that the development project must hit certain returns, and that without the proposed TIF, this project may not happen. Chairman Hickok thanked Munters for coming to the Budget and Finance meeting. Councilor Stanganelli moved to recommend bill 2022-163 as presented with the caveat and corrections as noted by Councilor Wheeler’s comments relative to typographical items, a proposal in the appropriate place to confirm and clarify the language and intention with respect to personal property taxation, and the inclusion of the following language: “In the event the accrued benefits to Global and Munters achieve 5.4 million, or some rounded total similar to the schedule that is presented, if they achieve that amount in total benefits, the TIF shall cease the following tax pay period.” He was seconded by Councilor Deschenes. The motion passed 2 to 1 with Councilor Deschenes and Chairman Hickok in favor and Councilor Stanganelli opposed (3 voting members present). 2022-164 An Order to authorize a transfer of $12,941 from the FY23 Budget Reserve account to Council on Aging Salaries & Wages. -Mayor Sponsor Chairman Hickok read a summary of the bill. CFO Marisa Batista stated that this was an oversight, and that the director of the Council on Aging should have received a longevity increase in May 2018. Councilor Stanganelli moved to send bill 2022-164 as presented back to the full City Council with a positive recommendation. He was seconded by Councilor Deschenes. The motion passed unanimously (3 voting members present). 2022-165 An Order to authorize a transfer of $6,000 from the FY23 Budget Reserve account to Conservation Commission Salaries & Wages. -Mayor Sponsor Councilor Deschenes read a summary of the bill. CFO Marisa Batista stated that the city is in the process of hiring a new conservation agent and that the previous salary is not attractive, and was found to be the lowest paid salary in comparison to surrounding communities. Councilor Stanganelli moved to send bill 2022-165 as presented back to the full City Council with a positive recommendation. He was seconded by Councilor Deschenes. The motion passed unanimously (3 voting members present). 2022-166 An Order to authorize the Mayor to accept and expend a FY23 Legislative Earmark Grant Award from the Commonwealth of Massachusetts in the amount of $100,000 for improvements to athletic fields. -Mayor Sponsor Councilor Stanganelli read a summary of the bill. Chief of Staff Ann Marie Casey stated that she and the Mayor are working with the soccer association, lacrosse, and high school administration to put together a budget for the legislative earmark grant. Councilor Stanganelli moved to send bill 2022-166 as revised back to the full City Council with a positive recommendation. He was seconded by Councilor Deschenes. The motion passed unanimously (3 voting members present). 2022-167 An Order to approve payment from the FY23 general fund operating budget for the below listed prior year invoice. -Mayor Sponsor Chairman Hickok read a summary of the bill. Chief of Staff Ann Marie Casey stated that this is just one old invoice from August 6, 2019. Councilor Stanganelli moved to send bill 2022-167 as presented back to the full City Council with a positive recommendation. He was seconded by Chairman Hickok. The motion passed unanimously (3 voting members present). 2022-190 An Order to authorize the Mayor to accept and expend a grant in the amount of $20,000 from the Coastal Trails Coalition (CTC) for the Amesbury Carriagetown Connector project. -Mayor Sponsor Councilor Deschenes read a summary of the bill. Chief of Staff Ann Marie Casey stated that this is the final piece of the project and will support the design and engineering. Councilor Stanganelli moved to send bill 2022-190 as presented back to the full City Council with a positive recommendation. He was seconded by Chairman Hickok. The motion passed unanimously (3 present). 2022-191 An Order to authorize the Mayor to accept and expend a Sustainable & Resilient New England Libraries Grant from the Association for Rural & Small Libraries (ARSL) in the amount of $8,200.00. - Mayor Sponsor Councilor Stanganelli read a summary of the bill. Councilor Deschenes moved to send bill 2022-191 as presented back to the full City Council with a positive recommendation. He was seconded by Chairman Hickok. The motion passed unanimously (3 present). Adjourn: Councilor Deschenes moved to adjourn the meeting at 9:37. He was seconded by Councilor Stanganelli. The motion passed unanimously (3 voting members present). Respectfully submitted, Jasmine Looney February 17, 2023 Year to Date Salaries Benchmark - Salaries paid through 12/22/22 48.45% Year to Date Expenses Benchmark - Expenses paid through 12/31/22 50.00% City Budget Expended Unexpended (YTD) % Expended Department (YTD) (YTD) Council Salaries $ 45,243 $ 19,974 $ 25,269 44.15% Council Expenses $ 92,595 $ 51,176 $ 41,419 55.3% Mayor Salaries $ 305,637 $ 139,633 $ 166,004 45.7% Mayor Expenses $ 12,090 $ 4,389 $ 7,701 36.3% Administration & Finance Salaries $ 360,375 $ 157,043 $ 203,332 43.6% Administration & Finance Expenses $ 13,658 $ 1,332 $ 12,326 9.8% Assessors Salaries $ 207,327 $ 83,765 $ 123,562 40.4% Assessors Expenses $ 43,170 $ 16,431 $ 26,738 38.1% Treasurer/Collector Salaries $ 211,500 $ 99,840 $ 111,660 47.2% Treasurer/Collector Expenses $ 33,700 $ 13,337 $ 20,363 39.6% Legal $ 150,000 $ 39,936 $ 110,064 26.6% MIS Salaries $ 346,800 $ 138,745 $ 208,055 40.0% MIS Expenses $ 504,646 $ 259,810 $ 244,836 51.5% Central Supplies $ 62,335 $ 30,186 $ 32,149 48.4% Clerk Salaries $ 193,078 $ 87,596 $ 105,482 45.4% Clerk Expenses $ 5,275 $ 2,533 $ 2,742 48.0% Elections $ 55,617 $ 39,040 $ 16,577 70.2% Conservation Commission $ 53,603 $ 18,807 $ 34,796 35.1% Planning Board $ 5,525 $ 186 $ 5,340 3.4% Zoning Appeals Board $ 525 $ 265 $ 260 50.5% Community/Economic Dvlp. Salaries $ 312,779 $ 136,376 $ 176,403 43.6% Community/Economic Dvlp. Expenses $ 5,200 $ 789 $ 4,411 15.2% Other Assessments $ 7,718 $ 6,718 $ 1,000 87.0% Municipal Buildings $ 166,800 $ 32,370 $ 134,430 19.4% Police Salaries $ 4,395,133 $ 2,156,993 $ 2,238,140 49.1% Police Expenses $ 423,195 $ 236,156 $ 187,039 55.8% Fire Salaries $ 3,533,134 $ 1,839,229 $ 1,693,906 52.1% Fire Expenses $ 363,449 $ 172,582 $ 190,867 47.5% Building Inspection Salaries $ 313,535 $ 153,217 $ 160,318 48.9% Building Inspection Expenses $ 27,426 $ 12,627 $ 14,799 46.0% Weights & Measures $ 4,500 $ - $ 4,500 0.0% Harbormaster $ 32,500 $ 3,958 $ 28,542 12.2% School Department $ 35,032,129 $ 15,811,812 $ 19,220,317 45.1% Regional School Assessment $ 2,311,691 $ 1,074,689 $ 1,237,002 46.5% DPW Salaries $ 951,886 $ 365,736 $ 586,150 38.4% DPW Expenses $ 819,849 $ 414,947 $ 404,902 50.6% Snow & Ice $ 250,000 $ 30,415 $ 219,585 12.2% Street Lighting $ 150,000 $ 59,123 $ 90,877 39.4% Expense Report as of 12/31/22  City Budget Expended Unexpended (YTD) % Expended Department (YTD) (YTD) Refuse Collection & Disposal $ 1,470,000 $ 575,797 $ 894,203 39.2% Health Inspection Salaries $ 95,000 $ 25,947 $ 69,053 27.3% Health Inspection Expenses $ 13,424 $ 5,081 $ 8,343 37.8% Council on Aging Salaries $ 159,502 $ 64,097 $ 95,405 40.2% Council on Aging Expenses $ 4,700 $ 1,393 $ 3,307 29.6% Youth Services Salaries $ 374,819 $ 190,949 $ 183,870 50.9% Youth Services Expenses $ 42,070 $ 16,642 $ 25,428 39.6% Veterans Salaries $ 4,800 $ 2,420 $ 2,380 50.4% Veterans Expenses $ 373,071 $ 140,212 $ 232,859 37.6% Library Salaries $ 664,006 $ 291,943 $ 372,063 44.0% Library Expenses $ 215,465 $ 134,395 $ 81,070 62.4% Debt Service $ 3,851,693 $ 2,106,407 $ 1,745,286 54.7% State Assessment $ 3,776,077 $ 1,624,370 $ 2,151,707 43.0% Employee Benefits $ 7,197,915 $ 5,227,147 $ 1,970,768 72.6% Liability Insurance $ 400,167 $ 273,441 $ 126,726 68.3% Other Reserves $ 141,109 $ - $ 141,109 0.0% Transfers $ 578,405 $ 578,405 $ - 100.0% TOTAL GENERAL FUND $ 71,165,846 $ 34,970,405 $ 36,195,442 49.1% (Softright Recon) $71,165,846 $34,970,405 Water Department Salaries $ 1,246,187 $ 569,976 $ 676,211 45.7% Water Department Expenses $ 3,917,648 $ 2,085,790 $ 1,831,858 53.2% Total Water Department Expenses $ 5,163,835 $ 2,655,767 $ 2,508,069 51.4% Water Department Revenue $ 4,010,000 $ 1,984,968 $ (2,025,032) 49.5% Net Profit (Loss) YTD - Water $ (670,799) Sewer Department Salaries $ 754,715 $ 353,911 $ 400,804 46.9% Sewer Department Expenses $ 2,160,214 $ 1,508,841 $ 651,373 69.8% Total Sewer Department Expenses $ 2,914,929 $ 1,862,752 $ 1,052,177 63.9% Sewer Department Revenue $ 2,700,000 $ 1,357,448 $ (1,342,552) 50.3% Net Profit (Loss) YTD - Sewer $ (505,304) Expense Report as of 12/31/22  City of Amesbury Preliminary Revenue Report Period Ending 12/31/22 Year to Year Comparison Revenue Source 12/31/2020 12/31/2021 12/31/2022 FY 22 to 23 Change FY 21-23 Trendline Real Estate & Pers Property $ 21,819,031 $ 23,848,948 $ 24,835,294 $ 986,346 Motor Vehicle Excise $ 353,608 $ 380,556 $ 355,377 $ (25,179) Cannabis Excise $ 170,157 $ 237,531 $ 181,827 $ (55,704) Opioid Settlement $ - $ - $ 114,124 $ 114,124 Other Excise (Hotel, Meals, Boat) $ 248,200 $ 421,834 $ 485,657 $ 63,823 Penalties & Interest $ 93,977 $ 127,879 $ 68,575 $ (59,304) PILOT $ - $ - $ - $ - Sewer Enterprise Fund $ 1,492,795 $ 1,517,396 $ 1,357,448 $ (159,948) Water Enterprise Fund $ 2,162,608 $ 2,108,883 $ 1,984,968 $ (123,915) Cable Public Access Fund $ 131,732 $ 151,795 $ 168,969 $ 17,174 Ambulance $ 267,564 $ 398,041 $ 464,964 $ 66,923 Youth Revolving $ 47,508 $ 132,890 $ 198,593 $ 65,703 Fees $ 80,732 $ 80,850 $ 69,222 $ (11,628) Departmental Revenue $ 8,941 $ 5,545 $ 5,228 $ (317) Rentals $ 18,966 $ 56,182 $ 39,442 $ (16,740) License & Permits $ 348,757 $ 341,262 $ 385,528 $ 44,266 Fines & Forefits $ 16,216 $ 33,949 $ 27,009 $ (6,940) Investment Income $ 33,078 $ 18,585 $ 97,060 $ 78,475 **Comm of MA Cherry Sheet $ 5,957,919 $ 5,943,026 $ 6,316,300 $ 373,274 ***Cherry Sheet Charges & Assessments $ (1,378,877) $ (1,348,465) $ (1,624,370) $ (275,905) *Misc Revenue $ 78,405 $ 218,434 $ 18,838 $ (199,596) Medicaid Reimbursement $ 61,571 $ - $ - $ - Tax Liens Redeemed $ 154,866 $ 269,092 $ 100,891 $ (168,201) Other GF Rev - Trnsf From Sp Rev & Free Cash $ 1,853,852 $ 1,811,576 $ 1,289,408 $ (522,168) Total $ 34,021,606 $ 36,755,789 $ 36,940,351 $ 184,562 Prepared by Marisa Batista, Chief Financial Officer  City of Amesbury Preliminary Revenue Report Period Ending 12/31/22 Collections as a Percent of Budget 50% of Fiscal Year Complete Revenue Source FY 23 Estimated FY 23 Actual Variance % Collected Real Estate & Pers Property $ 52,464,375 $ 24,835,294 $ (27,629,081) 47.3% Motor Vehicle Excise $ 2,350,000 $ 355,377 $ (1,994,623) 15.1% Other Excise (Hotel, Meals, Boat) $ 549,000 $ 485,657 $ (63,343) 88.5% Cannabis Excise $ 550,000 $ 181,827 $ (368,173) 33.1% Opioid Settlement $ - $ 114,124 $ 114,124 #DIV/0! Penalties & Interest $ 180,000 $ 68,575 $ (111,425) 38.1% PILOT $ 12,000 $ - $ (12,000) 0.0% Fees $ 135,500 $ 69,222 $ (66,278) 51.1% Departmental Revenue $ 20,000 $ 5,228 $ (14,772) 26.1% License & Permits $ 600,000 $ 385,528 $ (214,472) 64.3% Fines & Forefits $ 45,000 $ 27,009 $ (17,991) 60.0% Investments $ 45,000 $ 97,060 $ 52,060 215.7% Medicaid Reimbursement $ 64,000 $ - $ (64,000) 0.0% Rentals $ - $ 39,442 $ 39,442 #DIV/0! *Misc Revenue $ 4,500 $ 18,838 $ 14,338 418.6% Tax Liens Redeemed $ - $ 100,891 $ 100,891 #DIV/0! Comm of MA Cherry Sheet $ 13,010,209 $ 6,316,300 $ (6,693,909) 48.5% ***Cherry Sheet Charges & Assessments $ (3,776,077) $ (1,624,370) $ 2,151,707 43.0% Sewer Enterprise Fund $ 2,700,000 $ 1,357,448 $ (1,342,552) 50.3% Water Enterprise Fund $ 4,010,000 $ 1,984,968 $ (2,025,032) 49.5% Cable Public Access Fund $ 300,000 $ 168,969 $ (131,031) 56.3% Youth Revolving $ 250,000 $ 198,593 $ (51,407) 79.4% Ambulance $ 650,000 $ 464,964 $ (185,036) 71.5% Other GF Rev - Trnsf From Sp Rev & Free Cash $ 1,289,408 $ 1,289,408 $ - 100.0% Total $ 75,452,915 $ 36,940,351 $ (38,512,564) 49.0% Estimated General Fund Revenue $ 71,318,992 $ 34,275,657 $ (37,043,335) 48.1% Estimated Local Receipts $ 4,555,000 $ 1,733,764 $ (2,821,236) 38.1% Prepared by Marisa Batista, Chief Financial Officer