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Finance Committee

Regular Meeting

Franklin, MA · May 6, 2024

AgendaMinutes

Minutes

‭Finance Committee‬ ‭Meeting Minutes‬ ‭May 6, 2024‬ ‭__________________________________________________________________________________________________________‬ ‭Minutes of the Finance Committee Meeting Monday, May 6, 2024‬ ‭A meeting of the Finance Committee was held Wednesday evening, May 6, 2024, at the‬ ‭Municipal Building, 2nd Floor, Council Chambers, 355 East Central Street, Franklin, MA.‬ ‭Members Present‬ ‭- George Conley, Chair‬ ‭- Natalie Riley, Vice Chair‬ ‭- Nicole Corbosiero, Clerk‬ ‭- Heather Sansoucy‬ ‭- William Batchelor‬ ‭- Chuna Keophannga‬ ‭- Michael Hamilton‬ ‭- Lauren Nagel‬ ‭1. Call to Order‬ ‭2. Public Comments‬ ‭[NONE]‬ ‭3. Approval of Minutes‬ ‭a. April 17, 2024‬ ‭SUMMARY: No minutes were included in the packet for approval. Chair Conley suggests‬ ‭moving approval of the April 17, 2024 minutes to the next meeting on Wednesday.‬ ‭4. "A Citizens Pledge to the Residents of Franklin"‬ ‭a. Pledge document‬ ‭b. Town Administrator/Superintendent of Schools Slideshow‬ ‭SUMMARY: Town Administrator Hellen presents the "Citizens Pledge to the Residents of‬ ‭Franklin" document that was unanimously approved by the Town Council last week. He‬ ‭emphasizes the importance of unity for a successful override passage. The Finance‬ ‭Committee has the option to discuss and approve the Pledge, though it is not a legal‬ ‭requirement. The Town Administrator gave a long slideshow presentation on this topic with‬ ‭the Superintendent last week. Town Administrator Hellen is happy to answer any questions‬ ‭but wants to avoid a long discussion as there are other agenda items to get to.‬ ‭Vice Chair Natalie Riley asks about the impact of the override on the budget as they go‬ ‭through line items. Town Administrator Hellen explains the budget he put out represents‬ ‭various stakeholders and departments and feels it is still the best budget, understanding the‬ ‭School Department has asked for a 13% increase for various reasons. He recommends the‬ ‭Finance Committee look at the budget as presented and dig into issues for or against. There‬ ‭is little new spending in his proposed budget.‬ ‭Town Administrator Hellen explains that if the override passes, account 300 would go up by‬ ‭6 points and funds would have to be put in Facilities and School accounts. If it fails, they will‬ ‭have to do a budget review two weeks later to determine cuts and adjustments. The June‬ ‭26th Town Council meeting will be a decision day after the override vote to revise the‬ ‭budget before the new fiscal year starts. The School budget approved April 9th also did not‬ ‭include the health insurance reduction negotiated, so their numbers have to be adjusted as‬ ‭well based on override results.‬ ‭Committee Member Heather Sansoucy thanks everyone involved for the hard work putting‬ ‭the Pledge together. She asks about the 5-year plan mentioned and the 60-40 split ending in‬ ‭FY30, wondering if there will be longer-term 10-year planning. Town Administrator Hellen‬ ‭says he would like to give a 5-10 year financial forecast but they haven't had the staff‬ ‭capacity to think that strategically and collaboratively for that long, beyond a few years. The‬ ‭capital plan is well baked out 5-10 years. Getting a Budget/Fiscal Analyst will help free up‬ ‭his time for longer range planning. The 5-year timeframe was chosen to give taxpayers‬ ‭assurance this would be a one-time override ask.‬ ‭Committee Member Chuna Keophannga notes some public reaction to language about‬ ‭"living within means" in Section 6d of the Pledge, with some interpreting that as implying‬ ‭Franklin has been living lavishly. She suggests considering the phrasing there when sharing‬ ‭the document widely. Town Administrator Hellen agrees there are differing public opinions‬ ‭on spending and the phrase was intended to set expectations with taxpayers feeling‬ ‭overwhelmed by rising costs that the town needs to start living within Prop 2 1/2 revenues‬ ‭at some point.‬ ‭VOTE(S):‬ ‭Subject: Motion to approve the override pledge as presented‬ ‭Mover: William Batchelor‬ ‭Second: George Conley‬ ‭Result: Passed‬ ‭Details of the vote: Roll call vote‬ ‭George Conley - Yes‬ ‭Natalie Riley - Yes‬ ‭Heather Sansoucy - Yes‬ ‭William Batchelor - Yes‬ ‭Chuna Keophannga - Yes‬ ‭Michael Hamilton - Yes‬ ‭Lauren Nagel - Yes‬ ‭Nicole Corbosiero - Yes‬ ‭5. FY25 Town Administrator Operating Budget Hearing:‬ ‭FY25 Town Administrator Budget Materials website‬ ‭a. General Government‬ ‭i. Departments: 111 Town Council, 123 Town Administrator, 131 Finance Committee, 135‬ ‭Comptroller, 141 Assessors, 147 Treasurer-Collector, 151 Legal, 152 Human Resources, 155‬ ‭Information Technology, 161 Town Clerk, 164 Elections & Registration, 171 Conservation‬ ‭Commission, 176 Appeals Board (ZBA), 177 Planning & Growth Management, 184‬ ‭Agricultural Commission, 192 Public Properties & Buildings, 196 Purchasing & Central‬ ‭Services.‬ ‭SUMMARY: Town Council (Dept 111) - No questions or issues raised.‬ ‭Town Administrator (Dept 123) - Town Administrator Hellen notes the main expenses are‬ ‭staff. He is grateful to have Deputy Town Administrator Amy Frigulietti on board, noting‬ ‭many other towns of various sizes have Assistant Town Managers. The rest of the money‬ ‭relates to professional development, dues and conferences. They have a lean staff of 4‬ ‭people compared to 6-8 in offices of comparable size communities.‬ ‭Committee Member Heather Sansoucy asks about the compensation analysis done in‬ ‭January 2022 and presented in 2023, wondering about plans to use it to rein in salaries not‬ ‭under union contracts, as this is an area of wiggle room in the budget. Town Administrator‬ ‭Hellen explains the full comp plan study is on the HR website. This was the first ever done‬ ‭by the town. They wanted a study reflecting actual salaries and found some positions were‬ ‭heavily underpaid for a long time. Priorities were the lowest and highest grades as fewer‬ ‭people want leadership roles these days. The goal is to get positions to midpoints of salary‬ ‭grades over the next 3-5 years through attrition and new hires. It's challenging to discuss‬ ‭publicly but Town Administrator Hellen aims to pay people doing great work at the highest‬ ‭level possible within reason. The comp plan will be updated each July 1 by 2.5% to stay‬ ‭within the market. HR Director Karen Bratt clarifies the FY24 comp plan is on the website‬ ‭now, so the FY25 numbers discussed will be 2.5% higher once the new budget is approved‬ ‭and the FY25 plan posted.‬ ‭Resident Max Morrongiello asks for context on how the comp plan relates to the budget for‬ ‭the public watching. Town Administrator Hellen explains institutional knowledge is valued‬ ‭but not the only factor - it depends on the specific job.‬ ‭Finance Committee (Dept 131) - Chair Conley asks if some of the $1500 budget could be‬ ‭used to have someone take detailed notes on the meetings, feeling a lot of important data‬ ‭comes out that should be captured. Town Administrator Hellen jokingly says that's why he‬ ‭needs a Deputy Town Administrator, referring to Amy taking notes and running Zoom.‬ ‭Comptroller (Dept 135) - No major questions. The main driver is staff salaries and $58,000‬ ‭for the annual audit. Chair Conley asks if school transactions are audited as completely as‬ ‭the town. Comptroller Chris Sandini confirms the schools are audited proportionally to the‬ ‭percentage of the budget they represent.‬ ‭Assessors (Dept 141) - No questions.‬ ‭Treasurer-Collector (Dept 147) - No questions.‬ ‭Legal (Dept 151) - Town Administrator Hellen notes an additional $10,000 was added to‬ ‭legal expenses as it is a collective bargaining year. He hopes not much will be needed as they‬ ‭have good labor relations and can usually resolve issues without lawyers present, unlike‬ ‭many other towns and schools.‬ ‭Human Resources (Dept 152) - Chair Conley asks about the status of getting HR software,‬ ‭something he has inquired about for 3-4 years. HR Director Karen Bratt explains they were‬ ‭looking at one product that had procurement issues, so switched to potentially expanding‬ ‭their Munis payroll system. The Technology Director is working on it along with other major‬ ‭projects so it has been pushed back but is progressing. The big challenge will be getting old‬ ‭data entered which is labor intensive. Chair Conley is glad to see payroll being migrated‬ ‭together between town and schools as it makes sense despite nuances on each side.‬ ‭Committee Vice Chair Riley confirms the headcount increase of one is an Administrative‬ ‭Assistant, which makes sense given bandwidth constraints.‬ ‭Information Technology (Dept 155) - Town Administrator Hellen explains the main cost‬ ‭driver is an attempted joint town/school hire of a Cybersecurity Specialist in FY24. Unable‬ ‭to find a candidate at the budgeted salary level, they are trying again this year on just the‬ ‭Town side but it's unclear if the salary will attract who they want. The IT director will look‬ ‭at other options like an outside service if needed. The other positions are a Munis‬ ‭Administrator and Budget/Fiscal Analyst. A School Payroll employee is also moving to this‬ ‭Town budget as part of a reorganization to put town and school payroll together for‬ ‭efficiency.‬ ‭Committee Vice Chair Riley asks besides Munis, what other significant maintenance‬ ‭contracts are carried. IT Director Rapoza says total licensing in the budget is $435,000.‬ ‭Google per user licensing was the biggest increase, going from $41,000 to $68,000. Even‬ ‭suspended accounts still incur an $18 per user archive fee to maintain access to that data,‬ ‭currently costing around $10,000 per year and growing until they institute a cutoff, likely at‬ ‭7 years.‬ ‭Town Clerk (Dept 161) - No questions.‬ ‭Elections & Registration (Dept 164) - No questions on this "hot topic" given upcoming‬ ‭election.‬ ‭Conservation Commission (Dept 171) - Town Administrator Hellen explains this is a brand‬ ‭new budget, carved out from the Planning Department, though Conservation still works‬ ‭under Planning. With their first full-time staff member, they are trying to elevate the‬ ‭conservation function given all the open space in town. In the next 5 years, this budget may‬ ‭include more initiatives and grant money but no huge cost adjustments are expected yet.‬ ‭Zoning Board of Appeals (Dept 176) - No questions. Town Administrator Hellen jokes the‬ ‭ZBA members are residents' "best friends" as they bring in huge fees to the town.‬ ‭Planning and Growth Management (Dept 177) - No major questions. Town Administrator‬ ‭Hellen notes the main change is removing the Conservation salary to its own department.‬ ‭Agricultural Commission (Dept 184) - No questions on this Commission formed 6-7 years‬ ‭ago with a small $1000 budget.‬ ‭Public Properties & Buildings (Dept 192) - Chair Conley asks what percentage of the‬ ‭Facilities budget is spent on Schools vs. General Government in dollars or percentage.‬ ‭Facilities Director Mike D’Angelo is not present but Deputy Facilities Director Kevin Harn‬ ‭says it's a very large portion based on the square footage. Town Administrator Hellen‬ ‭estimates roughly 70-75% as the schools represent 1 million out of 1.3 million total square‬ ‭feet of Town buildings. In actuality it's even higher as School facility needs are so substantial‬ ‭they have to focus their resources there over other Town building projects.‬ ‭Chair Conley assumes utility rates are up across the board so the Facilities budget has to‬ ‭account for that. Committee Vice Chair Riley questions how electricity is down. Chair Conley‬ ‭figures the Director budgets based on projected usage. Town Administrator Hellen adds‬ ‭there are also net metering credits that help, like from a solar farm on Union Street that‬ ‭allowed converting lights to LED for free.‬ ‭Resident Max Morrongiello asks about the $200,000 telephone budget, having looked into a‬ ‭2018 memo about a lease. He calculated the actual landline/service portion was under‬ ‭$50,000 and requests a further breakdown of the telephone line item. Town Administrator‬ ‭Hellen refers to IT Director Rapoza. IT Director Rapoza explains landlines are budgeted at‬ ‭$204,000 for lines in all town buildings. When they looked at potentially moving everyone to‬ ‭cell phones 5 years ago it wasn't popular. But he agrees that is likely the future trend.‬ ‭IT Director Rapoza breaks down the other Technology costs, like $435,000 total for various‬ ‭software licensing, a major increase in Google per user fees from $144 to $240, and around‬ ‭$10,000 per year for archived accounts of former employees. Desktop phones are still‬ ‭needed for 911 purposes to pinpoint location. On cell phones, they get free upgrades every‬ ‭1.5 years under a state contract with Verizon.‬ ‭Chair Conley raises the lack of Town email addresses for the Finance Committee, as‬ ‭discussed at a prior seminar, and potential issues with personal emails being subpoenaed.‬ ‭Town Administrator Hellen says they have considered it but need to figure out a plan to‬ ‭expand to another 15 appointed boards which takes work. When he worked in Hopkinton,‬ ‭some boards like the Cultural Council had one shared email/Drive account they could set‬ ‭permissions on as chairs rotated. Some individuals don't want town email accounts. Chair‬ ‭Conley agrees but is concerned about exposure of personal accounts.‬ ‭Purchasing and Central Services (Dept 196) - Town Administrator Hellen explains Central‬ ‭Services was already in the budget but they have now merged it with Purchasing, moving‬ ‭the Chief Procurement Officer (CPO) position out of the Comptroller budget into its own‬ ‭department. As the town grows, purchasing efforts will expand. He thanks CPO Pam Vickery‬ ‭for her hard work, noting she also assists the schools with 30B purchasing of food, supplies‬ ‭and state bids.‬ ‭Committee Vice Chair Riley clarifies the comptroller would charge the school purchasing‬ ‭work back to the schools. Town Administrator Hellen says yes, probably 5%.‬ ‭Human Services‬ ‭i. Departments: 510 Board of Health, 535 Disability Commission, 541 Council on Aging, 543‬ ‭Veterans Services, 535 Disability Commission.‬ ‭SUMMARY: Board of Health (Dept 510) - Chair Conley asks Health Director Cathy Liberty‬ ‭how many restaurants and food service establishments get inspected in town. Health‬ ‭Director Liberty consults her narrative and estimates around 130 food establishments plus‬ ‭75 convenience stores. Traditionally one person, Ginny McNeal, has done all inspections.‬ ‭However, they are now part of a Metacomet health alliance with Wrentham and Norfolk. One‬ ‭inspector from that alliance does 16 Franklin inspections per month, paid for by a state DPH‬ ‭grant.‬ ‭Disability Commission (Dept 535) - No questions on this important Commission. Town‬ ‭Administrator Hellen notes the small budget basically pays for their annual fair.‬ ‭Council on Aging (Dept 541) - Chair Conley notes the Senior Center Director position is‬ ‭being advertised again, wondering if pay is the issue for the turnover. Town Administrator‬ ‭Hellen says definitely not pay. He gives historical context that after long-time director Karen‬ ‭Alves retired, they have been trying to get the center back on good footing. Karen Alves' 25‬ ‭years of leadership led to major expansions and a new building, but programs and rooms‬ ‭were not being fully utilized after.‬ ‭With the current staff, the center is now vibrant, hopping and well utilized whenever Town‬ ‭Administrator Hellen visits. The staff does an excellent job with programming, clubs and‬ ‭rentals that bring in revenue to offset expenses. Last year they budgeted $25,000 for senior‬ ‭transportation, a cost-share with GATRA to make rides to the center more affordable to‬ ‭access the social workers, food, etc. The new budget includes a Van Driver and admin‬ ‭support to coordinate the van and handle the large caseload. Social workers serve all ages,‬ ‭not just seniors. A new Senior Center van is expected to be delivered in August.‬ ‭Committee Member Heather Sansoucy asks if there is information sharing between the‬ ‭town offices and Senior Center on available assistance programs as part of the social work‬ ‭role. Deputy Town Administrator Amy Frigulietti says the Senior Center got a grant to create‬ ‭an online resource guide with tax work-off program participants that will include resources‬ ‭across the town.‬ ‭Committee Member Heather Sansoucy asks the main communication methods of the Senior‬ ‭Center. Acting Senior Center Director Sarah Amaral explains their printed newsletter is‬ ‭mailed to all in-town residents who want it, with a small postage fee for out of town‬ ‭requests. It is also emailed to a distribution list and posted on the town website.‬ ‭Veterans Services (Dept 543) - No major questions. Town Administrator Hellen notes the‬ ‭Town no longer has service agreements with other towns. The budget covers basic‬ ‭departmental expenses and direct benefits to veterans required by law.‬ ‭Disability Commission (Dept 535) - Addressed earlier, no further discussion.‬ ‭Culture & Recreation‬ ‭i. Departments: 610 Library, 630 Recreation, 690 Historical Museum, 691 Historical‬ ‭Commission, 693 Arts & Culture, 695 Cultural Council, 696 Cultural District Committee.‬ ‭SUMMARY: Library (Dept 610) - Chair Conley remarks the Library budget seems steady‬ ‭year-to-year which is fine. He asks if they are still state certified. Town Administrator Hellen‬ ‭says they are just slightly over the Municipal Appropriation Requirement (MAR), a 110-year‬ ‭old statute on minimum library spending. If they took around $75,000 in cuts they might not‬ ‭meet MAR. They haven't been on the waiver list for 6 years.‬ ‭Committee Member Lauren Nagel asks if the approximately $200,000 books and‬ ‭publications line item is for actually buying books and publications. Library Director Felicia‬ ‭Oti clarifies it is just for print, audio and digital collections - over 50% still goes to physical‬ ‭books which remain popular.‬ ‭Committee Member Heather Sansoucy compliments a recent presentation by the Library‬ ‭Director and Assistant Director, noting the Library is one of the best town assets. Library‬ ‭Director Oti appreciates the feedback.‬ ‭Chair Conley raises an issue that the $12-13 million spent on the library renovation and‬ ‭addition 7-8 years ago doesn't count toward maintaining their state certification. Town‬ ‭Administrator Hellen calls it an outdated 110-year old statute, noting there are laws they‬ ‭have to follow to avoid the "dog house" even if residents don't realize it. Many budgets can't‬ ‭just be cut drastically.‬ ‭Recreation (Dept 630) - No questions. Chair Conley notes the Recreation Director is present‬ ‭but if they spend $700-800,000 he will bring in that much revenue if not more - he is net‬ ‭zero to the budget.‬ ‭Historical Museum (Dept 690) and Historical Commission (Dept 691) - The Town now has a‬ ‭full-time Archivist at the Museum. Town Administrator Hellen says this has been discussed‬ ‭for years, moving from part-time to full-time to support more utilization of the Museum for‬ ‭events, rentals, longer hours, etc. The Commission provides advice and guidance to the‬ ‭Archivist on things like exhibits. Their only other role is Demolition Delay hearings which‬ ‭have no real budget impact other than advertising.‬ ‭Chair Conley asks the name of the resident who often gives historical presentations,‬ ‭recalling he found the man in his own family tree. Town Administrator Hellen says it is Joe‬ ‭Landry.‬ ‭Arts and Culture (Dept 693) - This is a brand new department. Director Cory Shea was hired‬ ‭earlier in the year. Town Administrator Hellen explains her part-year salary was in his‬ ‭budget in FY24 but is now fully reflected here. He sees her as an economic development‬ ‭position, bringing in visitors to support local businesses and hotels. She will also work on‬ ‭town-wide marketing ahead of the World Cup and securing state arts grants.‬ ‭Cultural Council (Dept 695) - This $25,000 budget is the same as last year and goes to‬ ‭grants, with a state match.‬ ‭Cultural District Committee (Dept 696) - No major budget impact or discussion.‬ ‭Debt & Interest -‬ ‭i. Departments: 710 Debt Service - Principal, 750 Debt Service - Interest.‬ ‭SUMMARY: Chair Conley asks what debt is falling off the books and what is the total paid‬ ‭annually. Treasurer/Collector Kerri Bertone says the Horace Mann school is coming off, as‬ ‭well as Keller Sullivan and various DPW projects. The main remaining debts are the High‬ ‭School and Police Station. The next likely debts will be $8 million for the Remington‬ ‭Jefferson remodel and $2 million for the Horace Mann roof in FY 25-26.‬ ‭Vice Chair Riley clarifies the Remington Jefferson and Horace Mann roof would be regular‬ ‭borrowing, not debt exclusions, which are a taxpayer vote. Treasurer/Collector Kerri‬ ‭Bertone confirms. Town Administrator Hellen notes a debt exclusion is a possibility for the‬ ‭police station in a few years. Most current debts were 20-year notes but he hopes to do 10‬ ‭years for RJ and HM to minimize long-term interest even though it means higher annual‬ ‭payments.‬ ‭Chair Conley asks about the timing of the RJ renovation in the context of School Committee‬ ‭plans to expand utilization of that building. He doesn't want to see those plans interrupted.‬ ‭Town Administrator Hellen says the work can be phased over summers and vacations and‬ ‭planned by the architects and engineers to maintain building use.‬ ‭Chair Conley notes the Town's borrowing is way below the 3.5% of budget target. Town‬ ‭Administrator Hellen attributes this to major projects done in the early 2000s. However, in‬ ‭the 2028-2031 timeframe, the Keller Sullivan and Horace Mann renovations will likely be‬ ‭needed as those buildings approach 30 years old. The Parmenter and Kennedy schools are‬ ‭even older and will eventually have larger capital needs to remain viable, as indicated in the‬ ‭facilities study.‬ ‭Employee Benefits:‬ ‭i. Departments: 910 Retirement & Pension, 945 Risk Management (Liability Insurance).‬ ‭SUMMARY: Town Administrator Hellen explains the benefits budget is broken down into‬ ‭major categories. The retirement assessment is set by law, they have to pay the bill. It has‬ ‭come down slightly since the pandemic. Employee health care is up 7.6% which is bad news‬ ‭but could be much worse if not for the work of the joint town/school Insurance Advisory‬ ‭Committee (IAC) and moving to high-deductible HSA plans 5-6 years ago. This has saved‬ ‭both the Town and employees money as 2/3 of employees don't hit the deductible. The‬ ‭Town contributes a portion of the premium savings to HSAs by law.‬ ‭The IAC has helped avoid higher increases despite the Town having high loss ratios some‬ ‭years, with claims nearly equal to premiums. Until employee health improves, these‬ ‭challenges will continue. Franklin has the lowest employer/employee premium split of any‬ ‭Norfolk County town at 68/32. Most are 70/30 or higher. Changing this split would increase‬ ‭town costs. Town Administrator Hellen credits the employee unions for working‬ ‭collaboratively on health care.‬ ‭Other budget lines are smaller but based on claims experience or headcounts, such as‬ ‭retired teacher health insurance, workers comp, OPEB and unemployment. If these costs‬ ‭were not in the municipal budget they would be in the school budget but are combined due‬ ‭to the integrated operations.‬ ‭Committee Member Heather Sansoucy asks if unemployment should be increased in the‬ ‭event of an override failure and resulting layoffs. Town Administrator Hellen agrees it's an‬ ‭example of why they can't specify line item cuts yet - that would likely need to increase,‬ ‭offset by attrition or surpluses in other areas. It's a bottom line budget so some accounts‬ ‭compensate for others. This will be an area to watch after June based on school projections.‬ ‭Committee Member Heather Sansoucy asks for clarification on what "other‬ ‭post-employment benefits (OPEB)" entails. Town Administrator Hellen explains it is largely‬ ‭health insurance, a huge long-term liability. The town has an OPEB trust and strong‬ ‭management policies in place that have reduced the liability from $70 to $60 million based‬ ‭on recent actuarial reports. This applies to both town and school retirees.‬ ‭Town Administrator Hellen summarizes that if positions are reduced, it could‬ ‭counterintuitively increase certain costs in unemployment, health insurance or retirement‬ ‭as others have alluded to recently. Cuts on one side of the budget often pop up on the other‬ ‭side.‬ ‭Committee Member Heather Sansoucy feels lots of new positions were added. Town‬ ‭Administrator Hellen clarifies most were existing positions in the budget moved to separate‬ ‭cost centers for transparency as roles expanded, not 20 new spots. The only new FY24‬ ‭position cut was the sustainability coordinator at around $120,000 with benefits.‬ ‭Committee Member Lauren Nagel and Vice Chair Natalie Riley suggest for future budgets‬ ‭adding a column specifying if a role is new, fully-loaded for year one, or moved to a new cost‬ ‭center to clarify common questions. Visual cues on what portion of each cost center serves‬ ‭schools would also help, even if not precise. Town Administrator Hellen agrees these are‬ ‭great ideas to work on formatting for future years with the budget director, even if‬ ‭challenging to specify schools costs that fluctuate. He knows the 100-page budget document‬ ‭is daunting and will continue trying to illustrate key points better.‬ ‭6. Future Agenda Items‬ ‭SUMMARY: Chair Conley suggests waiting on future agenda items until more certainty after‬ ‭the override vote, likely looking at a revised budget. Town Administrator Hellen concurs‬ ‭that is the likely main topic.‬ ‭7. Adjourn‬ ‭VOTE(S):‬ ‭Subject: Motion to adjourn‬ ‭Mover: Natlie Riley‬ ‭Second: William Batchelor‬ ‭Result: Passed‬ ‭Details of the vote: Roll call vote‬ ‭George Conley - Yes‬ ‭Natalie Riley - Yes‬ ‭Heather Sansoucy - Yes‬ ‭William Batchelor - Yes‬ ‭Chuna Keophannga - Yes‬ ‭Michael Hamilton - Yes‬ ‭Lauren Nagel - Yes‬ ‭Nicole Corbosiero - Yes‬

Agenda

Finance Committee Meeting Agenda & Meeting Packet Monday, May 6, 2024 7:00 PM Meeting will be held at the Municipal Building 2nd floor, Council Chambers 355 East Central Street A NOTE TO RESIDENTS: All citizens are welcome to attend public meetings in person. To view the live meeting remotely, citizens are encouraged to watch the live stream on the Franklin Town Hall TV YouTube channel or the live broadcast on Comcast Channel 9 and Verizon Channel 29. Meetings are also archived by Franklin TV on the Franklin Town Hall TV YouTube channel and shown on repeat on Comcast Channel 9 and Verizon Channel 29 for those who miss the live meeting. To listen to the meeting remotely citizens may call-in using this number: 1-929-205-6099. This will not permit participation in the meeting. To participate in the meeting remotely citizens are able to join a Zoom Webinar using the information provided below. ➢ Zoom Webinar ID # 837 9293 2583 ➢ Zoom Webinar Link HERE (https://us02web.zoom.us/j/83792932583) ➢ Any participants who wish to speak during the webinar must enter their full name and email address when joining the webinar. ➢ All participants will be automatically muted upon joining the webinar. In order to speak, participants - who have entered full name and email address - will need to select the “Raise Hand” function to request to be unmuted. ➢ All speakers will be required to state their full name and street address before commenting. Agenda 1. Call to Order 2. Public Comments 3. Approval of Minutes a. April 17, 2024 4. “A Citizens Pledge to the Residents of Franklin” a. Pledge document b. Town Administrator/Superintendent of Schools Slideshow 5. FY25 Town Administrator Operating Budget Hearing: FY25 Town Administrator Budget Materials website a. General Government - i. Departments: 111 Town Council, 123 Town Administrator, 131 Finance Committee, 135 Comptroller, 141 Assessors, 147 Treasurer-Collector, 151 Legal, 152 Human Resources, 155 Information Technology, 161 Town Clerk, 164 Elections & Registration, 171 Conservation Commission, 176 Appeals Board (ZBA), 177 Planning & Growth Management, 184 Agricultural Commission, 192 Public Properties & Buildings, 196 Purchasing & Central Services. b. Human Services - i. Departments: 510 Board of Health, 535 Disability Commission, 541 Council on Aging, 543 Veterans Services, 535 Disability Commission. c. Culture & Recreation - i. Departments: 610 Library, 630 Recreation, 690 Historical Museum, 691 Historical Commission, 693 Arts & Culture, 695 Cultural Council, 696 Cultural District Committee. d. Debt & Interest - i. Departments: 710 Debt Service - Principal, 750 Debt Service - Interest. e. Employee Benefits: i. Departments: 910 Retirement & Pension, 945 Risk Management (Liability Insurance). 6. Future Agenda Items 7. Adjourn Exhibit 1 - April 26, 2024 An override pledge to the citizens of Franklin This document shall be adhered to by the Franklin Town Council, Finance Committee, School Committee, and municipal and school professional staff (“parties”) in the preparation and administration of the Town’s budgets in Fiscal Year 2025 (FY25) and subsequent years in an effort to maintain the level of services currently available to residents in Franklin, including offering a competitive education program through the Franklin School Department and to manage taxpayer investments in a fiscally prudent manner. 1. This document is intended to create a unified framework to present to the community for the purposes of an operational override this Spring. It is intended to present to the public a unified strategy toward budget management for the parties for the remainder of the decade. All parties recognize the shifting global political and economic dynamics will require further audibles; however, at this time, all parties agree this strategy presents the best outlook moving forward to begin to bring greater solvency to the operational budget. 2. The Town will hold a special one-day election on Tuesday, June 11, 2024 for an operational override ballot question in the amount of $6.8 million for the purposes of the general obligation costs for both municipal and school operations. 3. Override funds will be made to last at least five fiscal years, from FY2026 through FY2030. If an operational override is approved on June 11, 2024, the Town or Schools will not seek additional operational overrides during the above stated period of time. Project specific “debt exclusions'' related to town and school facilities projects will remain eligible for ballot iniatives. 4. The Town will not seek reimbursement of one-time monies reallocated to assist in balancing the FY25 budget with the passage of an override; however all parties are aware that $2 million in one-time revenues also reflects a deeper structural budget deficit in FY26 with the use of one-time revenue sources. 5. If approved on June 11, 2024, the full operational override allotment would be raised and appropriated to the following accounts for FY25: a. Account 300 Franklin Public Schools in the amount of $6.3 million for contractual obligations, special education, school transportation, health insurance costs and to assist in making up for lost revenue from dissolving grants and federal revenues, as well as restore many services cut in FY23 and FY24. b. Account 192 Expenses Facilities in the amount of $500,000 for increases to general town and school facility operating expenses. 6. Beginning in FY26 and ending in FY30, the override amount will be applied to the general fund with the following stipulations: a. No less than 60% ($4.08 million) of the full operational override amount shall be allocated to the School Department. b. The remaining 40% ($2.720 million) of the full operational override amount shall be reserved for discretionary spending to allow for flexibility in order to navigate the competing costs drivers in town and will be subject to appropriation as a part of future deliberation during the annual budget process. All parties recognize that the competition of future costs include, but are not limited to, collective bargaining, recurring capital costs, debt and interest for the Remington-Jefferson and Horace Mann projects, public infrastructure, employee health care and school operating accounts that see annual increases over 5%, including but not limited to special education and technology, as well as underfunded school and municipal departments. c. The parties agree to improve strategy, communication and coordination relative to collective bargaining, facilities management, policy decisions and other ways to create efficiencies to ensure additional fiscal cliffs and escalation of costs are mitigated in FY26 and subsequent years. d. With this general operational override, the parties pledge to begin to establish new expectations on spending to ensure the Town is able to live within its means through the end of the decade. 7. The Franklin School Committee agrees to vote on recommendations towards a School Comprehensive Plan on school consolidations and closures on May 14, 2024, which shall include closing the operations of the Gerald D. Parmenter Elementary School effective July 1, 2025 to provide savings to the Municipal and School budgets in FY26. The future use of the Parmenter site will be for the purposes of building a new Police Station, as well as for future municipal and/or school purposes, including a potential new school in the future. As the Police Station design project begins this year, the Town pledges to begin the overall design and layout of the 20.5 acre parcel with those facility considerations in mind. 8. The Town and Schools agree to protect reserves as much as possible in an effort to shield the Town’s AAA bond rating. If there is a budget deficit within these five years, the Schools agree to use surplus revolving funds as a mechanism to patch any budget deficit prior to making a request for funds to be expended from the Budget Stabilization Fund, which assists the Town in maintaining its AAA Bond Rating. 9. The Town Council recognizes its responsibility to fund unfunded mandates and other capital infrastructure in town. The Council will be required to raise water, trash and recycling and stormwater rates this legislative session in order to fund the projects that are being required via regulatory requirements from the state and federal governments, such as water and stormwater, or for inflation based increases, such as trash and recycling. 10. This agreement will be reviewed by the parties if substantial changes are made to state funding, unfunded mandates increase to a level of having a financial impact on the Town’s operating budget, or other extraordinary or unforeseen events occur. Signatories Franklin Town Council School Committee Finance Committee Town of Franklin Override/Pledge Presentation Town Council May 1, 2024 Jamie Hellen, Town Administrator Lucas Giguere, Superintendent of Schools https://www.franklinma.gov/town-budget A One-Slide Override Proposal Specifics ● Three resolutions tonight: ○ A pledge to the citizens of Franklin on a framework for spending the funds. ○ Declaration of a Special Election June 11, 2024. ○ Sets a ballot question for an $6.8 million override for FY25. ● A $6.8 Million override based on the FY24 Tax Rate* and home value is $552.82 annually. Assumptions ○ Actual bills will hit in January/April 2025. ○ Estimate bills go out in Summer/Fall 2024. ● $650,377 Avg. Single Family Value ○ December 2024 tax rate = Override + 2.5% based on FY25 SFH. ● FY24 Tax Rate is $11.79 ● FY25 Allotment Schedule: ● FY24 Current Avg Tax Bill $7,667 ○ Account 300 FPS = $6,300,000 ○ Account 192 PP&B = $500,000 ● Calculate Your Override here on DOR Override Estimate Calculator ● FY26 through FY30 Allotment Schedule (60%/40%): ○ Account 300 FPS = $4,080,000 ● *FY25 tax will also include 2.5% ○ Various Municipal = $2,720,000 FY26 - Proposed “Pledge to the citizens of Franklin, #1 ● Modeled off the Town of Norwood’s successful FY20 Override. Their materials were excellent. ○ Norwood 2020 Override Materials - Town of Norwood Archive. ○ Dozens of overrides in 2024 and 2025 could also show examples (Westford at $6.8 million; Acton at $6.6 million, Millis at $1.4 million and many, many more). ● Town Administration initiated the document; collaborated with the School Administration. ● Helps spell out and give certainly to the voters on where, and on what, the funds will be spent. ● A Pledge is not a legal requirement. However… ○ Successful overrides have at least a framework, if not very detailed specifics, on spending the funds. ○ Without a spending allocation framework, all revenues resort to the General Fund in FY26. ○ If approved tonight, I anticipate two weeks of staff work to prepare a FAQ, Flyer, Website, and a spreadsheet, account by account, of where the money is spent in FY25. ● If you expect a June 11th election, final decisions are required to be made tonight. An override pledge to the citizens of Franklin, #2 1. Section 1. Franklin Town Council, Finance Committee, School Committee. 2. Section 2. Establishes a unified framework for all 3 boards to agree. 3. Section 3. Endorses the special one-day election on Tuesday, June 11, 2024 for an operational override ballot question in the amount of $6.8 million for the purposes of the general obligation costs for both municipal and school operations. a. Sets a compromise figure based on professional input, public feedback and statewide historical context. b. What does this accomplish? A successful override in this amount will: i. Rebuild the foundation of the school operational budget and to allow them to strategically plan for the future. ii. Restores Public Property & Buildings (PPB) expense capacity after the last two years of dreaded high inflation. c. The Town will pay for the election which is estimated at $30,000. How? i. Cobble together small surplus accounts. It's a manageable number and we’ll do a year-end transfer on June 26th. 4. Section 4. Override funds will be made to last at least five fiscal years, from FY 2026 through FY 2030. Project specific “debt exclusions'' related to town and school facilities projects will remain eligible for ballot initiatives. a. EG - This provision seeks to provide assurance to residents on fixed incomes that the Town will not seek additional overrides during this period. 5. Section 5. The Town will not seek reimbursement of one-time monies reallocated to assist in balancing the FY25 budget; however all parties are aware that $2 million in one-time revenues also reflects a deeper structural budget deficit in FY26. a. The savings from the closure of Parmenter and Kennedy in FY26 will cut HALF of the structural one-time revenue deficit from Municipal Facilities costs savings; with additional significant economies of scale from the Schools, will cut the ENTIRE structural deficit from one-time revenues in FY26! Why $6.3 million for FPS in FY25? Account 300 Franklin Public Schools will see a $6.3 million increase in the following areas: SCHOOL DEPT HEALTH CARE EXP $623,000 TRANSPORTATION (YELLOW BUS) $107,240 MENTAL HEALTH SUPPORTS $497,000 OUT OF DISTRICT TUITION $2,200,000 SPECIALIZED TRANSPORTATION $288,000 MAINTAIN STAFFING AT CURRENT LEVELS $2,100,000 K-5 CLASS SIZE $375,000 MIDDLE SCHOOL EXTRA-CURRICULAR PROGRAMS $110,000 Why $500,000 For PPB Expenses in FY25? ● Account 192 - Public Property & Buildings (PPB) or “Facilities”. ● Since the pandemic, this the hardest financial hit from inflation of any department. ● FY23 through FY25 has gone up $1 million in expense capacity for basic utilities: ○ water/sewer; gas; propane; electricity; fuel; plumbing, electrical and carpentry parts for repairs; labor and contractors; stormwater, and so forth, etc. ● Many accounts have been cut or wiped out due to budget stress and request aims to restore those cuts. ● FY23 and FY24 saw Facilities expenses accounts run out of funds in April/May. ● We proposes the following expense accounts: Account # Purpose Amount 523010 Water $100,000.00 524010 Building Maintenance $150,000.00 524030 Maintenance of Equipment $150,000.00 524090 Heating Service Repairs $50,000.00 524112 Fire system Maintenance $50,000.00 Recent Account 192 PPB Expense History Fiscal Year Expense Amount Previous FY +/- Notes FY20 July 1, 2019-June 30, 2020 $4,570,475 N/A March 2020 pandemic. Actual FY21 July 1, 2020-June 30,2021 $4,109,949 ($460,526) The pandemic hits. Actual FY22 July 1, 2021-June 30,2022 $4,426,236 $316,287 Not back to pre-pandemic levels Actual FY23 July 1, 2022-June 30,2023 $4,925,035 $498,799 Inflation hits. Final FY24 July 1, 2023-June 30,2024 $5,172,200 $247,165 Inflation continues Appropriated FY25 $5,384,040 $211,840 July 1, 2024-June 30,2025 Proposed Future Inflation? An override pledge to the citizens of Franklin, #3 1. Section 6. Lays out the allocation of funds in FY26 through FY30: a. 60% ($4.08 million) of the full operational override amount shall be allocated to the FPS (Account 300). i. This is an 7% increase of the Account 300’s portion of the budget right now (53%)! ii. A reminder, 53% is Account 300 - 15% are in Municipal accounts. b. The remaining 40% ($2.720 million) of the full operational override amount shall be reserved for discretionary spending to allow for flexibility in order to navigate the competing costs drivers in town and will be subject to appropriation as a part of future deliberation during the annual budget process. All parties recognize that the competition of future costs include, but are not limited to, collective bargaining, recurring capital costs, debt and interest for the Remington-Jefferson and Horace Mann projects, public infrastructure, employee health care and school operating accounts that see annual increases over 5%, including but not limited to special education and technology, as well as underfunded school and municipal departments. i. THESE ARE LARGELY SCHOOL COSTS!!! ii. The cost of service is not necessarily embedded in Account 300! c. The parties agree to improve strategy, communication and coordination relative to collective bargaining, facilities management, policy decisions and other ways to create efficiencies to ensure additional fiscal cliffs and escalation of costs are mitigated in FY26 and subsequent years. Why 40%? ● Reminder: There is $20.6 million of schools related costs in the municipal side of the budget. ○ This number can fluctuate a great deal each year - most common range is $18-$22 million a year. ● If an override is to pass, a unified community is preferred. When the impression is one dept gets the entire pie, trust and support dissolves and will jeopardize the passage of an override. ● FY26 Expects to see some major school related costs in the municipal budget accounts. ● Of the 40% discretionary, the schools will likely see a good share of it in the form of municipal accounts, examples given: ○ Facilities PPB $500,000 in FY25 ○ Debt & Interest (A $10 million borrow for Remington-Jefferson Remodel and Horace Mann Roof) ○ Public Works costs for school/town property maintenance, fleet maintenance, fuel and much more ○ Operating budget costs that see unforeseen cost spikes. ○ Employee health care affects both the town and school budgets ■ The Town negotiates employee health care through and IAC which includes FEA. ○ Potentially, collective bargaining ■ FY26 sees new contracts for the teachers, police patrol, police sergeants, public works, maintenance and trades, custodians and librarians. ■ COLA Equity and Coordination will be an important policy decision to ensure avoiding future budget deficits. ● These accounts, and many more, have seen increases well over 2.5%, often times due to trends in the Schools. Example Model Given: An Estimated Breakdown of the 40% Account Department Notes Amount 192 PPB (Facilities) Expense Budget (like FY25) $500,000 Estimated Debt & Interest for Remington-Jefferson 710 &750 Debt & Interest $1,250,000 Remodel and Horace Mann Roof) 422 Public Works Expense Budget $250,000 Various Various Collective Bargaining (safety net) $360,000 Personnel Reoccurring School/Town Capital (Police, Fire, Various Various $360,000 Schools and Technology) TOTAL: $2,720,000 but are not limited to employee health care and school operating accounts that see annual increases over 5%, including but not limited to special education and technology, as well as underfunded school and municipal departments. An override pledge to the citizens of Franklin, #4 1. Section 7. The Franklin School Committee agrees to vote on the School Comprehensive Plan May 14, 2024, and close the Gerald D. Parmenter Elementary School effective July 1, 2025. The future use of the Parmenter site will be for the purposes of building a new Police Station, as well as for future municipal and/or school purposes, including a potential new school in the future. a. Why is this section important? i. Saves millions for land for the police station, plus interest on borrowing. ii. Delineates the area for a potential new Middle or Elementary School in 2030, if needed, of another municipal or school use. b. Perfect timing as Police Station OPM is being hired next month and they can get to work. 2. Section 8. The Town and Schools agree to have a unified goal of protecting the Town’s AAA Bond Rating a. A way to jointly save operating budget capacity (a piece of the pie) from higher interest costs. 3. Section 9. Commits to the required utility increases in water, trash removal and stormwater. 4. Section 10. This agreement will be reviewed by the parties if substantial changes are made to state funding, unfunded mandates increase to a level of having a financial impact on the Town’s operating budget, or other extraordinary or unforeseen events occur. School Comprehensive Facilities Plan ● I offer my ecstatic and enthusiastic support! ● The redistricting should not be a complete shock. ○ There has been $119,000 spent on studies over the past five years; $28,000 was federal ARPA. ○ Public discussions on school facilities and declining enrollment have gone on for over a decade. ○ The last five years have had extensive community engagement; began in 2019 w/ a comprehensive study 2020. ○ School certainty: parents for the next decade, if not longer, will know where their children will go to school and will streamlines expenses and create economies of scale. ● Enormous respect an kudos to Chair Callaghan, the current School Committee, Lucas, Tina, Bob Dutch, Mike D’Angelo and to the entire school staff for their leadership on this issue! ● Combined, financially: This multi-pronged, holistic approach is exactly what many have advocated for! ○ People seeking “bold” change and action? This is your moment to shine! What actions do we need to do as a community, right now?! ● May 1, 2024 - Town Council approval of the three resolutions: ○ An override pledge to the citizens of Franklin. ○ Set the special election for June 11. ○ Set the ballot question at $6.8 million. ○ Staff will need time to get educational materials together.. Hopefully 1-2 weeks. ○ The community can begin its debate - 41 days from tonight. ● May 6, 8, 15 - Watch the Finance Committee Hearings on May 6 for General Government; May 8 Public Safety, DPW, Inspections; May 15 Public Education. ● May 14, 2024 - School Committee - Vote on a recommendation of the School Comprehensive Facilities Plan. ● May 22, 23 - Watch the Town Council hearings. Approval of the Town Administrator FY25 budget and numerous subsequent required budgetary legislation for action. ○ EG - municipal revolving funds, one-time revenue appropriations (free cash/mecc stab.), town clerk salary; community preservation; borrowing authorization for remington-jefferson/horace mann; borrowing house cleaning; new stabilization accounts for snow and ice and property acquisition; and several more… ● June 11, 2024 - Special election on a $6.8 million override. ● June 26, 2024 - Town Council reconsider the FY25 budget based on override results. ● Summer/Fall 2024 - Town and School Administrations will begin to collaborate on FY26 forecasts, much more specifics. ○ 2025-26 - Establish a School Building Committee to build community capacity for a future MSBA process. Why is this so important? ● A once-in-a-lifetime, generational, historic opportunity to enact a set of policy decisions that rebuilds the entire foundation of the Franklin Public School budget and, thus, the entire town budget! ● The professional staff have done their job: we’ve teed up final decisions for the Town Council and School Committee to take bold action to unify the community with a balanced override proposal that affects every single public service. ● The Town and School leadership shows an unprecedented level of collaboration, compromise and opportunity for millions in structural savings to the taxpayer. ● The time has come to let the citizens speak on an override! ○ This has been a decade-plus of public debate on the policy issues before the community. ■ Susan Rohback (“We should have been doing smaller overrides for many years”); and ■ Camille Bernstein (“We always heard we don’t do overrides in Franklin”) ■ These (paraphrased) comments and narratives are accurate! ○ The School Committee last requested an override in 2010. ○ The community began the override conversation and the school facilities analysis in 2019. ● The costs of inaction are reeling their ugly head. If we continue to delay these decisions, the financial projections will continue to darken. The community waited for the edge of the cliff; we’re now looking over… Closing thoughts ● Public Feedback: ○ I truly respect and appreciate everyone's emails, ideas, thoughts, comments, feedback, letters, stopping in my office, or just giving me feedback when I am out and about through the community. ○ I fully respect everyone’s reaction to such a large amount of change. ○ Not everyone will be happy. I am truly very sorry for this, but this is what it takes to create a solvent and sustainable budget the Franklin School budget for the short and long term future. ● Please thank your volunteers! ○ The public has to remember the Town Council, School Committee and Fin Comm are volunteers! ○ Overrides and school closures are the HARDEST and most EMOTIONAL policy decisions local officials have to make! ○ Please thank all of them for their leadership when making really hard community decisions. END

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