1/30/2020 FINANCE COMMITTEE Minutes

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4 Finance Committee Minutes January 30, 2020 Rodney C. Collins, Town Manager—FY2021 Budget Discussions: (continued) Discussion followed with respect to the possibility of creating an Emergency Fund similar to the Reserve Fund authorized by the Finance Committee as an offset to fund unanticipated expenses. In lieu of creating an Emergency Fund, Dawn Thayer, Finance Director recommended the following options; authorize an additional $100,000 to the Finance Committee Reserve Fund as a separate line item, appropriate the use of Free Cash at a Special Town Meeting or the Transfer of Year End Funds. In review of the Information Technology budget which reflects a significant investment in cyber security, there was a question regarding the areas in the IT budget that may be reduced to offset the increase. The update in cyber security has been identified and justified as a priority given the risks. Town Meeting,the legislative body has the ultimate decision to fund this line item or not. Historically,the Town has been managed very conservatively. All budgets are noted to begin with a zero balance. Previous years are not utilized with a certain percentage. To alleviate the encumbrance of funds, end of year expenses are highly discouraged. Unpaid bills from vendors are required to be placed on the Town Meeting warrant to authorize payment. The matter of wastewater was revisited during discussions with Town Manager Collins. It was noted $840,000 is required to complete the design of the wastewater treatment plant. The sum of $1,640,000 is required to complete the design and engineering for the collection system. It was the recommendation of the Town Manager's Financial Team to consider the $2.4 million collectively as a debt exclusion. The Town would then borrow the funds only as needed, and avoid the unnecessary obligation of funds. There is flexibility and it does not limit specific amounts to specific projects. No debt is paid until the funds are borrowed. It was suggested that a pre-town meeting or forum be scheduled to further inform the public. The deadline for articles to be placed on the May Annual and Special Town Meeting Warrants is Monday, February 10, 2020. Additional questions may be forwarded concurrently by the Chair to the Town Manager, Assistant Town Manager and Administrative Assistant. In closing, there was a question regarding potential implications to the budget with the cell tower settlement. It was disclosed there is no impact to the FY2021 budget for the cell tower. In moving forward, the Town would be receiving funds and derive the benefit of communication usage for public safety. The Legal and Engineering Budget is a projection that has increased to cover unknown costs. When asked of the Transfer Station and the increased costs for the disposal of solid waste it is likely a recommendation would be made to the Board of Selectmen to augment sticker fees. The contract increase was clearly unanticipated, and an adjustment would be necessary if the Town choses to not subsidize the Transfer Station. The increase of$93.75 per ton for solid waste is firm for the remainder of the calendar year.