Canton, Massachusetts · Saved source text
FINCOM 20220223 Minutes
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Canton Finance Committee Minutes Voted on: 3/9/22 801 Washington Street Vote: 6-0-2 Canton, MA 02021 Meeting Minutes February 23, 2022 Finance Committee Members Present: Dan Cole, Tom Emery, Karen Foley, Emilio Mauro, Tim McKenna, and Cindy Thomas. Finance Committee Members Absent: Dave Clough and Reuki Schutt. Guests Present: Charlie Aspinwall, Town Administrator Derek Folan, Superintendent of Schools, School District Administration Ellen Jones, Finance Committee Recording Secretary Stephen Marshall, Director of Finance and Operations, School District Administration Michelle Resendes, Business Manager, Blue Hills Regional Technical School Jill Rosetti, Superintendent -Director, Blue Hills Regional Technical School Randy Scollins, Finance Director Maureen Sullivan, Clerk, Canton School Committee Call Meeting to Order: Chair McKenna called the virtual meeting to order at 7:04 p.m. School and Municipal Budget Targets for FY23 — Discussion and Vote - Randy Scollins Mr. Scollins reported that he had spoken to Mr. Arafat, the Veterans' Agent, and the Governor's proposed State Aid budget will be a reduction of $5,577 to the General Government aid that the Town receives. Mr. Arafat , VSO, reported that the state will be issuing a correction of the Veteran's Benefits account that should result in an increase of approximately $50,000 to $80,000. Mr. Scollins shared on the Zoom meeting screen a 2-page document entitled "Guideline Used to Establish Operating Budget Targets". (This document has been made a part of these minutes.) Page 1 showed the typical formula used for determining a guideline for the Municipal and School budget targets. Page 2 was a modified version indicating $420,000 of FY23 State Aid School increase being shifted from the School Department to Municipal Budgets. The following are some of the highlights of the budget target discussion among town and school officials and the Finance Committee. • $112,697,097- The total FY23 general revenue estimate voted by the Revenue Committee. • Under the typical guideline used to establish operating budget targets, the total FY23 general revenue estimate is reduced by various items such as FY23 State Aid, FY22 base budgets for the School and Municipal departments, and FY23 Fixed Costs, Stale and County Charges and FY23 School and Municipal cash capital allocations resulted in a total of $109,793.776 reduction to FY23 revenue to determine incremental new funds, excluding State Aid increases, for School and Municipal Budgets for FY23. The New Funding for the FY23 budget excluding State Aid Change totaled $2,903,321. • The 66.93% School Department share of $2,903,321 is $1,943,091. Adding this to the FY22 school base budget and the FY23 State Aid School increase results in an FY23 School Budget Target of $51,078,405. • The 33.07% Municipal Departments share of $2,903,321 is $960,230. Adding this to the FY22 municipal base budget and the current decrease of the $5,588 General Government state aid decrease results in an FY23 Municipal Budget Target of $24,572,680. Mr. Scollins reported that the State Aid came in weighted to the School Department side of aid. If this is lined up with the target numbers with the original requested budget, the School Department would have an approximately $600,000 surplus. The $24,672,680 Municipal budget target would have an approximately $658,000 deficit to cover all of its FY23 budget requests. Mr. Scollins stated that over a few weeks preceding the Finance Meeting, discussions took place among the Finance Director, municipal officials, the School Superintendent and the School Committee. At Mr. Scollins suggestion the BFINCOM 20220223 RS DC.docx Page 1 of 7 2/26/22
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School Department endorsed a $420,000 shift in the State Aid from the School Department to Municipal Departments. This was done to even out the State Aid between the School and Municipal Departments. With a shift of $420,000 of state aid from the School Department to the Municipal Departments would result in the school having a surplus of approximately $233,000 for FY23 to accommodate other original budget requests that had been previously cut by the School Committee. The Municipal Departments would be able to fund all but approximately $130,000 of its FY23 budget requests. The Town is pleased with the shift of $420,000 and did not expect to be able to fully fund most of the FY23 budget requests. Superintendent Folan thanked the Finance Committee for being part of the process. The School Department and School Committee assessed all of their needs in developing the budget with the greatest impact for student achievement. They worked closely with the School Finance Sub -Committee with input from Principals and School administrators. The Sub -Committee had three budget reviews all held in public sessions. Ms. Moran, who headed the School Finance Sub -Committee, thanked the Town for their incredibly generous support for the Schools during the unprecedented pandemic costs they incurred. The School Committee is happy to pay back that generosity to the Town and it is the appropriate action to take. Mr. Marshall, Director of Finance and Operations for the School Department, stated that the $51,059,000 was $20.000 apart from their original budget requests once reductions were made. Even with the $20,000 difference their FY23 budget request would still mean a 6% increase for the School Department. He was appreciative of the support from Town officials over the past 18 months to two years. Mr. Marshall fully supports the modified FY23 School Budget Target of $50,658,405 as recommended by Mr. Scollins. Mr. Aspinwall echoed the sentiments of previous speakers in that it has been a great working relationship among all Town and School officials. In response to Mr. Mauro's question if the shift of state aid from the School Department to the Municipal Departments carried with it any restrictions as to how it could be used and allocated among the Municipal Departments, Mr. Scollins stated the Cherry Sheet aid does not restrict the Town as to how the Stale Aid could be spent. Although the School Ch. 70 Aid is based on a formula to best help the schools, the amount is allowed to be used by a municipality in any legal manner they decide. Ms. Thomas stated that this level of collaboration was not new and that all departments try work for the good of all of the Town. There were many collaborations behind the scenes by key peoples in Administration with the goal to make this possible. In response to Mr. Cole's inquiry regarding American Rescue Plan Act (ARPA) funding, Mr. Scollins replied that the Town would be receiving just shy of $7 million in ARPA funding and that so far only $80,000 has been committed by the Select Board to the Board of Health. Within the $7 million there are several school requests. ARPA funds is one- time funding. Chair McKenna appreciated all the work done on the School side. Chair McKenna inquired about the addition of the $420,000 in State Aid to the Municipal departments and what the new sharing ratio of funds for the schools and funds for the town departments would be after this shift of new funding for FY23. Mr. Scollins believes it is close to 31 % for the Town and 69% for the School. Mr. Marshall confirmed that the $1,342,662 of FY23 School aid increase represented year 3 of a 5-year Ch. 70 formula and that there are safeguards in place with the formula to prevent a large drop in aid in future years. He expects the Ch. 70 state aid to be fairly level going forward and does not expect any drastic reductions. A motion made by Ms. Thomas to approve that the School Budget Target for FY23 be set at $50,658,405 and the Municipal Budget Target for FY23 be set at $24,992,680 was seconded by Mr. Mauro. Roll Call Vote: Mr. Mauro Aye Ms. Foley Aye Mr. Emery Aye Mr. Cole Aye Ms. Thomas Aye Mr. McKenna Aye The motion to set the School and Municipal Budget Targets for FY23 passed 6-0.0. BFINCOM 20220223 RS DC.docx Page 2 of 7 2/26/22