February 28, 2024, Finance Committee Meeting - Virtual Meeting… — 61ef542748b9180c06

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Canton Finance Committee Minutes Voted on: 3/6/24
801 Washington Street Vote: 7-0-0
Canton, MA 02021

Meeting Minutes
February 28, 2024

Finance Committee Members Present: Dan Cole, Karen Foley, Emilio Mauro, Tim McKenna, Maureen Menconi,
Kristin Mirliani, Reuki Schutt and Cindy Thomas.

Finance Committee Members Absent: Dave Clough.

Guests Present:
Ellen Jones, Recording Secretary
Helen Rafferty, Police Chief
Randy Scollins, Finance Director
Mike Trotta, DPW Superintendent

Call Meeting to Order: Ms. Thomas called the virtual Zoom Finance Committee meeting to order at 7:00 p.m.

Review of the Agenda – Ms. Thomas reviewed the agenda items that included FY25 budget discussions with Police
Chief Helen Rafferty and DPW Superintendent Mike Trotta as well as discussion and voting on several Annual Town
Meeting (ATM) Articles.

Discussion - FY25 Municipal Budget Requests

#210 Police Department and #292 Animal Control – Helena Rafferty, Police Department

There was a less than $2,000 increase for the Animal Control budget which relates to contractual obligations.

The following are the highlights of Chief Rafferty’s FY25 budget requests for the Police Department:
• $90,800 - Request of new Traffic Sergeant for a newly created Traffic Unit – A sergeant would oversee this
unit. This unit will help address traffic concerns, hazards, vehicle crashes and will respond to homes to help
with the installation of child safety seats. There is currently one Sergeant assigned to traffic control two days
per week, another Sergeant assigned to the Detective Unit as a Detective Sergeant but is also a prosecutor
two days per week. By adding a third Sergeant the Chief would be able to have one additional full-time person.
The Detective Sergeant could be full-time and the Traffic Sergeant would be full-time and the additional
Sergeant would be able to make up the shifts that are needed. Chief Rafferty also stated that with body
cameras soon to be implemented it takes 1.5 full-time equivalents for 40 hours to maintain all of the camera
footage.
• $244,816 – Creation of four new Patrol Officer positions in the Town. It is the Chief’s goal to have School
Resource Officers (SROs) in every school. Two of the four officers would be assigned to the other two
elementary schools. Currently one SRO at the Kennedy travels to all three elementary schools. There is an
SRO at the Kennedy Elementary School, one at Canton High School and one full-time at the Blue Hills
Regional Technical School. The Chief would prefer to have an officer assigned to each elementary school.
The other two officers of the four being requested would cut down on the overtime budget line item.

Ms. Mirliani inquired about the SROs being assigned to each elementary school and if this was a School Committee
request. Superintendent Folan and the School Committee is in support of the SRO program and would welcome an
elementary SRO at each school.

Mr. Mauro inquired with regard to the Patrol Officers salaries and if there would be additional costs associated to the
hiring of four new positions such as equipment or patrol vehicles or any increase to the capital budget. Chief Rafferty
stated the badges would change if a patrolman was made into a sergeant. The Traffic Sergeant would not be taking
home a patrol car. Chief Rafferty stated the Police Department is currently down three people with two more being
added to that. There would be some costs associated with filling these vacancies.

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Ms. Thomas inquired about the role of the SROs. Chief Rafferty stated that the role is to provide more than just on-
site security. Officer Kascavitch is the current SRO assigned to the elementary schools who is beloved by all three
principals. He is a resource for teachers, for parents that may have concerns about bullying and for the principals. It
is her opinion that it is good for a police officer to be seen in a different light.

• $55,500 increase from $114,500 to $170,000 to the regular Overtime Salary budget line item. This line item
is used for various types of overtime such as investigations, SROs coverage at games and coverage for events
held by other Municipal Departments (road races).
• $175,000 increase from $100,000 to $275,000 to the Training Overtime budget line item. The department has
numerous mandated training that causes additional overtime costs. The Police Department Audit may result
in a suggestion of training beneficial to the department which may also cause overtime costs.
• $100,000 increase from $309,000 to $409,000 for the Shift Overtime budget line item. Any officer who is out
that is covered by another officer may incur overtime costs that are paid out of the Shift Overtime budget.
Chief Rafferty believes that if a few new officers are approved this budget line item increase would not be
needed. Also there are a two grant reports that the department is looking for reimbursement. This may bring
back $120,000 to the budget.

Mr. McKenna inquired about the body cameras. Chief Rafferty stated that all of the staff has taken 8-hour training on
the body cameras. This training was taught by the Police Chief of Winthrop who currently uses body cameras. It has
been confirmed that it is 1.5 FTE per 40 hours. The camera footage needs to be reviewed, redacted, maintained, and
organized for retention. The Canton Police Department is currently on a pilot program with the cameras. The Chief
has had a few FOIA (Freedom of Information Act) requests. Mr. Jutras, MIS Manager, is currently working with
Sergeant Digiampetro regarding the body cameras during the pilot program.

Mr. Mauro inquired about Shift Overtime and if the lack of staffing was causing these expenses. Mr. Mauro also inquired
with the distribution of officers ages and tiers and the Chief’s anticipation of retirements, how much more of a crisis is
the hiring of additional staff. Chief Rafferty estimates that there may be 5-7 retirements in the next couple of years.

• $100,000 increase from $129,489 to $229,489 for Overtime Replacement. This budget line item is to cover
ILOD (Injury in the Lien of Duty, military replacement and attrition).
• $31,000 increase from $150,000 to $181,000 for contractual stipends. Chief Raffety stated that this line item
has been underfunded and needs to be increased to meet contractual obligations.
• $4,500 increase from $20,500 to $25,000 for motor vehicle repairs due to inflation.
• $5,000 increase from $12,000 to $17,000 for operational supplies based on inflation.
• $3,200 increase from $4,800 to $8,000 for equipment for personnel. The Chief anticipates five new officers
that will have to be outfitted for the academy and for regular patrol.
• $8,000 increase from $12,000 to $20,000 for the Training Program budget line item. This increase will pay
for the academy tuition and field training cost upon graduation.
• $4,500 increase from $7,500 to $12,000 for Dues and Memberships. The Police Department has to pay for
numerous dues to ensure the Department is in compliance.

#400, 410, 420, 425, 426, 427, 491, 492, Water & Sewer Enterprise and Snow & Ice FY25 Budget Requests –
Mike Trotta, DPW Superintendent

The FY25 overall budget increase for the Department of Public Works is an $18,700 increase on just over a $3 million
budget. Mr. Trotta is asking for 0.1% increase to a budget of a little over $3 million.

The following are some of the highlights of Mr. Trotta’s FY25 operating budget requests:
• #400 - Mr. Trotta is requesting a new position for the Engineering/GIS division with a portion (40%) of that
salary being charged to the DPW budget ($28,250). The remainder of the salary for this position will be
charged 30% to the Water Enterprise budget and 30% the Sewer Enterprise budget.
• #410 - Highway Maintenance – A total decrease of $23,452. This is due to the transfer of a position that was
budgeted in the wrong department and should be budgeted under the Cemetery Division (decrease of
$72,700) and a Lease for new space at the Draper property to garage equipment (increase of $49,200).
• #425 – There is no change to the FY25 budget for Street Signs.
• #426 – Gas & Oil – Increase of $4,000 based on the increased cost of diesel.
• #427 – Highway Equipment – An increase of $17,000 for Repair & Equipment due to increased costs for
parts and equipment. A decrease in payroll of $14,200 due to a recent retirement of an employee that has
been replaced with an employee at a lower rate of pay.
• #491 – Cemetery – An increase of $7,079 due to a transfer of an employee from Highway Maintenance to
the Cemetery Division.
• #492 – There is no change to the FY25 budget for the Tree Department.

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Mr. Mauro inquired if there were any meaningful changes to the budget due to the separation of the Central
Maintenance Department from the Department of Public Works. Mr. Trotta reported that there were no significant
changes. All of the accounts (electricity, heating oil and building maintenance supplies) transferred to the new Central
Maintenance Department budget for FY25 were reviewed by Mr. Scollins, Town Administrator Doody and Mr. Trotta
for the FY24 budget in preparation of it becoming a separate department with its own budget.

Mr. McKenna inquired about the general state of the roads. Mr. Trotta stated that Mr. Scollins and Mr. Doody are
proposing a local match to the Ch. 90 funds the Town receives in the amount of $1 million. Mr. Trotta provided basic
information regarding Ch. 90. Ch. 90 is based on the amount of state road inventory in the Town of Canton or 95.7
miles of 103 miles of public roads. The 95.7 miles is on the Ch. 90 inventory list which gives the Town $770,000 to
$780,000 per year in Ch. 90 funds. This amount has been constant for 10 or more years. Ten years ago the cost of
asphalt was $65.70 per ton. This year, ten years later, based on the same $770,000 the cost of asphalt is $105.00 per
ton. Ten years ago if the Town were to overlay a road (no curbs, no sidewalks) the cost would be $165,000 per mile
and the Town could pave approximately 5 miles. Today, based on the $105.00 per ton that same mile costs $275,000
per mile or the Town could barely pave three miles. Ten years ago the back-log was $22-23 million. Present day the
back-log is approximately $19.5-20 million. At three town meetings there were appropriations of funds to match Ch. 90
funds which has helped with the inventory. Voting funds at ATM helps the DPW get ahead in the busy seaon for
ordering supplies and asphalt. Becauset the Dedham Street interchange project has been completed Mr. Trotta is
hoping to pave Dedham Street. Sherman Street is scheduled for water main replacements and it is Mr. Trotta’s hope
that the Capital Planning Committee will recommend road replacement once the water mains have been replaced.

Ms. Thomas inquired about the level of assessments and coordination of utilities under roads before the streets are
repaved. Mr. Trotta stated they try very hard to coordinate with the utilities. They have a 5-year water plan and an
assessment of what roads get paved if the water mains have to be done.

Mr. Mauro inquired if the road assessments are done in alignment with gas or electric utilities. Mr. Trotta stated that
the gas company is regulated by DPU so the Town does not have much control over that utility. The Town provides to
them a 3-4 year look ahead list. The utility companies have improved a great deal with their coordination efforts. The
Town shares schedules with the utility groups. He stated that the quality of their patchwork has improved.

With regard to the Snow & Ice Budget, there is no FY25 budget increase being requested for the $650,500 budget.
Currently, the balance at the beginning of February was approximately $250,000. The DPW sanded twice so far in
FY25. Mr. Scollins stated that if the Town were to increase the Snow & Ice budget you cannot reduce it. The Town
would be committed to that level going forward.

Water & Sewer FY25 Operating Budgets

The debt service and MWRA Assessments make up the largest portion of the Water & Sewer Enterprise budgets. Mr.
Scollins recently received the preliminary MWRA assessments for FY25 - $2,751,85 (an increase of $262,309) for the
MWRA Assessment for the Water Enterprise Fund and $5,191,978 (an increase of $98,364) for the MWRA assessment
for the Sewer Enterprise Fund. The debt is amortizing and is decreasing by $228,000 for the Water Enterprise fund.
This includes the assumptions of debt in the pipeline for water. The Town will be soon going out for borrowing for the
debt projects that are ready to be borrowed for. The estimates have been included for that for next year. The $228,000
reduction is even with the anticipated debt service for next year.

The Assessment for the Sewer Enterprise will increase $98,364 but has been staying within a good range for the past
3-4 years. The Sewer debt service has stayed flat for the last few years. The increase for FY25 sewer debt service is
$39,652. Most of the new debt that the Town will take on for the Sewer Enterprise is MWRA related and is funded at
0% interest. Mr. Trotta recently secured a $1.4 million award for MWRA to do Inflow and Infiltration (I&I) work. Of the
$1.4 million approximately $1.075 million of that was a grant. The remainder of the $1.4 million is approximately
$350,000 and is a no interest loan for ten years. The Town will receive these funds within the next week or so.

Salaries and Expenses for the Water Enterprise Fund – Mr. Trotta is asking for an increase of $170,000 in salaries and
wages. Approximately $22,000 of that is for the share of the GIS position. The other funds are for payment of overtime
and to pay for police details. There is $140,000 being budgeted for overtime and police costs. With regard to Other
Expenses for the Water Enterprise there is $65,000 in expenses for electricity and increase for chemicals expenses.

Salaries and Expenses for the Sewer Enterprise Fund – The salary increase is for the GIS position. With regard to
Other Expenses The $88,8000 is the result of stormwater expenses that the Town is starting to incur. This is for
additional testing and renting of equipment to start cleaning some of the outfalls that the Town is now having to address.

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Overall there is a 3.1% budget increase for FY25 for the Water Enterprise Fund and a 4.6% budget increase for FY25
for the Sewer Enterprise Fund for FY25.

Mr. Mauro inquired about the amount of water the Town uses from the MWRA in comparison to water usage from local
Town wells and if tha usage has remained stable from previous years. Mr. Trotta responded that the Town uses 55%
from MWRA and 45% from local wells. He also stated that the MWRA Assessment is based on how much water the
Town uses from the MWRA. Sewer Assessment is calculated differently. MWRA considers the Town’s employment
levels, industrial demand and water usage. MWRA meters in 3-4 locations and then comes up with a formula for the
sewer assessment, it is not just based on water usage.

Article 7 Motion 1 – Set Salaries of Elected Officers – The Town Clerk is the only full-time elected official that is paid
a salary. The amount being recommended for FY25 is $107,224.03 which is a 3% increase over the FY24 salary.

A motion made by Ms. Schutt that the salary and compensation for the Town Clerk be fixed at $107,224.03 for
the 2025 Fiscal Year was seconded by Mr. Mauro.

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 8 – Pay Bills of Prior Fiscal Year- At the time of the meeting there were no bills to pay from a prior year.

A motion made by Ms. Schutt that the subject matter of Article 8 be indefinitely postponed was seconded by
Mr. Mauro.

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 9 – Adjust Fiscal ’24 Accounts- At the time of the meeting there were no Fiscal ’24 accounts to adjust.

A motion made by Ms. Schutt that the subject matter of Article 9 be indefinitely postponed was seconded by
Mr. Mauro.

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 10 – Authorize Certain Revolving Funds

Increases to the FY25 Spending Limits are being recommended for the following three revolving funds::

#130 – Recreation Revolving Fund will be increasing from $500,000 to $650,000. Currently there is over $700,000 in
the fund.
#140 – COA Revolving Fund will be increasing from $50,000 to $150,000. The current balance of this fund is
approximately $250,000. The Elder and Human Services would like to have the flexibility if they need to use this fund
for programs. The Elder and Human Services continues to receive donations.

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#142 – Paul Revere Heritage Site Rolling Mill and Open Space Fund will be increasing from $120,000 to $250,000.
The fund is approaching a balance of $250,000. This Revolving Fund is funded with monthly rent that is collected from
the Northern Spy Restaurant. Some of these funds may be used next year for construction related to the Museum.

The revolving funds do not require appropriation but the spending limit amounts need to be approved annually at ATM.

A motion made by Ms. Schutt that the Revolving Fund FY25 Spending Limits be recommended as follows was
seconded by Mr. Mauro.

Revolving
Fund # Name of Revolving Fund FY25 Spending Limit

110 Veteran’s Services Special Revenues $100,000
119 Library Revolving Fund $75,000
130 Recreation Revolving Fund $650,000
134 Pequitside Farm Rentals $50,000

135 Greenlodge Street Parking Fees $100,000
136 Beautification Fund $10,000

137 Animal Control Special Revenues $50,000
138 Library Building Rentals $50,000
140 COA Revolving Fund $150,000

141 Board of Health Special Revenue $50,000
Paul Revere Heritage Site Rolling
142 Mill and Open Space Fund $250,000
145 Traffic Mitigation Fund $50,000
Paul Revere Heritage Site Museum
152 Fund $100,000

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 13 – Appropriation to Supplement the Commonwealth’s Chapter 90 Program

Mr. Scollins screen shared a chart entitled Cash Reserve Balances (see meeting documents). The Total General Fund
Reserves (comprised of the General Fund’s Undesignated Fund Balance also known as Free Cash plus Stabilization
Funds plus Overlay Reserves) as of 7/1/23 is $24.9 million. This represents 20.31% of FY 24 General Fund Expenses.
The Town’s target for the General Fund Reserves is 15%. The maximum free cash available to appropriate is
$6,527,516.21 to maintain the General Fund Reserves of 15%.

Mr. Scollins also screen shared a chart of Proposed Free Cash Appropriations for the May 2024 ATM as follows:

$1,619,700.00 Capital – Public Safety Network System Communications Replacement
1,600,000.00 SPED Reserve (Article 18)
1,000,000.00 Capital Stabilization – Galvin Middle School (Article 19)
1,000,000.00 Ch. 90 Supplement (Article 13)
1,000,000.00 New Capital Stabilization Fund – 1860 Washington St. (former St. Gerard’s Property) (Article 20)
153,936.97 Opioid Fund (Article 20)
50,000.00 Towards Fire Engine Replacement
35,000.00 4th of July Celebration (Article 16)
20,000.00 By-Law Modernization Committee (Article 30)
7,500.00 Conservation Land Fund (Article 27)
5,000.00 Community Recognition (Article 14)
$6,491,163.97 Total amount being recommended for Appropriation at ATM

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$6,527,516.21 Amount Available for appropriation
$36,379.24 Amount not being appropriated

Capital Planning Committee has vetted $1.6 million for the Public Safety capital items. The $1,600,000 being
recommend for appropriation to the SPED Reserve is $600,000 more than last year’s appropriation of $1 million. Mr.
Scollins stated that there is not a lot of flexibility in the School Department budget next year because the majority of the
increase to their FY25 budget is for contractual obligations. The $1 million being recommended to the Capital
Stabilization Fund will be earmarked for debt service costs. This is the 3 rd year appropriated to this fund and will be
recommended to continue for four more years for a total of seven years. The Town will be able to pay the debt service
costs on one year BANs (Bond Anticipation Notes) to carry for three years.

The $1 million being recommended to supplement Ch. 90 funds. The estimated amount to complete road repairs is
$19-20 million. The $1 million being recommend for appropriation to a New Capital Stabilization Fund for 1860
Washington Street, the former St. Gerard’s property. The Town Administrator will discuss this at the March 6 Finance
Committee meeting.

The $153,936.97 amount being recommended is to transfer from free cash to a Special Revenue Fund for Opioid. The
$50,000 being recommended is to be applied towards a fire engine replacement. Mr. Scollins stated that the Town has
$1 million of savings from the Memorial Hall exterior renovation project recommended to fund most of the fire engine
replacement. The remaining recommended appropriations of free are $35,000 towards the Fourth of July Community
Celebration, $7,500 to add to the Conservation Lan Fund and $5,000 for community recognition of employees, retirees
etc.

Ms. Thomas inquired if the work does not go forward with St. Gerard’s or the Galvin Middle School projects what would
happen to the funds in those stabilization funds. Mr. Scollins explained that the funds would have to stay in the
stabilization funds. ATM could appropriate those funds for any legal government purpose that is eligible to be bonded.

Mr. Scollins stated that when the Town achieves the 15% Reserves that there is no good reason to “hoard” any excess
funds beyond the 15%. The best thing to do is to reinvest any excess amounts back into the priorities of the community.

Mr. McKenna inquired if the 20.31% of General Fund Expenses figure was after the recommended uses of Free Cash
was expended. Mr. Scollins responded no that the 20.31% is the gross amount. The $6,527,516 is the amount in
excess of the 15%.

Mr. Cole inquired about the 20.02% of General Fund Expenses for the prior year balance as of 7/1/22 and asked why
that % would not be 15% and did the Town have the same strategy last year as it has for this year. Mr. Scollins
explained that the denominator that the % is being measured against the total budget grows. In order to maintain 15%
going forward, assuming the budget grows, then the reserve number needs to grow. During the year, because the
Town budgeted conservatively, that will feed free cash. Departments spend their budgets conservatively and only
because they need the funds, not just because the budget amount is there. Department managers consistently turn
back funds at the end of the year, not an indication of misbudgeting by the managers, but the uncertainty of how the
numbers will fall. If ATM only appropriates the use of the $6,492,163.97 the Town will end the year at the 15% and will
then have a recharge of free cash which will maintain and improve the % ratio.

A motion made by Mr. Mauro that $1,000,000 be appropriated to be spent by the Board of Public Works to
supplement the amount received from the Chapter 90 Roads Program was seconded by Ms. Schutt.

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 14 – Community Recognition Supplemental Funding - Mr. Scollins stated that this article was passed seven
years ago at the ATM 2017 with a starting balance of $5,000. If approved at ATM the fund wil be replenished.

A motion made by Ms. Schutt that $5,000 be transferred from Free Cash (Undesignated Fund Balance) to Fund
100 to increase the appropriation voted in Article 32 of the 2017 Annual Town Meeting for the purposes named
in said article for community recognition for present or former town employees and town officials, subject to
all the terms and conditions set forth in that 2017 appropriation was seconded by Mr. Mauro.

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Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 19 – Appropriation to Increase Capital Stabilization Account

This is the third year that the Town would be recommending a transfer of $1,000,000 into the Capital Stabilization Fund.
The funds can be reappropriated at ATM for any bondable purpose but the “earmarked” purpose and the intent is for
building this fund up to be used to pay debt service costs for the Galvin Middle School project. If the setting aside of
funds in the Capital Stabilization Funds continues for four more years after this year (7 years in total) the Town would
have enough to fund three years of short-term interest costs. The borrowing during the 3-year project cycle would be
the amount the Town needs in year one with a short-term loan for that, to be paid off at the end of the year. The next
year the Town would borrow for not only that balance but then the new amount needed for the second year and continue
into the third year. The Town would not permanently bond the total commitment of what the Town needs at the
beginning of the project, but borrow only what is needed in a given year. There will be three years of short-term debt
interest payments. If the Town continues to contribute to the Capital Stabilization Fund the fund along with any interest
that it is earning should be able to pay the short-term interest costs for three years. If there is a debt exclusion the debt
service would not be part of the debt exclusion. The debt exclusion, as the project cycle continues, would not kick in
until about 2029.

A motion made by Ms. Schutt that $1,00,000 be appropriated to the Capital Stabilization Account (#801) and
to meet this appropriation, $1,000,000 be transferred from Free Cash (Undesignated Fund Balance) in the
Treasury of the Town was seconded by Mr. Mauro.

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 21 – Rescind Unused Borrowing Authorizations

In order for the Town to borrow there needs to be a 2/3 vote of authorization at ATM. When projects are completed
and there are amounts that were authorized, not borrowed and no longer needed, it is best practice to come back to
Town Meeting to rescind those authorizations. When the Town goes out to borrow those unused authorizations are
still there, giving the financial community/lenders the impression that the Town could go out to borrow for those
additional funds. The Town wants to eliminate this perception with the lenders.

The Plymouth Rubber $8,597,000 authorized debt was issued to reimburse the developer, Canton Holdings, for all of
the infrastructure that they have put in place at the site. All of their requirements have been completed under the
agreement. A year ago the Town issued bonds for $6,044,000 and have made the first debt service payment on those
bonds and will for the next 19 years. The bond buyer gave the Town $553,000 in bond premiums, which is the bond
buyers mechanism to offer at a higher rate for the Town to pay a lower interest rate. The remaining $2,000,000 was
not needed. Within the Development Agreement there was a provision that would have allowed the School Department
to ask for a loan from the Developer for a School Capital project. That provision was not exercised and the time has
passed to exercise that provision.

The second authorization is to rescind $734,000 for a water main project for which the bids came in lower than expected.
As well the bond premiums used for the project amounted to $165,000 which is added to the project but the Town does
not have to pay the $165,000 back.

A simple majority at ATM is needed to rescind the borrowing authorizations.

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Mr. Scollins stated that the MSBA (Massachusetts School Business Authority) requires in their agreements with School
Districts that the Town Meeting vote must authorize the borrowing for the full amount of the project regardless of the
actual borrowing amount for the project.

A motion made by Ms. Schutt that the following unused borrowing authorizations previously voted by
the Town be hereby rescinded was seconded by Mr. Mauro.

Bond
Premium
Authorized Authorized Debt Previously Used for To Be
Date Art. Mot. Purpose Debt Bonds Issued Unissued Rescinded Project Rescinded
District
Improvements
(Plymouth
5/11/2015 14 - Rubber Site) $8,597,000 $6,044,000 $2,553,000 0 $553,000 $2,000,000
Replace Water
Mains for
5/22/2021 11 12 Seven Streets $4,350,000 $3,451,000 $899,000 0 $165,000 $ 734,000

TOTAL $12,947,000 $9,495,000 $3,452,000 0 $718,000 $2,734,000

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 22 – Appropriation to Transfer Opioid Settlement Funds into the Opioid Special Revenue Fund

Mr. Scollins stated that this Article pertained to a nuance that the State had on how Special Revenue Funds are to be
treated. The general rule is that if there is not a rule that special revenues belong in a different fund other than the
General Fund, then they belong in the General Fund. When the Attorney General settled a variety of opioid settlement
agreements with a variety of different companies, the State and the communities in the state all started to receive
payments. Over the last two years the Town has received $153,936.97 in settlements and was certified as Free Cash.
Because the Department of Revenue (DOR) had no rule that said the funds had to be segregated, the funds had to be
placed in the General Fund. Howevere, the funds are required to be spent for opioid related abatements. The DOR
recently passed a law that allows opioid funds received from these settlements be deposited into a Special Revenue
Fund (SRF). The funds already received and certified as Free Cash may now be appropriated into the SRF. Funds
received (such as funds received last fall) that are not identified as Free cash can now be moved into the SRF directly
and also going forward.

A motion made by Mr. Mauro that $153,936.97 be appropriated to the Opioid Special Revenue Fund (#260) and
to meet this appropriation, $153,936.97 be transferred from Free Cash (Undesignated Fund Balance) in the
Treasury of the Town was seconded by Ms. Schutt.

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 27 – Appropriation to Increase the Conservation Land Fund – At one of their previous meetings the Finance
Committee heard from Conservation Agent, Regen Milani, that the Land Fund was set up by the Town to be used for
anything under the Conservation Commission Act for the acquisition and management of property for the protection of
natural resources.

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A motion made by Mr. Mauro that $7,500 be appropriated and added to the balance in the Conservation Land
Fund and to meet said appropriation $7,500 be transferred from Free Cash (Undesignated Fund Balance) in
the Treasury of the Town was seconded by Ms. Schutt.
Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Mr. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Article 11 – Insurance Proceeds >$150,000

A motion made by Mr. Mauro that the subject matter of Article 11 be indefinitely postponed was seconded by
Mr. McKenna.

Roll Call Vote:

Ms. Mirliani Aye Mr. Cole Aye
Mr. McKenna Aye Mr. Mauro Aye
Ms. Foley Aye Ms. Thomas Aye

Vote: 6-0-0. The Finance Committee confirmed that they were okay with the draft discussion presented for Article
11.

Meeting Minutes: The Committee agreed to approve the three sets of minutes all in one block. A motion made
by Mr. McKenna that the minutes for January 24, February 14 and February 21, 2024 be approved as written
was seconded by Mr. Mauro.

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Ms. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

Next Meeting Date: The Committee decided to continue with remote Zoom meetings through the month of March
2024. The next meeting will take place on March 6, 2024 as a virtual meeting via Zoom.

At 8:56 p.m. Ms. Thomas announced that the Finance Committee would take a roll call vote to move into Executive
Session and will adjourn at the conclusion of the Executive Session, not to return to open session.

The purpose to enter into Executive Session was to discuss strategy with respect to collective bargaining or litigation if
an open meeting may have a detrimental effect on the bargaining or litigating position of the public body and the Chair
did so declare.

A motion made by Ms. Schutt to enter into Executive Session as so declared by the Chair was seconded by Mr. Mauro.

Roll Call Vote:

Ms. Menconi Aye Ms. Foley Aye
Ms. Schutt Aye Mr. Cole Aye
Ms. Mirliani Aye Mr. Mauro Aye
Mr. McKenna Aye Ms. Thomas Aye

Vote: 8-0-0.

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The Committee entered into Executive Session at 8:56 p.m. Ms. Thomas stated that the minutes would be withheld
until the matter discussed has been made public.

Meeting Adjournment: A motion made by Mr. McKenna to adjourn the meeting at approximately 8:20 p.m.
was seconded by Mr. Mauro.

Roll Call Vote:

Ms. Foley         Aye     Ms. Thomas      Aye
Mr. Mauro         Aye     Ms. Mirliani    Aye
Mr. McKenna       Aye     Mr. Cole        Aye

Vote: 6-0-0.

Minutes reviewed by: Mr. Cole

Respectfully submitted,




Cindy Thomas
Chair, Canton Finance Committee and
Sub-Committee to Review Compensation of Elected Officials




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Finance Committee
                                              Meeting Documents
                                               February 28, 2024

Please note: Some meeting documents may be found on the Town’s website under the Posted Minutes
section (Laser Fiche).

Agenda – February 28, 2024.

Budget documents discussed at the meeting may be found on the Town’s Website under the Finance Committee
section. The budget documents are subject to change as the budget process progresses. These documents may
also be found at the below links:

https://town.canton.ma.us/DocumentCenter/View/10987/FY25-Municipal-Budget---Dept-Requests---Jan-2024---Part-
1-of-2

https://town.canton.ma.us/DocumentCenter/View/10988/FY25-Municipal-Budget---Dept-Requests---Jan-2024---Part-
2-of-2

Cash Reserve Balances as of 2/26/24 provided by Randy Scollins, Finance Director (1 page).

FY 2025 Proposed Free Cash Appropriations at May 2024 ATM provided by Randy Scollins, Finance Director
(1 page).

Division of Local Services Bulletin #BUL-2023-7, dated December 2023 regarding Opioid Settlement Receipts
(2 pages).

Opioid Settlement Receipt Tracking spreadsheet, provided by Randy Scollins, Finance Director (1 page).




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February 28, 2024, Finance Committee Meeting - Virtual Meeting. Minutes

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