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Home My Public Portal AboutSelect Board -- 2020-11-18 Minutes Town of Brewster Office of: z o + o° •+,* 9 Select Board � _ •, ;� 2198 Main Street Town Administrator 0 Brewster, MA 02631 - 1898 A Phone : ( 508) 896= 3701 Fax : ( 508) 896- 8089 Iss Ui��irrnl�nNillnUNnu�Q\ ;' MINUTES OF THE SELECT BOARD REGULAR SESSION MINUTES DATE . November 18, 2020 i TIME : 4 : 00 PM PLACE : Remote Teleconference i ALL PARTICIPANTS ARE PARTICIPATING REMOTELY : Selectperson deRuyter, Selectperson Whitney, Selectperson Chatelain , Town Administrator Peter Lombardi , Assistant Town Administrator Donna Kalinick and Executive Assistant to the Town Administrator Robin Young, Finance Director Mimi Bernardo, Beth Devine, Finance Committee Members : Pete Dahl , Frank Bridges, Honey Pivirotto, Alex Hopper, Robert Tobias, Bill Meehan , Andrew Evans, Robert Young Chair Chaffee ( 5 : 49 ) , Selectperson Bingham ( 5 : 55 ) Call to Order Selectperson deRuyter called the Select Board meeting to order at 4 : 01pm , conducted a roll call vote of attendance, declared a quorum present, and read the meeting participation and recording statements . Finance Committee Chair Pete Dahl called the Finance Committee meeting to order, conducted a roll call vote of attendance , and declared a quorum present . Declaration of a Quorum Public Announcements and Comment : Members of the public may address the Select Board on matters not on the meeting' s agenda for a maximum 3 -5 minutes at the Chair' s discretion . Under the Open Meeting Law, the Select Board is unable to reply but may add items presented to a future agenda . No discussion . Joint Meeting with Finance Committee : Presentation on and Discussion of FY2246 Financial Forecast Mr . Lombardi gave a review of the FY22 budget process schedule and presented a slide show to both of the a Committees . An overview of the FY21 budget began the presentation . There was over a $ 500, 000 . 00 i reduction from the original FY21 presented budget following the Pandemic . Mr . Lombardi reviewed the j changes in the FY21 budget . Revenues for the FY22 budget include $ 200, 000 . 00 in new growth , with a decline to $ 175 , 000 . 00 for FY23 as recommended by the Deputy Assessor, level funded State aid with a 1 . 5 % escalator annually, and anticipated level funded local receipts with a 2 . 5 -7 . 5 escalator annually . Motor vehicle excise is an unknown and will be monitored . Short term rental revenues has been separated from traditional lodging tax by the State . From June through September, the Town received $ 700, 000 from the short term rental revenue . This represented an extra month than usual in the first quarter reporting . The www , brewster-ma . gov BoS 11 - 18- 20 Page 1 of 5 i 01% E w u�ul 8r�'y''` Town of Brewster Office of: z 4 �3at +,+ , Select Board 2198 Main Street Town Administrator 3f _ G Brewster, MA 026314898 r - GO Phone : ( 508) 896- 3701 Fax : ( 508) 896- 8089 /4/III�ryIININISO ftllUllu�� conservative FY22 short term rental tax estimate is listed at $ 500, 000 . 00, with a 10% annual escalator . There is no assumed revenue for Marijuana tax or Solar projects at this time, as there is no revenue to base the anticipated funds on . Overlay abatements were included in the budget at $ 250, 000 . 00 . The FY22 general expenses are increased by 2 % . The personnel expenses include a placeholder for a 2 . 25 % COLA increase, contractual step increases, and a $ 100, 000 . 00 placeholder for changes as a result of the Compensation and Class Study . The 2 . 5 % increase for School budgets includes both Nauset and the Cape Cod Regional Technical High School ' s operating budgets . The enrollment figures will be monitored in case of a rise , the town share of the budgets will have to be adjusted . The pension expense is included with a 10% escalator . Health insurance costs are anticipated to rise by 5 % in FY22 and 7 % in FY23 and beyond . Contribution to OPEB is up $ 44, 000 to $ 300, 000 total , including Water and Golf contributions for FY22 , and remains that number over the following 4 years . The previously approved Housing Trust allocation from short term rental revenues stands at $ 250, 000 . 00 . No new Town debt for capital is included in forecast, but continued conservative revenue estimates should create sufficient capacity to fund ongoing needs via Free Cash consistent with the FY21 - 25 Capital Improvement Plan . Water and Golf budget projections are not addressed , but funding for both has been removed from prior year budget/actuals . Water is now a full enterprise account in FY21 and recently established a 5 year rate plan . Golf may transition to an enterprise account in FY23 and beyond , based on the findings of this year' s comprehensive study . There is a placeholder of $ 3 million for the Nauset High School debt exclusion for FY22 and beyond which assumes a 20 year lending term . The revenue and expense spreadsheets were displayed , with comments on certain increases in line items . The estimated FY22 General Fund revenue totals are $ 48, 999, 569 . The projected FY22 General Fund operating appropriations are $ 48, 711 , 392, leaving an estimated available FY22 levy capacity of $ 288, 000 . 00 . This is 0 . 6 % of the annual operating budget and primarily attributed to the new Short Term Rental revenue . The Finance team ' s j suggested operating budget guidance include ; prepare level services ( not level funded ) budgets, where substantial increases require compelling rationale . The time line of the budget review is as follows ; Department Head requests are due December 21, 2020, an internal review will take place through mid - January; a FY22 budget presentation will be given on February 1 in a joint meeting to the Finance Committee and Select Board , and a Department Head presentation is planned for February 6 in another joint meeting . Suggested capital budget guidance includes ; to update FY21 - 26 requests with a goal to maintain a $ 1 . 7M j annual commitment to funding capital needs via Free Cash , Department Head requests are due December 4, Capital Planning Committee meetings in December & January; FY22 - 26 Capital Improvement Plan ( CIP ) to be j delivered by end of January and presentation is planned for a February 16thjoint meeting . Supplemental FY21 capital needs to be addressed at the spring 2021 Town Meeting . There is $ 2 . 6 + million in unappropriated Free Cash available . Select Board FY21 - 22 Strategic Plan Goals and their budget implications are as follows to engage stakeholders to determine policy position on residential exemption and other potential local tax relief policy options . For Housing, to identify Affordable Housing Trust operating/capital needs, develop a funding plan , and establish a permanent funding mechanism ; establish a housing rehabilitation program and a long-term rental assistance program . For personnel ; to identify funding to support creation of new Human Resource Department, to implement findings from HR audit and complete www , brewster-ma . gov BoS 1148-20 Page 2 of 5 3 I i i I \\a\\\\1U1W1AYUllUrylNgj� �\`0 00aW, �9�%� Office of: . Q ' o ++* , Town of Brewster Select Board at +,, ti� 2198 Main Street Town Administrator _ o Brewster, MA 02631= 1898 r - Phone : ( 508) 896- 3701 Fax: ( 508) 896-8089 ��'wl1//ItII�IIMIIIA1tu�\u\�\� compensation/classification study and related staffing analysis of all Town personnel . Select Board FY21 - 22 Strategic Plan Goal Capital Implication ' s include ; complete the Drummer Boy Park Master Plan Update in coordination with proposed Wing Island boardwalk project, develop and execute updated plan for Dog Park project, develop affordable housing off Millstone Road , work with MA Department of Conservation and Recreation on a Rail Trail extension across Route 6A down to Linnel ) Landing, complete School Consolidation and Community Center Feasibility studies via a transparent and engaging public process and work with key Stakeholders to determine appropriate next steps, determine support for the Brewster Ladies Library renovation project, continue to invest in road infrastructure : complete design and construction of Millstone Road ; develop Complete Streets Prioritization Plan and seek project grant funding; complete update to Pavement Management Plan ; develop comprehensive Road Capital Plan and consider merits of seeking a second major road bond . Other Financial Implications of the Select Board FY21 - 22 Strategic Plan Goals include ; determine policy position on potential changes to Community Preservation Act fund allocation formula , develop clear timeline/ plan for moving water quality initiatives forward and determine whether to remain in Cape Cod and Islands Water Quality Protection Fund , adopt financial policies that are in accordance with 2019 MA Department of Revenue report and best practices, and implement short-term and medium -term recommendations of the Department of Revenue ( DOR ) report as applicable, foster stronger relationships with Nauset School District officials, especially regarding finances, complete comprehensive assessment of Captains Golf operations ; finances, capital needs, and determine feasibility of transitioning to an enterprise fund ; implement a 5 Year Green Community Energy Reduction Plan , manage ongoing solar projects with assistance from the new Energy Manager, and reduce greenhouse emissions whenever possible . The Finance Committee thanked the Finance Team for their hard work on this presentation . Frank Bridges i noted the pandemic and the impact it has had on everyone over the past 9 months . It changes the way that l services are delivered to the residents . Is there different ways to deliver services that can reduce the cost of j the budget ? Mr . Lombardi noted that changes were made, and the specific goal in the strategic plan is to ensure that changes and adaptations that have incurred to carry through FY22 and beyond . Month to month , things are still changing dramatically due to the pandemic . In this budget forecast there are not any fundamental changes but if the opportunity is presented ; they will consider it in the near future . Mr . Bridges asked about the DOR Short Term Rental ( STR ) revenues . They are reported on a quarterly basis, and are ' actual figures . A majority of the STR and lodging tax comes in during the months of June-September . As this is the first year, Mr . Lombardi would like to see more reporting before increasing the conservative figure included for revenues . Mr . Bridges asked if an in - depth look at the real estate market in Brewster has been done . Median home values show increases due to sales occurring during the pandemic . Will the assessed valuations of homes be higher ? Mr . Lombardi and his various teams have been tracking the data . Inventory is down , median sales values are up , and sales are higher than they have been . New growth calculation is separate and while the current market might have an impact on the tax rate, new growth is new construction and significant improvement increases . Mr . Meehan asked about OPEB . Based on current plan , www , brewster- ma . gov BoS 1148 - 20 Page 3 of 5 1 i E a\\\\d1U1NNUttW1p/qj 3?°�\•a0a1 WBr� Office of: oro;.� . e # Town of Brewster Select Board 3f +. 2198 Main Street Town Administrator O Brewster, MA 02631 = 1898 �+r - Phone : ( 508) 896 = 3701 Fax : ( 508) 896- 8089 4 00 when do they see the Town becoming fully funded ? It should be by 2036 according to the current schedule . This could change . Mr . Meehan asked for confirmation that the Water and Golf departments are funding their OPEB within their own accounts, which they are . Andrew Evans asked if there are any significant challenges to the budget due to Covid . Mr . Lombardi noted the unknown of the motor vehicle excise revenue, enrollment shift in the schools and real estate collection , which has been okay to date . Mr . Evans asked about the following of the Nauset High School renovations . All major capital projects will be closely monitored . Mr . Tobias asked if Mr . Lombardi was comfortable with the level of services during the pandemic . It is part of the challenge of adopting a budget . The Federal CARES funding helped as outside financial resources to cover some of the costs during the pandemic, as well as FEMA funding . That funding is sun setting as of December . Honey Pivirotto asked what it takes to remove funds from the General Stabilization Fund , and what could they be used for . This requires a 2/3 vote from town meeting, with a broad ability to use funds for various needs . In FY21, there was a provision that the Select Board , with a 2/3 vote could authorize use of those funds . She also asked the driver for using a 2 . 25 % for cost of living adjustment ( COLA ) . This assumes a 2 % COLA with a small amount for bargaining with various unions . Pre - pandemic, it was normal for a 2-3 % COLA increase for employees ; this varies extremely Town to Town . She asked about the Select Board goal of fostering a stronger relationship with Nauset Schools . The intent of that goal was to make sure there was a good and open dialogue with the school staff, finance teams, local and regional school committees for exchange of information , budget considerations and data . Alex Hopper asked if there was an ability to increase the revenues, as they have used conservative figures . Mr . Lombardi and the team will monitor it going ahead , but has estimated a conservative formula for determining the figures . Bob Young had no questions but again commended the finance team for their presentation . He likes level services, but prefers a zero based budget process . Mr . Lombardi feels the transparency of the department' s budgets and the process of review internally, lends itself more to a zero based budget , they just don ' t call it that . The team reviews the prior year' s actuals when considering the budget . Spending freezes have been implemented over the past 2 years, so the actuals will look low . The Department Heads respected those l circumstances and it should not impact their actual department needs moving forward . Mimi Bernardo also mentioned that there will be a lot of retirements coming up in the next year . It will take a few years for the j trends to level out . Mr . Dahl asked about the new growth projections . Mr . Lombardi met with the Deputy i Assessor who provided an analysis for the past 20 years . This included annual new growth figures, building permits issued , and valuations . Based on building permits pulled this year, which are down , is how they came up with the projections to the Finance team . It is conservative, but fair in Mr . Lombardi ' s opinion . Selectperson deRuyter thanked the Finance Committee for working with the Select Board and their fantastic questions . Selectperson Whitney did not have any question . He is appreciative of the conservative approach . Mr . Chatelain noted there have been discussions at Select Board meetings to examine fee schedules for different departments and if that will happen after the budget process . The discussion last year was to revisit on an annual basis during the budget process . That is more difficult to do this upcoming year with the pandemic . There hasn 't been a comprehensive approach to looking at the fees in the past . They need to determine what the comps are and where they want to be . He is sensitive to the community right now and www , brewster- ma . gov BoS 11 - 18-20 Page 4of5 1 E I Town of Brewster Office of: o00 J%JI11WIWJI Select Board 2198 Main Street Town Administrator o " Brewster, MA 02631 - 1898 Y Phone : (508) 896- 3701 Fax : ( 508) 896 -8089 would not feel it appropriate to increase fees at this time . Chair Chaffee and Selectperson Bingham joined the meeting . Selectperson deRuyter noted the lack of affordability of housing on the Cape . The Affordable Housing Trust is being funded by $ 250, 000 . 00 in FY22 . The actuals from the STR revenue should come in significantly higher than budgeted at $ 500, 000 . 00 . He would like to see a cash transfer appropriated at Town Meeting to the Affordable Housing Trust to make an adjustment of the actual funding for the full 50% of the STR revenues . Mr . Lombardi thinks that the timeline for that would allow it to happen at a special town meeting in the fall . Chair Chaffee thanked the Finance Team for their hard work and presentation and the Finance Committee for having a joint meeting . Mr . Dahl noted a meeting scheduled for the Finance Committee for December 2 , 2020 . Mr . Meehan moved to adjourn the Finance Committee meeting at 5 : 54pm , Mr . Bridges second . Roll call vote ; Pete Dahl - yes, Frank Bridges - yes, Honey Pivirotto - yes, Alex Hopper - yes, Robert Tobias - yes, Bill Meehan - yes, Andrew Evans - yes, Robert Young — yes . Matters Not Reasonably Anticipated by the Chair No discussion . Next Meetings : Executive session meeting November 19 & 23 , 2020, December 7 and December 21, 2020, Adiournment Selectperson Chatelain moved to adjourn at 5 : 56 pm , Selectperson deRuyter second . A roll call vote was taken . Selectperson Whitney-yes, Selectperson Chatelain -yes, Selectperson deRuyter-yes, Selectperson Bingham -yes, Chair Chaffee -yes . The Board vote was 5 -yes, 0- No . a 3 Respectfully submitted , Robin Young 12 / 08 / 2020 G�Bi�9Li Approved : Signed : Date Selectperson Bingham , Clerk of the Board of Selectman Accompanying Documents in Packet: agenda, consent agenda, FYI 's, budget presentation i �I i I i i 1 www , brewstermma . gov BoS 11 - 18-20 Page 5 of 5 1 DOC ID : ed012d3f255eb55a93ccd55a5e9a92992be726b2 3 3 HELLOSIGN Audit Trail TITLE Minutes approved for signing FILE NAME a . BoS 10- 19-20 . doc and 3 others DOCUMENT ID ed012d3f255eb55a93ccd55a5e9a92992be726b2 AUDIT TRAIL DATE FORMAT MM / DD / YYYY STATUS e Completed Document History 12 / 08 / 2020 Sent for signature to Cindy Bingham SENT 14 : 35 : 59 UTC (cbingham@brewster- ma . gov) from ryoung@brewster- ma . gov IP : 131 . 109 . 131 . 20 12 / 08 / 2020 Viewed by Cindy Bingham ( cbingham@brewster- ma . gov) VIEWED 20 : 59 : 17 UTC IP : 73 . 167 . 234 . 228 12 / 08 / 2020 Signed by Cindy Bingham (cbingham@brewster- ma . gov) SIGNED 20 : 59 :34 UTC IP : 73 . 167 . 234 . 228 i i 1 I 12 / 08 / 2020 The document has been completed . OV COMPLETED 20 : 59 : 34 UTC j I i : 1 i i i I r a l i Powered by ® HELLOSIGN I I i s