Loading...
HomeMy Public PortalAbout10.25.23 FinCom Packet Town of Brewster Finance Committee 2198 Main St., Brewster, MA 02631 fincommeeting@brewster-ma.gov (508) 896-3701 FINANCE COMMITTEE MEETING AGENDA 2198 Main Street October 25, 2023 at 6:00PM This meeting will be conducted in person at the time and location identified above. This means that at least a quorum of the members of the public body will attend the meeting in person and members of the public are welcome to attend in person as well. As a courtesy only, access to the meeting is also being provided via remote means in accordance with applicable law. Please note that while an option for remote attendance and/or participation is being provided as a courtesy to the public, th e meeting/hearing will not be suspended or terminated if technological problems interrupt the virtual broadcast or affect remote attendance or participation, unless otherwise required by law. Members of the public with particular interest in any specific item on this agenda, which includes an applicant and its representatives, should make plans for in -person vs. virtual attendance accordingly. Members of the public who wish to access the meeting may do so in the following manner: Phone: Call (312) 626 6799 or (301) 715-8592. Webinar ID: 862 2956 9696 Passcode: 565167 To request to speak: Press *9 and wait to be recognized. Zoom Webinar: Zoom Webinar: https://us02web.zoom.us/j/86229569696?pwd=MUhJNGpoU3VocTZ0cTU0VGpYcWdVQT09 Passcode: 565167 To request to speak: Tap Zoom “Raise Hand”, then wait to be recognized. When required by law or allowed by the Chair, persons wishing to provide public comment or otherwise participate in the meeting, may do so by accessing the meeting remotely, as noted above. Additionally, the meeting will be broadcast live, in real time, via Live broadcast (Brewster Government TV Channel 18), Livestream (livestream.brewster-ma.gov), or Video recording (tv.brewster-ma.gov). 1. Call to Order 2. Declaration of a Quorum 3. Meeting Participation Statement 4. Recording Statement - As required by the Open Meeting Law, we are informing you that the Town will be video and audio taping as well as broadcasting this public meeting. In addition, if anyone else intends to either video or audio tape this meeting, they are required to inform the chair. 5. Public Announcements and Comment: Members of the public may address the Finance Committee on matters not on the meeting’s agenda for a maximum of 3-5 minutes at the Chair’s discretion. Under the Open Meeting Law, the Finance Committee is unable to reply but may add items presented to a future agenda. 6. Town Manager/Finance Director Report 7. Warrant Articles 8. Appointment of Representatives to the Audit Committee 9. Nauset Regional District Agreement – Update and Discussion 10. Liaison Assignments and Reports 11. Approval of Minutes 12. Request for agenda items for future meetings 13. Matters Not Reasonably Anticipated by the Chair 14. Next Finance Committee Meeting/Finance Committee calendar 15. Adjournment Date Posted: Date Revised: Received by Town Clerk: 10/20/23 Finance Committee Harvey (Pete) Dahl Chair Frank Bridges Vice Chair William Meehan Clerk Patrick Buckley Andrew Evans William Henchy Alex Hopper Robert Tobias Robert Young Town Manager Peter Lombardi Finance Director Mimi Bernardo NAUSET REGIONAL SCHOOL DISTRICT AGREEMENT The agreement for the establishment of the Nauset Regional School District, as heretofore amended, is hereby further amended and restated to read as follows: Agreement entered into pursuant to Chap, 'ssachusetts ("M.G.L."), -I d, --T;': t the Towns of Brewster, Eastham, Orleans and Wellfleet, Massachusetts (hereinafter sometimes referred to as the _member towns_) for the purpose of establishing a regional school district and setting forth the terms and conditions for its operation. The regional school,suc-h district shallto be called the "Nauset Regional School District (hereinafter sometimes referred to as "District"). This amendment and restatement is made pursuant to Section VIII of the original regional agreement, as previously amended, by amending and restating the regional agreement in its entirety. The provisions of this restatement supersede any contrary or inconsistent provisions of the original regional agreement and any contrary or inconsistent provisions of any amendments prior to this amendment and restatement. In consideration of the mutual promises herein contained, it is hereby agreed as follows:" SECTION I TA e+x eeship-e#the Regional District School Committee A. Number of Members. The powers and duties of the District shall be vested in and exercised by a Regions -Sc l-District School Committee, (hereinafter sometimes referred to as the "Committee")_ The Committee , beginning with the annual town elections of 2003, shall consist of ten members, four from -being residents of the Town of Brewster, three being residents of the Town offfefxf Orleans, two being residents of the Town offr-p-e Eastham, and one being a resident of the Town offfem Wellfleet. To achieve proportional representation on the Committee, 0) -*►ember vo' ighted as described in Paragraph F. below. All ten members shall be elected by their individual towns, as prescribed in Paragraph B. below. B. Election of Members. In every year in which the term of office of an elected Committee member expires, the member town concerned shall, at its annual election, elect one member to serve for a term of three years. The Nauset Regional c . -hoot Di&tric+ £hall + f f o described b n vided howe„er, *hit a nber elected prior to 2001 shall serve for a three year term. ref three years. At the 2003 elections, Brewster, Eastham, and Orleans shall elect ne The terms of all such elected members shall commence upon such elected member becoming dui,. qualified by having taken such member's oath of office on or after the day following their election and continue for the term for which they afesuch member is elected and thereafter until their successor iss arc elected andduiy qualified by having taken such successor's oath of 1 office. term of three .re -pro rr th da f lie h le +io � € r b -54 C. Holding Office/Vacancies. In the event that any then serving member of the Committee shall be unable to continue to serve in such office due to death, resignation, relocation of residence from the member town which such Committee member represents, or lawful removal from office, such event shall be deemed to create a vacancy hereunder. In the event that any newly elected or appointed member shall fail to qualify for office due to death or declination to serve or refusal to take the oath of office, such failure to qualify shall be deemed to create a vacancy hereunder. 9r election and qualification of his successor. If a vacancy occursexists, within thirty (30) days, the Select Boa rdmen of the member town co/ towns-of-t_he, d4-s-`_.r-c*-i4w-era, t shall appoint a member to serve until the next annual or special town election and at such election, a successor to serve for the balance of the unexpired term, if any, shall be elected. All Committee members shall serve until their respective successors are elected or appointed and qualified. D. Officers of the Committee. Annually, at the first meeting of the Committee held on or after July 1: upon +Jr< kilt and qualificationof4-, members, the C€ommittee shall organize and choose by ballot a chairpersonman and vice-chairpersonman from its own membership. At the same meeting or at any other meeting the Committee shall appoint a treasurer and secretary who may be the same person but who need not be members of the Committee, choose such other officers as it deems advisable, determine the terms of office of its officers (except the Chairpersonona and Vice -Chair who shall be elected annually as provided above) and prescribe the powers and duties of any of its officers, fix the time and place for its regular meetings, and provide for the calling of special meetings. E. Powers and Duties. The Committee shall have all the powers an_d duties conferred and imposed upon such school committees by law and conferred and imposed upon it by this Agreement and such other additional powers and duties as are specified in M.G.L. Chapter 71, Sections 16 to 161 inclusive, and any amendments thereof and additions thereto, now or hereafter enacted, or as may be specified in any other general law or in any applicable special law. F. Voting and Quorum. In accordance with M.G.L. Chapter 71, Section 14E(4), as amended, to achieve proportional representation on the Committee, upon the last to occur of the acceptance of this Agreement by all member towns by vote at town meeting and the acceptance of this Agreement by the Commissioner of Elementary and Secondary Education (the "Commissioner"), on all issues requiring a vote of the Committee, the Committee members from the Town of Brewster shall each cast a weighted vote with a value of 1.0; the Committee members from the Town of Eastham shall each cast a weighted vote with a value of 1.1• the Committee members from the Town of Orleans shall each cast a weighted vote with a value of 0.8; and the Committee member from the Town of Wellfteet shall cast a weighted vote with a value of 1.4; such weighted votes being based on the relative resident populations as required by Massachusetts law utilizing the 2020 Federal census figures calculating the population for each of the member towns. 2 21 The weight of the votes of the Committee members from each member town shall be re- evaluated, and if necessary, reset, by the Committee every ten (10) years within one year after the initial release of population data from each Federal decennial census, with the weight of votes of Committee members to be based on such most recent Federal decennial census data. The weighted votes of the Committee members from each town shall be in proportion to the population of the member town compared to the population of all member towns of the District combined, so that the actual weighted vote of the individual members of the Committee from each member town, expressed in tenths, is as nearly equal to one 1 vote er Committee member as ossible while still ensurin that the lar est percentage deviation between any two member towns in the numerical variance of each member town from the ideal representation figure for the District falls within a deviation of 10.0%. The resetting of the weight of the votes of the elected members of the Committee which will come from each member town shall not be viewed as an amendment to the Regional Agreement. The weighted votes of the Committee members of a particular member town shall be equal in weight. The vote of any Committee member appointedto fill a vacancy pursuant to Section 1 (C) shall bear the same weight as the vote of the Committee member whose vacant seat was filled by such appointment, j The quorum of the Committee for the transaction of business shall be a majority of the total weighted vote for all Committee members, but a lesser number may adjourn. An affirmative majority of the total weighted vote for all Committee members present and voting shall be required to pass any motion or act upon any other business of the Committee which requires a majority vote. An affirmative two-thirds (2/3) of the total weighted vote for all Committee members_present and vow shall be required to pass any motion that requires a two-thirds vote, provided however, that two-thirds (2/3) of the total weighted vote for all Committee members, whether or not present and voting, shall be required to adopt a budget under Sections IX A and B to vote to utilize the indebtedness approval method set forth at M.G.L. Chapter 71, Section 16 (n) under Section XIII of this Agreement, and for any other business which by law requires a vote of two-thirds of all of the members of the Committee. SECTION I1 Types of Regional District Schools The regional district schools shall consist of facilities to serve the needs of grades six through twelve. The Committee is hereby authorized to establish and maintain state -aided vocational education, acting as trustees therefore, in accordance with the provisions of Chapter 74 of the M.G.L. and Acts amendatory thereto or dependent thereon, if the Committee deems it desirable. SECTION III Locations of Regional District Schools 3 The regional district schools shall be located within the district and in the ee neral area within a five -mile radius from the intersection of Mid -Cape Highway (Route 6) and Samoset Road (in Eastham). SECTION IV Apportionment and Payment of Costs Incurred by the District A. A --In compliance with 603 Code of Massachusetts Regulations ("CMR") 10.03(3), as amended, the District shall adopt and consistently use for all accounting purposes, the Chart of Accounts as amended, established and maintained by the Massachusetts Department of Elementary and Secondary Education or its successor ("DESE"). District budgets shall be consistently prepared using the line items and associated definitions described in said Chart of Accounts. B. For the purpose of apportioning assessments levied by the !district against the member towns, costs shall be divided into two categories, apital osts and `- perating CGosts. C. D, —Capital Costs shall include all expenses in the nature of capital outlay, including without limitation all expenses as 0 t may be amended from time to time, such as the cost of acquiring land, the cost of constructing, reconstructing and adding to buildings, and the cost of remodeling or making extraordinary repairs to a school building or buildings, including without limitation the cost of the original equipment and furnishings for such buildings or additions, plans, architects' or consultants' fees, costs of sewe9 , tents and sewage treatment or disposal cost of purchase or use of such sy-.: , grading and other items incidental to placing school buildings and additions and related premises in operating condition and the cost of any other capital asset or outlay which the District my acquire or any other costs (whether or not so financed) for which the istrict is or may be authorized lo our row to or to finance by the issue of bonds b y applicable general or special 1,w., nnw or here- Capital osts shall also include payment of principal and interest on bonds or other obligations issued by the istrict to finance foregoire _ osts. Capital osts represented by debt service shall be apportioned as capital costs of the year in which the debt service falls due. E. F. —Operating Ccosts shall include all costs not included in apital osts as defined in Section IV (01) 1l ; _ a repair and maintenance, expenditures, c -f k interest on temporary notes issued by the Ddistrict_ in anticipation of revenue and other costs incurred in the day-to-day operation of the schools. G. H. O. Payment of all Ccapital CGosts in any fiscal year shall be apportioned among the member towns based on the ratio which that member town's Student Enrollment (defined in Paragraph E, below), calculated on the basis of the member town's combined three-year rolling average of Student Enrollment for grades 6 —12, bears to the total Student 4 Enrollment for all member towns in the District, calculated on the basis of a combined three-year rolling average of Student Enrollment for grades 6 — 12 for all member towns. Operating Costsexpenses of each fiscal year shall be apportioned to the member towns based on the Alternative Assessment Method as calculated and outlined in subsection (1), below, or based on the Statutory Assessment Method as defined in 603 CMR 41.00, calculated as set forth in subsection (2)_below. The Committee will have the option to vote the Alternative Assessment Method or the Statutory Assessment Method each year. (1) Alternative Assessment Method: (a) Each member town's share of Operating Costs for each fiscal year shall on the basis of the ratio which that member town's Student Enrollment (defined in Paragraph E, below), calculated on the basis of the member town's combined three-year rolling average of Student Enrollment for grades 6 — 12, bears to the total Student Enrollment for all member towns in the DistrictLcalculated on the basis of a combined three-year rolling average of Student Enrollment for grades 6 — 12 for all member towns. their respective r a ^Ilments in th -.l distr' t school - d r p October 1 of the ecedi f' c I . (b) Use of the Alternative Assessment Method must be approved by all member towns in each fiscal year in which it is utilized. (2) Statutory Assessment Method. (a) The apportionment of Operating Costs for each member town for each fiscal year will be the sum of the following: (i) the member town's required local contribution to the District as defined in M.G.L. Chapter 70, Section 2 and determined by the Commissioner;_(ii) the member town's share of that portion of net school spending as defined in M.G.L. Chapter 70, Section 2 that exceeds the total of the required local contribution for all member towns; and (iii the member town's share of costs for transportation and all other expenditures (exclusive of Capital Costs as defined in Section IV C, above) that are not included in the District's net school spending. (b) A member town's share of subsection 2 (a)(ii) and 2 (a)(iii) above will be based on the ratio which that member town's combined three-year rolling average of Student Enrollment for grades 6 — 12, bears to the total Student Enrollment for all member towns in the District, calculated on the basis of a combined three-year rolling average of Student Enrollment for grades 6 — 12 for all member towns. J. For purposes of defining Student Enrollment related to assessments, Student Enrollment shall be defined as the number of residents of the member town who, as of October 1 of the applicable year(s), are attending any of the following (1) the schools of the District, (i) publicly -funded charter schools, and (iii) other public schools of choice (which includes but is not limited to resident students attend other public schools pursuant to School Choice, resident students attending a special education collaborative and resident students attending other special education schools and settings, but excludes resident students attending regional vocational school districts in which the member towns are members). Student Enrollment in the schools of the District shall be calculated using figures published by DESE in its October 1 District Enrollment Report x2 for the three preceding fiscal years. 5 Student Enrollment in publicly -funded charter schools and other public schools of choice shall be calculated using figures published by DESE in its October 1 Foundation Enrollment Report 3 for the three preceding fiscal years. K. Each member town shall pay its proportionate share of the Capital and Operating Costsexpenses to the regional school Ddistrict in each fiscal year in four equal installments on or about the first days of September, December, March and June, such schedule to be set by mutual agreement of the Boards of the member towns, and the School Committee. If mutual agreement cannot be reached, the payments shall be due on the first days of those months. L. The District will maintain a so-called "Excess and Deficiency Fund" which shall be administered consistent with directives from the Massachusetts Department of Revenue and consistent with the terms of M.G.L. Chapter 71, Section 16B %2 , as it may be amended. SECTION V Transportation School tTransportation of all student its to and from the regional district schools of the District shall be furnished by the ;-c.i 4-c4iool D 'istrict according to M.G.L. Chapter 71, Section 16C as amended, and the cost thereof shall be apportioned among the member towns as an annual °operating Cost pursuant to Section IV F. SECTION VI Admission of Additional Towns A. By an amendment of this greement adopted under and in accordance with Section VIII below, any other town or towns may be admitted to the Dr i000l-r,c-heoI•-district upon adoption as herein provided of such amendment and upon acceptance by the town or towns seeking admission of the greement as so amended and also upon compliance with such provisions of law as may be applicable J, as amended, and such terms as may be set forth in such amendment. Notwithstanding the timeline and effective date outlined in Section VIII B and Section VIII C, a new member town may only be admitted at the beginning of a fiscal year, effective on July 1 of that fiscal year, and only if the approval of all member towns and the Commissioner has been obtained on or before the preceding December 312. The authorizing votes of the member towns may provide for the deferral of said admission until July 1 of a subsequent fiscal year. B. Upon admission of a new member town to the District, assessments levied against the other member towns by the District to meet Capital Costs as defined in Section IV C shall be reapportioned, the terms of reapportionment to be stipulated in the amendment to this Agreement by which the newly admitted member town is admitted to the District. 6 C. The newly admitted member town shall pay to the District its share, as determined in Section VI B. and VI C. of this Agreement, of the funded indebtedness of the District already retired. For the purpose of this calculation such funded retired indebtedness shall be deemed to be the difference between (1) the original Capital Costs incurred by the District plus any subsequent Capital Costs, exclusive of interest and the total state construction grant, if any, depreciated at the rate of 2 percent per year, and (2) that part of Capital Costs as yet unpaid less that part of the state construction grant not yet received. Such share of the newly admitted member town shall be paid over the remaining scheduled period for repayment of such indebtedness, in four equal Installments, to be paid not later than the twentieth of March, June, September, and December in each year during this remaining period of indebtedness. Payments thus made toward retired indebtedness shall be credited to the other member towns comprising the District in amounts proportionate to the share of those same Capital Costs that each of those other member towns paid in the past. SECTION VII Sepa rational it hdrawal A. The withdrawal of a member town from the District may be effected by an amendment to this Agreement in the manner hereinafter provided by this Section. A member town seeking to withdraw shall, by vote at an annual or special town meeting, request the Committee to draw up an amendment to this Agreement setting forth the terms by which such member town may withdraw from the District. If the Committee fails to draw up such a proposed amendment, the member town may prepare such a proposed amendment and submit it to the Committee pursuant to Section VIII B, hereinafter; provided however, that any such proposed amendment shall incorporate all terms of withdrawal set forth in this Section VII. B. The clerk of the member town seekin to withdraw, within seven (7) days of the vote of the annual or special town meeting requesting the Committee to draw up an amendment to this Agreement for the purpose of withdrawal of such member town, shall notify the Committee chairperson and the District's superintendent of schools in writing of such vote and shall provide a certified copy of the vote with such notification. Thereupon, the Committee shall draw up an amendment to this Agreement consistent with the terms and provisions of this Section VII and setting forth such other terms of withdrawal as the Committee deems advisablesubject to the limitations contained in Section VIII A. The Secretary of the Committee shall mail or deliver a notice in writing to the Select Board of each member town that the Committee has drawn up an amendment to this Agreement providing for the withdrawal of a member town and enclosing with such notice a copy of such proposed amendment. The Select Board of each member town shall include an article stating the amendment in the warrant for the next annual or special town meeting of the Town. C. No less than two (2) full years prior to the desired date of withdrawal, the member town seeking to withdraw, in addition to the other requirements referred to in Paragraphs A and B above, will submit to the Commissioner and to the District a "Long Range Education Plan" consistent with 603 CMR 41.02 (2). The Long Range Education Plan will address, in addition to any other factor required by the Commissioner, the following: the expected educational benefits of reorganization; the current and pro'ected enrollments- an inventory of all educational facilities under the -urisdiction of the member town and under the jurisdiction 7 of the District and construction efficiencies, if any; the proposed administrative structure; the fiscal ramifications of the withdrawal upon the withdrawing town as well as the other rnember towns in the District; the geographical and physical characteristics of the area• and the effect that withdrawal will have on student transportation. D. Said petitioning town shall cease to be a member town only if the Committee's proposed amendment to this Agreement is approved by the Committee, and accepted by the petitioning town and each of the other member towns, and by the Commissioner acceptance by the petitioning town and by the other member towns to be by majority vote at an annual or special town meeting and approval by the Committee to require a majority vote. Such withdrawal shall become effective no earlier than one full year after the last to occur of the following events: the town meeting vote of the withdrawing town as described in Paragraph A, above,completion of the approval of the proposed amendment to this Agreement by the Committee, the member towns (including the withdrawing member town), and the Commissioner; and the submittal ofa long range education plan consistent with Paragraph C, above. Any such withdrawal shall become effective only at the beginning of a fiscal year of the District. The authorizing votes of the rnember towns may provide for the deferral of said withdrawal until July 1 of a subsequent fiscal year. E. +d„�r� a. from the reginn�l r "r nl J'r+�; * 1 F. In addition to other terms and requirements which the Committee may include in the proposed amendmentprovided (1) that the member town seeking to withdraw j1) shall have paid over to the District or remain liable for any unpaid operating costs':.; which it became liable as a member of the Di, . which have been certified by the Ddistrict treasurer to the treasurer of the withdrawing town:- an di 4 4 4g the full amount so certified for the year in which such withdrawal takes effect, aru#' (2) t#at-sai4-tow.n-shall remain liable to and shall continue to make payments to the istrict for its share of the indebtedness, other than temporary indebtedness incurred in anticipation of revenue, of the istrict outstanding at the time of such withdrawal, and for interest thereon, to the same extent and in the same manner as though the town had not withdrawn from the Odistrict, (3) shall remain liable to and shall continue to make payments to the District for its share of such other liabilities incurred by the District during all times that the withdrawing member town was a member of the District (e.g., Other Post -Employment Benefits ("OPEB") as determined by the Committee. and (4) shall have paid to the District the costs, including legal fees, that accrue to the District as a result of the withdrawal, provided that the withdrawing member town's responsibility for such continuing obligations as set forth in clauses 2 and 3 of this Para ra h E shall be reduced b an amount which such withdrawing member town haspaid over at the time of withdrawal and which has been applied to the payment of such indebtedness, such other liabilities incurred during the period that the withdrawing member town was a member of the District, including without limitation, OPEBLor interest, and further provided that except that (i) where any portion of such liability is computed on the basis of pupil enrollment, such portion shall be assessed as if the withdrawing town had the same pupil enrollment in each grade each year as it had on the October 1 preceding its withdrawal7-a amount which sucl aFPed li +n r,4r,,7,-ent , f " n bt The Committee's proposed +"aa- amendment may condition withdrawal upon the irrevocable deposit by the withdrawing 8 member town, in trust in the name of the District, of funds in an amount sufficient to meet such responsibilities pursuant to Paragraph F, below G. H. L—. A member town that chooses to withdraw from the District shall not be entitled to any pro rata share of any assets of the District. J. C —Money received by the Dslistrict from the withdrawing town for payment of funded indebtedness OPEB such other liabilities incurred b the District during all times that the withdrawing member town was a member of the District or interest thereon shall be used for this purpose only, and until so used shall be deposited in trust in the name of the istrict with a bank or trust company having its principal office in Massachusetts .. having a combined capital and surplus of not less tha $5,000,000. L. —Upon the effective date of withdrawal the terms of office of all members serving on the Committee from the withdrawing town shall terminate and the total membership of the Committee, as provided in Section IA, shall be decreased accordingly and the cuoruin and voitn weight of the reonauung Committee members Tali ire recalcuaated to comply with the formula set forth at Section I F, above, and the weighted votes redistributed accordingly, all to be set forth in the amendment of this Agreement made at such time. SECTION VIII Amendments A. This greement may be amended from time to time in the manner hereinafter provided, but no such amendment shall be made which shall substantially impair the rights of the holders of any bonds or notes or other indebtedness of the istrict then outstanding, or the rights of the istrict to procure the means for payment thereof, provided that nothing in this section shall prevent the admission of a new town or town to the vadistrict and the reapportionment accordingly of capital costs of the Ddistrict or of bonds or notes or other evidence of indebtedness of the District that were issued to finance capital expenses then outstanding and of interest thereon. B. Any proposal for amendment, except a proposal for amendmentproviding for the withdrawal of a member town (which shall be acted upon as provided in Section VII) may be initiated by Lila signed petition bearing the signatures of ten (10 ) per cent of the registered voters of any one of the member towns, which contains, at the end thereof, a certification by the town clerk of the respective member town as to the number of signatures on the petition that appear to be names of registered voters from that town, submitted by the petitioners to the secretary of the Committee or by (ii) a vote of any town meeting of any member town or a majority of all the members of the regiota aII district school Ccommittee. In the case of aAny such proposal for amendment pursuant to Section VIII B (ii), the town clerk of the applicable member town shall forthwith deliver a copy of such town meeting vote shall be presented to the secretary of the Committee in each case, the secretary of the Committee u4he-shall forthwith mail or deliver a notice in writing 9 to the ;heard of Select-rxae-r-Select Board of each of the member towns that a proposal to amend this greement has been received and shall enclose a copy of such proposal (without the signatures in the case of a proposal by petition), such vote proposing the amendment, and a copy of the proposed amendment. C. The Select_?:^ardrri; in each member town shall include in the warrant for the next annual meeting or a special town meeting called for the purpose, an article stating the proposed amendment -proposal or the substance thereof. Except in the case of amendments resulting from the addition of a new member, which shall become effective as set forth in Section XI, such amendment shall take effect upon its acceptance by each member town, acceptance by each member town to be by a majority vote at a town meeting_as aforesaid, and only after approval of the Commissioner . Should the amendment impact the budget, said amendment will only take effect on the first July 1 which falls after acceptance by all of the member towns and receipt of approval of the Commissioner, and only when there has been sufficient advanced time to pr pare the budget and assessments in accordance with the new procedure set forth in such amendment. All amendments must be approved by the Commissioner. SECTION IX Budget A. —At the opening of each academic year =the Committee shall as promptly as practicable, proceed to determine the amounts necessary to be raised to maintain and operate the reniora4 a - fiscal year and the amount required for the payment of debt and interest incurred by the District which will be due in said year, and shall prepare a tentative operating budget containing all proposed operating expenditures, capital expenditures and debt service payments to be paid from general revenues of the District and using with consistency the line items and associated definitions described in the Chart of Account, as amended, established and maintained by DESE. The budget shall identify each separate revenue source, and the amount estimated for each revenue source; shall specify whether member town assessments are to be calculated pursuant to the statutory assessment method or the alternative assessment method then provided for in the regional agreement, if any; and shall specify the total amounts to be assessed to the member towns for the support of the bud et. no et. All n -recurring expenditures shall be itemized. This tentative operating budget shall be itemized in such further detail as the Committee may deem advisable . Such tentative operating budget shalt be approved bva majority of the members of the Committee. The Committee shall then submit copies to the Chairperson of the Finance or Advisory Committee of each member town, or if there is no Finance or Advisory Committee in a member town, to the chairman of the Board of Selectmen Select Board of such member town, for their consideration at least thirty 130) days prior to the date on which the final operating and capital budget is adopted by the Committee and at least A5 aays prior to the B. The Committee shallhold a budget hearing consistent with M.C.L. Chapter 71, Section 38N, as amended, annually on its proposed annual budget not less than seven days after publication of a notice thereof in a newspaper having general circulation in the region. 10 Following the public hearing on the proposed budget, the Committee may make any such modifications to its proposed budget as it may deem necessary or desirable before voting to adopt a final operating and maintenance budget. C. Following such hearing, the Committee shall adopt a final budget by a two-thirds (2/3) weighted vote of all its members, incorporating such changes from the proposed budget that the Committee has deemed appropriate. Said adoption of a final budget will occur not later than forty-five (45) days prior to the earliest date on which the business section of the annual town meeting of any member town is to be held, but in no event later than March 31 (provided that said budget need not be adopted earlier than February 11. D. The budget and assessments shall be so constructed to show debt service, transportation, operating t a aal costs. It shall also list all sources of revenue used to reduce operating costs. The Committee shall apportion the annual budget in accordance with the provisions of Section IV. E. The amount so apportioned for each town shall be certified in accordance with Section 16B of Chapter 71 of the Genet a, ia\,,yivl and within thirty (30) days from the date on which the budget is adopted, and in no event later than April 30, ley -the District treasurer shall certify to the treasurers of each of the member towns that town's assessed share of such budget. F. The annual budget, as adopted by the Committee, and the member town's assessment as certified by the Treasurer of the District shall be placed before each local appropriating authority for its consideration. The annual budget, as adopted by the Committee shall require the approval of two-thirds ('/3) of the member towns by an affirmative vote of the appropriating authorities for such member towns. A vote by the local appropriating authority to appropriate the member town's assessment shall constitute approval of the District's budget. The District budget, so approved, shall be apportioned among the member towns in accorda , °:h the terms of Section IV E. and Section IV F. Eand-each town shall appropriate the amounts so certified- and such amounts shall be paid in accordance with the terms in Sect . IV H of this Agreement. SECTION X +t+an-StudentPupids A. The District shall accept all students who reside in any member town of the District who have completed the fifth grade. B. Any student residing in a member town who is desirous of attending a trade or vocational school outside the District shall have all the privileges of attending such a school as are now or may be hereafter provided for by law, provided however, that the cost of tuition for attending such a school and the cost of transportation, to the extent required by law shall be paid by the member town of the student's residence and shall not be included in the District's budget or assessed to the member towns as an Operating Cost or Capital Cost. 11 C. The Committee may accept for enrollment in the regional district school students from towns other than the member towns on a tuition bases and on such terms as it may determine. Income received by the District with respect to tuition students may be deposited into an approved revolving account and expended by the Committee without further appropriation by the member towns. SECTION XI Annual Report A. The Committee shall submit to each of the member towns an annual report, in sufficient time for inclusion in the annual reports of said member towns. This annual report shall include a detailed financial statement showing the methods by which each member town's share of the annual charges assessed against each member town, including without limitation operating and capital costs, were computed, together with such additional information relating to the operation and maintenance of such school as may be deemed necessary by the Committee or by the Select Board of any member town. B. The Committee shall conduct an annual independent financial audit and receive the audit report in public session. Copies of the audit report shall be provided within ten (10) days to the Select Board of each member town, to the school committees of each member town, and to such other officers of the member towns and the District as may be required by law. SECTION XII Review of Regional Agreement Recognizing that circumstances often change over time, and intending that this Agreement should continue to serve the best interests of the member towns, the Committee should, at five year intervals, review the need to establish an ad hoc study group composed of knowledgeable persons to study the Agreement and report to the Committee as to whether or not any changes to this Agreement might be beneficial in light of then prevailing conditions. The Committee shall give any such ad hoc study group's report due consideration, but may exercise its own discretion as to whether or not it will implement any of the group's recommendations. SECTION XIII Incurring of Debt The District may borrow under M.G.L. Chapter 71, Section 16(d) and any other applicable general or special law now or hereafter in effect. Pursuant to M.G.L. Chapter 71, Section 16(d), not later than seven days after the date on which the Committee authorizes the incurring of debt, other than temporary debt in anticipation of revenue to be received from any source, written notice of the date of said authorization, the sum authorized, and the general purpose or purposes for authorizing such debt, shall be given to the Select Board for each member town. No debt may be incurred until authorized in accordance with M.G.L. Chapter 71, Section 16(d) or pursuant to the provisions of any other applicable general or special law now or hereafter in effect. Notwithstanding the provision of this Section XIII, the Committee may, by a vote of two-thirds of all its members, require that the approval of any particular 12 authorized issue of indebtedness shall be by the registered voters of the member towns pursuant to the provisions of M.G.L. Chapter 71, Section 16(n) rather than pursuant to the provisions of M.G.L. Chapter 71, Section 16 (d). School Committee Signatures: Date: Date: Date: Date: Date: Date: Date: Date: Date: Signature of Commissioner or Elementary and Secondary Education: Date: 13 NOTES REGARDING AMENDED REGIONAL AGREEMENT General Comments regarding edits made to the current agreement: A number of the edits made to the current agreement are minor but are made in accordance with DESE's tips and recommendations, such as ensuring that when the word "member" is used, it is stated whether that means "member town" or "Committee member"; using"Select Board" rather than "Board of Selectmen", ensuring that the terminology is consistent throughout ("student" or "pupil", not both; and "M.G.L. Chapter Section" or "M.G.L. c. §", not both); that the first time an abbreviation appears it is shown with the entire word or phrase spelled out and the abbreviation (the Department of Elementary and Secondary Education ("DESE") and thereafter by the abbreviation. Some provisions were removed as no longer applicable (e.g., the wording about transitioning and staggering of terms for Committee members.) Some of the edits are made to include provisions which DESE now requires be included in all regional agreements: citation of general authority for the regional school district, namely, Chapter 71 (introductory paragraph); reference to statutes and regulations specifically addressing regional school districts, namely Chapter 71, Sections 14 — 16 1 and 603 CMR 41.00 (Section I E); provisions regarding quorum, vacancy, and general authority of School Committee (Section 1, paragraphs C, E and F); a reference to the statutory assessment method even if the district typically uses an alternative assessment method (Section IV F 2); wording indicating that certain actions by the Committee require a two-thirds vote and, in the event that the district uses a weighted voting system, the fact that the two- thirds requirement is calculated via weighted votes (Sections 1 F (3), Section IX C and F; Section XIII ); more detailed wording regarding the budget process, with timelines, quantum of Committee vote required at each step in budget process (Section IX); definition of how enrollment is calculated (Section IV G); additional wording regarding withdrawal procedures for a member town to separate from the district, including timing limitations reflecting applicable statute and regulations (Section VII); additional wording regarding admission procedures for a town to join the district, including timing limitations reflecting applicable statute and regulations (Section VI); reference to fact that Commissioner must approve all amendments (Section VIII C). Some of the edits are made to include new or revised provisions that DESE recommends be included, such as: provision regarding periodic reviews of the regional agreement (Section XII); recommendation that include a provision regarding incurring of debt (Section XIII). Sections requiring decisions by the School Committee: Section 1 D: Date of Committee's organizational meeting. This draft says first meeting after July 1 to dovetail with fiscal year, but could be first meeting after June 1, Should be a date after all Committee members elected at spring elections in the member towns are likely to have been qualified and taken their oaths of office. (Note that statewide deadline to request recount is 10 days and deadline to contest is thirty days from date of election) 1 Section I F: Committee voting to comply with proportional representation requirements Current method or alternatives The current agreement sets certain voting strengths for various Committee members. These figures were set in 2002 to comply with constitutional requirements established via caselaw, the Kelleher case, based on that case law and the populations of the various member towns at that time. In addition, the Massachusetts legislature enacted a new statute, M.G.L. c. 71, §14E to address this issue and provide options for regional school districts to meet the requirements of the holding in Kelleher. The Kelleher case indicated that a deviation of more than 16.4% from the ideal of one-man one -vote across a multi -town district was unconstitutional. DESE is now requiring regional school districts to set voting strengths within 10% of the ideal proportion. In addition, the relative populations of the member towns have changed. Because the current agreement did not set a method for changing voting strength as the town populations change, the wording of this provision must be changed to allow the School Committee to alter the voting strength of its members as needed to maintain compliance with DESE's 10% ideal proportion. Typically, population figures from the decennial US Census are used to establish population, but the District could also include a provision for adjusting every five years by using the decennial US Census figures and then obtaining figures from Town Clerks at the intervening five year mark. Options for compliance under current method for selecting Committee members (each member town elects the Committee members who reside in that member town): 1. Maintain the same Committee members and adjust voting strength: Option 1 (closer to current voting strength): Brewster 4 members 1 vote each Eastham 2 members 1.1 vote each Orleans 3 members 0.8 vote each Wellfleet 1 member 1.3 vote Difference from ideal district of 6.24%, which is within DESE's 10% differential requirement Option 2 (closer to the ideal): Brewster 4 members 1 vote each Eastham 2 members 1.1 vote each Orleans 3 members 0.8 votes each 2 Wellfleet 1 member 1.4 votes Difference from ideal district of 3.1%, which is within DESE's 10% differential requirement. (I tried some options that would keep Eastham's two members as voting at 1.0 strength each, as with the current structure, and which might make calculations at meetings simpler as to whether a quorum is present or whether a vote has passed, but those options fell slightly outside DESE's 10% differential requirement.) 2. Change the number of Committee members: The District could change the number of Committee members from ten to a larger or smaller number. (This would require adding wording in the agreement to transition in new or additional members and potentially wording about staggering terms). If there is concern that Wellfleet's only School Committee member has a 1.4 weighted vote (and therefore, if that member is absent from a meeting, Wellfleet voters have no representation at all when each of the other member towns would not be as substantially affected if one of their Committee members were absent), the following Committee structure could be used: Brewster 4 members 1 vote each Eastham 2 members 1.1 vote each Orleans 3 members 0.8 votes each Wellfleet 2 members 0.7 votes each Difference from ideal district of 3.1%, which is within DESE's 10% requirement Alternatives for compliance with Kelleher and M.G.L. c. 71, §14E: Some districts are not comfortable with a structure that requires adjustment of the number of Committee members and/or voting weights every five to ten years and opt for a different structure entirely to avoid that. The available options in that case, under M.G.L. c. 71, §14E, are as follows: 1. Change to an all -appointed School Committee. (Usually, the Select Board of each member town would choose the School Committee members from that Town.) 2. Change to a School Committee with members that are elected not just by voters of the particular member town in which they reside, but by all voters across the entire district, with elections held at the regular biennial ballot elections in November. This has two possible options for Committee structure and membership: a. There could be 8 or 10 Committee members and no requirement for town of residency, so the top vote -getters regardless of residency would comprise the Committee (which could result in a member town having no resident serving on the Committee), or b. There could be 8 or 10 Committee members and a particular number residing in each member town would be elected. In that case the District could maintain the current numbers (4 from Brewster, 3 from Orleans, 2 from Eastham and 1 from Wellfleet, or could change to an 8 member Committee with 2 members from each of the four member towns.) The possible disadvantage to this structure is that it is possible for the voters in the more populous towns to effectively vote in Committee members who reside in the less populous member towns but who support the positions generally supported by the more populous towns rather than the positions that are generally supported in their town of residency. (This would most frequently arise regarding borrowing or budget/spending issues.) Section IV: Rolling Average Enrollment issue: Apportionment formula at Paragraphs E and F is based on enrollment. In current version, apportionment is based on enrollment in the preceding fiscal year. Brewster indicated that the towns support using a rolling average of enrollment over multiple years. This draft version now incorporates use of a three year rolling average. Some districts use a five year rolling average. Section V: Transportation apportionment: Apportionment for transportation under the current agreement and in this draft amendment is treated as an Operating Cost and apportioned on the same basis as all other Operating Costs. DESE is likely to point out that some districts use a different formula or different enrollment definition for apportioning transportation costs from the formula used for apportioning Operating Costs because students enrolled out -of -district via School Choice (other than SPED students with an lEP requiring transportation) and students attending out -of -district Charter Schools are not required to be provided with transportation by the District. As a result the 4 respective member town enrollment figures used in calculating Operating Costs may not reflect actual transportation use by the member towns. The Committee may want to consider whether to recommend a change to that formula for apportionment of transportation costs to more accurately reflect the use of transportation services by students from the respective member towns. However, using different apportionment formulas may create an undue burden on the District business office and may be confusing to member towns and voters when the budget figures are presented. Section VI: Admission of New Member Towns. The Committee may want to ask the business manager to provide an opinion as to the provisions in Section VI C. The specific terms regarding newly admitted towns sharing in outstanding Capital Costs are not set by DESE or by any law or regulation, so the District has the power to consider what specific terms are appropriate. The wording incorporated here is wording used in the regional agreements of a number of other districts. Section VII: Withdrawal of Member Towns. DESE indicates that any required terms for withdrawal of a member town should be included in the regional agreement, but DESE does not dictate the specific terms for withdrawal. As such the District has the power to consider what specific terms are appropriate. The wording incorporated here is wording used in the regional agreements of a number of other districts. Section VIII: Proposed Amendments. The District's current agreement allows for amendment of the regional agreement based not only on proposals developed by the School Committee, but also based on amendments proposed by petition of voters and amendments as voted at town meeting of one of the member towns. According to the process in the current agreement (and as set forth in this draft amendment), the proposed amendment would then be submitted to all member towns and placed on the warrant at the next town meeting. Because amendments proposed by voters often do not comply with the format and other requirements of DESE, the District may want to consider changing the process for consideration of petitioned amendment proposals (and/or proposals via town meeting) by either: requiring that the proposer first submit their proposal to DESE for preliminary approval or 5 giving the Committee the opportunity to review and revise any proposed amendment submitted by voters (or town meeting) and submit the same to DESE for review and preliminary approval prior to having the proposed amendment submitted to Town Meeting in all member towns. Optional provisions which are not included in this draft amendment but which could be added if desired by the Committee: Right of School Committee to designate one of its members to sign payroll and accounts payable warrants under Chapter 71, Section 16A. (Would be added at Section 1.) The law is still applicable to the Committee whether or not a provision is included in the regional agreement noting that right. Provision effectively stating the DESE policy that requires that jr proposed amendment to the regional agreement be reviewed by the DESE program staff and the DESE legal office before the proposed amendment is submitted to the member towns for approval. (Would be added at Section VIII.) Provisions effectively stating the regulatory and statutory procedures for amending an adopted budget. (Would be added at Section IX.) These procedures are still applicable to the Committee whether or not a provision is included in the regional agreement noting the procedures. Provision effectively stating the applicable law and regulation governing line item transfers within budget (as provided in 603 CMR 41.05 (5)(f)). (Would be added at Section IX.) These provisions are still applicable to the Committee whether or not a provision is included in the regional agreement noting the specific statutory and regulatory provisions. 6