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Home My Public Portal About20160331 - Appropriations Committee - Meeting MinutesTown of Hopkinton Appropriation Committee Minutes of Meeting on Wednesday, March 31, 2016 Lower Level, Town Hall, Hopkinton, Massachusetts In attendance: Mike Manning Hanan Cohen Pam Waxlax Chris Sandini John Westerling Jay Guelfi Bob Dobinski Dan Terry The meeting was called to order by Mike at 6:05 PM. There was no public comment at the meeting. John Westerling, Director of Public Works, presented the capital articles for the DPW. • Highway F-350 Pickup — $60,000 for the replacement of a 2006 F-350 pickup/utility body. The truck has 161,000 miles on it and has received a total of $22,200 worth of repairs. The truck is used in day to day operations and has a dedicated plow route. This was on the FY16 plan for replacement last year. • Highway 2002 International Dump Truck - $200,000. The truck has severe corrosion and rotting of its frame. The truck is one of the DPW's largest vehicles so it plays an important role in its winter operations. The truck has 35,000 miles on it and has received a total of $30,000 worth of repairs. This was on the FY16 plan for replacement last year. • Water Biological Filtration Wells #4 & #5 - $50,000 for a pilot program for biological filtration of the water from wells #4 & #5 to improve the water quality be reducing the levels of iron and manganese. These two wells are only used during our periods of peak demand in the summer due to their elevated levels of iron and manganese. This pilot program seeks to find a way to lower the levels of iron and manganese so that the wells can be used more often thereby reducing our dependency on purchased water during those peak periods. There is a 828K gallon/day potential from these wells once treated. • Water Main Replacement — Hayden Rowe - $260,000 for the next phase of our annual water main replacement program to replace the worst section of water mains in Town. This year's selection is the water main on Hayden Rowe in the area of College Street. That water main has considerable buildup of tuberculation which is affecting water quality in the area. • Water Construction of New Grove Street Tank - $1,530,000 for the replacement of the smaller of the two existing water tanks on Grove Street. The existing water tank is in need of rehabilitation at a total cost of more than a half million dollars. The replacement of the water tank is currently being designed ($75K funded at last ATM). The replacement of the tank was recommended in the 2014 Water Supply and Treatment Evaluation Report. The amount is higher than originally proposed as they have found the tank needs to be bigger than originally planned. The tank being replaced is from 1922. The larger tank will also need replacing in about 5 years as part of a high pressure system. • Water Source Supply - $1,000,000 to partner with the Town of Ashland to share the capital costs associated with Ashland's connection to the MWRA. Ashland's connection will ensure a reliable water supply to meet Hopkinton's daily water demands during peak periods. Hopkinton's source of supply will not change — all of our water will continue to come from Ashland's groundwater wells and not the MWRA. Currently our municipal agreement with Ashland, which expires in 2024, allows for up to 1 million gallons/day. We use their water filtration system (which we helped pay for when built.) While we don't have to help pay for the MWRA connection, if we don't Ashland may not hook in and therefore wouldn't be able to provide enough water to us. This funding guarantees us to be able to purchase the full allotment from Ashland even during peak periods. On the operating budget side, John explained the drivers behind the large increases there. With regards to Highways Storm Water System Budget, the $370,000 request is to pay the increased costs associated with new regulations promulgated in EPA's new Municipal Separate Storm Sewer System (MS4) permit. The EPA expects that permit to be released in March 2016. This represents an increase of $220,000 more than prior years' appropriations. That estimate was calculated by an engineer hired by the 30 town Central Massachusetts Regional Storm Water Coalition of which Hopkinton is a member. Most of the cost will go to monitoring for the new regulations. There is a request for the Pavement Management Program (PMP) for $351,000 to supplement Chapter 90 funds for a total, level funded investment $1M in our annual PMP. There is no longer a surplus in Chapter 90 funds as it has been use to cover the shortfall of spent versus amount received from the state in the last few years. The Town invested $1M in its PMP over the past two years and both years it was able to increase its Pavement Condition Index (PCI). The PCI rose from 73.2 to 74.6 due to the work completed in 2015.The goal for FY17 is to manage funds to have the greatest impact on the PCI. The engineers provided three different budget scenarios: • $800k investment — PCI decreases to 70 and backlog grows to $16.8M in 2021 • $1M investment — PCI slightly decreases to 72 and backlog grows to $15.5M in 2021 • $1.2M investment— PCI increases slightly to 74 and backlog grows to $13.9M in 2021 The engineers recommend budget scenario #3 to maintain the Town's strong maintenance programs and to increase the mileage of resurfacing to limit the increase in future backlog. The DPW will manage its funds to have the greatest, achievable impact on the PCI. That will be accomplished with a balanced treatment program that will include crack sealing, chip sealing, milling and overlay, and full depth reclamation. Those treatments will be spread over local and arterial streets. Additionally, John noted that the Waste Collection & Disposal increase is an estimate as the contract expires 7/1/16. This increase is not necessarily population driven. We then discussed the request to overspend the Snow & Ice Removal Account. The original appropriation at the May 2015 ATM was $350,000. We have paid invoices to date totaling $525,000 for FY16 and expect to exceed original budget by $200,000. Pam moved and Hanan seconded to authorize the Town to incur liability and make expenditures in excess of available appropriations for snow and ice removal in accordance with MGL Chapter 44, section 31D in the amount of $200,000. The motion passed by a vote of 3-0. Jay Guelfi, Director of Parks & Recreation, Bob Dobinski, P&R Commission Chair, and Dan Terry, P&R Commission, spoke about the P&R Enterprise Fund. Jay handed out the budget analysis he completed with Chris (see Attachment 1.) The second page breaks out the financials between programming and non -programming revenue and expenses. Non -programming for the most part are just expense items and P&R has little control over these fixed costs. For the most part the General Fund subsidy is the amount needed to cover the non -programming costs as well as that portion of Full Time Salaries not offset by programming revenue. Jay noted that he has found revenue on programs pretty predictable across the last two years. The enterprise fund operates on a cash basis so expenses for summer camps occur early in the fiscal year and next year's camp revenue comes in later in the fiscal year (around April/May.) Chris presented the retained earnings on the enterprise funds (see Attachment 2.) He noted that for Sewer a chunk of the retained earnings will be spent each year to offset rates to draw down the retained earnings balance some. With Water the opposite will take place as the plan is to build up the retained earnings balance. P&R balance is adequate as it is a little more than 5%, which is what the DOR recommends for a retained earning balance. Hanan moved and Pam seconded a motion to approve the minutes of our 3/30/2016 meeting. The motion passed by a vote of 3-0. At 8:08 PM Pam moved and Hanan seconded a motion to adjourn. The motion passed unanimously, 3-0. ,Y - Town Of Hopkinton PARKS & RECREATION ENTERPRISE FUND - BUDGET ANALYSIS PARKS & RECREATION ENTERPRISE FUND B udget 2016 YTD 2016 FY 16 Pr ojected Budget 2017 PARKS & RECREATION REVENUES Field Usage Charges Fruit Street Usage Charges Program Charges: Youth Summer Sports Clinics Ski Program Basketball In -Town Program Summer Playground groups Babe Ruth Bas eball TDA Drivers ED Other Pr ograms (girls lacrosse, Flag Fo otball, Tennis) Sub Total Other Revenue: Boat Permits Beach Permits Sub Total TOTAL REVENUES 14,340 60,000 30,140 240 14,340 65,000 14,340 65,000 65,226 12,678 65,226 65,226 50,390 45,675 45,675 45,675 44,525 47,835 44,525 44,525 120,000 11,680 120,000 120,000 10,000 10,000 10,000 7,225 13,761 19,265 19,265 50,940 23,952 50,940 50,940 422,646 185,961 434,971 434,971 5,450 3,060 5,450 5,450 4,800 5,944 4,800 4,800 10,250 9,004 10,250 10,250 432,896 194,965 445,221 445,221 PARKS & RECREATION EXPENDITURES Personal Services 195,679 93,817 195,679 195,379 Electricty 3,000 3,225 3,000 3,000 R&M Recreational Facilities 69,000 11,450 22,900 22,900 R&M Fruit Street 29,000 20,105 29,000 29,000 R&L Dept . Equipment 45,000 1,887 45,000 45,000 Advertising 1,800 1,096 1,800 1,800 Recreational Supplies 60,000 9,470 60,000 60,000 Debt Se rvice 42,250 42,250 40,850 Misc Other Contract Youth Summer Sports Clinics 50,156 50,156 50,156 Ski Program 48,473 48,473 Basketball In -Town Program 35,593 35,593 Summer Playground Groups 22,911 22,911 22,911 Other Pro grams (girls lacrosse, Flag Football, Tennis) 44,951 44,951 44,951 Sub Total 180,000 118,018 202,084 202,084 INDIRECT COSTS 36,635 37,369 TOTAL 630 -PARKS & RECREATION (B) 662,364 259,068 601,713 637,382 Excess (deficiency) of rev enues ov er (unde r) expen ditures (229,468) (64,103) (156,492) (192,161) Park & Rec Budget Analysis FY 2017 Full Time Salaries Programming Summer Playground Groups Summer Sports Clinics Basketball In -Town Program Ski Program Babe Ruth Baseball Fruit Street TDA Drivers ED Other Programs (Lacrosse, Volleyball, Flag Football) Field use Sub total Programming Non Programming Sandy Beach Indirect Costs DPW Budget Transfer Town Common Other expenses Sub total Non Programming Total Parks & Rec General Fund Subsidy 2017 Revenue Expenses 138,578 120,000 77,640 65,226 50,156 44,525 35,593 45,675 48,473 10,000 4,189 65,000 29,000 19,265 9,633 48,690 59,221 14,340 22,900 432,721 336,805 10,250 2,250 12,500 64,675 37,369 30,155 18,800 11,000 161,999 Net Gain (loss) (138,578) 42,360 15,070 8,932 (2,798) 5,811 36,000 9,633 (10,531) (8,560) 95,917 (54,425) (37,369) (30,155) (16,550) (11,000) (149,499) 445,221 637,382 (192,161) (192,161) Parks & Recreati on FY 17 Non Program Related Expenses Sandy Beach (including debt) Indirect Costs DPW Budget Transfer Town Common Other Expenses (ice rink) T otal 54,425 37,369 30,155 16,550 11,000 149,499 See Schedule Service for cutting grass and trash removal Landscaping, Irrigation and events Ice Rink, EMC Park and other small costs 3/4 Town Of Hopkinton - Parks & Recreati on Statement of Profit & L oss - Sandy Beach Actu al Projected Budget FY 15 FY 16 FY 17 Revenues: Boat Permits 6,134 Beach Passes 4,943 T otal Revenues 5,250 5,250 5,000 5,000 11,077 10,250 10,250 Expenses: Debt service 43,650 42,250 40,850 Staffing 18,484 18,484 18,854 Electricity 464 464 473 Plumbing 325 1,785 1,821 Water testing 1,125 1,125 1,148 Other 1,737 1,500 1,530 Total Expenses 65,785 65,608 64,675 Net Gain (Loss) (54,708) (55,358) (54,425) 4/4 Town of Hopkinton Balance of Retained Earnings as of 6/30/15 Prepared for the Approriations Committee Sewer 2,178,196.98 Water 24,107.12 Recreation 38,752.62