2018.12.06 BOS Summit II - Laserfiche WebLink

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Page 1 of 6 Financial Summit Meeting II Board of Selectmen, School Committee, Appropriation Committee and Capital Expenditures Committee Thursday December 6, 2018 A Financial Summit meeting was held on Thursday, December 6, 2018 at 7:03 p.m. at the Samuel Hadley Public Services Building Cafeteria, 201 Bedford Street. Present for the Board of Selectmen (BOS) were Ms. Barry (Chair); Mr. Pato; Mr. Lucente; Ms. Hai; Mr. Malloy, Town Manager; Ms. Kosnoff, Assistant Town Manager for Finance; Ms. Hewitt; Budget Officer; and Ms. Siebert, Recording Secretary. Present for the School Committee (SC) were Ms. Jay (Chair); Ms. Colburn; Ms. Lenihan; Ms. Sawhney; Dr. Hackett, Superintendent of Schools; and Mr. Rowe, Assistant Superintendent of Schools for Finance and Operations. Present for the Appropriation Committee (AC) were Mr. Bartenstein (Chair); Mr. Levine; Mr. Padaki; Ms. Yan; Mr. Neumeier; Ms. Basch; Mr. Nichols. Present for the Capital Expenditures Committee (CEC) were Mr. Kanter (Vice Chair); Mr. Cole; Ms. Manz; and Mr. Smith. FY2020 Revenue Projections and Revenue Allocation Ms. Kosnoff said projected Revenue in FY2020 is expected to increase by $7,943,950 to $229,265,581 which is 3.59% over FY2019. This increase is slightly lower than the increases in FY2018/19 (4.0%) and FY2017/18 (4.9%). Major items contributing to growth in Revenue are the annual tax levy increase of 2.5% and projected New Growth of$2,500,000. Ms. Kosnoff termed the New Growth estimate as "conservative", noting that New Growth has annually exceeded $3M for the last several years. Total increases from these two Revenue sources is projected as $6.9M. State Aid is expected to increase 1.3% or $182,250. In prior years, State Aid increased by a greater amount because the State was trying to meet the minimum-per-student aid target. Local Receipts are more challenging to predict due to greater variability. Overall, FY2020 Local Receipts are expected to increase 3.2% ($430,406) over FY2019. Free Cash has been certified at $13AM, a 7.9% increase over the prior year. FY2020 will be a revaluation year and; historically, tax abatement applications have been higher in these years. Therefore, the Overlay allocation has increased by 20% ($150,000). Ms. Manz (CEC) asked why there is such a drop in the FY2020 New Growth projection. Ms. Kosnoff said that New Growth, based on commercial and residential real estate development, is difficult to predict and a conservative projection is better than one that is overly optimistic. New Growth is also attributable to Personal Property, a topic that will be discussed in greater detail at a future meeting. Mr. Kanter (CEC) asked why Chapter 70 funds appear on the balance sheet while Chapter 90 funds do not. Mr. Malloy replied that Chapter 90 could be categorized as a"reimbursable grant."