November 8, 2017 minutes

Chairman Barrett called the meeting to order at 6:30 p.m. He announced that the meeting was being recorded for transmission by cable television. He led those assembled in the Pledge of Allegiance.

Town Administrator Search Process

Chairman Barrett said that after accepting the resignation of Town Administrator James Boudreau, the Board has been aggressive in appointing a search committee to screen potential candidates. The proposed timeline is also ambitious but will allow for due diligence. He said after speaking with several consultants, he was most impressed by Bernard Lynch of Community Paradigm Associates.

Mr. Lynch outlined his qualifications, including 35 years of working in municipal government, 20 as a town administrator in Chelmsford and eight as City Manager in Lowell. Since then he has led a consulting group and has assisted in ten town administrator searches in Massachusetts. He said he understands the issues and knows municipal administrators throughout the state.

He said he envisions three to four weeks of gathering information, including forums for resident and employee input, and the creation of a positional profile. Promotional materials will be sent to potential candidates. This phase would end in mid-December and the recruiting process would begin. Resumes would be due in mid-January, and the screening committee would select finalists, with public interviews to be conducted by the Board. About a dozen administrator positions are now open and the market is very competitive.

In response to questions from the Board, Mr. Lynch said that if engaged, his first consultation would be in seven to ten days, and during that period he would talk with department heads and community leaders. He said it would take about one meeting to review resumes, two meetings for interviews and one to select finalists. He said an additional meeting may be needed after reference checks for finalists.

Selectman Dalton asked if there was any way to expedite the four-month timeline. Mr. Lynch said daytime meetings could help move the process. He said the holiday season may slow the process. Board members expressed a desire for an expedited process.

Town Administrator Search Committee member David Nelson asked if Mr. Lynch is engaged in other searches. Search Committee member David Basile asked about the current market for town administrators. Mr. Boudreau said that Mr. Lynch knows the players and can identify potential candidates. Search Committee member Arthur Bourque asked if the salary was in the right range. Mr. Lynch said it is competitive. Search Committee member Nancy Anderson asked about potential applicants. Mr. Lynch said six to eight come to mind.

MOTION by Selectman Dalton, duly seconded by Selectman Crawford: I move that the Board vote to enter into a contract with Community Paradigm Associates for the town administrator search. Vote was unanimous.

Budget Summit

Chairman Barrett delivered the following opening remarks:

Hello, department heads, members of Town boards and committees, and town officials.

Thank you for coming tonight.  As has been our practice for the past several years, the Town kicks off its annual budget process with tonight’s Budget Summit.

You will hear from our Town Administrator, Jim Boudreau, about the Town’s overall financial picture, the state of our current Fiscal Year 2018 budget, and revenue and expenditure projections for Fiscal Year 2019. Department heads and chairs of the Town’s boards and committees will give us an update on the status of their current budget and the challenges and opportunities they are looking at for the upcoming Fiscal Year.

Finally, our Town Accountant and Assistant Director of Finance, Julie McCarthy, will review the process of budget submission for both operating and capital budgets.

This meeting is several weeks earlier than it has been in the past. This scheduling change was made to allow the Board of Selectmen and Finance Committee additional time to carefully consider the spending proposals of Town boards and committees and provide voters with adequate time to consider the Town’s spending plan prior to town meeting.

Due to the hard work of the Town’s employees and volunteers and the wise choices of past and present Town boards, the Town has made great progress in several areas. Additional revenues from well considered and managed development has led to a growth in our commercial tax base, which has allowed the Town to maintain a strong free cash position, and replenish and grow its reserves while addressing long-standing needs in both its operations and infrastructure.

Over the past few years, the Town has taken several positive steps to ensure its financial strength. The Town’s free-cash position over the past three years has been the strongest in its history, and this has allowed the Town to fund two consecutive years of an aggressive capital program to replace aging vehicles and address infrastructure needs.

The Town has also made significant investments into the street and sidewalks program and has funded a major recreational fields program that has taken Lynnfield athletic facilities from the worst to the best in the region – all within the Proposition 2-1/2 levy limit.

Services have been expanded an improved in several departments to meet the demand of residents, from young families to our seniors.

The Town now has a full-time recreation director, and programming and attendance at the Recreation Department, the Senior Center and the Library have exploded over the past few years.

Our police department has added new positions, including it first detective, and the fire department has expanded its staffing and hours of full-time staffing in order to make the Town a safer place. 

The Town has provided strong financial support to the School Department and has been rewarded by outstanding performance inside and outside the classroom, as had been evidenced on standardized tests, on the playing fields and the stages, and throughout the community.

The Town has made it easier for residents to access information through an upgraded website and social media presence, has made it easier for residents to obtain information on Town programs and its finances, and to pay bills and register for programs online.  These efforts are ongoing,

While doing all of this, the Town has also added to its stabilization and capital facilities funds in order to be prepared for any unforeseen changes in the state or national economy, and has begun setting aside funds to address its OPEB obligations.

The Town’s AA1 bond rating – the highest rating it has ever achieved, and the second-highest rating available to any municipality, was reconfirmed in March. The following are few excerpts from that report, which offers an impartial evaluation of the Town’s financial position and management practices.

Strong management, with good financial policies and practices under our Financial Management Assessment (FMA) methodology;

 Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2016;

Very strong budgetary flexibility, with an available fund balance that we expect will improve in the near term;

Very strong liquidity, with total government available cash at 15.7% of total governmental fund expenditures and 3.4x governmental debt service, and access to external liquidity we consider strong;

Adequate debt and contingent liability position….low overall net debt at less than 3% of market value and rapid amortization, with 86.2% of debt scheduled to be retired within 10 years;

We view the town's management as strong, with good financial policies and Lynnfield has generally conservative budgeting practices, and it reviews the past five fiscal years to make revenue and expenditure assumptions.

Lynnfield's budgetary flexibility is very strong, in our view, with an available fund balance that we expect could improve in the near term from its fiscal 2016 level of 14.8% of operating expenditures, or $7.4 million.

While the Town has made strong strides to address longstanding needs both operationally and financially, there remains much hard work to be done. The new growth revenues the Town has enjoyed from Market Street and other development is expected to slow significantly. The Capital Facilities Advisory Committee is looking at facilities needs, and the library building project is awaiting state funding and the eventual decision of voters. We need to continue to balance the meeting the Town’s needs and ensuring that expenditure is made in the most cost-effective manner possible.

I want to take this opportunity to thank Town Administrator James Boudreau for his efforts and guidance over the past three years. The Town is in a stronger position both financially and operationally as a result of his management and his guidance, and I want to offer my personal thanks for his service, as well as the thanks of the Board and the residents of Lynnfield. While we would have liked to enjoy the benefit of his continued service, we know that he has made a decision to leave based on the needs of his family and we wish him the best.

I also want to thank the Town’s department heads and employees for their hard work and high standards, the Town’s volunteers on its many boards and committees who are the backbone of Town government, and finally, the voters of Lynnfield, who have always demanded that Town government act in a fiscally responsible manner but who have consistently supported those programs and expenditures that have made Lynnfield the outstanding community it is today.

Mr. Boudreau said that the Town’s Fiscal Year 2017 budget finished in the black and that the Town has $2.7 million in free cash prior to the October town meeting.  He said that the golf and EMS enterprise accounts were both able to add to their retained earnings. In the current fiscal year, police overtime has become an issue due to officers out on injury and sick leave. Transfers at the October town meeting addressed this issue. Revenues are strong as are collections. New growth, which exceeded $2.5 million in FY15, is projected at $435,000 for this year and $325,000 for FY19. State aid is projected to be level-funded. He said the likely increase would be no kore than $200,000.

As a result, the Town must be conservative in its spending plan. An aggressive capital plan is expected, but operating budgets must be conservative. Health insurance is projected to increase by six percent. The ability to add new positions will be severely constrained, unless dedicates revenue can be attached to that position. Local receipts should see a slight increase. Budgets beyond FY19 look to be even more difficult due to the leveling off of new growth. But during recent years, the Town has addressed a number of issues.

Department heads and committee chairs reviewed the state of the current fiscal year budget and their initial thoughts about requests for Fiscal Year 2019.

Fire Department: Chief Tetreault said the FY18 budget is in good shape and the EMS enterprise account is expected to yield retained earnings in part due to better collections. The new staffing model has been a success and overtime is under control. The department will again seek clerical support in its budget presentation. He said the capital request will be in line with the Town’s ten-year capital plan. Grant funds will be sought for larger purchases.

School Department: Superintendent of Schools Tremblay said that the FY18 budget is on solid footing despite some challenges, including new special education cases that will affect the FY19 budget. After the resignation of the Information technology director, a consultant has been engaged to evaluate issues. The athletic department will be seeking new track and field equipment when the refurbished track opens. She will meet with school administrators to review their thoughts about the FY19 operating budget.

Police: Chief Breen said that the transfer of funds at fall town meeting will address the projected shortfall in overtime funds due to injury and sick leave for three department members. He said an additional sergeant position will be sought in the FY19 operating budget, and said his capital request will likely be lower than in last years’ budget. He said increased security measures in schools will factor into the capital request.

Town Clerk: Clerk Trudy Reid said the FY18 budget is on target. The new electronic voting and check-in system received good reviews at the fall town meeting and funds for the purchase of such a system will be sought. She said additional funds will be requested in the operating budget next year, along with funds to accommodate the state-mandated early voting hour. An additional election may be required to fill a vacancy in the state senate due to the candidacy of the incumbent in the Lynn mayoral election.

Council on Aging: Senior Center Director Linda Naccara said the FY18 budget is on target and that no significant changes are expected in the operating budget request. She said she may seek additional staff in the FY20 budget due to increasing participation in and demand for programs and special events.

Planning Board: Chairman John Faria said the Planning Board budget request will reflect funding to publish a recodified zoning bylaw and the continuation of efforts to create a new master plan.  An updated zoning map will also be created and will require funding. The majority of the Planning Board favors seeking a planning associate to work part-time for 6-12 months and then creating a full-0time Director of Planning position at a projected salary of $65,000.

Library: Director Holly Mercer reviewed the library’s programming. She said the FY19 budget may need to be increased to allow for expanded programs. She said she has spoken to the Department of Public Works about facility needs that would be included in the capital budget.

Conservation Commission: Chairman Barrett thanked Conservation Administrator Betty Adelson for her service to the community. Ms. Adelson, who is retiring, discussed work on the Open Space and Recreation Plan, and the need for a new computer. Commission Chairman Paul Martindale discussed the capital request for treatment of Pillings Pond that recurs each year. He said the FY19 budget is expected to be lower than the current budget.

Board of Health: Director Kristin McRae said the current budget is on target and reviewed the department’s duties. She said the FY19 budget would be similar to past years.

Historical Commission: Commission member Robert MacKendrick said that the FY19 budget request will be level-funded with two exceptions. They are for a storage container needed for artifacts currently stored at the former South Library building, which is to be leased to the American Legion, and funding for the placement of a gazebo at the common.

Treasurer and Tax Collector: Christine O’Sullivan said that the current budget is in good shape and no major increases are expected for FY19.  She said an older printer must be replaced and new printing forms are needed.

Accountant: Julianne McCarthy said that the FY18 budget is fine and that in FY19 expenses will be level-funded. She said she is looking at new modules for cash and content management in the MUNIS financial system for efficiency.

Public Works: Director John Tomasz said that the FY18 budget should be fine, although snow costs are an unknown variable. He said the FY19 budget would reflect some adjustments in areas such as trees and fuel. Rates for contract school buses and trash collection are set. The capital budget request will reflect request for the Ledge Road stormwater project. More funds for road construction would be helpful, and could be used to address Pillings Pond sedimentation prevention with catch basins. Upgrades to Senior Center landscaping and parking will be sought.

Recreation Commission: Chairman Richard Sjoberg discussed the growth in programming and attendance. He said in FY19 funds may be sought for a part-time bus driver and for a survey of land for a proposed community recreation center. He said funds will be needed to address handicapped access to portable bathrooms at the playing fields.

Finance Committee: Chairman Jack Dahlstedt said the Committee is looking for ways to communicate more effectively. He said that Town has been fortunate to have six to seven years of growth in revue. Post-employment benefits and capital needs are on the horizon, and reserves should be bolstered for these reasons. He said that technology concerns must be addressed. He said he is thankful the budget process has begun earlier and said that subcommittees will be reaching out to boards and departments.

Ms. McCarthy reviewed the budget submittal process, including a new standardized capital request form.

Public comment

Resident Patricia Campbell praised the Board for creating new committees to address various issues. She thanked Mr. Boudreau for his work and his sense of humor. She asked that Town officials address emergency planning especially for senior citizens, and congratulated the School Department on strong MCAS scores. She also said she supports the purchase of electronic voting systems for town meeting. She also had several questions about budget issues.

MOTION by Selectman Dalton, duly seconded by Selectman Crawford: I move the Board adjourn. Vote was unanimous.

The Board adjourned at 8:11 p.m.