January 11, 2021 meeting

Chairman Barrett called meeting to order at 6:01 p.m. He announced it was being recorded via Zoom, for cable television transmission.

Budget Summit

1. Chairman’s introductory remarks

Chairman Barrett welcomed all department heads, committee members and residents. He said Town Administrator Rob Dolan will review our financial position, the state of our current Fiscal Year 2021 budget, and revenue and expenditure projections for Fiscal Year 2022. 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. Town Accountant and Assistant Director of Finance Julie McCarthy will review the process of budget submission for both operating and capital budgets.

Chairman Barrett said this meeting is several weeks later than it has been in the past. This scheduling change was made to allow us to better understand the impact of the COVID-19 pandemic on projected local receipts and other revenue sources, including state aid. This uncertainty makes this budget process more difficult than any in recent memory. In addition, the Town is facing more modest new growth revenues with the build-out of Market Street and slowing of other development.

Chairman Barrett said: I have every confidence that our elected and appointed boards and committees, our Town Administrator and department heads, and out Town employees and citizens will rise to this occasion. Although the current conditions will make the Town face difficult decisions, Lynnfield is in better condition to meet these challenges than many communities – a result of the foresight and wise decisions made by past and present Town officials as well as its voters at town meetings.

Chairman Barrett said: I want to thank you all for your past work and I know I can speak for my colleagues in saying we look forward to working with you in this difficult endeavor, and we know that you will continue to work to be worthy of the confidence the people of Lynnfield have placed in you. Together, we will recommend to voters a budget plan that is fiscally responsible manner and will allow us to continue to provide to the people of Lynnfield the services that have made Lynnfield a place in which we are all proud to live and to serve and call our home.

            b. Town Administrator overview

Town Administrator Robert Dolan said that constraints on revenue, limits on new growth, and other issues affect Town spending. He said the Market Street development growth fueled a series of investments over the last decade, including in education, infrastructure and reserve funds. He said limited new growth, stagnant state aid and other factors have resulted in difficult decisions. Lynnfield has been successful by all measures, including bond ratings, audit reports and performance by Town schools and departments.

He said all these concerns about revenue and spending pale in comparison to the budgetary hardship likely to result from the COVD-19 pandemic. He said the events of the past few months were unforeseeable. The good news is that the current budget is holding strong. In light of the COVID pandemic, in the current budget, expenses were reduced and revenue projections were revised downward. He said local receipts such as fees for services and programs, as well as meals taxes, are down significantly.

He said he expected tax collection will remain exceptional in Fiscal Year 2022. But other revenues will likely be reduced by hundreds of thousands of dollars. He said the Town cannot expect an immediate recovery in local receipts, and should expect a significant decrease in local aid from the state. He said the Town may have to consider using rainy-day funds to fund the upcoming budget and reduce contributions to reserve funds while staying within the Town’s financial guidelines. He said all this will result in less free cash in the future and less funding for the capital budget. Employee benefits, insurance rates, pension liability are also affected by the COVID pandemic. Currently, not federal funding is earmarked directly for municipalities. He noted that all employee collective bargaining contracts expire on June 30, 2022.

Mr. Dolan said that d the challenges and opportunities they are looking at for the upcoming Fiscal Year. Town Accountant and Assistant Director of Finance Julie McCarthy spearheaded an effort to create a new financial report which has won an award.

Departments were instructed to submit requests with no new staff and only contractually obligated increases. All departments were asked to look at revenue enhancement, efficiencies and limiting capital request to high-need items only.

            c. Department reports

Accounting: Ms. McCarthy said the only change in expenses she anticipates is for the Town’s financial software program.

Treasure and Tax Collector: Leslie Davidson said she foresees no expenses changes other than for contractual agreements.

Assessing Department: Meredith Stone said next year will be a revaluation year, but the expense is spread over several years so no major increase is expected.

Town Clerk: Linda Emerson said a reduction in the number of elections next year will result in a reduction in expenses.

Veterans Services Director: Bruce Siegel said the state reimburses the Town for 75 percent of veterans’ direct benefits. He expects other expenses to remain the same.

Golf Director: Donald Lyons said that despite a seven-week shutdown, the golf operation has thrived due to the lack of other recreational options. Revenues are $285,000 ahead year to date. Additional personnel have been required on shifts due to COVID safety measures, but this has been offset by increased revenue. He said that next year prices will be increased. He also said that this year’s revenues will be hard to duplicate due to the extraordinarily good weather this year and the reopening of other recreational options.

Historical Commission: Chair Kirk Mansfield said that the commission has many upcoming projects but does not anticipate seeking any funds beyond the current budget

Planning and Conservation Administrator: Emilie Cademartori said that expenses are down this year and that she does not expect any significant additional costs. She said sharing of costs with multiple departments has resulted in cost savings.

Director of Inspectional Services: Joe O’Callaghan said this year’s budget is on target and no capital requests are anticipated.

Recreation Director: Julie Mallett said that many programs had to be canceled due to the pandemic, and that revenue was lost as a result. During the summer, programs were run with changes to protocols due to COVID, which provided social and exercise opportunities for children. Virtual programs have also been offered. No additional funds will be requested next year.

Library Director: Jennifer Inglis said this year’s budget is on target, and certain expenses, such as travel and tuition reimbursement, are down due to the pandemic. She said there will be a slight increase to salary expenses due to the new contract. Capital requests will include items to assist with the pandemic and social distancing, if no additional funds are available for state and federal programs.

Senior Center Director: Linda Naccara said this has been a challenging year, with programs being changed to virtual. She said no additional expenses will be requested and no capital expenses are anticipated.

Lynnfield Media Studios Director: Eric Hamlin explained his department’s operations and its role in providing information about the COVID pandemic and by transmitting web-based municipal committee meetings and town meetings to the public, as well as special events and informational campaigns. He said next year’s budget should be very similar.

Public Works Director: John Tomasz said this fiscal year has required additional contractual assistance for cleaning protocols. Next year’s budget will reflect a new contract for rubbish and trash collection, and any requirements that may continue due to the pandemic.

Fire Chief and Emergency Management Director: Glenn Davis said that this has been a challenging year and said the teamwork by the emergency management team has been amazing. Expenses for the Fire Department have been higher this year but salaries are slightly under expectations. FEMA reimbursements are being sought to offset COVID-related items. The department received grants to offset personal protective gear and other capital items. The ambulance enterprise operation remains strong and receipts have been good. He is hoping to level-fund expenses as much as possible; salary expenses will reflect the existing contract.

Police Chief: Chairman Barrett thanked David Breen for his service and congratulated him on his impending retirement. Police Captain       Nick Secatore said the department is performing well under the current budget. Capital expenses are expected to include a cruiser replacement and continued radio replacements. He said that expenses will be level-funded and salary costs will reflect the union contract and replacement of retiring personnel.

Substance Use Prevention Coordinator: Peg Sallade said her operation is fully funded under federal grants, at no additional cost to the Town. She said this is expected to continue next year. The program work with departments to support its mission. The largest challenge is if federal funding shifts going forward. She looks for new opportunities to promote health across the community.

Superintendent of Schools: Kristen Vogel said CARES Act funding has helped with the funding needed to operate the schools during the pandemic. Next year, the budget will reflect full opening of schools in the fall. Areas of concern include preserving class sizes, particularly at the elementary schools, special education costs, with several students being affected by the pandemic; technology needed for the hybrid learning model, and revenue decreases due to the cessation of programs due to the pandemic. The lone capital request expected is the annual $250,000 for technology. She said CARES funds have been used to support the additional technology infrastructure required for remote learning. Revenue enhancements, cost savings and grant opportunities are being examined.

            d. Budget submissions

Ms. McCarthy reviewed the budget submission process and deadlines. She offered her assistance for anyone who needs help.

            e. Finance Committee remarks

Chairman Chris Mattia said the Finance Committee will work with committees and department heads on budget reviews.

Chairman Barrett thanked all committee members and Town employees for their efforts.

Adoption of mileage rate for 2021

The Town has traditionally adopted the IRS business mileage rate for reimbursing Town employees using their personal vehicles on Town business. The IRS has announced the rate will be 56 cents per mile, a reduction of 1.5 cents from 2020.

MOTION by Selectman Dalton, duly seconded by Selectman Crawford: I move that the Board vote to set the mileage rate for reimbursing Town employees using their personal vehicles on Town business at 56 cents per mile. Vote by roll call was unanimous.

Acceptance of resignation from the Board of Appeals

Chairman Barrett thanked Board of Appeals member Brian Shaffer for his work on that board.

MOTION by Selectman Dalton, duly seconded by Selectman Crawford: I move that the Board vote to accept with regret the resignation of Brian Shaffer from the Board of Appeals. Vote by roll call was unanimous.

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

The meeting was adjourned at 6:56 p.m.