May 14, 2018 meeting
Board of Selectmen | May 14, 2018 |
Regular Session | Merritt Center |
Present: | Richard Dalton, Chairman |
| Christopher Barrett, Selectman |
| Philip Crawford, Selectman |
Chairman Dalton called the meeting to order at 7:32 p.m. He announced that the meeting will be recorded for cable television transmission and left those in attendance in the Pledge of Allegiance.
Appointment of Historical Commission alternate member
Kirk Mansfield has applied to be an alternate member of the Historical Commission, a position that is authorized under Mass. General Law. He has the recommendation of the Commission and will be on hand for an interview. He told the Board he has been a resident for 50 years and sad that his great-grandparents moved here in 1925. He said the history of Lynnfield has always been important to him. Board members thanked him for coming forward.
MOTION by Selectman Crawford, duly seconded by Selectman Barrett: I move that Kirk Mansfield be appointed as an alternate member of the Historical Commission for a term to expire on June 30, 2021. Vote was unanimous.
Review of FY17 Audit by Melanson & Heath
Representatives of Melanson and Heath, the independent auditing firm, reviewed the Town’s latest audit. Town Accountant/Asst. Director of Finance Julie McCarthy also attended.
Zack Fentross, who managed the audit for the firm, told the Board that the Town is in good financial position, as are its records. He said the audit report showed no exceptions or issues, which is the best audit a municipality can receive. He reviewed the statement of net position, the enterprise fund, and the Town’s capital assets, which have increased due to the fields project, a fire truck purchase, school technology and road work.
Liabilities include $30,649,501, from the Town’s share of the Essex Regional Retirement System, which is currently 51 percent funded, less than the state average. The Town’s other post-employment benefits (OPEB) obligation is $36,994,000. The full liability will be recognized over a 30-year period, of which 15 years have already passed, under Government Accounting Standards Bureau (GASB) order 45 In Fiscal Year 2018, the full liability will be recorded due to GASB order 75. That will likely show a figure of $75 million. Bond rating agencies are aware that this affects all communities, and it will not affect the Town’s bond rating in any way.
He said the Town does a good job of collecting taxes. The Town’s unassigned fund balance is $5,684,000, a figure important to bond rating agencies. It is 10.5 percent of Lynnfield’s budget; bond rating agencies look for a range of 5 to 10 percent. Revenues were $528,614 over budget, and expenses and other uses less than budgeted, resulting in excess revenues of $1,715,045. Free cash use was $1,472,000, but department turn-backs offset that amount. OPEB trust fund assets are $634,941. Bond rating agencies look favorably on communities that like Lynnfield are committed to contributing to the fund on an annual basis. He said Lynnfield is line with most communities. Some are further along, and some have not even started the process.
Mr. Fentross said the Town’s bond rating of AA+ stable is a good one, right below the maximum AAA, which few communities have. Selectman Barrett asked what the Town would need to do to achieve the AAA rating. Mr. Fentross said that a Comprehensive Annual Financial Report (CAFR) could assist the Town in that effort. He said the report would run about 120 pages and would include about twice the information of the annual audit.
Chairman Dalton said Town Administrator Robert Dolan and Ms. McCarthy are working hard to provide more timely and detailed financial information to the public. Mr. Fentross said Ms. McCarthy is very well prepared and that if the audit firm had recommendations for improvements, it would issue a management letter. The Town has not had such a letter since 2014. Only 10 to 15 percent of Towns have an audit without a management letter.
Selectman Dalton asked if the enterprise funds are including indirect costs and are capturing all they should. Mr. Fentross said they were. Selectman Crawford asked if the Essex Regional Retirement System is on track to fully fund its obligations by 2040. Mr. Fentross said he cannot determine that, as his firm does not audit that organization. Selectman Barrett asked if the Town should be more aggressive in funding its OPEB obligation. Mr. Fentross said this is a management decision, based on the competing needs the Town faces.
The Board thanked Mr. Fentross and Ms. McCarthy for the presentation.
Goals for the Town Administrator
Mr. Dolan and Chairman Dalton have worked on a set of goals for the Town Administrator after the Board approved its own goals at the April 23 meeting.
Policy and Procedures:
Goal 1: Develop department head mission statements for all departments with clear goals and measurable objectives.
Goal 2: Maintain, update for public, and manage issues / project summary list made available on Town website and reported out each BOS meeting
Goal 3: Create internal interdepartmental (including schools) advisory committees including: Emergency Management Committee, Capital Improvement Committee, and Budget Committee. This will improve communication, cooperation, and planning town wide.
Communications:
Goal 1: Develop and provide triennial Department Head reports to be presented to BOS in September, January, and May by the DPW, Police, Fire. Other departments as requested.
Goal 2: Develop Town Strategic IT Improvement plan that includes:
- Capital inventory and assessment
- Capital spending plan of action
- Assessment of departments needs currently and in the future
- Review IT management / operations structure and investigate need or potential for staff, rationalization, shared resources with schools, private contracts
Goal 3: Improve external communication with the public through technology, including financial transparency, use of social media, and community dialogue.
Financial:
Goal 1: Take all necessary actions to sustain and potentially increase the Town’s current bond rating.
Goal 2: Provide the BOS publicly and quarterly financial update in September, December, March, and June that includes revenue, expenditures, capital budgets, and enterprise funds in cooperation with town’s Asst. Finance Director.
Goal 3: Develop internally a standardized and consistent operational and capital budget process including forms, expected information, and presentation.
Goal 4: Develop and present longer-term fiscal analysis of town’s operations budget and debt
Capital:
Goal 1: Develop an analysis and program to improve the overall condition of the town’s sidewalks and streets. This was an issue of high priority in the Master Plan Survey.
Goal 2: Work with BOS to form a Strategic Planning Committee whose goal is to develop a long-term plan to address capital needs of the town and as well as funding options.
Selectman Barrett said that agreed with the goals, as did Selectman Crawford. They pointed to sidewalk improvements and the efforts to create a Strategic Planning Committee to prioritize capital projects. Chairman Dalton said that committee will also be responsible for looking at operating budgets and programs. He envisions a five-member committee and asked Board members to submit names for consideration to Mr. Dolan. He said he looking for members with skills at managing difficult situations.
MOTION by Selectman Crawford, duly seconded by Selectman Barrett: I move that the Board confirm the Town Administrator Goals for 2018-2019 as presented. Vote was unanimous.
Resignation from the Council on Aging
James Walsh has submitted his resignation as a member of the Council on Aging. The former Lynnfield postmaster has been a member of the COA for over 12 years.
MOTION by Selectman Crawford, duly seconded by Selectman Barrett: I move that the Board accept with regret the resignation of James Walsh from the Council on Aging. Vote was unanimous.
Board of Selectmen Updates
Heathy Lynnfield (Selectman Crawford): He discussed the fundraiser at Whole Foods that continues to the end of the month, the parent survey which will be put out this week for parents of students in grades 5-12.
School Capacity and Enrollment Committee (Selectman Barrett): He met with Mr. Dolan and Chairman John Scenna. The first meeting will be held in June, and a demographic study will be commissioned. He said this effort is even more important now that town meeting voted own the elderly housing proposal at the Sagamore golf course, as that site may be developed as single-family housing with no age restrictions. The study will take about two months. Selectman Crawford said he hopes it will be done in time for the budget process.
Town Administrator Update
Mr. Dolan gave several brief updates on issues in the goals and tasks document He covered may of these in his presentation of his goals earlier in the meeting.
Public participation
There was none.
Use of Town Facilities
MOTION by Selectman Crawford, duly seconded by Selectman Barrett: I move that the Board approve the Block party on Coleman Avenue, June 9, 2:00 p.m.-7:00 p.m. Vote was unanimous.
MOTION by Selectman Crawford, duly seconded by Selectman Barrett: I move the Board approve the use of the Common by the Veterans Services Department for the Memorial Day observance on Monday, May 28, 8 a.m.-1 p.m. Vote was unanimous.
MOTION by Selectman Crawford, duly seconded by Selectman Barrett: I move the Board approve the use of the Common by the Lynnfield Library for Qui Gong, on May 24 and May 31, 3-4:15 p.m. Vote was unanimous.
MOTION by Selectman Crawford, duly seconded by Selectman Barrett: I move the Board approve the use of the South Fire lot for a car wash by the Lynnfield High School girls’ soccer team on September 23. Vote was unanimous.
MOTION by Selectman Crawford, duly seconded by Selectman Barrett: I move that we adjourn. Vote was unanimous.
The Board adjourned at 8:28 p.m.