May 6, 2020 minutes

Chairman Crawford called the meeting to order at 5:00 p.m. He noted that the meeting was being recorded for cable television transmission.

Adoption of revised FY21 operating and capital budgets

Town Administrator Robert Dolan explained that as a result of the COVID-19 pandemic and its effects on the economy and projected local and state revenues, Mr. Dolan and Asst. Finance Director Julianne McCarthy and have decreased their projected state aid and local revenue estimates, and have revised the operating and capital budgets and spending plan to reflect these lower revenue estimates. Spending would increase by 2.6 over last year’s budget. He said this will meet the needs of the community.

Expense reductions reflect areas that could be reduced due to additional information and are in non-operational lines such as insurance and pension assessments and the regional vocational assessment. These changes will not affect direct services.

Changes to the capital budget include deferral of the TIP program on Summer Street by a year and postponement for a year of purchase of one of two requested dump trucks by the DPW and the purchase of a police cruiser. One of the two mowers requested by the golf operation was also deferred. Other cuts include a bell system at the High School and a microfilm reader at the Library. The capital budget is still robust. The proposed borrowing for larger pieces of equipment was eliminated.

These changes will allow the Town to retain free cash to help absorb additional revenue reductions if incurred in future years. The Town will invest in the stabilization fund, capital facilities fund and the OPEB trust, and all balances will remain within the financial guidelines set by the Town.

The revenue forecast is based on consulting with the Town’s legislative delegation and other Town officials. Mr. Dolan said he expects the state will revert to the old educational aid formula. Lynnfield was not a major beneficiary of this new formula. General aid is expected to be reduced, and local receipts such as building permits, meals and excise taxes, are also now projected to be less than originally expected due to economic conditions and the restrictions imposed during the pandemic.

Total reductions from the pre-COVID budget are a significant $1,023,861.

Expense reduction breakdown:

Operating expenses:    $289,035

Capital                         $635,826

Reserves                      $100,000

Revenue reduction breakdown:

State Aid                     $189,035

Local Receipts                        $100,000

Free Cash                    $204,898

Borrowing                   $450,000

Golf retained earnings $ 79,928

Mr. Dolan said this budget meets everyone’s needs, if not their wants. He said it reflects strong investments in education, public safety, public works and infrastructure. He said in the se precarious times, the Town must be as conservative as possible.

Should the Town not be able to attract a quorum to the annual town meeting, the Board may have to, under the emergency legislation recently adopted, vote on a monthly basis to approve interim budgets.

Chairman Crawford thanked Mr. Dolan and Ms. McCarthy for their work on the budget. He noted that the budget has been evolving as the Town learns amore about state action and the economic climate. He said it may be possible to supplement the budget in the fall or next April should conditions improve.

Selectman Dalton said that the Town must make adjustments to these rapidly changing conditions. He said this is an appropriate action.

Selectman Barrett asked how a monthly budget process might affect various departments. He said that the Town Administrator must sign off on any new hire outside of the School Department and that discretionary spending will be scrutinized. He said should conditions worsen significantly, mid-year cuts may be necessary. He said it is better to make difficult decisions now rather than in mid-year. He said many of the Town’s costs are fixed and relate to staffing and employee benefits.

Selectman Barrett said that all committees and boards must understand the challenges imposed by projected state aid reductions and local receipt reductions. Mr. Dolan said the Town will still see capital investments, but he said using free cash and other one-time revenue is appropriate to expend on capital items, but is dangerous to use for ongoing operations, since this is unsustainable. Lynnfield for many years has avoided this pitfall. He said these continued investment in infrastructure and necessary equipment does not come at the expense of education and public safety.

Chairman Crawford said pending state action on town meetings will be monitored. He said we should know more within the next ten days. Mr. Dolans said the monthly budget provision does not allow for capital spending, and encouraged residents to attend town meeting if possible to support

On the town election, Mr. Dolan said that the Town must hold an election even though there is a pandemic and there are no contested elections locally. The Town will adopt the best practices – holding it on a Saturday with as few election workers as possible, with safe personal spacing maintained.

MOTION by Selectman Barrett, duly seconded by Selectman Dalton: I move that the Board vote to adopt the revised Fiscal Year 2021 operating and capital budgets and spending plans as recommended by the Town Administrator. Vote was unanimous.

Application of Surplus Bond Proceeds to Pay Debt Service

Mr. Dolan explained that provisions of state law dictate how surplus bond proceeds may be utilized by municipalities. The Board is asked to apply surplus bond proceeds related to the borrowing for the bond related to the purchase of the Reedy Meadow Golf Course to the debt service incurred as a result of that purchase.

In June, the Board will be asked to take advantage of low interest rates to execute borrowing to save on interest costs. The Town’s strong bond rating will be beneficial in this effort.

MOTION by Selectman Barrett, duly seconded by Selectman Dalton: I move that the Board vote the following: In accordance with the provision of Massachusetts General Law Chapter 44, section 20, which provides that  surplus bond or note proceeds in an amount of less than $50,000 on account of a particular  project that has been completed, and for which no further liability remains, can be applied to pay debt service, the following balances of surplus borrowed funds are hereby transferred to pay debt service coming due in the fiscal year commencing July 1, 2019: Original Project Reedy Meadow Golf Course: Amount - $6,700. Vote was unanimous.

Update from Town Administrator on operations during state of emergency

Chairman Crawford commended Mr. Dolan, Emergency Management Director Glenn Davis on the response to the pandemic. Mr. Dolan said this has been a group effort that includes

Town Administrator Rob Dolan gave a brief overview of the measures undertaken in Lynnfield as a result of the COVID-19 pandemic.

The Town today has a total of 79 cases and 11 deaths related to the COVID-19 pandemic.

A discussion was held today with the general manager of Market Street on how to reopen safely when restrictions are lifted.

Board members and Mr. Dolan participated last night in a discussion with elected officials from five local communities on how the communities are responding to the challenges imposed by the pandemic, and plans to reopen as the state starts relaxing restrictions.

He said Lynnfield and other communities are working to address clusters of COVID-19 patients related to congregate living and employers and are taking the proper steps to assist those affected by the pandemic.

Selectman Barrett acknowledged Teacher Appreciation Week and Nurse Appreciation Day.

MOTION by Selectman Barrett, duly seconded by Selectman Dalton:  I move that the Board vote to adjourn. Vote was unanimous.

The Board adjourned at 5:38 p.m.