March 28 2022 meeting

Chair Dalton called the meeting to order at 6:02 p.m. He announced that the meeting was being recorded for cable television and led those in attendance in the Pledge of Allegiance.

Interview of candidate, Reading Municipal Light Citizens Advisory Board

Kenneth Welter will appear for a brief interview for the vacant CAB position. The Board interviewed Sarah Parsons for the position last week. Mr. Welter has been a resident for 32 years and believes his professional and educational credentials, as a mechanical engineer who has dealt with energy-related issues, will allow him to contribute to the CAB. He is now retired. Board members thanked him for coming forward and said he is highly qualified for the position. Chair Dalton said the Board is fortunate to have two qualified and talented candidates to consider. Mr. Crawford said he agreed but felt Mr. Welter’s background was more closely related to the particular task. Mr. Connell said he favored the candidacy of Sarah Parsons given her professional and volunteer activities. Chair Dalton said Mr. Welter’s qualifications most closely match the position but Ms. Parsons has an impressive resume.

MOTION by Mr. Crawford, duly seconded by Chair Dalton: I move that the Board appoint Kenneth Welter to the Reading Municipal Light Department Citizens Advisory Board for a term to expire on June 30, 2024. Vote was unanimous.

Common victualler application, Loui’s Pizza, Broadway

The new owner of Loui’s Pizza, Gusedio Vasio, appeared before the Board. The fee has been paid. Mr. Vasio owns a restaurant in Stoneham and has worked in the business for many years.

MOTION by Mr. Crawford, duly seconded by Mr. Connell: I move that the Board approve the common victualler license for SE Pizza and Roast Beef, doing business as Loui’s Pizza and Roast Beef, 470 Broadway. Vote was unanimous.

Presentation of FY23 operating and capital budgets and spending plan recommendations

Town Administrator Robert Dolan submitted his proposed FY23 operating and capital budgets and spending plan.

Mr. Dolan reviewed the methods used to develop the budget and the principals by which the budget is formed, reflecting the Board’s goals and the community’s values.

He said the proposed budget would continue to invest in the maintenance and enhancement of our Town’s infrastructure and technology (strong capital budget and looking at state grant opportunities); create a vibrant economic climate that attracts and supports a wide diversity of businesses, cultural, historical, and recreational opportunities; promote balanced and responsible suburban design: expert land use support and outstanding citizen volunteers.

He highlighted work done to assist businesses, especially restaurants seeking outside searting, during COVID, and improvements to the common, the Pope-Richards Lynnfield Historical Center, and Town facilities.

The FY23 Budget Goals were as follows:

• Develop a balanced budget

• Limit recurring revenue to balance operating budget (no use of free cash, $60,000-overlay)

• Maintain aggressive Capital program

• Continue to build reserves for economic downturn (meet all Town financial policies)

• Continue to fund OPEB liability

• Reflect priorities of community

He reviewed the sources of revenue, including Property Taxes, State Aid, Local Receipts and Enterprise Funds. The increase in property taxes due to the statutory limits set by Proposition 2 ½ is $1,183,521. New Growth is estimated at $400,000 for FY23. He said this reflects the pre-Market Street expansion level of growth and this reduced amount must be reflected in the Town’s spending programs. He said the Town will receive a significant increase in state aid this year, and may even increase above the current projection being used by the Town.

Local Receipts includes: Fees, Licenses & Permits, Rentals, Motor Vehicle excise

• Motor Vehicle Excise makes up more than 50% of local receipts estimates

• Payments in Lieu of Taxes represents 11% of local receipts estimates

• Licenses and permits accounts for 12% of local receipts estimates

Mr. Dolan said car purchases and local spending have not been affected by inflation and other issues. People are dining out, buying cars and investing in home improvements, which all result in local fees, permits and tax receipts. He said he expects these revenues to increase as COVID abates.

Other Funds available for use include Free Cash, Stabilization and Capital Facilities funds

• Projecting tax revenue increase under the levy of $1,583,521

• Projecting increase in local receipts of $125,000

• Projecting increase in state aid of 10.12%

• State Aid FY23 over FY22 - $581,946

Mr. Dolan said the Town has very strong capital reserves and a historically strong free cash position.

Significant FY23 budget items include

• Projected 4% increase in health insurance, and additional $274,386

• School department increase of 3.5%

• Increase in Rubbish Contract 21.7%

• Increased Pension Costs of 9.4%

Mr. Dolan said the move of the Town’s health insurance to the state GIC program has stabilized the increase in health insurance costs.

FY23 Operating Budget Highlights

• Increase in School budget that meets the complex Post COVID needs of the schools

• No new full-time positions-Town budget

• Overall budget increase of 3.3%, a modest increase given fixed cost factors

• No use of free cash for operating budget

FY23 Capital Budget Highlights

• Major investment in capital with 48% increase over the prior year

• Capital Spending of $2,174,851

• Paving/Sidewalks - $550,000

• Drainage Improvements – $100,000

• Three F550 Dump Trucks - $225,000

• NPDES Year 2 Permit Requirement - $83,000

• Pillings Pond Algae Treatment - $25,000

• Police Cruiser-Ford Utility Explorer-$47,500

• Fire Station Dormitory areas-$95,000

• School Technology -$250,000

• Rough Cut and Fairway Mowers (Golf)- $168,906

Other FY23 Budget Highlights

• Recommending $150,000 to Stabilization Fund

• Recommending $100,000 appropriation to OPEB (Other Post-Employment Benefits)

• Recommending $50,000 to Capital Facilities Maintenance Fund

On the line-item operating budget, Mr. Dolan noted that increases to the Payrate Increase Fund is due to employee contracts not yet being settled. The Town Counsel budget has been increased due to some ongoing legal issues and court cases. Hours for the Health Department clerk have been increased. School bus and rubbish collection costs reflect new contracts. The budget also reflects a commitment to the School Department. He also reviewed the line-item capital budget, which reflects most of the requests presented by the boards and departments, except for a new fire pumper truck.

Mr. Crawford said he is happy with the budget and the commitment to building the Town’s reserves and the road and sidewalk program. Mr. Connell said the department heads and staff have supplied the backup support for all the budgetary requests and thanked them and Mr. Dolan for their work in developing this budget. Mr. Dolan said he is thankful for the Board’s leadership and support on these issues. Chair Dalton thanked Mr. Dolan and his team for their work.

MOTION by Mr. Crawford, duly seconded by Mr. Connell: I move that the Board approve the proposed FY23 operating and capital budgets and spending plan for the purpose of sending them to the April 6 public hearing.

Presentation of ARPA funds pending plan

Town Administrator Robert Dolan submitted the proposed ARPA funds spending plan.

• American Rescue Plan Act provides resources to local governments to respond to public health emergencies caused by the coronavirus.

• Lynnfield’s allocation is $3,885,490

• The Town must spend these funds by 12/31/2024

• Ineligible uses include debt, reserves, and pension obligations.

Mr. Dolan said a team was assembled under the direction of Assistant Finance Director/Julianne McCarthy to review ARPA requests and proposals. Ms. McCarthy reviewed the requests totaling $7 million, more than twice the available funds, and checked them against the eligible uses recognized by the federal government. The focus was in funding direct costs related to COVID, and then making the greatest impact on community services.

Mr. Dolan reviewed the below spending plans, and how they relate to the allowed ARPA categories. Administrative expenses were used to hire consultants to ensure the Town is meeting all the stringent federal guidelines for reimbursement. He said the largest investments will be to improve ventilation systems in the schools and Senior Center. He said this plan addresses the needs of the Town’s most vulnerable populations, youth and seniors. He said improved ventilation systems will assist in limiting the spread of viruses and other airborne diseases. Public Works Director John Tomasz reviewed the advantages of the planned systems and how it relates to the energy efficiency initiative that is underway.

ARPA Year 1 Projects

ARPA Year 2 Projects

Chair Dalton said that the plan provides for significant long-term benefits to the Town. Mr. Crawford agreed and said the committee did a fantastic job. He noted the school project was undertaken 20 years ago and that it is time to address these systems. Mr. Connell agreed that this plan reflects the needs of the Town.

MOTION by Mr. Crawford, duly seconded by Mr. Connell: I move that the Board approve the proposed ARPA funds spending plan as presented. Vote was unanimous.

Set closing date and time for annual town meeting warrant

MOTION by Mr. Crawford, duly seconded by Mr. Connell: I move that the Board vote to close the warrant for the annual town meeting on April 12, at 6:20 p.m. All articles submitted by petition must be received in the Town Clerk’s office by Thursday, April 7 at 4:00 p.m. to allow for certification of signatures.

Use of Facilities requests

a. Common, May 21, Lynnfield Library Friends used book sale

b. Common, May 25, Lynnfield Library storytime

c. Common, June 8, Lynnfield Library concert

d. Common, June 29, Lynnfield Library summer reading kickoff

MOTION by Mr. Crawford, duly seconded by Mr. Connell: I move that the Board vote to approve the Use of Facilities requests as presented subject to any conditions that may be placed on them by the Police Chief or Public Works Director.

MOTION by Mr. Crawford, duly seconded by Mr. Connell: I move that the Board adjourn. Vote was unanimous.

The meeting was adjourned at 6:52 p.m.