Appropriations & Oversight Committee — 2023-01-30

Agenda

1. Call to Order (17:00)
2. Public Comment (17:42)
3. Grants
4. GRANT-2023-3 : Workplace Safety and Education Grant as supplied by the Executive Office of Labor and Workforce Development (18:05)
5. GRANT-2023-4 : Acceptance of the FY23 Firefighter Safety Equipment Grant awarded to the Melrose Fire Department by The Commonwealth of Massachusetts, Department of Fire Services, in the amount of $19,000. (20:33)
6. Information Items
7. INFO-2023-10 : Request for American Rescue Plan Act (ARPA) funding update (2:31:14)
8. INFO-2023-11 : Update on the Status of the City of Melrose’s Finances (1:22:46)
9. INFO-2023-12 : An Update on the Status and Usage of Free Cash in the City of Melrose (23:05)
10. Adjournment (2:36:38)

Transcript

▶ 17:02 Leila Migliorelli: We are adjourned. Time is 7:31 on Monday, January 30th 2023. This is a meeting of the Appropriations and oversight committee. I'm chairwoman Leila. Migliarelli and joining me tonight our vice chair Jamal Dean and counselors. Snella garapay carmichetti McMaster o'briensky Stewart Williams and president Grigoraitis sex officio. This serves as a notice of a quorum for the record. In accordance with open meeting law this meeting is being recorded and broadcast live on mmtv. Now is the time for public comments and I will motion by unanimous consent to open the four for public comment public comment seeing no objection. We are now open for public comments. The portion of the meeting where anyone can speak to any agenda item

▶ 17:54 Leila Migliorelli: on. Our meeting tonight anyone online. There's no online at this time. All right. There's no objection. I'd like to close public objection. the rule first item We workplace safety and education grant as supplied by the executive office of Labor and Workforce Development tonight. We have Polina Lata director of HR and Jim troop deputy director of DPW to speak on this order. Welcome. Good evening. So we are here today to present the workplace safety and education grant that the human resources department along with Public Works applied in the fall of last year. The grant was awarded this past December in the amount of 8,200 and there is no City match required for this grant. The purpose behind the grand is to provide education

▶ 19:12 and through preventative measure to ensure workplace safety to reinforce best practices and ensure employees health and reduce any potential workers comp expenses and other Associated expenses with workplace injuries or accidents. The grant consists of two trainings that were identified osha10 training and defensive driving training in this trainings need to be complete by June 30th of this year. And therefore Gemini are here today to respectfully ask the council to accept this grant. Thank you any questions from the committee? Seeing none. What is the will of the committee? Motion to recommend for passage second motion recommend for passage made by counselor Karm chady seconded by counselor. Cinella all in

▶ 20:13 favor. Oh, no. Sorry roll call. Vice chair Jamaleddine councilor McMaster Yes. Counselor sonella. Yes counselor garpy. Yes. counselor Stewart Yes. Councilor crime Shady. Yes counselor bremski. Yes counselor Williams. Yes. President garitis. Yes. And chair Migliorelli. Yes. That's 10. Yes. Mission passes and will be heard at our next full council meeting. Next up is Grant 2023-4 acceptance of the FY 23 firefighter safety equipment Grant awarded to the Melrose fire department by the Commonwealth of Massachusetts Department of fire services in the amount of 19,000 welcoming Chief Kalina here tonight to speak on this order. Good evening, everybody. So we've been awarded this. Grant in the amount of 19,000

▶ 21:23 if approved this money will be used to further augment old SCBA equipment that no longer can be serviced. So that's the purpose of the of the grant. Adam chair. Thank you chief for being here tonight. I know this is I think the third or possibly fourth funding item related to the replacement of this equipment. How much more do we still need to replace to be up to so functioning? It's a expensive equipment. This will get us a little over the halfway point. For our in-service equipment to be replaced and then there's Spears and other backup equipment. packs bottles that'll have to be purchased. And what's the funding sources for that? What's the typical lifespan of the equipment? Like how often should we be preparing to

▶ 22:23 Leila Migliorelli: replace this? 15 years, okay. Thank you for the questions. Any other questions? motion recommend second motion recommend made by counselor Williams second and by counselor. Cinella Mr. Clark rule Vice chairman. Yes counselor McMaster. Yes counselor. Sonella. Yes. Counsel, gerepe. Yes counselor Stewart. Yes counselor crime s*****. Yes counselor bremski. Yes. Counselor Williams. Yes. President Grigoraitis. Yes. And chair Migliorelli. Yes, that's 10. Yes. Es and we'll be heard at the next full council meeting. So next on our agenda. We have three informational orders for the benefit of the public just revisiting these three informational orders that were first on our agenda in December 8th, as a

▶ 23:24 Leila Migliorelli: co-filer of all three of these orders. I want to remind everyone that the intention here was to shed some light on how the administration prioritizes areas of funding across the city. There are many competing priorities but a finite amount of money at the city's disposal. We need a greater understanding of how available funding sources are being utilized. So that critical areas of need are being met at that meeting in December. We saw presentations from the administration on arpa the American Rescue plan Act and the overall state of the city's finances tonight. I suggest that we pick up where we left off and start with info order 2023-12 and update on the status and usage of free cash in the city

▶ 24:01 Leila Migliorelli: of Melrose before I entertain a motion to take that out of order. I did want to point out to the public and my fellow counselors that there were several documents that were uploaded into our meeting agenda system. This afternoon. This includes a response from Mr. Delaroso regarding my email on 12:9 about the discrepancy between the city's approved school budget and the school's version as well as a memo from Mr. Delaroso regarding the overall status of the city's finances including information on the balances the stabilization funds. So I think after we have the info order given that there's some secondary information about the overall state of cities finances we can address that then so I will now

▶ 24:39 Leila Migliorelli: entertain a motion to start to move info 2023-12 and update on the status and usage of free cash in the city of Melrose. So out of order second. Okay motion made by counselor sneller seconded by President Grigoraitis all in favor. and he opposed so now info 2023-12 is in front of us. There as we have mayor Broder here tonight, Mr. Delaroso anyone else you'd like to have joined the podium. Feel free. Good evening, Madam chair Member of the committee. It's good to be with you this evening. I'm happy to take any questions you might have as the chair pointed out. Some information has been supplemented vis-a-v free cash. I think you'll know that Margaret Fleischman. My chief of staff is instrumental in both

▶ 25:43 Paul Brodeur: the arpa planning and the tracking portion of the of the free cash. So what you will what starting with our conversation or the conversation in December you now have a a small amount. I suppose a supplemental information in the form of a memo and a fairly extensive. Spreadsheet that tracks, I believe every precash appropriation as a proof by this body. So 20 since fy20, thank you. Thank you Mr. CFO and and the status of each of those happy to take any general questions or anything specific to any of the allocations. If you're looking for a I guess I'd say a higher level discussion on free cash. We are certainly prepared to do that as well from the perspective of how we plan and how certain DLS a

▶ 26:50 division of local Services of the Department of Revenue suggests that it's the best way to handle free cash. Thank you, Mr. Mayor. Right now. I have counselor jamaladin in the queue counselor. Jamaladin and then president Grigoraitis. Thank you madam chair. Thank you, Mr. Mayor and Mr. CFO for being with us tonight. We know. Now, how much do we have? How much money do we have in a free cash? But yeah through the genome we have not been advised yet from the Department of Revenue. We have been communicating with them over the last two weeks and we spawn into a couple of questions. I think I mentioned it before what they're working on now candidly is just so trying to finish up and I'm just talking Statewide.

▶ 27:43 Maya Jamaleddine: It's helping communities set the attacks rights as well as their schedule A's which is the summary of a revolution expenses for each community. So sometimes the free cash doesn't get the top of the totem pole and what they work with these other things to get down. Then they then they would spend more time on free cash determinations, but we're still waiting. Hopefully we'll hear shortly certainly as soon as soon as we know you'll know so do we have an expected time on when they would get back to us? It's just because we are receiving request, you know, like you you're gonna send us and requests for free cash and we want to make sure that we know we have the pool. Knowledge of how much we're

▶ 28:25 Maya Jamaleddine: gonna allocate versus how much we have sure I would defer to the master on the on the on the long experience. Yeah with this, but honestly we expected to have it by now. So it's just a little bit of a waiting game could be any time. I would I would be happy mayor to reach out to the Department of Revenue Division and local Services tomorrow and ask that they have some type of time for him. They can give us I'd be happy to do that again. and this is a question that I believe we mentioned that before by just wanted to put the sake of the public the money that was allocated for departments had or commissions. That was not used and we know some of the commissions did not use their money because of the pandemic or because

▶ 29:12 Paul Brodeur: we had vacant vacancy in departments like vacant positions. Where does this money go? Where does it live? Try not sure again. I will defer to Mr. Della Russo in case I say it wrong but two things can happen to avoid money going back into free cash. It can be. Encumbered or essentially set aside for for later spending. We try to discourage that the pandemic notwithstanding. It's a little bit of a different set of circumstances, but we don't want to see folks, you know kind of hoarding money piling up money you all we propose and you guys authorize for a reason and we want to see that happen. As expeditiously as possible, but if ultimately if things don't get spent as a general proposition, they would go back into free cash to the

▶ 30:08 Maya Jamaleddine: next fiscal year. It's all right. Yeah exactly what happened. If in fact there was no outstanding contract. Typically that would allow for encumbering then we would close out over the project actually finishes and and this proceeds and maybe some proceeds at the end small amount. Typically, we would close that out to the general fund. So it becomes next to you as free cash or start the process. Okay, and so Just to give an example. For instance if Human Rights Commission did not spend all their allocated money for their commission, which is 3500. I believe they did not spend it the money that was left would go back to free cash. If in fact with the chair for clarification if it's in their budget, if it's in the regular operating budget and they don't

▶ 30:54 Maya Jamaleddine: spend it then we would close that would be What's called the turnover or turn back we would turn that over. So that would become free cash for the next year. Go to go towards that don't spend it. Yeah. Thank you and How are we tracking the money that we allocate to different departments from free cash. Like do we have any? due date for those like where if they didn't spend the money or if they didn't do the project we get the money back or anything. That's an excellent question because one of the things that we always struggle with is that sometimes if a project isn't completed it's not because of lack of effort or will it's maybe be due to the fact that they can't get contractors to come in and do that particular service at that time

▶ 31:47 or they're waiting for materials and there's a delay. So but we try, you know, the great thing would be to to say that after by the end of the year if you don't if you haven't spent it or you know, there's no Commitment to spended in that sense that we would close that out to the general fund again. So it becomes free cash for the next year. But typically we try to discourage like the mayor Des indicated people just getting free cash up, you know approvals and not using the money timely. We don't want that either. So there's going to be a balance here. So we always strive to encourage them and then at the end of the year candidly we go through those that are outstanding and we actually we try

▶ 32:29 to check them off to say which ones really haven't had any activity and why and make a determination from then it could be one of the above factors could be a number of items as to why this money has not been expended. So we make that that knock on the door for the Departments to see where they stand because again, we discourage them carrying over money that doesn't have to be carried over. Eat that means your department. Yes, that's correct. Okay, so if that's for departments, that's right and about for commissions who would do that. Is it still you or again? If it's a free cash item? It would be us if it's a department and we typically if they're not if they haven't spent their money. Again in any any department or

▶ 33:19 they haven't spent the money they had it be a reason as to why they didn't spend it and if it's just sitting idle that's another question altogether because as we go it's funny you said that because as we look forward to 24 right now and reflect on what's going on in the year, we're in 23. So if we find that we're not expending to the level or the growth that we anticipate in the department. We would ask them. Is there any reason why is there timing problem? Sometimes if you look at some of the budgets that we have on the detail? The munis right now, which should be about at the Midway point if sometimes you see a higher number say it says 70% instead of about 50% It may simply be because of timing not everything

▶ 34:02 Maya Jamaleddine: is 112 salaries typically are in that sense. But when you have some items like Insurance, you may pay the insurance bill right up front in the first couple of months and it looks like you've exceeded at 50% and that's not the case at all. So timing plays a big role in that so we're sensitive to that but that should not be the rule that should be the exception. So are we expecting when you have you know, you will have The number of how much money do we have in free cash. You would be able to give us some reports about what department have some money left or what money we're gonna reallocated to free cash. Well, Monday determination comes that we the amount of free cash that we have then what would happen is the mayor would

▶ 34:47 send down his ideas on where he'd like to see that money allocated an actual program. And in that case he would make the tremendation as to which departments he wanted to prioritize and provide that free cash too whether it be the school department Etc. We have some obligations that we have to pay which free cash. I don't want to lose sight of that the most important one of the most important ones is in school and I I'm sorry. It's no one ice deficit. We don't want to go into the next year with the deficit and snow and ice which means you owe money for this year's storm activities because that automatically takes dollar for dollar away from what you can raise in the next year towards your regular

▶ 35:27 budget. So if you have a million dollars deficit in snow and ice at the end of this year and you have a news free cash with some funding to dissipate it you're going to start the new year losing a million dollars towards your budgets just because you have to take care of that first. You have stabilization funds you want to make sure your contract stabilization funding particularly the capital fund of funded properly. You have police and fire overtime. We may see a need to supplement that given the fact that it's been very difficult and both Chiefs can tell you that to hire new Public Safety offices. But in the meantime, you have to provide the service that technically drives an increased usually in overtime.

▶ 36:07 Maya Jamaleddine: Right, so I understand that and I just you, you know going extra money to explain that to us, but I wanted to have a clear answer of when we would be able to have a full report on what is what money was not used and the decision was made to reallocated to free cash. Like when when does that happen? That would be that would be at the year and fiscal year and probably I would guess. The end of August you'd be able to provide you some type of report like that because we have to do the closing entities. We have to be running addressing entries and sometimes candidly when make sure all the bills are paid within 30 day time frame. Okay. Thank you sir that you I think it's another part of the discussion tonight. You're

▶ 36:53 Paul Brodeur: going to be doing year today. Yes. Yeah that's certainly gives you the trend in spending it with all the caveats and Mr. Della Roots mentioned around some things you spend a lot of front some things you settle up at the end of the year personal costs outside of overtime or fairly regular little bit more predictable. Thank you. Thank you. Thank you Vice chair Jamaleddine president Grigoraitis and then councilor Williams. Thank you madam chair. Thank you. Both for being here tonight. My questions on free cash are definitely more. High level and I'm recognizing that in all of these conversations that we're having for pretty much everyone on the council with the exception of our Elder Statesman counselor McMaster all we know

▶ 37:38 Jen Grigoraitis: in governance in the city of Melrose is a global pandemic, right? Whatever the heck this now is and I know Mr. Mayor that's all you really know very good months. So I'm I'd like to get a sense of you know, we did a look back of three years. But you know, what is typical? What is normal? What do we need to kind of recalibrate the way we do things so based on my back of the napkin math. It looks like we currently have I'll use the language used here a balance of about three million in free cash. That is again. It says like balance meaning that project is still in progress how I read all the chart. So whether that's yeah encumbered whatever is that in your both of your experience, is that typical is that

▶ 38:24 Paul Brodeur: Lower than normal higher than normal. I'll take the first and then and then defer to him on the on the longer Trend because to a point this is the only Universe I've kind of lived in in terms of City free cash and I wouldn't say this as a general proposition, but it's a review the voluminous spreadsheet some of the some of the pieces are obviously covid related like I would just looking to Vehicle procurement who you've seen there are some pieces in there that haven't come to fruition yet. And that is absolutely a supply chain thing that we see not just in free cash. We start with both our most recent fire truck procurement as to some of the other pieces some of the softer pieces. I would defer to

▶ 39:14 Mr. Della Russo on the trend over time versus what we've kind of experienced in in this current kind of challenging procurement and spending environment. Yeah, if I made this look at some of the vehicles I think that are in there too. They're high ticket items police Public Safety delivery dates have always become an issue. I don't I don't really believe there's any hard podcast rule on that again. It's just a matter of just like we're doing this evening is follow up stay on top of it. Make sure everyone not only the person or the department that's be small. So for the project understands, there's a lot of eyes on that because the worst thing you want to do is provide Revenue in my opinion to a

▶ 39:58 Jen Grigoraitis: purpose for which it's not going to get addressed and there's so many other needs that we have in the city. You would hope that those that you know are able to to receive funding would really push his eyes. They can't to make sure that gets spent and spend time. and I think you both and I I don't in any way question the department heads pushing to get projects that I'm sure when you're told that something you've been waiting for is going to be funded that's you know, the people there's a desire to protect that money understandably. I guess I just the vehicles delays with the turf field delays with the Memorial Hall all of which are related to supply chains to the huge backlog in the construction industry like at some point do we just say?

▶ 40:45 Paul Brodeur: We can't do as many things as quickly as we once were able to do or because if I mean I have to say looking at a spreadsheet saying that we're gonna have a turf field redone by September when it's January and we don't have a bid out yet feels unlikely based on the other things that we've heard here over the past two years sure. No and a very fair point and another challenge that we have. To be perfectly candid in terms of both the supply chain and really our institutional capacity to manage projects is a big deal. I only mentioned that because of the opportunities and challenges in the inflation reduction act principally, which is really a climate bill. It's not really it's all due respect to the folks that name these

▶ 41:37 Paul Brodeur: things. It's a climate bill that has been described as a tsunami of money coming to State and local government. It was your hardcore government Geeks. It was a huge topic of conversation at MMA and it's some other meetings because really no one at the municipal level as any confidence that they have the skills ability resources to go kind of treasure hunting for those kind of things because the it's really insanely robust. So beyond the obvious Climate initiatives. I've got to believe there's money out there for things like Energy Efficiency when we do a renovation or a rebuilding project, but it's in particularly given the fact that it's the federal government. It's a much more challenging layer of

▶ 42:30 Jen Grigoraitis: bureaucracy and not a chain and things like that so that it's it's another thing to think about as we as we think about our our free cash for sure. Yeah, and I would hate to see us leave money on the table, right? There's only so many bodies to do so many things and it feels like we're getting to that point where we almost can't dig out of the backlog just a few quick more administrative questions does the city after offer a prompt pay discount to vendors? Is that just something that happens at the state level? Where if you're there able to get a slight reduction on their bill if we pay the bill within a certain number of days I'm surprised at it's if I'm reading this correctly and I don't quite know what balance means that it seems like there's many things. We don't

▶ 43:15 Paul Brodeur: pay any portion of the bill until the project is fully completed is that am I misunderst like it says Memorial Hall 1.5 million and that the balance is still 1.5 million. So does that mean we haven't paid any portion of that project to date? if we haven't received an invoice for the I have to make that we could find that out is to why I was to take a little bit of a guess on that because people call that they were kind of two tranches of funding from Memorial Hall, and I don't know if The 2.5 and I also don't off the top my head remember the source because one was free cash and I think one was oh and in free cash. The other was the note, correct, you know, it was a boy. So that that piece of the billing?

▶ 44:02 Paul Brodeur: Wouldn't show up in this paperwork because it doesn't touch okay. So when it says like $400,000 awarded in free cash for the generator 400,000 is the balance project in progress. Does that mean we haven't paid a single invoice related to that project? I assume so but I don't know. Yeah. And so we don't we do have a prompt pay discount or that's not something that you know, I haven't I don't believe we have this. I think we go. I think that when we do things like that and it's more of a a stick than a carrot that account I will say if you don't part of the part of the higher level discussion we need to have is really about Capital planning and how we go about it as I think you all know we have the Collins Center helping

▶ 44:52 Paul Brodeur: us look into that and take a more. Rational a little more long-term view of how we address our Capital needs which we honestly I think we all know sitting where we are looking out the window where we are. We don't always do historically haven't done a necessarily a terrific job on that and that's both the big ticket items and some of the and some of the smaller things building that into a, you know, a true regular routine Capital plan recognizing there's always going to be bigger kind of outliers potentially if we build the new school that's a little bit of a different animal than maintaining a cruiser Fleet say but we need to do a better job with that because if we do it in a routine way as opposed to

▶ 45:39 Jen Grigoraitis: a little bit of an opportunistic way in terms in terms of free cash. I do think it leads to these kind of potentially. Anyway these kind of delays or irregularities in the process. I could not agree more. my final question is just Mr. Del reuser. Can you just remind us what's the cities procurement policy? What are the thresholds at? Wish it triggers like three quotes versus putting something out to bid. Is there an ability to do sole source on contracts where you don't have to competitively bid it. I'm not I'm not familiar with what the city's procurement policy is. Yeah all the about the 0 to 10,000 is good business practice. 10 10 and up and then you would want to get at least three quotes. Hopefully you'll get three responses

▶ 46:26 just because you put it out and you ask for three doesn't necessarily mean, you know, and I get through you might get too you might get one and then the higher obstacles into the total lump. It depends on what the project it is construction was related, whatever the case may be, but I would go to the higher levels. But yeah, we fall master and large Chapter 30 B, and we expect that. The contracts that come to the my office to be approved signed fun number Etc that they all check off that they have complied on the phone and signed off. I'm the mirror and I have to initial it as well myself in the city solicitor that they did comply with dirty B. We don't sign it. There are some sole source exceptions like the

▶ 47:04 Ryan Williams: state bid list and then some they're just some things under Mass law that just don't have to be procured. Thank you. That's helpful. Thank you. Those are my questions at this time. Thank you. Madam. President up next is councilor Williams then councilor Karamcheti. Here. Hello. Thank you all for coming here tonight. I wanted to follow up a counselor Gregoire said because it was very similar to question that I wanted to ask you. I want to take the opportunity to dig in a little bit. So she was mentioning delays. Right and we hear a lot that projects are ready to go and then you know a month two months three months a year counseloritis and I both have a crosswalk that goes from seven to six that's like three years on the

▶ 47:48 Ryan Williams: list of projects to be completed. It still isn't painted by the way. And so I can't it's hard to it's hard to believe it's money problem. Right? Sometimes it says you have pointed out both of you. It's a staffing problem procurement problem. Yeah, but we've got a lot of these things piling up the Lebanon Street project the tip project which has been perpetually almost ready to submit for like five years or six years, you know, we learn that the sidewalks on Bay Street are gonna get completed on schedule because we don't have this curved curbing for the road. So I heard you that we don't want project leads and department heads to execute the project. We don't want I'm sorry. We don't want them to ask that's exactly what projects we don't

▶ 48:32 Ryan Williams: want them to ask for money for projects. They can execute. What I want to know is is there a formal process wrapped around this so and I want to give you an example. I have worked with municipalities where they have a form that everyone hates which just is fair. It's very dense and it has these checkboxes have you contacted the vendor and do they confirm materials or available within you know 90 days? I don't know if that's even realistic anymore. Maybe that number is long or maybe it's six months from now. What stage of design are we in? Is it 25% 50% you know and you justify. Yeah, right you justify the funding request in part by having this form that says we've done all this work and we For sure that these things are ready to

▶ 49:23 Ryan Williams: go and and for internal accountant controls it helps you to sort through these projects and you know, what's a wish list and what something that really needs a little bit more due diligence before it's ready to be executed. So I'm curious and I it's bureaucracy, right and bureaucracy is kind of the death of innovation sometimes but it also protects the public interest, you know, so it's like Balancing Act. So is that something that we're doing now? Is it something you'd be interested in doing or thinking about doing? What are your thoughts on this? I guess just in my perspective. I think anything we can do to particularly come and forward with any new initiatives. I think it's going to be really telling that we

▶ 50:00 put another layer on top of it and I'm not exactly sure how much form that should be. This is an interesting concept, but I really believe that given the fact that we have a limited management at times to handle multiple projects that if it can't be entertained that this will either be done promptly internally what we have to go out to a third party and get a Venda then so be it but I think we should we need to know that type of information up front before the project actually gets approved that we might thought I think formalizes that is essentially what we do for our part. Yeah, right. Yeah. It's that kind of process. Those are great points though. Thank you. I only had one other thought a little bit of semantics but

▶ 50:43 Ryan Williams: I I think it's I think it's important, you know, so we have in the free cash request. We have a line for traffic calming. and I want to retail very quickly what our friend Pete buttigieg who I know you're a fan of At the US voter form and he wasn't even a candidate anymore him former mayor now ahead of us Department of Transportation. Here's what they say about the definition of traffic calming. Vertical deflection which means that something causes vehicles to move kind of up or down or side to side that speed humps, raise tables raised intersections horizontal shifts where the sidewalks kind of crowd the street in a little bit enforce people to slow down roadway narrower narrowing. These are things that passively reduce the

▶ 51:27 Ryan Williams: speed. Excuse me actively reduce the speed and enhance Street invite environment for non motorists. Okay. So when we when we look through this website nowhere on here, do we see rapid flashing beacons traffic signals pedestrian crosswalk buttons? We don't see speed feedback signs. Although those are a little bit of a gray area. Okay, I can I could be argued a little bit in the favor of the speed feedback sign, but then when we look at the free cash requests and the way that they're described these are exclusively those things. They're rapid flashing beacons. There are a few speed feedback signs and a lot of signal upgrades. So my feedback is that I am really excited that we're spending money on these

▶ 52:09 Ryan Williams: things and I want us to keep spending money on these things. Okay, but we don't want to call them traffic calming because it's confusing and you know, if you had a line for two hundred thousand dollars for planting trees and you came back to the council and said we're happy to inform you that we have planted flowers around all the trees people would kind of go. Well, that's not what we intended at money to be spent spent for so since we have a traffic calming program in the works, which I'm very excited to hear more about in a few minutes. I would recommend that when you talk about the signals anything that a person has to touch or that has to you know, use electricity to be activated. That's not traffic calming.

▶ 52:46 Manjula Karamcheti: That's just signals signals are great, but they're not traffic calming. So and that can help us think more clearly about what money is being spent on traffic calming and want money is being spent on signals. fair enough absolutely I have nothing else. Thank you. Thanks councilor Williams counselor Carm Shady. Thank you. Thank you both for being here tonight. So much about free cash. So I think Some of the questions the other counselors asked I just want to sort of say back to make sure that I'm understanding and sort of I'm able to synthesize what you've said. So in terms of the free cash that we have and what sort of been earmarked for certain things. some of the reasons why that money hasn't

▶ 53:38 Manjula Karamcheti: been spent yet are sort of the ability or time available of staff to manage those projects and see them to completion. So that's one of the issues that why we have that three million dollar balance on free cash. It's I don't think it's the premiere issue. Okay, so that is one another is sort of the issue of a vendors and timelines changing related to availability covid and that kind of thing. But when it comes to like is that the same for things like tree planting traffic calming and just like Paving the streets and the potholes and those kinds of things and why I'm asking is and I will give one specific example. So in word one, we have the beautiful new accessible playground, but the crosswalk to get to

▶ 54:35 Paul Brodeur: the accessible playground. Doesn't have a ramp. It is a curb so Wheelchairs and whatnot cannot access access your playground because they can't get there. And so I think I'm just trying to understand even within the projects that we have. How are we prioritizing to make sure some of that stuff gets done? sure, I mean specific to that project, you know, we had a decision to make about whether or not to essentially soft open or hard open that the street and access Improvement into the park itself with the last things to to go and that's what we said at that time. This is a soft opening and in the spring. We will be able to do kind of the full complete what really truly will make it much more accessible.

▶ 55:25 Paul Brodeur: And that was just Germaine to that project and the time and we certainly were to a certain degree. I don't want to say hemmed in because I don't think it was that big a deal but that was definitely going to happen last after you know, DPW did the prep then the install some of the finished work and then that and you know, sometimes it's sometimes it's seasonal for sure which is what we ran into to a certain degree in this case and it's a very specific example, but sometimes multiple players have to kind of be in on the project and if one of them Doesn't do a good job, then that affects all the downstream work. that is one example, and another one that I'm sort of wondering about was there is

▶ 56:17 Manjula Karamcheti: free cash a lot at an fy21 for Di work and In looking at sort of I you know, I was on the Dei task force. I don't think that task force has met in about a year. And so I don't know why you think that that is incorrect. Well, I haven't been invited then for whatever. Well our memories that you resigned you thought you couldn't meet those commitments not I mean that is an accurate as an accusation literally haven't gotten an invitation for meeting but that is it right asking about why like what is happening why you know only $10,000 of that money has been spent and again just in the examples of the managing of the projects and moving things forward and my question is really around. Is there a time limit of the free cash

▶ 57:07 like Things appropriated at why 21 fy22 at some point does the Free Cash become like not accessible anymore or do we look at it and say well that project isn't gonna happen and we're not and allocating it elsewhere a different Patrick to make sure I get the technical people. It's an excellent question. The reality is that we it doesn't vanish. It doesn't disappear. We don't close it out unless we have real gun justification for doing so Typically we again as we see here when you start to look at 20 21 you start to say I'm going to fy24 now. Why are these ones these older ones still there? Is it something I'm missing. They not being it's not being closed out for a reason. So those things become harder to answer the long ago longer

▶ 58:01 it goes on. So you absolutely right. That's why I am really all up and and forward and indicate in that, you know as an indication of some of these and again these a lot of these are not the department heads doing there's you know, supply chain the whole nine yards, but for the ones that we think may not be the case then I think in the future just to ask a few more questions as counsel Williams in the cave right up front before we approve it to make sure it's going to get done in the time frame that we anticipate is reasonable. It becomes unreasonable. You say why we're doing this. It should be a reasonable expectation that kind of thing. I think we're all intelligent enough to know what's reasonable. What's unreasonable. So that's

▶ 58:46 Manjula Karamcheti: a great question. And again, it's something that as they age out we get we get more thoughtful on clearly. And then my last question is sort of regarding. The amount of free cash that we end up with every year. I know it hasn't been certified for this year yet, but generally speaking. It's a plethora of money and I know we get excited about free cash and thinking about how we're going to spend it. And we have even a three million dollar balance right now according to president Grigoraitis math for us. So it's not lost on me that the school committee is looking for a 2.5 million for the school budget and we have a three million dollar balance of funds. We haven't we haven't spent over the past few years. So

▶ 59:38 Manjula Karamcheti: I get I've asked this question before and I'm going to ask it again. At what point? Is free cash too much free cash. And what amount of money can go into our operating budget? So we're able to pay for staff. We're able to pay for things in a planned and purposeful way as opposed to waiting for the free cash to come along. I'm just sort of Curious about that and would love to like hear a little more about your philosophy on it. and because it it just brings up questions for me and I use the example of Maslow's hierarchy of needs if we need money for foundational stuff. Why do the self-actualization we need a solid foundation first? And so just would love to know more about that. all valid questions and if I may

▶ 1:00:38 to the chair, but the product good best practices that you want to have five to seven percent of your operating budget and free cash. Assuming operating budget is a hundred million just in theory. So you're talking five to seven million dollars. That's those of the Department of Revenue Division and local Services guidelines. They actually update used to be three to five percent now they've increased it. I'm sure there's a lot of reasons for that. the the Melrose case which I call it the Melrose case is that The city at one point had I think I mentioned it before 2.9 Million negative of free cash. 2.9 Million negative you had no money in stabilization of any kind. So in order to make the budget work

▶ 1:01:31 for fiscal year you ended up often times reducing staff and making some real bad decisions at the time that nobody wanted to make so the the change from then to now is dynamic. We consider around here and actually talk about Doing projects and the like and providing Capital Equipment that likes we've never had before in the history of the city. Also. You also have over eight million dollars in stabilization fund. You didn't have that before you had no recourse to go anywhere for anything free cash. Originally was designed it was the only only opportunity a community had to fund something after the budget was set you set your budget you go into the fall now, it's January. Yeah crisis occurs. What do you do? Where

▶ 1:02:24 do you find the money free cash typically was the only Avenue for that to happen. So the Department of Revenue said hold it we want to ensure that communities keep it in mind that this is their gent a lot of them a lot of money, but some communities don't have stabilization funds believe it or not. And don't I don't know why I'm glad I don't work there but having said that So they're mindful of that. They want communities to have an opportunity to have a revenue Source once the tax rate is set. So that's the purpose of it. As far as Melrose goes. It's always too high. No, of course, it's not you could take away from you could increase your local receipts contribution. Typically, it's about 75% of the prior actual.

▶ 1:03:12 That's the standard. We've always used here. Say you go to 80% or 85% now, so using more of those local receipts. Um, what you're doing is you're going to be do share of Precast clearly, which we're going to talk about tonight with the loss of cannabis revenue, for example, that'll play well. But you're also exposing yourself in a way. You don't want to be exposed. And I tell you what that means. when the state aid declines media We've had that happen multiple times. Where do you go? Do you open your budget up and say now? We have to cut we don't have that problem here. Do you know why we have another problem here since I was back in 2004 because we budget so conservative and in that sense, which is conservative

▶ 1:04:00 is a good word for me. I love that word that I don't have to come back to you or say we have to lay out three or four people in mid year. We're gonna make these terrible decisions because we were so tight and when the state went down and they pulled it away even mid year like they've done we have enough Revenue to sustain the operation without having to reduce staff there's value there because people want to know that the trash is going to get done things are going to get done regardless because they're paying for it. So you provide a cushion that other communities don't have so once you pull that cushion low make it lower now you exposing yourself to potential that, you know, negative consequences Financial.

▶ 1:04:42 You don't want to undertake. Look what's happening in the economy. Overall we talked about it probably later on. You know, there's something some say this recession now with the will be shortly. Well, if you think it's not going to impact us trust me you will. Motor vehicle exercise gets hit males people don't go out as often to eat. They cut back. We see reductions in building permits because people put off that porch that they were going to put on this year in addition to the house. So all those things play into this. so and again some things like that. We can't control that. Mom cannabis, which we'll talk about, but I guess I'll bring it up. Now. We took in almost a million dollars in the end. FYI

▶ 1:05:24 22 Right. Now the way works. I'm I can't count on any money whatsoever. For that to happen now that that crisis which it is at financial and it's own way. Occurred mid-year I would just found out about a month ago. Not even well, I've been I had budgeted 650,000 in cannabis Revenue. What do we do now? Is have I raised my hand am I in my concern? No? Because I know the way that I budget book will cover and what the city will be. Okay. However, it doesn't take away from the fact that we just lost potentially unless the legislation changes in the summer. We leave a million dollars and in total revenue, I mean that was on you know to a local receipts that that's a lot of money to the city and that's a significant hit to free

▶ 1:06:16 Manjula Karamcheti: cash going forward. So again you position yourself to win you position yourself to be financially stable and to all honestly to take on these negative downturns. There's one right there. You have the economy on top of that. And you have to really be sensitive as to what you could potentially do by reducing your your margins to the point where they're just too thin. so just and so I think what I'm hearing you say in your expert opinion as someone who has really turned around the city in terms of what the finances were you feel pretty strongly that free cash and sort of stayed the way that it is the amount we have is the right amount and shouldn't be shifted. The I think the I think it's a great question. I think

▶ 1:07:04 the percentage allocation that we utilize of local receipts towards the budget which we can talk about tonight is important you can if we're using 70 not higher than 75% of local receipts of the previous receiving fiscal year that closed if you want to in a year or two say that they can use 80% or 85 because they want to get through a rough time that we're going through with the knowledge that you're going to build that back down to the, you know closer to the 75 Mark again over time. That's fine. But you have to make a commitment to do that because once you draw down it's gone. To apply that block for any budget it's gone. So unless we have a new Revenue, so it's coming in to take its place

▶ 1:07:46 Paul Brodeur: you just diminishing your capability to fund your city, which you don't want to do. That's why you have a double A Plus. So a couple things that's we kind of started the marijuana story in the middle. Yes, everyone know what's going on with that. It's for real quick for the folks at home. Marijuana essentially delivers two pots of money to the city one is an excise tax piece, which will continue the other is through a community host agreement and through some legislative reform and some other potential actions that money we can no longer expect to rely on because of again because of certain acts of the legislature and reconsideration of what the true impacts are so we cannot count on that money anymore to the so the bigger kind of philosophical picture,

▶ 1:08:36 Paul Brodeur: you know, it it is a choice, you know, what we do in and how we do it and part of the piece of with the delays to one side, even though they are relevant and important to think about in terms of ability. To use that cash most effectively in real time when you take a look at what we do with the free cash over the last three years and really historically over the life of the city. It is not too much. Aspirational stuff or that the top of the pyramid stuff. It tends to be things like vehicles or in the case of the schools some of their upkeep. You know about over three years a half a million dollars. Plus I want to say on curriculum materials to You know help the school meet that color a semi-capital expense.

▶ 1:09:37 Paul Brodeur: It's kind of a it's kind of a tweener. You always need to renew curriculum materials, but that was just a big hit that they can't solve or we can't solve within our current budget so free cash becomes a place to do that, you know, we can we can definitely put more into operating we could conceivably I suppose put less into operating but the downstream impact is less flexibility a little bit more risk aversion. Let's say as we think about the capital site ideally again going back to that whole idea of low level anyway Capital procurement reform ideally that becomes less of a factor because you see that as part of a different operating plan. Does that make sense? Okay counselor, Gary. Thank you. Thank you all for being here quick

▶ 1:10:42 Mark Garipay: couple quick questions the delay in the in the school budget finishing the 2022 school budget. Did that have any impact on the certification of free cash this year? Did that delay the certification at all? No. okay, and I don't know if you have the answer for these two questions or if you can get them if you don't. One is regarding the Sylvan Street projects that it says it's going to be done by the end of 2023. It looks like. Did we get the FEMA grant for that? Because that was the grant that we applied in 2017, I think. 2018 piece right? Okay the tip I think I was the one that was going through the cemetery connecting in over the pine Banks. I mean be confusing with a different product because there's one

▶ 1:11:33 Mark Garipay: that is in. that what I believe will run we're looking for reconsideration because we had a an issue with the feds on that and a bloated change of shows if we don't get the FEMA Grant which was a larger cost. Right? Well this free cash money come back to us. I assume so, but I want to check with the lane know about is there some kind of other thing that needs to be done something, you know, a lower level of mitigation or Improvement that we might use that money for I think there's other thing other projects down the road in the cemetery for expansion. Yeah, which is other things going on down, right? and then president Grigoraitis brought up the turf field Fred Green. And in here from the notes.

▶ 1:12:22 Paul Brodeur: This Fleischmann said that it should be going out to bid looks like the beginning of December. Did that did that go out to bid? So it's kind of a two-piece thing that the design has to go to bid. This is a little bit of an unusual project because of memory serves you the materials might be available on state bid list, but the install has to be procured don't hold me to that. But I know there was the issue there is an issue with delay in speaking to miss Bell and she has made it abundantly clear to the folks. They're doing this work that it has to be done. In the summer, we're not interested in a spring or fall project. We need the fields to stay online. During fall and spring Seasons. So my concern is

▶ 1:13:13 Mark Garipay: with that in the in the bid that goes out. Can we make sure that there are some sort of penalties if they do not like we had a lot of trouble with some Paving issues this year that would delayed. because if this does get delayed We have a school budget. That's Balanced we have a strong enough real impacts in terms of finding alternative sites, and I'm assuming that this will increase our transportation costs for any usage of that field if it gets delayed. That and I would expect. Unless our Middlesex League friends are quite. Generous, I would assume that we would have to pay something for access to Fields off site as well particularly with Stoneham already. offline hopefully that won't line up perfectly if there's

▶ 1:14:05 Jen Grigoraitis: any way you can get us an update on on that and Just make sure that we are covered for any penalties in that because we can't absorb any additional costs because of delays, especially in the school budget. So, that's all that's all my questions. Thank you. Okay, anyone else for the first time? I have President Grigoraitis and Q. Thank you madam. Chair. Um, I I just wanted to follow up on Council Carm Shady's questions, which I really appreciated you asking and the conversation about, you know, free cash versus no free cash. And I know it's a conversation I've had with both of you and appreciate especially you Mr. Delaroso and your service to this community and recognizing where you took us from and I

▶ 1:14:53 Jen Grigoraitis: think there's a universal agreement that no one ever wants to go back there. I just want to acknowledge that there's it's a Continuum of risk right in all of these decisions that we're all getting paid big money to make and there is zero risk, and there is way too much risk and anything along that Continuum comes with consequences and I I very much hear we want stabilization accounts. We want to be fiscally prudent and fiscally conservative to use your words. I also know we are all very much feeling the repercussions of a lack of sustained investment in our community. We have school buildings that are you know, 100 plus years old. We have the fire station that's making TV news. So I I just would like to see us get to a place where we're taking the totality of

▶ 1:15:37 Jen Grigoraitis: all of that knowledge and expertise and thinking about what do we do now in this moment and do we need to recalibrate or rethink how we do things not go from Being completely risky and crazy but is there somewhere along the Continuum that feels like the better place to be for today's problems for today's challenges and I appreciate that you're both here having this conversation. I know we don't need to have like a large philosophical discussion on a free cash info order. But I I just I know I can say that's what I really want to get us to because I feel like those are the questions that are coming from the community and quite frankly from within my own home about kind of what is the trajectory for

▶ 1:16:16 Paul Brodeur: this community and how do we get to a different place? Point will take and that is a yes. There's a lot of layers right to that question and The history of the community I think over the long term is doing that is living in the moment. Oh my God, you know, where is the if that were not the case keep gesturing at the fire station. We wouldn't be having this conversation about the fire station because there would have been some kind of routine investment over time or a replacement plan over time and that is just not the way we've done business and in certain respects for good reasons because of the money because of the revenue and it is part the we always try to do I think with maybe a little bit of a different approach exactly what

▶ 1:17:08 Leila Migliorelli: you're describing but was starting to hit some walls, right? Thank you. Thank you for those comments. Thank you. Mentor thank you anyone else? I have some questions before we close out. There's just one point of clarification fellow counselors. Ask this question a number of different ways, but just to clarify. So if we're looking at the free cash spreadsheet over the last three years has been about 15 million dollars of fifteen point four five million dollars of free cash allocated and remaining a total of almost like 5.2 million dollars. In those funds when we make those free cash transfers into certain funds those funds are specifically caring forward for the the prior year or if those funds are unspent. Let's

▶ 1:17:58 say FY 21 fy20. Does that go back into free cash? I feel like that question was asked number of ways, but I'm not sure that I got the answer. I was looking for the value. Yeah, the great question. The two things one is what it says complete the projects complete. It means if there was a few dollars left over in that fun. It would then close to to become the next choice. Next year's free cash. But as you go along here FDA, we don't close those funds that have free cash Appropriations assigned to them period and obviously if someone tells me is dissolved, they can't do it because of some logistic reason and that's a different story. But typically we don't they go year after year until they close out

▶ 1:18:41 Leila Migliorelli: by my office. Okay, that's good to know. So they're caring for that's not part of bucket. know you would Go back into free cash with I think what's helpful to hear, you know is the the I think it's the state's recommendation for free cash has gone up from three to five percent to now five to seven percent. I think when we originally started having this conversation a few years ago and over the past three years. We've pretty much done six percent that seemed on the high end where it seemed like it was a good question to ask why not. See if there's you know, could we shoot for five percent and yeah, but now it seems like we're in a different environment. I think the public had some questions about this last year a couple years ago why

▶ 1:19:21 Leila Migliorelli: so much money going to stabilization. It seems like the target for the six six percent the last few years make sense. I think to president Grigoraitis this is point. You know, there are only so many levers we can pull in terms of how we make these decisions. It seems like after getting all this information. And the recommendations the state that we're on Target in terms of where we need to be with free cash. But that being said, it doesn't mean that there's not other places we can look for that funding I think. My life final comment on this is that as last to do I think with either one of you necessarily but the information we've requested. For these orders for free cash. For example, if we take the Dei Initiative, for example in the

▶ 1:20:12 Leila Migliorelli: spreadsheet, it says that so it's I think it was order 2021-31 in the spreadsheet that it says that you know, we had approved a hundred thousand spent or completed was was 90,000 and remaining was 9,000. But then when in the today's answer to my questions Miss Fleischman had provided I asked for sort of specifics on what that you know, 90,000 was spent on and it looks like what was invoice to date was 10,000 and that perhaps the remaining 90,000 is part of this number two, it's Equity assessment. It's just to highlight here that I think. When we're pulling together. When I understand is probably spreadsheets from hard information. So we had this with free cash. We have this from arpa and these are extracted data

▶ 1:21:07 Leila Migliorelli: that when we're looking at it just to be really consistent with the information provided it it creates more questions and we're probably needed. I think the first time when we got the information on free cash and arpa it wasn't as detailed the second time around it is detailed. I just think that for the public for us, especially 11 counselors have to make hard decisions just having more confidence in that the numbers are correct. So when I see those numbers are just raises more questions doesn't mean there's anything an Affairs going on but it's just how we present the information that I think is equally important as information itself. So that sort of my my final comment less of a question on that and we can follow up I when

▶ 1:21:52 Leila Migliorelli: I spoke with Miss Fleischman, and she was unable to be here today. She said that you know if we have questions Apartments, we can continue those questions and we'll do that on a couple of these orders. I know councilor pay already mentioned that piece on Fred Greenfield too so we can kind of see where they're at. That being said I'll entertain a motion for what folks want to do with this order placing it on file. Or something else or holding it? I'm making motion to play some file second motion to place on file made by counselor Jamal advice chair Jamaleddine and seconded by President Grigoraitis all in favor. Aye you opposed. My suggestion in leading this meeting is that we've given that we had I feel like we fully covered the

▶ 1:22:44 Leila Migliorelli: arpa. Peace. Although I'm happy to entertain questions on that. I think that let's start with the state of the city financial since Mr. Della Russo put together a detailed memo on that that's in our packet now. so we will be taking up info. 2023 - 11 and if there are any if Mr deller so you have any opening remarks any updates you want to share from our December 18. Yes procedurement. Should we need to make a motion to take this out of order? Sure. Yes, let's take a motion to make this and so moved I can get motion to take this out of order made by counselor Steward seconded by President Grigoraitis all in favor any opposed? Okay, so info 2023-11 is now from us. Thank you very much. I appreciate being here this evening and my

▶ 1:23:41 favorite topic is always Finance. It wasn't always like that when I was younger, but it is but it is I do have the chief assessor and my treasure collector with me this evening. If you have any questions on any items related to the respective Fields, they're here to answer them. At least they will get you an answer if they don't have this evening. When I put together the memorandum data, January 26th of 2023. and update on the status of the city's finances again Council order information 2023-11 and what I'd like to do is walk through this and highlights some of the items that I truly impact the community a few of them. We've talked about earlier this evening, but I think it wouldn't hurt to.

▶ 1:24:33 To restate them because of the importance. To begin with the physical 2023 budget utilizes state aid revenues for the city of 16 million. 889 742 And state assessments at 4,838-455. The next state a to the city again FY 2023 is therefore 12 million over 51 to 87. Those figures have us received one million 396 132 a new state aid. a 13-point ten percent increase over FYI 2022 Principally driven by the revenues. We see through the new student Opportunity Act Chapter 70 under educational Aid. We're hoping that also. mom happens in fy24 That would be really helpful to this community. In addition, here's the building blocks that we utilized. the new tax revenue from the two and a half living 500,000 of new growth

▶ 1:25:41 7.1 million of local receipts that we talked about earlier this evening. And 2,698-206 of other funding sources. In developing this strategic plan. We had also requested an increase in the amount to be deposited into the city stabilization funds. We had requested 1,225,000 be deposited into those funds prior to July 1st 2022. It was approved. As requested by the city council, and we now have over 8.3 million dollars within our Collective stabilization funds. We have done this collectively and I could not have done the city could not have done it without the support of the city council. I appreciate that wholeheartedly. To assure the community that we can sustain and manage services in a negative economic downturn.

▶ 1:26:37 Which I believe. From everything I know today that we are going to face going forward. One of the top priorities of this Administration is to ensure that the city of Melrose can always maintain a stable level of services within its funding capacity. We work to develop strategies that will accomplish that goal in a must remain a number one priority for this city. As a result the total FY 2023 operating Bud for the city and the school is 95 million 286-080. We have not in the past as the city council to make reductions to budget line items in an effort to balance the City operating budget in large pot. As a City operating budget is always developed using conservative estimates and balanced period

▶ 1:27:34 we anticipate maintaining a balanced City operating budget for the remainder of FY 2023 We will however need to request that the city council provide the school budget a free cash supplemental funding appropriation for a special education in transportation costs in order to close out its operating budget for the fiscal year. This would need to be done prior to fiscal year and we also adhere. To the existing solid Financial policies in the use of the upcoming free cash program. That have been developed over the years in The community's Prudent investment policies and practices that have earned us a double A Plus Bond rating from Standard and Poors. We've been able to maintain that since 2013 and

▶ 1:28:27 Beyond which is really telling given all the ups and downs that can have occurred over the last 10 years. We also recognize that the National Economic landscape is creating concerns over the fiscal health of the economy overall. And ultimately this can impact local cities and towns budget negatively. For Melrose where our tax base is predominantly residential 92% and where there is limited room for expanded commercial Industrial Development. It may actually work to our benefit in these economic challenging times assuring stability of our tax base revenues that support our budget. Historically and communities that may be overly reliant on commercial or industrial taxes to support the budgets when a recessionary like period

▶ 1:29:18 takes hold as some have suggested is upon us. Now. It can very well negatively impact those communities which are so reliant on the tax revenues these businesses bring We will say. Number four for FY 2023 overall our tax revenues two and a half plus New Growth make up 73.5% of the estimated gross revenues needed to fund our fy2023 operating budget an estimated State assessments. We have seen that number grow over the years to where it is today. The state candidly is giving less and we a candidly paying more. period i state aid is estimated to provide approximately 16.8% of the needed funding. And the remaining 9.7 comes from a local receipts and other available funds. For FY 2023 new growth came in at over

▶ 1:30:21 a million 82,000 or over 582,000 more than the 500,000 projected. Our average over the previous five years has been approximately 646,000. This is very good news. The next section discusses in in high level the summary we were at we were actual and where the variances are. A for property taxes 36.7 estimated at this time. We're at 36.3 with a 428,000 negative position on on the tax collecting at this time. Local receipts estimated 3.5 where it actually had a 3.8 which is 266,331 over the mid-year estimate. So our Enterprise 4,567 734 actual four million 431.047 136,686 deficit. Water Enterprise three million five twenty one. Oh, eighty two estimated three million. Five fifty three 153 actual the variance

▶ 1:31:37 is 32,100. Mount Hood Enterprise estimate is 877.049. And the actual is one million three one seven three five four seven, which is 440,000 308 to the positive. And last but not least the endless Enterprise at 577065 actuals at 6:14 832 for 37,767 to the positive. So these numbers are spelled on a detail at the end of this report, which we can review. at that time The community impact on cannabis the mayor did speak to it. And again, I do want to address it a second third time because he's going to impact us today this year next year and the years ahead period we may not realize the same level of What's called the host Community impact phase as we saw in FY 2022 due to the changes in Law chapter 180 of the acts of 2022.

▶ 1:32:47 And the new rules around host Community agreements and FY 2022. We realize 955,000 in such revenues which is representative of the 3% of the gross sales from God and remedies. I would defer to the city solicitor's office to a pine in more depth on this matter to the city council. The new law gives the Cannabis Control Commission until November 2023 to promulgate new rules. This information is critically important as we develop bfy 2020 for operating budget for both the school in the city. And unfortunately, it's going to have a negative impact on a local receipts which were used to fund our budgets. If the payment is reduced significant or in fact if the payment stops completely. I have some attachments which I'll just highlighted

▶ 1:33:42 a couple items in Alaska. There's any specific questions. The first one is the state aid analysis. It's two pages. It's the first page is the estimate of the actual State a by category. And the second is the assessments the charges that we see from the Commonwealth for Charter School MBTA and the like and on the very bottom of the second page. It gives us the net state aid that the city realizes and verify 23. We're going to see one million 396 132 over FY 22, which is a 13.10 percent increase. Go to the next sheet on year-to-day revenues. This is I believe the first time the council has seen this sheet. It's um It actually serves more than one purpose, which I'll explain in a moment. the first section talks about property taxes

▶ 1:34:45 and again as I spoke earlier. Do you have the original estimate? The year to date estimate the actual year-to-date. And the the Surplus or deficit year today and the percentage in the right hand column? The ones I want to highlight is motor vehicle exercise, which has the highest. Deficit and again, that's a timing issue on the treasuries here. She can speak to that if you'd like. 28.59% 768,831 the next go down. The list is the cannabis. You'll see the number of 615 984 right in the middle of the page. The estimate for the media was 307992. We're seeing 179770 year to date and that shot 128 to 22. We have not received a payment since August and that category. Investment income actually has some good news. The estimate

▶ 1:35:48 was 7,500 all of the original estimate. He had a date would have been 37.50 and it's we've actually seen a number of committed 94,898. And I had asked treasure collected to speak to that for a moment if she could. It's being offered in the banks that we use last year at this time. We were lucky if we were getting maybe a 0.2 kind of level and now it's more around 4% So I'll give or take the swim Enterprise again a small deficit of 136,686. Water Enterprise is up to 32,100 Mount Hood 440,308 and endless is a 37 767. To go to the next page, which is quite interesting gives you the actuals for the year ago and compared to this year. And then it gives you the variance on the right hand column. and I think you'll find is it's pretty

▶ 1:37:03 enlightening to see that we're right where we want to be mid-year. Brighten the mid midpoint. So we see our revenues where we want them midi air. We also see our expenses, but we want to see the mid-year. So you really balanced out very well and I have no I have no issues at this time other than the ones I highlighted this evening to be concerned with but if you take a look at The property taxes year-to-date actual was 34,994 107 this year. It's 36 309 696 so it's up 315 189 Ground the next local receipts this time a year ago. It was three million six ninety six. Oh twenty five this year. It's three million eight 18. Oh 70 So there's 122,046 to the better. The saw Enterprise 4.2 million now. We're at 4.4 138,622 higher.

▶ 1:38:09 The water Enterprise just done to 3.2 million now. It's at 3.5 million. It's 353,890 to the positive Mount Hood. Was that one million 156249. It's now at 1 million 317 3:57 or 161 108. And the ambulance was at 583 for 12. It's now at six fourteen eight thirty two thirty one for 20 to the positive. So your revenues that support you your budget are absolutely where you want them to be as you can see. There's no large large variances, which is what you don't want to say mid-year outside of cannabis, which I consider to be an extraordinary item at this point. The next print out that we provided was stabilization funds and Enterprise Reserve funds. And again, as you can see by fund stabilization

▶ 1:39:07 a 3.8 million plus the contract stabilization just under 1.2 million before we take out the almost 300,000 that settled the patrolman contract. The capital stabilization funds at 472,299 suits and claims at 496 378 94 opeb a million 38,731. The sped stabilization fun at 502417. That's for the school department. oh sure at 204-105 education Public Safety and substance abuse at 597 815 and again over 8.3 million. The soil Reserve is at 9:29. 808 water Reserve is at 681 338. Mount Hood Reserve is at 4:32 to 25. And the ambulance Reserve is at 148 950 and again I want to thank the city council because we spent five years building particularly the water and soar up to about 10% of their budget, which is our Target and I

▶ 1:40:18 without that commitment to do that. We wouldn't have those funds there. And again, those are specifically used for those Enterprise funds and can only be used by those Enterprise funds for those for the purposes within that fund. and the next one is just quickly on revolving funds. We've done here is we've given you the fun number. We've all been fund itself the ending balance for fy22. The revenues as of 1231/22 the expenditures as of 1231 22 the balance is as of 1231-22 and what the city council voted for the spending cap. So I would I would glare at the expenditures as of 1231 2022. To make sure that the amount that was expanded by these departments do not exceed the cap that was approved

▶ 1:41:14 by the city council, which is the last column on the right. Because they should not ever do that. If in fact they need to spend more money. They have to come back to the city council and ask the city council to increase their spending cap, which they can do any time within the during the fiscal year. So even really good stead with the very evolving funds as well. And again no issues there. in the last page is really the other funding sources, which is really a Samsung the taxi population sees that we found with the Commonwealth. Typically, it's the indirect cost of the Enterprise funds care for Perpetual care for the cemetery and Overlay for reval and the last it really is the debt exclusion which is

▶ 1:42:03 going to be by 2000 and 29 be gone. That was the premium that the city realized on the bond that we took out for the Middle School. And this allows us to use that premium to offset the cost to the tax pay each year of the bond and the couple of years left and that'll be gone. So all in all and I think you'll you'll find you know, honestly what we want to be. You also have a breakdown by Department. That I was provided. So if any questions on that, but they really really look like they're in great shape and for this time of the year, so I don't see anything that would cause me concern right now if that changes in the next quarter, I will let the city council know I'd be happy to come here and give you

▶ 1:42:54 Jen Grigoraitis: another report as of the end of April. questions president krigeratis. Thank you madam chair. Thank you for that presentation. And thank you, Ms. Armada and Ms. McClellan for being here tonight again to kind of zoom out. A little bit. My first question is can you just give me the ballpark number of what percentage of the city budget is Personnel costs both salary and then benefits indirect anything that's related to the the people that we employ. Um, I I would rather get that to you if you if you're interested in the salary cause anyone to include the health insurance if I made through the chair, this is a question pensions Medicare that type of mm-hmm. I could put that together for you and give you I mean, my my 10 is I'm just curious to show how

▶ 1:43:55 Jen Grigoraitis: much of our budget is really personal treatment by personnel and that obviously when you take that away you're taking away people who do work like there is not a lot of no, I'd be happy to do that. It's a pretty static budget. Absolutely. Thank you and then I know Ms. McClellan when you were before us to set the levy rate, we talked a little bit about the I typically High year that we had this year in New Growth because of conduits in the ground. Am I getting that summarizing that quickly? What are other things that we you know, our budget is our what our budget is, we know what two and a half does and where that caps us. But what are other opportunities for New Growth that the community could consider or pursue from a

▶ 1:44:41 tax standpoint? And I know this is a question counselor Carm chadey had asked back in December. so growth is something that's really not predictable in many ways because I think I had touched on it earlier that it's it's very dependent on many things like economic conditions and You know just as Patrick had had said earlier this evening like with say the economy is questionable, you know, even within the short term in the future. We'll see less building permit activity and a lot of you know, we've already started to see that across other communities of Massachusetts. So those are the kind of things that That you know will happen. I don't think it's a lot of it is not like specifically within

▶ 1:45:32 Jen Grigoraitis: our our control directly. It's just the activity within the community, you know a lot of Activity from businesses or you know consumers doing building permits and utility companies. Like I said, the personal property growth and things like that. Okay, so it's not there's not some formula or if you build an Ikea on linfel's Parkway or you that's gonna you know, I think is as I would assume many residents say, how do we how do we change the our story? How do we be a community that has more sources of revenue coming in? What are those options? And it sounds like new growth is not one that seems like there's a clear path there from your perspective. right the Avenues for growth that we've already been realizing are kind

▶ 1:46:27 of there as they are like we were mentioning earlier that the tax base itself and the way that you know are zoning is and our the way that we are. laid out as of today is you know, it's kind of sets the the I guess area for that. Well, thank you. Thank you madam chair. Thank you madam president. Council grapes. Thank you. Mr. Delaroso, you had mentioned that the last payment we received on the Cannabis was in August. yes, is that is that monthly payment or is it quarterly or Did it just stop? I believe it's quarterly I can confirm that. so we would have should have had a payment the end of September or yeah, we didn't get we didn't get the November payment. No, we got nothing. and has anyone reached out to them to

▶ 1:47:35 Paul Brodeur: see? Why? Don't you get some a little bit worse than what you described. We actually got a letter from garden remedies saying that they will they proactively said we will not be sending you any more money and they have sent that same letter to their to the city of Newton and the City of Marlboro. We're there other two facilities are located. They have probably the most aggressive folks in the industry in terms of the position that they're taking but that does other other operators are going a little bit more gingily, but there are certainly other communities. Cambridge Boston Northampton to name three that have Chelsea that either never took or are no voluntarily no longer taking. the HCA payments

▶ 1:48:49 Paul Brodeur: And we're on a contract. There was a contract agreement. Between the city and that correct? I guess probably better questions for the city solicitor and I'm assuming that the the again at a base level she's definitely better to ask but the the base premise of the HCA pieces to recover impacts. The contract is a little bit funky and that it asks us to detail impacts, but sets the the revenue piece for impacts at 3% of gross revenue automatically. So it's a little bit of a disconnect there. So so if the if the Cannabis Commission comes back in November with a What they changed the host laws is that retroactive or is that of them confusing my complicated? Okay, it gets complicated. So the legislature changed the

▶ 1:49:52 Paul Brodeur: law around heas and the eight and the Cannabis commission essentially Works under whatever laws the legislature passes and essentially administers them. They have not issued regulations. Under the under the new law essentially. I think they don't have to do that until November. but it is clear going forward that hea's are dead. That's essentially what what the legislature what the legislature has said. The question will be God. The the CCC is essentially unofficially stated look until we take action. He's Agreements are enforced, but that doesn't carry much weight in court. Based on some of the contract language around that itemization piece. That makes sense. Thank you. Just noticed on the revolving funds.

▶ 1:50:51 Mark Garipay: Mr. Della Russo inspectional services there's zero in there. Is that because of? We were going through transition in the building building department. As of 12:31-22. There's there's no Revenue. And that could be a couple of things one is pretty simply be a transition in essence or because that's designed for multi-unit. So unless they've done that multi-unit work, but I can find that I'll let me find that out. Okay, that's our building permits and stuff along that line. Right? Yeah, but it's specific. I believe to in a lot of ways to multi units. All right, and then on other Revenue Consolidated budget worksheet other funding sources Cemetery Perpetual care 12,000 that's interest on the Perpetual care account. Yes.

▶ 1:51:51 Mark Garipay: and what I would assume with with limited on on over the years we've been limited on interest rates have been lost. So we haven't we haven't realized a lot of interest on that account. Is that changed with everything going on with interest rates going up there at all as are we going to see more Revenue off of the Perpetual care. You think over this fiscal year. We should that money is in a trust that's managed by Bartholomew. The last statement that I saw was a lot more positive and it was the prior year. So yes, let's go. It's raining where you could send me the balance on the Perpetual character. And that those are all my questions. thank you counselor pay Any other questions? Oh, yes counselor. Karmchatie

▶ 1:52:44 Manjula Karamcheti: Okay, just a circle back to the question president Grigoraitis was asking and a question that I asked. In December. So again just to make sure I understand correctly. I want to say back in terms of growth for revenue for the city that would go towards the operating budget. Some of that would be like businesses coming into the city. Building permits and an increased housing available to to Residents to rent or to buy. Does that count as more Revenue yeah, so Basically the any like change in physical. like Value so it would be like anything that adds value due to like a physical change. It can also be like an exempt. Parcel at being added to the tax role like if some a private. Non-exempt entity purchase like

▶ 1:53:56 Manjula Karamcheti: an exempt parcel than they would be added to the tax rule. That would be an example of something. So let me ask a question based on my question. So for instance in word one we have Project proposal to redo the VFW into Apartments on Franklin Street. There's another the garness market is I proposed will that add to our revenue for the city that would go towards the operating budget, right? Yeah. So any change well, first of all, it would be a changing use because right now I think it's just a fraternal organization. So it would be a change in use so it would be residential and mixed use there be some commercial use. Yeah, so it's any value that that changes that would be a definite increase. So in addition to providing more

▶ 1:54:55 Manjula Karamcheti: housing for people to be able to access our community, it actually also provides Revenue to the city. Okay from growth. Yes, super helpful. and then okay, I think that's all I wanted to. To clarify about that. and then so in Mr. Del Rousseau in your letter, we'll have a balanced. Budget for the city operation operating budget, but for the school budget, we'll need a free cash supplemental and it lists for special education and transportation costs. There are so many things that that can be regarding special education and transportation. I think it would be really helpful. So I guess a request is to have that broken down a little more in terms of what we say special ed. What do we mean? Is it the out of District placements? What

▶ 1:55:56 Manjula Karamcheti: kind of Transportation I know Transportation was an issue during covid because we had to Have more buses for fewer kids because of the social distancing requirements. But so what do we mean by Transportation now? Because that isn't the same issue for this school year in terms of Transportation. So just I think a better understanding of when we say special ed and transportation. I think more information would be really helpful sort of the the numbers behind that so we can understand and feel confident about where that money is going and if it's out of District placements and then had like what are we offering within District? What are we not offering because that is often attention between if

▶ 1:56:50 we don't have the services for students in school out of District placements will rise and just it's all related and it is it all comes down to money. So just us having a better understanding of that I think would be really helpful through the chair. I did reach out to Ken Kelly the findings directive for the school department nice explain that to him in detail that we want as much detail as possible broken down and the request and whatever categories need to be included. We want all categories included. So everyone is a full understanding of what exactly being voted on and particularly why and send it's an excellent question and I believe that he understands my my position. Well, thank you for advocating for that. It's appreciated.

▶ 1:57:35 Ryan Williams: Thank you. I think I'm good. counselor Williams I want to talk about a couple of the items that jump out of me because they're over. Let's say 25% Yeah, there's really only two. I'm I'm interested in a lot of these over 25's are fairly small, you know, a couple hundred bucks because the line items really small. So let's go up to fiscal Revenue summary the Mount Hood Enterprises of 25% with a 440,000 variants and we talked about local receipts so we know what's going on there, but we didn't talk about the Mount Hood Enterprise. So what's the what's the cause for Mount Hood to be flush with cash at this moment? It's a couple things Mount Hood a little bit different. They're in a calendar year basis. So their operations not when

▶ 1:58:24 Ryan Williams: fiscally they are time for range when they'll actually get in membership fees and like a a flux, you know, all the sudden they'll send out their request. They'll get membership fees and a large cash position earlier. So that does change does alter that. That's why I mentioned earlier that those are one of the circumstances that changes things. So I think you'll see extreme line a little bit more evenly as you go forward kind of okay. In terms of the cherry sheet. Boy that Charter tuition reimbursement jumps out at me. It looks like it's going up 50% every year. Right goes from 264 to 362 to 4. I'm talking hundreds of thousands of dollars. 264 K 362k 452 k697k then it kind of go barely moves

▶ 1:59:12 Ryan Williams: in 22 to 705. But then the projection for 2023 is 948,000. And that's a growth of 34% I'm going to throw a little bit of a loaded question out and you can tell me I'm wrong. Is this investment in the schools causing people to flee to Charter Schools? And are we paying for it by having almost a million dollars into Charter tuition reimbursement hitting our budget. I'm not sure if I can actually answer that question and that in those but those parameters I will say this I will say this though because I think it needs to be said and you look on the cherish and the first part you'll see the child or tuition reimbursement. Number that's an item number four and just again my understanding is that used to be a five that

▶ 2:00:02 used to be a five-year spread where they would provide us. Certain percentages. I'll say for this discussion 20% and then other you know, they would want wind down to the point where after five years you own the full cost of that student. But they would give us reimbursement in the in the early years, which I think it's gone back to three years. If I'm correct instead of five that they would give you funding towards that effort. But the end of the day you're going to own that still now after three years or so. the concern and then you look at the assessment itself, which is quite interesting because what I find that is more probably the most disturbing to me. Is that on a per student basis? We are

▶ 2:00:47 talking. The number of students that are in our districts compared to what's in the charter school. Why is it that they're at four or five times? They the we receive at least as provided to them revenues per student over and above what they provide the public schools to. And that's distressing to me not because it's the child of school. It's because it's the funding Equity issue to me. And if in fact they gave us that type of equalized revenue for those students that go to our schools the public schools. It'd be a different funding story. We would be talking about now as we talk about school operating budget and the like But it's just disappointing to see that even if the numbers students are

▶ 2:01:33 not really increasing to any you know, 200 300 to 400 charter school, but basically where we're at with the 200 plus number that they type of assessment continues to escalate and it doesn't require. The charter school representatives to come before this board as the volkschool does every year and asked to speak to that assessment. That's another disturbing aspect. We have no control on that sense. It's here's your assessment and I allow you that that's not the same as the mbga assessment. It's two different things. I can see. It's getting an MBTA assessment without having them sitting here but a Charter School's quite different that directly impacts the Imperial student number that we get for our

▶ 2:02:16 students here. So that's where my My thoughts are on that but it's an excellent question. I wish there was a better way to fund it. They've talked about reforming the funding year after year. Of that changing the formula. I haven't seen it. I would love to see that. And again, it just comes down for me. As a matter of equity our students should get at least what they giving person for Charter School period and that's the legislature that would enact that reform. That's correct. At the beginning of their session now, so it'd be a good time to not agree more. I can show you what not. The only Community voice in this concern is just impacts. So so heavily Sure. Well, thank you as someone who is.

▶ 2:02:59 Shawn M. MacMaster: Learning as much as I can about school finance and the very complicated web of state laws and regulations that govern and I appreciate that explanation. You're welcome. Counselor McMaster, thank you. Madam. Chair Mr. Another Russo. Yes, your memo dated January 26th on page two. Where you reference? The free cash supplemental funding that will be needed. Yes, the special education stabilization account right now. The balance is 502,000. Is there a plan to draw upon that where you're looking straight or will you be looking strictly to free cash for special ed. And then the second part of that question is where we in terms of the circuit breaker from the state to defray special ed costs. I can I'll be happy to address the first question the

▶ 2:03:51 second question. I don't have that information this evening. But the question is is correct. We would be looking in this sense. We'd be looking to take whatever appropriation is. Probably 2.5 million now is when I'm hearing from free cash for the school department, that would not come from these special ed stabilization fund. And the reason is that that fund is designed for the mid-year. Um, you know, exceptional circumstances so for student if they all of a sudden a student comes in mid-year or somewhere thereabouts, and we when they need funding that's what that's for. It's not for providing ongoing, you know, annual Appropriations to the regular budget. That's not the point. So the 2.5 is is different in that sense.

▶ 2:04:39 Paul Brodeur: And the other 500,000 is there is a safeguard God God forbids that we need that between now and the first to July. again on the On the Nature's circuit breaker, I could say this that at MMA Governor Healy announced a commitment to full funding of special education circuit breaker that does not mean on people are a doll for dollar reimbursement. It's at a certain high cost trigger point you get a 75% reimbursement the trick with that particularly given that we're expecting to see a spike intuitions based on a fee adjustment. The circuit breaker is a reimbursement model. So you have to have the money up front to pay for the services then you get it back. the next year there was talk from a short budget stability perspective of

▶ 2:05:37 Shawn M. MacMaster: creating what they sometimes call a pothole account to create some resource for fy24 so that if those OSD rate increases turn out to be what the energy proposal is. There'll be essentially temporary dollars to bridge that Gap till circuit breaker catches up. Thank you and Consular Karma chadie asked about the transportation cost which is same question. I had and I'm glad she asked it so you reference special education and transportation. Is the transportation as it as it relates to what you'll be coming before the console to look for in terms of an allocation. Does that relate solely to special ed or there any transportation costs unrelated to special ed whether it's McKinney ventil homelessness assistance act or some

▶ 2:06:29 Paul Brodeur: other obligation that we have. I'm just wondering we McKinney vento Yes again, that is something that that the governor dressed McKinney vento for those you don't know is a federal law that deals with transportation of homeless or displaced youth meaning those most typically a student that is displaced from his or her home district has an opportunity to go to school in the district wherever they are temporarily housed or to be transported back to their home district there is essentially a 50/50 split on that that the the government's 50 has been showing up again in terms of full funding this commitment there because all these commitments depend on Making it through the entire legislative process.

▶ 2:07:24 Shawn M. MacMaster: Okay, so it's not just special ed related there no certainly and as you get out west as regional transportation for regional districts, I don't know about Athletics and transportation, obviously, we do some of that. I'm not sure what the impacts are there. Okay. That's helpful. Thank you. I think in addition to what car Council Karma JD asked in terms of breaking down the transportation cost that would help to know, you know, what is devoted to what actual percentage just when you do come before us right looking for inappropriation. Thank you. Thank you. Hey the first time. councilor karmjady and then president gregoritis Okay, so the charter tuition reimbursement. I'm thank you Council Williams for bringing it up and reminding

▶ 2:08:18 Manjula Karamcheti: me that I had questions about that in December as well. And I'm not sure you're the right body to direct my question to but I'll give it a shot and if it's someone else that'll be good to know. I'm interested in what our commitment is to the Charter School Mystic Valley in particular in terms of Is there ever or what how might we should we want to consider dissolving that relationship? And I'm just curious about it if we are. Losing for people dollars we have an issue in terms of our school budget. Personally, I have a lot of concerns about the charter school. My kids went there and how they treat special education students and students of color. I have a lot of concerns about anyway, so I'm just

▶ 2:09:19 Paul Brodeur: curious. What obligations do we have and how might we get out of them? What would that process look like? I am curious we can't ever. No without legislative action. We can't it's not like there's a process to withdraw from Northeast Regional folk. That's kind of built into the compact that it's not something that happened. We just have to remain ascending Community for Mystic Valley forever. It's essentially roughly a quota driven Sending District models. So there are certain amount of seats set aside for each. Sending District member and then there's some variation to that. If for some reason, you know, Wakefield doesn't doesn't take all Its Spots. Then those would be redistributed to the to the

▶ 2:10:09 Paul Brodeur: other communities. But until we hit that until we fill our quote we have no control over. Anything we if we if we chose not to send money to the charges come off the cherry sheet. One more time. I'm sorry. We can't withhold the money it'd be like, you know, we get assessed to the MBTA and everyone's awhile. Someone will say I'll say politely I don't care for the tea and I think we should withhold that money. We can't they just won't it is based on if families in Melrose choose to apply. Then you know there was a certain number of spots allowed into Melrose, but if we don't have families that choose to go there. We don't obviously don't have to pay per people correct for those. students, right

▶ 2:11:06 Paul Brodeur: Why because I don't get any there's no. even a contrast with the with know these Regional Vocational again in that we don't have a heck of a lot of control over the votes budget But they do at least come and present it and ask questions and then there's a kind of a very circuitous way that that budget can be kind of held up. The charter schools didn't do any of that. There's no it, you know, it's run by a board and they do have some kind of public meetings that I think are posted. I don't know if they're televised but there's no Melrose school committee city government input on to how dollars spent what the curriculum is. Right, right. Do we have and this might be a school department question any

▶ 2:11:55 Manjula Karamcheti: data around? Students who enroll at Mystic Valley and then return to the Melrose Public Schools. I'd be interested in seeing sort of when those students return. Is it after October 1st? What? Yeah when the funding goes to Mystic Valley and then the people dollars don't come back into our city. I just be interested. I think there's more than one. It's not just October 1st. Yeah, there's October 1st in March 1st, but some of that is out there because I don't know if it's tracks. I don't think we track like performance impact though. They came back and they did X Y and Z, but there's certainly Census Data if your students sent to state of for all the sending so really it's more we we can't get out of it.

▶ 2:12:49 Jen Grigoraitis: So it's more about ensuring families that they can get what they need in Melrose and not having to go out. Okay. Thank you so much. And again, I apologize if you were the right group, but I appreciate it. President Grigoraitis. Thank you madam chair. I just wanted to follow up on the question that councilor McMaster raised about the special ed stabilization fund. So I know Mr. Delaroso. You said that's really designed to be used mid-year for unanticipated costs. I don't totally feel like the data of how we've actually used that bears that out. It's It's tricky to search an iqm too, but I can see that in May of 2020. We approved 450,000 to come out of that account in May of 21. We approved 532,000 to

▶ 2:13:34 come out of that account in one of those years. We also put money back in it. So I I got are you raising your hand if I was just trying to as an example that at any point during the fiscal year if you needed that money you could have you could have access to it to take care of that. Look at it even May. And that's telling that's good to know that even that could happen even then but you do you have that money there to to use it. I know there was at least 20 that we didn't use it at all but there were years that we had to use it. So it's great to have it there. But I just specifically meant anytime during a fiscal year that after the budget is set that you need to access special ed because someone

▶ 2:14:20 Jen Grigoraitis: comes into the district anticipated or unexpected that kind of the things when I was saying sorry. I apologize if I missed I misunderstood I just know I just wanted to clarify because it feels like we are. Into the fiscal year, we know we have a shortfall in Special Ed. But we're there's not we're not looking to pull money from that account at this point. We're looking to use the free cash and we're also not looking to use arpa funds to close. Yeah, okay. And then I guess just a bigger question is obviously some of this starts to feel familiar. I know pre passage of the override this body typically put about 750,000 a year in free cash into the schools for structural deficit. Now that number is at

▶ 2:15:04 Jen Grigoraitis: 2.5 million. Obviously, I'm assuming that the fy23 budget for the schools was built on the same. Historical accounting practice or whatever the term is that we're using that the fy22 budget was built on do we see that being a problem going into fy24? Like are we now looking at? Rather than structural deficit of 750,000. It's 2.5 million. That's the next one question the expectations that we don't want to do that. We don't want to do that. But we do want to do is recognize that the Deficit that position we're right now should not be repeated. So frequent to 24 we end up at any time during the year in a situation a 2.5 million a free cash or any of the fun because we're trying to fill the same hole. We've done something wrong.

▶ 2:15:50 So we have to look at a number of items to make sure that doesn't happen that's going to be an increased emphasis on the school department for my perspective. God bless you. Thanks my perspective that the budget reflects and understanding that the those two categories need to be really considered heavily this year for funding for fy24. In addition to that the city also has to come to the terms that we have to provide in budget that will give these school department additional resources to address these particular areas in specifically so that together with dense spending to their efforts there out ourselves here and instead of adding I'll say staff with that perhaps we shouldn't add in particularly

▶ 2:16:38 in 24. We should look at closing this Gap. It's aggressively as we can and not look to making it any bigger than it needs to be but it's gonna take at least one. If not to and maybe a little bit more number is to address it depending upon a lot of factors. We don't know yet. We don't know the student opportunity actor. We still don't know what the expectation is going to be. For special ed in upcoming years and maybe actually change in methods of protocol. I don't know but we can't lose sight of it. We don't want to repeat those mistakes of the past with the 750,000 a year until the override commitment exactly as you indicated, but it should never stand still and that's probably the error of the past with that 750 Stood Still

▶ 2:17:23 for too long. You don't want that to happen. So I don't care what the number happens to be right now, but we can't let it be a year after year event. We don't take action and bring that down then we're not doing our job. That's how I feel. Thank you for that. I appreciate it. Thank you madam chair. councilor bremski along the lines of Council of comanchetti's idea of looking at the transportation costs in different areas. Would it also be possible special education costs and terms of programming areas and see if we're sending the same children out for the same program. And maybe develop the programs within the school department. Is that something that they is that something that they would be

▶ 2:18:14 Paul Brodeur: able to give you? in in a budget format programmatic costs specific I'd like to see that and I think that's an opportunity there that we need to look at. My perspective absolutely, I agree with you. Thank you. It certainly going to be as you might imagine a during the superintendent search Project. process that is going to be one of the both I think desire the members of the committee, but also the data we saw from the surveys more folks are looking for those things aren't always super helpful, but there was clear emphasis on financial management and special education. Right. Thank you. Any other questions? I have a few of my own. It just one thing while we're talking. I was looking at the memo you provided today about.

▶ 2:19:16 Paul Brodeur: The overall status of things. I remember at one point. We're talking about a fee study looking at a the city fee study. Is that something that's still in progress or ongoing? It's a fairly when you start to think honestly all the things that we Do charge for and trying to shakeel's essentially every Department? Responsible for its own kind of traunch of fees. So in city clerk as it's it's peace. building department has its peace convict a couple of Health Department pieces want to see what we're charges who were taking in and try to get some reasonable comps from other communities to see to see where at that is. I mean that is something that quite frankly should routinely happen. Not just oh my God.

▶ 2:20:04 Leila Migliorelli: time to look for some money, but that needs to be a little bit more of a consistent review to make sure we're charging correct fees Meeting those expenses and Generatingly proper amount of money to tax up the activities those are intended to support. Thank you. Um I guess just a question about the school budget and just a point of clarification Mr. Deller. So if we're talking you're talking about closing the budget gaps, you've got the 2.5 million did I hear you correctly that? A recommendation would be to then not look at hiring not go beyond what the school already has. So if there's new positions those things would be sort of off the table. What would be often on the table in terms of trying to

▶ 2:20:49 Leila Migliorelli: do that? I know you said it in our last meeting too that the goal would be to you know, draw down the deficit increase the base over time. Can you be a little bit more specific about what that would look like? concern if in fact the stress in your budget is special ed in transportation. and you don't fund it properly you underfunded intentionally. And knowing that it would not be adequate. It behooves me how you can justify adding additional staff at that time. If you haven't funded essential services and cost. That's what I mean by that. and the conversation that sort of connects to what counselor that's current shady and bremski said about reevaluating things is that an ask from the mayor to the schools who take a look at? You

▶ 2:21:43 Paul Brodeur: know, I get that we're in the middle of a superintendent search, but how How does that directive come about that we need to take a look at? Transportation special ed. How do we reduce costs or bring something in-house? How does that process start? Well part it was you know, it was informed by our experience in 22 with with the underfundance that nebas. As a general proposition was somewhat obvious and then we had to do the the data mining or what have you to see. With much more specificity, where are the holes? What drove them etc, etc, etc. I know it is not a like an order from on high. I want to say I mean that is the the challenge for the district will always be it's not a will do this and then we're done the evolving nature

▶ 2:22:39 Paul Brodeur: of the needs of special ed. And what have we seen in the in the past couple of years. So I think covid both scene increase meant to help impacts between all the school isn't a provider but that's certainly impacts the learning environment for the child in the classroom also seen dramatic increases in Autism diagnoses the question or Spectrum diagnoses question being whether or not there are more incidences or better Diagnostics, but always trying to keep up with that. We certainly see what one thing that probably generation ago wasn't a big. Issue in terms of districts trying to figure it out. It's dyslexia and had it and how to deal with that. So you've always got to be thinking about that and you always have to be thinking about the right.

▶ 2:23:28 Paul Brodeur: How do you draw the line? Where do you get the kind of the economy of scale where there are some kids we all know we can't serve that happen to live here that we're not going to serve in the district environment and we have a legal and moral obligation to take care of those kids. And those kids are going to go out and they're going to be very expensive and that's the way it is the challenge becomes. You know, where is the best programming? What are the best and honestly That is not something I can figure out. I wish I could but that is something we do have to lean on. The staff and have some confidence particularly at the senior level that they a understand what's going on in the district and the particular needs of the district. But also

▶ 2:24:15 Paul Brodeur: what are the trends out there? What does work? You know, what what programs might be You know more economical but still provide good service outside the district. Are we getting everything we should from seam and what kinds of things can we bring in either? You know with with direct access to Personnel on a kind of a one-off or very specific to an individual child's IEP versus what if we see a you know, a critical mass of dyslexia diagnoses. When is the Tipping Point where it's better for us to bring that in-house as opposed to? Send it out. I think it was a very hard thing. But that is the ongoing mission of the district and really every district is that is to figure that out. So it's a you know, sort of mix of a program evaluation but

▶ 2:25:08 Leila Migliorelli: taking Financial circumstances into account. Okay, so programs being one part of the school budget, obviously the largest part of the school budget in the city's budget as was pointed out earlier our salaries and Personnel just wanted to provide an opportunity given that there has been so much discussion in the cotton the community regarding the teacher contract that was settled on and you know the agreement that's happened. Do we have are there concerns on the city budget side or within the school budget about the fact that we have? I believe we had an offer. We have gone above we had gone above that offer agreed on that is are there any concerns about the impact of that on that going above on the

▶ 2:25:55 Paul Brodeur: city budget or the school budget? Yes. I mean there are always concerns about Yeah, you know meeting any of my financial obligations in the in the context of our responsibility for all the other things we have to do. Okay more specifically. What do we know what that looks like that like, do you know or is the is that something that the city will feel an impact on or will that be the school impact in terms of that? Whatever I'm not remember anything. We flip it. It's a little bit of a of a wheel see the biggest X Factor right now is the student Opportunity Act. So if the student Opportunity Act doesn't in doesn't come in robustly, we will have some very very serious challenges sooner than we would like to confront them.

▶ 2:26:47 Leila Migliorelli: student opportunity accuracy, that's a Lack of a better term something you can't count on so it's sort of a discretionary type funding. Are you saying in this year or the next you know, the three years of the contract? That's something that we're going to have to look at. Is there a goal I would think Mr. Della Russo It would be your preference to look at money that is not reliable as something to do extra with and not count on we don't want to be planning that we're going to get, you know, relying on state funding for something that we don't know where it's going. I'm just trying to get a sense to understand that I guess and that's the answer to the question that we are counting on some type of state aid to help bridge this gap

▶ 2:27:30 Paul Brodeur: which we may or may not get and also says it's not I don't know make it sound like it's a like a casino proposition. We do that to a certain degree with everything state aid. is to a certain degree predictable it is it is reasonable to assume you're still what we're hearing that there will be some growth and we will certainly see level funding and I think significantly more on that informed. Certainly my decisions about the money piece. Of the contract, but it is not it is not without. The number of probably you know fairly obvious challenges anything that grows. Bigger than two and a half percent. presents challenges and choices and then I just want to address on thank you Mr. Delarosa for sending that very detailed response to my question about

▶ 2:28:33 Leila Migliorelli: on December 9th regarding the discrepancy between the two budgets. I think. We don't have to get into all of that. We can read the memo and I think that's food for thought moving forward. We really I would like to see us get to a spot where we feel comfortable on the counselor. I'll just speak for myself personally. Where the information we're seeing matches, you know, even if you're looking in the December report the munis report about what's been spent here, you know year to date you look at the school line item and it says zero that obviously I know is not true. I'm just thinking for the Public Public facing documents. We just having multiple documents out there is not ideal. So if there is a way I

▶ 2:29:19 Mark Garipay: hope that you know, your office can work with the school's office to make sure that it's the same information that we're getting the same information that it ties out. It makes it easier for us to talk to the community and and kind of convey that confidence that the data is all the same. Absolutely. I couldn't agree more and this would be the perfect time to do it. Thank you. Thank you any other questions? counselor garepe mine's more of a statement I guess with regards to The school department in the 200 2.5 million that they're going to be looking. I don't. I'm hoping that they don't have to be told from the administration to try to find efficiencies and save money. I'm hopefully they're working towards that and have been doing that

▶ 2:30:09 Mark Garipay: since this this budget so I know. I know. there's some Direction but hopefully they are continuing to work in order to come up with a number that makes sense. And hopefully they can tell us the 2.5 and give us a lot of backup on that but hopefully they've been working towards somehow saving money throughout their whole budget since this came came about and I think it's their responsibility. I don't think they I mean that yeah, the mayor should be telling them but they really should be working towards that since it actually happened. So that's more of a statement. Thank you. What is the will of the committee? Not sure like to make a motion to places on fire dragon. Motion do a place on file made by counselor Stewart seconded

▶ 2:31:04 Mark Garipay: by counselor. Sonella all in favor. Hi, I opposed Okay, I don't know if counselors have questions. I'm just going to say right now. We have got the info order on arpa. on discussion or all entertain a motion on discussion I just have one question regarding the upper and it's probably more directed to her the mayor on on our last meeting. I had questioned. I had a question regarding some the library update on October 17th that we were going to hold $800,000 of our money for that project. I don't see it in the information we got today. So if you could just give us a little update is Eddie hundred thousand on hold for the library project. It's not how how we participating and nutshell version is this we have a little bit over a million

▶ 2:32:00 Paul Brodeur: dollars in I guess I'll call completely uncommitted art of funds. There's a couple of it. There's money. We've already spent there's money that is more or less encumbered or that we have committed to spending that. if something awful If you could potentially vary the theme on that and we have a little bit over a million as I said, there's completely unencumbered. That we want to hold off on with one exception and I'll fill you in on and that could easily be devoted to the library. We don't need to freeze that money for long Visa Visa library because we expect checked with Miss Gaffey today that the bids to be issued for the equipment. The I think they call it fnf should be out sometime in the

▶ 2:32:52 Paul Brodeur: spring. So I have a lot more certainty around that in the in a reasonably short time frame the one the one exception that I want to talk about to the the moratorium on spending as I did authorize about $60,000 for the repair of a window at the Franklin school. If you have a chance to look at the infrastructure the Franklin this one window in particular. Isn't very tough shape. It's leaking and we have an opportunity because there's a state bid list for this and we found a contract that has availability over April vacation. We're going to take the opportunity to fix that window. The frustrating part of that is twofold the Franklin needs a lot more work in a lot of its windows and the roof. Our original

▶ 2:33:48 Paul Brodeur: plan was not as reactive as this sounds like because it is was to use the accelerator repair program that we use for the Hoover roof and the horse and roof as you all may recall that program has been at least temporarily. Halted as the school building assistance folks tried to more fully fund existing Renovations and tear down their bigger projects their Prime projects. It was certainly one of the reasons for only doing one is to preserve as much arpa money as possible. But also in the hopes that that program will get turned back on in some reasonable amount of time. That's all it the full fix at the Franklin is a fairly expensive proposition. So the 800,000 are we holding that for the library or holding a

▶ 2:34:45 Robb Stewart: period holding a period? Okay. so for holding a million period actually against subject to I guess the if something like this Franklin piece comes up that we need to move on quickly. It's a fairly discreet thing that we would take advantage and we'll have to if the library comes in off we'll have to handle that funding. another way if it comes in oh, yeah minus the 60,000 that I just okay. Thank you. Any other counselors those questions counselor Stewart Madam chair. I just like to make a statement about the supplemental information that we received on the 30th, which is today at 3 o'clock in the afternoon. I honestly had no time to review it. I wasn't even aware. That this came through until I heard about it tonight.

▶ 2:35:38 Robb Stewart: And I would encourage. If we're going to get information. That we're not given three hours to review it. Especially for the folks that work full time. It's very difficult for us to review see this information consumer to make appropriate comments on that. So Madam chair that's feedback that I provide you and through the chair to the Thank you. anyone else What is the will of the committee? I'm sure I'll make a motion to places on fire. second motion and place on file made by counselor Stewart seconded by councilor Williams all in favor any opposed Ocean Place on file made Thank you very much for being here tonight. We appreciate you. Thanks for taking the time. Here. All right. That's it. We're at the

▶ 2:36:40 Leila Migliorelli: end motion to adjourned second motion to adjourn made by I think councilor Williams seconded by President Grigoraitis all in favor. Hi. I'm the opposed. Okay, we're done.

Original documents

• Agenda (IQM2 PDF)
• Agenda packet (CivicClerk PDF)
• Agenda packet (IQM2 PDF)
• This meeting on the city portal