Minutes
Town Council · from the Town's website · 25 pages · 2.9 MB
open the file ↗ · original at the source ↗
TOWN COUNCIL MEETING MINUTES OF SEPTEMBER 21, 2021
President Boncore Opens Meeting to order at 7:0 OPM, with the Zoom information
ROLL CALL
Present: Councilor Flockhart, Councilor Demarco, Councilor Letterie, Councilor Honan, Councilor
Ferrino, Vice President Christopher, President Boncore
Absent: Councilor LoConte
PLEDGE OF ALLEGIANCE
Councilor Honan
MINUTES
Motion by Councilor Letterie to accept Minutes of September 7, 2021
2" by Councilor Ferrino
Discussion . ;
There was a change requested by Councilor Honan, which was corrected
ROLL CALL VOTE
Approve: Councilor Ruggiero, Councilor Flockhart, Councilor Demarco, Councilor Letterie, Councilor
Honan, Councilor Ferrino, Council Vice President Christopher, President Boncore
Absent: Councilor LoConte
Motion Passed 8-1
Council President attending the Cottage Park Yacht club for the international racing, it was enjoyable
seeing different flags and countries who entered, great to see them and they excited to be here. If you get
a chance, visit the CPYC to also enjoy the races.
GENERAL INFORMATION AND RECOMMENDATIONS
Interim CFO Steve Cirillo
Prior to Steve speaking, Interim Town Manager Delehanty would like to introduce Steve and an outline
of what he and Steve has been working on, which is the strengthening of Winthrop’s Fiscal Condition
And how to project 3-5 years out. Steve has issued a memo in reference to this, and Town Manager asks
how the Town Council would like to proceed as for going through and asking questions?
Also, after this session, they will invite the Town Council and Finance Commission in small groups as to
no form a quorum and review this mem.
Interim Steve Cirillo introduces his memo and how he came to this forecast....
PLEASE SEE COPY OF MEMO, which Interim CFO reviews in depth....
Councilor Letterie thanks Interim CFO for this presentation and looks forward to reviewing finances
with him to discuss.... he reviews a few now....
Schools....eliminate use of one-time funds.... ($900,000) he compares to this year level service budget
was $1.3 Million and we only gave $600,000, they were $300,000 short this year, if we went to $900,000
(Per memo), they would be short ...
Interim CFO explains, you might think this but has had a conversation with Superintendent Howard...
Town Manage Position-Believes there were funds used and must be reviewed...
TOWN COUNCIL MEETING SEPTEM BER 21, 2021 PAGE 1
IT Dept. he does agree with
Pension information will be needed to be reviewed...
Local Receipts, he agrees with CFO, and leads to free cash and needs to be more aggressive....
OPEB definite concern, he does not want to discourage people that we are significantly unfunded
Retirement board takes over maintenance if another review to be discussed.
Interim CFO does look forward to speaking with all in reference to this memo
Interim Town Manager Delehanty would like to clarify a comment, he and Interim CFO have met with
School Department extensively, had invited the Superintendent to tonight’s meeting as this memo was to
be discussed including the school budget. He believes Superintendent can live with $900,000...does she
want more? Of course, but they went back through this and really squeezed numbers, and this is the best
we can do for the schools...
PUBLIC COMMENT
Peggy Roberts (P3) Complaining about the airplane noise and concerned with the runway extension and
asked if the Town Council will oppose this?
Council President reports that Massport states funding cannot be used for soundproofing but would like
to fight this .... Massport will be at a Town Council Meeting within the next couple of months to explain.
This is also a safety buffer not a runway extension.
PUBLIC COMMENT CLOSED
CORRESPONDENCE-
Please see attached
COMMITTEE REPORTS
Finance Committee
Councilor Letterie reports on this meeting and the two items on agenda
-Abatement Trash Fee-Good to begin discussion and want to make sure process to get an abatement is
discussed and how the process will begin.
-Vote on Vocational School-Proposal for a new school, cost roughly $317,000,000. They would be
allowed an MSBA reimbursement, 12 communities involved. Still reviewing as must be approved by
each community.
Reached out to our liaison, Rob O’Dwyer and he will be attending the meetings with the Voke and will
report to the Town Council.
Public Safety Committee
Councilor Lockhart, reports on meeting which included agenda item, small bump out in front of
Cervizzi’s .... PLEASE SEE ATTACHED COPY OF MEETING MINUTES
Council President has asked the Public Safety Committee to re-open and do more research on the Public
Access Road of the Cummings School.
TOWN COUNCIL MEETING SEPTEM BER 21, 2021 PAGE 2
TOWN MANAGER REPORT
Reports on Chief Flanagan retirement last day will be Sept. 30, 2021. There will be a community BBQ
on Town Hall greens and asks all to please join.
Interim Town Manager will be naming Scott Wiley as Interim Fire Chief.
In reference to the temporary parking lot in French Sq, he refers this to Director Calla
Director Calla reports that within a two week look ahead, construction will begin in the French Sq.
parking lot...and it will be dismantled and will begin drainage and conduit work and starting
reconstruction of French Sq.
The parking lot at Citizens Bank will also be in construction. We will be dealing with both parking lots
being under construction simultaneously. This will result in loss of parking, hoping to be completed as
soon as possible.
Staging area currently in the Rink parking lot will be dismantled by November 12",
Council President asks if parking lots can be staggered?
Director Calla reports, we could, but it would hold up project and a monetary cost.
Interim Town Manager Delehanty, reports that he asked Director Calla to explore water main on Bartlett
Rd... this could be a million-dollar project and can use ARPA’s money.
We have Assistant CFO attending ARPA’S review making sure we are funding money correctly.
Being cautioned on loss revenue and how to calculate and make sure this is being spent correctly...
Powers and Sullivan are offering pre audits...
Has asked Director Calla to review the drainage on Crest Ave. Not sure if noticed but the last several
storms have caused quite a flooding...business owners have reported their wheel wells covered in water.
Not sure if we can do this, but it is being reviewed.
Old curbing from the center but projected cost is about $200,000 to move, Director Calla does have
where can go, but will be costly... Town Council can either approve or not.
Councilor Honan asks if this includes installation?
Director Calla reports total cost would be approx. $250,000, additional for installation
Interim Town Manager Delehanty reports it has come to his attention that the Greenway Grant, signed
off by prior Town Manager and Friends of the Greenway. It is a $87,700 Grant, whoever drafted grant
committed town to $33,900, he has questions as this is significant money.
Director Calla not sure if this includes engineering cost, this is still being reviewed.
Fall Household Hazard waste on October 2, 2021...please see DPW Website
In reference to the new Northeast Vocation School, the regional school district voted in favor, this gives
the town 60 days to act, if no action taken, the town would be responsible for payment of $435,000 for
the next 30 years on top of current $900,000. Other communities are sending memos to their council
requesting a negative vote and asking for a ballot vote. Interim Town Manager does not deny a new
school is needed but the cost is a concern. The Superintendent will come to a Town Council meeting if
this is the Council’s request. Prayers for a football player seriously hurt during a game.
TOWN COUNCIL MEETING SEPTEM BER 21, 2021 PAGE 3
Fort Banks access road, he urges to consult with the DPW Director, about 30% of his operation would be
affected, would like his input.
Councilor Ferrino asks if ARPA’s money could pay for this... Interim Town Manager replies, Public
Safety, Broadband, water sewer drainage, loss revenues are the four categories of ARPAS’s money.
Public Health Director Reports on public updates-Please see attached update, also on town website
Councilor Ferrino asks about a lawsuit, fatality and one of the criteria is that a fence always be place at
French Sq.
Director Calla reports their new design does not incorporate a fence but a buffer zone with seating.
Town Manager asks for name and court, but he could not find any settlement agreement at this time.
Councilor DeMarco asks if the two pieces of narrow gage will be included back in
Director Calla states yes.
Councilor Letterie asks about swing replacement in park...they will be replaced.
It is also unfortunate parking lots in center are being done at same time, he would like to acknowledge
that Gioso is behind which is causing this problem of confliction.
Comments on the Vocational school and the need for a new but it comes down to finance...
SCHOOL COMMITTEE REPORT
Council President reports School Committee has had two meetings since Town Council last meeting...
Renaissance program and giving students courses and help with this...
Moving forward with accelerated learning.
The accreditation team coming in October to accredited.
Current report, athletics working and open spectators at all fields and games, 230 students in sports.
School Committee passed motion to name road behind Middle School High School, the Frankie Fabiano
Way, Frankie was very excited to hear this news.
Covid report, Sept. 1-10" /11 positive cases- 3 in Forth Bank, 8 in High School
Sept. 13th -17" 7 positive cases -2 middle 5 high school
Total 18 since school started, but no school spread
OLD BUSINESS
Fort Bank Access Road-Council President referred to Public Safety Committee
Flag Policy
Tree Ordinance
There are no reports on the Flag Policy or Tree Ordinance. Council President asks that these be carried
over to old business for our next meeting and hopefully a meeting will be scheduled for discussion.
NEW BUSINESS
-Pest Control- Councilor Letterie asks this to be put on agenda as there has been increased activity
outside CBD, Palmyra, and Ingleside area, asks if more baiting can be done. If this is a spread from the
CBD, it is something that needs to be addressed.
Interim Town Manager reports Melrose was on news and is having quite a problem. Not that we should
have this problem, but it is not germane to just our community, but baits will be done and inspected. We
are also in the process of reviewing companies with this baiting issues. We don’t bait private property;
we will bait public and try to determine where rodents coming from. Now with Trash coordinator we will
need cover requirements.
TOWN COUNCIL MEETING SEPTEM BER 21, 2021 PAGE 4
Councilor Ruggiero thanks for baited work that has been done in his precinct. Wondering if education
could be done for the citizens, 10 steps on how to avoid...ete.
-Inspectional Services Fees-Council President refers to the Finance Committee and Rules &
Ordinance
-Town Council appropriate $90,000 from the FB Reserve of Overlay Surplus Account to Assessors
Consulting
Line-Council President refers to the Finance Committee
-Town Council appropriate $86,000 for the Dog Park/Golf Shed Project- Council President refers to
the Finance Committee
-Town Council appropriate $20,000 from TC Reserve for the search of a Town Manager- Council
President refers to the Finance Committee
PUBLIC COMMENT
John DaRos (P4) Question about June tragedy and how it affected the neighborhood, he personally
commends all involved and is curious to know how to have discussions with who you may not agree
with, etc... where do we go from here? Are there other things being discussed? Curious to know what is
happening to site?
Council President requested site taken down a while back, but we had problem with hazardous materials
due to accident...had to have EPA come in and review.
Interim Town Manager reflects not necessarily hazardous materials and hazmat permit has been assigned
and demolition will commence. We also wanted to make sure our residents had time to deal with this
tragedy in their own way.
Public Director Hurley reports that they are working with an Organization, And Still We Rise, they are
particularly focused on vulnerable populations, marginalized populations, they develop mental health and
support. She will be announcing in the next week, three events, October 7, 14" and 21%.
Will be meetings to begin with community relations and update and really trying to help citizens that
Are vocal with our community, have been working with Mi-Amore, Schools, Religious facilities...
Neighbors have also been very active in memorializing these individuals.
CDICR is having a meeting tomorrow night that all may attend.
PUBLIC RELATIONS / UPCOMING EVENTS
Fall Forum — (Delivery of Services by Town) Schedule for 10-19-21 Senior Center 7:00PM
Councilor DeMarco requests information on the RFP Committee for the Middle School and if a meeting
has been scheduled?
Interim Town Manager reports that a bid has gone out for technical services he has put together a team of
3 people to evaluate the responses and once this is done, then a meeting will commence.
TOWN COUNCIL MEETING SEPTEM BER 21, 2021 PAGE 5
ADJOURNMENT
Motion by Councilor Letterie to adjourn at 8:45 PM
2™ by Councilor DeMarco
Motion Passed
A DVD of this meeting is available from WCAT / www.youtube.com
Public Documents used in the meeting are available at Town Managers Office.
Documents Used in this Meeting: Handwritten Notes / Committee Openings Documents Roll Call Log
Written Motions / Verbal Motion
Respectfully submitted,
Town Council Clerk
Denise Quist
TOWN COUNCIL MEETING SEPTEM BER 21, 2021 PAGE 6
TOWN OF WINTHROP
Town Hall, 1 Metcalf Square, Winthrop, MA 02152 Telephone: 617-846-1077
To: Chief Terence Delehanty, Interim Town Administrator
From: Stephen Cirillo, Interim Finance Director ‘3
Date: September 8, 2021
RE: Strengthening Winthrop’s Financial Condition (PY 2023 and beyond)
The Town of Winthrop developed its FY 2022 Financial Plan during a period of a world-
wide health crisis and disruptive local administrative leadership issues. The economic down-turn
as the result of the pandemic left municipalities searching for revenue to support ongoing
services. Winthrop completed its FY 2022 budget process with the adoption of a Financial Plan
that included a balanced budget, based upon the use of non-recurring funds, and low fund
balances within both the General Fund and Enterprise Fund budgets. The proposed strategy,
below, attempts to correct structural and service delivery deficits and strengthen the Town’s
General Fund and Enterprise Funds financial condition in future years.
The goals of the strategy are as follows:
Eliminate the structural deficits in the General Fund Budget;
Build future budgets based upon sustainable revenues;
Include budget initiatives to strengthen service delivery in key areas;
Implement strategies to address unfunded liabilities;
Implement policies to improve General and Enterprise Fund balances
(Liquidity);
Link Capital Planning between the General Fund (Bonds) and the Capital
Stabilization Fund (pay/go).
wPenr
a
In order to determine the financial condition of the community, I have used standard
tools, a “Long-Term Capital Improvement Plan” and a “Long-Range Revenue and Expenditure
Forecast” to identify areas of financial weaknesses, Both of these tools are essential first steps in
aiding both Administrators and Policymakers in developing long term strategies to meet future
budgetary pressures. These tools are readily available and should be incorporated into the early
stage of the annual budget process. Both the Long- Range Capital Plan (October) and the Long-
Range Forecast (November) should be prepared by the Town’s Finance Director, prior to the
development of the next annual Financial Plan. Attached, please find a draft Long-Range Capital
Plan in Attachment # 1, and a Long-Rang Revenue and Expenditure Forecast in Attachment # 2.
1. Eliminate the structural deficits in the General Fund Budget
A generally accepted accounting practice and best practices for developing municipal
budgets requires matching recurring revenue with recurring expenditures, and non-recurring
revenue with non-recurring expenditures, Structural Deficits are created by the use of non-
recurring revenue to support recurring expenditures. The Town’s FY 2022 Town Managet’s
Budget proposal included $580,000 (ARPA Funds = $450,000 and General Stabilization Fund =
$130,000) of non-recurring funds, creating a structural deficit, It is the current plan to substitute
additional local receipts and reduced state assessments for the ARPA Funds. Further, it is our
intension to substitute additional local receipts for the General Stabilization in FY 2023 to
entirely eliminate the structural deficit.
2, _Build future budgets based upon sustainable revenues
Sustainable revenue is recurring revenue, This includes property taxes, state aid, local
receipts and other revenues. It does not include debt exclusions, free cash, State and Federal
Grants, or the General Stabilization Funds, Reowring revenue needs to grow at an average rate
equal to the growth in expenditures in order to annually balance budgets.
Property taxes are usually the largest source of revenue for Massachusetts communities, The
calculation for estimating property tax revenue is to simply take the prior year annual net levy
(before debt exclusions), plus a 2.5% increase, and plus new growth development, There are other
limitations that currently do not apply to Winthvop. The new growth development is the only
variable factor in the calculation and is driven by normal growth (upgtading kitchens, bathrooms,
gavages, etc.) and growth from larger development projects. It is critically important that the
Board of Assessors identify all new growth, as once it is recorded, it is permanently in the yearly
base property tax. The Town has strengthened the communication link between the Town
Building Permits Department and the Assessors Department so as to identify all new growth in a
timely basis.
Recommendation — After the issuance of the building permits, but prior to the occupancy
permit being issued, the Building Inspection Department must review the overall project to
identify the true value of development, This will generate additional new growth and local
receipts.
Local Receipts are another source of revenue that is affected by local volume, demand and
pricing. The pandemic caused a significant drop in these revenue sources. As the world emerges
from the effects of the pandemic, the economy is beginning to recover. At this point, it is
advisable to look at the level of local revenues actually collected in the fiscal year prior to the
epidemic. Using FY 2019 actual local receipts as a benchmark, the FY 2023 revenue can be
adjusted to eliminate the remaining structural deficit and offset the effects of annual inflation.
Recommendation — A complete review of General Fund local receipts and Enterprise Fund
usex fees is warranted, as some fees / fines have remained the same for a period of time. In
order to determine the correct pricing of individual fees, fines and permits, it is
recommended that Winthrop seek professional consulting services. This may help the
community avoid the politization of revenue increases. Enterprise Fund revenue can
support the portion of the analysis associated with enterprise fund fees. The General Fund
analysis can be supported by the unallocated (20%) portion of annual free cash.
Recommendation — Due to the necessity of knowing that revenue would increase prior to
the submission of the next annual budget, the Town should consider transferring some of
the responsibility for setting fee/fine levels with the Town Manager or Finance Director.
Knowledge of the sustainability of revenue would strengthen long-range financial planning
process.
Other Revenue is generated from the transfer of revenue from outside funds or sources (Building
Maintenance Fund, Cemetery, etc.). The largest source of revenue is generated from charging the
Town’s enterprise funds for services rendered by the general fund, Currently these overhead
charges are inconsistent, with some funds being over charged and other funds being under
charged.
Recommendation - A complete review of overhead charges should be conducted to identify
all enterprise fund costs supported by the general fund.
3. Include budget initiatives to strengthen service delivery in key areas
As the fortieth anniversary of the implementation of Proposition 2% approaches,
municipalities have fallen into a repetitive process of including a small constant salary COLA,
level funding all non-personnel line items and waiting for the final numbers on State Aid and
health insurance. This approach for the most part, does not consider changes that occur in service
delivery demand or implementation. A most recent trend of experienced people not being
attracted to a career in the public sector has created key departmental vacancies, This in turn
creates a need to increase key staff salaries in order to deliver services in the manner that citizens
and taxpayer’s desire. Further, State and Federal regulations, have increased the service delivery
requirements, particularly in public education.
Recommendation ~ Increase the School Department FY 2023 budget base by $900,000
(3.94%) in order to assure that service delivery is supported by recurring revenue rather
than Federal and State grants.
Recommendation — In order to attract a qualified aud experienced Town Manager, the FY
2023 salary should be increased to $220,000. In addition, in order to allow the Finance
Director, the time to analyze and recommend future financial planning strategies, the
creation of a previously existing position, Assistant Town Manager should be made at a
salary of $70,000.
Recommendation — The volume of building activity has increased over the past few years.
In order to complete inspections on a timely basis, and identify sources of new growth taxes,
a current part time inspection position should be expanded fo full time, at an additional cost
of approximately $25,000. This initiative would occur concurrently with recommended fee
increases for Building and Health permits. A review of the Department organization
structure is also warranted.
Recommendation — The Town needs to review pay and class designations for all Town
employees as well as update job descriptions for all union and exempt positions. Estimated
cost of $50,000.
Recommendation — The Ferry Enterprise Fund cannot provide sufficient revenue to
maintain the service. This service should be eliminated.
Recommendation — The Information Technology (IT) Department needs to be re-organized,
There is no budget amount associated with this recommendation, The Finance Director
should take charge of this project and report to the Town Manager regarding staffing and
budget implications.
4, Implement strategies to address unfunded liabilities
There are three unfunded liabilities that municipalities must address in order fo secure a
strong financial condition: Pensions, Retire Health (OPEB’s), and employee vacation / sick leave
buy outs, Due to strong leadership in the Winthrop Retirement Board and a steady and healthy
investment environment, the Town’s Pension system is nearing full funding of the its unfunded
liability, If the current projections hold, the System shall reach the full funding level in
approximately the second half of FY 2027. If this occurs, the annual required contribution (ARC)
for pension appropriations shall be significantly reduced.
Winthrop’s current OPEB unfunded liability, as of the latest actuary analysis, is $109,500,000.
The Actuary has recommended and ARC of $570,000 with an escalator of 3% per year. Both the
unfunded liability and ARC will increase in future years. The Town funds the annual cost of
retiree health benefits in the financial plan, but does not provide recurring funding for the
unfunded liability. It has occasionally appropriated some prior year free cash for this purpose.
Presently, the OPEB special revenue fund is approximately $343,000.
The current organization structure of the OPEB special revenue fund also adds to the unfunded
liability, The OPEB fund is recorded on the general ledger as a special revenue fund and is
controlled by the Town Treasurer. As such, these funds are subject to reduction or elimination, if
the Town were to suffer a legal liability loss. As a result of this organization structure, the
biennial actuary analysis can only assume a rate of return of OPEB fund investment at the same
level as general fund cash (approximately 2%). If the Town were to appoint an independent and
atitonomous OPEB Advisory Board (municipalities often appoint the Retirement Board) the
funds would be legally protected and may utilize a higher estimated rate of return equal to that
achieved in the stock market (approximately 7%), This would significantly reduce the OPEB
unfunded liability.
Employee vacation and sick time buy back is a small but growing unfunded liability. The Town
should implement policies that would control the cost of this liability.
Recommendation — Upon reaching full funding of the Town’s Pension liability, analysis
should be completed to identify the appropriate ARC to keep the Hability fully funded. The
resulfing reduction in the ARC should be transferred fo the OPEB Fund to further reduce
that unfunded liability;
Recommendation — The Council should appoint the Winthrop Retirement Board as the
Trustees of the Winthrop OPEB Fund. Protected from legal liability, the fund can begin
using a higher rate of return in future Actuary analysis.
Recommendation — The Town should charge enterprise funds for an annual OPEB ARC.
The enterprise funds can appropriate funds to support its share of the OBEB ARC through
increases to the enterprise fund user charges.
Recommendation — Winthrop should begin funding the General Fund OPEB liability,
beginning in FY 2023 for the Town and FY 2024 for the School Department. Each of these
sections of the budget shall include a $25,000 appropriation in the first year of funding and
then increase that amount by $25,000 per year after that, Once the combined Town, School
and Enterprise fund contribution reaches the annually adjusted ARC, appropriation can be
adjusted to maintain the appropriate ARC.
i
Recommendation — Winthrop should establish policies which establish internal controls
regarding vacation and sick leave buy-back. Other community’s cap the buy- out amount of
sick leave allowed. Communities also limit the amount of un-used vacation tine that can be
carried forward, Utilizing the accounting principle of “first in, first out (FIO), vacation
buy back can be based upon the hourly salary at the time that the vacation time is earned.
5. Implement policies to improve General and Enterprise Fund balances (Liquidity):
It is important that a municipality maintain a sufficient level of liquidity to support
ongoing operations during times of economic down-turns. Having sufficient reserves to pay
bills during economic disruptions is a metric of the financial health ofa community. The
General Fund liquidity is made up of two sources: Unappropriated free cash and the General
Stabilization Fund. These sums, added together and divided by the net annual general fund
budget revenue (property tax minus debt exclusions, state aid, local receipts and other
revenue, excluding free cash, federal and state grants and General Stabilization funds).
Massachusetts communities that achieve a liquidity ratio of 10% of more are likely to receive
the highest bond rating (Aaa). Using the above formula, the Town of Winthrop would have a
general fund liquidity ratio of 5.12% in FY 2023. As this is a low liquidity level, steps should
be taken to improve this metric.
Enterprise funds also have the need for liquidity. The year end fund balance divided by the
annual revenue is the appropriate calculation used to determine enterprise fund liquidity.
Enterprise funds are usually far smaller than the net general fund revenue. As such, best
practices dictates that the enterprise fund liquidity ratio be higher, A target of approximately
20% is necessary. Winthrop has a mix of Enterprise fund liquidity, with some being far lower
than needed (Ferry & Recreation), some being about right (Water/Sewer, Waterway
Improvements & Solid Waste), and some having a far greater level than is needed (Rink).
Enterprise Budget adjustments can be made that should adjust the fund balances to the
appropriate level. Such adjustments need not be made at once, but can be phased up over time
to the target of approximately 20%.
Recommendation — The Town’s Reserve Policy should be amended to require the first
$250,000 of annual free cash to remain un-appropriated for emergencies, prior to
distributing the net free cash to various strategic reserves.
Recommendation — ‘The Town’s Reserve Policy should be amended to allocate 40% of
annual certified free cash to the General Stabilization Fund and 30% to the Capital
Stabilization Fund.
Recommendation — The Town should implement a strategy to phase up all enterprise
fund balances to approximately 20% of the amuual enterprise fund revenue, This
strategy may be implemented over a period of time.
In the event that the first two recommendations, above, are implemented, the general fund
liquidity ratio should increase to more than 8% by FY 2027.
6. Link Capital Planning between the General Fund (Bonds) and the Capital Stabilization
Fund (pay/go .
The annual budget pressure to provide sufficient revenue to support various services
often pits direct general fund services against capital needs. When this occurs capital funding
is usually the looser, Best practices suggests that a community should dedicate a specific
percentage of the net operating budget to capital. When this allocation occurs, the budget
battles shift in the goneral fund between services, and in the capital fund, between capital
projects. Winthrop has a smal! annual general fund budget ($54.9 million in FY 2022), The
combined capital funding commitment (non-excluded debt and pay/go) is 0.36%. The Town
has authorized a number of debt exclusions for large capital projects and has a healthy Capital
stabilization Fund. Existing financial policies commit a large share of annual certified free
cash to the Capital Stabilization fund. Usually, communities with net general fund budgets
similar to that of Winthrop commit between 1% and 3% of the annual net budget fo non-
excluded debt and pay/go capital funding.
Recommendation — The Town should prepare an annual Long-Range Capital Plan each
year, to be completed by the end of October. The Capital Plan should include projects,
funding sources and the year of project funding approval, The first year of each Long-
Term Capital Plan shall be incorporated into the next year’s Budget and finance plan.
Recommendation — The Town should comunit to an allocation of 1.25% of net general
fund operating budget revenue, including both non-excluded debt service, pay/go from
the operating budget and pay/go from the Capital Stabilization Fund. This percentage
commitment should be increased over time to approximately 3% of the net general fund
operating budget revenue.
Recommendation — There have been discussions regarding a new Public Safety
Building, In the event that this project is authorized, it should only be considered as a
debt excluded project.
Recommendation - Other sources of revenue, such as enterprise fund pay/go, enterprise
fund debt, ete. should also be utilized to increase capital improvement funding (Example
~ Rink Locker Room Expansion),
Summary
The Town of Winthrop has the opportunity strengthen budgetary and financial condition
ina short period of time, by adopting the recommendations listed above, Annual budget pressures
will always exist as long as service demand is greater that annual increases in revenue. Strategic
financial planning may resolve most of the gap between revenue and expenditures. Adjustments
to the FY 2023 Financial Plan are likely to be required, as more accurate data is received
regarding the key budget components of State Aid/Assessments and health insurance. Other
discretionary changes by the Town Council may also occur, The proposed FY 2023 Financial
Plan strategy can be achieved, with only minor adjustments.
Pa
TOWN OF WINTHROP LONG RANGE CAPITAL PLAN - FY 23-FY27
FY FY FY FY FY FY
Source Code 2022 2023 2024 2025 2026 2027
Public Safety
Fire Truck Lease A 85,000
Fire Truck Lease { 25,000 75,000 75,000 75,000 75,000 75,000
Police Vehicles i 47,000 48,410 49,862 51,358 52,899 54,486
Fire Dep Generator | 39,700
Sub-Total Public Safety 157,000 163,110 124,862 126,358 127,899 129,486
Municipal Bulldings
Hyde Bldg Window RepI-Library | 40,000
Newton Clock Tower Repairs 1 19,500
Frown Bldg Rehab / Upgrade } 100,000 100,000 100,000 100,000 100,000
Rink Pay/Go G 34,630
Public Safety Bullding (Debt Exclude) B 22,500 1,042,750 1,038,250 1,033,750 1,029,250
Rink Locker Room Expansion (Enterprise Fund Debt) G6 145,000 140,500 136,000 131,500
Sub-Total Public Bulidings 34,630 182,000 1,287,750 1,278,750 1,269,750 1,260,750
ISOURCE
General Fund Pay/Go A Sale of Land D Other G Bldg Malat J
General Fund Bond B PILOT E Retained Ear H Free Cash K
Fed / State Aid Cc Water/Sewe F Cap Stab I
TOWN OF WINTHROP LONG RANGE CAPITAL PLAN - FY 23-FY27
FY FY FY FY FY FY
source Code 2022 2023 2024 2025 2026 . 2027
Public Works
Sidewalk Replacement \ 50,000 50,000 50,000 50,000 50,000 50,000
Sidewalk Replacement 1 47,000 100,000 100,000 100,000 100,000 100,000
Revere St Project Design U 103,500
DPW Truck i 43,500
Fort Bank Acccess Rd t 16,671
Bus Stop Infrastructure I 40,000
Backhoe D 26,225 26,225 26,225
750 Dump Truck D 40,663 40,663 40,663
Front End Loader D 42,214 42,214 42,214 ~ - .
Pavement & Sidewalk Repair (Chap. 90) c 280,000 280,000 280,000 280,000 280,000 280,000
Sub-Total Fire Department 633,102 595,773 539,102 430,000 430,000 430,060
E Se
Asset Management Plan H 65,000
Lewis Lake Drainage (ARPA Funding) Cc 450,000
Lead Pipe Replacement (ARPA Funding) Cc 450,000
Sub-Total Water / Sewer 965,000 - - - - “
Grand Total 1,789,732 940,883 1,951,714 1,835,108 41,827,649 1,820,236
ISQURCE
General Fund Pay/Go A Sale of Land D Other G Bldg Maint J
General Fund Bond B PILOT E Retained Ear H Free Cash K
Fed / State Aid Cc Water/Sewe F Cap Stab i
TOWN OF WINTHROP LONG RANGE CAPITAL PLAN - FY 23-FY27
FY FY FY FY FY FY
source Code 2022 2023 2024 2025 2026 2027
General Fund Pay/Go A 85,000 - - - -
General Fund Bond B . 22,500 1,042,750 1,038,250 1,033,750 1,029,250
Fed / State Ald c 1,180,000 280,000 280,000 280,000 280,000 280,000
Sale of Land Fund 13) 109,102 109,102 109,102 - - -
PILOT E - - - - - -
Water/Sewer F . - - - - -
Other G 34,630 - 145,000 140,500 136,000 131,500
Retained Earn H 65,000 - - - - .
Cap Stab 1 316,000 529,281 374,862 376,358 377,899 379,486
Bidg Maint J . - - - - -
Free Cash K - - - - - .
Total Capital Approprition 1,789,732 940,883 1,953,714 1,835,108 1,827,649 1,820,236
TOWN OF WINTHROP REVENUE AND EXPENDITURE FORECAST - 2023 to 2027
Proposed Forecast Forecast Forecast Forecast Forecast
FY FY FY FY FY FY FY
Categories 2021 2022 2023 2024 2025 2026 2027
REVENUE:
Tax Levy 34,961,851 | 35,468,247 | 36,537,553 37,562,864 38,620,670 39,364,815 40,469,984
State Ald 11,929,884 | 12,162,403 | 12,353,758 12,400,325 12,551,247 12,598,279 12,752,219
Local Receipts 5,973,284 6,374,403 | 6,778,079 } 6,969,278 7,149,937 7,281,723 7,415,909
Other 997,537 905,140 908,414 923,232 938,346 953,762 969,487
Total Revenue 53,862,556 | 54,910,192 | 56,577,804 | 57,855,699 59,260,200 - 60,198,580 61,607,599
Revenue Change 3.04% 2.26% 2.43% 1.58% 2.34%
APPROPRIATIONS:
General Government 2,857,391 | 2,873,794} 3,199,682 3,280,808 3,364,110 3,449,602 3,537,348
Public Safety 7,569,274 | 7,722,425] 8,028,842] 8,244,019 8,468,644 8,699,911 8,938,018
Public Works 1,298,845 4,322,511 | 1,335,965] 1,363,536 1,391,849 1,420,926 1,450,789
Cultural & Human Services 1,112,138 1,129,789 | 1,189,273] 1,218,446 1,248,532 1,279,457 1,341,243
Education 22,242,750 | 22,842,750 | 23,742,750 24,455,033 25,188,683 25,944,344 26,722,674
Non-Departmental 17,801,678 | 17,689,488 | 18,133,020 | 18,623,705 19,145,285 19,366,781 19,770,705
Other Costs 100,000 450,000 50,000 - - - -
State Assessments 880,480 879,435 901,421 923,956 947,055 970,732 995,000
Total Appropriations 53,862,556 | 54,910,192 | 56,577,804 | 58,109,502 59,754,159 61,131,753 62,725,778
‘Appropriation Change 3.0496 2.71% 2.83% 2.31% 2.61%
Cumulative Surplus / Deficit Q 0 0 (253,803) (493,959) (933,173) (4,118,179)
Annual Surplus / Deficlt G (253,803) (240,156) (693,017) (425,162)
NOTES:
Revenue Appropriations
FY22 Adjustments Eliminates ARPA Funding
FY23 New Growth Is $232,717
New Growth Increases $210,000 per year
Chap 70 increases 2% per year
UGGA increases 1% per year
Local Receipts increase primarlly by PILOT's
Excise tax Increases 1.5% per year beginning in FY24
FY 23 Enterprise Overhead reflects additional Costs
Ferry Overhead eliminated
Enterprise Overhead Increases 2% per year beginning In FY24
PILOT Capital now supported by Cap Stab Fund
Salarles increase by 2% per year plus 1% Steps
Non-Salary Increases by 1% per year
Schools 3.94% or $900K
Health Insurnce increases by 5% per year
Used Pension Actuary Schedule
Regional Schools increase by 3% per year
Debt service - Nothing new added
Trash Subsidy phased aut
Eliminate Ferry Service
TA Salary ralsed to $220K
Deputy TA position = $70K
OPEB Fund Strategy Implemented In FY23
Town Liquidity Strategy implemented In FY23
Increase P/T Bldg Inspector to full time. $25K
Include Funding of Pay and Class Study. $50K
Rink Debt service for Locker Room expansion
TOWN OF WINTHROP
OFFICE OF THE TOWN MANAGER
Town Hall, 1 Metcalf Square, Winthrop, MA 02152 Telephone: 617-846-1077 Fax: 617-846-5458
Terence Delehanty
Interim Town Manager
Town Council Motion
September 15, 2021 Fiscal Year 2022
Motion Summary
Title: Overlay Surplus Appropriation for Five-Year Revaluation and Related Consulting
Motion ID: TCM22-005
Amount: $90,000
Funding Source: Overlay Surplus — FB Reserved of Overlay Surplus
Motion Details
Motion Type: Appropriate
Submitted by: Terence Delehanty, Interim Town Manager
Date Submitted: September 15, 2021
Text of Motion
MOTION: I move that the Town Council appropriate $90,000.00 from the FB Reserved
of Overlay Surplus account to Assessor’s Consulting line to cover the cost of
reevaluation of personal and real property and to continue Department of Revenue
mandates and maximize discovery of new growth; or take any other action thereto.
Funding Details
Funding Source Funding Destination
Account| Description Amount Account Description Amount
Overlay Surplus
(01-322000|FB Reserved of {$90,000 0114153-530500 |Consulting(Assessor’s)$90,000
Allen E, Maruzzi, Chalrman
Paolo Franzese Town of Winthrop
Diane Macken MASSACHUSETTS
Stephen J, Roche,
Dowuly Aesessor Boavd of Assessors
One Metcalf Square
Telephone: | 617/846-2718 .
Facsimile | 617/046-4760 Town Hall - Room 1
Winthrop, Massachusetts 02152
L BOARD OF ASSESSORS MEETING MINUTES
DATE: 9/14/21
Chairman Maruzzi called the meeting to order at 6:00 PM
ROLL CALL
Allen Maruzzi-Present- Yes
Paolo Franzese-Present- No
Diane Macken-Present- Yes
MINUTES
Motion by Mrs, Macken to accept the Minutes of the previous meeting as circulated by the Deputy Assessor.
ROLL CALL VOTE
Allen Maruzzi-Yes
Paolo Franzese-
Diane Mackon-Yes
PUBLIC COMMENT
NEW BUSINESS
The Board reviewed all correspondence, memoranda, bulletins, omails and/or other writings presented.
The Board voted on the release of the overlay for foreseen and unforeseen necessary assessing department
expenditures in the amount of $90,000,
ROLL CALL VOTE
Allen Maruzzi- Yes
Paolo Franzese-
Diane Macken- Yes
Motion by Diane Macken to enter into Executive Session
ROLL CALL VOTE
Allen EB. Maruzzi Yes
Paolo Franzese, Esq,
Diane Macken Yes
Banter into Executive Session 6:15 PM
BXECUTIVE SESSION
The Board discussed updates on the status of outstanding ATB cases.
Motion by Allen Maruzzi to exit Executive Session and return to open session for adjournment only
2nd by Diane Macken
Exit Excoutive Session 6:25 PM
Return to Open Session for Adjoumment only
ADJOURNMENT OF OPEN SESSION
Motion to Adjourn by Maruzzi
2nd By Macken
Meeting Adjoumed at 6:25 PM
BOARD OF ASSESSOR'S
Qian
ce
“o
——Qareteaben/
TOWN OF WINTHROP
Terence Delehanty
Interim Town Manager
Town Council Motion
OFFICE OF THE TOWN MANAGER
Town Hall, 1 Metcalf Square, Winthrop, MA 02152 Telephone: 617-846-1077 Fax: 617-846-5458
September 15, 2021
Motion Summary
Title: Golf Shed and Dog Park Funding
Motion ID: TCM22-008
Amount: $86,000.00
Funding Source: Various
Motion Details
Motion Type: Appropriate
Submitted by: Terence Delehanty, Interim Town Manager
Date Submitted: September 15, 2021
Text of Motion
Fiscal Year 2022
MOTION: I move that the Town Council appropriate $86,000.00 from the below listed
accounts to a new special article for the purpose of funding the Golf Shed and Dog Park
project; or take any other action thereto.
Funding Details
Funding Source Funding Destination
Account Description Amount Account Description Amount
711-596000 INSURANCE RECOVERY - POLICE 1,000.00 TBD New Special Article 86,000.00
715-596000 INSURANCE RECOVERY - DPW 13,892.40
718-596000 INSURANCE RECOVERY - COA 26,032.98
719-596000 INSURANCE RECOVERY-LIBRARY 0.14
720-596000 INSURANCE RECOVERY-RECREATION 792.43
0111057-578100 | Town Council Reserve 15,000.00
0191051-517510 | Group Ins Town 6,800.00
0193058-584128 | Police Cruiser Replacement 3,025.94
0196052-588122 | FY16 Dog Park Design & Permit 6,850.00
0196052-588135 | FY17 ASSESING VALUATION 2018 1,841.22
0196052-588144 | FY17 GAZEBO REPAIR 2,727.40
0196058-588181 | FY20 SNOW REMOVAL EQUIPMENT 2,519.10
0196058-588184 | FY20 ATC PLAYGROUND AND REPAIRS 5,518.39
Total 86,000.00
TOWN OF WINTHROP
OFFICE OF THE TOWN MANAGER
Town Hall, 1 Metcalf Square, Winthrop, MA 02152 Telephone: 617-846-1077 Fax: 617-846-5458
Terence Delehanty
Interim Town Manager
Town Council Motion
September 15, 2021 Fiscal Year 2022
Motion Summary
Title: Town Manager Search
Motion ID: TCM22-007
Amount: $20,000
Funding Source: Town Council Reserve
Motton Details
Motion Type: Appropriate
Submitted by: Terence Delehanty, Interim Town Manager
Date Submitted: September 15, 2021
Text of Motion
MOTION: I move that the Town Council appropriate $20,000 from the Town Council
Reserve to a Special Article for the purpose of a search for a Town Manager; or take any
other action thereto.
Funding Details
Funding Source Funding Destination
Account Description Amount Account Description Amount
411057-578100 {Town Council Reserve |$20,000 New Special Article {$20,000
TC Reserve Balance: $48,000
Amount Requested:_ $20,000
TC Reserve after motion approval: $28,000
TOWN OF WINTHROP
OFFICE OF THE TOWN MANAGER
Town Hall, 1 Metcalf Square, Winthrop, MA 02152 Telephone: 617-846-1077 Fax: 617-846-5458
Terence Delehanty
Interim Town Manager
Town Council Motion
September 15, 2021 Fiscal Year 2022
Motion Summary
Title: Adopt New Fee Schedule for Inspectional Services
Motion ID: TCM22-006
Amount: N/A
Funding Source: N/A
Motion Details
Motion Type: Adopt
Submitted by: Terence Delehanty, Interim Town Manager
Date Submitted: September 15, 2021
Text of Motion
MOTION: I move that the Town Council adopt the new fee schedule for the Inspectional
Services Department as presented in attached memo; or take any other action thereto,
Funding Details
N/A
TOWN OF WINTHROP
OFFICE OF INSPECTIONAL SERVICES
Al Legee Commissioner of Inspectional Services
100 Kennedy Drive, Winthrop, MA 02152 Telephone: 617-846-4344 Faxi 617-539-5826
MEMORANDUM
TO: Town Council
FROM: Al Legee, Commissioner of Inspectional Services
DATE: September 9, 2021
RE: Proposed Fee Increases
Over the past seven years, the volume of building inspections has increased. Given the
increase in population in Town, the amount of daily construction, new construction and
violations, the Department needs to increase the amount of time spent for zoning review, plan
review, and approval, The cost of full inspections has risen while the fees associated with these
inspections have remained the same. Recently, the Inspections Services Department conducted a
fee comparison with other communities in the greater Boston atea, The compatison findings are
attached, Our conclusion is that the Town of Winthrop is lagging behind several communities in
the fee levels associated with inspections. After review of the data, we recommend the following
changes to our fee structure:
Building Fees:
Sign Permit to increase from $50 to $100
Certificate of Occupancy from $100 to $200
Condo Conversion per unit from $250 to $300
Reinspection violations we would like to enforce a $50 fee
Real Estate walkthrough for habitability inspection $50
For Commercial Permits:
Building Permits, currently we charge $12 per 1,000. We would like to increase this to $16 per
1,000
Electrical permits we charge $12 per 1,000. We would like to increase this to $16 per 1,000
Plumbing permits we charge $12 per 1,000, We would like to increase this to $16 per 1,000
Gas fitting permit we charge $12 per 1,000, We would like to increase this to $16 per 1,000
Mechanical Permit we charge $12 per 1,000. We would like to increase this to $16 per 1,000
Commercial Certificates of Occupancy we charge $75 per unit, we would like to increase this to
$150 per unit.
Commercial Certificate of Occupancy we charge $50 per unit and would like to increase this to
$100.
$125 per sq ft for new construction on both residential and commercial, We would like to
increase this to $200 per sq ft.
$100 per sq ft for xemodeling, we would like to increase to $150 per sq ft.
$100 per sq ft for attached garage we would like to increase $200 per sq ft
$75 per sq ft on detached garages we would like to increase this to $150 per sq ft.
$25 per sq ft for sheds, We would like to increase this to $50 per sq ft,
$40 per sq ft for decks without roofs, We would like to increase this to $100 sq ft.
$50 per sq ft for decks with roofs. We would like to increase to $150 sq ft.
We would like to charge $50 for a letter of denial to move forward to appear to the Board of
Appeals when a special permit or variance is needed,
Certificate of Inspections which are done yeatly we charge $100 we would like to increase this
$200, These inspections include 304 inspections and are conducted after work hours since most
of these establishments are open at night, We conduct these with Building, Health, Fire as well
as Police,
Health Fees:
Food Service Permits we currently charge $150, We would like to increase this to $300
Retail Stores we charge $100, we would like to increase this to $200
Swimming pools we charge $100, We would like to increase this to $200
Catering Establishments we charge $100 and would like to increase to $200
Milk and cream we charge $40 we would like to change this to $100
Habitability Inspections we currently charge $75, We would like to increase this to $150,
Tobacco Sales we charge $200 we would like to increase this to $300
Body Art Establishment we charge $300 we would like to increase this to $400,
Temporaty Dumpsters we charge $60, we would like to increase this to $100.
‘Bmouty $3 pum ops yom.
SHO EDP YOR 495 STS
Osssoux Somos
os $b 01 Tesount sey pots yee aes sss ovis. peed SogeTs|
oor oT ozis -sredomg premey|
ost ost oes asts SEER raary|
os os oss os Pisdiatgy Lenodey|
Ost ost smd zion oges sms 7 SAD goog Homey uy épog]
sh ost 0cs, NOEs aesengstqusg try Apog|
os apmns ges, mad ses ‘nossodag Anteoaey|
_ x ses aiming mg]
ot of or f<3 oS EID por py]
cots: ors, sara]
ozs cos, sung geoyl
ost 00%, ost ses nots. Feaounz aeunary exsegor |
ove, StL ps 2d 7g SHS EMM NOTS20 joRONT OF OY oor Udsgon's Dao gsts Tbs po’ E-DPIM SLs sis ‘semoy rd pos]
spo peH]
ossexyeossodoma:
oor ooo Lae ozs, Lead oy ost corT Bd zis Tamed poop wrmunseD}
UF ORS Oo0E SS 33 OS oootsyots ong doer does conrad ors As dumtapy s9$ pire 0gd'T 2d eS BZ OF COTTE TTS muted EDT
MN 000s samarlg Sanco]
st oo1s 0001s. ammgned Suyqumya|
trus00 295 peso amas and Ors smIE OSs wpto Sis wim MATEY OFS ‘00't 234.925 o0o't 98 915 oem Gepnemmne 305 054-30) ay or ono =d ZS sal
DYE ss amy Ts} 2G oss EMCI OS DamMYDdgissydoss | Hye sis aq Cray ST cot ad gas ‘eRHmaD 203 OzSI OON'T Ad O1S. FUT OSs (qepmeancs 295 954-30) 35 on» NDOT BA ZIS ‘Serqumygt
PaLaLspop soy bs aad oss
Jeet ope spsop 20g y bs 2d OFS
ponssapybs.nd seg
silent popemp nd sis
‘Supepounssay bead gots
‘ru ASS OOF aseser da rngssne osts Tose da ses, mneo ant ang Y bs nd STS yang Sepmg|
wad 901s amd 057s ‘BepATED epUDD|
mn nde tl Ip od pots $tis Atay Taey osts Tits 29) COTS. apa ad opts. dountnaey 30229}
DUP S15 90NT BTA SZS oor 2407s ono >A sis ose oootad zis ‘Sapmg peesnannee|
DUE SISHE DONT ST 0F STS 3 oF+ oot Sozts dood sts D004 ozs woo adors oor md zis 8S oF +9001 29 71S, Rand IupEg wep]
om rR PIPR aT wORy Oy CoM Soup