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20240611 City Council Finance and Property Committee Meeting Minutes Matthew J. St. Hilaire-Chair Julie R. Flowers Brendan S. Sweeney Finance and Property/City Council Committee of the Whole Budget Meeting Minutes Tuesday, June 11, 2024, 6:30pm City Council Chambers, 3rd Floor, Beverly City Hall, 191 Cabot St. Matthew St. Hilaire called the meeting to order at 6:30pm. Committee Members Present: Julie Flowers, Brendan Sweeney, Matthew St. Hilaire Councilors Present: Hannah Bowen, Steven Crowley, Kathleen Feldman, Todd Rotondo, Danielle Spang Absent: Scott Houseman Order#161-Mayor's FY2025 Budget- Department Budget Sessions Essex North Shore Agricultural& Technical School—Dr. Heidi Riccio and Paul Manzo Riccio provided a budget booklet at the meeting and gave an overview. Riccio stated recently settled teacher negotiations account for approximately 57% of the budget increase and 17% of the increase are related to capital needs. Sweeney asked about program costs that may be increasing. Riccio stated there have been increases in costs for special education as well as increased costs of materials such as copper for the plumbing program,wire for the electrical program, and food for the culinary arts program. Sweeney noted the increase in enrolled students coming from Beverly and asked if admissions looks at the proportion of students from each town when taking in students. Riccio stated the school does not have a minimum per community. We do not have a regional agreement; we have bylaws which are a step above a regional agreement. Over the last five years we created an admissions subcommittee to look at equity and make sure that kids have access. We have also added seats and had an influx of students. In 2017,the incoming 9th grade was 335. In 2024, it will be 500. It will slow now because we don't have much more space to expand. Flowers asked about the cost per student at Essex versus the cost per student in Beverly. Riccio stated the school spends about$22,500 and bills $18,000. Ricci stated the school is at the minimum required to spend per child. The difference between the two numbers is competitive grant funding and revenues. Charochak stated for Beverly schools the number from DESE is $15,000 per pupil but typically there are other funding resources that are used, so it does not really explain how much is spent on students. It also varies by school and programs. Flowers asked about assessments when students are school choice. Riccio stated the vocational school has to vote every year to accept school choice students or not. Essex does not accept school choice. Feldman asked about the After Dark program and how the school is trying to keep as many kids as possible from falling through the cracks. Riccio stated the After Dark program started with programs where enrollment has declined and there have been some shifts in the program. Students come in at 11:30am and stay until 2:30prn rather than after school so they can still participate in their local high school's after-school activities. Two recent Beverly students started at the After Dark program then enrolled full-time. St. Hilaire asked if the increases in the overall budget are directly tied to increases in enrollment. Riccio said it is somewhat. The dollar figure increase is a direct result of the increases in the cost of doing business, cost of materials and the teachers' union contract. The school also received less in SOA [Student Opportunity Act] funding and Chapter 70 funding. Beverly Public Schools—Dr. Suzanne Charochak Charochak presented goals, budget priorities, and factors impacting the budget for the year. Flowers asked what the MassHealth realignment means for the schools. Charochak stated there was a change in the threshold that caused a number of districts to shift groups. Inflation was also a factor. About 80 out of 323 districts are in this position. Bowen asked about the transition out of ESSER fonds and programs that will be maintained. Charochak stated the department was cautious in using the ESSER funding. A majority of the positions were designed as interventionists. We hope a lot of the work we have done over three years has mitigated some of the negative impact for students. We did not want to have this cliff at the end of ESSER. One of the areas that has found to be a challenge is that digital curriculum comes with licensing, unlike books that would be purchased and kept for years. Charochak spoke about setting up a schedule of license renewals so they are staggered and do not all need to be renewed at the same time. There are still a few programs out there that we can capitalize on for funding. We have a plan to get to a safe, leveled funding for technology. The City Connects program manager and some EL positions were funded through ESSER but then absorbed in. There was discussion regarding the revolving funds, REACH and Beacon programs, and the changes in Chapter 70 funding. Bowen asked to hear from the budget analyst about the sustainability of the path we are on and the big picture. City Council Budget Analyst Gerry Perry stated this is not sustainable in the long run under . Proposition 2%2. Perry stated he is very concerned about FY2027 and potential layoffs. The increase in vocational education is due to both an expansion of students and increased per pupil costs. For the Beverly schools,this looks like level-services across the board. Spang highlighted that while taxes cannot go up more than 2%2%,the residential values continue to increase which is helpful for residents to know if they see their bills increasing. Perry confirmed and stated it will be a hit to the residential tax side of things. Commercial values are flat. With excess levy capacity,we are increasing taxes by 3%this budget. Even with the exact same budget as last year,those residential taxes would go up because of the increased values. A motion to refer Order#161 back to the City Council for the public hearing on Thursday, June 13 at 6:30pm was made and seconded. A vote was taken, and the motion carried(3-0). A motion to adjourn was made and seconded. A vote was taken, and the motion carried(3-0). The meeting adjourned at 8:01pm. Beverly City Council Committee on Finance and Property Meeting Minutes—June]],2024 page 2 of 2