20210608 City Council Finance and Property Committee Minutes City of Beverly
Special Budget Meeting of the City Council-f; � Q mv �€�JY0r-
Finance & Property/Committee of the Whole;!
Public Meeting Minutes
Tuesday,June 8,2021,7pm 2C21 Nov 0 P 1: 51
At 7:07pm, Tim Flaherty, Chair of the Finance and Property Committee called the committee to
order and called the Committee of the Whole to order.
Members Present: Stacy Ames, Timothy Flaherty, Kathleen Feldman, Julie Flowers, Scott
Houseman, Todd Rotondo,Estelle Rand
Members Absent: Dominic Copeland,Paul Guanci
FY22 Department Budget Sessions
Public Schools
Suzanne Charochak, Superintendent,presented on the goals for the district, such as inclusive
practices,rigorous and consistent curriculum, and improving operations and management
practices. The major factors impacting the FY22 budget are contractual obligations, enrollment,
and addressing the impacts of Covid-19. Enrollment is up in Beverly,unlike other communities
in the area. Out of district numbers continue to decline. For FY22 the district will receive
additional Covid-19 relief funding under ESSER II and the Student Opportunity Act(SOA).
These funds should not be utilized for costs that will be recurring beyond the FY23 budget cycle.
Charochak gave an overview of the changes to the budget.
Rand asked if the City's priorities align with the state and about the logistics of implementing
new curriculum and reviewing curriculum.
Charochak stated the goal of acceleration is something that the Department of Education is really
focusing on, and taking a look first at family engagement, starting with attendance, and looking
at what needs to be done to assess and what kind of data is needed to find where students are in
the progression of skills,and finally how to make sure we are addressing in time standards while
working to fill in some of the gaps. That aligns really well with the goals that we have. We are
taking a look at the long-term plan and making Beverly a place that attracts and retains diverse
educators. Charochak gave a summary of the math program that was recently selected. Dr.
Flaherty,Assistant Superintendent,who is in charge of curriculum and instruction, and a core
group of teachers were on a committee that started with three or four programs they sifted
through, called districts that were using them to try to get some feedback, and had some
demonstrations. Those teachers then made presentations to the rest of the staff. They had a rubric
as to the things they were looking for.
Rand asked about the last time curriculum review was done.
Charochak stated it is done on a cycle, so in 2019-2020 one was competed for social studies,
2020-2021 math, and next year will be ELA.
Flaherty clarified for the public that the Council's role is very different for the schools than it is
in overseeing other departments. From a legislative standpoint,the School Committee works
with the superintendent on a day to day basis. Flaherty stated,that being said,he worries about
sustainability. It is fortunate to have the Covid money, but moving forward, it is a challenge to
balance that because when you make a budget in May, come September things may have
changed. Flaherty asked if enrollment is going up from Beverly residents choosing not to go to
private schools or because of students from other towns, like school choice.
Charochak stated Beverly is at full capacity for school choice and has a waiting list. The School
Committee gets to set those limits.
Jean Sherburne,the School Department's Director of Finance and Operations, stated there are
more students not going out to other school districts.
Charochak stated that it is a benchmark of a healthy school system to have a lot of people here
that don't want to leave. There is a lot of in and out between the private schools or the technical
school, but enrollment is steady.
Flaherty mentioned the Essex Tech"after dark"program, and he stated that he is concerned
about the waiting list for Essex Tech. There are about 300 students now on the waitlist. Flaherty
asked if those students go to Beverly High and don't have the resources needed,then how do we
educate kids that are on that list. He asked if there is any advocacy happening for another tech or
a bigger school.
Charochak stated there is a push to create pathways; in essence that is what Essex Tech does. At
Beverly High, we can see what we are doing internally and make sure that what we are doing
gets kids ready for post-graduate outcomes. We are looking at how to prepare our students.
Rotondo noted the total district enrollment seems like a slight decrease from what was projected.
Charochak stated we are always keeping a close eye on those things. We had more students
homeschool this year, and we anticipate them returning.
Rotondo asked if the RLA [Remote Learning Academy] will continue and if there is a higher
cost to that model.
Charochak stated the district is not going to have it next year. A survey of families was done, and
there was not enough interest in continuing hybrid. We will continue to watch it and look at if
there is a regional opportunity, but there would be an added cost to it for hiring more staff and
essentially running another school.
Flowers praised the remote learning and transition back to in-person. She asked, looking ahead,
what resources might be needed going into FY23/24 to help with a smooth transition.
Charochak stated the real challenge will be FY24. There is something in state guidelines that
says we cannot decrease the amount spent on special education, so we will have to keep an eye
on that. We are trying to focus on one-time costs that will build pathways in high school or build
curriculum enhancement.
Flowers asked Dr. Charochak what the things are that she sees coming as opportunities.
Charochak stated she would like to devote a little more attention to the science and math areas
and making sure those opportunities are for everyone. We can do a better job than we are doing
right now in making sure that access to advanced coursework is available to everyone and
presenting opportunities at an earlier time. We are all concerned about the social/emotional
return and how to address the kids that won't transition back as easily, what supports are in place
for them, and what safety nets do we need to have for families.
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Flowers asked if there is a vision for staffing going forward to be able to help critical support
positions.
Charochak stated we are looking to rebuild some of those and looking at job responsibilities and
descriptions; we are in negotiations right now. We entered interest-based bargaining instead of
traditional bargaining. It is a unique opportunity to talk about what is important to us and how we
can mutually agree on ways to get there.
Houseman expressed his concern about the long-term sustainability of school funding and the
challenge of supporting the schools, students and families while at the same time being fiscally
responsible. Houseman stated his other concern is Essex Tech and the waitlist. There is a huge
unmet need there. Houseman asked what kind of conversations might be out there and the big
picture dialogue about that challenge.
Charochak stated a guidance counselor was added for students in eighth grade to help with the
application process for Essex Tech. Charochak stated she does worry about a school program
that was designed to provide opportunities and access to trades turning into a mini-preparatory
school for something else like college. Charochak stated she has been working with the
superintendent at Essex Tech and talking about the admissions process. We are a member of the
Essex Tech region so can't create the same subject pathways they offer but can create other
fields. "After dark" is for rising juniors who can opt into a program with six specialties. They are
enrolled at Beverly High and take core classes there, but then are bussed to Essex Tech and over
the next two years get the equivalent of shop classes of students that enrolled at freshman year. It
gives them that opportunity.
Houseman noted that in the ESSER II list provided there is a director of high school curriculum
and asked for elaboration.
Charochak stated that currently in the model at Beverly High School,there are no department
heads. Beverly was very thin in the amount of curriculum support being offered and in the
development and review of curriculum. That actually morphed into two positions - a director of
curriculum for STEM that would look specifically at science and math, and a director of
humanities that would look specifically at the curriculum for ELA and social studies. We want to
make sure that we are not leaving teachers in the lurch or putting too much pressure on our
assistant principals.
Ames suggested teaching as much civics as possible. People need to understand how government
works. It is a value as a democracy that we can bring forward through education. There is a
larger discussion to be had in the next few months as money comes down to us and to understand
our values as a community,to make us more sustainable as an economy. As many as 2 5% of jobs
that are lost will be lost permanently, and training will be more important than ever. Ames stated
she thinks Essex Tech is taking the wrong tack. If they have an advanced manufacturing program
they have developed, it seems that to an extent it is incumbent on us as communities to have that
Etype of curriculum if there is a market. We need to train people to be employed. As a Council,
that is where hopefully we can be supportive to those goals. Those are policy decisions that
j affect the economy of the City. Ames stated she wants people who work here to live here, and
the only way to do that is to educate them here. Ames stated that over the last year, she has come
to believe that there are a tremendous amount of people in pain, and it is incumbent upon us as a
government to try to create hubs where services can be delivered kindly and efficiently. The
school system has known that for a long time. It is about trying to bridge the gap and the
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understanding that life before is different from what our reality is. Ames stated she would like to
understand how teachers are paid per community for the area. Living in a bubble, it is always
good to see the big picture.
Feldman mentioned that the district hired Dr. Morgan this last year and asked where in the
budget that is funded.
Charochak stated it is a grant funded position for two years.
Feldman noted that the total budget is broken out into the City contribution and the Chapter 70
and asked how the money is allocated within that in spending and if there are limitations on the
Chapter 70 money and what it can be applied to versus the city contribution.
Charochak stated there are some restrictions on how SOA money can be used, which is part of
Chapter 70; we have to write a plan on how we are going to use that money and pull that out.
Otherwise all the money goes in the pool and then we designate it into certain areas and we can
spend within those areas, but if we have shifts or changes we have to go to the School
Committee much like is done here to transfer money within the budget.
Flowers asked about the elementary school budgets where it looks like some of the principals'
salaries are lower for FY22 than for FY21.
Charochak stated some of it is new principals or restructuring.
Engineering,Public Services, Public Property
Michael Collins, Commissioner of Public Services & Engineering, stated it is nice to come on
the heels of the superintendent. We have always worked very closely with the schools,but
through last spring, summer, fall and most of the winter, it was everyday communication with
the superintendent and her staff making sure the schools were ready. The school staff did a great
job. Collins stated he is really proud of the public services and custodial staff who never missed a
beat during the pandemic.
Flaherty asked for highlights of any big changes.
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Collins stated largely the budget is similar to last year. There are some additional monies in the
public properties budget due to changes in grants. A lighting retrofit was just completed in the
library. That project was about two thirds paid for by National Grid through incentives and the
rest will pay for itself in less than two years.
Flaherty stated the work that Collins and his department have done compared to other cities and
towns with potentially bigger budgets has been extraordinary. He highlighted some of the
professionalism that the City has moved towards and how it has become more efficient.
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Collins stated it really starts with the people we hire. We get a lot of return on our investment.
We take on a lot of projects in house. It really comes down to the individuals in the department
and what they do every day.
Rand stated she was recently speaking to a local business owner who was astounded by how
much is done in house by DPS and how much talent is in the department. Rand asked Collins to
expand on some vacancies seen in the budget.
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Collins stated it is definitely a struggle to hire. There is a shortage of usable talent. We have cast
a wide net but it is extremely difficult to hire. Any tradesperson you would talk to right now is
starving for help.
Rand asked if we need to do something different as a community with compensation or training.
Collins stated he does not think that is the case. Some of the contractors that we work with pay
incredibly well. Anyone who is not working right now should consider getting into the trades.
Rand asked if they take on interns from the high school programs.
Collins stated they have two interns right now, a plumbing intern and electrical intern. The tech
[school] is such a vital resource, and we need more training like that. It will be a valuable
experience for them.
Rand asked how long it would take for an intern to be ready to be hired by the department.
Collins stated the ideal would be to hire someone who has worked in the "real world" first to
learn and appreciate how good the City job is and to go through a similar process and have that
experience. We hire well, so our employees come self-motivated. It is important for a young
person to have a variety of experiences.
Feldman stated in Ward 5 there are a lot of intersections and roads that are state projects and
under the state budget, and she asked if there is a way to see what the City's contribution is
towards any of those.
Collins stated it is not broken out in the budget, but we can certainly pull that information for any
particular project. The City takes on all the design responsibilities, the right away acquisition,
then hands it over to the state for the bids and work. We usually see more than a ten to one return
on our investment on projects like those. If it is a truly state funded road, they may take on the
whole project.
Flowers noted the sanitation costs going up,which is not unique to our community, and for any
thoughts on mitigating some of these rising costs.
Collins stated the factors that are driving the increase are in the contract; for the first time in the
I history of recycling in Beverly, we are going to pay for recycling, and there is an increase in the
charge for disposal. We have had a lot of discussion about how to temper those costs. The trash
fee only covers a tiny bit of that at this point. We have talked about how to get to a citywide
E composting model. The administration and mayor have put a lot of emphasis on sustainability.
Certainly the food waste doesn't need to go to a landfill, and when it does it creates methane. We
don't need that in our trash stream. Ours does not go to a landfill but is incinerated. If we could
find a way to digest it locally, it is certainly a growing market. DEP's regulations are ever
changing. There are certain things that are in the waste stream now that are likely going to be
banned. Mattresses and box springs will be banned soon. That is very difficult waste to handle
and properly dispose of. Having curbside compost will save tonnage. At this point it is not free
and may not save much money,but it is the right thing to do. Some of the textile bins are picked
up weekly and that is not enough. One of the goals is heavy education. Collins stated he read in a
trade journal recently that the recycling market is bouncing back, which is heartening to see.
There was discussion between Houseman, Collins, and Ayles regarding some of the line items
and POs that were carried forward.
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Houseman mentioned the cemetery fences, stating that Bisson St. has an orange snow fence,
which is an embarrassment, and is missing sections of the fence. We ought to be able to do
better. Houseman stated he looks forward to working with Mr. Collins on it to see what kind of
funding or historical designation might help.
Collins stated the current fence has been there since the '20s and '30s. One of the joys of the job
is learning and indulging in history to bring back some of the things that have been lost like that.
Rotondo asked which budget the design for the Bridge Street project would come out of.
Collins said it would come from the sidewalk and street budget. Some of that money each year
inevitably gets leveraged. We would never be able to return that type of construction for the
City's funds; we have to look to state and federal help.
Ames noted the estimated $3.3 million that will be in the capital projects fund in the next five to
six months, and she asked what that will be used for and how long it would take to run through
that amount.
Collins confirmed it would be used within one year. If 100% of the dollars were in sidewalk and
paving,that's a lot of work to squeeze into the season. We need money for a number of different
things in the City.
Ames asked what the major projects coming up are.
Collins stated certainly the design of Bridge Street. We are in design for a roundabout at Brimbal
and Dunham to bring some relief to that neighborhood. We are completely rebuilding the signals
on four intersections on Elliott Street to upgrade the signals and the timing and to bring
accessible pedestrian signals to those intersections. We will be moving an intersection over to
Echo Ave. and paving.
Ames stated communication could be better. On the City of Salem website,they have a list and
map of streets that will be paved in the next couple years. We all understand there will be
variabilities. The more people know about where we put our money the better off we are as a
community. Ames stated she understands it takes time and money. Interns could be a massive
help across the board. Ames said the frustration she often hears is that people don't know what
will happen next. Ames stated she wanted to make that statement because it is the one style of
government that she believes in across the board.
Collins stated that is typically on the website, but the City switched websites this year and none
of the project pages translated over. Compared to our sister across the river, it is a totally
I different environment over there;they have staff in positions we've never even heard of and are
a lot better equipped. Collins stated he does not disagree that it is always better to tell people
what is going on, but very often, we will put a letter in their door and later they will call and say
they had no idea this was happening.
Ames asked if there are plans to repave the areas of Cabot St. that were affected by water work.
Collins stated yes, but the gas company has a project that we only learned about a few months
ago to install a gas main the length of Cabot from the bridge to Federal St., so we cannot do
much until that is done.
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Ames stated the snow damage line should be increased. For us to be able to repair what we bust
is proper. Ames referenced the equipment budget and asked if rental is increasing as a deliberate
move or just the way the jobs were coming through.
Collins stated if it makes sense to own that is preferred, but some projects come up that require
equipment that is not worth buying.
Water Revenues & Expenditures, Sewerage Revenues & Expenditures
Ayles stated there are two enterprise funds, one for water work and one for sewer work. They are
effectively their own entities, and they bring in fees through the rates that get set by this budget
process every year. Those funds that we anticipate coming in through billing of the usage then
work to fund the operations of those entities throughout the year. Part of that is debt service for
projects that the administration comes before the Council to approve over the year; some of it is
projects from ten or twenty years ago that we are still paying debt service on. There are
assessments that get levied against these accounts as well that the rates ultimately fund. Those
are for the Beverly Salem Water Board, we assume a portion of that cost for their infrastructure
and operations, and we assume an apportionment of the operating costs for the South Essex
Sewerage District across the way. This past year there were a number of projects that were
approved. We have a very good water system, but as a result of all this work that we do, the rates
are projected to go up. Ayles pointed out that cumulatively over the last five years there has been
a total increase of.34%, so this is a bit overdue. If approved, these water and sewer rates will put
Beverly at or below all of our neighboring communities with the exception of the very lowest tier
of Peabody's tiered rates; we are just slightly above that with these rates.
Perry stated there are two methodologies to fund enterprise funds. One is the rates. The other is
the transfer of retained earnings from the balance sheets,the same thing as free cash. Perry stated
he doesn't want the Council to be caught off guard next year. The administration has asked the
Council to transfer retained earnings. If the amount of money transferred were reduced,the rates
would have to be increased.Next year's fund balance will be lower; we won't know until about
November. So next year if we try to offset rates, with fund balance,there may not be as much
there, so we would have to increase costs. There is a possibility of seeing a more significant rate
increase next year. It may not happen, but it is something to be aware of. We will know more
around November when the balance sheet is done.
Houseman asked about retained earnings,the amount being drawn down, and if it would lead to
trouble next year.
Perry said not necessarily. Perry stated he believes we should give as much money back to the
ratepayers as possible. Perry said he is not uncomfortable with what is being done. Based on
projections, we won't go into deficit, but it will likely come down some. There may not be as
much fund balance to offset rates in next year's budget.
Ames asked if the only thing these funds can be used for is balancing the rate.
Perry stated it can also be used for anything relevant to water or sewer, for example a water
truck.
Ames asked if traditionally we have used some of those monies in the past for water projects.
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Perry confirmed and said it has been used to offset rates before,just not usually at this rate. Perry
stated he is not in disagreement with Mr. Ayles,just trying to prepare the Council for the future.
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Ames asked if there is a work opportunity cost to drawing it down to this level and if there would
still be a sufficient fund balance if there was an emergency project, or if it is being drawn down
to the point where there is no more room to take money out of this fund.
Perry stated it is his opinion that there is enough, and also with the stabilization fund, we
certainly have enough reserves to handle that. We will be in good shape here.
Ames asked what our community partners are doing and if their water and sewer rates are going
up as well.
Collins stated that some neighboring communities are more than double for water and sewer
rates. Beverly is by far the lowest around. Collins stated he could think of other ways to fund an
emergency.
Rotondo stated, with regards to the enterprises funds, in the ARPA money that is becoming
available there is money that can be used towards water and sewer infrastructure and asked if
that is something that can be drawn from.
Cahill stated that specific to ARPA there is eligibility for water, sewer and broadband
infrastructure. We are still learning about the parameters of what can be done. The intent is to
focus those types of infrastructure in environmental justice neighborhoods. It may be that as we
do the water meter replacement project, meter replacements within the census tract may be
eligible, but it may not play out that way. We are still learning how to interpret it. It may be an
opportunity to help underwrite some of the costs of what we are looking to do.
Ayles stated that with the fund balances, we need to close out this year so that we have a good
idea where we will land next year. We think the balances will get up over what we may need to
draw from when we build FY23's budget.
Enterprise Funds: Sanitation,Airport, Senior Citizens, Beverly Golf& Tennis, Recreation
Ayles stated the trash fee to residents will remain the same, but what the City pays will be going
up significantly.
Rotondo gave credit to Mr. Perry for the memo he provided on the budget and thanked him for
his work.
Flaherty stated Mr. Perry has also been extremely helpful at the charter meetings. The next
I charter meeting is this Thursday. After that, the next steps are making sure the city solicitor and
mayor are on board,then it would come before the Council. We may have to do a public hearing
on the charter this summer.
Flaherty stated the next budget meeting is June 14 at 7pm for the budget public hearing.
The motion to adjourn Finance and Property was made and seconded. A vote was taken, and the
motion carried (2-0).
The motion to adjourn Committee of the Whole was made and seconded. A vote was taken, and
the motion carried(7-0). The meeting adjourned at 10:01pm.
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