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Financial Forecast Committee Meeting Minutes 12-2-22 Financial Forecasting Committee December 13, 2022 Trn -, CITY OF BEVERLY w ��� PUBLIC MEETING MINUTES �`- o c'a�•i7..r, BOARD OR COMMISSION: Financial Forecasting Committee , SUBCOMITTEE: D DATE: December 13 2022 LOCATION: Beverly Public Library, Barnet Gallery IV MEMBERS ABSENT: Dr. Kenann McKenzie; Jean Sherburne -0 RECORDER: Danielle Spang In Attendance CITY COUNCIL APPOINTEES: Chair Kathleen Feldman; Scott Houseman; Karen Fogarty SCHOOL COMMITTEE APPOINTEES: Rachael Abell; Giuliana DiGenova MAYORAL APPOINTEES: Paul Manzo BY ORDINANCE: Bryant Ayles EX OFFICIO: Gerard Perry OTHERS PRESENT: Erin Brown; Dr, Suzanne Charochak Feldman called the meeting to order at 6:32 p.m. 1. Opening Comments by the Chairperson & General Committee Discussion Discussion was held to the end of the meeting. 2. Approval of minutes a. December 6, 2022 Motion: Abell moved to accept the December 6, 2022 minutes with edits. Manzo seconded. The motion carried (7-0). 3. Approval of the Final Draft Report Motion: Manzo moved to approve the Final Draft Report with edits; Houseman seconded for discussion purposes. Feldman welcomed discussion and proposed edits page-by-page: a. Executive Summary, Introduction On page 2, Manzo suggested noting the FY24 budget "is forecasted" to be in deficit. Members suggested confirming the Report is unanimously approved tonight, without including a vote count. b. Revenues Members agreed to remove references to spent funds, and retain references to unspent ARPA funds. Page 1 of 2 Financial Forecasting Committee December 13, 2022 c. Expenditures Members agreed to round all percentages to two decimals. d. Historical Data Houseman reworded the second sentence in the first paragraph for clarity. Houseman proposed a topic sentence to explain "Free Cash" in lay terms at the beginning of the fourth paragraph. Perry noted that Free Cash may be certified within the next few weeks, and will reference that information in his memo. e. Conclusions Members discussed formatting challenges as the draft printed differently based on whether it was viewed in Microsoft Word or a different program, and Perry confirmed printing the final Report as a PDF should resolve any formatting anomalies. Motion: Feldman called a vote on the pending motion on the floor. The motion carried (7-0). 4. Closing Commentary Feldman thanked all Committee members for their participation, thoughtful commentary, and work. She hopes the city publishes the Report and Proposed Budget on the website in a constituent-friendly manner with user-friendly data visualizations. The Report is good news, and helping people understand it clearly will be a great extension of the Committee's work. Abell shared that when she previously served on the Committee members shared examples from Danvers and Salem, and echoed Feldman's remarks that data visualizations in color would help illuminate the City's financial health. Manzo noted the budget presentation could be an opportunity to expand upon some themes (free cash vs. undesignated fund balance, etc.), more than in the Report itself. After last year's Report, Fogarty reviewed how other comparable communities incorporate their Financial Forecasts into their municipal budgets. She found some communities incorporate narratives and explanations from their financial forecasts to help present their budgets and to help people understand how their taxes are spent. Houseman noted the City Council Finance and Property Committee continues to request resources be allocated to present a narrative budget. Ayles advised that his staff and the Mayor appreciate the points everyone raised, and last week the City contract with a company to present a digital budgeting book this budget season. It will be a process, and in its first year will incorporate data visualizations as well as themes and stories. Next week there will be a kickoff meeting with the vendor, Ayles, the Assistant Financial Director and ARPA Manager, The City of Malden uses the same vendor, ClearGov, and Perry confirmed their good reputation. Members looked forward to reviewing the digital budget in the spring. Houseman solicited feedback from Committee members about this year's forecasting process. Abell served a few times on the Committee, and shared that starting with a template was easier this time. Manzo compared prior years to this one, and noted any ordinance change to reflect the current practice of the group could be helpful. Fogarty questioned whether the Committee vets proposed figures in the Report. Ayles noted the Committee should vet and challenge figures it believes are unrealistic projections or overly aggressive/conservative. This year he tried to provide more historical Page 2 of 2 Financial Forecasting Committee December 13, 2022 data to help members see the trends, and believes that it an important part of the Committee's process. Fogarty agreed, and suggested any ordinance revision could help ensure that process continues rather than requiring only people with financial expertise serve as members. Feldman valued the questions that may arise from lay perspectives rather than only reviewing the data with professional financial analysts. Perry noted while not a voting member, in his ex officio status he begins meeting with Ayles around Labor Day to review the draft Report line by line. Perry also reviews the figures with Sherburne beforehand, and hopes that comforts laypeople on the Committee as well to know he also establishes the veracity of the information. Houseman asks Dr. Charochak whether it would make sense for the Superintendent of Schools to serve as an ex officio member, and Perry noted the person in that role serves as director of the school department and other department heads are not present either. Dr. Charochak finds it helpful to prepare her school budget presentation towards a lay perspective, and noted that after a few years of Committee meetings laypeople acquire some municipal finance knowledge. DiGenova noted she is a new member, and shared that Sheet#3 spoke to her the most strongly, because she could compare the draft figures to the historical actual amounts. She thought the process worked smoothly, and there was enough historical data to ensure the proposed figures made sense. Members suggest revising the ordinance to identify the spreadsheet(s) and/or information to be provided to ensure the Committee can do its work. Members discuss the potential scope of any draft language. Feldman worried about limiting a future Committee's ability to collect information it may need and proposed draft language, "The Committee will be presented with the data requested at the Chair's discretion." Useful information may change over time, and this would provide the flexibility to adapt and evolve. Formalizing the process or timing to request information may be more helpful than trying to delineate which information to request. Ayles inquired whether it would help to review expenditure categories at a similarly deeper level next time, comparable to the Sheet#3 historical data on revenues from this round. He suggested next year's Committee determine what information it would like to review at the start of the next round of meetings. He assured Houseman that the historical data has always been recorded and will continue to be recorded in many forms, whether it is specifically requested in this ordinance or not. Feldman noted there were no further comments or questions regarding the matter. 5. Adjourn Motion: Houseman moved to adjourn. Manzo seconded. The motion carried (7-0). Meeting adjourned 8:18 pm. Next meeting to be determined in 2023. Page 3 of 2