Live Reporting: Town Council - March 22, 2017

Present: Mercer (remote), Pellegri, Padula, Vallee, Kelly, Pfeffer, Bissanti, Dellorco, Jones
Absent: none

A. Approval of Minutes	Approval of March 1, 2017 Meeting Minutes motion to approve, seconded, passed 9-0
B. Announcements	This meeting is being recorded by Franklin TV and shown on Comcast channel 11 and Verizon channel 29. This meeting may also be recorded by others.
C. Proclamations/Recognitions
D. Citizen Comments	Citizens are welcome to express their views for up to five minutes on a matter that is not on the Agenda. The Council will not engage in a dialogue or comment on a matter raised during Citizen Comments. The Town Council will give remarks appropriate consideration and may ask the Town Administrator to review the matter. none
E. Appointments	none
F. Hearings	Hearing on Whether to Exercise the Town's First Refusal Option to Purchase Land on Washington Street - 7:10 pm
G. License Transactions	British Beer Company - Change of Manager - 7:10 pm
H. Presentations/Discussions	Auditors Melanson Heath provides an overview of the audit report a good report (see the management letter for details) OPEB accounting rules are changing and will be reflected in the annual statements more accurately to show the overall liability   town doing a good job of collecting taxes in a timely manner about 10% in unassigned funds, usually about 9-10% and hence in a strong financial position budget versus actual, the difference is the 'free cash' revenue side of the budget came in higher than forecasted expenses came in lower than what was budget (the $3M difference is the 'free cash' amount used in the capital budget. The mount varies each year but the process is the same.) OPEB Trust set up contributions of $600,000

The financial statements are strong, the bond rating agencies look favorably on this

at high end of the range and consistent for several years which is also good

enterprise funds used for water, sewer and solid waste, all with positive balances

the better bond rating, the lower interest rate you end up paying

you were able to put $600K into the fund but it is not much, you are not alone in that deficit, many other communities are also struggling with that. They would like to see more or at least consistently do something in that end. Franklin is on the higher end of addressing the OPEB requirements

not many doing what we are doing right now

(note - video feed problems being worked by Franklin TV) will be available for rebroadcast

No material weaknesses or deficiencies

recommendation on a more formal risk assessment process

FYI - statement #75 on the OPEB accounting changes coming

FYI - reauthorizing the OPEB Trust under new legislation

Nutting - when our legislators coming this Spring, we need to request help again on the OPEB matter

Pellegri - the residents should be pleased with the reports and the way we are doing business

Melanson - thanks for all the help and preparedness, it made it easy to do

Franklin, MA: Town Council - Agenda - March 22, 2017

Note: The left column contains links to the supporting documents for each of the agenda sections

A. Approval of Minutes	Approval of March 1, 2017 Meeting Minutes
B. Announcements	This meeting is being recorded by Franklin TV and shown on Comcast channel 11 and Verizon channel 29. This meeting may also be recorded by others.
C. Proclamations/Recognitions
D. Citizen Comments	Citizens are welcome to express their views for up to five minutes on a matter that is not on the Agenda. The Council will not engage in a dialogue or comment on a matter raised during Citizen Comments. The Town Council will give remarks appropriate consideration and may ask the Town Administrator to review the matter.
E. Appointments
F. Hearings	Hearing on Whether to Exercise the Town's First Refusal Option to Purchase Land on Washington Street - 7:10 pm
G. License Transactions	British Beer Company - Change of Manager - 7:10 pm
H. Presentations/Discussions	Auditors
I. Subcommittee Reports	(Update provided during meeting)
J. Legislation for Action
1. Resolution 17-17 Acceptance of Access Easement Over Property at 121 Longhill Road	1. Resolution 17-17: Acceptance of Access Easement Over Property at 121 Longhill Road (Motion to Move Resolution 17-17: Majority vote (5))
2. Resolution 17-18: Order of Franklin Town Council, Exercising Town's G.L. Chapter 61, Section 8 First Refusal Option, Re: Land of William C. Roode and Jeanne M. Roode, Containing Approximately 12.5 Acres on Washing STreet...	2. Resolution 17-18: Order of Franklin Town Council, Exercising Town's G.L. Chapter 61, Section 8 First Refusal Option, RE: Land of William C. Roode and Jeanne M. Roode, Containing Approximately 12.5 Acres on Washington Street, Title Reference: Norfolk Registry of Deeds Book 5501, Page 521 (Motion to Move Resolution 17-18: 2/3/Majority vote (6))
3. Resolution 17-19: Redirect Bond Proceeds	3. Resolution 17-19: Redirect Bond Proceeds (Motion to Move Resolution 17-19: Majority vote (5))
4. Bylaw Amendment 17-787: Chapter 179, Water - 1st Reading (Motion to Move Bylaw Amendment 17-787 to a 2nd Reading: Majority vote (5))	4. Bylaw Amendment 17-787: Chapter 179, Water - 1st Reading (Motion to Move Bylaw Amendment 17-787 to a 2nd Reading: Majority vote (5))
K. Town Administrator's Report	Town Administrator's Report
L. Future Agenda Items	Future Agenda Items
M. Council Comments	Council Comments
N. Executive Session	Executive Session - To discuss strategy with respect to collective bargaining -  all Municipal units
O. Adjourn	O. Adjourn

large street crossing downtown Franklin

Franklin, MA: Town Council - Agenda - March 9, 2016

A. APPROVAL OF MINUTES

B. ANNOUNCEMENTS 

– This meeting is being recorded by Franklin TV and shown on Comcast channel 11 and Verizon channel 29. This meeting may also be recorded by others.

C. PROCLAMATIONS/RECOGNITIONS

D. CITIZEN COMMENTS 

– Citizens are welcome to express their views for up to five minutes on a matter that is not on the Agenda. The Council will not engage in a dialogue or comment on a matter raised during Citizen Comments. The Town Council will give remarks appropriate consideration and may ask the Town Administrator to review the matter.

E. APPOINTMENTS

F. HEARINGS

G. LICENSE TRANSACTIONS

H. PRESENTATIONS/DISCUSSIONS

1. 2015 Audit – Melanson Heath, Auditors
2. Mandatory Alcohol Awareness Training for Licensees

I. SUBCOMMITTEE REPORTS

J. LEGISLATION FOR ACTION

1. Resolution 16-11: Declaration of Town-Owned Land on Grove Street (Portion of Former Nu-Style Property) as Surplus and Available for Disposition
2. Resolution 16-12: Authorization for Municipal Aggregation of Electricity
3. Resolution 16-13: Appropriation: Town Administrator: Insurance Recovery Account – 28123490
4. Resolution 16-14: Appropriation: Records Management – Assessors
5. Bylaw Amendment 16-755: Chapter 179, Water – 1st Reading
6. Bylaw Amendment 16-756: Chapter 170 Vehicles and Traffic Article X Winter
7. Storm Overnight Parking – 1st Reading

K. TOWN ADMINISTRATOR’S REPORT

L. OLD BUSINESS

M.NEW BUSINESS

N. COUNCIL COMMENTS

O. EXECUTIVE SESSION 
- Pending or threatened litigation
1. Proposed Excelon expansion of Medway electric generating facility pending before Energy Facilities Siting Board.
2. Proposed Spectra gas transmission line through Franklin.

P. ADJOURN

The documents released for this agenda can be found here
http://town.franklin.ma.us/Pages/FranklinMA_CouncilAgendas/2016%20Complete/03092016.pdf

Franklin Municipal Building

"The future poses some thorny issues"

The "recent' audit is actually an annual event for Franklin. This year was an achievement in that the audit results were the best of the past several years.

A recent audit of the town has found its finances “solid and well-managed,” while drawing attention to a multimillion-dollar post-employment benefits liability still looming over every budget. 

Melanson & Heath, a New Hampshire-based accounting and tax firm, presented information from its audit to the Town Council this week. The firm gave Franklin an unqualified opinion, meaning it believes the town’s financial statements are sound and free from any material misstatements. 

Karen Snow, an accountant with Melanson & Heath, highlighted the town’s upgraded bond rating, which improved last year from AA to AA+. 

“Part of the reason (Standard & Poor’s) upgraded that is because they feel you have a nice solid fund balance and you don’t have any plans to spend that fund balance down,” Snow explained.

Continue reading the MDN article here
http://www.milforddailynews.com/article/20150403/NEWS/150408041/1994/NEWS

Franklin Municipal Building

My reporting on the audit results can be found here
http://www.franklinmatters.org/2015/04/this-purple-heart-community-received.html

The 2014 audit results can be found here
http://www.franklinmatters.org/2014/03/what-is-public-need.html

The 2013 audit results can be found here
http://www.franklinmatters.org/2013/02/town-council-020613.html

This "Purple Heart" community received an "unqualified opinion"

The Town Council meeting was varied and efficiently conducted in just about an hour. The summary of items discussed and where appropriate voted on is as follows:

• A proclamation was made to recognize Franklin as a "Purple Heart Community"
• The liquor license transfer from Soco Rose to GBU was approved.
• The DPW was authorized to purchase a 'hot box' to help improve the pot hole patching process.
• Chief Gary McCarragher presented on Ping4Alerts, a new alert system being deployed by MEMA and Franklin for all the alerts and other targeted important notifications.
• The auditors talked about the "unqualified opinion" that Franklin received as being the highest rating and how "solid and well managed" Franklin was overall.
• The insurance payments for the Keller sprinkler incident required a Council vote to approve the disbursement. As the payments had come to the Franklin accounts, the Council needed to authorize the payments to the vendors involved. Most of the insurance reimbursements had gone directly to the vendors and hence did not require a Council vote.

The MEMA video touting Ping4Alerts




To get Ping4Alerts, follow the links on this MEMA page
http://www.mass.gov/eopss/agencies/mema/massachusetts-alerts.html

Massachusetts alerts

For all the detailed notes reported live during the meeting, check these links:

• Live reporting: Legislation through to closing

• Live reporting: audit results - "an unqualified op...

• Live reporting: Ping4Alert

• Live reporting: License transfer and hot box purch...

• Live reporting: Town Council - Apr 1, 2015

Good Energy Newsletter: January 2015

Energy efficiency tips, news and advice. View as Web page. January 2015 An Advisor's Unusual Attic Find, Plus Winter Warmth Tips Our latest Advisor of the Month shares how he made the leap from technician to advisor, his best winter warmth tips and how our team made a homeowner's day with a sentimental discovery. Read More > Home Automation: The Next Big Thing in Energy Efficiency? The world of home automation systems are making the most out of our addiction to technology. Learn how home automation systems can help keep your energy-efficient habits on autopilot in our latest guest contributor piece. Read More > Four Simple Ways to Avoid the "Flue" Think you've avoided the winter flu? Temper the hot water heater flue with these tips on how to keep flue gases out of your home, courtesy of our Connecticut Team of the Month.   Read More > Homeowner Cuts First Electric Bill in Half After Going Solar Our latest success story proves that a trip to the DMV can be worthwhile. Learn how one homeowner slashed her electricity costs by going solar, plus get a peek at her sleek new rooftop panels.  Read More > Connect with us   Forward email to a friend    Subscribe to Good Energy Please add Email@NextStepLiving.com to your address book to ensure delivery to your inbox. Privacy Policy © 2014 NextStepLiving, Inc., 21 Drydock Avenue, 2nd floor, Boston, MA 02110-2384

Financial Audit Results

The annual financial audit was reviewed during the last Town Council meeting. It is effectively a 'good' audit. There are some minor issues to be worked on according to the management letter. The complete text of all three documents can be found here


The Annual Financial Statements (53 pages)




The Management Letter (6 pages)




Additional items not covered in the Management Letter (2 pages)




The notes from the Town Council discussion can be found here
http://www.franklinmatters.org/2014/03/live-reporting-audit-report.html

The video of the Town Council meeting can be viewed here
http://view.liveindexer.com/ViewIndexSessionSL.aspx?ecm=635302006607091250&indexSessionSKU=04Plyid7sgk9t4tfYKAX+A%3D%3D&siteSKU=L7qhQ46xin/r3Z0jcDVCNw%3D%3D

(skip ahead to about 34 minutes to catch the section on the audit)

Franklin Municipal Building

Live reporting - Audit report

H. PRESENTATIONS/DISCUSSIONS 

Jim Dacey, Susan Gagner

• Auditors

Frank Byron, Karen Snow - Melanson, Heath

management discussion an analysis

puts into words what the numbers say

various stabilization account history

skip this for now and go to the number pages, P14

the only place where capital assets appear

long term liabilities, OPEB = other post employment benefits, added per GASB standard changes

$89M = OPEB full liability

$31.8 M, this amount will increase each year when the town does not meet the actuarial funding requirements

GASB 68 - unfunded pension liabilities

required for reporting in 2015, all at once, not in an incremental fashion (like OPEB)

unassigned balances currently at 8% which is right in the range of 5-10 percent that the fund agencies look for

indicates a very strong financial position

page 20 budget vs actual

surplus of state and local revenues, town has been consistent with conservative revenue estimates

page 21 - balance sheet

includes the enterprise funds

strong cash balances in the enterprise accounts

page 25

Q - Padula - p14 clarification on the unfunded pension costs

A - pension vs the health insurance

the whole amount will appear at once, approx. $43M

Nutting - the difference is that the county has a funding schedule to catch up by 2031, after that there will be a lesser requirement. OPEB has no funding schedule currently. It will grow exponentially if we don't fund it.

Nutting we did put a little more since this Jun 30 2013 position. Every dollar into OPEB is not a dollar to be used for operations

Karen - on the management letter, not material deficiencies

4 this year, 5 last year

some are long term issues will take time to resolve (like the risk plan)

need to develop a formal risk plan with formal controls to mitigate the risk

fund balance policy, in process, provided some examples of other clients and how they have handled this; how to define which money to use when

current year recommendations issues 3 and 4

small debit balances, where did they come from, could be posting errors

looked at the library and departmental receipts

they don't have a real process to provide an audit trail for the receipts

look at ways to improve the reporting around the receipts

a frequent issue in municipalities

this is a good letter things are working well

Susan - did visit three departments to work on the risk assessments

have review the samples provided and have a draft to work with, should have one in place before the end of this fiscal year

will be visiting the library to ensure they have a better register process

Jones - each report has come back sparkling, the audits are great indications of good handling of our money

Karen - no adjustments, just some re-classifications, it is good to see that this is in good shape

Nutting - we always take the management letters seriously, every year the auditors come up with something to make us a stronger entity

Live reporting: Audit for 2012

Melanson Heath & Co., 2012 Audit

up to Page 12, MD and A, management discussion and analysis
Page 13
summary of future view

Page 15
unassigned fund balance $4,289
modest improvement over prior year, about 4.2% of general fund, auditor look at that number

stabilization accounts, fund increases due to actions voted but not yet spent

$15M vs. a year ago of $11M, $3M of that was committed 

Page 17 helps to understand why the increase in unassigned fund balance
change in fund balance seen here, majority of this is timing

there is a good deal of info in the footnotes
there is interest in OPEB, if you choose I could talk for hours on it

In the management letter, recommendations begin on Page 3
follow up to prior year, more formal risk process, formal = written

The Town has provided responses to the issues raised, we think what has begun is off to a good start

On Page 4 - issues 2 and 3 will be addressed collectively, billing collection and assessment of funds, no segregation of duties present

on Page 5
Policy on handling fund balances, deals with spending prioritization
there are different constraints on the source of funds, determine which buckets of money shold be used first, would help provide guidance on what to do, what to use

Page 6 - prepare for GASB 68
the handling of the Norfolk County unfunded liability would need to be added to the books
an informational comment, I can not anticipate what that number would be
it is likely to be a large number, liabilities will go up, assets will go down

Powderly - yes,I did notice the quicker turnaround
does this happen often? 

Nutting - we didn't have staffing, one clerk was doing both, we can resolve that with staffing and the outsourcing being looked at.

Risk assessment,the small towns will consider and accept the risk

Gagner, the risk assessment will be a multi year process, we have looked at the Treasurer and Comptroller depts, and once we have ours down, we'll expand to others

Nutting - eventually every department will go through the process, 

Many more appointed treasurers