Franklin, MA: Town Council - Budget Hearing #1 - June 17

FRANKLIN TOWN COUNCIL

Agenda & Meeting Packet

June 17, 2020

Franklin High School Football Field  - Pisini Stadium

Oak Street, Franklin MA, 02038 7:00 PM

The Franklin Town Council will be holding its annual budget hearing on the Franklin High School Football Field. The purpose of this location is to have a place that allows for proper implementation of the guidelines produced by the state Department of Public Health (DPH) regarding Town Meetings for Municipal Legislative Bodies.

Executive Order 37 promulgated by Governor Baker. If attending in person, see DPH guidelines here. Additional guidance and details will be announced.

All budget materials are online https://www.franklinma.gov/town-budget and individual budget links are below on the agenda.

1. PLEDGE OF ALLEGIANCE

2. ANNOUNCEMENTS
a. This meeting is being recorded by Franklin TV and will be shown on Comcast channel 11 and Verizon Channel 29. This meeting may be recorded by others.

3. CITIZEN COMMENTS
a. 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.

4. HEARINGS - FY 2021 Budget Hearing 7:10pm
a. Voting Document for the FY21 Franklin Town Budget
i. FY21 Budget Message from the Town Administrator  https://www.franklinma.gov/town-budget/files/fy21-town-administrator-budget-message
ii. FY21 Town Administrator Proposed Budget  https://www.franklinma.gov/town-budget/files/updated-budget-councile
iii. Appendix A

iv. Appendix B1 Franklin School Committee Recommended FY21 Budget Executive Summary (https://www.franklinps.net/sites/franklinmaps/files/uploads/02._executive_summaryrevised.pdf), Appendix B2 Franklin School Committee Recommended FY21 Budget (https://www.franklinps.net/sites/franklinmaps/files/uploads/fy21_sc_approved_budget_overview.pdf)

• Appendix C1 Historic Data: Budget Breakdown  https://www.franklinma.gov/town-budget/files/appendix-c1-historic-data-budget-breakdown
• Appendix C2 Historic Data: Operating Revenue https://www.franklinma.gov/town-budget/files/appendix-c2-historic-data-operating-revenue
• Appendix C3 Historic Data: Fixed Cost  https://www.franklinma.gov/town-budget/files/appendix-c3-historic-data-fixed-costs
• Appendix C4 Historic Data: Local Aid  https://www.franklinma.gov/town-budget/files/appendix-c4-historic-data-local-aid
• Appendix C5 Historic Data: Local Receipts  https://www.franklinma.gov/town-budget/files/appendix-c5-historic-data-local-receipts
• Appendix C6 Historic Data: Assessments  https://www.franklinma.gov/town-budget/files/appendix-c6-historic-data-assessments
• Appendix C7 Historic Data: New Growth  https://www.franklinma.gov/town-budget/files/appendix-c7-historic-data-new-growth
• Appendix C8 Historic Data: Free Cash Balances   https://www.franklinma.gov/town-budget/files/appendix-c8-historic-data-free-cash-balances
• Appendix C9 Historic Data: FC & RE  https://www.franklinma.gov/town-budget/files/appendix-c9-historic-data-fc-re

vi. Appendix D - Storm Water  https://www.franklinma.gov/sites/franklinma/files/uploads/_stormwater_council_outreach_2019_2.pdf
 
5. COUNCIL COMMENTS

6. ADJOURN

Note:

• Two-Thirds Vote: requires 6 votes
• Majority Vote: requires majority of members present and voting

The PDF of the agenda and voting doc as well as the DPH guidance
https://www.franklinma.gov/sites/franklinma/files/agendas/06-17-2020_town_council_meeting_agenda.pdf

Franklin, MA: Town Council - Budget Hearing #1 - June 17

“It was a blast and a great way to get the community together”

From the Milford Daily News, articles of interest for Franklin:

"When Nick Goldman finished running 26.2 miles on Saturday morning, he was hardly alone.

With friends and family cheering outside of Horace Mann Middle School on Oak Street, Goldman, who is a physical education teacher at the school, and soon-to-be Franklin High freshman Brad Morin both raised their arms as they crossed the “finish line.”

Instead of painter’s tape, however, the finish line was made of Charmin Ultra Strong toilet paper. Recent Franklin High graduates Carly Alston and Katie Nguyen held up the sturdy bathroom-turned-marathon necessity.

“The toilet paper fits with quarantine and everything,” Nguyen said. “High-quality stuff.”

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/sports/20200614/pair-of-franklin-teachers-set-up-community-marathon-to-raise-money-for-franklin-food-pantry

I talked with Nick and Paul in the preparation for the fund raising marathon. You can listen to that here:
https://www.franklinmatters.org/2020/06/fm-283-teachers-to-run-marathon-for.html

Teachers to Run Marathon for Franklin Food Pantry

Joint Statement: Senate President Karen Spilka & Chair of the Massachusetts Black & Latino Legislative Caucus, Representative Carlos González

On Monday June 15, 2020, Senate President Karen E. Spilka, Chair of the Massachusetts Black & Latino Legislative Caucus (MBLLC) Representative Carlos González, and members of the MBLLC met to discuss racial justice legislation. The following is a joint statement from President Spilka and Chair González.

"Today we had a very productive discussion about the urgent work that will take place in the Senate over the next few weeks to advance police reform and racial justice legislation.

"The areas of discussion were consistent with what the MBLLC has prioritized, as well as the focused work the Senate's Working Group on Racial Justice has been doing on the topics of police officers' standards and training, excessive use of force, duty to intervene, police accountability, and the need for robust data collection.

"Both the MBLLC and Senate President agree: The effort to dismantle institutional and structural racism that exists in our Commonwealth must be both a sprint and a marathon. We must do everything we can to achieve short-term systemic change while making a concerted effort to address racial barriers across areas such as education, housing, economic development and our financial systems.

"The MBLLC and the Senate are intensely aware of the gravity presented by this moment and are committed to working together to get a strong bill to the governor's desk before July 31, 2020."

Senate President Karen E. Spilka, (D-Ashland)

Representative Carlos González, Chair MA Black Latino Legislative Caucus, (D-Springfield)

Please Respond Today to the 2020 Census

We have reached a 76.6% response rate for Franklin, there is still time to get beyond 80% (Franklin actually did 79.9% in the 2010 Census).

"The 2020 Census is underway and more households across America are responding every day. Over 90 million households have responded to date, representing 61.4% of all households in America. Make sure that you and your friends and family are included in this once-a-decade count.

Help us spread the word: Everyone can respond to the 2020 Census online in one of 13 languages, with assistance available in many more."

https://2020census.gov/en.html

Visit the 2020 Census response rate map  https://2020census.gov/en/response-rates.html

The current results for Franklin (as of Sunday, June  14, 2020):

Please Respond Today to the 2020 Census

Inside the budget documents

There is a wealth of budget documents posted for the Budget Hearings scheduled by the Town Council this week. Among the pages of material what are some of the key points that you should be mindful of? Having spent time with the budget over the years, let me try and show a few key points, without getting too deep into the weeds.

Fixed costs summary
In most budgets you have fixed costs and variable costs. The fixed cost summary shows a relatively stable percentage for the fixed costs to the total budget and to the municipal budget. It would be nice to have the School side of this too but we don't for now. The table and chart shows the fixed costs totals and percents from 2000 to 2019. There is not a whole lot of change.

a relatively stable percentage for the fixed costs to the total budget and to the municipal budget

Tax rate: history and split vs. single rates
Some of the discussion in social media has been consideration of a split rate vs. the single rate we have. The situation we are in doesn't warrant a split rate. The tax base is 80% residential and 20% commercial/industrial. To reduce the residential burden by $1 would increase the commercial/industrial rate by $4. We don't have a diverse enough economy to make that work. 

The table shows the tax rate over the years and how it goes down when the total valuation increases, and goes up when the valuation decreases. There will always be an increase in the actual tax levy, period. The amount will increase even if it stays within 2.5%. The rate as a percent fluctuates with the real estate valuation.

Getting back to the split vs. single rate, the chart shows we can be successful as long as there is growth in real estate valuation and especially new growth. The new growth allows Franklin to increase the tax revenue and stay within the 2.5%. The problem this year, this budget, is the forecast for next years revenue - the pandemic effect.

tax rate over the years

Revenue forecast
The pandemic effect is where we have a major problem this year. Look at the revenue information. The revenue forecast for new growth drops significantly. The revenue forecast for local receipts also drops significantly. So even without a change in the State aid we have a problem.

revenue forecast for local receipts and new growth drops

Systemic issue
Look at the 10 year average for the various departments costs. Aside from the **Other Municipal category, the major budget items are in a 3-4% increase year over year. As mentioned above, we 'only' get 2.5% unless the new growth increase is such to cover these. 

Our choice, is to decide what we want Franklin to look like. What services do we provide to our schools and community? As shown, some years, the new growth can provide additional revenue but in other years, we also need to dip into our own pocket. The question is whether we are willing to do so and by how much?

3-4% increase year over year

The budget docs from which this info came from can be found


Fixed costs

• Town doc   https://www.franklinma.gov/town-budget/files/appendix-c3-historic-data-fixed-costs
• 
  My chart table  https://drive.google.com/file/d/1yzaPrm5Uuij7wFeav2dzPqaedScY936-/view?usp=sharing

 Tax rate history

• Town doc https://www.franklinma.gov/town-budget/files/appendix-c7-historic-data-new-growth
• My chart table https://drive.google.com/file/d/128NbT-0secNI0e0K7esMFvZGSRYwUG8U/view?usp=sharing

Revenue forecast

• Town doc https://www.franklinma.gov/town-budget/files/appendix-c1-historic-data-budget-breakdown

Systemic issue

• Town doc https://www.franklinma.gov/sites/g/files/vyhlif591/f/uploads/appendix_c1_historic_data_-_budget_breakdown.pdf

 

In the News: Keolis contract for Commuter Rail extended through at least 2025

From the Milford Daily News, articles of interest for Franklin:

"Keolis Commuter Services, the French company that had fallen out of favor early in its contract, will continue to operate the Massachusetts commuter rail system until at least 2025 under a renegotiated contract approved by the MBTA Board on Monday.

Under the new agreement, Keolis could continue to run MBTA trains for four years beyond the original eight-year contract’s 2022 end date. However, the T can opt to end the partnership after only three additional years if officials feel ready to launch a search for what they described as a “transformational” successor.

In 2017, Transportation Secretary Stephanie Pollack said the MBTA planned to seek a new operator at the contract’s conclusion rather than use one or both of the two-year extensions available. The administration’s position has softened since then.

Officials on Monday described the updated extension as a better deal than what the T could get in the current pandemic-affected market, and they said it also offers flexibility to prepare a long-term plan -- which sprung from the Rail Vision project -- for reimagining the commuter rail with more frequent, interconnected and potentially electrified service."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20200615/commuter-rail-operator-extended-through-at-least-2025

Franklin's Forge Park Station

"Retail association says 30% of members fear going under"

From the Commonwealth Magazine, ab article of interest for Franklin:

"The Green Bean’s experience is not unique. Many businesses are beginning to reopen with new safety standards and reduced capacity, but there are many others that may not be able to reopen at all. And those closures could have a ripple effect on Main Streets across the state.

“Businesses have made decisions where to locate around amenities,” said Greg Reibman, president of the Newton-Needham Regional Chamber. “If we’re losing amenities, that has a whole domino effect.”

The Retailers Association of Massachusetts recently surveyed its members and found that 30 percent of respondents were somewhat or extremely concerned that they would not survive the pandemic. President Jon Hurst said many businesses are at the end of their financial rope. They have had to pay for leases and inventory they could not sell. A clothing store might have a large stock of unsold winter coats – but it needs to buy summer clothes to reopen in June. Federal business loans can only go so far.

“It’s the reality of just not having the wherewithal to do that outlay for buying the inventory when you’ve had no income coming in,” Hurst said."

Continue reading the article online
https://commonwealthmagazine.org/economy/many-businesses-closed-by-covid-are-not-coming-back/

The news of the British Beer Company closing is not the only retail operation we'll hear about. We do need to support our local businesses, all the time. This pandemic is going to have some significant impact on many operations.

Commonwealth Magazine