The Finance Committee voted to approve the following (see Report and watch the video from NewTV posted on YouTube):
- Request to appropriate $1.15 million for Franklin Elementary School (7-0). Public Building Commissioner Josh Morse explained that the request is to get through the feasibility phase of the project and confirmed that the funds will be coming from the recently approved debt exclusion.
- Request to accept equipment (2 Combination Dynamic Speed Feedback and School Zone Speed Limit Sign Assemblies) through the MassDOT Safe Routes to School program (7-0). Director of Transportation Jason Sobel explained that the grant will provide equipment and materials for the 20MPH school zone signs and speed feedback signs for the safety updates to the existing school zone on Lexington Street behind the Burr Elementary School.
- Request for authorization to enter into a 5-year contract for parking enforcement services for three City Departments: Newton Police (services to include equipment to issue parking tickets); Treasury (payment processing and interfacing with the RMV and DPW – assistance with functionality regarding parking meters and the Passport Parking app). he RFP was due on April 28. As to whether the equipment will allow enforcement of parking allowed by permit, Director Sobel said it would not, adding that due to the complexity of the parking permits and in consultation with the Traffic Bureau, the Police Department, and Treasurer Mendes, there may be a need for a separate RFP to address these types of permits (7-0).
- Request for authorization to enter into a 5-year contract for investment management services for the John C. Chaffin High School scholarship fund. The 100+ year old Chaffin Fund has about $6 million and gives out $200,000 to $250,00 each year. Treasurer Mendes confirmed that the contract could be terminated at any time and that the manager would be paid based on performance (7-0).
- Request to transfer $150,000 from Law Department Full Time Salaries to retain outside counsel to complete the work of recently deceased Deputy City Solicitor Honig (7-0).
- Submittal of the Annual Comprehensive Financial Report and external audit reports for fiscal year ending June 30, 2022 for City Council review/acceptance. Comptroller Steve Curley and Matt Hunt, the City’s independent auditor from Clifton Larson, and Allen, led the discussion on the Annual Comprehensive Financial Report (ACFR), the Single Audit Reports, and the Management Letter. Matt Hunt reported that the documents were reviewed by the City’s Financial Audit Advisory Committee.
- Financial Statements: The overall general fund balance was approximately $104 million, with the unassigned fund balance at approximately $73 million, including $24 million in the Rainy Day Stabilization Fund. He added that it represents about 14% of the City’s annual revenues, which is the highest that ratio has been in the past six years.
- Enterprise Funds:
- Sewer Enterprise Fund has $90 Million
- Water Enterprise Fund has $61 million
- Storm Water Enterprise Fund has $9 million
- Internal Service Fund (represents the City’s self-insured health insurance and workers compensation) had at year end a total net position of $16 million, which represents about 2.5 months’ worth of claims, and those balances are also “healthy”.
- Sewer Enterprise Fund has $90 Million
- Other Funds:
- Pension Trust Fund has $526 million
- OPEB Trust has $25 million
He noted that the net position of the liabilities is $667 million,a decrease from the previous year due to rising interest rates. The pension trust fund liability went down because markets did well in 2021, so the liability went from $290 million to $245 million, and thus the City is closer to fully funding that liability.
Single Audit Report and Management Letter: With regard to the single audit, it is used to test compliance on federal grants. They reviewed two, and there were no findings.
According to the committee report, “Mr. Hunt wrapped up by reiterating that the City has an unmodified opinion and good reserves. The City has a clean Single Audit and Management Letter, and he considers this a solid audit for the City. Mr. Hunt commended Comptroller Curley for his work on the audit.”