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Home My WebLink AboutCohasset FY19 Budget Document (Final 4-23-18) Town of Cohasset Massachusetts Proposed Budget Board of Selectmen Town Manager - - - This page left blank intentionally - - - Introduction ...................................................................... i A Citizen’s Guide to the Budget Process ..................................................................... ii A Citizen’s Guide to the Budget document ................................................................. iii Town Organizational Chart ...................................................................................... iv Boards and Committees ........................................................................................... v Community Profile ................................................................................................. vi Budget Summaries ........................................................... 1 Board of Selectmen Budget Message ........................................................................ 2 Town Manager Budget Summary ............................................................................. 4 Balanced Budget Executive Summary ...................................................................... 14 Revenue Budget Summary ..................................................................................... 15 Revenue Pie Chart ................................................................................................ 16 Expenditure Budget Summary ................................................................................ 17 ExpenDITURE Pie Chart ......................................................................................... 20 Five Year Forecast ................................................................................................ 21 General Administration .................................................... 22 Personnel Summary .............................................................................................. 23 General Government ............................................................................................. 24 Town Manager ................................................................................................... 24 Human Resources .............................................................................................. 26 Finance/Accounting ............................................................................................ 30 Assessing .......................................................................................................... 32 Treasurer/Collector ............................................................................................ 34 Town Clerk ........................................................................................................ 36 Permitting and Inspections .................................................................................. 38 Conservation Commission ................................................................................... 41 Planning Board .................................................................................................. 42 Zoning Board of Appeals ..................................................................................... 43 Public Safety ........................................................................................................ 44 Police ............................................................................................................... 44 Fire .................................................................................................................. 47 Building ............................................................................................................ 50 Cohasset Emergency Management (CEMA) ............................................................ 52 Harbormaster .................................................................................................... 54 Department of Public Works ................................................................................... 55 Department of Public Works - Field Operations ...................................................... 56 Department of Public Works - Facilities ................................................................. 57 Department of Public Works - Recycling Transfer Facility ........................................ 60 Department of Public Works - Engineering ............................................................ 61 Department of Public Works - Procurement and Contracts ....................................... 62 Human Services ................................................................................................... 63 Public Health ..................................................................................................... 63 Elder Affairs ...................................................................................................... 65 Veterans Services .............................................................................................. 68 Culture and Recreation .......................................................................................... 69 Library.............................................................................................................. 69 Recreation ........................................................................................................ 72 School Administration ..................................................... 76 Cohasset Public School Administration .................................................................. 77 Debt & .......................................................................... 81 Debt Service .................................................................. 81 Debt service ......................................................................................................... 82 Enterprise Funds ............................................................ 85 Water ............................................................................................................... 86 Sewer ............................................................................................................... 89 Appendices .................................................................... 92 Financial Management Policies ................................................................................ 93 Reserve Policy ................................................................................................... 93 Debt Policy ........................................................................................................ 95 Cash and Investment Policy .............................................................................. 104 Special Education Reserve Fund Policy ................................................................ 113 Fraud Risk Policy .............................................................................................. 115 Whistleblower Policy ......................................................................................... 120 Glossary of Terms ............................................................................................... 122 | i INTRODUCTION | ii BUDGET PROCESS The Town of Cohasset operates under State statutes and the Town Manager Act as amended to establish the Selectmen-Town Manager form of government. The legislative body of Cohasset is an Open Town Meeting comprised of all registered voters. Town Meeting has the sole authority to appropriate funds for the operating budget and capital projects except for specific instances where statutes or regulations do not require appropriation. Any amendments to appropriations require Town Meeting vote at either an Annual or Special Town Meeting. The procedures for Town Meeting are specified in Article II of the Cohasset Bylaws. Annual Town Meeting takes place in April or May. Special Town Meeting typically takes place between October and December. While this document may contain detailed departmental budgets, it should be noted that these details are provided for information purposes only. The final budget vote of Town Meeting constitutes the legal budget authority which ultimately governs the manner and amount of local funding expended during the fiscal year. Readers should also obtain a copy of the Annual Town Meeting Warrant book which contains the actual budget articles to be voted upon. Town Meeting Warrant Articles contain additional funding sources such as Revolving Funds used to offset specific departmental budgets. BUDGET CALENDAR August/September • Capital requests sent to departments • Departments submit capital requests to Project Manager December/January • Operating budget requests sent to departments • Departments present operating budgets to Finance Director February/March • Draft operating & capital budget presented to Selectmen • Selectmen adopt operating & capital budget April/May • Annual Town Meeting votes on operating and capital budget June/July • June 30th Current Fiscal Year ends • July 1st New Fiscal year begins • State Budget typically passed with Final State Aid numbers “Cherry Sheets” October/November/December • Special Town Meeting votes on budget amendments, if any • Tax Classification Hearing & Final Tax Rate Set A CITIZEN’S GUIDE TO THE BUDGET PROCESS Congratulations! If you are reading this it means you are interested in better understanding one of the most important documents produced by your community. The Annual Budget document is much more than just numbers; it is a reflection of our community’s values, priorities and goals. The Budget document serves as a policy document, a financial guide and a communications device to its residents. To this end, it is designed to be as user-friendly as possible. This guide was created to help orient interested readers by providing a brief overview of the budget process, as well as an explanation of the organization of the budget document itself. We hope you find this introductory guide a useful tool as you better acquaint yourself with the latest financial and planning information for the Town of Cohasset. | iii A CITIZEN’S GUIDE TO THE BUDGET DOCUMENT Budget documents are traditionally difficult to read, especially if you are not familiar with the organization. One reason is that most of us do not work with written budgets every day and thus are uncertain as to where we should focus our attention. For this reason the Town’s budget has been consciously organized to provide a “big-picture” overview first, followed by progressively more detailed information. This document respects both your time and your need to understand complex financial issues at a level that allows you to actively participate in the discussion in a meaningful way. In order to address these issues, and to assist interested readers in making the budget understandable, we would like to suggest that it be read in the following order: HOW TO READ THE BUDGET First, the Glossary of Terms in the Appendix may be helpful to refer to when using this document. Second, the Board of Selectmen Budget Message contains a brief background and the budget priorities for the year. The Town Manager Budget Summary describes FY18 budget goals, as well as highlights and trends for revenues, expenses, and fiscal policies. Third, the budget itself is contained in Budget Summaries. This segment provides the overall budget summary as well as revenue and expense summaries. Charts are provided to help visualize the proposed budget for the upcoming year. Fourth, the Five Year Forecast provides background information used in developing the budget. Fifth, the Personnel Summary in the General Administration section will show changes in full time equivalents (FTEs) in recent years. Sixth, the General Administration section will provide Departmental Detail. Specifically, mission statements, programs & services offered to the public, accomplishments and goals are highlighted. The budget and personnel numbers within each department were added this year. Seventh, the School Administration section contains the basic Personnel Summary and district vision for Cohasset Schools. Please refer to the separately published School Department budget documents and the website www.CohassetK12.org for more detail. Eighth, the Enterprise Funds section contains the budgets for the Water & Sewer Enterprise Funds as well as Retained Earnings Trends. Ninth, the new Debt section provides an overview of the Town’s debt including general, enterprise, and excluded. Tenth, the Introduction contains additional information that the reader may find helpful and interesting including the Town Organizational Chart, Boards and Committees, and Community Profile. Lastly, The Appendices section includes several Financial Management Policies. | iv TOWN ORGANIZATIONAL CHART | v BOARDS AND COMMITTEES - Affordable Housing Steering Committee - Cable Advisory Committee - Cohasset Affordable Housing Trust - Cohasset Cultural Council - Cohasset Common Historic District Commission - Cohasset Community Television Corporation, Board of Directors - Cohasset Harbor Committee - Community Preservation Committee - Conservation Commission - Elder Affairs Board - Government Island Advisory Committee - Historical Commission - Open Space and Recreation - OPEB Committee - Registrars of Voters - Stormwater Advisory Committee - Town Hall Building Committee - Zoning Board of Appeals - Advisory Committee - Alternative Energy Sources Committee - By-law Committee - Capital Budget - Design Review Board Cohasset Voters Elect Board of Selectmen Appoints Troika (Board of Selectmen Chair, Advisory Committee Chair, & Moderator) Appoints - Board of Assessors - Board of Health - Board of Selectmen - Cohasset Housing Authority - Planning Board - Recreation Commission - School Committee - Sewer Commissioners - Trustees of Paul Pratt Memorial Library - Water Commissioners | vi COMMUNITY PROFILE The Town of Cohasset was incorporated in 1770, some 150 years after its first recorded mention in the logs of English explorer Captain John Smith, and its early development as part of the Town of Hingham. Located in Norfolk County (as a non-geographically contiguous member community, along with the Town of Brookline), Cohasset is a coastal community 20 miles south of Boston, and is bordered by Hull to the north, Hingham to the west, Scituate to the south, and Massachusetts Bay to the east. Cohasset’s 9.89 square miles were home to 7,542 residents according to the 2010 US Census, and 8,018 residents according to the 2017 census conducted by the Cohasset Town Clerk. While the Town remains home to an active fishing fleet, it is primarily a residential community. The main highways include State routes 3A and 228, with connecting access to Route 3, the primary north-south highway on the South Shore. The Massachusetts Bay Transportation Authority (MBTA) provides easy access to Boston through a commuter rail station in Cohasset, a subway station in Braintree, and commuter boat service in Hingham. Logan International Airport, which can be reached via all three MBTA mass transit options, is approximately 22 miles away by car. The Town operates under an Open Town Meeting form of government, which is vested with all legislative and budgetary approval authority. A five-member Board of Selectmen is responsible for general policy implementation, and appoints a Town Manager who directs all day-to-day governmental operations, other than schools, as Chief Administrative and Chief Financial Officer. A five-member School Committee oversees a K-12 school system, and appoints a full-time Superintendent. Elected Water and Sewer boards oversee the water and sewer enterprise funds, respectively. General governmental services provided within the Town’s boundaries include police and fire protection, collection and treatment of sewage, water distribution, public works (including roads, cemeteries, and tree and park maintenance), harbor management, recreation, health, veteran’s services, aging support services, and a public library. The water and sewer enterprise funds are self-supporting. The Town also maintains a solid waste recycling and transfer station. Facts and Taxes Incorporated: 1770 2017 Population: 8,018 County: Norfolk 2017 Voters: 6,023 2016 EQV: 2,746,663,500 2016 Labor Force: 4,123 Land Area: 9.89 sq. miles 2016 Unemployment: 3.1% Roads: 47.75 miles 2017 Vehicles: 8,758 FY18 Tax Rate: $12.79 per thousand FY18 Operating Budget (incl. enterprise): $50,184,448 FY18 Average Single Family Home Value: $959,731 FY18 Average Single Family Tax Bill: $12,275 FY18 Median Single Family Home Value: $755,000 FY18 Median Single Family Tax Bill: $9,656 | 1 BUDGET SUMMARIES | 2 BOARD OF SELECTMEN BUDGET MESSAGE COHASSET BOARD OF SELECTMEN The mission of the Board of Selectmen is to protect, maintain and enhance our dynamic community, historical heritage and coastal environment by providing thoughtful leadership and fostering citizen engagement Budget Message for FY 2019 (July 1, 2018 - June 30, 2019) Cohasset’s financial health remains strong. The Town has addressed long term stability via annual consistent contributions to the variety of stabilization and reserve funds, while providing reliable services and all with a AAA bond rating. This again has been affirmed with the most recent debt and financial evaluation. We as a board are committed to the delivery of quality services, continued infrastructure renewal, and strong financial management of the Town. As in the past we are also committed to the “One Community” plan to foster resource sharing with all departments in Town to economically use tax revenue. We support a valued and professional work force both staff and volunteers. We are supportive of providing adequate resources for the Town Manager for this purpose for proper town operations. We as a board will pursue the following in Fiscal Year 2019: 1 Continue to support the Town’s fiscal management and reserve policies by: Maintaining a AAA bond rating Fund the OPEB obligation by contributions and pursue cost saving alternatives Maintain and build reserve balances in compliance with reserve policy goals Continue to revise and review financial policies Maintain the 5 and 10 year capital and budget forecasts including capital projects 2 Budget Town services equivalent to the preceding year with available revenue and at the allowable maximum tax levy The Cohasset tax base is predominantly residential. This is understood by the Board and needs to be considered when creating a budget with liabilities both funded and unfunded e.g., OPEB. We will seek efficiencies of services and look to deliver services at or below the tax levy. At current levels we are utilizing a uniform tax rate and are using the maximum 2.5% increase in the tax levy. | 3 3 Establish capital priorities and funding plans The Board will strive to improve the current long term capital plan. The Board has current short term plans to: Develop a plan for a renewed Town Hall, renovated, reconstructed or a melding as necessary. This will include a Town Meeting Warrant for the funding. Further develop methods of addressing repair and maintenance of public and private ways 4 Create Operational Efficiencies The past technology and IT infrastructure expansion allowed the Town to operationally improve performance at the services and governmental level. We wish to continue this with emphasis on these items: Communication with utilization of social media Document and data storage using electronic methods where appropriate Inventory control and management Online payment and permitting as able Improve town inter-department and intra-department communication using technology This encompasses the Board of Selectmen’s Budget Message for FY2019 The Board looks forward once again to a successful budget season working with Chris Senior our Town Manager, the staff, all the departments, and the volunteer boards and committees of our Town. | 4 TOWN MANAGER BUDGET SUMMARY Introduction This is the fifth annual Town budget I have had the honor to present, and the second in this expanded format, designed to tie together in a comprehensive manner the policies, programs, goals and objectives which make up Cohasset’s FY 2019 Operating Budget. This document provides a far broader background for the annual Town budget than simply budget numbers, and I encourage everyone to take the time to read about the work provided to residents by each Town Department, the adopted financial policies which guide Cohasset’s fiscal stewardship, and the general information about Town finances and operations that help illuminate how tax dollars are spent. I thank the entire Town Management Team for their hard work in crafting this document, and offer a special thanks to Finance Director Don Piatt and Treasurer-Collector Paula Linhares for all their work on this document. This section provides highlights of the proposed FY 19 budget, including revenue and expense summaries, highlights of some key historical trends, and a look at some of the important policies that guide budget development and how the Town is meeting those policy goals. It is followed by a more detailed breakdown of expenses by Department, then a summary look at what services and programs are supported by each Departmental budget. Budgets are business plans and value statements. This document represents the proposed governmental plan for FY19, and through the services provided, programs offered, and staff and material resources supported, what we all hope is a strong expression of Cohasset’s community values. FY 19 Highlights and Trends The Town operating budget contains two distinct parts: the General Fund, which includes the Schools, Town Departments, and shared expenses such as debt payments, employee benefits, and common services; and the Water and Sewer Enterprise Funds, which represent the operations of the water and sewer departments, respectively. The General Fund is supported by a combination of revenue, such as property taxes, local receipts (which includes building permits and motor vehicle excise taxes), and state aid. The Enterprise Funds are supported by fees paid by customers receiving water and sewer services; property taxes do not support the operations of either the Water or Sewer Departments. The proposed FY 19 General Fund budget is $46,444,637. The single largest revenue component of the General Fund is local property taxes, of which roughly 93% represent residential property and 7% commercial and personal property. The single largest service supported by the General Fund is Education. The Charts which follow highlight the main revenue and expense categories in the General Fund. | 5 Property Tax 83% Local Receipts 8% State Aid 7% Other Funds 2% Total Revenue $46,444,637 Shared Budgets 27% School Budget 42% Town Budgets 26% Capital 0% Transfers to Other Funds 3% State & County Assessments 1%Other Amounts to be Raised 1% Total Expenditures $46,444,637 | 6 The narrative which follows later in this document describes the programs and services supported by this budget. Among the changes for FY19: - The addition of one full-time position to the Cohasset Police Department, for the purpose of reducing overtime expenses and vacation and sick leave coverage issues (Police Department) - Movement of one part-time employee in Elder Affairs, currently funded by a state formula grant, into the budget. This position provides critical support for the senior transportation program (Elder Affairs) - The establishment of a fund in the central technology budget for the annual replacement of staff laptops, tablets and similar devices for both the Schools and the Town, as well as the consolidation of land line telephone costs. (Information Technology) Key Revenues Property taxes are capped at an annual increase of no more than 2.5%, plus an annual amount which represents new growth. New growth includes both new buildings built on previously open land, as well as the value of both new additions to existing structures and new structures built to replace previously existing structures. New growth has provided an important component of available annual revenue over the past decade as the following chart shows: In FY19, new growth is projected to add $480,000 to the property tax levy, an increase of 1.35% over FY18’s available tax levy. While new growth has had two particularly strong $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 est New Growth | 7 years, the accelerated completion of both the Toll Brothers and Cook Estates projects were key contributors to both figures. Growth is expected to continue at a slower pace for the immediate future. As property taxes represent more than 80% of Town revenue, modest increases in the tax base reflected in new growth figures have helped provide the budgetary cushion to support the development of the Town Human Resources office, the growth of the Information Technology department and its ability to support initiatives like the Cohasset Schools digital learning plan, and investments in improved facilities maintenance. The single largest component of local receipt revenue is the Motor Vehicle excise tax. A revenue highly dependent on the economy, excise taxes fell after the recession, and only began to increase noticeably in FY13. As the chart below shows, those increases began to level off in FY 15, and actually declined slightly in FY 16, before increasing again in FY 17. With such unpredictability, conservative budgeting of this revenue source is an important facet of the Town’s budget development process. State aid, which declined after the recession, has increased only modestly over the past several years. State aid for Education, known as Chapter 70, has seen only minimal increases since a jump in FY14, and formulas for Chapter 70 consistently place Cohasset at the lower end of proposed annual increases. $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 Motor Vehicle Excise Tax | 8 The other component of State Aid, known as Unrestricted General Government Aid, has risen in recent years but still remains well below its high of $640,000 in FY08. In summary, the revenue base for the FY19 Cohasset budget is both stable and growing sufficiently to support investments in enhanced services and the staff and equipment which make those services possible. Key Expenses Town government is a service delivery operation, and the staff that support and provide those services are our single most important resource. This year has witnessed the roll-out $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 est Chapter 70 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 est Unrestricted Aid | 9 of a weekly staff training program, an employee service recognition event celebrating staff with 25 or more years with Cohasset, and ongoing enhancements to a performance review system designed to encourage managers and staff to communicate more and strengthen team building. As some of those long serving staff enter a well-deserved retirement, and others move on to other career opportunities, there has also been a focus on the addition of new members to the team, including a Finance Director/Town Accountant, a new Assistant Director of Facilities, a new RTF Supervisor, several new administrative support staff, a Field Engineer, and a full-time planner. These new staff have added fresh energy and talent to an already well-trained and dedicated group. Part of what makes Cohasset an attractive place for professional staff is a focus on employee development. Dozens of staff attended a wide variety of sponsored skill, safety, and wellness programs during the year, including programs as diverse as healthy eating while plowing, stretch and strength, live fire-fighting training, and mediation programs. The skills learned, safe practices taught, and healthier living practiced make for a happier, better prepared and better conditioned workforce. While not all these benefits are easy to quantify in dollars and cents, two do stand out: a $28,000 reduction in workers comp and property/casualty insurance premiums in FY18 as a result of enhanced safety training and staff-developed safety and maintenance programs; and reduced health insurance claims, which has helped lower health insurance premium increases by 50% over the past four years. Such programs will continue to help reduce costs into the future, helping alleviate expense increases in health and other insurance premiums beyond the control of the Town. The following chart shows the acceleration in overall health care premium costs over the past decade. | 10 The retiree side of health insurance represents a long-term liability known as Other Post- Employment Benefits, or OPEB. Over the past five years, the Town has set aside more than $2.5 million in reserves to pay for these future expenses (see chart below), as well as making significant changes to retiree medical coverage and contribution levels to mitigate even more of these costs. Building on these efforts, work continues on balancing the promises made to current and $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 est FY19 est Health Insurance $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 OPEB Trust Fund as of June 30 | 11 retired employees while at the same time protecting taxpayers and the delivery of services in the future from being overwhelmed by these expenses. The other retiree benefit – the pension system – is also a financial challenge. Cohasset is part of the Norfolk County Retirement System, and pays into the plan for both future retirees, and to make up for a substantial underfunded liability created by prior plan management. As the chart below shows, pension costs have doubled over the past 10 years. The Town will continue to engage Norfolk County to improve its management of the pension system, and to explore any available alternatives to smooth out future expenses. Fiscal Policies – The foundation of a strong budget The Town’s achievement of its first AAA bond rating in February of 2016 was tied to Cohasset’s adopting, maintaining, building upon and following a series of financial management policies which date back to 2012. As the Financial Policy section of this document details, Cohasset has adopted a series of comprehensive guiding principles which cover things from debt management to fraud risk assessment. These policies guide the annual adoption of the budget as well. As a best practice, the annual budget is designed to generate an undesignated fund balance of between 3-4%. This ‘cushion’ is critical to a public sector budget as governments do not have the flexibility to make significant changes to either revenue or most expenses during a fiscal year. As the chart below shows, the Town has been on or close to target for the past six years (with the FY16 increase due primarily to one-time revenues, not recurring items). $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 est Pension | 12 Maintaining adherence to these policies has brought the Town to its reserve policy goal for the first time, as the following chart highlights. Strong reserves allow the Town to self-fund bond advances, pay cash for numerous smaller capital projects, and maintain a strong cash flow. It also protects the Town’s AAA bond rating, which will provide lower interest costs for major capital projects the Town will address in future years. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 FY12 FY13 FY14 FY15 FY16 FY17 Free Cash vs. Policy Goals Free Cash Goal Min Goal Max $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2012 2013 2014 2015 2016 2017 2018 est Stabilization Fund Balance vs. Policy Stabilization Fund Balances Policy Goal | 13 Conclusion This spending plan is the work of many months and many hours of staff and volunteer time spent collaborating in work sessions and public meetings. It represents a combination of solid revenues, managed expenses, ongoing efforts to reduce costs through operational efficiencies, and safeguarding the overall process with strong fiscal management policies. My thanks again to all who have participated in this process, and the ongoing effort to make this budget a faithful reflection of Cohasset’s community values. | 14 BALANCED BUDGET EXECUTIVE SUMMARY FY18 PROPOSED FY19 $ Change % Change TOTAL LEVY LIMIT 37,446,745 38,450,454 1,003,709 2.68% STATE AID/CHERRY SHEET 3,158,001 3,293,806 135,805 4.30% LOCAL RECEIPTS incl Hotel/Meals 3,666,960 3,847,407 180,447 4.92% OTHER REVENUES 807,487 852,970 45,483 5.63% FREE CASH APPROPRIATED 17,367 - (17,367) -100.00% TOTAL GENERAL FUND REVENUES 45,096,560 46,444,637 1,348,077 2.99% DEPARTMENT FY18 PROPOSED FY19 $ Change % Change ADMINISTRATIVE SERVICES 3,212,222 3,404,694 192,472 5.99% PUBLIC SAFETY 5,143,810 5,309,624 165,814 3.22% EDUCATION SERVICES 19,064,772 19,683,974 619,202 3.25% PUBLIC WORKS/FACILITIES 2,820,972 2,933,112 112,140 3.98% HEALTH & WELFARE 584,825 608,164 23,339 3.99% CULTURE & RECREATION 774,447 775,062 615 0.08% DEBT SERVICE 3,083,855 2,635,508 (448,347) -14.54% BENEFITS & INSURANCE 8,337,076 8,928,119 591,043 7.09% CAPITAL EXPENDITURES 225,000 212,000 (13,000) -5.78% STABILIZATION FUND CONTRIBUTIONS 1,220,000 1,275,697 55,697 4.57% NON-APPROPRIATED AMOUNTS 629,581 678,683 49,102 7.80% GROSS TOTAL TOWN 45,096,560 46,444,637 1,348,077 2.99% SEWER ENTERPRISE FUND (indirect costs included in General Fund Budget)2,259,706 2,560,643 300,937 13.32% WATER ENTERPRISE FUND (indirect costs included in General Fund Budget)4,920,130 4,871,904 (48,226) -0.98% FY19 REVENUE SUMMARY FY19 EXPENDITURE SUMMARY FY19 ENTERPRISE FUNDS OPERATING BUDGETS | 15 REVENUE BUDGET SUMMARY Levy Limit Calculation FY18 Proposed FY19 $ Change % Change Prior year levy limit 34,122,743 35,688,027 1,565,284 4.59% Add 2.5% Increase 853,069 892,201 39,132 4.59% Add New Growth 712,215 480,000 (232,215) -32.60% Add Debt Exclusion-Straits Pond Sewer 148,419 148,605 186 0.13% Add Debt Exclusion-Central Sewer 266,722 267,058 336 0.13% Add Debt Exclusion-School Renovation 1,014,063 968,563 (45,500) -4.49% Add Debt Exclusion-Osgood School 340,098 - (340,098) -100.00% Add Debt Exclusion-School Planning 6,175 6,000 (175) -2.83% Excess Levy Capacity (16,759) - 16,759 -100.00% Total Levy 37,446,745 38,450,454 1,003,709 2.68% REVENUES State Aid/Cherry Sheet 3,158,001 3,293,806 135,805 4.30% Local Receipts 3,484,847 3,663,473 178,626 5.13% Hotel/Meals 182,113 183,934 1,821 1.00% Free Cash Appropriated 17,367 - (17,367) -100.00% Transfer from Enterprise Funds for Indirect Costs 206,883 211,779 4,896 2.37% Transfer from Capital Stabilization(debt service)435,520 476,737 41,217 9.46% Transfer from Community Preservation Fund(debt)24,747 24,117 (630) -2.55% Transfer from Title V Betterments(debt)75,000 75,000 - 0.00% Transfer from MSBA Surplus(debt)65,337 65,337 - 0.00% TOTAL GENERAL FUND REVENUES 45,096,560 46,444,637 1,348,077 2.99% FY19 REVENUE SUMMARY | 16 REVENUE PIE CHART TAX LEVY $38,450,454 83%LOCAL RECEIPTS $3,847,407 8% STATE AID $3,293,806 7% OTHER AVAILABLE FUNDS $852,970 2% TAX LEVY LOCAL RECEIPTS STATE AID OTHER AVAILABLE FUNDS FY 2019 REVENUE | 17 EXPENDITURE BUDGET SUMMARY DEPARTMENT FY18 BUDGET FY19 RECOMMENDED $ Change % Change ADMINISTRATIVE SERVICES TOWN MODERATOR 500 500 - 0.00% BOARD OF SELECTMEN 178,740 158,600 (20,140) -11.27% TOWN MANAGER 424,873 515,100 90,227 21.24% HUMAN RESOURCE MANAGEMENT 150,000 153,750 3,750 2.50% ADVISORY COMMITTEE 360 360 - 0.00% RESERVE FUND 225,000 229,500 4,500 2.00% DIRECTOR OF FINANCE 254,736 240,661 (14,075) -5.53% BOARD OF ASSESSORS 229,209 211,761 (17,448) -7.61% TREASURER/COLLECTOR 316,923 335,821 18,898 5.96% LEGAL SERVICES 150,000 150,000 - 0.00% CHIEF TECHNOLOGY OFFICE 369,000 436,399 67,399 18.27% TOWN TECHNOLOGY 107,124 127,500 20,376 19.02% TOWN CLERK 159,115 171,100 11,985 7.53% PERMITS & INSPECTIONS 230,402 257,402 27,000 11.72% UNCLASSIFIED 416,240 416,240 - 0.00% ADMINISTRATIVE TOTAL 3,212,222 3,404,694 192,472 5.99% PUBLIC SAFETY POLICE 2,409,956 2,540,019 130,063 5.40% FIRE 2,427,200 2,462,851 35,651 1.47% BUILDING COMMISSIONER 151,665 150,165 (1,500) -0.99% EMERGENCY MANAGEMENT 38,000 38,000 - 0.00% HARBORMASTER 116,514 118,114 1,600 1.37% SHELLFISH CONSTABLE 475 475 - 0.00% PUBLIC SAFETY TOTAL 5,143,810 5,309,624 165,814 3.22% EDUCATION SERVICES COHASSET SCHOOLS 18,895,656 19,550,594 654,938 3.47% SCHOOL SUPPORT OFFICER 100,000 75,380 (24,620) -24.62% SOUTH SHORE VOCATIONAL 69,116 58,000 (11,116) -16.08% EDUCATION SERVICES TOTAL 19,064,772 19,683,974 619,202 3.25% PUBLIC WORKS/FACILITIES DEPT OF PUBLIC WORKS 1,237,548 1,326,277 88,729 7.17% SNOW & ICE REMOVAL 125,000 125,000 - 0.00% STREET LIGHTING 45,000 45,000 - 0.00% TRANSFER STATION 474,398 475,074 676 0.14% FACILITIES MANAGEMENT 939,026 961,761 22,735 2.42% PUBLIC WORKS/FACILITIES TOTAL 2,820,972 2,933,112 112,140 3.98% FY19 EXPENDITURE SUMMARY | 18 DEPARTMENT FY18 BUDGET FY19 RECOMMENDED $ Change % Change HEALTH & WELFARE BOARD OF HEALTH 161,405 163,005 1,600 0.99% ELDER AFFAIRS 281,828 300,795 18,967 6.73% VETERANS SERVICES 141,592 144,364 2,772 1.96% HEALTH & WELFARE TOTAL 584,825 608,164 23,339 3.99% CULTURE & RECREATION LIBRARY 642,587 643,202 615 0.10% RECREATION 130,760 130,760 - 0.00% COMMON HISTORICAL COMMISSION 500 500 - 0.00% HISTORICAL PRESERVATION 600 600 - 0.00% CULTURE & RECREATION TOTAL 774,447 775,062 615 0.08% DEBT SERVICE DEBT SERVICE 3,083,855 2,635,508 (448,347) -14.54% DEBT SERVICE TOTAL 3,083,855 2,635,508 (448,347) -14.54% BENEFITS & INSURANCE PENSION ASSESSMENT 2,296,320 2,512,622 216,302 9.42% WORKERS COMPENSATION 198,000 278,242 80,242 40.53% UNEMPLOYMENT 5,000 5,000 - 0.00% HEALTH INSURANCE 5,155,527 5,433,859 278,332 5.40% LIFE INSURANCE 9,933 10,132 199 2.00% MEDICARE TAX 345,868 354,515 8,647 2.50% PROPERTY & LIABILITY INSURANCE 326,428 333,749 7,321 2.24% BENEFITS & INSURANCE TOTAL 8,337,076 8,928,119 591,043 7.09% CAPITAL EXPENDITURES Public Roads Repair 225,000 212,000 (13,000) -5.78% 225,000 212,000 (13,000) -5.78% FY19 EXPENDITURE SUMMARY (cont.) | 19 DEPARTMENT FY18 BUDGET FY19 RECOMMENDED $ Change % Change STABILIZATION FUND CONTRIBUTIONS Capital Stabilization Fund 1,070,000 1,125,697 55,697 5.21% Stabilization Fund 50,000 50,000 - 0.00% OPEB Trust 100,000 100,000 - 0.00% STABILIZATION FUND CONTRIBUTIONS TOTAL 1,220,000 1,275,697 55,697 4.57% NON-APPROPRIATED AMOUNTS STATE ASSESSMENTS 391,636 439,864 48,228 12.31% OVERLAY RESERVE 225,000 225,000 - 0.00% CHERRY SHEET OFFSETS 12,945 13,819 874 6.75% PROJECTED FREE CASH - - - - NON-APPROPRIATED AMOUNTS TOTAL 629,581 678,683 49,102 7.80% GROSS TOTAL TOWN 45,096,560 46,444,637 1,348,077 2.99% FY19 EXPENDITURE SUMMARY (cont.) SEWER ENTERPRISE FUND (indirect costs included in General Fund Budget)2,259,706 2,560,643 300,937 13.32% WATER ENTERPRISE FUND (indirect costs included in General Fund Budget)4,920,130 4,871,904 (48,226) -0.98% FY19 ENTERPRISE FUNDS OPERATING BUDGETS | 20 EXPENDITURE PIE CHART Other $2,166,410 5% Shared $12,511,626 27% School $19,550,594 42% Town $12,216,007 26% Fiscal Year 2019 Budget Other Shared School Town | 21 FIVE YEAR FORECAST TOWN OF COHASSET FORECAST 4/12/2019 5 YEAR ESTIMATES OF REVENUE VS. EXPENSES TOTAL FY18 FY19 FY20 FY21 FY22 FY23 LEVY Prior year 34,122,743 35,688,027 37,060,228 38,436,734 39,847,652 41,293,843 2.5% Increase 853,069 892,201 926,506 960,918 996,191 1,032,346 New Growth 712,215 480,000 450,000 450,000 450,000 450,000 Debt Exclusion 1,775,477 1,390,226 1,260,213 1,153,335 846,063 806,638 Excess Levy Capacity (16,759) - - - - - Total Levy 37,446,745$ 38,450,454$ 39,696,947$ 41,000,987$ 42,139,906$ 43,582,827$ REVENUES(and offsets to operational expenses) State Aid/Cherry Sheet 3,158,001 3,293,806 3,326,745 3,360,014 3,393,615 3,427,551 Local Receipts 3,666,960 3,847,407 3,897,440 3,945,291 3,993,983 4,043,534 Transfer from Wetlands Fund - - - - - - Transfer from Enterprise Funds for Indirect Cost 206,883 211,779 217,074 222,501 228,063 233,764 Total Revenues 7,031,844$ 7,352,992$ 7,441,259$ 7,527,806$ 7,615,661$ 7,704,849$ Other Financing Sources/One-time receipts Free Cash 911,282 Transfer from Capital Stabilization(debt service)435,520 476,737 396,252 205,252 205,562 202,812 Transfer from Stabilization Fund - Transfer from CPC 24,747 24,117 23,093 21,884 21,284 21,884 Transfer from Title V Betterments 75,000 75,000 75,000 75,000 75,000 75,000 Transfer from MSBA Surplus 65,337 65,337 65,337 65,337 65,337 65,337 Transfer from Reserve for Debt Exclusion - Total Other Financing Sources/One-time receipt 1,511,886$ 641,191$ 559,682$ 367,473$ 367,183$ 365,033$ Total Levy/Revenue/Other Financing Sources 45,990,475$ 46,444,637$ 47,697,888$ 48,896,266$ 50,122,750$ 51,652,709$ OTHER AMOUNTS TO BE RAISED Cherry Sheet Offsets 12,945 13,819 13,957 14,097 14,238 14,380 State & County Assessments 391,636 439,864 445,560 451,361 457,271 463,290 Overlay 225,000 225,000 225,000 225,000 225,000 225,000 Total Other Amounts to be raised 629,581$ 678,683$ 684,517$ 690,458$ 696,509$ 702,670$ TRANSFERS TO OTHER FUNDS Transfer Capital Stabilization Fund 1,320,000 1,125,697 1,324,026 1,596,947 1,894,056 1,906,946 Transfer Stabilization Fund 175,000 50,000 50,000 50,000 50,000 50,000 Transfer SPED Stabilization Fund 25,000 OPEB 350,000 100,000 100,000 100,000 100,000 100,000 Total Transfers to Other Funds 1,870,000$ 1,275,697$ 1,474,026$ 1,746,947$ 2,044,056$ 2,056,946$ CAPITAL EXPENDITURES Facilities Upgrades Article - - 50,000 50,000 50,000 50,000 Public Roads Repair Article 225,000 212,000 150,000 150,000 150,000 150,000 Total Capital Expenditures 225,000$ 212,000$ 200,000$ 200,000$ 200,000$ 200,000$ SHARED BUDGET DETAILS Articles 184,915 155 Chief Information Office (town-wide)369,000 436,399 447,309 458,492 469,954 481,703 124 Human Resources (town-wide)150,000 153,750 157,594 161,534 165,572 169,711 125 School Support Officer (town-wide)100,000 75,380 77,265 79,197 81,177 83,206 132 Reserve Fund 225,000 229,500 234,090 238,772 243,547 243,547 945 Risk Management 326,428 333,749 350,436 367,958 386,356 405,674 390 So Shore Vo Tech 69,116 58,000 59,450 60,936 62,459 64,020 700 Debt & Interest 1,243,041 1,179,945 981,616 708,695 411,586 398,696 700 Debt & Interest Excluded 1,840,814 1,455,563 1,325,550 1,218,672 911,400 871,975 911 Norfolk County Pension 2,296,320 2,512,622 2,713,632 2,930,723 3,165,181 3,418,395 912 Workers' Compensation 198,000 278,242 292,154 306,762 322,100 338,205 914 Health Insurance 5,155,527 5,433,859 5,759,891 6,105,484 6,471,813 6,860,122 915 Life Insurance 9,933 10,132 10,335 10,542 10,753 10,968 916 Medicare Taxes 345,868 354,515 363,378 372,462 381,774 391,318 Total Shared Budgets 12,513,962$ 12,511,656$ 12,772,700$ 13,020,229$ 13,083,672$ 13,737,540$ Total All Expenditures 15,238,543$ 14,678,036$ 15,131,243$ 15,657,634$ 16,024,237$ 16,697,156$ Available Revenue 30,751,932$ 31,766,601$ 32,566,645$ 33,238,632$ 34,098,513$ 34,955,553$ Net Change Y/Y 1,073,669$ 800,044$ 671,987$ 859,881$ 857,040$ % Change Y/Y 3.38%2.46%2.02%2.52%2.45% School Share of 61% New Revenue 654,938$ 488,027$ 409,912$ 524,527$ 522,794$ Town Share of 39% New Revenue 418,731$ 312,017$ 262,075$ 335,354$ 334,246$ School Budget as Recommended 18,895,656$ 19,550,594$ 20,038,621$ 20,448,533$ 20,973,060$ 21,495,854$ Town Budget as Recommended 11,856,276$ 12,216,007$ 12,528,024$ 12,790,099$ 13,125,453$ 13,459,699$ 30,751,932$ 31,766,601$ 32,566,645$ 33,238,632$ 34,098,513$ 34,955,553$ | 22 GENERAL ADMINISTRATION | 23 PERSONNEL SUMMARY NOTE: 0.75 Full Time Equivalent (FTE) proposed for FY18 (>19 hours/week). | 24 GENERAL GOVERNMENT Town Manager Mission Statement The Town Manager is the Chief Administrative officer of the Town, and is responsible for managing the day-to-day operations of municipal government as outlined in the Town Manager Act and Town Bylaws. This includes responsibility for the preparation and management of the annual Town budget as Chief Financial Officer, the appointment and management of all managers and employees, and the purchasing of all goods and services as Chief Procurement Officer. The Town Manager also works closely with the Board of Selectmen to develop and implement goals and policies for efficient and effective administration of Town government. Programs and Services Boards and Committees The Town Manager works with all Town Boards and Committees to ensure the efficient and effective operation of government, providing primary support for the Board of Selectmen and regular partnership with the Advisory Committee, the Capital Budget Committee, and the Long Range Planning Committee. Prior Year Major Accomplishments 1. Joining Community Compact program and acceptance of related grants totaling $55,000 for IT Security and GIS upgrades 2. GFOA CAFR award for 4th consecutive year 3. Award from MIIA for Town Risk Management program (which generated more than $28,000 in premium savings for workers comp/property-casualty coverage) 4. Green Communities funding for installation of Electric Car Charging Station at Town Hall and acquisition of three electric vehicles for Town fleet 5. HR Department roll-out of: new performance management plan; new training program; new management org chart; expanded employee recognition program; new e-payroll and HR management system 6. Hiring of new Finance Director Town Manager • Oversight of day-to-day operations as Chief Administrative Officer • Preparation of the annual Town operating and capital budgets • Preparation of the warrant for all Town Meetings • Appointment and removal of all employees • Coordination of long range planning activities among boards, commissions and committees • Administration of the Town bylaws and other general and special laws • Maintenance of Town property • Management of litigation • Negotiation of Collective Bargaining Agreements • Procurement of goods and services • Support for the Board of Selectmen • Management of relationships with other municipal neighbors and other levels of government | 25 7. New Town website with mobile features and new Town Facebook page 8. Completion of new fiber network and telephone system Goals for Coming Year 1. Work with Town Hall Building Committee to facilitate preparation of design plans for an updated Town Hall for presentation to Town Meeting 2. Support the new Town Planner in developing planning resources for the community and assist in creation of Town Master Plan and Town Harbor Management Plan 3. Implement new e-permitting system in the Department of Planning, Permits and Inspections 4. Collaborate in the development of a regional sewer study with $200,000 state grant in partnership with Hull, Scituate and Cohasset Sewer Commission 5. Expand communications outreach to residents across multiple channels 6. Review and improve budget and financial reporting tools, systems and training programs with the Finance Director 7. Further the CIO’s development of an updated technology plan for the Town Changes in Budget, Goals and Objectives With a strong management team, a AAA bond rating, and a strong board and committee structure in place, the Town is now able to take on long overdue major projects like the Master Plan, the Harbor Plan, significant infrastructure improvements such as Town Hall, and the modernization of the Town’s technology platforms including the fiber network and the telephone system. This work has begun to generate operational efficiencies with real budget impact, such as the new telephone system allowing the elimination of 40 phone lines, the fiber network reducing the costs for firewalls, and the consolidation of public safety software costs at the regional level opening up funding for new initiatives. Repurposed funds in this year’s budget include support for on-line training software for the Fire Department, support costs for the e-permitting system, and annual funding for routine replacement of small technology purchases like laptops and tablets. *The Town is currently negotiating new collective bargaining agreements which will commence 7/1/18 (FY19). Therefore, the Personnel budget in the Town Manager department includes potential contract increases for FY19. Once the three year agreements are completed, the Town will have the necessary information to include the annual personnel increases in the respective departmental budgets. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED* TOWN MANAGER PERSONNEL 278,395 408,300 *508,100 EXPENSES 3,948 16,573 7,000 SUBTOTAL 282,343 424,873 515,100 FULL TIME EQUIVALENTS 3 3 3 | 26 Human Resources Mission Statement Human Resources shepherds perpetual strategic progress in the quality, efficiency, and effectiveness of Town services by reviewing and improving organizational structures, recruiting and retaining talented and passionate teams, inspiring and encouraging excellent customer service and optimism, and fostering frequent and clear communications. Programs and Services Prior Year Major Accomplishments FY2018 has seen the implementation of a number of programs for Human Resources. Additionally, HR managed some retirements, organizational restructuring, position revisions, and recruiting. The following programs, in particular, were advanced: 1. Strategic Planning: formal goal setting, communications and evaluation were set into motion. Additionally, communication Town-wide was improved through better organizational structure and scheduled frequent meetings and reports. 2. Training and Professional Development: weekly all-staff training kicked off, with one program planned each week in the areas of technology, wellness, management, and “Illuminations,” an area which focuses on the Town of Cohasset and its governance. 3. Staffing: YTD there have been 11 positions requiring attention regarding retirements, position changes, or recruitment. 4. Recognition: FY2018 saw the Town’s first recognition event for staff celebrating 25 years or more of service. The annual Employee Appreciation event was quite enjoyable and continues to foster goodwill among the staff. Goals for Coming Year FY2019 will see the implementation and improvement of the programs implemented in FY2018. Additionally, it will be beneficial to focus on opportunities in the following areas: 1. Organizational Development: additional review of current job responsibilities and how they are structured; continued analysis of volunteer structure; identifying opportunities for increased efficiency and/or effectiveness through structure; and focus on operative and purposeful succession planning. 2. More personalized training and development plans: working with departments to personalize training plans. Human Resources offer the following services to Town leaders and teams: • Organizational Development • Policy Creation and Review • Strategic Planning • Recruitment • Retention, including Onboarding, Employee Appreciation, Benefits and Compensation Review, Negotiations, and Private Consultation. • Training and Professional Development • SUCCESS – System of Unified Communications for Cohasset Employees and Supervisors (reciprocal dialogue regarding goals and performance) • Volunteer Support | 27 3. Analysis of benefit programs, and identification of opportunities for new and improved benefits for staff and volunteers. 4. Compensation analysis begun in FY2018, with a plan to make the process of salary review more efficient and motivational. Changes in Budget, Goals and Objectives 1. Human Resources will see a few significant changes in FY2019. Now that the new HRIS (Payroll, Time and Attendance, and HR system) has been implemented, more work can be done with data analysis and identification of opportunities for improved customer service. 2. Second, there will be a shift from general and introductory implementation of the evaluation/feedback and training programs. These programs will continue and new attention will be given to more personalization by department. 3. Last, HR will get more involved in committee and board support, ensuring better recruitment, communication, retention, training, transfer of knowledge and departure. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED HUMAN RESOURCE MANAGEMENT PERSONNEL 78,649 83,232 83,232 EXPENSES 5,613 66,768 70,518 SUBTOTAL 84,262 150,000 153,750 FULL TIME EQUIVALENTS 1 1 1 | 28 Information Technology Mission Statement Information Technology Services (ITS) develops procedures and practices for seamless integration of staff and technologies. ITS develops system standards for purposes of enabling all departments to meet their goals and objectives in an integrated and efficient manner. Cohasset’s network of resources is designed to serve the needs of First Responders, Educational and Municipal departments. ITS primary goals are to support the various departments, boards and committees through technology solutions including supplying Connectivity, ensuring Data Availability, Security awareness and insight to relevant technologies for purposes of meeting each department’s ongoing objectives. Programs and Services Boards and Committees ITS regularly interacts with all departments, also ITS will develop a collaborative environment with Capital Budget, Advisory Board, and most other boards or commissions requiring technical resources for the betterment and advancement of strategic goals. Regular support is provided to the following departments, Accounting, Treasure/Collector, Selectmen, DPW, Facilities, Conservation, Health, Police, Fire, Cohasset Schools, Veteran Affairs, Water, Waste Water, Harbor Master, Recreation, Council on Aging, Emergency Operations, and Procurement. Additionally the CIO meets regularly with Regional State and Local government entities to review common regional efforts. Prior Year Major Accomplishments 1. Municipal & School IT budget Integration 2. Capital Budget Technology endorsements 3. Implemented new town wide Infrastructure projects 4. Implemented extended and enhanced Unified Communications System 5. Rolled out Successful new Digital Learning device deployment including BYOD 6. Deployed a Mobile Device Management solution 7. Deployed a new Helpdesk and Patch Management solution 8. Developed Policy and Procedures tied to Technology usage 9. Deployed successful camera and HID Security project implementations Responsibilities • Selection, purchase, implementation and management of the town’s Technology systems and infrastructure • Vetting potential solutions • Reviewing funding requirements • Reviewing the engineering and development associated with Technology adoption • Project management Services • Software support • Application support • Hardware support • Network support • Technical training and Technology procurement • Engineering and Project management • Telephony support • Curriculum support associated with BYOD and Digital Learning • Budgeting and Administration of all Technology funding and inventories | 29 10.Migrated numerous department websites to a new website provider with a mobile device module. Goals for Coming Year 1. Enhanced service offerings for all departments, including Schools BYOD project 2. Security initiatives 3. Implement E-Permitting (EP) & Electronic Document Management (EDM) systems in line with Board of Selectmen objectives 4. Leverage Regionalization grants for common South Shore Regionalization goals 5. Reduce overhead and increase system reliability through reductions in Gateways and associated Firewalls 6. Add additional transparency through technology adoption and streamline constituents FOIR process via EDM and EP solutions. Changes in Budget, Goals and Objectives 1. Review applicable cloud based solutions such as SAAS, IAAS for business continuity and long term budget forecast options, including ten year projections for Capital Budgeting goals. 2. Leverage vendor support as applicable for better infrastructure support. 3. Invest in our personnel for better support of current and projected systems. 4. Review potential Internship program tied to Technology department. 5. Review expenditures relating to SLA.s and Leases, including Centrex Lines, Cell Voice/Data Plans, Copier and Central Printing SLA’s. 6. Include those funding line items in the Municipal IT / Infrastructure budget for more cohesive SLA and cost avoidance goals. 7. Look at options to integrate School and Municipal Cell contracts for better economies of scale and potential cost reductions. 8. Review with business manager to reveal any potential savings utilizing one copier vendor across the entire town. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED TOWN TECHNOLOGY PERSONNEL - - - EXPENSES 75,506 107,124 127,500 SUBTOTAL 75,506 107,124 127,500 FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED CHIEF TECHNOLOGY OFFICE PERSONNEL 223,790 230,299 230,299 EXPENSES 205,189 138,701 206,100 PRIOR YEAR ENCUMBRANCES 33,788 - - SUBTOTAL 462,767 369,000 436,399 FULL TIME EQUIVALENTS 2 2 2 | 30 Finance/Accounting Mission Statement The Mission of the Finance and Accounting Department is to protect the fiduciary interests of the Town of Cohasset by providing independent, timely oversight of the Town's finances and by ensuring that financial transactions are executed legally, efficiently, and effectively. The Finance and Accounting Department provides the controllership and audit functions for the Town of Cohasset and its departments. It coordinates the financial activities of the Board of Assessors and the Treasurer/collector's offices. Accounting assures that financial transactions are undertaken in accordance with federal, state, and local law, regulation, contract, and policy as well as adherence to generally acceptable accounting principles (GAAP). The Department serves as a barrier to potential fraud or misuse of Cohasset's resources. The Finance and Accounting Department is responsible for maintaining and administering a financial account and management information system that provides accurate, complete, and timely information pertaining to all financial activities of Cohasset's town departments, boards, and commissions. Accounting provides financial information to a wide variety of stakeholders including the Board of Selectmen, Town Manager, Town departments, federal, state, and other levels of government along with the citizens of Cohasset. Programs and Services Prior Year Major Accomplishments 1. Certification of Free Cash and Retained Earnings 2. Certification of FY2018 Tax Rate 3. Submission of Schedule A 4. Fraud Risk Assessment 5. Certificate of Achievement for the 2017 Comprehensive Annual Financial Report 6. Coordination of the July 1, 2016 OPEB Actuarial Valuation and Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017 Finance Department/Town Accountant • Timely approval and processing of vendor and payroll warrants in compliance with all local, state, and federal laws. • Timely distribution and filing of IRS 1099 forms to vendors • Internal departmental fraud risk assessments • Certifying availability of all appropriations • Closing the financial books at the end of the fiscal year • Preparing and submitting annual reports to the State Department of Revenue • Coordination of the external audit • Coordination and compilation of the Comprehensive Annual Financial Report • Coordination of OPEB actuarial valuation • Maintaining balance sheets for all funds for free cash and retained earnings certification • Preparing the Town's annual financial statement • Monthly reconciliation of cash and account receivables to the books of the Treasurer/Collector | 31 Goals for Coming Year 1. Ongoing: Certification of Free Cash, Retained Earnings, FY 2019 Tax Rate, and Submission of Schedule A 2. Continue to Assist in Implementation of New HR/Payroll/Time and Leave Software 3. Continue to Assist in Improvement of budget process 4. Plan for new Finance software and related operating procedures 5. Address and Resolve Management Letter Comments as a Result of June 30, 2017 Audit FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED DIRECTOR OF FINANCE PERSONNEL 170,163 173,061 168,686 EXPENSES 69,211 81,675 71,975 SUBTOTAL 239,374 254,736 240,661 FULL TIME EQUIVALENTS 2 2 2 | 32 Assessing Mission Statement The Assessors are required by Massachusetts Law to list and value all real and personal property on an annual basis. Assessed values in Massachusetts are based on “full and fair cash value,” or 100 percent of the fair market value as of January 1 of each year. Cohasset has adopted the provisions of Chapter 653 to allow the collection of new construction through June 30th for growth purposes. To arrive at “full and fair cash value,” the Assessors interpret the real estate market by analyzing property sales. This involves an analysis of market activity by each class of property. Assessors are required to submit these values to the State Department of Revenue for certification every five years. In the interim years, Assessors must also analyze the real estate market and perform adjustments to values as needed. This requirement is so that the property owner pays his or her fair share of the cost of local government, in proportion to the amount of money the property is worth, annually rather than every five years. In addition, the office administers statutory exemptions, abatements, and motor vehicle and boat excise. Finally, the Assessors compile the necessary tax policy data used in the annual tax classification hearing. Programs and Services For Town Departments and Public • Update and maintain property values in Patriot Appraisal Software • Update and maintain ownership record via deeds from Norfolk County Registry of Deeds • Update and maintain property divisions via plans from Norfolk County Registry of Deeds • Update and maintain the GIS mapping system • Update Website information on Assessors’ page • Maintain Enhanced 911 Database and provide updates and additions to all departments For Town Departments • Provide tax commitments Real Property, Personal Property, Motor Vehicle and Boat Excise (Treasurer/Collector, Finance Director) • Provide tax abatements Real Property, Personal Property, Motor Vehicle and Boat Excise (Treasurer/Collector, Finance Director) • Provide betterment warrants (Treasurer/Collector, Finance Director) • Prepare Classification Hearing annually for the allocation of tax among property classes (Selectmen) • Provide various reports from various systems to the town departments. For Public • The Assessors interact with residents and process Statutory Exemptions for Disabled Veterans, Blind, Senior, and Tax Deferral. • Provide Property Classification information for Chapter 61, 61A & 61B Forestry/Agricultural/Recreational Land to the residents of Cohasset • Abutters Lists • Provide specific reports from various systems to the general public. | 33 Prior Year Major Accomplishments This has been a very busy year in the Assessors’ Office. A Recertification Program in accordance with the Department of Revenue guidelines was completed for Fiscal Year 2018. The audit, over a nine month period, consisted of property inspections for data quality, extensive analysis of sales data and trends, and reporting to establish fair and equitable assessments. The valuations were submitted to the Department of Revenue for preliminary certification in August. Upon notice of preliminary certification, a Public Disclosure was held in September. The Commissioner of Revenue determined that the locally assessed values of real and personal property represent full and fair cash valuations as of January 1, 2017 for Fiscal Year 2018 and that the proposed property assessments satisfy the minimum requirements for certification. In conjunction with other town departments, the Fiscal Year 2018 Tax Rate Recapitulation was approved on November 3, 2017. Seventy percent of the statutory exemptions were processed prior to the issuance of the Fiscal Year 2018 actual tax bill issued on December 28, 2017. Goals for Coming Year 1. 2019 is an interim certification year for Cohasset. 2. Review of residential and commercial land tables, building cost tables, depreciation schedules, condominium tables prior to next certification by the Department of Revenue in Fiscal Year 2019. 3. Ongoing improvements to Patriot Appraisal Software data and inclusion of updated photos. 4. Ongoing improvements to Assessors’ page of the Town of Cohasset Website. 5. Expand the Office Procedures Manual for the Assessors’ Office. 6. Coordinate with Engineering and other town departments to improve on GIS mapping to include additional layers of data. 7. Coordinate as liaison to South Shore Regional Emergency communications Center and maintain the Enhanced 911 Database for the town departments and the residents of Cohasset. Changes in Budget, Goals and Objectives 1. Continued access to electric vehicles for our inspections. 2. Training our new Senior Administrative Assistant Finance. 3. Filling the Assistant Assessor vacancy. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED BOARD OF ASSESSORS PERSONNEL 208,256 212,709 197,761 EXPENSES 4,345 16,500 14,000 SUBTOTAL 212,601 229,209 211,761 FULL TIME EQUIVALENTS 3 3 3 | 34 Treasurer/Collector Mission Statement The Treasurer Collector's Office strives to provide the highest level of customer service and support to all of the Town's constituencies, as well as satisfying the legal requirements set forth in the Massachusetts General Laws and the Town's Bylaws. Programs and Services Prior Year Major Accomplishments 1. Implemented new Payroll system increasing automation, particularly for school employees. In addition, all employees have online read access to their basic demographic and payroll information, and some capability to make changes. 2. Implemented a Time & Attendance system replacing many spreadsheets and double entries. This system allows several of our employees to enter and track their own time and allows managers to approve and submit employee time for payroll via the web. 3. Implemented a Human Resource, and Online Onboarding systems adding automation and electronic filing where none had existed. 4. Co-ordinated first comprehensive budget document to provide information and transparency for taxpayers, government officials, and bond rating agencies. This is a preliminary step to applying for a GFOA Distinguished Budget Award. 5. Implemented rapid! paycard allowing employees to take advantage of paperless payroll with or without a bank account. 6. Processed backlog of uncollectible motor vehicle and personal property taxes prior to 2011. 7. Completed refunding of $19,208,000 GO Bond originally issued in 2009 saving nearly $800,000 over 13 years. Treasurer •Receive all monies •Disburse all monies •Cash reconciliation •Manage all investments •Administer debt service •Manage Tax Title & Tax Deferral properties •Foreclose in Land Court •Manage Trust Accounts •Serve as Treasurer for Cohasset Library Trust (CLT) •Trustee for several scholarship, cemetery, and other trust Funds •Monitor Student Activity Accts Collector •Real Estate Tax billing & collecting •Motor Vehicle Excise Tax billing & collecting •Personal Property Tax billing & collecting •Boat Excise Tax billing & collecting •Water & Sewer bill collecting •Special Assessments and lien collection •Online payment services •Lockbox payment services •Municipal Lien Certificates •Tax Takings •Receivables reconciliation Payroll •Process & fund payroll •Administration, withholding, and disbursement of all payroll liabilities •Report on payroll •Track accruals Tax Custodian •Manage Tax Possessions •Dispose of Tax Possessions Benefits •Administer benefits for Employees & Retirees •Onboarding for new staff •Open enrollment •Manage relationships with Health, dental, Life insurance providers •Manage relationship with two retirement boards | 35 Goals for Coming Year 1. Add additional staff to Webtime Time & Attendance system. Several hourly school employees are scheduled to be added to Webtime during the first quarter of 2018. 2. Continue to implement and tailor the new Payroll, Time & Attendance, and Online Onboarding systems. As we use the systems, we are learning more and leveraging what they have to offer to better meet our needs. 3. Develop electronic feeds from existing systems including school iPass and police POSS to directly feed the new payroll system. 4. Continue to process backlog of uncollectible motor vehicle and personal property taxes. 5. Continue to work towards GFOA budget award. Changes in Budget, Goals and Objectives 1. none FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED TREASURER/COLLECTOR PERSONNEL 256,428 261,503 280,331 EXPENSES 46,634 55,420 55,490 PRIOR YEAR ENCUMBRANCES 157 - - SUBTOTAL 303,219 316,923 335,821 FULL TIME EQUIVALENTS 4 4 4 | 36 Town Clerk Mission Statement It is the mission of the Office of the Town Clerk to be a primary provider of courteous, competent and efficient service to the community resulting in public confidence and respect for the government. We are dedicated to the preservation of the Town’s vital records and historical documents for the benefit of future generations. We respect the right to vote as a fundamental civil right and will assure that all elections are conducted in a fair and open manner providing equal access to all citizens. Programs and Services Prior Year Major Accomplishments 1. Obtained funding at the STM and purchased a third voting tabulator to be used as a spare and for early voting. 2. Increased the sale of dog license by 37 percent, $2,400. 3. Transitioned to the new Town Website, including uploading election and town meeting records, posting over 600 meeting notices and offering online payments to order dog licenses. 4. Town Clerk was appointed Records Access Officer for Cohasset’s governmental records. Duties include coordinating a response to requests for access to public records and assisting individuals seeking public records. Goals for Coming Year 1. Finalize codification of Town’s General and Zoning bylaws – General Code. 2. Continue computer (excel), vital records and election law education of Town Clerk and staff by attending Mass Town Clerk’s conferences and in-house opportunities. Duties • Often considered the gateway to local government and the community, the Office of the Town Clerk serves as the central information point for residents and visitors alike. • The Town Clerk is the chief election official, recording official, registrar of vital records and public records official. • The Town Clerk oversees the polling place and conducts all Federal, State and local elections and election-related activity. The Town Clerk records all actions of town meetings. The Town Clerk conducts the Annual Census and maintains the voter lists. • The Clerk’s Office maintains the Town By-Laws, postings for all public meetings, oaths of office, appointments and resignations of all town officials. • The Clerk’s Office issues state licenses and permits, including marriage licenses, business certificates and renewals, dog licenses, raffle/bazaar permits, All Facility permits and certified requests for public documents. • The Clerk and staff respond to inquiries from the public as well as from other departments, boards and committees. | 37 FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED TOWN CLERK PERSONNEL 152,372 151,285 161,150 EXPENSES 7,703 7,830 9,950 PRIOR YEAR ENCUMBRANCES 350 - - SUBTOTAL 160,425 159,115 171,100 FULL TIME EQUIVALENTS 2 2 2 | 38 Permitting and Inspections Mission Statement The Permitting & Inspections Department’s Mission is to provide full administrative support to the Board of Health, Building Department, Conservation Commission, Planning Board and Zoning Board of Appeals with the ultimate goal of assisting each of those Boards and Departments day-to-day operations to achieve their mission and goals as cited below. Programs and Services Boards and Committees Boards and Committees the department works with and is directly responsible to support include: Board of Health, Building Department, Conservation Commission, Planning Board, and Zoning Board of Appeals. Boards, Departments, and Committees the department interacts with daily include: Alternative Energy Committee, Board of Selectmen, Design Review Board, Fire Department, Open Space Committee, Police Department, Sewer Commission, Water Department, and Zoning Advisory Committee. Prior Year Major Accomplishments 1. ZONING BOARD OF APPEALS: a. Meetings held: 12 b. Minutes written: 12 c. New filings: 18 i. Special Permits: 15 (Granted: 12, Pending: 3, Denied: 0, Not voted yet: 3) ii. Variances: 2 (Granted: 1, Denied: 1) iii. Remands: 0 iv. Appeals: 1 (Granted: 1) Permitting and Inspections • Assisting the public in the office or via phone with general questions and inquiries about filing and permitting processes, inspection procedures, property files etc. • Scheduling of inspections • Processing of permit applications and filing submissions including reviewing for completeness • Supervising review of permit applications by other relevant Departments & Boards • Performing clerical functions such as processing all fees received and, payment of invoices • Establishing yearly meeting schedules and submission deadlines • Meeting preparation including: establishing agendas, scheduling and posting of meetings, advertising public hearings as required, notification of abutters, preparation of meeting materials, attendance at meetings and writing of minutes • Collecting and consolidating relevant information for Boards, Board consultants and Town counsel to prepare for deliberations, decision votes and decisions as needed • Participating in budget preparation • Participating in preparation of Annual Reports • Processing and communicating Board decisions • Preparing and distributing monthly reports • Maintaining up-to-date status reports for all filings | 39 2. CONSERVATION COMMISSION: a. Meetings held: 24 b. Minutes written: 21 c. New filings: i. Notice of Intent: 19 ii. Request for Determination of Applicability: 6 iii. Stormwater Permits: 22 d. Special Projects: i. Continue to work on reduction of paper in files ii. Continue updating some forms and processes iii. Create intake manuals for applications 3. BUILDING DEPARTMENT: a. Permits Issued: i. Building: 408 ii. Electrical: 399 iii. Plumbing: 198 iv. Gas: 175 v. Trench: 5 vi. Certificates of Occupancy: 54 4. PLANNING BOARD: i. Meetings held: 25 ii. Minutes written: 25 iii. Site Plan Reviews filings: 2 iv. Special Permit filings: 0 v. Subdivision filings: 0 vi. Large Home Review filings: 7 vii. Form A-ANR filings: 10 viii. ZBA Applications Reviewed: 14 Goals for Coming Year 1. To improve communication and information sharing between Permitting Departments as well as between other Boards and Committees with the ultimate objective of assisting the Permitting & Inspections Boards and Committees achieve their goals & objectives 2. Implement electronic permitting for Building Dept. filings and convert Building Dept. and the Board of Health applications to electronic forms and submission. 3. Staff fully trained in electronic permitting for Building Dept. 4. Have kiosk & terminal set-up for public use to submit applications electronically & begin to train public in need of assistance 5. Expand electronic permitting to BOH, ConCom, ZBA, Planning 6. Circulate all Permit applications/plans to relevant Boards, Committees, Departments for review on a routine basis 7. Cross train staff as necessary to utilize electronic permitting for all P&I departments Changes in Budget, Goals and Objectives 1. All Permitting and Inspection Goals center around the selection and establishment of electronic permitting system(s). Sub-Goals 1-6 described in above will take the better part of our time and attention during FY19. 2. The “Extra Hours” funds continue to be critical for the staff of the Permitting & Inspections Staff to accomplish special projects that cannot be fit into the daily workload in these very busy Departments. “Extra Hours” funding will be needed as we convert to | 40 Electronic Permitting and, as we work towards updating many outdated documents such as the 2001 approved Wetlands Regulations for Conservation. For this reason, we are requesting the “Extra Hours” funding be level funded at $9,000.00 for FY19. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED PERMITS & INSPECTIONS PERSONNEL 160,770 226,252 253,252 EXPENSES 2,431 4,150 4,150 SUBTOTAL 163,201 230,402 257,402 FULL TIME EQUIVALENTS 4 5 5 | 41 Conservation Commission Mission Statement The Conservation Commission is responsible for administration of the Cohasset Wetlands Regulations and Bylaws, Stormwater Regulations and Bylaws, and the Massachusetts Wetlands Protection Act. Through the administration and enforcement these regulations and bylaws, the Mission of the Conservation Commission is to promote proactive administration of environmental laws and policies, open space protection, wetland and water management and protection, promote environmental education, and to preservation of Cohasset's natural resources. The Commission works together with various departments in Town to ensure the regulations and bylaws are upheld. The Commission looks to improve the environmental integrity of the community while maintaining and improving the Town's current conservation areas The primary responsibility of the Conservation Commission is to administer the provisions of Chapter 131, Section 40 of the Massachusetts General Laws and to enforce the local and state Wetland and Stormwater Regulations and Bylaws, along with implementing management plans that go along with the regulations and bylaws. As a result the Commission develops programs to preserve natural resources while protecting wetlands and watershed areas of the Town. Programs and Services Conservation Commission • Administrating the Town's wetland regulations and bylaws of the Massachusetts Wetlands Protection Act • Reviewing Notices of Intent (NOI) and Stormwater Permit (SWP) applications • Reviewing and Determining the applicability of applications for altering wetlands and buffer zones • Holding hearings on all such applications • Promoting environmental and local resources education • Maintaining Cohasset's wetland, floodplain, and resource areas • Enforcing all applicable regulations and bylaws | 42 Planning Board Mission Statement The Planning Board’s mission is to: • Protect and enhance environmental, economic, and social quality of life in the community, for its residents and visitors alike • Promote long range planning for the Town’s physical development in coordination with other Town officials, committees and departments • Facilitate and implement appropriate planning initiatives and regulations aimed at preserving and protecting Cohasset • Ensure a solid foundation and optimistic direction for the future Programs and Services Planning Board • Studying the needs and potential of the Town and, when necessary, preparing plans to meet those needs and potentials. This includes writing, reviewing, updating, conducting public hearings, editing and publishing the Master Plan, and the official town map. • Drafting zoning amendments and recommendations for consideration at Town Meetings • Administration of the Subdivision Control Laws in accordance with Chapter 41, Section 81K - 81GG of the Massachusetts General Laws, including reviewing and conducting public hearings for all preliminary and definitive subdivision filings and Form A - Approval Not Required (ANR) Applications, and rendering decisions regarding those filings. • Reviewing, conducting public hearings and rendering decisions for Site Plan Review and Special Permit filings. • Reviewing, conducting public hearings and making recommendations to the Building Commissioner for all Large Home Review filings. • Other duties and responsibilities as imposed upon it by Chapter 40A and Sections 81A - J of Chapter 41 of the Massachusetts General Laws | 43 Zoning Board of Appeals Mission Statement It is the Mission of the Cohasset Zoning Board of Appeals to interpret and apply the Town’s Zoning Bylaws, and related Massachusetts statutes and appellate law, in a fair and responsible manner; to conduct hearings in a prompt and impartial manner; to treat all people before us with respect; and to conduct our business openly. Programs and Services Board of Appeals • Hear and decide appeals from the decision of the Building Inspector concerning the issuance or denial of building permits based on conformity with the zoning laws. • Hear and decide applications for special permits.as it is specifically authorized to grant, per the Bylaws • Authorize or deny variances from the Zoning Bylaws. • Participate in the Zoning Advisory Committee regarding drafting and presenting suggested Zoning Bylaw amendments • Act as the general permit granting authority on behalf of other Town boards and agencies for Affordable Housing projects under Chapter 40 B of Massachusetts General Laws; • Advise the Building Inspector in enforcement of this Board’s decisions, and ensuring compliance by the public with provisions of the Bylaws. • Fulfill other responsibilities and duties as required under Chapter 40 A of Massachusetts General Laws Zoning • Zoning regulates the use, construction, alteration and occupancy of privately owned buildings and land. Zoning’s purposes are to promote the health, safety, convenience and welfare of inhabitants of Cohasset by: o preventing the overcrowding of land; o providing adequate light and air; o conserving the value of land and buildings including the conservation of natural resources; o avoiding undue congestion in the streets; o protecting the outstanding natural beauty of the Town Giving due consideration to the geography and history of Cohasset and all other laws, statutes, Town bylaws and regulations of higher authority. The Zoning Board meets at least monthly throughout the year, and more often as required. The Board consists of 3 Regular (voting) members and 3 Associate members who may be designated to vote in the absence or recusal of any of the Regular members. Each member is appointed to a three-year term by the Board of Selectmen, without limit. The Chair and Vice- Chair are selected annually by Board members. | 44 PUBLIC SAFETY Police Mission Statement The mission of the Cohasset Police Department is to ensure a safe environment within the town, reduce crime, and to enhance the overall quality of life for visitors and citizens alike. We strive to meet these ends through community policing and by following a set of core values that reflect the finest nature of policing, which are: Excellence, Honor, Respect, Accountability, and Teamwork. Programs and Services Boards and Committees The Police department works with many departments, boards, and committees in an effort to fulfill its mission including, but not limited to: Board of Selectmen (Includes Liquor Licensing Board), Board of Health, Elder Affairs, School Committee, DPW, Advisory Committee, Capital Budget Committee, Alternative Energy Committee, Town Clerk, Harbor Department, Finance Department, Human Resources, Building Department / Permitting, Procurement, Water and Sewer Departments, Recreation Department, Facilities Department, Planning Board, Conservation Commission, Fire Department, Emergency Management, South Shore Regional Emergency Dispatch Center (SSRECC), Cohasset Safe Harbor – Substance Abuse Prior Year Major Accomplishments 1. Assisted South Shore Regional Emergency Communications Center (SSRECC) in securing more than $350K in grant funding to streamline computer aided dispatch (CAD) software and records management software (RMS). This will allow the public safety departments in Cohasset, Hingham, Hull, and Norwell, to share information and records, as well as dispatch emergency units on a single regional CAD platform. 2. Six department members trained as conflict resolution mediators 3. Sponsored citizens police academy 4. Joined South Shore Drug Task Force 5. Assisted School Department and School Committee in implementing action items from 2016 security analysis Police Department • School department security liaison • Town-wide employee ID program • Background investigations for various town departments and boards • Liquor and entertainment inspections for licensing board • Social media messaging for town departments • Provide liaison to Elder Affairs department • Monitor CCTV cameras at schools and other town sites • Emergency preparedness training • Safety courses for summer programs (Sandy Beach, Sailing Club, Recreation) • Child Safety Seat Technicians • Citizen Police Academy • CPR training for town employees and groups | 45 6. Issued more than 300-security ID’s to school and town employees 7. Updated firmware in each officer’s TASER and reviewed use of force policy for compliance 8. Fully built-out new IP-based police business telephone system in conjunction with IT Department 9. Renewed for 2nd year, regional animal control agreement between Hull, Norwell, and Cohasset 10.Successfully defended the town in a 2015 Federal Lawsuit for false arrest of a sex offender. Town and officers cleared of any wrongdoing – case dismissed by Federal Court 11.Successfully petitioned Massachusetts Civil Service Commission to change scoring methodology and weight of written exam vs assessment center for future promotions to sergeant and lieutenant 12.Systemized department record keeping in detective bureau (CID) 13.Trained personnel as CPR and 1st Responder instructors 14.Increased training and professional development for supervisors and line officers 15.Gained the ability to forensically analyze electronic devices in-house 16.Trained 2-command staff in event planning for municipal agencies 17.Ran full evacuation and safety drills with staff of each school in the district 18.Developed and executed Sandy Beach Fireworks safety plan on short notice 19.Signed on to the “One Mind” program through the International Association of Chief of Police (IACP). CPD pledged that all officers will be trained in Crisis Intervention within 3- years 20.Partnered with Norwell, Hingham, and Hull, Police to fund and share 2- “Recovery Coaches” that are available to assist officers and detectives with cases involving substance use disorder. Coaches are recovering addicts and guide victims/families through securing treatment Goals for Coming Year 1. Continue to invest in employee training and development 2. Work with unions to explore the feasibility of leaving civil service system 3. Fine tune new promotional system that better measures candidate’s knowledge, skills, and abilities. Move away from multiple choice tests for promotion 4. Systematize additional department record keeping functions 5. Take steps to investigate practicability of new public safety building 6. Fully train and equip a number of officers to conduct law enforcement functions on waterways when help is requested from USCG or Cohasset Harbormaster 7. Establish a clearly defined and sustainable relationship with at least one community mental health organization 8. Begin training all officers in crisis intervention training (CIT) in support of IACP “One Mind” program 9. Develop and implement a written policy addressing CPD response to persons affected by mental illness 10.Fill vacant command positions 11.Become more involved with South Shore Drug Task Force Changes in Budget, Goals and Objectives 1. Department’s administrative assistant moved from part time to fulltime. Position is shared with Cohasset FD 2. Appointed Records Access Officer (RAO) to conform with new public records laws | 46 3. CID records now entered into central computer system 4. Partnered with New England State Police Information Network (NESPIN). Key personnel now have access to pawn databases throughout New England 5. Prosecutor position has been reassigned from patrol to detective division 6. Updated cruiser paint scheme and design 7. Updated department shoulder patches/emblems 8. CPD issuing town employee ID’s and security keycards to town buildings FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED POLICE PERSONNEL 1,949,204 1,944,085 2,077,609 EXPENSES 445,081 465,871 462,410 PRIOR YEAR ENCUMBRANCES 7,406 - - SUBTOTAL 2,401,691 2,409,956 2,540,019 FULL TIME EQUIVALENTS 18.71 18 19 | 47 Fire Mission Statement The Cohasset Fire Department is committed to providing for the safety and welfare of the citizens of and visitors to the Town of Cohasset by providing a vast range of emergency services, fire safety education, fire prevention programming and emergency medical services. Programs and Services Boards and Committees The Fire department works with many departments, boards, and committees in an effort to fulfill its mission including, but not limited to: Police Department, Emergency Management, Harbor Department, Department of Public Works, Building Department / Permitting, Facilities Department, Finance Department, Recreation Department, South Shore Regional, Emergency Dispatch Center (SSRECC), Board of Health, Elder Affairs, Human Resources, Town Clerk, Procurement, Water Department, Sewer Department, Board of Selectmen, Advisory Committee, Capital Budget Committee, Alternative Energy Committee, Planning Board, Conservation Commission, and School Committee. Prior Year Major Accomplishments 1. Replaced all the Self Contained Breathing Apparatus (SCBA) used by the Cohasset Fire Department. The new SCBA units were purchased through the Federal Emergency Management Agency (FEMA) Assistance to Firefighters Grant Program. The towns of Hull, Hingham, Norwell and Scituate also participated in this Grant and have replaced the majority of SCBA units in their Departments. The standardization of equipment used by all of our mutual aid partners is one of our primary goals as we work toward greater interoperability in our region. The FEMA Grant Award was approximately $990,000 2. In conjunction with the South Shore Regional Emergency Communications Center (SSRECC) and the communities of Hingham, Hull and Norwell, a Grant was secured through the State 911 Department Development Grant Program to replace the Computer Aided Dispatch (CAD) and Records Management System (RMS) for the Fire Department. The replacement of the CAD/RMS Systems used by of our regional partners The Cohasset Fire Department provides the following services 24 hours a day, seven days a week: • Fire Prevention • Fire Suppression • Emergency Medical Services • Rescue Services • Management/Mitigation of the effects of man-made disasters • Management/Mitigation of the effects of natural disasters • Public Fire Education • Student Awareness of Fire Education (S.A.F.E) Programming • Senior Awareness of Fire Education (Senior Safe) Programming • Fire Code Inspections and Fire Code Enforcem ent • Building Plan Review – Commercial and Residential The Cohasset Emergency Medical Service is staffed by firefighters who are all certified at the Emergency Medical Technician – Basic and Emergency Medical Technician - Paramedic levels. These Firefighter/EMTs provide the following services which are available 24 hours a day seven days a week: • Advanced Life Support (ALS) • Advanced medical care • Advanced cardiac care | 48 allows us all to share information in real time while responding to emergencies in all the mutual aid communities. The standardization of the software and the ability to share critical information is a primary goal as we work toward greater interoperability with our neighboring communities. The State 911 Development Grant Award was in excess of $300,000. 3. In partnership with the Boston Fire Department all Department members received Live Fire Training at the Boston Fire, Moon Island Training Facility. A special thank you to Boston Fire Commissioner Joseph Finn and the staff of the Boston Fire Academy for providing this essential training to the members of the Cohasset Fire Department at no cost to the Town of Cohasset. 4. Through a continuing partnership with South Shore Hospital all members attended pre- hospital emergency medical training which included lectures as well as training in the South Shore Hospital Mobile EMS Training Lab. A special thank you to South Shore Hospital EMS and the office of the EMS Medical Director, William Tollefsen, MD. 5. Secured funding, through a generous donation by the Social Service League of Cohasset, for the expansion of the Cohasset Cares Program. Cohasset Cares is a program that has been funded through the Massachusetts Department of Fire Services Senior Awareness of Fire Education Program (Senior S.A.F.E.). Cohasset Cares is a program specifically designed to keep our seniors as safe as possible within the comfort of their own homes. Since the program’s inception in October of 2014, this collaborative effort between the Fire Department, Elder Affairs, and the Health Department has provided fire prevention education, assistance and fire hazard/fall prevention mitigation to the seniors of our community. With the funding provided by the Social Service League of Cohasset, Cohasset Cares will now be able to greatly enhance the services that are being provided to the seniors of Cohasset as we continue to work toward keeping them safe at home. 6. Cohasset Firefighters trained as Student Awareness of Fire Education (S.A.F.E.) Educators visited the Deer Hill School and the Joseph Osgood School as well as numerous Nursery Schools and Day Care facilities where they provided fire safety programming. S.A.F.E. Programs were also presented to the Boy Scouts and Girl Scouts of Cohasset. The S.A.F.E. Program was also extended, in conjunction with the Recreation Department, to the summer recreation program. 7. During 2017 S.A.F.E. Programing was provided to over 800 school age children in Cohasset 8. An Open House was held at Fire Headquarters on Elm Street during “Fire Prevention Week”. Fire Safety Materials were provided and Fire Safety Demonstrations were conducted during the Open House. Thank you to Massachusetts Department of Fire Services as well as Papa Gino’s, Mary Lou’s, and Shaw’s Supermarket for their continuing generous support of the Annual Fire Safety Open House 9. During 2017 the Cohasset Fire Department Fire Prevention Division completed 540 fire prevention code related inspections and issued 352 fire prevention related permits 10. Through a continuing partnership with the Cohasset Recreation Department and the Cohasset Sailing Club, Cohasset Firefighters certified as CPR/First Aid Trainers provided CPR and basic first aid training to the Counselors of their summer programs Goals for Coming Year 1. Continue to invest in employee training and development and to collaborate with the Cohasset Human Resources Department to expand training programs 2. Continue to develop information sharing systems with surrounding fire and police departments via the new Computer Aided Dispatch / Records Management System | 49 3. Continue to work with all Town Departments and Committees to investigate the feasibility of a new public safety building 4. Continue to work with the Massachusetts Department of Transportation (Mass DOT) on the development of a Regional Public Safety Communications Radio Tower Site. The proposed site is at the Mass DOT property on Crocker Lane. The site is adjacent to the Regional Public Safety Radio Site which is located at the Town of Cohasset Water Tower on Scituate Hill 5. Work with Federal, State and Regional partners to obtain grant funding when available 6. Partner with the Boston Fire Department and the instructors at the Boston Fire Training Academy to provide essential training to members of the Cohasset Fire Department 7. Continue to partner with South Shore Hospital EMS to ensure that all Cohasset Fire Department Firefighter Paramedics receive ongoing EMS training 8. Transition Cohasset Fire department fire prevention records, which include pre-fire plans, inspection reports, and issued permits, from hard copies to our new computer based records management system 9. Continue to partner with the Cohasset Building Department in applying and enforcing the building and fire codes that went into effect in 2018. Educate the business owners, realtors, contractors and the citizens of Cohasset about the updated fire prevention codes and regulations 10.Expand the Senior S.A.F.E. Program (Cohasset Cares) with a focus on monitoring the needs of our seniors that have already been served, and to identify additional seniors that may benefit from Senior S.A.F.E. Programs. With the additional funding provided by the Social Service League of Cohasset, expand the Cohasset Cares Program to include additional programs so that seniors in our community may continue to remain at home safeguarded against as many avoidable risks and hazards as possible. 11.Continue to work with Cohasset Public Schools as well as the Pre-Kindergarten providers in Cohasset to expand the number of students that receive fire safety education through the S.A.F.E. Program 12.Work with Cohasset Senior High School to deliver S.A.F.E. programming to Grade 12 students. The main focus of this programming will be to provide information to both off- campus and on-campus college students so that they understand their fire risks and how preventative actions can save their lives 13.Coordinate with the Recreation Department to develop a Junior Firefighter Program 14.Coordinate with local Boy and Girl Scout Troops to deliver expanded S.A.F.E. programming 15.Partner with the South Shore Arts Center to provide fire safety education and demonstrations during the 63rd Annual Arts Festival on Cohasset Common 16.In partnership with the MA Department of Fire Services participate in the 2018 Fire Prevention Week programming FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED FIRE PERSONNEL 2,147,554 2,224,820 2,252,541 EXPENSES 173,466 202,380 210,310 PRIOR YEAR ENCUMBRANCES 875 - - SUBTOTAL 2,321,895 2,427,200 2,462,851 FULL TIME EQUIVALENTS 24 24 24 | 50 Building Mission Statement The Building Department’s primary mission is to provide for the safety of the residents and visitors to the town in the buildings where they live, work, or visit by administering and enforcing the Massachusetts State Building Code. Further, the Department administers the Cohasset Zoning By-laws to protect the natural beauty of Cohasset, ensure harmony within the community and to protect the property rights of all. Programs and Services Boards and Commissions • Zoning Board or Appeals • Planning Board • Board of Health • Conservation Commission • Fire Department • Sewer Commission • Water Department • Several other boards on a more limited basis • Design Review Board • Zoning Advisory Committee Prior Year Major Accomplishments As part of the recently created Permitting and Inspections Division, the Building Department has continued to integrate well with the Board of Health, Sewer Commission, Conservation Commission, Water Department and Fire Departments to assist property owners and their agents in navigating their way through the permitting process. Our goal is to help them to the greatest extent possible while protecting the interests of the Town. To learn more see the Permits and Inspections section of this budget document. Building Department • Meets with property owners, architects, engineers, builders, etc. to review plans for proposed construction • Refers proposals to other Boards, Commissions and Departments for their input and approvals • Issues Building, Plumbing and Electrical permits for approved projects • Inspects projects during critical phase of construction • Issues final inspections or Certificates of Occupancy for completed projects • Enforces the Zoning Bylaw for issues related and unrelated to construction • Responds to questions and complaints from concerned individuals • Attends meetings of other Boards to provide information and assistance • Responds to emergency incidents | 51 Goals for Coming Year Along with other permitting department, the Building Department has selected a software package for electronic permitting (e-permitting). The goal for the coming year is to implement e-permitting in the Building Department and the Board of Health. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED BUILDING COMMISSIONER PERSONNEL 105,690 112,065 112,065 EXPENSES 33,567 39,600 38,100 SUBTOTAL 139,257 151,665 150,165 FULL TIME EQUIVALENTS 1 1 1 | 52 Cohasset Emergency Management (CEMA) Mission Statement The Cohasset Emergency Management Agency (CEMA) office is a town agency responsible for coordinating federal, state, local, volunteer, and private resources during emergency and disaster events in Cohasset. Emergency Management is dedicated to protecting the community by coordinating and integrating all activities necessary to build, sustain, and improve the capability to mitigate, prepare, and respond to local emergency and disaster situations. We provide leadership to help develop plans for effective response to all hazards, disasters, or threats. CEM provides training for the Community Emergency Response Team (CERT); provides information to Cohasset citizens; and assists individuals, families, businesses, and the community as a whole to mitigate against, prepare for, respond to, and recover from emergencies both natural and manmade. Programs and Services Prior Year Major Accomplishments 1. We continue to train and equip our 40 member CERT Team, under the leadership of Rich Hynes 2. Met regularly as part of the MEMA regional shelter group 3. CEMA selected as one of the twelve communities in Mass to have Mass Maritime Academy create o Table Top exercise and drill 4. Met for the first time since 1953 with the Music Circus to upgrade an emergency response plan for their venue 5. Took part in an evacuation drill at Sunrise Assisted Living Community 6. Attended MEMA meetings regarding electronic updates to various State response databases WEB EOC, CEMP, and others 7. Implemented upgrades of the Emergency Notification System (CodeRed) Cohasset Emergency Management • Maintain and update the town's Comprehensive Emergency Management Plan, Hazards Vulnerability Analysis and Hazard Mitigation Plan. • Activate and staff the county Emergency Operations Center. • Work with other county, city, town, departments, agencies and task force elements to develop a variety of related emergency plans, procedures and guidelines. • Coordinate for local state and federal government response and recovery operations during a major emergency or disaster. • Monitor severe weather watches, warnings and special statements issued by the National Weather Service and provide this information to other local government departments including public safety and public works agencies. • Provide assistance and support to all public safety agencies, government entities and private sector partners through planning, training and exercising. • Coordinate resource support to tactical response units and on scene Incident Commanders. • Provide Continuity of Operations Planning information and guidance. • Train and maintain CERT Team. | 53 8. Completed a MEMA initial damage Assessment for the October 29 wind event 9. Applied for MEMA EMPG grant 10.Held meetings with Town Hall Departments to continue to develop our Continuance of Operations Plan (COOP) 11.Upgraded our EOC technology as part of the town wide upgrades 12.Prepositioned our incident support trailer as required by voting emergency relocation plan 13.Attend MEMA state conference 14.CERT Manager Hynes took part in the State Mass Causality Exercise, at Joint base Cape Cod Goals for Coming Year 1. We plan to continue to train and expand our CERT team, and coordinate with surrounding Towns to enhance everyone's capabilities 2. We are developing a training program for volunteers that is Cohasset specific, and we hope to use the large Senior Center volunteer roster as a resource 3. Continue being involved in the MEMA Regional Shelter group 4. Again, in 2018 we will have Cadet from Mass Maritime Academy (MMA) working with us on a number of projects 5. Our Table Top exercise that is being developed at MMA will take place 6. Finalize the Continuance of Operations Plan (COOP) 7. Work to get back up power options in place for the Public Safety Building, the RTF and a private fuel point 8. Continue to monitor the cell tower upgrades in town, in an effort to see if we can improve our ability to reach residents with cell phones in poor service areas of town 9. And, of course, be on standby to respond to whatever emergency may occur in Town or surrounding towns if asked FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED EMERGENCY MANAGEMENT PERSONNEL 3,000 3,000 3,500 EXPENSES 26,534 35,000 35,000 PRIOR YEAR ENCUMBRANCES 2,571 - - SUBTOTAL 32,105 38,000 38,500 | 54 Harbormaster Description The function of the Harbormaster's Office is to ensure the safety of the beaching and boating public, and to be available at all times to assist the boating community in any need they may have. The Harbormaster also assists neighboring harbormasters and federal and local law enforcement agencies with search and rescue cases Programs and Services Prior Year Major Accomplishments 1. This past winter the two year Army Corps of Engineers dredging project of the main channel and the creek channel was completed. Goals for Coming Year 1. The goal of the department is to provide a safe environment for people to enjoy their boats, the beaches and waterways. 2. Continue working on infrastructure projects for the facilities around the harbor. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED HARBORMASTER PERSONNEL 96,521 97,214 97,214 EXPENSES 18,696 19,300 20,400 SUBTOTAL 115,217 116,514 117,614 FULL TIME EQUIVALENTS 1 1 1 Harbormaster Responsibilities • Enforce state and federal boating laws and regulations • Enforces the Cohasset Harbor rules, regulations, and bylaws • Ensure safe and orderly use of the Harbor, Little Harbor, and the Gulf River • Maintaining and repairing Cohasset's docks, gangways, and walkways • Maintaining Harbormaster boats and Harbor Department Buildings • Provide pump out services for boat waste systems • Responds to boaters in need of assistance or in distress • Supervise the operations of Cohasset Harbor including mooring management and permitting | 55 DEPARTMENT OF PUBLIC WORKS Mission Statement The Department of Public Works is dedicated to providing professional and cost effective services to the citizens of the Town of Cohasset and other departments, boards and commissions. Our efforts are focused on providing a high level of expertise for planning, design and quality construction management of all public works improvement projects while maintaining budgets and timelines; to collaboratively manage the Town’s public works infrastructure with staff and elected and appointed Town leadership; and to oversee the operations of the: Town’s water and sewer departments; its tree, park, highway and cemetery divisions; its facilities department; and its procurement and purchasing division. Programs and Services The Department of Public Works is comprised of four divisions, each under the direct supervision of a division supervisor with overall direction from the DPW Director. Services provided by each department are engineering and project management, maintenance and operation of horizontal infrastructure (DPW), maintenance and operation of vertical infrastructure (Facilities), and procurement/contract management. | 56 Department of Public Works - Field Operations Mission Statement The Department of Public Works (DPW) Field Operations is a town service organization with an overall Mission to maintain and preserve the Town of Cohasset's property, parks, and open space, along with the public way infrastructure which includes streets, sidewalks, signs, and catch basins. The DPW works together with various departments of the Town Government to accomplish these maintenance goals. Aside from Town wide maintenance and preservation, the DPW is responsible for operating the Recycling Transfer Station in which they explore cost effective and environmentally responsible ways of recycling and disposal of refuse. The DPW helps protects the environment and maintains public health and safety standards through the management of road conditions and other variables that seasonal changes bring. Programs and Services Prior Year Major Accomplishments 1. Paving and reconstruction of 1.7 miles of Jerusalem Road from Rust way to Route 228 2. Completion of Jerusalem Road causeway improvement and grant closeout Goals for Coming Year 1. Line striping Town wide by Memorial Day 2. Continued safety and skill training for staff 3. Repair drainage and repave Border Street 4. Obtain capital funding and bid for new salt shed FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED DEPT OF PUBLIC WORKS PERSONNEL 944,725 965,848 1,060,077 EXPENSES 227,158 271,700 266,200 PRIOR YEAR ENCUMBRANCES 125,251 - - SUBTOTAL 1,297,134 1,237,548 1,326,277 FULL TIME EQUIVALENTS 15 15 15 Responsibilities • Construction projects • Maintenance and repair of streets, sidewalks, and storm drainage systems • Maintenance and repair of vehicles and service equipment • Maintenance of parks, athletic fields, cemeteries, and off-street parking facilities • Sales and records of cemetery lots • Snow removal and ice control • Maintenance and/or removal of town owned trees • Filling and maintenance of the fuel tank | 57 Department of Public Works - Facilities Mission Statement The Town of Cohasset Facilities Department is a Town Services Department. The Department’s Mission is to ensure that all Town Buildings are maintained to the highest standard possible. The Department’s Main Office is located at Cohasset Town Hall. The Department is staffed by a Manager, four fulltime and three part time employees. Programs and Services General Duties • Meeting Set-ups: Annual & Special Town Meetings, Board & Committee Meetings at Town Hall & Willcutt Commons • Election Set-ups: Town, State Primary’s & Regular Elections • Custodial duties & trash pickup at Town Buildings • Completing Work Orders • Field requests from the Boards, Committee’s, Town Manager, Superintendent of Schools and Town Department Heads for projects. • Responding to ad hoc town employee requests • Meeting & working with vendors, contractors, service technicians, inspectors Department Heads, School Administration, Officials as required • Overseeing the inspections process for Federal, State, safety code and regulation compliance for all Town Buildings • Daily monitoring of all HVAC Building Automated Control Systems. (BAC Controls) • Updating of the Town’s IPM Plan (State) • Snow and ice removal on stairways, sidewalks, and egress exits of Town Buildings Facilities • Cohasset Middle High School / 143 Pond St. • Deer Hill Elementary School / 208 Sohier St. • Joseph Osgood School / 210 Sohier St. • DPW Buildings / 91 Cedar St. • Cohasset Fire Dept. / 44 Elm St. • Cohasset Police Station / 62 Elm St. • Paul Pratt Library / 39 Ripley Road • Cohasset Teen Center / 55R South main St. • Cohasset Town Hall / 41 Highland Ave. • Cohasset Recreation Offices / 100 Sohier St. • Willcutt Commons Building / 91 Sohier St. Conduct appropriate Annual or Bi- annual inspections, testing, maintenance, cleaning, filter/belt replacement, lubrication, reporting and recordkeeping of the following in all applicable facilities: • Boiler Inspections / State, insurance Carrier • Boiler Inspections & Service (contractor) • Hot water corrosion control (Monthly / Heating Season) • Co2 Detector (Boiler Rooms) • AED Cabinets • Fire Extinguishers • Fire Alarms Systems • Fire Pumps • Kitchen’s Exhaust Fan Systems • Standby Generators • MS – HS Kitchen Grease Traps • MS – HS Potable Water Booster System • Elevators • P M Roof inspections & leak repairs • Emergency Lighting Systems • Vehicle Exhaust Recovery systems (DPW & FD) • Electrical • HVAC computer & mechanical systems • Heating • Lighting • Plumbing • Security systems • Playgrounds | 58 Boards and Committees The Facilities Department in the course of performing its mission is required to occasionally interact and work with other Town entities including: The Capital Budget Committee, Advisory Board, School Committee as well as the Town Manager’s Office and the Superintendent’s Office. In addition to working with boards and committees the Facilities Department has to frequently work hand and hand with all of the Towns Departments while performing its mission. Prior Year Major Accomplishments 1. The Facilities Department responded to and completed over 700 work orders that were generated by the Facilities Manager or Department Heads in 2017. 2. In 2017 the school Superintendent requested that Facilities come up with a plan to try and slow down vehicle traffic using the Alumni Field driveway at the MS - HS. The Facilities Director drew up a plan that was approved and the DPW installed new signs as well as painting SLOW lettering onto the driveway. 3. Coordinated the installation of security bollards at the entrance to the MS – HS GYM lobby as well as the Joseph Osgood School main entrance. This work was done to stop someone from driving a vehicle into the building. 4. Expanded our town buildings painting punch list. 5. Working with a Contractor we were able to install a new Handicapped ramp at the Joseph Osgood School. 6. Worked on replacing worn out VCT floor tiles in different spaces in various Town Buildings. 7. Working with our flooring contractor new rubberized epoxy floor coating was applied in some of the entrance spaces at the Deer Hill School as part of an ongoing flooring upgrade project. 8. The Facilities Department using funding provided by the Capital Budget Committee and Town Meeting approval were able to complete many security enhancement upgrades in the school buildings. Some need not be revealed. 9. Two major upgrades completed were to the main entrances at the Deer Hill School and the Joseph Osgood School. The spaces were made more secure in regards to monitoring visitors to the buildings as well as visitor access. 10.Portable temporary security gates were purchased and are available to staff at school buildings to block off access to the public in hallways during events for spaces not being included in that event. 11.Working with the school administration we were able to replace the worn out and unsafe stair case at the MS – HS kitchen loading dock. 12.At the request of the Police Chief and working with a contractor the department was able to complete an upgrade to the Police Station’s roof gutter system. The issue was a safety concern because the old setup was dumping water creating an ice buildup in an area used by officers for heavy foot traffic. 13.In 2017 the school department completed a major renovation at the MS – HS library. Facilities staff members assisted with some of the work completed. 14.Working with a masonry contractor Facilities Staff members were able to eliminate a chronic rain water penetration issue at the MS – HS Library. The entire outside northeast facing brick wall was repointed and sealed. | 59 15.During a severe northeast rain storm featuring high winds that occurred in the fall of 2017 the cupola at the rear roof section of Town Hall lost its roof. Working with our roofing contractor a temporary patch was fabricated and installed. 16.Working our roofing contractor the town buildings annual roof inspections and roof leaks repair work was completed. 17.Working with our electrical contractor we were able to resolve many electrical issues in all Town Buildings in 2017. 18.Working with our plumbing contractor we were able to repair many plumbing issues in all Town Buildings in 2017. 19.Working with our HVAC contractor we were able to resolve many heat and air conditioning issues in all Town Buildings. We were able to replace worn out a/c units in all town buildings. 20.Facilities Staff members completed service of all HVAC units in all Town Buildings in 2017. This service cycle is done every 6 months. The work includes replacing air filters, fan belts, lubricating and inspecting each unit. Bi-annual service was also performed by the Staff on the Buildings exhaust fans. 21.Working with our BAC controls contractors for all school buildings we were able to complete many upgrades and improvements to the buildings systems. Goals for Coming Year 1. Projects within annual Facilities budget • Usual annual punch lists of summer time work needed at the school buildings. • As many unexpected requests that should occur generated by Department Heads and Officials throughout the year, Again that annual budget funding will support. • Safety and work related training. 2. Projects requiring Capital Budget Committee and Town Meeting funding. • Hire an Assistant Facilities Manager • Purchase an additional Facilities Dept. Service vehicle. (4X4 Utility Body Pickup). • Replace MS – HS buildings potable hot water system. • Replace worn out roof sections at the Public Safety building. • Work on repairing worn out sidewalks and stairways at the MS – HS (grounds). FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED FACILITIES MANAGEMENT PERSONNEL 382,106 411,226 426,861 EXPENSES 410,309 527,800 534,900 SUBTOTAL 792,415 939,026 961,761 FULL TIME EQUIVALENTS 5.65 5.65 5.65 | 60 Department of Public Works - Recycling Transfer Facility Mission Statement To operate Town’s solid waste and recycling operations in a professional and courteous manner for the Cohasset community. We are committed to the sustainable future and improving the economic and environmental well-being of the community. Programs and Services Prior Year Major Accomplishments 1. Hiring of a new RTF foreman and restructuring of staff support 2. Updating and Revision of the RTF Rules and Re 3. Partnered with South Shore Recycling Cooperative to hold educational onsite training and awareness campaign for the public regarding recycling policies Goals for the Coming Year 1. Install camera system at RTF to assist in enforcement and security 2. Bid new solid waste disposal contract (currently Covanta expires 7/2018) 3. Continue improvement and negotiation of new contracts with RTF recycling disposal vendors to maximize best value for Town 4. Further increase awareness and increase enforcement the proper recycling of paper, cardboard, bottles and containers in municipal trash program by residents FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED TRANSFER STATION PERSONNEL 178,044 193,048 192,224 EXPENSES 276,391 281,350 282,850 PRIOR YEAR ENCUMBRANCES 16,906 - - SUBTOTAL 471,341 474,398 475,074 FULL TIME EQUIVALENTS 3 3 3 • Manage the Town’s RTF • Manage the safe shipment of the Town’s solid waste to a disposal facility • Ensure that all recyclable materials are properly collected and delivered to the appropriate facilities • Manage the Town’s leaf and yard waste composting program | 61 Department of Public Works - Engineering The Town of Cohasset’s Engineering Division assists in the design of infrastructure improvements, including: Town building improvements, sanitary sewer design, water mains, storm drain system improvements, roadways, intersections and bridge designs. Technical support is provided to all town departments, commissions and boards upon request. The Engineering Division provides updates on all town roadway improvements. They are instrumental in creating all GIS maps, databases and data layers containing town wide infrastructure. Records kept include water and sewer pipes, grinder pumps, Nitrogen sensitive areas, hydrants, railways, lighting, etc. Boards and Committees The Department provides technical support for all Town Board and Committees, including Town Meeting, and provides regular support to the Water Commissioners, the Sewer Commissioners, the Capital Budget Committee, and the Alternative Energy Committee. Prior Year Major Accomplishments 1. Coordinated completion of Solar Array development on Town landfill 2. Obtained property easements and facilitated MassDOT contract repair of Cunningham Bridge 3. Completed permitting for Harbor Tide gate emergency overflow valve 4. Completed School facility building envelope Energy Conservation Measures audit 5. Completion of environmental permitting for treats pond outlet extension pipe Goals for Coming Year 1. Assist in the process of refurbishing Town Hall 2. Paving of 2.5 miles of roadway 3. Assist Mass DOT in the successful implementation of the Cunningham Bridge Project 4. Continued grant program facility energy improvements under Green Communities 5. Continue drainage improvements along Cohasset Harbor and coastline 6. Completion of easements and construction of the treats pond outlet pipe 7. Initiate conversion of streetlights to LED 8. Complete construction of the Southern Water Main loop – Ledgewood Drive to Lincoln Lane | 62 Department of Public Works - Procurement and Contracts Mission Statement The mission of the Procurement Department is to promote fair and open competition, procure quality goods and services, and achieve the highest standard of professional public procurement through integrity, trust, and ethical practices. Prior Year Major Accomplishments 1. Bidding for Harbor Master Plan 2. Bidding of Southern water main loop 3. Contracted Management of Operation and Maintenance of Street Lights 4. Contracted for plumbing, electrical, HVAC and boiler service contracts 5. Support for all Town Department procurements of goods and services Goals for Coming Year The Procurement and Contract Management Department will continue its goals of encouraging fair completion, obtaining the best value, ensuring the ongoing accountability of public funds, educating those who are involved in the public procurement process, and exploring new ways to help the Town save | 63 HUMAN SERVICES Public Health Mission Statement The Health Department and the Board of Health are dedicated to keeping the Town of Cohasset a healthy and environmentally safe place to live. Our goal is the promotion and protection of the public health within the community. We strive to do this through the development and implementation of programs that seek to prevent the outbreak of infectious diseases and by controlling environmental health hazards. Through enforcement of State statutes and regulations regarding on-site septic disposal systems, restaurant sanitation, tobacco control, beach water quality testing, protect public and private drinking water, housing sanitation. We promote sanitary living conditions for all our residents and strive to protect the environment from damage and pollution. Public Health Nurse The Health Department is composed of a Public Health Nurse that conducts health screenings for all residents, flu clinics, drug abuse prevention education, communicable disease surveillance, Melanoma education and recreational camp inspections. Our nurse also conducts home visits to perform health assessments and make referrals as needed. Board of Health The Board of Health is a three member elected Board serving residents through the enforcement of health codes and the promotion of good public health practices. The Board is heavily involved in the regulatory and permitting process for a number of environmental and public health issues as well as major development projects. The mission of the Cohasset Board of Health is to provide the residents of the Town of Cohasset with comprehensive, high-quality Public Health Services through the evaluation (and developing new) town policies, procedures, regulations, statements, and programs in the areas of Public Health Nursing, Environmental Health, and other Public Health disciplines. Programs and Services Enforcement • Septic Inspections • Septic Plan Review • Soil Testing • Restaurant inspection • Housing inspections • Tanning Salons • Semi Public Swimming Pools • Animal Permits • Monitoring capped landfills • Hotel inspection • Well regulations • Enforcement of State and local • Smoking regulations • Nuisance complaints • Recreational Camp Inspections Public Health • Flu vaccinations • Flu planning and tracking • Seasonal flu clinic • Home Health visits • Investigation and follow-up of communicable diseases. • Implementation of Cohasset CARES • Town employee wellness committee involvement • Investigate and report on all foodborne illnesses • Melanoma education • Bladder cancer screening of active and retired firefighters • Walk in clinic hours for a variety of nursing services • Coordination of annual Health & Rec Fair Emergency Preparation • Emergency Dispensing Site Plans • Food recalls – education of restaurant owners regarding food supply • Coordinate and assist food establishments during power outages • Assist sewer department with sewer main breaks • Emergency Shelter Planning • Isolation and Quarantine protocols | 64 Prior Year Major Accomplishments 1. Reviewed plans, observed construction and actively inspect new food service establishments throughout the town. 2. Conducted outreach and educational efforts to promote awareness of seasonal flu and information on how to reduce transmission. Vaccinated the public with a series of flu clinics. 3. Collaborate with the Safe Harbor Cohasset Coalition to foster a strong and inclusive community that encourages healthy, educated and responsible choices about drug and alcohol use. 4. Continue to prepare for the Emergency Dispensing Site, including new ways to distribute medications quickly and effectively. Goals for Coming Year 1. Create GIS mapping for private wells and septic systems. Continue to monitor location, age, contamination of environment with this data. 2. Create GIS forms for food inspections. Provide data online for monitoring of permits and certification related to our food establishments. 3. Develop an Opioid toolkit for the community. Plans include the formation of a substance abuse task force that partners with police department on overdoses 4. Continue to collaborate with Safe Harbor Cohasset Coalition to prevent drug and alcohol abuse. 5. Permit all livestock required in our Animal Regulations and collaborate with the Animal Control Officer. 6. Continue to assist new and existing home owners and business establishments with compliance of codes including food, septic, well and tobacco regulations. 7. Create a public health education campaign on tick borne illness and disease. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED BOARD OF HEALTH PERSONNEL 134,440 142,105 142,105 EXPENSES 12,380 19,300 20,900 PRIOR YEAR ENCUMBRANCES 364 - - SUBTOTAL 147,184 161,405 163,005 FULL TIME EQUIVALENTS 1.86 1.86 1.86 | 65 Elder Affairs Mission Statement The mission of Cohasset Elder Affairs is to link people with resources; to provide services, programs and activities to all spectrums of the senior population and their families regardless of income, socioeconomic background, or ability to pay; to help older adults remain active, connected to, and thriving in the Cohasset community. Programs and Services Outreach • Holiday Baskets • Cohasset Cares • Case Management • General Advocacy • Client Finding • Caregiver Support Group • Legal Assistance • Financial Management • Fuel assistance • Mental Health Assistance • S.N.A.P. Assistance • Medicare / Medicaid Assistance / Applications / Planning • 60 Elm Street Outreach • 3C list Wellness Calls/Follow- Ups Community Education • Health Benefits Counseling – S.H.I.N.E. – Serving Health Information Needs of Elders • Social Security Support • Transitioning / Downsizing programs • Presentations: - AAA Driving - Alzheimer’s - Caregivers’ - Home Care Services - Easter Box Deliveries - TED Talks - Transitions/Downsizing - Financial Foundations - Genealogy - Lunch/Learn w/ Consumer Affairs - Memoir Writing - Reverse Mortgage Seminar - Senior Scams - Social Security Advice - Summer Floral Design Workshop - Botanical Painting/Drawing - Joan Meschino Listening Tour Cultural Programs • Author Series • Boston Symphony Orchestra Field Trips • Exploring Your Legacy • French Conversation Group • Festival of Lights • Estate Tours • Memorial Day Program • Cultural Speaker Events • Book Club • Great Discussions • Garden Club Projects • Cucina Regionale in Italiano • Music of the Iron Rails • Armchair Travels • Travelogue • Conversational Italian II • Ernest Hemingway Live! • Meet Julia Child • I Hate Music (Leonard Bernstein) • Broad Cove Chorale • Isabella Stewart Gardner Museum • Commonwealth Museum • Lasallette Festival of Lights Fitness / Exercise 10-15 programs from beginner to advanced in: • Yoga • Strength • Stretch • Balance • Qigong • Tiachi Recreation/Socialization • Bridge • Mahjong • Genealogy Workshops • Seasonal Luncheons / Parties / Celebrations – 90th Birthday Parties / Father’s Day / Mother’s Day / St. Valentine’s Day / Super Bowl / End of Summer Barbecue • Knitting • Quilting • Teas • Cohasset Café • Atlantica Christmas luncheon • Harvest Moon Dance • Scallop Festival • Thanksgiving Luncheon • Veterans’ Breakfast • Dancing: Line, Ballroom, Swing • Karaoke • Oktoberfest Healthy Living • Body Meridians • Breathe Deeply • Matter of Balance • Massage – Therapeutic • Maintain Your Brain • Oral Health • Reiki • Yoga/Acupuncture Workshop • Dental Hygienist • Hearing Health Screenings | 66 Boards and Committees • Public Health Nurse’s Office at Willcutt Commons – flu shots, walk-in nurse’s office hours – 2 times a week. • Veteran’s Services Officer – assistance with Veteran’s needs (Seniors, 60+), office hours on-site at Willcutt Commons 3 times each week • Cohasset Housing Authority – 60 Elm Street • Cohasset Cultural Council – awarding of funds for and support of programming at Willcutt Commons • Elder Affairs Board of Directors – advisory and support for Cohasset Elder Affairs • Friends of Cohasset Elder Affairs – non-profit fundraising ‘arm’ of Cohasset Elder Affairs; liaison to Cohasset Elder Affairs Board of Directors • The Elder Affairs Department works with multiple boards, and departments to ensure its safe and efficient operation including but not limited to: Board of Health, Facilities, Fire, Police, Emergency Management, Information Technology, Finance ,Town Clerk, Treasurer, Human Resources, Town Manager’s Office, Board of Selectmen, Alternative Energy Committee, Cohasset Community Television Corporation (Cohasset 143 TV), Cable Advisory Board, Procurement Prior Year Major Accomplishments 1. Expanded Cohasset Cares – organizational changes to serve additional requests/clients in a timely manner 2. Added TED Talks program 3. Added 2 exercise programs- 2nd classes – Strength and Balance; Seniors Got Strength 4. Changed mailer companies – due to retirement 5. Purchased Shed – to house seasonal equipment and furnishings 6. VISTA – changed from black/white to color monthly newsletter 7. Added a desktop computer for seniors’ use 8. Hosted Veterans’ Breakfast; Selectmen Candidates Forum 9. Reduced reliance on vans with introduction of electric vehicle 10.Added additional cultural programs, including: Armchair Travels; special presentations, including: Broad Cove Chorale, ‘Ernest Hemingway Live!’, ‘Meet Julia Child’, ’I Hate Music’ Leonard Bernstein 11.Added Trips: Isabella Stewart Gardiner Museum, Commonwealth Museum 12.Added meditation group; Mahjong; Bridge group; Body Meridian sessions; Bereavement Support series; Student Tutors; Kindergarten Read-a-Thon; Grandkids Movie Matinee; Dementia reality program; a 100 year old birthday celebration 13.Introduced POW Chair/ Mural 14.Hosted Dementia Virtual Reality program; a 100 year old birthday celebration Home/Yard Assistance • Small Home Repair program • ‘Make a Difference Day’ • Food Pantry Deliveries • Friendly Visitors • Snow Shoveling • SSL Home Deliveries Nutrition • Food Pantry - home delivery - client transport • Congregate Meals • Meals on Wheels – home delivered meals • Luncheons Intergenerational • 60 Elm Intergenerational • Deer Hill • Grandkids Movie Matinee • Osgood School Kindergarten Reading-a-Thon • South Shore Vo-Tech • Student Tutors | 67 Goals for Coming Year Expand/improve services to seniors and their families to continue achieving the Elder Affairs’ Mission Statement. 1. Strengthen program diversity a. Increase number of men attending activities/programs at Willcutt Commons by 10% b. Reduce the share of members visiting the Center only once per year by 20% c. Increase overall usage of transport system by 10%, including FISH and the Electric vehicle 2. Strengthen use of volunteers a. Identify specific areas of need for volunteer use b. Actively recruit volunteers for identified areas (increase by 10%) c. Produce comprehensive training booklet for all volunteers d. Schedule periodic training for all volunteers (2/yr.) e. Search creatively for ways to continually recognize CEA volunteers (4/yr.) 3. Expand nutritional services to provide healthy meals in various forms to an increasingly older population a. Provide nutritious/cost-effective meals 3 days per week b. Plan/conduct evening dinners quarterly c. Action Step: Hire part time cook- pay through increased meal costs and other sources d. Increase lunch participation by 10%+ in FY19 4. Examine effectiveness of current transport system and make appropriate updates a. Expand mission of FISH to include all requests, not just medical b. Defensive driver/ driver safety training – To be mandatory for all paid and volunteer drivers through MIIA – 1/yr. 5. Enhance/strengthen municipal/public relationships a. Continue educating department heads, Town commissions/boards, Board of Selectmen, stakeholders regarding services, programs, and activities at W/C through dept. head meetings, informal discussions 4/yr./suggestion box/focus groups b. Strengthen general public relationships and knowledge of CEA and W/C through effective quality publication of monthly newsletter FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED ELDER AFFAIRS PERSONNEL 241,321 249,335 266,017 EXPENSES 28,025 32,493 34,778 SUBTOTAL 269,346 281,828 300,795 FULL TIME EQUIVALENTS 3.91 3.91 3.91 | 68 Veterans Services Mission Statement The Veteran Services Department provides services to eligible veterans and their dependents in need and connects them to the services and benefits for which they are eligible. The department's goal is to deliver accurate, courteous, and timely service. Programs and Services Prior Year Major Accomplishments 1. Ensure that Veterans are receiving the benefits they are entitled to. Goals for Coming Year 1. Continue to ensure that Veterans are receiving the benefits they are entitled to. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED VETERANS SERVICES PERSONNEL 18,862 23,642 26,414 EXPENSES 71,975 117,950 117,950 SUBTOTAL 90,837 141,592 144,364 Federal Assistance Programs & Services Providing information and direction concerning: • Death Benefits • Educational Benefits • Employment • Housing Assistance • Medical benefits • Social Security Disability • VA Disability • VA non-service connected pension • Widow’s benefits • Social Security Supplemental Income • VA Home Loan State and Local Assistance Programs & Services Providing information and direction concerning: • Annuities • Awards and medals • Burial information • Chapter 115 benefits • Clothing • Education • Elder services • Employment • Flags and markers • Financial assistance • MassHealth • Pharmaceuticals • Real estate tax exemptions • Record retention • Sales tax exemptions • Shelter and veterans’ services Community Events Plan, coordinate and assist with: • Memorial Day Parade • Veterans Day Observance | 69 CULTURE AND RECREATION Library Mission Statement The Paul Pratt Memorial Library is a vibrant community hub that serves as an incubator of discovery and a catalyst for creative imagination and lifelong learning. Statement of Values: Library staff, trustees, and Friends are committed to offering high quality information, resources, and programming to the Cohasset community and beyond. We work to ensure that all citizens have equal access to information, and that all persons are welcomed by professional staff dedicated to providing outstanding services. Boards and Committees Board of Library Trustees: The Trustees are not only advocates for Cohasset’s public library, but are responsible for overseeing the library’s operations, establishing policies and plans, and determining the library’s budget. The Board of Trustees endorses in general principle the “Freedom to Read” and “Library Bill of Rights” statements of the American Library Association. Cohasset Library Trust: The Cohasset Library Trust, Inc. was established in 2006 to increase the library’s endowment and prudently manage its investments. The elected trustees of the Paul Pratt Memorial Library created this nonprofit, tax-deductible 501(c)(3) corporation as authorized by town meeting vote and enabling legislation. The Trust has a Board of Directors appointed by the elected library trustees and their names are listed below. They have considerable experience in other Cohasset organizations and among them have substantial marketing, fund-raising and investment management skills. The goal of the Trust is to increase the amount of expendable funds available to the library by increasing the size of the endowment. Friends of the Cohasset Library: The Friends is a 501(c)3 organization, eligible for matching contributions from many corporations. Friends of the Cohasset Library Mission Statement: "The Friends support the Mission of the Paul Pratt Memorial Library through ongoing fund- raising and advocacy to enhance library resources and programming and to provide community outreach services." | 70 Programs and Services Prior Year Major Accomplishments 1. Implemented two grant programs with Library Services & Technology (LSTA) federal grant funds awarded by the Massachusetts Board of Library Commissioners (MBLC). Funds totaling $9,889 were awarded for our “Equal Access for All” grant for expanding library services for people with physical and intellectual challenges. This initiative exemplifies the unique role of public libraries in their communities --- equal access, equal opportunities and equal rights for all citizens to access books, information, technology and programs. 2. We joined the Hingham, Scituate and Weymouth libraries in implementing “All Aboard Greenbush!: One Train, One Book,” an outreach initiative to connect the daily riders of the Greenbush Commuter Line to their local libraries. Our book selection, The Race Underground: Boston, New York, and the Incredible Rivalry hat Built America’s First Subway by Doug Most, chronicles the competition between two brothers from one of the nation’s great families --- Henry Melville Whitney of Boston and William Collins Whitney of New York --- as they pursued the dream of digging America’s first subway. Henry Whitney summered in Cohasset and so collaboration with the Cohasset Historical Society (CHS) on this grant project resulted in an outstanding CHS exhibit of historical archives. 3. We used funds awarded by the South Shore Music Circus to develop digital media lab resources for public use. The first phase of the grant resulted in the acquisition of a digital scanner that converts old slides and negatives to digital format onto a DVD or flash drive. The scanner is located in the Historical Room and is much appreciated by the public. Strategic Objectives 1. Make the library a lively, energetic community-gathering place where people come to learn, share, plan, work, study, reflect and discover together 2. Keep the library a place of life-long learning: continue to serve as the place where all demographics find superlative research services and engage in information gathering and technology learning Programs for Youth • Weekly Story Hour • Puppet Story Time with Leigh & Friends Drop in Crafts • Weekly craft programs • LEGO® Club • Homework Center • Summer Reading Program • Eyes on Owls live animal shows • Read to a Dog literacy program • Science, Technology, Engineering, Arts & Math (STEAM) programming • MamaSteph music programs • Teen Advisory Board • Special programs: Latin Roots; College Application • School and group library tours Programs for Adults • Book discussion group • Great Decisions Foreign Policy Study & Discussion group • Sunday Author Talks & ongoing author talks • Genealogy classes • Memoir-writing workshops • Resume-writing classes • Independent film series • Movie series • Outreach services to the homebound (book delivery, book discussion groups at Sunrise & Golden Living) | 71 3. Continue to generate excitement and enthusiasm around literacy 4. Identify and Implement creative funding and resourcing strategies 5. Ensure accessible resources for all 6. Generate excitement and awareness about library programs through comprehensive and creative marketing and publicity 7. Develop a workplace culture of innovation, expertise and experimentation Goals for Coming Year 1. We are currently implementing our FY2018 annual action plan in support of our Strategic Plan 2017 – 2021. Our main objectives are to develop relevant, new programs for people of all ages; increase staff technology skill sets in order to expand program offerings; market library services to a wide audience; complete implementation of our first phase of an object lending collection; and finalize selection of digital media lab resources. 2. Develop outstanding collections, digital research platforms, technology tools and programs that foster education and learning 3. Increase awareness of the joy of reading and discovery through creative and compelling promotion of collections and programs 4. Increase library resources in order to expand and maximize effectiveness of services 5. Expand Outreach services and implement diverse collections, technology and programming to ensure that people of all ages, backgrounds & abilities are able to use the library 6. Generate interest in and use of library resources through effective marketing 7. Encourage staff education and knowledge building that will lead to the development of outstanding library services Changes in Budget, Goals and Objectives We are implementing technologies and services for the deaf & hard of hearing; blind and/or visually challenged; and intellectually challenged and/or disabled. We formed an Equal Access Advisory Board comprised of library staff, Cohasset schools personnel, human services department heads, and area organizations in support of our grant, “Equal Access for All,” an initiative developed to improve library services for people with disabilities. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED LIBRARY PERSONNEL 502,172 525,608 526,158 EXPENSES 99,409 116,979 117,044 SUBTOTAL 601,581 642,587 643,202 FULL TIME EQUIVALENTS 8.46 8.46 8.46 | 72 Recreation Mission Statement The Cohasset Recreation Department serves the community of Cohasset to provide exceptional recreational activities and programs for residents of all ages. The goal of the Department is to create an easily accessible environment in which every resident will enthusiastically participate in recreational leisure to embrace good health and well-being in mind, body, and spirit. The Cohasset Recreation Department is devoted to meeting the present and future needs of all residents and making healthy recreational activities an integral part of this tight-knit community. Programs and Services Kids and Adult Fitness • Advanced Tennis • Afternoon Fun with Mr. Dykas • Ashtanga Yoga Classes with Cindy Matheison • Baseball 143 • Baseball, South Shore Baseball Club • Boston College Football • Boston Paintball -Xtreme Trip Veterans Day • Boys Lacrosse Clinic Grades 6 & 7 • Cardio Sport Fitness • Challenge Rocks - climbing • Cheerleading Clinic • Cohasset Boys Lacrosse Clinic • Cohasset Girls Lacrosse Clinic • Cohasset Lacrosse Academy - with Tommy Powers • Cohasset Youth Ultimate Frisbee • Cross Country Running Club • Cycling with Cohasset Recreation • Exercise Ball Class • Fencing • Field Hockey Clinic • Fishing Trips • Fit Family • Girls Basketball Clinic • Golf Lessons Kids and Adult Fitness (cont.) • Senior Yoga • Ski and Snowboard Lessons • Skyhawks Sports • Softball Pitchers Clinic • South Shore Basketball School • SSBC Baseball Camps • Strong Boys w/Kelly Grech • Super Soccer Stars • Surf Lessons • Tai Chi • Tennis Classes • The Beantown Jumpers • The South Shore Basketball School • Thundercat Mini-Sports • Train for a 5K/10K • Walking Club • Waterville Valley Ski Trip • Womens Softball League • Yoga w/ Amy Di Lillo • Youth Cheer Clinic • Zumba Trips • Massachusetts Parks Pass • Bread and Chocolate Trip • Daffodil Festival on Nantucket • Kayak Trips and Instruction • New York Trip • Red Sox Trips Kids and Adult Fitness (cont.) • Haggerty Summer Basketball Camp - Co-Ed • Hatha Yoga Class • Health and Recreation Fair • Heart Healthy Wellness Day • Heart saver CPR AED • High School Conditioning Workshop • Inspire Harmony – Family Yoga before Mama Steph • Inspire Kids Yoga - Pre- School Yoga • Learn To Skate • Lund Summer Sports Clinics • Middle School Wrestling Club • Mr. Dykas Dance Party • NEW Total Body Conditioning • Olympic Archery • Outdoor Summer Basketball Leagues • Power Blast Kelly Grech • Prime Time Lacrosse Clinics • Recreation Hoops • Recreation Soccer Clinic • Recreation Summer Youth Tennis • Reebok BoksKids Program • Rock Climbing • Running Club w/Kelly Grech • Sandlot Baseball | 73 Boards and Committees • Recreation Commission: consists of seven members whom are elected and serve for a five year term. The Commission promotes, encourages, and coordinates recreational activities for all citizens of the Town. The Commission is responsible for making recommendations to the Board of Selectmen regarding the maintenance and improvement of recreational areas owned by the Town. • The Recreation department works with multiple departments to operate programs in a safe and effective manner including but not limited to: Health, Board of Selectman, DPW, Facilities, schools, Treasurer’s Office, Harbormaster, Town Clerk, Fire, Police Department, Library, and Human Resources Enrichment • 50 Things Every Young Lady Should Know • Archaeology & Ancient History Program • Art for a Cause Furniture Painting Class • ART-cation • Babes in Artland • Bagpipe Training • Babysitting Course • Be a Jester for a day • Boating Safety Instruction • Chess Wizards • Cohasset Drama Club • Community Garden w/Holly Hill Farm • Computer Explorers • Cooking with Dunk • CPR • Creative Art with Bianca • Dog Obedience • Drama Kids • Drop & Shop • Event-Full! (LLC) Programs • Good Kids-Boston School of Etiquette Boys & Girls • Guitar Lessons • Half-Day Magic & Juggling Mini-Clinics • Home Alone Staying Safe • Kids Art to Go • Kids Just Love Crafts • Lego Engineering Presented by Play-Well TEKnologies • Little Actors Workshop • Mad Science Summer Fun • Middle School Girls Night Out Vacation Programs • April Rec-Cation • December Rec-cation • February Rec-Cation • Wicked Cool Vacation Dance • Boston Academy of Irish Step - NEW • Break Dance with Sean • Dance Heroes • Hip Hop with Taryn • Xplosion Dance, Ballet, Basic Dance, Hip Hop, • Jazz & Tap Summer Programs • Playground Program • Band Program • Concert Series • Chess Wizards Clinic • Playground Monday Electives Art, Ukulele, Yoga, Math • Playground Music Circus Trip • Playground Swim Program • RISE • Xtreme Community Involvement • Ground Level Coffee House • Health and Recreation Fair • Jack Worley Scholarship Fund • Summer Job Fair • Summer Concert Series • Thanks-for-Giving 5K Road Race • The Road Less Traveled to Old Colony Square • Support PSO programs • Provide Tables for Math and Science Night • Town Meeting Child Care • Girl Scout Meetings • Host Town Group Meetings and Registrations. • Host Library Programs Enrichment (cont.) • Musical Friends with Jim Armstrong • Outdoor Exploration • Piano by Ear • Piano Playtime • Playtime with Miss Linda Bolster • Play-Well Technologies • R.A.D. (rape aggression defense) Systems Training • Rock Ensemble & Electronic Music Production • Rockets and Space Flight • Sailing & Yacht Club Staff CPR & First Aid • SAT English Review • SAT Math Review • Spanish Lessons • Spectacular Hands-on Science • Table Manners Express & 7 Habits of Highly Successful Teens Workshop • Technology Class • The Traveling Art Party • Ukulele with Jim Armstrong • Wicked Cool Programs - Lego Etc. | 74 Prior Year Major Accomplishments 1. Celebrated our 50th Summer Playground program in 2017 with the largest summer playground program in history, 444 children. 2. Successful and largest Middle School Summer Xtreme program in history 3. Successful 2nd year of the Summer Recreation Basketball League 4. Employed our largest summer staff in recreation history: 95 5. Employed our first nurse for our summer programs 6. Employed our first staff psychologist for staff welfare 7. Created programs for staff wellbeing to handle stress 8. Worked with Finance Director for the creation after adoption of 53e ½ accounts to further increase our programs and staff 9. Worked with Cohasset Safe Harbor Coalition to use our downtown Rec Center for High School Coffee Houses 10.Worked with the Open Space and Recreation Committee for the update of the Open Space and Recreation Plan 11.Created and improved the entry way/courtyard at 100 Sohier Street and worked with Holly Hill Farm for a small community garden 12.Commission representation on the Harbor Committee for the Harbor Master Plan 13.Continued involvement with the Town’s Community Service branch. 14.Worked with town/school and CPC for funding for Playground improvements 15.Full Schedule of programming at the downtown Rec Center 16.Invested in equipment and supplies to save money 17.Successful Health and Recreation Fair with the Board of Health. 18.Successful and Improved Summer Band Concert Series 19.Successful and largest Thanks for Giving Road Race with a new course for the temporary loss of Cunningham bridge 20.Continue to operate a full time before and after school program and hired a staff person to oversee the program 21.Continue to schedule town fields in conjunction with the School Department 22.Finished CPC Milliken Field baseball improvement and Bancroft Way fence replacement projects Goals for Coming Year 1. Strengthen our existing school year programs 2. Strengthen our staff recruitment and training programs with the existing Job Fair. 3. Continue and increase policies for summer staff wellness 4. Continue to fill all of our Recreation facilities with programs 5. Create more joint programs with the library 6. Finish CPC project at Milliken Field 7. Complete CPC project and rehabilitate the parking lot, fields and courts at 100 Sohier Street including a dedication for Jessica McDonald 8. Complete CPC Playground Improvements 9. Increase Professional Development 10.Improve our Junior Volunteer program 11.Improve Lighting at 100 Sohier Street and Beechwood 12.Plan further tennis court improvements 13.Further increase our sponsorships 14.Hire additional full time staff 15.Work to license Before and After school Program | 75 FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED RECREATION PERSONNEL 128,140 130,760 130,760 EXPENSES - - - SUBTOTAL 128,140 130,760 130,760 FULL TIME EQUIVALENTS 2 2 2 | 76 SCHOOL ADMINISTRATION | 77 Cohasset Public School Administration Mission Statement The Cohasset Pubic Schools is a district committed to excellence. We hold high expectations for all students and staff, and provide the support and resources that enable all to meet or exceed those expectations. We collaboratively support an academically challenging, safe, respectful, and student-centered learning environment in preparing them to be responsible citizens of a global and digital twenty- first century environment. District Strategic Plan In June 2016, the School Committee approved a five-year strategic plan (FY 17 to FY 21) for the Cohasset public schools. This strategic plan was based on a year-long project including input from all community stakeholders. As the diagram below shows, the strategic plan has five pillars: Curriculum, Instruction & Assessment, Social & Emotional Learning (SEL), Human Capital, Safety & Security, and Community & Collaboration. In addition, the strategic plan pillars are supported by the Digital Learning Plan, a strong Professional Development Plan focused on Universal Design for Learning (UDL), and solid Financial Practices aligned to the education goals of the district and town financial policies. For a complete copy of the district strategic plan, please see the Superintendent section of school website https://www.cohassetk12.org/domain/56. Programs and Services The Cohasset public schools are housed on three campuses: • Joseph Osgood School - Grades: PreK to 2nd with FY 18 enrollment of 349 students), | 78 • Deer Hill School - Grades: 3rd to 5th with FY 18 enrollment of 389 students, and • Combined Middle School - Grades: 6th to 8Th with FY 18 enrollment of 373 students and High School - Grades: 9th to 12th with FY 18 enrollment of 467 students. Total in-district enrollment for Cohasset public schools as of March 2018 was 1,578 students. Cohasset is a high achieving district with over 95% of the graduates continuing to post-secondary education. The Cohasset public schools consistently return results that maintain Cohasset in the top tier of state public schools in standardized measurements including MCAS, SAT, ACT and AP exams. The school district boasts strong community support and student activities that center around the sciences, athletics, music, and opportunities that our coastal location provides. Boards and Committees The Cohasset School Committee is made up of five elected members with three-year terms. Massachusetts Law, Chapter 71: Section 37, charges School Committees to focus on student achievement goals and the following specific duties: • Review and approve budgets for public education, • Select and to terminate the superintendent, and • Establish educational goals and policies for the schools in the district. It is not the duty of the school committee to operate the school, but to see that it is well operated. The application of policies is an administrative task to be performed by the superintendent and his/her staff, who shall be held responsible for the effective administration and supervision of the entire school system. The School Committee works closely with the Superintendent and district leadership and the Town of Cohasset to ensure that student achievement goals of the district are being achieved and that the financial resources of the community are being prudently managed. The Cohasset School Committee has the following sub-committees: Policy & Standards, Superintendent Evaluation, Collective Bargaining, Budget & Finance, Technology, and Security. In addition, members hold liaison assignments with the following town committees and organizations: Schools Councils at Osgood School, Deer Hill School, Middle-High School, Cohasset PSO, Cohasset Education Foundation, Elder Affairs, SEPAC, Safe Harbor Coalition, Emergency Management, Hall of Fame, Long Range Planning Group, Master Plan Committee, 250th Year Anniversary and Town Hall Building Committee Goals for Coming Year For FY 19, the School Committee is characterizing the requested school budget as “needs- based” in order to provide a level-service budget with a few incremental improvements based on student achievement goals articulated below. With the “needs” broadly defined to include responses to enrollment trends, the reality of changing student demographics and associated special education/other services, contractual obligations, and resources to meet Department of Elementary & Secondary Education (DESE) requirements and other legislative mandates. | 79 Student Achievement is at the heart of all School Committee and District decisions. For the FY 19 budget, the School Committee and district leadership support the following Student Achievement priorities. These priorities are directly related to the adopted Cohasset public schools Strategic Plan and Technology Plan and are supported by the School Committee’s and the Administration’s goals. Changes in Budget, Goals & Objectives The FY 19 requested school budget is $19.55 million, a 3.5% increase over last year’s appropriated school budget and on target with the Town Manager’s recommended year- over-year increase of $654,937. The FY 19 requested school budget is based on level services with some important incremental improvements based on essential staffing and legally required special education services. The following are key assumptions used in the FY 19 school budget: 1. Enrollment is projected to decrease slightly from 1,578 students as of March 2018 to 1,564 students for FY 19. 2. The requested school operating budget is after offsets from grants, awards, gifts and fees/tuition from revolving accounts (see note below). 3. The district closely monitors and adjusts the delivery of in-district special education and English Language Learner (ELL) services. 4. Utilities are projected to increase by 3% which is offset by a decrease in overall transportation expenses resulting in slight overall savings to the budget. 5. Personnel expenses include an assumption for contractual increases for all staff. | 80 6. The district works closely with Capital Budget Committee and the Community Preservation Committee to support additional expenditures related to school facilities and needs, digital learning, transportation and legally required playground upgrades. FY 17 ACTUAL FY 18 BUDGETED FY 19 REQUESTED PERSONNEL $14,991,543 $15,196,009 $16,175,329 EXPENSES $3,232,813 $3,699,648 $3,375,265 TOTAL SCHOOL BUDGET $18,224,356 $18,895,657 $19,550,594 (b) VARIANCE TO TOWN MANAGED RECOMMENDED BUDGET $0 $0 FULL TIME EQUIVALENTS 237.6 233.8 244.1 (a) Notes: (a) The year-over-year increase in FTEs is due to the addition of 3.6 Education Support Professionals due to legally required special education services, the addition of 1.1 in teachers due to legally required special education/ELL services, the addition of 0.5 part-time bus-drive for 7th bus route at CMHS, the conversion of outside cleaning contract to 3.0 custodians (no budget impact), the movement of Athletic Director to external position, and the addition of 1.0 staff in the Business Office. (b) In addition to requested budget, the school district utilizes $2,228,273 in offsets from grants, gifts, awards and fees/tuitions from revolving accounts. The utilization of these offsets funds critical programs and is in line with practices all school districts in Massachusetts and recommendations from the Department of Elementary and Secondary Education. For more information, please see the school budget documents on the School Committee section of the district website https://www.cohassetk12.org/domain/506 . The School Committee section of the district website includes links to FY 19 budget priorities, line-item detail of requested school budget, and an executive summary presentation of the FY 19 school budget. | 81 DEBT & DEBT SERVICE | 82 DEBT SERVICE Debt Service appropriations provide for the payment of principal and interest costs for long and short term bonds issued by the Town for capital projects for General Fund purposes. The debt service appropriations for the Water & Sewer Enterprise Funds appear in their respective budgets (Enterprise Funds Section of this budget document). Typically, larger projects such as buildings and large scale capital projects are bonded for twenty years, while the financing for other General Fund projects and equipment is retired within five to ten years. The Town’s goal is to finance capital projects for the shortest feasible term over the useful life of the project in accordance with the terms outlined in Massachusetts General Laws. This ensures that our debt burden will remain manageable. For FY2019, the total Debt Service budget (principal, interest and MCWT admin fees) for the General Fund is $2.6 million, a decrease of approximately $448,000. To minimize the tax impact for larger capital projects, such as the proposed Town Hall Renovation Project, issuance of debt for smaller capital projects has been curtailed and in accordance with the Town’s Free Cash Policy, as these smaller capital items have been purchased using available funds. Please see the Financial Management Policies in the Appendices Section of this budget document for a more detailed explanation of the Free Cash Policy and the recent successful efforts to fund more pay-as-you-go capital projects. FY17 FY18 FY19 ACTUAL BUDGETED PROPOSED Non-excluded debt 01-710-5910 Principal 890,685 735,891 663,296 01-710-5915 Interest 84,987 67,559 37,009 01-710-5926 MCWT Admin Fee 5,029 3,981 2,900 Total non-excluded debt 980,701 807,431 703,205 Capital fund debt 01-720-5910 Principal 238,500 390,500 423,668 01-720-5915 Interest 37,570 33,500 53,069 01-720-5925 Short Term Interest - 11,520 - Total capital fund debt 276,070 435,520 476,737 Excluded debt 01-730-5910 Principal 1,644,900 1,610,980 1,275,745 01-730-5915 Interest 286,239 226,868 177,853 01-730-5926 MCWT Admin Fee 3,938 2,966 1,964 Total excluded debt 1,935,077 1,840,814 1,455,562 TOTAL GENERAL FUND DEBT SERVICE 3,191,848 3,083,765 2,635,504 | 83 Statutory Debt Limit The aggregate level of the Town of Cohasset’s outstanding debt obligation is limited by State law. The statutory debt limit is established by Massachusetts General Laws, Chapter 44, Section 10 at 5% of our total Equalized Valuation (EQV). The EQV is determined every other year by the State Department of Revenue. Cohasset’s 2017 EQV $2,755,368,610 Debt Limit (5% of EQV) $ 137,768,431 Cohasset’s total issued and outstanding long term debt principal, both inside and outside the debt limit as of June 30, 2017, was $51,808,686, significantly below the statutory debt limit. Debt Policy Limits There is an additional local limit placed on Cohasset’s total debt obligation through the Debt Policy adopted by the Board of Selectmen in May 2016. The Debt Policy provides for specific Gross and Net debt limits for the annual General Fund debt service expressed as a percentage of the proposed budget. Net GF Debt Limit Not to Exceed 10% The estimated FY2019 General Fund debt service budget is well under the local debt policy limits, as net General Fund debt represents only 2.6% of FY2019 revenues. Bond Rating In order to comply with complex tax regulations, secure access to the municipal bond market, and assure a competitive climate for bids, the Town uses the services of Bond Counsel, a Financial Advisor and a private credit rating agency to prepare for the issuance of bonds. In June 2017, in conjunction with the bond issuances for various capital projects and the advanced refunding of August 1, 2009 bonds, Standard and Poor’s Ratings Direct maintained the Town’s bond rating of AAA. During the review Standard and Poor’s Ratings Direct cited the Town’s very strong economy and management, strong budgetary performance and flexibility, and very strong liquidity and debt/contingency liability position. With regard to debt and contingent liability profile they commented that “In our view, Cohasset’s debt and contingent liability profile is very strong. Total governmental fund debt service is 7.8% of total governmental fund expenditures…and approximately 77.2% of the direct debt is scheduled to be repaid within 10 years, which are, in our view, positive credit factors.” The independent assessment illustrates how our planning efforts and fiscal discipline produce very real and tangible results—lower rates on bonds resulting in less tax dollars going to pay for interest. Total Long Term Debt Service - All Funds The total long term annual debt service from FY2019 through FY2037, including both principal and interest, is shown on the following page. The chart indicates the amount of long term debt service for the General Fund (Debt Excluded, Non-Excluded and Capital Stabilization Funded), as well as the long term debt service for the Water & Sewer Enterprise Fund. | 84 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 6,000,000 6,500,000 Total Long Term Annual Debt Service By Fund Non Excluded Debt Excluded Debt Capital Debt CPA Debt Water Debt Sewer Debt Fiscal Year Non Total Due Excluded Debt Excluded Debt Capital Debt CPA Debt Water Debt Sewer Debt Debt Service 2019 679,088 1,455,562 476,737 24,117 2,554,342 996,391 6,186,237 2020 562,271 1,325,550 396,252 23,093 2,527,249 992,890 5,827,305 2021 481,559 1,218,672 205,252 21,884 2,389,155 982,371 5,298,893 2022 184,740 911,400 205,562 21,284 2,233,734 975,418 4,532,138 2023 175,200 871,975 202,812 20,684 2,203,667 974,753 4,449,091 2024 169,517 827,225 203,787 19,392 2,191,150 963,665 4,374,736 2025 159,296 - 189,687 - 2,195,952 954,739 3,499,674 2026 134,633 - 190,787 - 2,084,636 956,691 3,366,747 2027 134,399 - 66,737 - 1,794,304 885,461 2,880,901 2028 134,164 - 51,287 - 1,713,534 890,170 2,789,155 2029 132,946 - 51,287 - 1,640,126 884,501 2,708,860 2030 132,763 - 51,287 - 1,558,882 854,908 2,597,840 2031 129,637 - 51,287 - 506,800 807,924 1,495,648 2032 75,000 - 51,287 - 104,650 41,800 272,737 2033 75,000 - 51,287 - 106,575 40,600 273,462 2034 - - 51,287 - - - 51,287 2035 - - 51,287 - - - 51,287 2036 - - 51,287 - - - 51,287 2037 - - 25,644 - - - 25,644 3,360,213 6,610,384 2,624,840 130,454 25,804,756 12,202,282 50,732,929 Total Long Term Annual Debt Service By Fund | 85 ENTERPRISE FUNDS | 86 Water Mission Statement The Cohasset Water Department provides public drinking water to about 7,000 Cohasset residents with about 2,637 connections, 38 miles of water mains, 750 valves, and 524 hydrants. The Water Department provides water for about 90% of Cohasset (the other 10% receive water services from Aquarion Water Company) and it also provides and maintains a reliable water system for Cohasset's Firefighters. Programs and Services Water Commission The Water Department is under the elected Board of Water Commissioners which consists of three members, one elected each year, who serve a three-year term. The Water Commissioners have exclusive charge and control of the municipal Water Department and water system subject to Federal and State laws and bylaws. Prior Year Major Accomplishments 1. Removed 1200 tons of sludge from sludge collection lagoons and installed new geo-bag. 2. Completed the conversion from powered lime to liquid sodium hydroxide for pH adjustment at the Lily Pond Water Treatment Facility. 3. Participated in required testing for our discharge monitoring permit. 4. Awarded a contract for the looping of the water main from Lincoln Lane to Ledgewood Farm Drive to improve water quality. Funds were voted at Town Meeting to be taken from Retained Earnings. 5. Replaced the corroded chemical injection spool piece section of 14” discharge water main at the Lily Pond Water Treatment Facility. 6. Replaced the filter #2 backwash drain valve. 7. Repaired the Bound Brook flow control weir gate. 8. Installed a new pump, column, shaft and motor bearings on raw water pump #2. 9. Replaced the backwash valve actuator filter on #1. 10.Conducted a leak survey on 100% of the water distribution system. 11.Repaired booster pump #1 at the Whitney Crossing pump station. 12.Replaced 2 hydrants, one on Beechwood Street and one on South Main Street. 13.Refurbished 162 hydrants. Responsibilities • Manage improve and control all works, buildings and other structures of the town water systems. • Establish the rules and regulations for the use of the Town water systems. • Establish equitable rates for the use of Cohasset's water system. • Keep all necessary records. • Maintain adequate water supply and water quality. • Provide on-site inspections and evaluations. • Submit reports to the Massachusetts Department of Environmental Protection and the EPA. | 87 14.Repaired 9 water main breaks, replaced 9 water service connections, repaired or replaced 27 gate boxes and/or service boxes. 15.Oversaw repairs to 20 privately owned water service lines. 16.Replaced or installed 320 water meters with radio read meters. This brings the total number of distribution system radio read meters up to 74%. 17.Responded to 943 routine service calls. 18.Responded to 64 emergency calls. Goals for Coming Year 1. Upgrade the Polymer Chemical Feed System at the Lily Pond Treatment Facility. 2. Conduct a leak survey on 50% of the water distribution system. 3. Remove built up bottom silt at the intake to the Water Treatment Plant. 4. Upgrade the communications network and security cameras. 5. Upgrade the PAC chemical feed system. 6. Upgrade the SCADA system. 7. Make repairs to the Aaron River Reservoir Dam. 8. Paint the Scituate Hill water tank. 9. Refurbish pump #2 at the Whitney Crossing Pump Station. 10.Complete communication upgrade and install new tube settlers, monies funded by Retained Earnings approved at Fall Special Town Meeting. Certified Water Retained Earnings FY19 Water Budget Detail $(115,000) $(15,000) $85,000 $185,000 $285,000 $385,000 $485,000 $585,000 $685,000 $785,000 $885,000 FY12 FY13 FY14 FY15 FY16 FY17 | 88 | 89 Sewer Mission Statement The Sewer Commission was established by an Act of the State Legislature in 1962. The Commission is responsible for establishing and implementing the policies which manage the Town's sewage collection system and wastewater treatment plant. The Waste Water Treatment Plant (WWTP) is currently under contract by Suez. The WWTP is continuing to produce a high quality effluent utilizing its innovative membrane technology. The Cohasset Sewer Commission responds to concerns and complaints, reviews the operation of the treatment plant and collection systems, and tracks budgetary issues and does future planning. Programs and Services Sewer Commission William B. McGowan, Jr. (2019) John Beck (2018) Wayne Sawchuk (2020) Prior Year Major Accomplishments 1. Started town owned grinder pump retrofit 2. Added a third operator to WWTP contract 3. Town meeting approval of rate increase after ten years of no increases Goals for Coming Year 1. Rehab High School pump station with new mechanical and electrical equipment as well as repair steel sub-structure. 2. Continue with grinder pump retrofit program. 3. Continue I/I Investigations. 4. Upgrade two pump stations alarm systems with new Mission Model M10 Remote Terminal Unit. Changes in Budget, Goals and Objectives The sewer enterprise fund has three primary sources of income: the payment of betterments assessed for expansion of the collection system; new connections to the existing collection system; and flow-based usage (including quarterly fee). The Board sees no need for an increase in fees for FY’19. Depending on future new connections, there may be recommendations for fee increases in in subsequent years. Responsibilities • Inspection of all new construction pipeline installation • Review and approve applications for sewer connections • Testing and treating all wastewater flowing through the WWTP • Diagnose residential sewer issues and rectify problems related to the connection system • Schedule and carry out inspections, cleanout, and testing of the sixty miles of pipeline and ten pumping stations throughout Cohasset • Maintain and repair all Sewer Department equipment, including the WWTP | 90 Certified Sewer Retained Earnings FY19 Sewer Budget Detail $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 FY12 FY13 FY14 FY15 FY16 FY17 | 91 | 92 APPENDICES | 93 FINANCIAL MANAGEMENT POLICIES Reserve Policy Approved by the Advisory Committee by a vote of 8-0 on February 24, 2016 Approved by the Board of Selectmen by a vote of 4-0 on May 9, 2016 General Reserve Fund Objective: To have resources to respond to extraordinary, unforeseen, or emergency circumstances. Financial Goal: To fund a minimum Advisory Reserve Fund balance of 1% of the prior year’s property tax levy as per the Tax Recap filed with the DOR less debt and capital exclusions. (MGL Chapter 40, Section 6 limits this Reserve balance to five percent (5%) or less of the prior year’s property tax levy in a town) Transfers In: • Advisory Reserves are to be funded as a line item in the annual budget. • The minimum reserve should be $200,000, with a goal of 1% of the prior year’s property tax levy to be reached within five years, recommended as follows: • FY ’17: 0.6%; FY ’18: 0.7%; FY ’19: 0.8%; FY’20: 0.9%; FY ’21: 1.0% • The maximum is 5% of the prior year’s property tax levy Transfers Out: • Require a majority vote of the Advisory Board. • Are to be used for extraordinary, unforeseen, or emergency circumstances • Cannot be used to by-pass or reverse town meeting decisions • Any balance at the end of the fiscal year closes to Undesignated Fund Balance(free cash) Stabilization Fund Stabilization Funds are special reserve accounts allowed by Massachusetts General Law (MGL) to allow savings to be set aside and available for any lawful purpose. In the case of an emergency expenditure a community with a Stabilization Fund balance may use the available balance rather than spiking its property tax rate. The tax rate may therefore be “stabilized”. Bond rating agencies grade municipalities more highly if they maintain a healthy reserve balance in this and other reserve accounts. The Town can also establish Stabilization Funds for specific purposes, such as capital needs. Objective: To smooth uneven cash flows created by low growth, expected and unexpected events over a period of several years and to minimize borrowing for capital projects or other lawful spending purposes. Financial Goal: To achieve and maintain a minimum combined Stabilization Fund balance of 15% of the prior year’s property tax levy as per the Tax Recap filed with the DOR, less debt and capital exclusions. This total would include both the General Stabilization and Capital Stabilization funds. It does not include either sewer or water stabilization funds, or dedicated accounts such as the OPEB trust. (MGL Ch. 40§5B limits annual appropriations to all Stabilization Funds to ten percent (10%) or less of the prior year’s property tax levy without the Director of Accounts approval. Furthermore, it limits the Total Stabilization Fund balance to less than ten percent 10% of the Town’s Equalized Valuation EQV) Transfers In: The Stabilization Fund is to be funded from • Interest from all existing Stabilization Fund account balances • One-time revenues • Undesignated Fund Balance (Free Cash) above financial goal • Line item in the Annual Budget Transfers Out: Transfers out require a 2/3 vote of town meeting. Funds are to be used for: • Extraordinary, unforeseen, or emergency circumstances in excess of General Reserve Fund balances • Capital improvements • Capital purchases | 94 • Liabilities (lawsuits) • Supplement operating budget if and only to the extent that revenue growth (Levy, New Growth, local receipts) is less than 3%. This drawdown must be replaced the following year as first priority with any and all Undesignated Fund Balance (Free Cash). • Debt Stabilization Undesignated Fund Balance (Free Cash) The accumulation and use of “Free Cash” now referred to in MA Accounting Statutes as the Undesignated Fund Balance (UFB) of the General Fund, is an important component of the Town’s overall financial management. The available amount is calculated and certified each year by the MA DOR using data submitted by the Town. Undesignated Fund Balance (Free Cash) is comprised of year-end revenues in excess of projections and year-end expenditures less than appropriations. Undesignated Fund Balance (Free Cash) is also impacted by the resolution of contingencies or deficits since Undesignated Fund Balance (Free Cash) is reduced in order to cover any deficits at year-end. It is vital that the Town build and manage its operating budget to provide a reserve for unexpected financial crisis during the year. Objective: To provide a repository for various sources of cash from general revenue surplus, appropriation turn backs, one-time transactions, and unexpected events. It is reduced by illegal deficits, overdrawn grant accounts and deficits in other funds. It provides a financial cushion to guard against economic downturn or to meet unforeseen expenses. Financial Goal: To achieve and maintain an Undesignated Fund Balance (Free Cash) of 3%-4% of the annual operating budget excluding enterprise funds, at the end of each fiscal year. (DOR Best practices recommends a goal of 3%-5% of the annual operating budget) Transfers In: Undesignated Fund Balance (Free Cash) is to be funded from any and all: • Expenditures that fall under appropriations (department turn backs) • Receipts in excess of estimates • Unspent Undesignated Fund Balance (Free Cash) from prior year • One-time revenues such as sale of assets • Unexpected revenues • MINUS receipts that fall short of estimates • MINUS property tax receivables Transfers Out: Require a majority vote of town meeting. Funds are to be dispersed after they are certified in the following priority order • Unforeseen, extraordinary, and emergency events. (This could include operating expenses limited to not more than 75% of remaining balance after higher priorities are met.); Capital improvements and purchases; One-time expenses; • Replenish Stabilization Funds used for operating expenses in the prior year • Stabilization Funds, including OPEB Trust, to target level for current Fiscal Year Unassigned Fund Balance Unassigned Fund Balance under Generally Accepted Accounting Principles (GAAP) represents amounts that are not constrained in any way, not even by an intention to use them for a specific purpose. The Assigned Fund Balance represents amounts that are intended for a specific purpose but are not restricted or committed. The sum of these roughly translates to the sum of the Undesignated Fund Balance (Free Cash) and Stabilization Funds as described earlier. Objective: To provide budget flexibility and funding for expected and unexpected needs of the Town. Financial Goal: To achieve and maintain the equivalent of a minimum Unassigned plus Assigned Fund balance of 15% of the Town’s expenditures, through the implementation of Undesignated Fund Balance (Free Cash) and Stabilization Fund policies. (S&P requires a minimum Unassigned plus Assigned Fund Balance of 15% of Expenditures to receive the highest Budget Flexibility score.) | 95 Debt Policy Approved by Board of Selectmen 05/27/2016 A. Introduction The use of long-term debt is a common and often necessary way for a municipality to supplement fund balances and current appropriations in financing major infrastructure and equipment needs over a period of years. However, when a local government incurs long-term debt, it establishes a fixed obligation for many years. Accumulation of such fixed burdens, left unmanaged, can become so great that a local government finds it difficult to pay both its operational costs and debt service charges. Great care and planning must therefore be taken when incurring long-term debt to avoid placing a strain on future revenues. B. Objective Debt management policies provide written guidelines and restrictions that affect the amount and type of debt issued by a local government, the issuance process, and the management of a debt portfolio. It improves the quality of decisions, provides justification for the structure of debt issuance, and demonstrates a commitment to long-term financial planning. Adherence to a debt management policy signals to rating agencies and the capital markets that a government is well managed and will likely meet its obligations in a timely manner. C. Bond Rating A municipality’s bond rating is important because it determines if the municipality has any access to the debt market and the rate of interest it pays when selling bonds and notes. Other things being equal, the higher the bond rating, the lower the interest rate. See APPENDIX for the current bond analyst and their rating criteria for the Town of Cohasset. D. Debt Guidelines Debt Purpose: The Town may consider issuing debt for any purpose consistent with Massachusetts General Laws. Borrowing for capital improvements, in general, will be confined to those greater than $25,000 and with a useful life of five (5) or more years. In general, the Town will attempt to finance smaller purchases with operating or other revenues. The Town shall not issue debt to fund current or ongoing operations of the Town or schools, except in the form of Tax Anticipation Notes (TANs) when applicable; in compliance with Federal Massachusetts laws and regulations. Debt Amounts: The Town will keep total debt under five percent (5%) of Equalized Valuation (EQV) pursuant to MGL Chapter 44 Section 10. The Town will endeavor to keep total Tax-Supported debt service (i.e. net of debt exclusions and self - supporting debt) to 10 percent (10%) of total general fund revenues or less. See APPENDIX for debt revenue estimates. The Town will ensure that enterprise rates and community preservation receipts are sufficient to cover associated self-supporting debt. Enterprise fund rates will be adjusted accordingly. The Town will limit annual increases in any and all debt service to a level that will not materially jeopardize the Town’s credit rating. The Town will consider if bank qualification is in the best interest of the Town and if so, will attempt to maintain bank qualification and thereby receive lower interest rates on bonded debt. Debt Structure: The Town will not exceed the maximum maturity schedules set by Massachusetts General Law Chapter 44 Sections 7 & 8. However, the Town may choose to borrow for periods less than the statutory limit. Bonds will be paid back within a period not to exceed the expected useful life of the capital project or equipment. | 96 Debt Issuance: The Town will work closely with the Town’s Financial Advisor and Bond Counsel to ensure that all legal requirements are met and that the lowest possible interest rate can be obtained. This includes preparation of the official statement, preparation of all required documents and compliance with reporting requirements. The Town will maintain good communications with bond rating agencies about its financial conditions, and exercising full disclosure on every financial report and bond prospectus. The Town will strive to use competitive bidding whenever possible and negotiate sales of bonds only when competitive bidding is not feasible. Debt Management: Alternative Financing Strategies: The Town will continually pursue opportunities to acquire capital by means other than conventional borrowing; such as grants, federally subsidized loan programs, Massachusetts School Building Authority program and low or zero-interest loans from state agencies, such as the Massachusetts Water Pollution Abatement Trust (MWPAT) and any other appropriate state or federal financing program. Town will assess the feasibility and appropriateness of funding its capital projects from free cash balances, capital stabilization, general stabilization, or special revenue funds before it considers bonding. The town will consider if it is appropriate to establish user fees to cover the capital costs of enterprise type services or activities to avoid imposing a burden on the property tax levy. Debt Refunding: The Treasurer, relying on the advice of financial advisors and bond counsel will generally seek such refunding when the potential for interest savings is significant to offset the costs of doing so. Massachusetts General Law Chapter 44, Section 21A gives the Treasurer with the approval of the Town Manager the authority to issue refunding bonds in order to reduce interest costs. Advanced refunding opportunities will be regularly reviewed and considered for their merits as they become available and compared to other alternative strategies. Debt Residual Balance: Projected cash flow estimates will be required prior to borrowing to make sure that funds are available when needed. Post-Issuance Tax Compliance Procedures will be followed to ensure that previously issued bonds do not lose their tax-favored status and the Town does not need to pay any arbitrage rebate. See APPENDIX for Post Issue Compliance Policy. For those previously authorized bonded projects with residual balances, the Town Manager shall propose the reallocation of these balances for other capital projects in conformance with Massachusetts General Law Chapter 44, Section 20. For those previously authorized projects funded with available revenue (tax levy or reserves), that have residual balances in excess of $5,000, the Town Manager shall propose the reallocation of these balances for other future capital projects in conformance with Massachusetts General Law Chapter 44 Section 33B. This practice will avoid abnormally inflating general fund surplus with one-time surplus. For those previously authorized projects funded with available revenue (tax levy or reserves), with residual balances of less than $5,000, the Town Accountant shall be authorized to close these balances to the appropriate fund surplus. E. Ethics The Treasurer/Collector, Deputy Treasurer/Collector and Assistant Treasurer/Collector shall refrain from any personal activity that may conflict with the proper execution of the debt program or which could interfere with what is in the best interest of the Town. | 97 F. Reporting and Review Requirements • The Statement of Indebtedness is a form listing all authorized debt and is required annually by the Bureau of Accounts (BOA) from each municipality. • Municipal debt information from all municipalities is summarized in the Debt/Financial Indicators section of the Databank Reports http://www.mass.gov/dor/local-officials/ • Each bonding will require an Official Statement. The Treasurer will provide all necessary information to the Town’s Financial Advisor in order to complete the Official Statement. • The Town’s Debt information is also provided in the Consolidated Annual Financial Report (CAFR). Annual debt service requirements are budgeted as part of the annual budget approval process. • A debt model will be presented at Annual Town Meeting reflecting debt as of December 31st of preceding year. • This policy will be reviewed at least annually. G. Legal References • Massachusetts General Law, Chapter 44, Section 7; Cities and towns; purposes for borrowing money within debt limit • Massachusetts General Law, Chapter 44, Section 8; Cities and towns; purposes for borrowing money outside debt limit • Massachusetts General Law, Chapter 44, Section 10; Debt limit • Massachusetts General Law, Chapter 44, Section 20; Proceeds from sale of bonds; restrictions on use; disposition of premiums • Massachusetts General Law, Chapter 44, Section 21A; Refunding bonds; issuance; present values H. Definitions Bank Qualified Bond – A bond that banks are allowed to deduct 80% of their carrying costs of the debt. This occurs when a municipality issues no more than $10 million dollars in a calendar year. Continuing Disclosure – Continuing disclosure consists of important information about a municipal bond that arises after the initial issuance of the bond. Debt Limit – the amount a city or town can borrow. The debt limit is set at 5% of the equalized valuation (EQV) pursuant to MGL Chapter 44 Section 10. The debt limit can be raised up to 10% with the approval of the Municipal Finance Oversight Board (MFOB) Direct Debt – debt payable from general revenues including capital leases. Equalized Valuation (EQV) – the full and fair cash value of all taxable property for a municipality reported by the commissioner of revenue to the general court. Municipal Finance Oversight Board (MFOB) – is an entity authorized to oversee the issuance of certain debt by municipalities. It is made up of the attorney general, the state treasurer, the state auditor, and the director of accounts in the department of revenue or their designees. Net Direct Debt – direct debt plus overlapping debt. | 98 Official Statement – is a statement published by an issuer of a new municipal security describing itself and the issue. It communicates to the potential investor all the information reasonable necessary to make a prudent investment decision. Overlapping Debt – debt shared with another municipality or entity. Self-supporting debt – is general obligation debt which has a predetermined funding source. This includes enterprise debt that will be paid for by enterprise rates or fees, Community Preservation debt what will be paid for by community preservation receipts. Post-Issuance Tax Compliance Procedures For Tax-Exempt Obligations and Other Tax-Benefited Obligations I. Introduction These post-issuance compliance procedures of the Town of Cohasset, Massachusetts (the “Town”) are designed to provide for the effective management of the Town’s post bond issuance compliance program for tax-exempt and other tax-benefited bonds in a manner consistent with state and federal laws applicable to such obligations. II. Post-Issuance Tax Compliance The Treasurer of the Town shall be the primary bond compliance officer responsible for each issuance by the Town of tax-exempt (or otherwise tax-benefited) bonds, notes, financing leases, or other obligations (herein, collectively referred to as “bonds”). All information related to each bond issue and the facilities, equipment and other assets financed by such issue shall be maintained by or on behalf of the Treasurer and the actions taken under subsections A through C of this Section II shall be taken by or on behalf of the Treasurer by the Treasurer or such other officers or employees of the Town as appropriate, including but not limited to, the Treasurer and the Town Auditor. A. Tax Certificate and Continuing Education 1. Tax Certificate - A Tax Certificate is prepared for each issuance of Bonds. Immediately upon issuing any bonds, the Treasurer, in conjunction with the Town’s bond counsel and financial advisor, shall review the Tax Certificate and make notes regarding specific compliance issues for such bond issue on the Post-Issuance Compliance Notes form at Exhibit A. The Tax Certificate and Notes shall clearly define the roles and responsibilities relating to the ongoing compliance activities for each bond issue and will identify specific compliance requirements. 2. Continuing Education - The Treasurer will actively seek out advice of bond counsel on any matters that appear to raise ongoing compliance concerns and may attend or participate in seminars, teleconferences, etc. sponsored by organizations such as the Massachusetts Collector-Treasurer Association and the Massachusetts Government Finance Officers Association that address compliance issues and developments in the public finance bond arena. In addition, national organizations such as the Securities Industry and Financial Markets Association (SIFMA) and the National Association of Bond Lawyers (NABL) offer numerous training opportunities and materials which may be useful to the Treasurer. B. Tax-Exempt Bonds Compliance Monitoring 1. Restrictions against Private Use – The Treasurer will continuously monitor the expenditure of bond proceeds and the use of facilities or equipment financed or refinanced with bonds to ensure compliance with Section 141 of the Internal Revenue Code (the “Code”) which generally establishes limitations on the use of bond-financed facilities by non-state or local governmental entities, such as individuals using bond-financed assets on a basis other than as a member of the general public, corporations and the federal government and its agencies and instrumentalities. | 99 a. Use of Bond Proceeds – the Treasurer will monitor and maintain records with respect to expenditures to ensure that bond proceeds are being used on capital expenditures for governmental purposes in accordance with the bond documents and document the allocation of all bond proceeds. Such monitoring is required not only for tax-exempt bonds, but also for tax credit bonds. b. Use of the Bond-Financed Facility or Equipment i. Equipment assets financed with bonds will be listed in a schedule for each bond issue, which schedule may be included in the Tax Certificate. Equipment assets generally are not to be disposed of prior to the earlier of (a) the date the bonds and all subsequent refundings of such bonds are fully paid, or (b) the end of the useful life of such equipment. The Treasurer will maintain the list of all bond-financed equipment for each bond issue, together with the equipment’s expected useful life. ii. Constructed or acquired assets financed with bonds – in order to ensure that assets constructed or acquired using bond proceeds, such as infrastructure assets, are not leased, sold or disposed of prior to the end of the term of the bonds and of all subsequent refundings of such bonds: • Any asset constructed or acquired with bond proceeds shall be flagged in the Town’s records, and • These projects will be monitored by the Treasurer. iii. If there is any proposal to change the use of a bond-financed facility from a governmental purpose to a use in which a private entity may have the use or benefit of such a facility on a basis that is different from the rest of the general public, the Treasurer will consult with bond counsel prior to the occurrence of the proposed change in use. 2. Qualification for Initial Temporary Periods and Compliance with Restrictions against Hedge Bonds a. Expectations as to Expenditure of “New Money” Bond Proceeds i. In order to qualify under the arbitrage rules for an initial temporary period of 3 years for “new money” issues during which bond proceeds can be invested without regard to yield (but potentially subject to rebate), the Town must reasonably expect to spend at least 85% of “spendable proceeds” by the end of the temporary period. In general under Code Section 149, in order to avoid classification of an issue of bonds as “hedge bonds,” the Town must both (x) reasonably expect to spend 85% of the “spendable proceeds” of the bond issue within the 3 year period beginning on the date the bonds are issued and (y) invest not more than 50% of the proceeds of the issue in investments having a substantially guaranteed yield for 4 years or more. These expectations have been documented for the Town’s outstanding bond issues in the tax certificates executed in connection with each bond issue. ii. If, for any reason, the Town’s expectations concerning the period over which the bond proceeds are to be expended change from what was documented in the applicable tax certificate, the Treasurer will consult with bond counsel. b. Project Draw Schedule Compliance Monitoring – While there are unspent proceeds of a bond issue, the Treasurer will compare and analyze the original anticipated project draw schedule and the actual expenditure payouts and reimbursements on each bond-financed project on an annual or more frequent basis. The purpose of this analysis is to determine the variances from the original expected draw schedule for each project and to document | 100 the reasons for these variances to provide a continual record on the spending progress of each bond-financed project. Factors relevant to the analysis include unexpected delays in the project timelines, extreme weather, contract time extensions due to unexpected events, supplemental agreements and any other factor with a potential to impact the progress or completion of the projects. Generally, there should be no effect on the tax- exempt status of the bonds under either the temporary period rules or the hedge bond rules if the actual disbursements do not meet the original project draw schedule, unless circumstances surrounding the actual events cast doubt on the reasonableness of the stated expectations on the issuance date. Therefore, it is important for the Treasurer to update the progress of each project at least annually, and consult with bond counsel as to any variance from the original schedule. c. Bond Proceeds Expenditure Schedule Compliance Monitoring – While there are unspent proceeds of bonds, the Treasurer will compare and analyze the bond proceeds expenditure schedule and the actual investment earnings on each project on an annual or more frequent basis. The purpose of this analysis is to determine any variances from the expected expenditure schedule and to document the reasons for these variances. 3. Arbitrage Rebate Compliance a. Bonds may lose their tax-favored status, retroactive to the date of issuance, if they do not comply with the arbitrage restrictions of section 148 of the Code. Two general sets of requirements under the Code must be applied in order to determine whether governmental bonds are arbitrage bonds: the yield restriction requirements of section 148(a) and the rebate requirements of section 148(f). b. Yield Restriction Requirements. The yield restriction requirements provide, in general terms, that gross proceeds of a bond issue may not be invested in investments earning a yield higher than the yield of the bond issue, except for investments (i) during one of the temporary periods permitted under the regulations (including the initial three year temporary period described above), (ii) in a reasonably required reserve or replacement fund or (iii) in an amount not in excess of the lesser of 5% of the sale proceeds of the issue or $100,000 (the “minor portion”). Under limited circumstances, the yield on investments subject to yield restriction can be reduced through payments to the IRS known as “yield reduction payments.” The Tax Certificate will identify those funds and accounts associated with a particular issue of bonds known, as of the date of issuance, to be subject to yield restriction. c. Rebate Requirements i. If, consistent with the yield restriction requirements, amounts treated as bond proceeds are permitted to be invested at a yield in excess of the yield on the bonds (pursuant to one of the exceptions to yield restriction referred to above), rebate payments may be required to be made to the U. S. Treasury. Under the applicable regulations, the aggregate rebate amount is the excess of the future value of all the receipts from bond funded investments over the future value of all the payments to acquire such investments. The future value is computed as of the computation date using the bond yield as the interest factor. At least 90% of the rebate amount calculated for the first computation period must be paid no later than 60 days after the end of the first computation period. The amount of rebate payments required for subsequent computation periods (other than the final period) is that amount which, when added to the future value of prior rebate payments, equals at least 90% of the rebate amount. | 101 For the final computation period, 100% of the calculated amount must be paid. Rebate exceptions and expectations are documented for each bond issue in the tax certificate executed at the time of such bond issue. ii. While there are unspent proceeds of bonds, the Town will engage an experienced independent rebate analyst to annually calculate any rebate that may result for that year and annually provide a rebate report to the Treasurer. Bond counsel can assist with referrals to qualified rebate analysts. d. Timing of Rebate Payments - The Treasurer will work with the rebate analyst to ensure the proper calculation and payment of any rebate payment and/or yield-reduction payment at the required time: i. First installment due no later than 60 days after the end of the fifth anniversary of each bond issuance; ii. Succeeding installments at least every five years; iii. Final installment no later than 60 days after retirement of last bond in the issue.1 4. Refunding Requirements a. Refunded Projects. The Treasurer will maintain records of all bond financed assets for each bond issue, including assets originally financed with a refunded bond issue. b. Yield Restriction. The Treasurer will work with its financial advisor and bond counsel to maintain records of allocation of bond proceeds for current and advance refundings of prior bond issues to ensure that such bond proceeds are expended as set forth in the applicable tax certificate executed at the time the refunding bonds are issued. Any yield restricted escrows will be monitored for ongoing compliance. C. Record Retention 1. Section 6001 of the Code provides the general rule for the proper retention of records for federal tax purposes. The IRS regularly advises taxpayers to maintain sufficient records to support their tax deductions, credits and exclusions. In the case of a tax-exempt bond transaction, the primary taxpayers are the bondholders. In the case of other tax benefited bonds, such as “build America bonds” or “recovery zone economic development bonds”, the Town will be treated as the taxpayer. In order to ensure the continued exclusion of interest to such bondholders, it is important that the Town retain sufficient records to support such exclusion. 2. In General a. All records associated with any bond issue shall be stored electronically or in hard copy form at the Town’s offices or at another location conveniently accessible to the Town. b. The Treasurer will ensure that the Town provides for appropriate storage of these records. c. If storing documents electronically, the Town shall conform with Rev. Proc. 97-22, 1997-1 C.B. 652 (as the same may be amended, supplemented or superseded), which provides guidance on maintaining books and records by using an electronic storage system. Bond counsel can furnish a copy of this Revenue Procedure if needed. 3. Bonds - The Town shall maintain the bond record as defined in this section for the longer of the life of the bonds plus 6 years or the life of refunding bonds (or series of refunding bonds) which refunded the bonds plus 6 years. The bond record shall include the following documents: 1 Generally, rebate payments must be paid not later than 60 days after retirement of the last bond in the issue. | 102 a. Pre-Issuance Documents i. Guaranteed Investment Contracts (“GICs”) and Investments (other than Treasury’s State and Local Government Series Securities, “SLGs”) – if applicable, the Treasurer shall retain all documentation regarding the procurement of each GIC or other investment acquired on or before the date of bond issuance, including as applicable the request for bids, bid sheets, documentation of procurement method (i.e., competitive vs. negotiated), etc. If investments other than SLGs are used for a defeasance escrow, the documentation should include an explanation of the reason for the purchase of open market securities and documentation establishing the fair value of the securities and compliance with safe harbor bidding rules. If SLGs are purchased, a copy of the final subscription shall be maintained. ii. Project Draw Schedule – the Treasurer shall retain all documentation and calculations relating to the draw schedule used to meet the “reasonable expectations” test and use of proceeds tests (including copies of contracts with general and sub-contractors or summaries thereof). iii. Issue Sizing – the Treasurer shall maintain a copy of all financial advisor’s or underwriter’s structuring information. iv. Bond Insurance – if procured by the Town, the Treasurer shall maintain a copy of insurance quotes and calculations supporting the cost benefit of bond insurance, if any. v. Costs of Issuance documentation – the Treasurer shall retain all invoices, payments and certificates related to costs of issuance of the bonds. b. Issuance Documents i. The Treasurer shall retain the bound bond transcript delivered from bond counsel. c. Post-Issuance Documents i. Post-Issuance Guaranteed Investment Contracts and Investments (Other than SLGs) – the Treasurer shall retain all documentation regarding the procurement of any GIC or other investment acquired after bond issuance, including as applicable the request for bids, bid sheets, documentation of procurement method (i.e., competitive vs. negotiated), etc. If investments other than SLGs are used for a defeasance escrow, the documentation should include an explanation of the reason for the purchase of open market securities and documentation establishing the fair value of the securities and compliance with safe harbor bidding rules. ii. Records of Investments- shall be retained by the Treasurer. iii. Investment Activity Statements-shall be retained by the Treasurer. iv. Records of Expenditures– the Treasurer shall maintain or shall cause to be maintained all invoices, etc. relating to equipment purchases and constructed or acquired projects, either electronically or in hard copy. v. Records of Compliance • Qualification for Initial Temporary Periods and Compliance with Restrictions Against Hedge Bond Documentation – the Treasurer shall prepare the annual analysis described in Section II(B)(2) above and maintain these records. • Arbitrage Rebate Reports – may be prepared by the Treasurer or a third party as described in section II (B)(3) of this document and retained by the Treasurer. • Returns and Payment – shall be prepared at the direction of the Treasurer and filed as described in Section II(B)(3) of this document. | 103 • Contracts under which any bond proceeds are spent (consulting engineering, acquisition, construction, etc.) - the Treasurer shall obtain copies of these contracts and retain them for the bond record. d. General i. Audited Financial Statements – the Treasurer will maintain copies of the Town’s annual audited Financial Statements. ii. Reports of any prior IRS Examinations – the Treasurer will maintain copies of any written materials pertaining to any IRS examination of the Town’s bonds. III. Voluntarily Correcting Failures to Comply with Post-Issuance Compliance Activities If, in the effort to exercise due diligence in complying with applicable federal tax laws, a potential violation is discovered, the Town may address the violation through the applicable method listed below. The Town should work with its bond counsel to determine the appropriate way to proceed. A. Taking remedial actions as described in Section 141 of the Internal Revenue Code B. Utilizing the Voluntary Closing Agreement Program (VCAP) - Section 7.2.3 of the Internal Revenue Manual establishes the voluntary closing agreement program for tax-exempt bonds (TEB VCAP) whereby issuers of tax-exempt bonds can resolve violations of the Internal Revenue Code through closing agreements with the Internal Revenue Service. IV. Post Issuance Tax Compliance Procedures Review The Treasurer shall review these procedures at least annually, and implement revisions or updates as deemed appropriate, in consultation with bond counsel. POST ISSUANCE COMPLIANCE NOTES [Name of Bonds] Transaction Parties Overall Responsible Party for Debt Management Activities __________________________________ Bond Counsel __________________________________ Paying Agent __________________________________ Rebate Specialist __________________________________ Other __________________________________ | 104 Cash and Investment Policy Approved by Board of Selectmen 05/27/2014 The Investment Policy Statement (IPS) is intended to provide a clear understanding between the Town of Cohasset, “Town”, and its investment advisor(s), “Advisor”, regarding the objectives, goals, risk tolerance and guidelines established by the Town for short and long term funds. The Norfolk County Retirement Board is responsible for the investment of pension funds entrusted to them and any related policies. The Treasurer is responsible for the investment of Other Post-Employment Benefits (OPEB) reserves and any related policies are covered in a separate document. ALL FUNDS A. Authorization The Treasurer has authority to invest municipality/district funds, subject to the statutes of the Commonwealth Massachusetts General Law, Chapter 44, Section 55, 55A & 55B. B. Objectives Massachusetts General Laws, Chapter 44, Section 55B requires the municipal/district treasurer to invest all public funds except those required to be kept uninvested for purposes of immediate distribution. Modern banking systems enable the public treasurer to maintain even these funds in interest bearing form until the date a disbursement order clears through the banking system. State law further requires that invested funds are to be placed at the highest possible rate of interest reasonably available, taking into account the acceptable levels of safety, liquidity and yield. Therefore, these guidelines are intended to further the objective of securing the highest reasonable return available that is consistent with safety of principal while meeting the daily cash requirements for the operation of the entity's business. • Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to preserve capital through the mitigation of credit risk and interest rate risk. These risks shall be mitigated by the diversification and prudent selection of investment instruments, and choice of depository. Credit risk is the risk of loss due to the failure of the security issuer or backer. Interest rate risk is the risk that the market value of the security will fall due to changes in general interest rates. • Liquidity is the next most important objective. The overall investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. Since all possible cash demands cannot be anticipated, the Treasurer shall attempt to carry out investment activities in a manner that provides for meeting unusual or unexpected cash demands without requiring the liquidation of investments that could result in forfeiture of accrued interest earnings, and loss of principal in some cases. • Yield is the third, and last, objective. Investments shall be undertaken so as to achieve a fair market average rate of return, taking into account safety and liquidity constraints as well as all legal requirements. C. Standards of Care | 105 The standard of prudence to be used by the Treasurer shall be the “Prudent Person” standard and shall be applied in the context of managing an overall portfolio. The Treasurer, acting in accordance with written procedures and this IPS, and exercising reasonable due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided the purchases and sale of securities is carried out in accordance with the terms of this IPS. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs; not for speculation, but for investment considering the probable safety of their capital as well as the probable income to be derived. In addition this section would also apply to M.G.L., Chapter 44, Section 55A, which refers to the liability of the Treasurer for losses due to bankruptcy. D. RISK • Credit Risk “Credit risk” is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Treasurer will manage credit risk several ways. There will be no limit to the amount of United States Treasury and United States Government Agency obligations. In regards to other investments, the Treasurer will only purchase investment grade securities with a high concentration in securities rated A or better. The Treasurer may invest in the Massachusetts Municipal Depository Trust (MMDT) with no limit to the amount of funds placed in the fund. The Treasurer may place funds in banking institutions as stated in the Investment Instruments Sections of this IPS. • Custodial Risk The “custodial credit risk” for deposits is the risk that, in the event of the failure of a depository financial institution, a municipality will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a municipality will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The Treasurer will review the financial institution’s financial statements and the background of the Advisor. The intent of this qualification is to limit the Town’s exposure to only those institutions with a proven financial strength, capital adequacy of the firm and overall affirmative reputation in the municipal industry. Further, all securities not held directly by the Town, will be held in the Town’s name and tax identification number by a third-party custodian approved by the Treasurer and evidenced by safekeeping receipts showing individual CUSIP numbers for each security. • Concentration of Credit Risk “Concentration of credit risk” is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. | 106 The Treasurer will minimize concentration of credit risk by diversifying the investment portfolio so that the impact of potential losses from any one type of security or issuer will be minimized. • Interest Rate Risk “Interest rate risk” is the risk that changes in interest rates will adversely affect the fair value of an investment. The Treasurer will manage interest rate risk by managing duration in the account. • Foreign Currency Risk “Foreign currency risk” is the risk that changes in foreign monetary exchange rates will adversely affect the fair value of an investment or a deposit. The Treasurer will not invest in any instrument exposed to foreign currency risk. • Liquidity Risk “Liquidity risk” is the risk that that an investment cannot be sold quickly enough to prevent or minimize a loss. The Treasurer will manage liquidity risk by 1: monitoring short-term liabilities versus short term assets and 2: avoiding high liquidity risk investments entirely. E. Diversification Diversification should be interpreted in three ways: in terms of maturity as well as instrument type and issuer. The diversification concept should include prohibition against over concentration of maturities, as well as concentration in a specific institution. With the exception of U.S. Treasury obligations or investments fully collateralized by U.S. Treasuries or agencies, and State pools (MMDT), no more than 25% of the Town's investments shall be invested in a single unsecured financial institution. F. Ethics The Treasurer/Collector, Deputy Treasurer/Collector and Assistant Treasurer/Collector shall refrain from any personal activity that may conflict with the proper execution of the investment program or which could impair or appear to impair ability to make impartial investment decisions. Said individuals shall disclose to the Town Manager any material financial interest in financial institutions that do business with the Town. They shall also disclose any large personal financial investment positions or loans that could be related to the performance of the Town's investments. G. Relationship with Financial Institutions Financial institutions should be selected first and foremost with regard to their financial soundness and stability. The Treasurer will refer to the rating services, certifications, designations, and memberships including but not limited to those listed below: • Veribanc Rating Service is an independent company that provides bank ratings on all U.S. federally insured financial institutions. • Financial Industry Regulatory Authority (FINRA) membership: FINRA an independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. • The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the federal government that insures deposits in banks and thrift institutions for at least $250,000 | 107 • Depositors Insurance Fund (DIF) is a private, industry-sponsored insurance fund that insures all deposits above FDIC limits at Massachusetts-chartered savings banks. • The Share Insurance Fund (SIF) is a private fund owned by the member co-operative banks, which insures all deposits at co-operative banks in Massachusetts above Federal Deposit Insurance Corporation (FDIC) limits • Securities Investor Protection Corporation (SIPC) provides up to $500,000 insurance against a failed member brokerage firm. • Excess SIPC is additional account protection beyond SIPC’s limits provided through private arrangements between securities firms and insurance companies. • Accredited Investment Fiduciary (AIF) designation represents a thorough knowledge of and ability to apply fiduciary practices. • Research disclosure reports for brokers, investment advisors, firms and individuals (BrokerCheck on www.FINRA.org) The Treasurer shall require any brokerage houses and broker/dealers wishing to do business with the municipality to supply the following information to the Treasurer on an annual basis: • Audited financial statements • If acting as a Registered Investment Advisor, copy of their Form ADV Part II • Proof of FINRA membership • A statement that the Advisor has read the municipality's IPS and will comply with it on an annual basis • Proof of credit worthiness (minimum standards: at least five years in operation and a minimum capital of 500 million dollars) H. Restrictions Chapter 44, Section 55 sets forth several restrictions that the Treasurer must be aware of when making investment selections. • A Treasurer shall not at any one time have on deposit in a bank or trust company an amount exceeding 60% of the capital and surplus of such bank or trust company, or banking company, unless satisfactory security is given to it by such bank or trust company for such excess. • The Treasurer shall not make a deposit in any bank, trust company or banking company with which (s)he is, or for any time during the three years immediately preceding the date of any such deposit was, associated as an officer or employee. • All securities shall have a maturity from date of purchase of one year or less. • Purchases under an agreement with a trust company, national bank or banking company to repurchase at not less than original purchase price of said securities on a fixed date shall not exceed ninety days. I. Reporting and Review Requirements On a quarterly basis, a report containing the following information will be prepared by the Treasurer and distributed to the Town Manager. The quarterly report will include the following information, as a minimum requirement: • A listing of the individual accounts and individual securities held at the end of the reporting period. | 108 • A listing of the short-term investment portfolio by security type and maturity to ensure compliance with the diversification and maturity guidelines established in the "Diversification" section of this IPS. • A summary of the income earned on a year-to-date basis. • A brief statement of general market and economic conditions and other factors that may affect the Town's cash position. • A demonstration of the degree of compliance with the tenets set forth in the IPS. This policy will be reviewed at least annually. J. Legal References • Massachusetts General Law, Chapter 29, Section 38A; Investment funds; establishment; sale of participation units • Massachusetts General Law, Chapter 44, Section 54; Investment of trust funds • Massachusetts General Law, Chapter 44, Section 55; Public funds on deposit; limitations; investments • Massachusetts General Law, Chapter 44, Section 55A; Liability of depositor for losses due to bankruptcy • Massachusetts General Law, Chapter 44, Section 55B; Investment of public funds • Massachusetts General Law, Chapter 167, Section 15A; Annual list of legal investments K. Definitions General Funds – All funds of the town and its utilities and enterprises generated through normal operations and borrowing except for Special Revenue Funds, Permanent Trust Funds, Private Purpose Funds, Retirement Funds, and OPEB Funds. Enterprise Funds – All funds generated through normal operations and borrowing of a municipal enterprise. Special Revenue Funds – Trust funds where earnings must be used for governmental purposes, such as Stabilization Fund, Pension Reserve Funds, Law Enforcement Trust Funds, Conservation Fund, Unemployment Compensation Funds, Municipal Buildings Trust Fund, Ambulance Receipts Reserve Fund, Health Claims Trust Fund. Permanent Trust Funds – an ongoing gift to support a specified purpose, program or activity of the municipality. Unless otherwise specified the original principal is non-expendable and the earnings are expendable in keeping with the instructions of the donor. Examples include scholarship, cemetery, and library funds. Private Purpose Funds – Funds entrusted to the Town where principal and income benefits individuals, private organizations and other government, such as scholarship, cemetery, and library funds. The full principal and income amount is expendable. Retirement Funds – Assets of the Norfolk County Contributory Retirement System held separately from Town funds and managed under MGL Chapter 32 Retirement Systems and Pensions. Such funds are not subject to this Investment Policy Statement. Other Post Employment Benefit (OPEB) Funds – Retiree benefit funds held separately pursuant to MGL Chapter 32B Section 20; Other Post-Employment Benefits Liability Trust fund; local option funding schedule. Such funds are not subject to this Investment Policy Statement. | 109 Short Term Funds – Funds that will or may be disbursed within the next twelve (12) months. Long Term Funds – Funds that are expected to remain invested for at least the next twelve (12) months. GENERAL FUNDS A. Scope This section of the IPS applies only to General Funds, and other short term funds such as Student Activity Funds. B. Strategy The Treasurer will invest in accordance with Investment Instrument Section below primarily focusing on safety, then liquidity, then yield. C. Investment Instruments Note: Public investments in Massachusetts are not protected through provisions in State law. Therefore, they are largely uncollateralized. Many banking institutions are willing to put up collateral, albeit at a cost to the entity resulting in a lower interest rate. The Treasurer negotiates for the highest rates possible, consistent with safety principles. The Treasurer may invest in the following instruments: • Massachusetts State pooled fund: Unlimited amounts (Pool is liquid) The Massachusetts Municipal Depository Trust (MMDT), an investment pool for state, local, county and other independent governmental authorities, is under the auspices of the State Treasurer and currently managed by Fidelity Investments. It invests in Bankers Acceptances, Commercial Paper of high quality, Bank Certificates of Deposit, Repurchase agreements (Repos), and U. S. Treasury Obligations. It has Federal Deposit Insurance Corporation (F.D.I.C.) pass-through insurance on the CD's up to the standard limits and takes delivery on the Repos and Treasuries. Under Government Accounting Standards Board Regulation (GASB III), it is not considered an uncollateralized product. • U. S. Treasuries that will be held to maturity: Unlimited amounts (Up to one year maturity from date of purchase) • U.S. Agency obligations that will be held to maturity. Unlimited amounts (Up to one year maturity from date of purchase) • Bank accounts or Certificates of Deposit (“CDs”) (Up to one year) which are fully collateralized through a third party agreement: Unlimited Amounts • Bank accounts and CDs (Up to one year) insured by F.D.I.C. up to the coverage limit. All bank accounts and CDs in one institution are considered in the aggregate for the insurance coverage limit. In some cases banking institutions carry additional insurance, such as Depository Insurance Fund (D.I.F.): Amount of excess coverage varies per bank. | 110 • Unsecured bank deposits of any kind such as other checking, savings, money market, or Certificates of Deposit accounts at banks that do not fit the above categories. These investments are subject to the following limitations: No more than 5% of an institution's assets and no more than 25% of a municipality's cash may be comprised of unsecured bank deposits. This percentage may be increased for not more than 30 days during times of heavy collection or in anticipation of large payments that will be made by the Town in the near future, i.e. debt service payments. Their credit worthiness will be tracked by Veribanc, or other bank credit worthiness reporting systems. They will be diversified as much as possible. CDs will be purchased for no more than one year and will be reviewed frequently. • Money Market Mutual Funds that are registered with the Securities and Exchange Commission that have received the highest possible rating from at least one nationally recognized statistical rating organization and as otherwise referenced in the Massachusetts General Law Chapter 44, Section 55. EXPENDABLE TRUST FUNDS A. Scope This section of the IPS applies only to Expendable Trust funds including Special Revenue Funds (i.e. Stabilization, Pension Reserve, and Community Preservation) and Private Purpose Funds. All accounts will be maintained separately receiving their proportionate interest and any realized and unrealized gains or losses. The account may be established as a pooled investment portfolio unless otherwise stated. Any additional accounts will be maintained in this same manner. B. Strategy The Investment Manager will utilize the following investment guidelines in terms of asset allocation. This Income and Growth allocation, over the long-term, is meant to provide lower volatility and enhance the growth of the portfolio. This policy and allocation is subject to review and amendment at any time. All assets will be invested in accordance with Investment Instrument Section. The portfolio will be reviewed quarterly and rebalanced based on cash flow and market volatility. 0 - 10% Cash and cash equivalents - normalized at 2%. Cash will be maintained to provide periodic cash distributions. Cash will not normally be held as a strategic investment asset, although the Investment Manager may seek to allow cash to build to the maximum level in times of market uncertainty. 60 - 80% Fixed Income - normalized at 68%. To ensure appropriate diversification and to minimize default risk, the trust fund will be invested primarily in high-quality taxable bonds, notes, and mutual funds. The fixed income allocation exists to provide income and to dampen the volatility from the fund's equity holding s. 20 - 40% Equities - normalized at 30%. Within the constraints of the MA Legal List, equities will be selected based on company quality and industry diversification. Equity allocation exists to enhance the long term return of the portfolio and lower risk during periods of increasing interest rates. An appropriate benchmark for the overall asset class of equities, as well as each sub-strategy, will be determined and agreed upon between the Client and the Investment Manager. | 111 C. Investment Instruments M.G.L., Chapter 44, Section 54 states that money should be deposited into savings bank, trust companies incorporated under the laws of the Commonwealth, banking companies incorporated under the laws of the Commonwealth which are members of the Federal Deposit Insurance Corporation, or national banks, or invested in participation units in a combined investment fund under Section 38 A of Chapter 29, or in a paid–up shares and accounts of and in co-operative banks, or in shares of savings and loan associations or in share or savings deposits of federal savings and loan associations doing business in the Commonwealth. Additionally the Town may invest such funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the Commonwealth; provided, that not more than fifteen percent (15%) of any such trust funds shall be invested in bank stocks and insurance company stocks, nor shall more than one and one-half percent (1 ½%) of such funds be invested in the stock of any one bank or insurance company. See attached the Commonwealth of Massachusetts List of Legal Investments. In addition to all instruments listed under the GENERAL FUNDS sections, the Treasurer may invest in any of the following instruments: • U. S. Treasuries that maybe sold prior to maturity: Unlimited amounts (With no limit to the length of maturity from date of purchase) • U.S. Agency obligations that maybe sold prior to maturity. Unlimited amounts (With no limit to the length of maturity from date of purchase) • Bank accounts or Certificates of Deposit (“CDs”) Unlimited amounts (With no limit to the length of maturity from date of purchase), which is fully collateralized through a third party agreement. • Bank accounts and CDs (With no limit to the length of maturity from date of purchase) fully insured by F.D.I.C. and in some cases also Depository Insurance Fund of Massachusetts (D.I.F.). All bank accounts and CDs in one institution are considered in the aggregate to receive the insurance coverage limit. • Common and preferred stock that are listed in the List of Legal Investments. • Investment Funds that are listed in the List of Legal Investments. • All other items not separately identified here that are listed in the List of Legal Investments. PERMANENT TRUST FUNDS A. Scope This section of the IPS applies only to funds that could be invested long term such as Permanent Trust Funds. The principal amount of Permanent Trust Funds is non-expendable. Income can be expended in accordance with the donor’s instructions. | 112 All accounts will be maintained separately receiving their proportionate interest and any realized and unrealized gains or losses. The account may be established as a pooled investment portfolio unless otherwise stated. Any additional accounts will be maintained in this same manner. B. Strategy The Investment Manager will utilize the following investment guidelines in terms of asset allocation. This BALANCED allocation, over the long-term, is meant to provide lower volatility and enhance the growth of the portfolio. This policy and allocation is subject to review and amendment at any time. All assets will be invested in accordance with the Investment Instruments section. The portfolio will be reviewed quarterly and rebalanced based on cash flow and market volatility. 0 - 10% Cash and cash equivalents - normalized at 2%. Cash will be maintained to provide periodic cash distributions. Cash will not normally be held as a strategic investment asset, although the Investment Manager may seek to allow cash to build to the maximum level in times of market uncertainty. 30 - 50% Fixed Income - normalized at 43%. To ensure appropriate diversification and to minimize default risk, the trust fund will be invested primarily in high-quality taxable bonds, notes, and mutual funds. The fixed income allocation exists to provide income and to dampen the volatility from the fund's equity holdings. 40 - 70% Equities - normalized at 55%. Within the constraints of the MA Legal List, equities will be selected based on company quality and industry diversification. Equity allocation exists to enhance the long term return of the portfolio and lower risk during periods of increasing interest rates. An appropriate benchmark for the overall asset class of equities, as well as each sub-strategy, will be determined and agreed upon between the Client and the Investment Manager. C. Investment Instruments M.G.L., Chapter 44, Section 54 states that money should be deposited into savings bank, trust companies incorporated under the laws of the Commonwealth, banking companies incorporated under the laws of the Commonwealth which are members of the Federal Deposit Insurance Corporation, or national banks, or invested in participation units in a combined investment fund under Section 38 A of Chapter 29, or in a paid–up shares and accounts of and in co-operative banks, or in shares of savings and loan associations or in share or savings deposits of federal savings and loan associations doing business in the Commonwealth. Additionally the Town may invest such funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the Commonwealth; provided, that not more than fifteen percent (15%) of any such trust funds shall be invested in bank stocks and insurance company stocks, nor shall more than one and one-half percent (1 ½%) of such funds be invested in the stock of any one bank or insurance company. See attached the Commonwealth of Massachusetts List of Legal Investments. The Treasurer may invest in the same instruments listed under EXPENDABLE TRUST FUNDS: | 113 Special Education Reserve Fund Policy | 114 | 115 Fraud Risk Policy Adopted by Board of Selectmen: August 9, 2016 The Town of Cohasset is committed to protecting its revenue, propert y, information, and other assets from an y attempt, either by members of the public, contractors, vendors, agents or its own employees, to gain b y deceit, financial or other benefits at the expense of the taxpayers. Town Officials and employees must, at all times, comply with all applicable laws and regulations. The Town will not condone the activities of officials or employees who achieve results through violation of the law or unethical business dealings. The Town does not permit any activity that fails to stand the closest possible public scrutiny. This policy sets out specific guidelines and responsibilities regarding appropriate actions that must be followed for the investigation of fraud and other similar irregularities. Definitions Occupational fraud is defined by the Association of Certified Fraud Examiners as the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. There are three major categories of occupational fraud. • Asset Misappropriations – Theft or misuse of an organization’s assets. o Cash  Fraudulent Disbursements – Perpetrator causes organization to disburse funds through some trick or device (e.g. submitting false invoices/time card/sheets, expense reimbursement schemes, check tampering, etc.)  Skimming – Cash is stolen from an organization before it is recorded on the organization’s books and records.  Cash Larcen y – Cash is stolen from an organization after it has been recorded on the organization’s books and records. o Inventor y and all other assets  Misuse – Misuse of an organization’s inventory or assets for personal use (e.g. vehicles, computers, supplies, etc.)  Larcen y – Inventory or other assets are stolen from an organization. | 116 • Corruption – Wrongfully use influence in a business transaction in order to procure some benefit for themselves or another person, contrary to duty to employer or the rights of another. o Conflicts of Interest – An undisclosed economic or personal interest in a transaction that adversely affects the emplo yer. o Bribery – The offering, giving, receiving, or soliciting of an ything of value to influence an official act or business decision. o Illegal Gratuities – A part y who benefits from an official act or a business decision gives a gift to a person who made the decision. An illegal gratuity does not require proof of an intent to influence. o Economic Extortion – An employee demands that a vendor/contractor/etc. pay to influence an official act or a business decision. • Fraudulent Statements – Falsification of an organization’s financial statements. Other similar irregularities is defined as any activity involving questionable behavior or business dealings b y members of the public, contractors, vendors, agents or government employees, that put government revenue, propert y, information and other assets at risk of waste or abuse. Applicability This policy applies to all Elected Officials and employees of the Town of Cohasset as well as any business or individual doing business with the government. General Policy and Responsibility 1. It is the government’s intent to fully investigate any suspected acts of fraud or other similar irregularit y. An objective and impartial investigation will be conducted regardless of the position, title, and length of service or relationship with the government of an y party who might be or becomes involved in or becomes/is the subject of such investigation. 2. Each Elected Official, Department Director, Commissioner and Manager is responsible for instituting and maintaining a s ystem of internal control to provide reasonable assurance for the prevention and detection of fraud, misappropriations and other irregularities. Management should be familiar with the t ypes of improprieties that might occur within their area of responsibility and be alert for an y indications of such conduct. 3. The Office of the Town Manager has the primary responsibilit y for the investigation of all activity defined in this policy. | 117 4. The Town Manager will notify the Board of Selectmen of a reported allegation of fraudulent or irregular co nduct upon the commencement of the investigation to the extent practical. Throughout the investigation the Board of Selectmen will be informed of pertinent investigative findings. 5. In all circumstance where there are reasonable grounds to indicate that a fraud ma y have occurred, the Town Manager, subject to the advice of the Board of Selectmen, will contact the office of the District Attorney and/or t he Town of Cohasset Police. 6. Upon conclusion of the investigation, the results will be reported to the members of the Board of Selectmen, and others as determined necessary. 7. The Town Manager will pursue ever y reasonable effort, including court ordered restitution, to obtain recovery of the Town’s losses from the offender, or other appropriate source. Procedures 1. All Employees Any emplo yee who has knowledge of an occurrence of irregular conduct, or has reason to suspect that a fraud has occurred, shall immediately notif y his/her supervisor. If the employee has reason to believe that their supervisor may be involved or does not feel comfortable reporting the occurrence to their supervisor, the employee shall immediately notify the Town Manager. Employees have a dut y to cooperate during an investigation. Employees who knowingly make false allegations will be subject to discipline and possible termination of employment. 2. Town management Elected Officials Upon notification from an employee of suspected fraud, or if management has reason to suspect that a fraud has occurred, they shall immediately notif y the Town Manager. 3. Office of the Town Manager Upon notification or discovery of a suspected fraud, the Town Manager will promptly investigate the suspected fraud. In all circumstances, where there are reasonable grounds to indicate that a fraud may have occurred, the Town Manager will inform the Board of Selectmen. Subject to the advice of the Board of Selectmen, the Town Manager will contact the Office of the District Attorney and/or the Town of Cohasset Police. | 118 4. Contacts/Protocols After an initial review and a determination that the suspected fraud warrants additional investigation, the Town Manager will notify the Board of Selectmen. The Town Manager will coordinate the investigation with the Board of Selectmen and appropriate law enforcement officials. 5. Security of Evidence Once a suspected fraud is reported, the Town Manager, in consultation with the Board of Selectmen, shall take immediate action to prevent the theft, alteration, or destruction of relevant records. Such actions include, but are not necessaril y limited to, removing the records and placing them in a secure location, limiting access to the location where the records currently exist, and preventing the individual suspected of committing the fraud from having access to the records. The records must be adequatel y secured until the Town Manager obtains the records to begin the audit investigation. 6. Personnel Actions If a suspicion of fraud is substantiated by the investigation, disciplinary action shall be taken by the Appointing Authority, in consultation with the Town Manager, and the Board of Selectmen. 7. Whistle-Blower Protection Under Massachusetts General Law Chapter 149, paragraphs 148A, 185 and 187, no employer or person acting on behalf of an emplo yer shall: Dismiss or threaten to dismiss an employee Discipline or suspend, or threaten to discipline or suspend, an emplo yee Impose an y penalty upon an employee; or Intimidate or coerce an employee because the emplo yee has acted in accordance with the requirements of this policy. The violation of this section will result in discipline up to and including dismissal in accordance with the applicable federal, state, and l ocal administrative laws. 8. Media Issues Any Town emplo yee or elected official contacted by the media with respect to an audit investigation shall refer the media to the Town Manager. The alleged fraud or audit investigation shall not be discussed with the media by an y person other than the through the Town Manager. | 119 If the Town Manager is contacted b y the media regarding an alleged fraud or audit investigation, the y will consult the Board of Selectmen, before responding to a media request. Neither the Town Manager, nor the Board of Selectmen will discuss the details of an y ongoing fraud investigation with the media that may compromise the integrity of the investigation. 9. Documentation At the conclusion of the investigation, the results will be reported to the members of the Board of Selectmen, and others as determined necessary. If the report concludes that the allegations are founded, the report will be forwarded to the Office of the District Attorney and/or the Town of Cohasset Police. 10. Completion of the Investigation Upon completion of the investigation, including all legal and personnel action, any records, documents and other evidentiar y material will be returned b y the Town Manager to the appropriate department. 11. Training New employees are trained at the time of hiring about the Town’s Code of Conduct and Fraud Polic y. This training explicitly covers expectations of all employees regarding: (1) Their dut y to communicate certain matters; (2) A list of the types of matters, including actual or suspected fraud, to be communicated along wit h specific examples; and (3) Information on how to communicate those matters. | 120 Whistleblower Policy Whistleblower Policy Adopted by Board of Selectmen: August 9, 2016 POLICY General The Town of Cohasset requires employees to observe high standards of business and personal ethics in the conduct of their duties and responsibilities. As employees and representatives of the Town of Cohasset, we must practice honesty and integrity in fulfilling our responsibilities and comply with all applicable laws and regulations. Reporting Responsibility It is the responsibility of all employees to report violations or suspected fraud, including questionable accounting or auditing practices in accordance with this Whistleblower Policy. No Retaliation No employee who in good faith reports a violation shall suffer harassment, retaliation or adverse employment consequence. An employee who retaliates against someone who has reported a violation in good faith is subject to discipline up to and including termination of employment. This Whistleblower Policy is intended to encourage and enable employees and others to raise serious concerns within the Town prior to seeking resolution outside the Town. Reporting Violations The Town of Cohasset has an open door policy and suggests that employees share their questions, concerns, suggestions or complaints with someone who can address them properly. In most cases, an employee’s supervisor is in the best position to address an area of concern. However, if you are not comfortable speaking with your supervisor or you are not satisfied with your supervisor’s response, you are encouraged to speak with someone in the Finance Department or anyone in management whom you are comfortable approaching. Supervisors and managers are required to report suspected violations or fraud to the Town Finance Director. For suspected fraud, or when you are not satisfied, or uncomfortable with following the Town’s open door policy, individuals should contact the Town’s independent audit firm directly. | 121 Finance Department The Town’s Finance Director is responsible for investigating and resolving all reported complaints and allegations concerning potential instances of fraud or abuse and questionable accounting or auditing practices. At his discretion, he shall advise the Town Manager, who has direct access to the Town ’s independent audit firm and is required to report to the auditor any fraud, abuse or questionable practices. Accounting and Auditing Matters The Finance Director shall address all reported concerns or complaints regarding auditing practices, internal controls or auditing. The Town Finance Director shall immediately notify the Town’s independent auditor of any such complaint and work until the matter is resolved. Acting in Good Faith Anyone filing a complaint concerning a violation or suspected violation must be acting in good faith and have reasonable grounds for believing the information disclosed indicates a violation. Any allegations that prove not to be substantiated and which prove to have been made maliciously or knowingly to be false will be viewed as a serious disciplinary offense. Confidentiality Violations or suspected violations may be submitted on a confidential basis by the complainant or may be submitted anonymously. Reports of violations or suspected violations will be kept confidential to the extent possible, consistent with the need to conduct an adequate investigation. Handling of Reported Violations The Finance Director will notify the sender and acknowledge receipt of the reported violation or suspected violation within five business days. All reports will be promptly investigated and appropriate corrective action will be taken if warranted by the investigation. Contacts Finance Director 781-383-4110 X 116 Audit Firm (Powers and Sullivan) 781-914-1700 Town Manager 781-383-4105 X 109 | 122 GLOSSARY OF TERMS Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit. Accounting System: The total structure of records and procedures that identify record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, account groups, and organizational components. Accrued Interest: The amount of interest that has accumulated on the bond since the date of the last interest payment, and in the sale of a bond, the amount accrued up to but not including the date of delivery (settlement date). (See Interest) Amortization: The gradual repayment of an obligation over time and in accordance with a predetermined payment schedule. Appellate Tax Board (ATB): Appointed by the governor, the ATB has jurisdiction to decide appeals from local decisions relating to property taxes, motor vehicle excises, state owned land (SOL) valuations, exemption eligibility, property classification, and equalized valuations. Appropriation: An authorization granted by a town meeting, city council or other legislative body to expend money and incur obligations for specific public purposes. An appropriation is usually limited in amount and as to the time period within which it may be expended. (See Encumbrance, Free Cash) Arbitrage: As applied to municipal debt, the investment of tax-exempt bonds or note proceeds in higher yielding, taxable securities. Section 103 of the Internal Revenue Service (IRS) Code restricts this practice and req uires (beyond certain limits) that earnings be rebated (paid) to the IRS. Assessed Valuation: A value assigned to real estate or other property by a government as the basis for levying taxes. In Massachusetts, assessed valuation is based on the property's full and fair cash value as set by the Assessors. (See Full and Fair Cash Value) Audit: An examination of a community's financial systems, procedures, and data by a certified public accountant (independent auditor), and a report on the fairness of financial statements and on local compliance with statutes and regulations. The audit serves as a valuable management tool for evaluating the fiscal performance of a community. Audit Report: Prepared by an independent auditor, an audit report includes: (a) a statement of the scope of the audit; (b) explanatory comments as to application of auditing procedures; (c) findings and opinions; (d) financial statements and schedules; and (e) statistical tables, supplementary comments, and recommendations. It is almost always accompanied by a management letter. Available Funds: Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other onetime costs. Examples of available funds include free cash, stabilization funds, overlay surplus, water surplus, and enterprise net assets unrestricted (formerly retained earnings). Balance Sheet: A statement that discloses the assets, liabilities, reserves and equities of a fund or governmental unit at a specified date. | 123 Betterments (Special Assessments): Whenever a specific area of a community receives benefit from a public improvement (e.g., water, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental entity for all or part of th e costs it incurred. Each parcel receiving benefit from the improvement is assessed for its proportionate share of the cost of such improvements. The proportionate share may be paid in full or the property owner may request that the assessors apportion the betterment over 20 years. Over the life of the betterment, one year’s apportionment along with one year’s committed interest computed from October 1 to October 1 is added to the tax bill until the betterment has been paid. Bond: A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year. (See Note) Bond and Interest Record: (Bond Register) – The permanent and complete record maintained by a treasurer for each bond issue. It shows the amount of interest and principal coming due each date and all other pertinent information concerning the bond issue. Bond Anticipation Note (BAN): Short-term debt instrument used to generate cash for initial project costs and with the expectation that the debt will be replaced later by permanent bonding. Typically issued for a term of less than one year, BANs may be re-issued for up to ten years, provided principal repayment begins after two years (MGL Ch. 44 §17). Principal payments on school related BANs may be deferred up to seven years (increased in 2002 from five years) if the community has an approved project on the Massachusetts School Building Authority (MSBA) priority list. BANs a re full faith and credit obligations. Bond Authorization: The action of town meeting or a city council authorizing the executive branch to raise money through the sale of bonds in a specific amount and for a specific purpose. Once authorized, issuance is by the treasurer upon the signature of the mayor, or selectmen. (See Bond issue) Bonds Authorized and Unissued: Balance of a bond authorization not yet sold. Upon completion or abandonment of a project, any remaining balance of authorized and unissued bonds may not be used for other purposes, but must be rescinded by town meeting or the city council to be removed from community's books. Bond Issue: Generally, the sale of a certain number of bonds at one time by a governmental unit. Bond Rating (Municipal): A credit rating assigned to a municipality to help investors assess the future ability, legal obligation, and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps prospective investors determine the level of risk associated with a given fixed-income investment. Rating agencies, such as Moody's and Standard and Poors, use rating systems, which designate a letter or a combination of letters and numerals where AAA is the highest rating and C1 is a very low rating. Budget: A plan for allocating resources to support particular services, purposes and functions over a specified period of time. (See Performance Budget, Program Budget) Budget Message: A statement that, among other things, offers context by summarizing the main points of a budget, explains priorities, describes underlying policies that drive funding decisions, and otherwise justifies the expenditure plan and provides a vision for the future. Budget Unit: A board or department to which the municipality’s legislative body appropriates funds. | 124 Capital Assets: All tangible property used in the operation of government, which is not easily converted into cash, and has an initial useful live extending beyond a single financial reporting period. Capital assets include land and land improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements; vehicles, machinery and equipment. Communities typically define capital assets in terms of a minimum usef ul life and a minimum initial cost. (See Fixed Assets) Capital Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements. Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Assets, Fixed Assets) Capital Improvements Program: A blueprint for planning a community's capital expenditures that comprises an annual capital budget and a five-year capital program. It coordinates community planning, fiscal capacity and physical development. While all of the community’s needs should be identified in the program, there is a set of criteria that prioritizes the expenditures. Capital Outlay Expenditure Exclusion: A temporary increase in the tax levy to fund a capital project or make a capital acquisition. Exclusions require two-thirds vote of the selectmen or city council (sometimes with the mayor’s approval) and a majority vote in a community-wide referendum. The exclusion is added to the tax levy only during the year in which the project is being funded and may increase the tax levy above the levy ceiling. Cash: Currency, coin, checks, postal and express money orders and bankers’ drafts on hand or on deposit with an official or agent designated as custodian of cash and bank deposits. Cash Management: The process of monitoring the ebb and flow of money in an out of municipal accounts to ensure cash availability to pay bills and to facilitate decisions on the need for short-term borrowing and investment of idle cash. Cemetery Perpetual Care: These funds are donated by individuals for the care of grave sites. According to Ch. 114, s 25, funds from this account must be invested and spent as directed by perpetual care agreements. If no agreements exist, interest (but not principal) may be used as directed by the cemetery commissioners for the purpose of maintaining cemeteries. Certification: Verification of authenticity. Can refer to the action of a bank, trust company, or DOR’s Bureau of Accounts (BOA) in the issuance of State House Notes, to confirm the genuineness of the municipal signatures and seal on bond issues. The certifying agency may also supervise the printing of bonds and otherwise safeguard their preparation against fraud, counterfeiting, or overissue. Also refers to the certification by the Bureau of Local Assessment (BLA) that a community’s assessed values represent full and fair cash value (FFCV ). (See Triennial Certification) Certificate of Deposit (CD): A bank deposit evidenced by a negotiable or non-negotiable instrument, which provides on its face that the amount of such deposit plus a specified interest payable to a bearer or to any specified person on a certain specified date, at the expiration of a certain specified time, or upon notice in writing. Cherry Sheet: Named for the cherry colored paper on which they were originally printed, the Cherry Sheet is the official notification to cities, towns and regional school districts of the next fiscal year’s state aid and assessments. The aid is in the form of distributions, which provide funds based on formulas and reimbursements that provide funds for costs incurred during a prior period for certain programs or | 125 services. Links to the Cherry Sheets are located on the DLS website at www.mass.gov/dls. (See Cherry Sheet Assessments, Estimated Receipts) Cherry Sheet Assessments: Estimates of annual charges to cover the cost of certain state and county programs. Cherry Sheet Offset Items: Local aid that may be spent without appropriation in the budget, but which must be spent for specific municipal and regional school district programs. Current offset items include racial equality grants, school lunch grants, and public libraries grants. (See Offset Receipts) Classification of Real Property: Assessors are required to classify all real property according to use into one of four classes: residential, open space, commercial, and industrial. Having classified its real properties, local officials are permitted to determine locally, within limitations established by statute and the Commissioner of Revenue, what percentage of the tax burden is to be borne by each class of real property and by personal property owners. (see Classification of the Tax Rate). Classification of the Tax Rate: Each year, the selectmen or city council vote whether to exercise certain tax rate options. Those options include choosing a residential factor (MGL Ch.40 §56), and determining whether to offer an open space discount, a residential exemption (Ch. 59, §5C), and/or a small commercial exemption (Ch. 59, §5I) to property owners. Collective Bargaining: The process of negotiating workers' wages, hours, benefits, working conditions, etc., between an employer and some or all of its employees, who are represented by a recognized labor union. Community Preservation Act (CPA): Enacted as MGL Ch. 44B in 2000, CPA permits cities and towns accepting its provisions to establish a restricted fund from which monies can be appropriated only for a) the acquisition, creation and preservation of open space; b) the acquisition, preservation, rehabilitation, and restoration of historic resources; and c) the acquisition, creation and preservation of land for recreational use; d) the creation, preservation and support of community housing; and e) the rehabilitation and restoration of open space, land for recreational use and community housing that is acquired or created using monies from the fund. Acceptance requires town meeting or city council approval or a citizen petition, together with referendum approval by majority vote. The local program is funded by a local surcharge up to 3 percent on real property tax bills and matching dollars from the state generated from registry of deeds fees. (See DOR IGR 00-209 as amended by IGR 01-207 and IGR 02-208) Community Preservation Fund: A special revenue fund established pursuant to MGL Ch.44B to receive all monies collected to support a community preservation program, including but not limited to, tax surcharge receipts, proceeds from borrowings, funds received from the Commonwealth, and proceeds from the sale of certain real estate. Compensating Balance Agreement: An alternative to the payment of direct fees for banking services. In this case, a bank specifies a minimum balance that the municipality must maintain in non-interest bearing accounts. The bank can then lend this money (subject to a reserve requirement) and earn interest, which will at least cover the cost of services provided to the municipality. Compensating balance agreements are permitted under MGL Ch. 44 §53F and must be approved annually by town meeting or the city council. Conservation Fund: A city or town may appropriate money to a conservation fund. This money may be expended by the conservation commission for lawf ul conservation purposes as described in MGL Ch. 40 §8C. The money may also be expended by the conservation commission for damages arising from an | 126 eminent domain taking provided that the taking was approved by a two-thirds vote of city council or town meeting. Consumer Price Index: The statistical measure of changes, if any, in the overall price level of consumer goods and services. The index is often called the "cost-of-living index." Cost-Benefit Analysis: A decision-making tool that allows a comparison of options based on the level of benefit derived and the cost to achieve the benefit from different alternatives. Debt Authorization: Formal approval by a two thirds vote of town meeting or city council to incur debt, in accordance with procedures stated in MGL Ch. 44 §§1, 2, 3, 4a, 6-15. Debt Burden: The amount of debt carried by an issuer usually expressed as a measure of value (i.e., debt as a percentage of assessed value, debt per capita, etc.). Sometimes debt burden refers to debt service costs as a percentage of the total annual budget. Debt Exclusion: An action taken by a community through a referendum vote to raise the funds necessary to pay debt service costs for a particular project from the property tax levy, but outside the limits under Proposition 2½. By approving a debt exclusion, a community calculates its annual levy limit under Proposition 2½, then adds the excluded debt service cost. The amount is added to the levy limit for the life of the debt only and may increase the levy above the levy ceiling. Debt Limit: The maximum amount of debt that a municipality may authorize for qualified purposes under state law. Under MGL Ch. 44 §10, debt limits are set at 5 percent of EQV. By petition to the Municipal Finance Oversight Board, cities and towns can receive approval to increase their debt limit to 10 percent of EQV. Debt Service: The repayment cost, usually stated in annual terms and based on an amortization schedule, of the principal and interest on any particular bond issue. Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that is chargeable to, but not yet paid from, a specific appropriation account. Enterprise Funds: An enterprise fund, authorized by MGL Ch. 44 §53F½, is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery-- direct, indirect, and capital costs—are identified. This allows the community to recover total service costs through user fees if it chooses. Enterprise accounting also enables communities to reserve the "surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport services. (See DOR IGR 08-101) Equalized Valuations (EQVs): The determination of the full and fair cash value of all property in the commonwealth that is subject to local taxation. EQVs have historically been used as variables in distributing certain state aid accounts and for determining county assessments and certain other costs. The Commissioner of Revenue, in accordance with M.G.L. Ch. 58 s 10C, is charged with the responsibility of bi-annually determining an equalized valuation for each town and city in the Commonwealth. | 127 Estimated Receipts: A term that typically refers to anticipated local revenues listed on page three of the Tax Recapitulation Sheet. Projections of local revenues are often based on the previous year's receipts and represent funding sources necessary to support a community's annual budget. (See Local Receipts) Excess and Deficiency (E&D): Also called the "surplus revenue" account, this is the amount by which cash, accounts receivable, and other assets exceed a regional school district’s liabilities and reserves as certified by the Director of Accounts. The calculation is based on a year-end balance sheet, which is submitted to DOR by the district’s auditor, accountant, or comptroller as of June 30. The regional school committee must apply certified amounts exceeding five percent of the district’s prior year operating and capital costs to reduce the assessment on member cities and towns. Important: E&D is not available for appropriation until certified by the Director of Accounts. Excess Levy Capacity: The difference between the levy limit and the amount of real and personal property taxes actually levied in a given year. Annually, the board of selectmen or council must be informed of excess levying capacity and evidence of such acknowledgment must be submitted to DOR when setting the tax rate. Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is available to particular categories of property or persons upon the timely submission and approval of an application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors. Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved budget. Fiduciary Funds: Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benefit) trust funds, investment trust funds, private- purpose trust funds, and agency funds. Fiscal Year (FY): Since 1974, the Commonwealth and municipalities have operated on a budget cycle that begins July 1 and ends June 30. The designation of the fiscal year is that of the calendar year in which the fiscal year ends. Since 1976, the federal government fiscal year has begun on October 1 and ended September 30. Fixed Assets: Long-lived, tangible assets such as buildings, equipment and land obtained or controlled as a result of past transactions or circumstances. Fixed Costs: Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service costs or interest on loans. Float: The difference between the bank balance for a local government’s account and its book balance at the end of the day. The primary factor creating float is clearing time on checks and deposits. Delays in receiving deposit and withdrawal information also influence float. Foundation Budget: The spending target imposed by the Education Reform Act of 1993 for each school district as the level necessary to provide an adequate education for all students. Free Cash: (Also Budgetary Fund Balance) Remaining, unrestricted funds from operations of the previous fiscal year including unexpended free cash from the previous year, actual receipts in excess of revenue estimates shown on the tax recapitulation sheet, and unspent amounts in budget line-items. Unpaid property taxes and certain deficits reduce the amount that can be certified as free cash. The | 128 calculation of free cash is based on the balance sheet as of June 30, which is submitted by the community's auditor, accountant, or comptroller. Important: free cash is not available for appropriation until certified by the Director of Accounts. (See Available Funds) Full and Fair Cash Value (FFCV): Fair cash value has been defined by the Massachusetts Supreme Judicial Court as "fair market value, which is the price an owner willing but not under compulsion to sell ought to receive from one willing but not under compulsion to buy. It means the highest price that a normal purchaser not under peculiar compulsion will pay at the time, and cannot exceed the sum that the owner after reasonable effort could obtain for his property. A valuation limited to what the property is worth to the purchaser is not market value. The fair cash value is the value the property would have on January first of any taxable year in the hands of any owner, including the present owner." (Boston Gas Co. v. Assessors of Boston, 334 Mass. 549, 566 (1956)) Full Faith and Credit: A pledge of the general taxing powers for the payment of governmental obligations. Bonds carrying such pledges are usually referred to as general obligation or full faith and credit bonds. Fund: An accounting entity with a self balancing set of accounts that is segregated for the purpose of carrying on identified activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations. Fund Accounting: Organizing the financial records of a municipality into multiple, segregated locations for money. A fund is a distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently in accordance with specific regulations, restrictions or limitations. Examples of funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the Uniform Municipal Accounting System (UMAS) use multiple funds. GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the form and content of governmental financial statements. GASB 34 requires a report on overall financial health, not just on individual funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as bridges, road, sewers, etc. It also requires the presentation of a narrative statement the government's financial performance, trends and prospects for the future. GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public entity account for and report other postemployment benefits in its accounting statements. Through actuarial analysis, municipalities must identify the true costs of the OPEB earned by employees over their estimated years of actual service. General Fund: The fund used to account for most financial resources and activities governed by the normal town meeting/city council appropriation process. General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and credit of its taxing authority. Governing Body: A board, committee, commission, or other executive or policymaking body including the school committee of a municipality. Government Finance Officers Association (GFOA): This organization provides leadership to the government finance profession through education, research and the promotion and recognition of best practices. | 129 Governmental Accounting Standards Board (GASB): The ultimate authoritative accounting and financial reporting standard-setting body for state and local governments. Indirect Cost: Costs of a service not reflected in the operating budget of the entity providing the service. An example of an indirect cost of providing water service would be the value of time spent by non-water department employees processing water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs arises most often in the context of enterprise funds. Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every six months. Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a specified period of time. It is always expressed in annual terms. Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease payments. The term does not include fixed assets used in governmental operations. Law Enforcement Trust Fund: A revolving fund established to account for a portion of the proceeds from the sale of property seized from illegal drug-related activities. Funds may be expended to defray certain qualified law enforcement costs as outlined in MGL Ch. 94C, s 47. Funds from this account may be expended by the police chief without further appropriation. Levy Ceiling: A levy ceiling is one of two types of levy (tax) restrictions imposed by MGL Ch. 59 §21C (Proposition 2½). It states that, in any year, the real and personal property taxes imposed may not exceed 2½ percent of the total full and fair cash value of all taxable property. Property taxes levied may exceed this limit only if the community passes a capital exclusion, a debt exclusion, or a special exclusion. (See Levy Limit) Levy Limit: A levy limit is one of two types of levy (tax) restrictions imposed by MGL Ch. 59 §21C (Proposition 2½). It states that the real and personal property taxes imposed by a city or town may only grow each year by 2½ percent of the prior year's levy limit, plus new growth and any overrides or exclusions. The levy limit can exceed the levy ceiling only if the community passes a capital expenditure exclusion, debt exclusion, or special exclusion. (See Levy Ceiling) Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment, maintenance, or salaries, as opposed to a program budget. Local Aid: Revenue allocated by the Commonwealth to cities, towns, and regional school districts. Estimates of local aid are transmitted to cities, towns, and districts annually by the "Cherry Sheets." Most Cherry Sheet aid programs are considered general fund revenues and may be spent for any purpose, subject to appropriation. Local Appropriation Authority: In a town, the town meeting has the power to appropriate funds, including the authorization of debt. In a city, the city council has the power upon the recommendation of the mayor. Local Receipts: Locally generated revenues, other than real and personal property taxes. Examples include motor vehicle excise, investment income, hotel/motel tax, fees, rentals, and charges. Annual estimates of local receipts are shown on the tax rate recapitulation sheet. (See Estimated Receipts) | 130 Massachusetts School Building Authority (MSBA): A quasi-independent government authority that partners with Massachusetts communities to support the design and construction of educationally- appropriate, flexible, sustainable and cost-effective public school facilities. Maturity Date: The date that the principal of a bond becomes due and payable in full. Massachusetts Municipal Depository Trust: An investment program, founded in 1977 under the supervision of the State Treasurer, in which municipalities may pool excess cash for investment. Minimum Required Local Contribution: The minimum that a city or town must appropriate from property taxes and other local revenues for the support of schools (Education Reform Act of 1993). Municipal(s): (As used in the bond trade) "Municipal" refers to any state or subordinate governmental unit. "Municipals" (i.e., municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts, but also bonds of the state and agencies of the state. Municipal Revenue Growth Factor (MRGF): An estimate of the percentage change in a municipality’s revenue growth for a fiscal year. It represents the combined percentage increase in the following revenue components: automatic 2 1/2 percent increase in the levy limit, estimated new growth, the change in selected unrestricted state aid categories and the change in selected unrestricted local receipts. M.G.L.: Massachusetts General Laws. Net School Spending (NSS): School budget and municipal budget amounts attributable to education, excluding long-term debt service, student transportation, school lunches and certain other specified school expenditures. A community’s NSS funding must equal or exceed the NSS Requirement established annually by the Department of Education (DOE). (See Education Reform Act of 1993) Includes both school budget and municipal budget amounts attributable to education, excluding long- term debt service, student transportation, school lunches and certain other specified school expenditures. A community’s NSS funding must equal or exceed the NSS Requirement established annually by the Department of Education. New Growth: The additional tax revenue generated by new construction, renovations and other increases in the property tax base during a calendar year. It does not include value increases caused by normal market forces or by revaluations. New growth is calculated by multiplying the assessed value associated with new construction, renovations and other increases by the prior year tax rate. The additional tax revenue is then incorporated into the calculation of the next year's levy limit. For example, new growth for FY07 is based on new construction, etc. that occurred between January and December 2005 (or July 2005 and June 2006 for accelerated new growth communities). In the fall of 2006, when new growth is being determined to set the FY07 levy limit, the FY06 tax rate is used in the calculation. Note: A short-term loan, typically with a maturity date of a year or less. Objects of Expenditures: A classification of expenditures that is used for coding any department disbursement, such as “personal services,” “expenses,” or “capital outlay.” Official Statement: A document prepared for potential investors that contains information about a prospective bond or note issue and the issuer. The official statement is typically published with the notice of sale. It is sometimes called an offering circular or prospectus. Offset Receipts: A local option that allows estimated receipts of a particular department to be earmarked for use of the department and appropriated to offset its annual operating budget. If accepted, MGL Ch. 44 §53E limits the amount of offset receipts appropriated to no more than the actual receipts | 131 collected for the prior fiscal year. The Director of Accounts must approve use of a higher amount before appropriation. Actual collections greater than the amount appropriated close to the general fund at year- end. If actual collections are less, the deficit must be raised in the next year’s tax rate. Operating Budget: A plan of proposed expenditures for personnel, supplies, and other expenses for the coming fiscal year. Other Amounts to be Raised: (Tax Recapitulation Sheet) Amounts not appropriated but raised through taxation. Generally, these are locally generated expenditures (e.g., overlay, teacher pay deferral, deficits) as well as state, county and other special district charges. Because they must be funded in the annual budget, special consideration should be given to them when finalizing the budget recommendations to the city council or town meeting. Overlapping Debt: A community's proportionate share of the debt incurred by an overlapping government entity, such as a regional school district, regional transit authority, etc. Overlay: (Overlay Reserve or Allowance for Abatements and Exemptions) An account established annually to fund anticipated property tax abatements, exemptions and uncollected taxes in that year. The overlay reserve need not be funded by the normal appropriation process, but rather is raised on the tax rate recapit ulation sheet. Overlay Deficit: A deficit that occurs when the amount of overlay raised in a given year is insufficient to cover abatements, statutory exemptions, and uncollected taxes for that year. Overlay deficits must be provided for in the next fiscal year. Overlay Surplus: Any balance in the overlay account of a given year in excess of the amount remaining to be collected or abated can be transferred into this account. W ithin 10 days of a written request by the chief executive officer of a city or town, the assessors must provide a certification of the excess amount of overlay available to transfer. Overlay surplus may be appropriated for any lawful purpose. At the end of each fiscal year, unused overlay surplus is “closed” to surplus revenue, i.e., it becomes a part of free cash. Override: A vote by a community at an election to permanently increase the levy limit. An override vote may increase the levy limit no higher than the levy ceiling. The override question on the election ballot must state a purpose for the override and the dollar amount. (See Underride.) Override Capacity: The difference between a community’s levy ceiling and its levy limit. It is the maximum amount by which a community may override its levy limit. Performance Budget: A budget that stresses output both in terms of economy and efficiency. Principal: The face amount of a bond, exclusive of accrued interest. Program: A combination of activities to accomplish an end. Program Budget: A budget that relates expenditures to the programs they fund. The emphasis of a program budget is on output. Proposition 2½: A state law enacted in 1980, Proposition 2½ regulates local property tax administration and limits the amount of revenue a city or town may raise from local property taxes each year to fund municipal operations. Purchased Services: The cost of services that are provided by a vendor. | 132 Recap Sheet: (See Tax Rate Recapitulation Sheet) Refunding of Debt: Transaction where one bond issue is redeemed and replaced by a new bond issue under conditions generally more favorable to the issuer. Reserve for Abatements and Exemptions: (See Overlay) Reserve Fund: An amount set aside annually within the budget of a city (not to exceed 3 percent of the tax levy for the preceding year) or town (not to exceed 5 percent of the tax levy for the preceding year) to provide a funding source for extraordinary or unforeseen expenditures. In a town, the finance committee can authorize transfers from this fund for "extraordinary or unforeseen" expenditures. Other uses of the fund require budgetary transfers by town meeting. In a city, transfers from this fund may be voted by the city council upon recommendation of the mayor. Revaluation: The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with constitutional and statutory requirements. The nature and extent of that program will depend on the assessors’ analysis and consideration of many factors, including, but not limited to, the status of the existing valuation system, the results of an in-depth sales ratio study, and the accuracy of existing property record information. Every three years, assessors must submit property values to the DOR for certification. Assessors must also maintain fair cash values in the years between certifications so that each taxpayer in the community pays his or her share of the cost of local government in proportion to the value of his property. (See Triennial Certification) Revenue Anticipation Borrowing: Cities, towns and districts may issue temporary notes in anticipation of taxes (TANs) or other revenue (RANs). The amount of this type of borrowing is limited to the total of the prior year’s tax levy, the net amount collected in motor vehicle and trailer excise in the prior year and payments made by the Commonwealth in lieu of taxes in the prior year. According to MGL Ch. 44 s 4, cities, towns and districts may borrow for up to one year in anticipation of such revenue. Revenue Anticipation Note (RAN): A short- term loan issued to be paid off by revenues, such as tax collections and state aid. RANs are full faith and credit obligations. (See Bond Anticipation Note) Revenue Bond: A bond payable from and secured solely by specific revenues and thereby not a full faith and credit obligation. Revolving Fund: Allows a community to raise revenues from a specific service and use those revenues without appropriation to support the service. For departmental revolving funds, MGL Ch. 44 §53E½ stipulates that each fund must be reauthorized each year at annual town meeting or by city council action, and that a limit on the total amount that may be spent from each fund must be established at that time. The aggregate of all revolving funds may not exceed ten percent of the amount raised by taxation by the city or town in the most recent fiscal year, and no more than one percent of the amount raised by taxation may be administered by a single fund. Wages or salaries for full-time employees may be paid from the revolving fund only if the fund is also charged for all associated fringe benefits. Sale of Cemetery Lots Fund: A fund established to account for proceeds of the sale of cemetery lots. The proceeds may only be appropriated to pay for the cost of the land, its care and improvement or the enlargement of the cemetery under provisions of MGL Ch. 114 §15. Sale of Real Estate Fund: A fund established to account for the proceeds of the sale of municipal real estate other than proceeds acquired through tax title foreclosure. MGL Chapter 44 s 63 states that such | 133 proceeds shall be applied first to the retirement of debt on the property sold. In the absence of such debt, funds may generally be used for purposes for which the town or city is authorized to borrow for a period of five years or more. Security: For Massachusetts municipalities, bonds or notes evidencing a legal debt on the part of the issuer. Special Assessments: (See Betterments) Special Exclusion: For a few limited capital purposes, a community may exceed its levy limit or levy ceiling without voter approval. Presently, there are two special expenditure exclusions: 1) water and sewer project debt service costs which reduce the water and sewer rates by the same amount; and 2) a program to assist homeowners to repair or replace faulty septic systems, remove underground fuel storage tanks, or remove dangerous levels of lead paint to meet public health and safety code requirements. In the second special exclusion, homeowners r epay the municipality for the cost plus interest apportioned over a period of time, not to exceed 20 years (similar to betterments). Stabilization Fund: A fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose (MGL Ch. 40 §5B). Communities may establish one or more stabilization funds for different purposes and may appropriate into them in any year an amount not to exceed ten percent of the prior year’s tax levy. The total of all stabilization fund balances shall not exceed ten percent of the community’s equalized value, and any interest shall be added to and become a part of the funds. A two-thirds vote of town meeting or city council is required to establish, amend the pu rpose of, or appropriate money into or from the stabilization fund. (See DOR IGR 04-201) Surplus Revenue: The amount by which cash, accounts receivable, and other assets exceed liabilities and reserves. Tax Rate: The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property. Tax Rate Recapitulation Sheet (Recap Sheet): A document submitted by a city or town to the DOR in order to set a property tax rate. The recap sheet shows all estimated revenues and actual appropriations that affect the property tax rate. The recap sheet should be submitted to the DOR by September 1 (in order to issue the first- half semiannual property tax bills before October 1) or by December 1 (in order to issue the third quarterly property tax bills before January 1). Tax Title (or Tax Taking): A collection procedure that secures a city or town's lien on real property and protects the municipality's right to payment of overdue property taxes. Otherwise, the lien expires if five years elapse from the January 1 assessment date and the property has been transferred to another owner. If amounts remain outstanding on the property after issuing a demand for overdue property taxes and after publishing a notice of tax taking, the collector may take the property for the city or town. After properly recording the instrument of taking, the collector transfers responsibility for collecting the overdue amounts to the treasurer. After six months, the treasurer may initiate foreclosure proceedings. Tax Title Foreclosure: The procedure initiated by a city or town treasurer in Land Court or through land of low value to obtain legal title to real property already in tax title and on which property taxes are overd ue. The treasurer must wait at least six months from the date of a tax taking to initiate Land Court foreclosure proceedings (MGL Ch. 60 §65). | 134 Triennial Certification: The Commissioner of Revenue, through the Bureau of Local Assessment, is required to review local assessed values every three years and to certify that they represent full and fair cash value (FFCV). Refer to MGL Ch. 40 §56 and Ch. 59 §2A(c). Trust Fund: In general, a fund for money donated or transferred to a municipality with specific instructions on its use. As custodian of trust funds, the treasurer invests and expends such funds as stipulated by trust agreements, as directed by the commissioners of trust funds or by town meeting. Both principal and interest may be used if the trust is established as an expendable trust. For nonexpendable trust funds, only interest (not principal) may be expended as directed. Uncollected Funds: Recently deposited checks included in an account’s balance but drawn on other banks and not yet credited by the Federal Reserve Bank or local clearinghouse to the bank cashing the checks. (These funds may not be loaned or used as part of the bank’s reserves and they are not available for disbursement.) Underride: A vote by a community to permanently decrease the tax levy limit. As such, it is the opposite of an override. (See Override) Undesignated Fund Balance: Monies in the various government funds as of June 30 that are neither encumbered nor reserved, and are therefore available for expenditure once certified as part of free cash. Uniform Municipal Accounting System (UMAS): UMAS succeeds the so-called Statutory System (STAT) and is regarded as the professional standard for municipal accounting in Massachusetts. As a uniform system for local governments, it conforms to Generally Accepted Accounting Principles (GAAP), offers increased consistency in reporting and record keeping, as well as enhanced comparability of data among cities and towns. Unreserved Fund Balance (Surplus Revenue Account): The amount by which cash, accounts receivable, and other assets exceed liabilities and restricted reserves. It is akin to a "stockholders’ equity" account on a corporate balance sheet. It is not, however, available for appropriation in full because a portion of the assets listed as "accounts receivable" may be taxes receivable and uncollected. (See Free Cash) Valuation (100 Percent): The legal requirement that a community’s assessed value on property must reflect its market, or full and fair cash value. Warrant: An authorization for an action. For example, a town meeting warrant establishes the matters that may be acted on by that town meeting. A treasury warrant authorizes the treasurer to pay specific bills. The assessors’ warrant authorizes the tax collector to collect taxes in the amount and from the persons listed, respectively.