
About this episode
This session shares the Joint Budget Subcmte Meeting held on Thursday, August 13, 2026.
- TA Jamie Hellen provides a budget update https://ma-franklin.civicplus.com/DocumentCenter/View/10586/3a-MEMO---FY27-Update-and-Five-Year-Forecast-
- five year forecast more accurate based on the process https://ma-franklin.civicplus.com/DocumentCenter/View/10582/03b-1-Five-Year-Fiscal-Forecast---Control-Summary-Forecast
- Discussion on goals https://ma-franklin.civicplus.com/DocumentCenter/View/10588/04-JBSC-2026-27-Goals
- Consensus developed around three goals;, in my kitchen English wording -
- (1) education/awareness of the Town finances
- (2) alignment on the structural deficit for 3 years
- (3) potential solutions or strategy to resolve such deficit in that time.
- Additional wordsmithing being done by the committee for review at next session, no date available for next session
The recording runs about 1 hour & 55 minutes, so let’s listen in.
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Franklin TV video is available for replay
https://www.youtube.com/watch?v=_PITPcwF6Lg
The agenda for this session
https://www.franklinma.gov/AgendaCenter/ViewFile/Agenda/_08132026-2445
My notes captured during the session
https://drive.google.com/file/d/1UzwDKCfD_wh4wmgQdqZDH101egZACz-j/view?usp=drive_link
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Franklin Matters Radio — FM #1810 - Joint Budget Subcmte Mtg - 08/13/26. Machine-transcribed; use the interactive transcript above to jump the player to any line.
fretter and thank you draft We brought a diagram. Yes, we did. We don't need a diagram. We have to be like a lot of people. We can't be all the way up. It's an excellent place here. Hey. How are we set? Oh, wait. What's the difference? Should we just wait? Hold it. Chris? Thought I was in the end. Sorry. Shannon and I were catching up with the summer season. Yeah. It's a little... It's okay. It's okay. It's a three-point problem. It's a three-point problem. I know.
She's in the right place. So time being 6.06 p.m. I called over to the Franklin Joint Budget Subcommittee meeting. Our meetings are recorded by progress. We need progress. Sorry, why do I have to wait? Okay. I'm very happy. I'm sorry. I hope you don't forget that. Meetings are recorded by Franklin TV and shown on Comcast Channel 8. And Verizon Channel 28 as well as 29 as well as recorded by Franklin Matters. It's a call for it. The first item on the agenda is approval of minutes. We move to approval of minutes from April 16 to 26. Let's go. Any objections? We need about the... Oh yeah, very good. Okay, but I can do this actually because we have Jean out.
Can you have a roll call? He's on Zoom. He's not on Zoom. Yeah, so you don't have to do roll call. Don't have to do roll call. All right, what's up? So, those... Move room? Hi. Move the post. All right, eyes out. All right. Moving to the three-discussion. Office of your 27-budget update. Office of your 28-budget projection. And five-year fiscal forecasts. George, through you Mr. Chairman, I just think that's a quick update for the folks that are online and haven't read three-page comments. So, FY27-budget update. Fortunately, the state-levels later. FY27-budgeted state level. We did see a small decrease in low-blade. As I mentioned here, about 170,000.
As I mentioned here, we should be able to make that budget out of up by the time we get to remember tax rate recap. I would note that I think the Super 10, and I'm sure this will be remembered to know. But in the outside section of the 27-budget, they formally did reintroduce the Foundation Budget Commission. So, that's going to be a really, really big deal. Obviously, on dates, they don't have membership fully yet. They'll be available to be able to meet the deal when they open up. They'll probably be 25 members of the commission. They'll do listing sessions throughout the state. But this is the legislators. Legislatures, every 10 to 12 years, they get this back together. And this is guided where the report I think is being requested to be due back to the legislature sometime in 2028. So, it's about a two-year process. And this is exactly where the threat to a whole time will still serve to be. So, people should pay attention to that. They could have linked it here to the actual language.
I did notice here that's a report that Senator Rausch will be impatient. That's the 16th-town council meeting. So, if people want to join in on that, then you should come to that. It's a good time to ask questions. And for a review of the legislature session. And I did include in here the full FY 2016. Full FY 26. World War Seats. And the good news is we were 15.5% over projections. So, that equates to roughly about 2.3 million over what we have projected. I would also note that the June collections where we had all the events in town were accommodate and pride for the July. And Fort Fest and all the other things. Strawberry stroll. That is not reflected in these numbers. Because the state is month off from 4123.4. So, the June numbers don't actually go to FY 26. The June numbers are calculated. The FY 27.
So, if you look at these numbers, it was a very good may. For World War Seats, for meals, taxes, and hotel taxes, and cannabis, and a few other items. So, that's good news, right? I mean, we had projected 15.3 million. We collected 17.6. You know, that's really good. So, that's the FY 27 budget update. Just timeline moving forward, just chairman and to the committee. You know, we just as a staff, we have a lot of year-end reporting to do. We have a lot of desi reporting to do. For our finance staff, this is like a reporting season. Reporting for cash. Getting everything certified. Going to geore review. The next data point will probably be sometime October, November. Where we'll look at, finally, I think that with the FY 27 budget, before the council has their tax rate session in December. I've noted two, but just for the rest of the committee. I've noted that one of the big goals for the council this year was looking at the tax rate and the attention.
So, there's going to probably be two or three major tax rate workshops. A little bit of a pleasant surprise. There are three high school interns in my office this summer. And they love tax rates. So, we gave them a project on tax rates. And we're going to propose to the council that they present their findings as part of those workshops. It is unbelievable. And so, everybody should really see how great high school is and how great their parents are because they've done an amazing job. So, that's really the September October and November kind of budgeting. At least to close out FY 27. And maybe because the chairman before I go on to FY 28, maybe in case anybody haven't. But then it's about the process of timing or numbers. And we answer that. You know me? Yeah. That's what I think. I think so. That's great. This is a good thing. I'm wondering what, if you know what accounts for the increase on the miscellaneous line, 136,000 out of all the way up.
What we collected was 203. What is miscellaneous and tail? Sorry. Sorry. Hi, Carrie Bertone, ATCFO. Through you, Mr. Chairman. So, miscellaneous, we have Medicare refunds. We have refunds for bills that were from prior years. So, it's a whole smorgasbord of miscellaneous receipts that we receive. And that's where it goes. And actually, for reporting purposes, to the DOR, I have to break it all out and explain each one. Oh, okay. That's why the number, the budget amount that is in there, the estimate, what we receive is very small. Because we don't know what we're going to be receiving. No, what time is that? So, you really just kind of projected the guess to me on the 136. And then there's the actual, but the guess to me is probably based on just like an aggregate of rich efforts that goes in-
Awesome. Thank you. I have one question which might get to you later. Given the summer that we had, we had all the event. Do you have a sense of how that worked out for you? We need to do keep doing it. It worked out really well. I mean, obviously the world copies the one time. I mean, it can't do that. But it can't do many world jobs. But we can try to event our own world jobs to something else. I think if you look at the Finance Committee somewhere, I think we did the April 30th. And then in here is really the end of May. If you look at the numbers from April 30th to May 31st, you know, springtime, a lot of people eating out, starting all the celebrations, really the consumption taxes, if you will, really go on.
And that's traditionally been the case. But I don't have any inclination. We won't have numbers for June until September 30th. Because that's how the state does it. But I think if I look at the May numbers, I have to assume that June is very, very solid. If it doesn't even surpass, which is quite substantial. So my real question of this is for the future is how do we do that versus our expectations? Getting the sense of that, I think it would be helpful. There's no one I would not have projected. I'm not sure. A couple hundred grand meals taxing the money. Sure. That's a lie. What are our teams? I mean, really, I mean people delivered it. And I think they filled our restaurants and people coming from other towns. You know, that's a lot of money in one month. And so I think maybe the buzz of all the events and springtime, it just all kind of blended together. So I would expect the June numbers to be very strong and are you the new fiscal year?
I will shout out the annual World Cup events and the few of the other events. I was able to attend the summer work and testing and very well attended. Both by Franklinites and for people from other Franklinites, which I really appreciate. My hope is that was a major win for us. I hope we can figure out ways to keep these in that corner. I think restaurant week, I'm sincerely saying that's a big restaurant week. Kind of the promo leading for several weeks up to that. I think just started to get people excited about getting out of winter and spring and getting outside and going out to eat and doing fun things. So I think the restaurant week planning probably helped a lot just to get people excited about coming out. And obviously people went out to, but I think the restaurant week was a real big success. Any other questions on the phone? It's a task for the school year. Okay. Good. Thank you. The introduction in the state of the state, 177,000.
Kind of net net. Does that remember the budget process we were holding for more than the years was running and now they took 177. Are we still net plus what we thought would be in the early part of the budget? That's a great clarification. The 178 loss is relative to what was voted on June 10th by the council. But still, we were overall from FY26 to FY27. Having probably in a few minutes to get the number, but it certainly might be almost a half a million dollars and low-bulleted at least. So we still were in the positive significantly. And once the conference committee comes out of the budget and the legislature, it's really hard. You kind of like, if you're the representative, you're kind of stuck with the EA or NA on what's there. So it's tough. You can't amend the conference committee report. So once it goes to conference, the House and Senate, once they have that bill and it comes back out, it's like a EA or NA vote.
And that's why it is being like, you know, 198 to 2 or something because most people have stuff in the budget that's important in the district. So it's kind of that. You know, I've obviously disappointed that the Senate numbers didn't prevail. I think every city town probably is, but also the legislature when they come here in September, you know, we'll learn about all the other competing priorities in there. But overall from FY26 to 27, you know, we certainly made out quite well. That's what I thought. I just wanted to make sure everybody's reading. Thank you. So Evan has... So Evan has basically plotted out probably, in my opinion, probably the best five-year, the most accurate five-year fiscal forecast we've had since before the pandemic. I think sometimes we all forget that the pandemic happened in 2020 and then finances in every city or town or organization have been shuffling all of the place ever since.
Numbers were all over there, assumptions were all over the place, but I think we've put in here, I think what's really important is, you know, all the municipal-related contractual obligations are costed out to the dollar. So for FY28, 29 is reflected. Obviously, you can see my assumptions on the model, you know, 2.5% levy. We left new growth stagnant across the board. So that's an issue of short-term board and others we're going to need to talk about. We averaged together a 10-year state-aid number at 1.3%, which we had typically been using 1.5% as our guideline in previous years. So it wasn't too far off and of course the 5% low for seed growth. You know, we assumed 2.5% for a count of 300 and Evan did a great job this year. This is the first time we've ever done this where we went through on over the last five years to expense reports of some of the smaller budgets. And you can see that reflected in the model, some of the zero percent, some of one, some of four, some of 1.2.
So what we tried to do is look at historical numbers and say, okay, what are departments really spending? And we tried to put a more accurate reflection. As everybody who's mentioned a bunch of those, we usually just put it to a hash down the line. We didn't do that this year because we felt like we had better data sets to be used to come up with more accurate number. And then in the memo as I say, you know, we assumed the 4% for facilities for expenses. You know, I would say I did note that we did sign up for electricity rate for three years. That's a hair lower than what we're paying now. So that probably is a wash for the least we're not seeing a big spike in electricity costs for our schools and our facilities. That's great news. You know, the big piece in here, and I mentioned this last year, was really the PEC agreement for the transition to the GIC. You know, we could take it out with the $438, $435,000 that we had to pay for this task years of budget to help transition into the natural law of 3132.
You know, we had to do it. We see the metrics on healthcare going pretty well. I do want to make sure everybody's aware of the healthcare numbers we use, but we're doing this year, time to 10%. By the time we get into the budget season in April, you know, we're going to now have a full year enrollment. We're going to see where people's plans are. Human resources for both schools and the town are working with newly hired employees to make sure they're educated on what they can choose. So they're getting the best plan for the family and they're saving money. We're saving money. So there's an opportunity, and by the time you take the AP and our operating healthcare numbers, you know, I mean, I'm not going to put it here, but hopefully there are even a little lower than what they are right now, but we're just using the FY26 enrollment data. The actual enrollment data, what's actually is already enrolled and just added 10% on to that. So those numbers may be a little inflated. It's probably a little liberal, but you know, we're trying to be cautious in case, you know, we see healthcare spikes like you've seen.
So that's the high level. I think the general high level assumptions that are in here, two and a half percent follow across the board in its goal, non-union. This is not a suit, assume any new debt service other than we did put it here in the model in case we ban the fire truck again just for illustration. Because we don't know what free cash will totally look like. We're not sure if we're going to be able to buy that outright, but even if you have to ban the fire truck for another year, that's $32,000 a year. And ultimately, you're looking at a 1.07 million budget deficit as we go into eight months early. That's a lot better than last year. We're all headed in the right direction. I don't want to get ahead of myself, but some of these assumptions, which are very realistic, very practical, come to fruition. As they said last year, we should be able to use a million dollars and free cash if we need to. Without any more budget cuts, without override, without tax increases, and you guys, but I think overall, I think we're looking at a relatively favorable position.
I was asked to add on really quickly the houses that have discussions, I think, about 10 year infrastructure and capital plans. I just highlighted in here the district improvement plan for the schools. Brutus did do a great job putting together 10 year window and finishing for the NW costs. Some of those, most of that is not operating budget, so it's kind of on the side of the company. And just for the discussion purposes, I think the issue going into FY28 and beyond is really going to be likely more of a pattern. And making sure that we can get fleet building a pair of this and all that stuff that we generally need to do. I think that's going to be probably the bigger conversation. Don't think free cash is going to be over 4 million this year. I think it will probably be 3.5, 3.4, someone that range. So you're going to start to see the depletion of capital availability. And I guess as you're going to probably be in a very conventional position to work with that year, we're going to have to get this best with the KGM ads.
We've supplied here some of the basic needs that you might have in other billionaires so it will spend on other technology or facilities. Because we move forward, I think that's going to be probably the bigger concern behind it. That's necessarily being able to have the technology. These links in here, we're not necessarily there for discussion. I mean, they're not there to go through. We're not going to do the presentation to a lot of people. I just put the next reference so everybody can see the figure, catch your going into the hall with the cost rise. That's really it. And obviously, happy to answer any questions. Just one question. I just noticed that the library was stagnant for expenses. Was there a rationale behind that? I don't think there's been a rationale. There was, other than they hit an MAR. So usually what we do is, it was at the minimum area required, whatever the MAR has been required by statute.
We usually calculate that because the MAR was so close, usually we looked at another 25,000 dollars or so over the MAR. So I think that's where that might be where it is unless they have any other thought. Just curious. But I noticed like everyone had a little bit of an increase for expenses over the course, but that would just be a little second. Yep. So they're five year average, which was kind of all over the place, like one year they had negative 16% increase. Now there was a 3% increase. So they're five year average, which was really 0.32%. So I surrounded it off at zero. So it wasn't based on anything beyond. Yeah. Right. Okay. Right. Okay. I think so. It was nice of that history the other day. It's great. Yeah. Great to be out for sure. Okay.
Oh, I'm sorry. I'm fine. I'm fine. I'm not happy to go with this. Okay. Thank you, Mr. Chairman. So about to, Jim is fine. This fiscal forecast is early. So the library could still submit something we've asked you before. One month. I think it's certainly flees and our team can start and become to do me and say that like an additional person, I think it's too deep. Well, it gets discussed obviously to our budget season. This is just extensive preliminary. The end of the shot. Look at how things are going to be. It basically looks like everything would be really. We're all right. Well, sorry to that point. Do and it's just a point of a secret question. Do the various team leads today a chance to look at this? Maybe not most of the least have a sense of where it is.
No, I think the test point, you know, it's not like we ran this through them and they said, oh, we're going to be this. The other thing, I think it's a Jen's point is basically that. But I'm also sensitive to, you know, we're using three captioned outs as budgets. So, you know, I think that's a pretty large of the right of the intuition. They come in and say, you know, if I can have this, so the school team come in and say we want three percent or, you know, any department could come in and say they need something. I'll put it in their budget proposal for January, but I think realistically the likelihood of all that happening or executing has been very challenging. So I agree with that, but at this point, it's just now. Sorry very bad. I think it's helpful to make sure that they are also kind of seen where they can ask for whatever they want, those sounds, but ultimately where we should also be aware of where we're landing.
Yeah, can I explain my point? Sorry, I was not looking at the salary piece because I know that's a budgetary thing. I was looking at expenses because I think it's unrealistic to think that expenses don't go up. So when I'm doing projections, I, you know, automatically assume anywhere from a three to five percent increase from here to here. And that's from everything from groceries to bills to expenses. So that's why I was just looking at it thinking, is it really realistic to think that there's not going to be any movement in expenses, you know, or they mean for such a big organization in town? But I, yeah, it's just math. I know that they can add budget requests and whatnot. So I know it's just a projection, but I just was curious as to how we ended up flat. That concerns me a little, right? Because I don't think we ever see an account that doesn't fluctuate a little bit over the course of that many years. The only quick add in finance is that these are bottom line budgets. So typically expenses are going to have personnel, personnel needs to have, like, especially for the library, one that's really unique because it's really an aggregate MAR, a number of the state requires you to have.
And I could, I could put, you know, the salary number maybe a little high because we have to pay that to tell the state that that's the report, even if they don't spend it, it still falls as a loss. So that was just a little unique. You're right. Expenses are not going to be zero, but there's probably a buffer in there across the course. When we look at the turnbacks and see what the library turned back, the Refwide 26, and that'll give you a gauge of where the window is. I don't have the number of front of me, but when we get the free cash, or the five, we'll know how much they turned back and what it is. So we're looking at the five percent of the lower receipts. We base them on the 10-year average as well. That seems like it's a little generous. And so, typically, in a start, we increase by five percent. We have any concerns based on tariff changes, inflationary pressures, and the other concerns around the current environment that might make that a bit optimistic. And if we take a early day on that, obviously 5 percent later on, it needs a lot less.
Right. Agreed. And we do. But we also have to be with, again, to see your own, this is what we have to do as a countenance. I cannot increase lower receipts estimates more than what I received prior here. Right. Okay. But I think it's two other issues. You think five percent is too high? Yes, you say. We did that in two requests. I would just quickly say we were 15.5 percent under, right? So we did that in two requests. We did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
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And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests. And we did that in two requests. And we did that in two requests.
And we did that in two requests. And we did that in two requests.
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