The central topic of the meeting was the discussion on the MBTA Communities Act fiscal analysis, requested by the planning board. The town has been unable to obtain a necessary report from RKG Associates in time for the upcoming town meeting. Instead, RKG Associates is conducting a propensity to develop plan, due by the end of the month, which will provide baseline data for constructing a fiscal analysis report. The committee expressed concerns about the potential impact of development in the Local Commercial District (LCD) and focused on obtaining valuation numbers from the assessor’s office to aid in calculations.

Members of the committee discussed the need to revisit previous calculations, particularly concerning the number of school-age children per housing unit. Previous studies had provided estimates that now seem conservative, given Manchester’s recent trends of losing students without a corresponding decrease in population. Mike Pratt raised concerns about these low assumptions, prompting the committee to agree on establishing baseline numbers before the RKG report is ready. This would facilitate more accurate revenue projections and help in understanding the school-related impacts of new housing developments.

The conversation also included the types of development expected in town and how zoning regulations might limit the density of new developments. The committee considered the fiscal implications of these regulations, particularly how they would affect revenue from real estate taxes and the necessary expenses for town services. Various departments, including public safety and schools, were discussed in terms of how they would be impacted by an expected increase in population. The committee generally agreed that police and fire services would likely not require changes in staffing due to the nature of the expected developments.

Greg Federspiel confirmed that two reports would soon be available: one on the economic feasibility of including a 20% affordable housing component and another on the projected rate of growth in housing development. These reports would include timelines for when developments might occur, playing a critical role in financial projections. The committee emphasized the importance of understanding how density would affect both revenue and necessary expenses, using existing templates from previous studies to streamline their analysis.

The discussion then turned to the fiscal year 2024 year-end report, examining reserves, free cash, and stabilization figures. The actual numbers were more favorable than anticipated, leading to questions about whether this trend would continue in the current fiscal year. It was noted that the actual figures would remain unverified until the certification process concluded in the fall. This segment of the meeting highlighted the need for tightening forecasts based on past performance, particularly concerning investment income.

Attention shifted to fiscal year 2026 budget planning, where members debated whether liaisons should engage more thoroughly with department heads during the budget development process. The goal was to provide earlier feedback before the budget was finalized. It was proposed that liaison meetings take place in early to mid-November, after department heads submit their initial budget requests, to identify issues before the preliminary budget presentation in December.

The committee also discussed the logistics of scheduling these liaison meetings and the benefits of collaborative feedback in enhancing the budget formulation process. Specific departments such as police, fire, and the Department of Public Works were highlighted as priorities for more intensive review. There was a suggestion to include comments and feedback from liaison meetings in the finance committee’s agenda, allowing for a structured discussion of departmental needs before finalizing the budget.

Additionally, the committee reviewed upcoming meetings and collaborations with various departments, including police and fire services. Members expressed willingness to engage in preliminary discussions before joint meetings with Greg Federspiel.

Concerns about staffing and succession planning were raised, especially regarding anticipated retirements and the need for early planning. Greg Federspiel noted the importance of operational audits across departments to identify efficiencies.

The agenda also included a review of the long-term capital plan, with department heads submitting their long-range capital requests. An initial assessment of facility needs over the next 40 years was underway, with materials expected for review in October. The committee also discussed the implications of significant debt issuance in the near future. An idea was proposed to arrange a Zoom meeting with a ratings agency representative to discuss the potential impact of issuing additional debt on the town’s credit rating.