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MINUTES – OCTOBER 21, 2002
TOWN HALL – 7:30 P.M.
Members present: Tuck, Heitin, Grasfield, Atlas-Gordon, Bluestein, Gillen, Goodman, Sirkin, (Garza). Members absent: Bergeron, Fixler, Hearne, Pietal
1. Assistant Assessor M. Mazur, accompanied by Assessor R. Merritt, explained that the appropriations of Town Meeting, actual receipts provided by the Accountant and the state Cherry Sheet figures are used in calculating the tax rate. This year, primarily because of a $500,000 unexpected increase in state aid and an extra $500,000 in motor vehicle receipts, adjustments had to be made in order to reach the amount appropriated. The policy has been to conservatively estimate receipts. Any excess becomes free cash. Executive Secretary B. Puritz explained that Sharon is in the bottom third of eleven comparable communities in the amount of free cash and 48% below the average. He added that the Town is tenth out of eleven in a stabilization fund. He expects a 10% decline in Free Cash.
Puritz reported that the figures used for Town Meeting are estimates, that it is inadvisable to be short and that the excise tax can vary with the timing. P. Keefe, Medway paid Assessor, explained that the registry figures go from January through December while the Town Fiscal Year begins in July.
2. Tuck opened the discussion on long range planning, first addressing what issues would benefit from such planning. Grasfield and Tuck brought up the issues of old debt, demographics, maintenance and replacement of assets, borrowing capacity and the effect of capital on the operating budget. It was suggested to revisit the per cent of budget allocated for capital expenses.
3. Executive Secretary Puritz, passed out copies of a previous long range revenue forecast covering historical figured for 1995 through 1997 and estimates for 1998 through 2001. He reported that the forecast was done for three years, then dropped. He said that it was somewhat useful but made somewhat obsolete by such things as changes in state aid. He suggested an update.
4. School Committee member S. Liao suggested simplicity in a model and planning for various scenarios. He reported a general advocacy for long range planning. He expressed the belief that school costs can be predicted based on population projections and per pupil costs. Liao distributed copies of a Boston Globe opinion article titled “a New Approach to Budgeting”, suggesting that the word “town” could be substituted for “state”. Topics covered in the article were taking the politics out of revenue forecasting, multiyear budget planning, living within our means, better management of the managers, prioritization of capital projects and reducing the state’s debt. Discussion ensued on the spending of cash left in budgets at the end of the Fiscal year and
how it might be carried forward.
5. School Committee member D. Gilligan presented a draft model of a School Committee long term financial plan. He said school expenditures include direct operations, indirect operations (such as school expenses paid by the Town rather than the schools.) and capital expenditures. The goal of the plan would not be to duplicate the detailed annual budgets, but to address major line items and trends and to be used as a planning tool. Population projections were discussed.
6. S. Liao stated that the maintenance of buildings is often overlooked. The importance of the costs of retirement, insurance and contracts were stressed. School Superintendent C Jackson stated that the School Committee is trying to get out of the “reactive mode” and suggested looking to what we want Sharon to be. Gilligan and Liao referred to the Planning Boards current visioning. Tuck brought up the issue of affordability. Tuck suggested a rolling five year forecast while Liau advocated twelve to fifteen years for the School Department.
7. There were 4 main areas of concern that all agreed would benefit from long-range planning: capital construction (replacement of assets, annual capital appropriations, borrowing capacity, coordination of all major construction projects), planning for growth (demographics, new housing), revenue projections (at a minimum, new 5-year projections each year), and human resource issues (insurance, retirement, salary
negotiations). It also was agreed that the Planning Board, the Chairman of Capital Outlay, the Treasurer and the Facilities Planning Committee, in addition to the School Committee, Selectmen and Finance Committee should be involved in long range planning. Grasfield expressed the need for a full time Finance Director and Liao suggested the use of a consultant. Puitz mentioned the desirability of professional assistance to accomplish good planning and agreed to research grants and also see if he can find a volunteer with professional expertise. Jackson suggested the use of a consultant now but saw a need for a permanent person to sustain the process. There were 4 main areas of concern that would benefit from long-range planning: 1) capital construction (replacement of assets, annual capital appropriations,
borrowing capacity, coordination of all major construction projects), 2) planning for growth (demographics, new housing ), 3) revenue projections (at a minimum, new 5-year projections each year), and 4) human resource issues (insurance, retirement, salary negotiations). Puritz mentioned the desirability of professional assistance to accomplish good planning and agreed to research grants and also see if he can find a volunteer with professional expertise.
8. It was decided to meet with those involved in long range planning on November 18.
It was agreed that the Planning Board and the Chair of the Capital Outlay Committee should be invited to participate and possibly the Conservation Commission would
also want to join our next meeting
9. The minutes of October 7 were approved with the following change: in #3 insert “as a” between “budget and “package”. Vote 7-0-1.
10. The meeting adjourned at 9:35
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