FINANCE COMMITTEE
MINUTES – JANUARY 13, 2003
TOWN HALL – 7:30 P.M.
Members present: Tuck, Heitin, Pietal, Grasfield, Bergeron, Bluestein, Fixler, Goodman, Hearne, Sirkin, (Garza). Members absent: Atlas-Gordon, Gillen.
1. Executive Secretary B. Puritz, accompanied by Treasurer R. Uyttebroek, reported that there have been some delays in implementation of the MUNIS system. He believes the delays have been resolved. The Treasurer reported a preliminary target date of April First. He reported that the printer and related hardware were received and the charter of accounts was forwarded on Friday. He said that first the general ledger and then the payroll are to be installed. All departments are to be consolidated. Puritz reported a net change in cost of $42,000 for Fiscal 2004, primarily due to an increase in the software license and picking up a one half time position. Pietal agreed with the need. In answer to a question from P. Bergeron, Uyttebroek, replied that the system includes a budgetary module with more capacity than the
current system. In answer to P. Pietal, he replied that the project schedule had been revised numerous times and that he hopes to hear this week that the chart of accounts is a go. In reply to C. Tuck, he said they will decide how far back to go historically and that historical information is available on Gemini.
2. Puritz reported that no Reserve Fund request for Health Insurance is being contemplated this year. He documented a predicted shortfall of around $300,000 or about $25,000 a month. He stated the plans are to pay the last month on July one, rolling into the next fiscal year. Goodman documented a similar shortfall. Puritz expressed the belief that a proposed 25% increase in health insurance rates should defray the shortfall. He thought it advisable to have a positive balance to assure stability. The Treasurer reported that, although participation has gone down, claims have not been reduced. He did not recall the nature of the two-person decrease in participants. Goodman stated that in effect there had been a double Water Department payment pf $83,329 for the year ended June 30, 2002 and this procedure has been
happening for more than one prior year. He said that the water share of Health Insurance should be appropriated at the beginning.
3. Tuck reported that Bluestein had questioned the legality of accumulating water surpluses without a plan or appropriation. Bluestein expressed the belief that a letter from a Department of revenue person in charge of Property Tax in 1993 was not a good indication of the validity of maintaining a large cash reserve for many years inrthe water Department. Puritz said that there was currently a 2.1 million dollar surplus, the purpose of which is to fund millions of dollars of needed improvements without borrowing. He presented an opinion by Town Counsel that, once the Town is reimbursed for expenses, surplus funds may be applied toward capital improvement and extraordinary maintenance or repairs, then applied to reduce water rates. The opinion added that there is no statutory authority to refund the
surplus. In answer to Tuck’s questioning the lack of a vote on capital improvements, Puritz referred to a water master plan on file. Resident R. Kramer interpreted the law as prohibiting the funds to cross into another fiscal year. Fixler expressed the opinion that there was not a right or wrong answer and it is a matter of interpretation. Tuck did not view the Finance Committee as the body to settle legal questions. Fixler suggested reliance on Town Counsel and said that the Finance Committee was not a rate setting board. Bluestein saw the issues as what is reasonable, the amount of time and the projects planned. Puritz reported that a communication from DPW Superintendent E. Hooper documented actionable water Town Meeting Articles on health and safety issues. Tuck suggested the issue be addressed by the Selectmen when the Water Budget is presented.
4. A letter was received from Lake Management Committee Chairman C. Towner, asking for input from the Finance Committee and other boards on the management of Lake Massapaog. It was believed that the Committee did not have the expertise to deal with this issue.
5. Puritz reported that the legislature was likely to give the governor authority to impact current local aid distributions and that guidance would be needed from the State. Grasfield urged promptly coming up with a plan with other departments. Tuck thought it an appropriate issue for the Priorities Committee. Puritz thought current action premature.
6. The minutes of January 6 were accepted. Vote: 7-0-3
7. Bergeron expressed disagreement with the allocation of administrative expenses to the Water Department.
8. Tuck reported that the Town Clerk was thinking about using senior citizens on the election staff.
9. The meeting adjourned at 9:30
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