FINANCE COMMITTEE
MINUTES – MARCH 10, 2003
TOWN HALL – 7:30
Members present: Tuck, Heitin, Pietal, Grasfield, Bergeron, Fixler, Gillen, Goodman, Hearne, Sirkin (Garza). Members absent: Atlas-Gordon, Bluestein
1. The minutes of March 3 were accepted with the following change: In #12, delete the second sentence. Vote: 7-0-2
2. The minutes of March 5 were accepted. Vote: 7-0-2
3. Board of Health member J. Goldberg explained that the proposed Board of Health Revolving Fund for Monitoring Septic Systems would use application fees and fees assessed to owners of systems requiring monitoring to pay for the cost of monitoring and administration. Surpluses generated beyond the cost for the next fiscal year would go to the General Fund. The Article has not yet been reviewed by Town Counsel. Board of Health member A. Stead reported that there have been 30 variances requiring follow up over the last five years. Bergeron suggested that the article not be applicable to the Town.
4. Health Administrator L. Rosen reported that for the first time this year the Board of Health has collected Medicare and HMO reimbursement for immunization of senior citizens. She thought that the $4.77 reimbursement per senior immunized would double next year. A revolving fund is being proposed to use those fees for additional vaccine and supplies. This year $700 in reimbursement went into the General Fund. She predicted that the State will soon mandate the collection of the reimbursement.
5. Moved and Seconded to recommend approval of the health clinic revolving fund. Vote: 8-0-1
6. Moved to recommend approval of the compliance with septic variances revolving fund. Heitin viewed the septic fees as a tax, pointing out many situations that required variances. D. Grasfield suggested bonding rather than a fee and reminded the Committee that there were only 30 such variances in 5 years. Bergeron pointed out that there were two separate issues: the revolving fund and concerns over variances. It was decided to invite the Board of Health to return to answer questions.
7. Capital Outlay Committee Chairman B. Gordon reported that the Capital Outlay Committee had removed $1,600,000 from the original Capital requests. They had not yet agreed on the proposed recreation facilities at the former landfill nor on communication upgrade. He added that there are newer and different communication systems on the horizon and that there may be funds available. Heitin reported that $60,000 in grant money reduces the $450,000 communication request of $390,000. Gordon also said that they are awaiting an opinion from bond counsel on borrowing for books but decided to recommend approval of the proposed transfer from other school funds pending that opinion.
8. Some of the other decisions of the Capital Outlay Committee reported by Gordon included:
1) using a previous COA capital authorization for the COA mini-bus as the previous authorization was covered by a grant;
2) nothing for the Fire Department military tanker as they are “making do” with what they have;
3) $51,200 for a Fire Department Plymovent system for ventilating the Fire House;
4) $30,000 for evaluating the police communication system; (Heitin adding that
this includes the grant writer.)
5) and two police vehicles, down from three.
9. In answer to a request from Sirkin, Executive Secretary Puritz will provide an updated list of Town vehicles.
10. Gordon reported that no sidewalk maintenance was included in their recommendations and road maintenance was scaled down. Puritz said that Chapter 90 was half what it was previously. Fixler warned that cutting road maintenance would cost more later. In reply to questions about where the focus would be, Puritz said that twenty streets were listed for Fiscal 2004. He added that major roads are in worse condition because of eligibility for outside funding and Bay Road and Main Street are being pursued.
11. Gordon explained that, because of financial constraints, Capital had looked at necessity rather than starting with a fixed percentage of the operating budget, but their recommendations amounted to 7%. Selectman Garf said the rationale was based on expected future financial difficulties.
12. In answer to Goodman’s question regarding authorized funds for Police Station remodeling not being expended, Executive Secretary B. Puritz reported that the funds were borrowed but the remodeling was put on hold during the town facilities study. Parts of the project, such as window seals, were done and the project is being put out to bid.
Discussion ensued on unspent authorized capital funds in general. Puritz said that the Capital Outlay Committee has a list of balances and the authorizations can be reallocated by Town Meeting.
13. Gordon reported that the Capital Outlay Committee recommended $50,000 to continue improvements at the beach and $15,000 for work on the archway. He added that the beach improvements were recommended in part to encourage unpaid volunteers and that the archway was a safety issue.
14. Gordon said that the School Department started with what could have been requested compared to what they actually requested, and that Capital still reduced their request. The bare minimum was recommended for security and communications. In answer to Bergeron’s questions about borrowing $130,000 for repairs instead of covering them with operating funds, it was explained that the acoustical paneling was to comply with special education mandates. Tuck saw them as being permanent and over $10,000 and thus eligible for borrowing. School Superintendent C. Jackson added that new code requirements will mandate such improvements in new schools. She added that the Middle School is in need of significant repairs that can’t wait.
15. Answering Goodman’s question about using unexpended septic borrowing for infrastructure rather than books, Jackson said that as under the fiscal circumstances sufficient books could not be included in the operating budget, they propose using funds from incomplete and abandoned projects for books. Jackson saw borrowing for books as appropriate and legal and commonly done in other places. She said that when books are adequate, they would begin to rotate them. Grasfield compared borrowing for books to borrowing for police cruisers and thought all departments should be treated similarly. He added that it would displace other borrowing items.
16. In answer to Fixler’s suggestion that other departments should also examine unspent capital authorizations, Puritz reported that amounts in unexpended funds were reviewed and that most were in process or expected to he spent but he agreed that some should be cleaned out. School Committee Chairman S. Liao stated that, when a project is completed, funds should be de-obligated.
17. Proponent A. Cheyer explained that there are two petition articles on rescinding authorized unspent borrowings: a general article sponsored by Pietal and her specific article rescinding the $750,000 authorized in 1988 and 1989 for the landfill. In light of the present financial difficulties, she thought it time to rescind that borrowing. She gave two reasons. She said the first was procedural, saying that it was irresponsible to borrow fourteen years after the authorization. She said the second was financial, documenting the total cost of $1,700,000 ($950,00 of which to be borrowed) for the proposed athletic fields not counting monitoring and maintenance. Selectman Garf reported that the Selectmen have not voted on the issue but, because of financial considerations and the uncertainty of the grant, may
withdraw their advisory article on using the authorization for athletic fields. Puritz said that they are still drawing down on the funds, spending $20,000 to $25,000 annually on monitoring. Cheyer explained that $140,000 of the amount was issued. Bergeron suggested putting aside an amount for monitoring, but Puritz thought that difficult to predict.
18. Pietal explained the article to rescind all authorized debt not issued within three years. He said that if there were a need for a project, the town could decide to borrow again. Garf said some rescinding may be needed but there was some risk and suggested a time frame of three years after the first borrowing. Puritz thought it preferable to review the authorizations and bring them before the Capital Outlay and Finance Committees, saying the article addressed the passage of time rather than the merits. Bergeron suggested having Capital do an annual review and give exceptions to the rescinding.
19. Puritz reported that the article to allow the Sharon Soccer Association to lease town property on Gavins Pond Road for a soccer field was necessary in order to meet the requirements of the Uniform Procurement Act. J. Bronstein of the Sharon Soccer Association explained that the Soccer Association is working with Town Counsel on the agreement. They had met with neighbors and the agreement includes ongoing communication with the neighbors. Only two neighbors were opposed and some had concerns. Garf reported no one objected at public hearings. Conservation Commission Chairman A. Arguimbau said that it was acceptable to the Conservation Commission. Puritz said the final draft should be ready in about a month.
20. The meeting adjourned at 10:35
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