FINANCE COMMITTEE
MINUTES – AUGUST 11, 2003
TOWN HALL – 7:30 P.M.
Members present: Pietal, Goodman, Heitin, Bergeron, Feldman, Hearne, Hitter, Miller, Rose, (Garza). Members absent: Fixler, Sydney, Tuck..
1. The functions of the Association of Town Finance Committees were reviewed. Moved and Seconded that dues of $205 be paid to the Association of Town Finance Committees. Vote: 8-0-0
2. An invitation was received to join the Suburban Coalition at a cost of $200. It was pointed out that this expense was not in the budget and that the functions appeared to be similar to those of the Association of Town Finance Committees.
3. Pietal reviewed the impact of debt on the revenue forecast for the last three years, copies of which were distributed. He explained the difference between exempt and non-exempt debt, comparing exempt debt to a home equity loan and non-exempt debt to credit card debt. He reported that the Capital Outlay Committee tries to follow the guidelines of keeping non-exempt debt within 7% of the operating budget. He also pointed out the effect of other so called “fixed and uncontrollables”, primarily health insurance and Norfolk County Retirement. He added that the increases in health insurance were extremely challenging in view of the decreases in state aid. Hearne explained the big effect of borrowing for Cottage Street School construction this year and East Elementary next year, stating that the effect of
approving borrowing one year is not seen in the tax rate until the following year. Pietal showed the ratio of debt to the budget over the last three years. He stated that the debt statement showed that the Town debt was not over what was allowable, but it would be hard to get higher. Goodman said that the press had reported a decrease of one percent in state school construction reimbursement.
4. Hearne reported that the FinCom had discussed possible incentives for departments not to spend their entire budgets and suggested allocating borrowing to departments under the MUNIS system. Pietal suggested that this topic be brought up at a joint meeting with the School Committee in the fall. Pietal also suggested the use of the term “fixed” rather the “fixed and uncontrollable” and Heitin described these accounts as centralized or not allocated.
5. Heitin and Hitter reported receiving a full report of Water Department expenses. They had noticed the use of a lot of consulting services and some planned work not having been done. They have requested data on Water Department revenue and will continue to follow up.
6. The minutes of June 23 were accepted. Vote: 7-0-1
7. Pietal distributed a list of committee liaison appointments.
8. The meeting adjourned at 8:20
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