Finance Committee Meeting
Minutes – August 2, 2004
Town Hall – 7:30 p.m.
Members Present: Brian Fitzgerald, David Fixler, Kenneth Goldberg, Charles Goodman,
David Hearne, Jonathan Hitter, Ira Miller, Paul Pietal, Gloria Rose,
Gregory Sydney (Hamilton)
Absent: Michael Feldman
1. Discussion of Articles for the Fall Special Town Meeting with Ben Puritz, Town Administrator, presenting Articles sponsored by the Board of Selectmen and responding to questions.
2. Puritz: ARTICLE 1 is a brief article with significant financial impact asking for a transfer of money from the School Department Account to the Stabilization Fund and/or a reduction on tax rate.
3. Mr Puritz’ recommendation to Selectmen would be a split between $275,000 Stabilization Fund and $275,000 to reduce tax rate.
4. It is not known how much will be available from State or the amount of public distribution. Should have figure before Finance Committee recommendation which is due Sept. 1
5. Sydney: Why should first $200,000 go to fund and not first to tax rate?
6. Puritz: Responded to express desire of Priorities Committee. They would like to go first to Stabilization Fund. For an operation of $55,000,000 this goes budget to budget with peaks and troughs. Stabilization Fund is a leveler.
7. Sydney: The Reserve Fund is $350,000 for extraordinary or unforeseen items.
8. Fixler: If it is all to be tax based, Board of Assessors and Selectmen’s primary role is the assignment of tax burden of the community. The tax rate is not differentiated. If all money goes to taxpayers, Priorities Committee has chance to express their concerns. Town meeting decides.
9. Hearne: ’05 appropriations reflected on November and May bills. If you didn’t levy this year, a rebate has to be given. Vote to consider overall amount for the next year. Should not be a priorities issue.
10. Puritz: It is in the realm of priorities. Not binding? Advisory.
11. Hearne: This only affected by act of town meeting, not by priorities. Does this article have how it is handled?
12. Puritz: Should handle before tax rate is assessed.
13. Grasfield: Everything was accurate. A simple thing is an underride. This reduces the amount that can be raised. While we used up the 2 ½% this past year, there is some considerable growth on local sources. The $100 became $105. If total to drop down to $100, need to pass underride.
14. Puritz: Could be effective levy going forward. You would change the base. Having funds available ahead against under funding from State
15. Fixler: Who decides if it should be sent back to taxpayers?
16. Pietal: The leadership from Selectmen, but town must decide. Selectmen make recommendation.
17. Fixler: Priorities did discuss not spending the $550,000, thereby not raising it. If you reduce appropriation to schools, you would reduce tax rate. $550,000 would not have to be raised.
18. Goodman: What if number is more than $550,000?
19. Puritz: Priorities can rebate up to $550,000, if more of the money goes to schools.
20. Goodman: Article written to target Stabilization Fund or to reduce taxes for FY’05 or to any other municipal purposes.
21. Fixler: Motion has to be specific. Finance Committee always makes motion. If $550,000 already appropriated to schools and budget passed, but receipts from State are more than what you anticipated. The School Department is not going to use $550,000 if not apportioned to any purpose as revenue.
22. Goldberg: Any consideration to funding health insurance deficit?
23. Puritz: Deficit has been reduced. May have slight positive balance. The deficit is substantially reduced, increased trend has been arrested. Waiting to get figures.
24. Goldberg: Increase of taxes was raised on the premise of getting back zero from State. Why doesn’t it make sense to give it all back to taxpayers. Would taxes have gone up 2 ½%?
25. Fixler: Money could have gone to other departments. The tax money has not been collected.
26. Puritz: Just received local aid information. Need to close out FY’04. Takes until mid-October. Mid-October to mid-November tax rate is set.
27. Fixler: Money chould all be applied to tax rate at last year’s meeting. $44 per household. Close to 1 ½%.
28. Fixler: The Town does not need to go through an underride to apply the $550,000 to the tax rate.
29. Pietal: Stabilization Fund—Rules Should apply to Stabilization Fund. Priorities—Why and to what purpose should it be there? If we need this year, we may want to expend $550,000 community center. Use for that or different purpose.
30. Hearne: Are there hearings associated with any of these articles other than Planning Board article?
31. Puritz: This process is in a formal hearing. In terms of Article 5 at tomorrow’s meeting of Selectmen, Chief Mann is speaking about it. Wilber money, which is Article 4, transfer of balances from prior articles.
32. ARTICLE 2 – Community Center. Puritz: Selectmen established Designer Committee. Proposals from structural engineers. Bids coming in tomorrow. Selected firm will be preparing a report by mid-September but not time to report to Building Committee and Town Meeting for repairs. Pursue insurance matters. To restore building. Building has localized and systemic problems. It will be restored and in use. Stabilize structure before onset of winter. Roof failure due to snow. Support systems are reinforced and can handle snow load. Over winter, work to interior repairs. Back in operation before this time next year.
33. Pietal: Fall Town Meeting could allocate some of $550,000 to fund this repair.
34. Puritz: The article provides for the crediting or application of insurance payments in hand of prospective. Subject to Town Meeting.
35. Pietal: Insurance could go toward this. Need to appropriate sufficient funds to repair.
36. Puritz: Insurance amount will not be known until mid-September. Insurance company makes its own assessment. Agreement should be reached before Town Meeting.
37. Goodman: Finance Committee to come in with recommendation without knowing costs?
38. Feasibility study measures prediction. Standing Building Committee will report to Town on every project. Figure sufficient to cover cost of budget. The minimum base to restore building. Provide for code upgrade.
39. Hitter: We need to make sure the FY ’05 capital appropriation figures into the overall cost. For example, if an HVAC is part of the proposal, money has already been allocated for this.
40. Puritz: Capital takes this as a figure for FY’06 going forward. If that is the case, net cost of amount from insurance.
41. Pietal: Reducing tax rate and not put into Stabilization Fund. Need to have funds available before winter. Use Reserve Fund for demolition. Something to be done before winter to shore up building.
42. Puritz: If vote to use Stabilization Fund, would another meeting have to be held? If it is in the fund, 2/3 vote to appropriate from fund.
43. Sydney: Underride—tax cut. To show fiscally sound town with good solid school system. Insurance not going to cover the whole amount of Community Center. Should tax be reduced in this fiscal year?
44. Article 4 – Wilber School. Puritz: Sr. Center, Library, and Town Offices. Twenty to twenty-three million dollar estimated project. Well-received concept; cost not well-received. Selectmen have asked for expression of interest for other use of Wilber. Funding for further feasibility studies: Article 19--$52,602.93; Article 5--$49,194. Twenty responses to serve on committee. $13,165.82 left in account from Standing Building Committee. DPW is weather sensitive to roof repairs.
45. Goodman: Why is it taking so long?
46. Puritz: On DPW agenda to do this project to button-up building. Doing work in-house to get most from their money. Sending out bids.
47. Fixler: The Selectmen’s decision to ask for expressions of interest for other uses of Wilber school is the direct result of the Finance Committee’s effort at last May’s Town Meeting..
48. ARTICLE 5 – Regional Dispatch. Puritz: Chief Mann up to date. Some logistical political problem. May not be at Fall Town Meeting. May be union issue. Mass. Hospital School to house. $80-85,000 annually. Will know status before Town Meeting.
49. Article 6 – Recreation Department. Puritz: Purpose of providing assistance to continue Teen Center Program. August 17 or 31 for further updates. $25,000 area for funding. Portion to be transferred by Hockomock Area Y to take over program. Was presented to Priorities Committee. Eventuality of funding? Not for profit. Come under Recreation Department. A case can be made whether it is funded through Town or Teen Program—hundreds of thousands of dollars have been raised. Compelling argument to maintain program. Supplement to Recreation Department—fund through Town. Where is money coming from? Transfer from other budgets, free cash, etc.
50. Town meeting requests. Bring up one time only? Goodman: If article is defeated, can it be repeatedly brought up to Town Meeting? Can be brought up until it passes.
51. Provide additional appropriation for Recreation Department. Rent is big item in budget. Under auspices of Town. Recreation Director ex-officio member of Teen Center. No rent for high school auditorium for Town Meeting. Pay only police detail, etc. Didn’t want to have Teen Center in a school building even though rent is big item. Do we have shortfall in services providing community?
52. Administrative leave with pay. Others taking over duties. Not seeking additional funds. Selectmen and Labor Council decide on paid administrative leave.
53. ARTICLE 16 – Septic System. Puritz: Transfer $22,000 from Community Septic Management Program to the Septic System Improvement Loan Program Account.
54. Special Town Meeting is October 18. When will warrant get to residents? The time to print is too soon, September 1 or 7. Cost more than $15,000 to do later. Without Finance Committee recommendations, there are 33 pages. If Finance Committee wants, can send supplement. What is most cost-effective way to print? Upcharge $4,000 additional to buy two weeks time. Is it worth the extra amount?
55. OTHER BUSINESS
56. Corrections to minutes of July 12, 2004: Item #1 b iii changed $5,00 to “$5,000”; item #1 b vi 2 c changed $5,00 to “$5,000”; item #1 add to end of third motion: “from FY’05 Reserve Fund.”
57. MOVED AND SECONDED to accept minutes of July 12 as amended.
58. VOTED: 9-0-1
59. Senator Joyce would like the Financial Committee roster. Paul Pietal asked to be put on the Personnel Board agenda for the next meeting.
60. The next meeting will take place on August 9 at Town Hall.
61. Motion to adjourn. Voted: 9-0-0.
62. Meeting adjourned at 9:25 p.m.
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Opened Action Items |
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Action Item |
Responsible |
Start |
Due |
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Discuss Health Insurance status at first Finance Committee Meeting in September |
Ben Puritz |
9/13/04 |
9/13/04 |
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Closed Action Items |
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Action Item |
Responsible |
Completed |
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None |
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