PRIORITIES COMMITTEE

March 22 , 2011

                                                      MINUTES

The meeting of the Priorities Committee was held at 7:30 pm in the Selectmen's Meeting room

and was called to order at 7 :30 p.m. by Chair Laura Salomons.

Members Present:

Chair:                           Laura Salomons

Board of Selectmen:   Richard Powell and Walter Joe Roach

Finance Committee:   Ira Miller and Charles Goodman

School Committee:     John Hitter

Others Present:

William Fowler, Cindy Doherty and Benjamin E. Puritz

Meeting Minutes

It was MOVED and SECONDED to approve the Regular Session Minutes of January 25, 2011 VOTED: 6-0-0

February 8, 2011 were held 

Update on FY’12

Bill Fowler, Finance Director, distributed the FY’12 Revenue Forecast.  The following was discussed:

§ State Aid –The Mid and High Estimates have not changed.  The worst case scenario would be that the Low Estimate down by 3.51%;

§ Local Receipts have not changed;

§ Local Assessment has not changed;

§ Fixed, Uncontrollable or Special Expenditures – Nothing has changed except for the two shaded lines which are the Insurance and the Norfolk Country Retirement System.  Would like to have Norfolk County to justify as to how they arrived at this number.  No excessive year could be more than 5% or 10% to decrease from prior year.  Health Insurance is down and Norfolk County is up;

§ Supplemental tax revenue - $350,000 is now out.  Partial construction of Target and BJ’s at a three-month slippage.  Puts permits back a year and the supplemental back another year;

§ Nothing in the Tax Levy calculation has changed – Calculation:  Take last year’s tax rate-add new growth-add 2.5% bump and add debt reduction.  That is the maximum amount you can raise;

§ Available Funds - Receipts Reserved for Retro MSBA (debt) – There is still retro monies coming in, about $200,000. 

§ It was requested that the following figures be put on the blackboard:

Possible Local Aid reduction                             $262,000

Loss of Supplemental tax revenue

 due to BJ and Target starting building later        $350,000

            Potential loss of  FY’12 revenue                       $612,000

            How to cover loss

            MSBA retro                                                     $200,000

            Overlay                                                            - $80,000

Now potential loss of FY12 revenue

            After new revenue included                               $ 332,000

            BUT Norfolk County Retirement Costs up        $ 335,000

            New Potential loss of  FY’12 revenue   $ 667,000

            But use money from Health Insurance

            Trust Fund                                                       -$500,000

            Now potential loss of FY12 revenue                 $167,000

Tax Title                                                          -$25,000

            Now Need                                                      $142,000

            Additional Retro MSBA                                   - $25,000

            Additional Health Insurance     

            Trust Fund                                                        -$117,000

                                                                                                0

A MOTION was made by Ira Miller and seconded by Chuck Goodman to reduce budget allocation from 2.41% to 2.0%.

Discussion

· Would have to cut budgets by $200,000 - $150,000 by the Schools and $50,000 by the Selectmen sector;

· 2.41% would maintain services for the Town;

· There would be no tax increase if 2.41%;

VOTED:  4-2-0 Not to approve to reduce budget allocation from 2.41% to 2.0%. (Voting not to approve reduced allocation: Powell, Roach, Salomons, and Hitter. Voting to approve reduced allocation: Miller and Goodman)

It was MOVED and SECONDED to adjourn. 

The meeting was adjourned at 9:10 p.m