The URL can be used to link to this page

Home My WebLink AboutFCMeetingMinutes_04.03.03 APPROVED FINANCE COMMITTEE MINUTES Aril 3.2003 ATTENDANCE: The following members were present: Jack Watkins,Chairman,Bernice Fink,Vice Chairman,Paul Stewart,Keith Mitchell,Mark Nichols,Melinda Coppa,Paula Porten,Steve Dawe and Mike Batsimm. Mark Rees,Town Manager,Donald Stewart,Board of Selectmen,Sue Ellen Holmes,Library Director,Mike Beirne,Firefighters Union President,and residents. CALL TO ORDER: Jack Watkins,Chairman,called the meeting to order at 7:01 pm. APPROVAL OF THE MINUTES: Keith Mitchell made a MOTION seconded by Mark Nichols to approve the amended Minutes of March 20. The vote passed unanimously. The Minutes and Public Forum Report of March 27 will be reviewed at the next meeting. NEW BUSINESS: Review Updated Department Budgets(distributed by Mark Rees on 03/27/03) Mark Rees,Town Manager,gave the Finance Committee an update on the Recommended FY2004 Budget. He referred to memos from Steven's Memorial Library and Youth Services. Both the Library and Youth Services Directors submitted line item changes within their budgets but kept the bottom line equal to the Town Manager's Recommended Budget. Mark Rees recommended both budgets for approval as submitted. Keith Mitchell MOVED to accept the Steven's Library and Youth Services budgets with changes. Mark Nichols seconded the MOTION and it passed unanimously. Mark Rees stated that the Planning Board,Health Department and COA did not submit any changes to the original budgets. The FinCom took no action on these budgets. Enterprise Fund After a brief discussion on the Enterprise Fund,Keith Mitchell MOVED to recommend favorable action on the Town Manager's proposed Water Enterprise Budget. Paul Stewart seconded the MOTION and it passed unanimously. The FinCom decided that this motion includes the transfer from the Retained Earnings Account. Keith Mitchell then MOVED to take favorable action on the Town Manager's proposed Sewer Enterprise Budget including any transfers that may be made. Paul seconded the MOTION and it passed unanimously. Keith MOVED to take favorable action on the Town Manager's proposed Stevens Estate at Osgood Hill Enterprise Budget. Steve Dawe seconded the MOTION and it passed unanimously. Capital Improvement Projects "B"began by stating that in light of the Town's inability to pay down principal on bonding approved in fiscal year 2003,she made the MOTION to advise the School Department to delay furnishing and equipping the new high school until FY2005(which is when the high school was scheduled to be complete),and thereby delay the Central Office move to the summer of 2004(FY05),then apply the$80,000 appropriation from the School Central Office Relocation to fund the DPW drainage item(which would change the drainage item from a bonding to a cash item). Mike Batsimm seconded the MOTION for discussion. The FinCom agreed that more information is needed before a decision can be made on this issue. Jack noted that the MOTION can be reintroduced at Town Meeting. "B"MOVED to withdraw the MOTION,seconded by Mike Batsimm. "B"then MOVED to recommend all the bonded items on the proposed CIP list for which no appropriation has been designated be made subject to capital exclusion override so that there will be a funding source for them. Steve Dawe seconded the MOTION for discussion. Mark Rees noted that in his Operating Budget,he suggests 5%of the budget be dedicated to debt service in order to constantly replace, renovate and rejuvenate capital needs. Mark also stated that he does not think a Proposition 2'/z override should be used for routine maintenance. Jack then asked for a vote on"B's"MOTION. The MOTION was defeated 1-8 with"B"in favor. Keith Mitchell then MOVED to recommend favorable action on the Town Manager's Capital Improvement Plan including the method of payment. Melinda Coppa began discussion on an issue presented at the Public Forum of March 27. The issue was to use the Free Cash to pay for Capital items or to bond those items and have the cash available for other uses in the budget. After a lengthy conversation on the use of Free Cash,Paul seconded Keith's MOTION and it passed 8-1 with"B"opposed. Jack noted that the FinCom has been working on a"Key Budget Items"list for the past few weeks. Jack asked the FinCom for solutions on these budget items. Steve Dawe asked the group to reconsider the recommended figure of$600,000 for New Growth. He took averages of the New Growth figures from the last six or seven years,and said that figure was closer to$750,000. Steve then proposed that the FinCom budget correctly and call New Growth somewhere in the vicinity of$750,000. Mark Rees recommended an increase of$100,000 to $700,000 for this line item. In Steve's budget,there is $176,498 in surplus after his adjustments. Steve proceeded to explain his budget by each line item. .A.fter some discussion,Jack noted that what is very apparent is what the FinCom doesn't know,and it's a lot. He noted that the worse case scenario for reduction in state aid is 20%(currently at 10%). Jack then reiterated the need for more information before approving the budget. He then read the following information and asked the FinCom to accept it as his MOTION: Given that revenue and expense information is unreliable at this time and will likely undergo considerable change in the coming weeks,I MOVE that the Finance Committee adopt the Manager Recommended General Fund Budget Fiscal Year 2004 with the following additions and changes:(Jack then passes the gavel to Vice Chairman"B".) Description Revenue Expense Comments State Aid $1,620,473 Diff:God's Rec.Bud&Town Mgr's Rec.Bud for Ch70,Lottery,Add'1 Asst.&PILOT Transitional State Aid $1,921,932 Transportation Funding $244,323 Additional State Aid Line item elimination Regional Schools $203,428 Assumes Reg.School's requesting Chapter 70 money from member towns Additional New Growth $102,202 Still$50,000 below prior years'average Restoration of Police Service Cuts $153,372 Dept requested$254,000 Restoration of Fire Service $62,538 Dept requested$125,000 Cuts Article to Fund Storm Water $40,000 In compliance with Federal Mandate.Not in Sewer Programbudget-added via Warrant Article Overlay Surplus $300,000 Original estimate was$200,000 Release of Assessor's $0 Original amount of$89,090 thought to be Article for Edgewood available will be retained by assessors Snow&Ice Deficit(not in $70,000 Assumes full use of reserve fund$480K and budget-expected carryover) $10OK FEMA grant-now funded in FY03 Maritime Pipeline Funds $70,000 Offsets Snow&Ice deficit funded in FY03 TOTALS $2,394,134 $2,394,134 'Italics denote new information/additions" Difference $0 While the above changes provide for a balanced budget,the Finance Committee is concerned over the use of free cash as a supplement to the General Fund revenue. It is contrary to our budgeting philosophy to use a one-time revenue source to fund recurring expenses. However,it is recognized that these are difficult financial tunes and such an action is necessary. It must be noted that changes in revenue and expense information over the next several weeks will most likely change the budget. A final recommended budget may not be delivered until Town Meeting. Keith seconded the MOTION. Paul MOVED to amend the MOTION by removing the paragraph starting with"While the above changes". Paul's amendment was not seconded. Keith MOVED to amend the MOTION by adding the words"and expense"after the word"revenue" within the entire MOTION. Mark Nichols seconded the amendment and it passed unanimously. Melinda asked the FinCom to address the issue of reducing trash costs. It was noted that this issue has to be addressed and is very important,although any change now would not affect the FY04 budget. The FinCom agreed to delay discussions on trash until after the Town Meeting. "13"asked the members to vote on Jack's MOTION. Paul noted that the Transportation Funding line item is$244,323 in Jack's budget and $219,891 in Mark's budget because Mark already reduced the figure by 10%. Steve then MOVED to amend the MOTION by putting the surplus of$24,432 into the FinCom Reserve. Mark seconded but the amendment failed by a vote of 4-5 with Jack,Mark,"B",Keith and Paul opposed. Jack MOVED to amend his original MOTION to reduce the New Growth line item by$24,432 in order to have a balanced budget. Mark Nichols seconded and the MOTION failed. Keith Mitchell then MOVED to amend Jack's original MOTION by reducing Transportation Funding by$24,432 and increasing Group Health Insurance by the same amount. Jack seconded and it passed unanimously."B"asked the group to then vote on Jack's amended MOTION which was seconded by Keith. It passed unanimously. ADJOURNMENT: At 9:30 pm,Mike Batsimm MOVED and Melinda Coppa seconded to adjourn the meeting. The vote was unanimous. )FUTURE MEETINGS The next Finance Committee Meeting-is a workshop on Saturday,April 5 at 8:00 am until noon in the Conference Room at Town Hall. 2