Town of Becket Finance Committee
March 12, 2009 Minutes
Present: Mike Falk, Ann Spadafora, Steve LaBelle, Jeremy Dunn, Amy Fyden
Also Present: Richard Furlong
Present for first 40 minutes: Bob Podoski representing Becket Athenaeum
The meeting was called to order at 7:04pm.
- Minutes of 3/5/09 FinCom approved with minor corrections
- Becket Athenaeum financial presentation
- Zina Jayne sent an email to MikeF which he read aloud. She reiterated information presented last week, and detailed two tiers of cuts that the Athenaeum is prepared to make if they cannot achieve their revenue goals for 2009; as well as outlining their long-term goals.
- Bob Podoski gave detailed information about the Atheneaum’s finances, including annual revenue & expenses for the past 4 years; current value and composition of Endowment; history of the Athenaeum; recent years’ fundraising experience, etc.
- Review of FY2010 budget draft #3
The warrant was reviewed and compared to the prior draft. All changes requested in the March 5th meeting were made to the budget, except one. Revenue & Tax rate corrections were made.
- Task: RichardF to check if any members of the Highway Dept. will be over the top of the pay scale, with a 1.7% pay increase
- Task: RichardF to ask Lenny Tisdale about Fuel Account. Estimated fuel costs may be higher than necessary, especially if we can lock-in some prices within the next month.
Mike spoke with Lenny re reduction in Transfer Station expenses. This is due to reduced volume, therefore costs are down.
- Task: RichardF to adjust Municipal Buildings to $50,000, as requested on 3/5/09
- Task: RichardF to work up some costs for the $20,000 article in Building Repairs, so we have a little detail to use in Town Meeting to support this proposal.
Since Jeremy will be absent for the next two FinCom meetings, the Athenaeum budget request was discussed. A proposal was made, but not voted on, that the Athenaeum be funded as currently shown in the budget, at $36,500. This is 50% of their additional request, and 52% more than FY2009. It is likely, given the presentation by BobP, that whatever funding level we support in FY2010 will be the requested amount for the next few years at least, given the uncertain outlook for the stock market. Most of their assets are invested in dividend-yielding common stocks including banks.
Recent proposed legislation would allow towns to increase the Meals and/or Hospitality Tax. Would it be worthwhile for Becket to do so? RichardF says not a good idea. The town has few businesses in such categories, and they are struggling; not fully-booked. Any additional tax would be a burden to them, and would not raise much revenue.
- Increased late fee (“demand charge”) on Tax payments
Kathy Hayn noted that recent legislation allows towns to increase the Demand charge from $5 to as much as $30. She recommended Becket increase to $10 or $15. FY2008 Demand revenue was $5,894 (more than 1,100 late payments!). Consensus to increase to $15. This might triple the revenue; and/or might persuade people to pay more promptly, which would improve cash flow and save short-term interest expense. Any increase must be approved by a simple majority at ATM.
Task: RichardF to draft an article for ATM, and to present this proposal to Select Board for approval
- Tax on non-profits use of buildings for employee family housing
This subject was discussed at the Jan. 2009 FinCom meeting and has been referred to the Assessors’ office. There could be substantial legal fees involved if Becket decided to pursue action against any such organization.
- Reserve Transfers – none
- Federal Stimulus update
Massachusetts is moving towards giving all roads & bridges Federal funds to MassHighway, rather than the towns. Any projects done by MassHighway must be to Federal Highway standards, which unfortunately limits the projects that can be done in Becket.
The grant is written and ready to submit; or perhaps has already been submitted. Maddy has not yet been paid; FinCom must transfer funds from the Reserve Acct. to Ambulance Acct. at a future
meeting.
- Next FinCom meeting is Thurs March 19th. Representatives from CBRSD will be present; Bill Elovirta will be present to discuss Police budget.
Jeremy will not be present at the next two meetings (March 19, March 26). AnnS will do notes & minutes.
- A vote on the warrant is likely at the April 2nd meeting. There is one possible later date, which coincides with the latest date the Select Board can approve the warrant.
There was no public input.
Meeting was adjourned at 8:54 pm.
Respectfully submitted,
Jeremy Dunn
Clerk
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