Adobe Acrobat Exchange 6.0Minutes of the Seventh Joint Budget Hearing
of the Finance Advisory Committee and Selectmen of Chilmark
Wednesday, 20 February 2008
Present : Selectmen Warren Doty (Chairman), Frank Fenner, and J.B. Riggs
Parker
Accountant Tom Wilson
Treasurer Melanie Becker
Executive Secretary Tim Carroll
Finance Advisory Committee Members Marshall Carroll (Chairman),
Richard Williams, William Randol, Frank Yeomans, Frank LoRusso,
Sarah Mayhew Shipway, and John Maloney
Recording Secretary Russell Walton
Fincom Chairman Marshall Carroll brought the meeting to order at 7 PM.
Several documents were distributed: a Budget Summary with the FY09 requested articles, a Tax Levy Limitation sheet, and a Budget Analysis for FY2009 which showed also FY 2006 and 2007.
Tim Carroll started the discussion & explanation of the Budget Summary, and Tom Wilson directed the group’s attention to a “short sheet” with more final and possibly more accurate figures.
Mr. Yeomans asked whether the Harbor department and others had returned with specific figures requested
Tim Carroll replied they had not, and pointed out the override figure of $190,346.93 in excess of the levy, as shown on the Budget sheets. He also commented on various sources of income which were not likely to be repeated, and which should not be relied on for budget purposes (e.g. Excises & penalties).
Tom Wilson noted, in relation to the Recap, that if local revenues don’t match or expand beyond those of previous years, or if they are ”too close” the risk of an override increases.
Warren Doty suggested using “free cash” to reduce the override.
Tom Wilson responded that this was not advised – the estimates of receipts were usually lower than the actual numbers.
Mr. Randol and Tim Carroll discussed the estimates of income – best estimate (maybe more nearly exact) vs. conservative estimates, the latter being preferred by auditors and DOR.
Marshall Carroll asked: can we/should we reduce the override? How?
Mr. Doty noted that a large part (almost $450,000) of the override amount is an unusual “bump” due to the education levy. (Later in the meeting he explained that
the sudden increase was a combination of the Town’s student population being a larger percentage of the total than previously and the change in the school funding formula.)
Tim Carroll pointed out that a non-recurring deficit should be dealt with by “Raise and Appropriate”; the DOR likes to see between 10 and 15 % of the budget in the
bank – we are now at about 14.4%. He also noted that it is easier to “sell” to the voters an override for a “popular” item such as Education.
Mr. Doty suggested that if the Stabilization Fund is healthy we don’t have to add the full $50,000 this year.
Mr. Fenner enquired about the payments in lieu of taxes figures shown: were they for one year or two (US Govt., for Nomans Land).
Tim Carroll indicated that the federal government calls these payments “profit sharing” and that, due to Federal funding timetables, payment should not be relied on. Payments could show up twice in one Chilmark Fiscal Year and miss another entirely.
Mr. Yeomans queried the figure given for “investment receipts’ - $49,000.
Warren Doty noted that, with property values rising, we have not needed an override. Because we have estimated conservatively, there has been a useful amount of “free cash”. Do we need to change the way we budget?
Tom Wilson advised that we should stay conservative, and avoid using free cash “frivolously”. He was concerned that we use money in ways which will maintain our bond rating.
Riggs Parker suggested:” What if we ask for a 2,8% reduction across the board?”
Tim Carroll responded that although some budgets were increased, some had been held level and some even decreased.
Warren Doty pointed out that some of the budgets included sums for “x, y, or z”, for things a department might need – e.g. the police department. He also noted that if people see their taxes going up they may be inclined to refuse an override.
Tim Carroll said that with a revaluation and the resultant rate decrease the actual taxes would remain steady for some people, but some would be higher.
Mr. Williams noted that country-wide there has been a drop in housing prices.
Tim Carroll commented that we don’t have much in the low and medium ranges.
The discussion turned to possible trimming of various items – waste collection, summer police ( excess because several individuals went back to college or … before Labor Day),etc.
Mr. LoRusso suggested looking for trimmable funds in the department which went over last year's budget by more than 10%.
Tim Carroll suggested, with vigorous concurrence by Riggs Parker, that we should not pay more than $400 per hour for Legal services. Riggs insisted that a condition of hiring legal help should be a $400 limit.
The group then went down the list, looking for surplus amounts turned back to the general fund, setting lower limits on several line items
430 Waste Collection - $51k returned , …………… reduce by $10k . 210 Police - budgeted for people who left, returned $40k reduce by $10k.
630 Beach reduce by $10 k
422 Highway $2k from Meetinghouse/Tea lane…………. reduce by $2k
( ) Planning – already reduced by $3k
(610) Library - one- time return : new director
220 Fire reduce by $2.5k
196 Selectmen’s’ maintenance $35 to $30 reduce by $10k
510 Board of Health - $7k returned , but VN contract…
This “trimming” came to $44,500, reducing the override amount to$145,846.93
Tom Wilson commented that raising the estimate of local revenue by $50k would bring the override under $100,000. This proposal was accepted with great pleasure.
The group then turned to the requested money articles for the Annual Town Meeting.
> The transfer into the Fire Department Stabilization Fund occasioned no comment.
> Fire department: Ice and water safety equipment _Fire Chief Norton said this would be a one-time equipment purchase. The desired equipment is a range of sizes of wet suits, preferably enough to have two teams equipped and ready to spell one another. Ice Rescue: two more suits are wanted.
Mr. Doty asked for a broken down listing for the Town Meeting.
NO ACTION Taken
> Fire Department: Enlarge door for new equipment. $2500 to $2700 for the door, plus carpentry to reframe the door, hence the estimate of $5500. MSV
>New station and land $3,300,000 !! Mr. Norton said this is needed soon; this article is in the nature of an alert or a wake-up call to the Town.
Riggs Parker questioned where we could put a new station; there is no land available except maybe at Peaked Hill. Mr. Norton said that we need something like 3 acres, a building with multiple bays and space for training, both inside and out. Riggs Parker suggested that the town’s “center of gravity” or concentration of development seems to be shifting easterly. Tim Carroll suggested that it might be a good idea to hire a consultant to help determine where the new station really should be placed. NO ACTION TAKEN
>Harbor dredging $25,000 asked, partly because anything over that would require bid formalities. MSV
> Fincom Reserve $40,000 MSV
> Stabilization Fund $50,000 MSV
> Community Center Maintenance R&A $5000 MSV
> Community center Refrigerator & freezer $1000 MSV
> Cultural Council (donation to State fund for island-wide use) R&A $1500
NO ACTION TAKEN
>DAS bill –late R&A $1060.84 MSV
> Grant reserve – this was described as the administrative costs and/or a small “local match” for large grants sought (? $800,000) NO ACTION TAKEN
>Police – Communications/computers – This was inserted by Tim Carroll for Police Chief Rich, who could not attend to explain further. The amount may be amended down at the ATM, or tabled, but might be needed. NO ACTION
> Assessors/Collector software $35,000 MSV
> Dukes Co. –pest management $5,598.25 – as past 4 years. It was suggested that the School probably has a contract. It was suggested that a provision be inserted to allow substitution of a private contractor. MSV
> Dukes Co. Health Care Access $7,192.43 Chilmark’s contribution MSV
(There followed a brief discussion of grants, etc – down by $47k)
> Historical Commission – acquisitions from CPA MSV
> CPA Open Space reserve from estimated income $35,000
>CPA Historical preservation “ “ “ $35,000
> CPA Housing “ “ “ $35,000
> CPA Budgeted Reserve “ “ “ $247.000
(Not on the sheets presented)
> CPA Stone Wall Repair – match with private parties along South Road (Van Valkenburgh, et al) $20,000
NOTE : all of the CPA items were approved by unanimous vote.
The Wireless Communication (“DAS”) Zoning Bylaw was discussed.
Riggs Parker outlined parts of the Bylaw, making the point that this is a complete replacement of our existing Wireless Communications Bylaw. There will be a joint Board for review approval requiring a ¾ vote. There should be no costs to the Town: an RFP would be issued to find a company to erect whatever poles may be needed and develop the system, with their costs to be recouped from cell-phone companies who use the system. Some discussion followed: “poles” –to be whip antennas on top of (mostly) existing telephone poles, placed selectively to avoid electric company transformers and primary electric take-offs, and buried vs. aerial lines (one provider proposes to drill horizontally to place underground fiber-optic lines).
>> The Override, as re-configured with the various deletions from budgets and a proposed increase in the estimated receipts, is now stated as $90,500 (+). This was calculated to add about $0.03/thousand to the tax rate.
The meeting was adjourned at 9:40 PM
Respectfully submitted,
Russell R. Walton,
Recording Secretary (in Annette Anthony’s absence on vacation)
Approved 7/14/2008
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