TOWN OF HARVARD
FINANCE COMMITTEE
Minutes
Meeting Date: February 6,2008
Meeting Place: Town Hall
Members Present: Steve Colwell , Marie Crowley-Sobalvarro, George McKenna, Terry Mead, Debbie Ricci (Chair), Bob Thurston
Others: Tim Bragan, Town Administrator (9:15) Lorraine Leonard, Finance Director
Meeting Time: 7:32 pm
Adjournment Time: 10:15 pm
Discussions and Actions
l The minutes of the Jan. 26th, Jan 30th, and Feb. 2nd FinCom meetings were reviewed and approved with minor modifications.(4-0-2)
l Hand outs given included Spending Growth analysis, Draft of Warrant articles,
l Lorraine Leonard and Tim Bragan are working on the Calculator. The Committee revisited the Financial Assumptions.
New programs will stay at 1/2% until we finalize the numbers and if necessary we will adjust.
Total payroll costs will increase 6.5%- up from 5% based on historical data.
Increase in tax revenues from new growth will be approximately $150,000 per year
Local receipts will increase by .5% per year.
Interest rate will be set at 4% over the next four years.
Local aid will be level funded.
l FinCom provided an update of the FY09 budget structure to the Library Director which was discussed at the Feb.2nd TriBoard meeting and asked the library to review their budgets for savings. Library personnel still had questions of PTO coverage as new spending. Library has concerns about continuation of the service contracts which will be expiring within the next few weeks. Tim Bragan and Lorraine Leonard will meet to plan for coverage.
l Lucy Wallace gave the FinCom an update on additional spending above the level $969,928 override amount which would include funds for postage expenses of $500, DPW expenses of $3,000, and a $1,000 increase in the Fire Department budget.
l A Warrant article will be included to create a Receipts Reserved for Appropriation fund for the Ambulance expenses and billing, with the first $15,000 going to the General Fund for FY 09.
l A Warrant article will be included for funds for the additional hours requested by the COA director position on contingency of override passage.
l School Department has recommended $50,000 to be put back in the FY09 budget and perhaps more.
l Debbie Ricci presented a draft of Spending Growth Analysis to give an update of FY09 budget.
l The FinCom discussed 'where are we?' with the total roll-up of the requested budget
Total of requested budgets $1,192,856
nt face="Times New Roman" size="+1" color="#000000" style="font-family:Times New Roman;font-size:11pt;color:#000000;">Looking at all figures the question arises: Are we being fiscally responsible?
Conversations included the need to control the Labor costs which are driving the budget. Discussion on structuring the budget process differently by starting with revenue figures and then assigning budget amounts to departments, then the departments would justify any additional expenses above and beyond budget. Plans to inform the citizens of the current trends in spending and the projected financial impact of the continuation of these trends were also discussed.
l Bob Thurston left meeting at 9:40pm; George McKenna left meeting at 10:03 pm
l Steve Colwell gave an update on the Boiler situation at the Bromfield School. One of the boilers is leaking, the other is working properly. A plan to replace both boilers with four smaller units is being discussed. This would result in a ~30% reduction in fuel costs. The work involved has not been itemized yet. There has been no formal request or written quotes presented at this time.
l Rough drafts of the ATM Warrant were disseminated to the Committee.
l Meeting was adjourned at 10:15 pm (4-0-0)
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