Present: Peter Fimognari, Christine Edwards, John Goodrich, Joel Keller, Bob Margerison, Maureen O’Sullivan, Jim Pennington, Pete Ross, Ann Lee (FinCom Admin. Asst.)
Also Present: Gretchen Neggers (Town Administrator), Deb Mahar (Town Accountant), Kathleen Norbut (Selectman)
Absent: Tina Augustin, Chris Carlin, Paul Desmond
The meeting was convened at 6:30 p.m.
A motion was made to accept the minutes of the 10-24-05 meeting as written. Mr. Goodrich asked to change the first line under CORRESPONDENCE to read “if any committee member would be able to attend” instead of “wished to attend”. A motion was made to accept the minutes with the change. It was seconded and SO VOTED.
CORRESPONDENCE
Mr. Fimognari shared an e-mail he received from Kathleen Norbut, Selectman.
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OLD BUSINESS / NEW BUSINESS
STM November 21, 2005 Warrant: (see attached warrant) Ms. Neggers explained there are 2 articles to allow the town to pay for bills for flood damage, because at the time the warrant was written it was not clear what would be the best course of action. The State Emergency Finance Board has given authorization to Monson to temporarily borrow $225,000. The President has declared a federal emergency designation for the area, which will clear the way for Monson to receive reimbursement of 75% of the cost of damage repair from FEMA. Early next year, it might be possible to appropriate the remaining 25% from the Stabilization Fund. Ms. O’Sullivan asked how FEMA calculated the cost. Ms. Neggers explained FEMA adds the use of equipment and other such expenses to the actual bills.
Mr. Goodrich asked if the preferred action is to borrow the funds, or take them from the Stabilization Fund. Ms. Mahar explained the goal is to not have to borrow any money. The plan is to monitor cash flow in the hopes bills can be paid from future revenue. Mr. Goodrich clarified that the preferred action is for the Finance Committee to recommend the town vote to approve to borrow the money, but not do so. Ms. Neggers added that if bills were to be paid from the Stabilization Fund, reimbursement, when received, would have to be closed to Free Cash before it could be returned to the Stabilization Fund.
Mr. Goodrich motioned the Finance Committee recommend the town vote to pass Article 1 as written, modifying the amount to $225,000. It was seconded and SO VOTED, unanimously.
Mr. Goodrich motioned the Finance Committee recommend to Pass Over Article 2. It was seconded and SO VOTED, unanimously.
STM November 7, 2005 Warrant: (see attached warrant)
Article 1: Mr. Goodrich motioned the Finance Committee recommend to pass the article as written. It was seconded and SO VOTED, unanimously.
Article 3: Ms. Neggers explained the total amount of cuts needed to balance the budget, to account for increased fuel costs, decreased as the result of 2 events – an increase in the estimate of revenue from new growth, and falling fuel prices. The original cuts were based on a worst-case scenario, and as fuel prices fell, it became apparent it was no longer necessary to reduce employee hours. The cemetery position, however, will remain funded at 20 hours. School Excludables line and the repair line for the Administration and Memorial Hall buildings have to be increased.
Mr. Goodrich asked if any expense account reductions were increased since the first reduction proposal. Ms. Neggers said no. Mr. Goodrich asked what percentage increase was used for diesel costs during the budget process. Ms. Neggers said it was level funded. Mr. Goodrich noted the School was hopeful it would be able to absorb the diesel cost increases. Ms. Neggers explained increases were greater than thought – the last delivery was at $2.75 per gallon, and diesel was budgeted at $2.15 per gallon.
Mr. Margerison asked why the Treasurer’s stipend was removed. Ms. Mahar explained the Treasurer would receive the stipend if she were certified by her association. She is not certified.
Mr. Goodrich asked why the Cemetery position is to remain funded for only 20 hours. Ms. Neggers explained the position is currently vacant.
Mr. Ross asked if there are any far-reaching thoughts regarding the town’s budget. Ms. Neggers noted FinCom will need to carefully look at individual departments’ budgets next year. Ms. Norbut added cuts may be needed for FY07, and invited FinCom to discuss strategy before the January budgeting process begins.
Mr. Fimognari noted the Selectboard looked at combining departments’ manpower. Ms. Norbut explained the impetus came from the department heads. Mr. Fimognari asked if the Cemetery department could be placed under the Highway department. Ms. Neggers explained it can not, as Monson has an elected Highway Surveyor, not a DPW.
Mr. Goodrich motioned the Finance Committee recommend to pass the article as written. It was seconded and SO VOTED, unanimously.
Article 2: Mr. Goodrich motioned the Finance Committee recommend to Pass Over this article. It was seconded and SO VOTED, unanimously.
Article 4: Mr. Goodrich motioned the Finance Committee recommend to pass the article as written. Mr. Ross asked if the trash rate will change as a result. Ms. Mahar explained the rate will not change from her recommendation of raising the rate $1 per month for the coming year. It was seconded and SO VOTED, unanimously.
Article 5: Ms. Neggers explained the maximum grant Monson can receive from the EPA is $200,000. This loan is the balance needed to clean the property to market it for development. One possibility is for the façade to be maintained and the building enlarged via the back side, providing space for 10 to 12 condominiums. It is expected the developer will absorb the cost of this loan. Mr. Ross questioned the town’s ability to repay the loan. Ms. Neggers explained it is intended that the sale of the property will cover the loan amount. Also, the loan is discounted 20% upon signing, lowering the amount to $120,000, and is structured so it can be repaid over a period of time at a generously low rate. Mr. Keller asked if there are any interested buyers. He expressed his concern that
there could be no interest in the building, and the town would have to repay the loan. Ms. Neggers explained it has to be cleaned, and at least in the meantime it would remain on the tax roll.
Mr. Goodrich motioned the Finance Committee recommend to pass the article as written. It was seconded and SO VOTED, with Mr. Keller opposed.
Article 6: Ms. Neggers explained this is the conclusion for a subdivision in which the developer adhered to all of Monson’s subdivision regulations. Mr. Margerison stated he would like the Planning Board to speak to FinCom. Ms. Neggers noted the Planning Board recommends it. Mr. Goodrich motioned the Finance Committee recommend to pass the article as written. It was seconded and SO VOTED, unanimously.
The next scheduled meeting of the Finance Committee will be November 21, 2005 at 6:30 at Granite Valley Middle School.
The meeting was adjourned at 7:40 p.m.
Respectfully submitted,
Ann M. Lee, Administrative Assistant to the Finance Committee
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