FINANCE COMMITTEE APRIL 2, 2007
Present: Peter Fimognari, Pete Ross, Chris Carlin, John Goodrich, Bob Margerison, Maureen O’Sullivan, Jim Pennington, Christine Edwards, Brenda Payette (Administrative Assistant)
Also Present: Deb Mahar (Finance Director), Gretchen Neggers (Town Administrator), Ed Harrison (Selectmen), Hope Bodwell (Library), Dot Jenkins (Town Collector), Kathleen Norbut (Selectmen), Lori Stabile (Republican), Karen Patenaude (School Committee)
Absent: Tina Augustin, Joel Keller
The meeting was convened at 6:35 p.m.
A motion was made to accept the minutes of the 3-26-07 meeting, as written. Correction under the section FY08 Budget Priorities discussion: “Mr. Mahar” corrected to “Ms. Mahar”
It was seconded and SO VOTED, unanimously.
CORRESPONDENCE
FinCom revisited the Request for transfer from the reserve fund dated March 23, 2007.
Appropriation account: Cemetery Unemployment 491-5172-E100
Present balance in said appropriation: $-340.00
The amount used to cover the unemployment expense for the cemetery department
Ms. Mahar said amount requested of $4,250.00, can be reduced to $4,000.00
Mr. Ross questioned this amount. Ms. Mahar said nothing was paid for unemployment in FY05 andFY06 and in FY04 $1,000.00 was paid. Ms. Mahar suggested that FinCom discuss this request with Mr. Lovell. Mr. Goodrich made a motion to invite Mr. Paul Lovell, Cemetery Department, to a FinCom meeting to discuss his request. It was seconded and SO VOTED, unanimously.
Ms. Payette will send an invitation to Mr. Lovell to attend the next FinCom meeting on April 9, 2007.
· Letter to Ms. O’Sullivan regarding sweep account information.
· Association of Town Finance Committees Spring Workshop May 3, 2007 at the Amherst Town Hall. Ms. O’Sullivan will attend. Ms. Payette will send in registration.
MEETINGS ATTENDED BY MEMBERS
Selectmen Meeting: Mr. Ross attended the selectmen meeting. Mr. Ross stated that the selectmen voted for an override, the amount not determined at this time.
Amounts asked for $125,000.00 for the Highway Department and $1.4 million for the School Committee.
Long Range Planning Meeting: Mr. Ross handed out a worksheet with Long Range Financial Planning Recommendations to the Finance Committee for FY2008. This worksheet showed one-time revenues and one-time expenditures.
One-time Revenues Amount
Overlay surplus $96,400.00
2007 “low” snow & ice deficit $111,000.00
Difference in Pension appr. $91,110.00
TOTAL $298,510.00
One-time Expenditures Amount
Generator for PD $25,000.00
BOA Mapping Program $25,000.00 DOR requirement
Lighting Upgrades (sch/town) $95,000.00 creates saving in KWH
Increase snow & ice approp. $25,000.00 would reduce deficit amount in future years
School Language Lab $83,510.00
F/B Reserved for HS Debt $45,000.00
TOTAL $298,510.00
OLD BUSINESS / NEW BUSINESS
Discussion re: Override: Mr. Harrison spoke regarding the override. He stated the ballot question has not been written yet. Hopefully, the ballot language regarding an override will be completed by April 10, and then it will go to Nancy Morrell, Town Clerk to be printed. Mr. Goodrich asked Mr. Harrison for a draft of the language for the Department Head Meeting on April 17, 2007.
Finance Committee members continued discussions regarding how to proceed with the FY08 Budget and an override. Mr. Goodrich asked if the town was moving forward with an override; why not prepare a budget using no free cash. It was stated that seeing as no override amount is available at this time, hopeful to have one in a couple of days, FinCom should prepare a balanced budget assuming no override.
Mr. Carlin asked who is obligated to share with the town what an override will do in the coming years. He stated that the town would always have pensions, health insurance and new staff members. A one-time override will not solve financial problems for coming years.
Ms. Patenaude responded by saying that the school committee is gathering information to present to the town. Ms. Patenaude also stated that she went to a seminar regarding Chapter 70 formula. In the past years, the state gave an average of 6% to the schools, this year the state gave 1.7%. Therefore, the school budget cannot be level funded, raising the issue of an override.
The Chapter 70 formula is being revamped and it is not a set formula to calculate future Fiscal Year budgets.
Override discussion final thought was to wait and see what the language on the ballot reads and proceed accordingly.
Discussion re: FY08 Budget: Mr. Ross handed out the worksheet from the Long Range Planning Committee. The action requested from FinCom is adjust:
Line item 930 “Annual Capital” amount to $266,510.00
Line item 423 “Snow and Ice” amount to $125,000.00
Mr. Carlin motioned to move forward one-time revenues of $298,510.00 to use for one-time expenditures of $298,510.00. It was seconded and SO VOTED, unanimously.
FinCom members did not vote on the proposed budget, they would wait until the Department Head Meeting on Tuesday, April 17, 2007. Ms. Mahar sent the proposed budget via email to all Department Heads.
The next scheduled meetings of the Finance Committee are April 9, April 17-Dept Head meeting, April 24 and April 30, 2007.
The meeting was adjourned at 8:30 p.m.
Respectfully submitted,
Brenda I. Payette
Administrative Assistant to the Finance Committee
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