Town of Newbury
Finance Committee Meeting
Wednesday May 14, 2008— 7:00 pm, Town Hall
Meeting Summary
Committee: Eugene Case, Bill Cooper, Larry Guay, Pete Morse, Dave Newbert, Frank Remley (Chair), and Anna Tenaglia
Ex-Officio: Chuck Kostro, Finance Director
1. Apr. 30, 2008 meeting summary: Unanimously approved without further comment or changes.
2. GIC Presentation: Linda Collins of the Personnel Board and an Assistant V.P. of Anon consulting, a firm
specializing in employee benefits consulting, presented her analysis of the feasibility of joining the state Group
Insurance Commission. This option was made available to all cities and towns by the state.. Current coverage is
provided to the Town by the MIIA. The main finding was that, while the GIC plan rates would cost somewhat less
overall, the savings would be absorbed by plan changes including higher ER, Rx and increased in-patient and
outpatient co-pays. Also, the GIC rates will rise by 8.5% to 10.0% this year while the MIIA plan rates, currently
budgeted by Newbury for FY 09 will only rise by 2.4%. A decision whether or not to participate in the GIC program
must be made by Oct 1 each year, while new rates for the coming year are not announced until Jan 1. Also, to
change any plan coverage requires support of all employee unions, which, for Newbury, includes the Police
Association. Also, there is a three-year lock on a Town’s enrollment if GIC is chosen, and any unions would have to
give-up collective bargaining for benefits for that period. It was recommended that the opportunity be reviewed
further with discussion with the Police Union, a request for any plan design or pricing changes anticipated, and a
closer look at coverage for Town retirees. It is also recommended that the Town review MIIA rates relative to GIC
and try to achieve rate equivalency going into FY 09. No action was asked or taken by the Finance Committee at
this time. Linda’s presentation will be posted on the town’s website under the Personnel Board link.
3. VLR Financial Projection Update and FinCom Recommendation: Frank Remley presented a six-year projection
of revenues and expenses as a result of the prospective Village at Little River project (Attachment 1). The project is
expected to be developed in two phases, including: (1) years 1-3, retail/commercial, 68 rental apartments, and 30
age-restricted condominiums; and (2) years 4-5, 52 individual town houses and “manor house” condominiums. Six
scenarios were assessed ranging from “best case”, or full build-out and business ramp-up as planned; and “worst
case” including 50% more school age children than predicted, no phase 2 town houses constructed, or drastically
delayed, and a 20% slower than expected commercial/retail growth. In all cases, and in all future years the
development appears to generate positive net cash flow. Part of this is due to sizeable front-end subsidies from the
state, and guaranteed by the developer of $279,000, and building permit fees estimated at $446,000. Under the
best-case scenario, the mix-use development will generate approximated $575,000 in annual real estate and
| 
