Town of Newbury
Finance Committee Meeting
Wednesday June 18, 2008— 7:00 pm, Town Hall
Meeting Summary
Committee Present: Eugene Case, Larry Guay, Pete Morse, Dave Newbert, Frank Remley (Chair)
1. May 14, 2008 meeting summary (Posted on Web-site): Unanimously Approved
without further discussion or changes
2. Commercial/industrial tax assessment process: Bud Kelley and representatives of
Patriot Properties attended to discuss how commercial property assessments are
conducted. In summary, they are largely based on comparative rates for similar
properties in the area. However, a backup method is called the “cap rate” whereby the
net-operating-earnings may be assessed divided by what is called a capitalization
rate, for example about 7.5%.
3. Report on YTD Revenues and Expenditures: (Finance Director, in abstentia)
(NB Monthly revenue, expenditure and fund balance reports are now available on-line at
a. Revenues are tracking somewhat better than expected in certain areas, and
are expected to be close or on target for FY 08.
b. Overall expenditures, as of May 31, were 92.08% of the total budget for the
year. While they should be at 91.67% or less, certain prepaid insurance and
debt service will help in bringing them in at or under budget for the year.
4. Year end transfers: (Finance Director, in abstentia)
The committee unanimously approved $20,650 in year end account transfers as
follows:
FROM: TO:
From Acct. No. Name Amount To Acct. No. Name
100 145 514 000 Treasurer-Collector Wages $ 1,000.00 100 135 5114 000 Finance Dept. Expense
100 161 5300 000 town Code Books $ 3,000.00 100 135 5114 000 Finance Dept. Expense
100 171 5420 000 Cons Comm Expense $ 750.00 100 171 5114 000 Cons Comm Wages
100 162 5300 000 Elections $ 3,000.00 100 222 5114 000 Newbury Call Fire - Wages
100 141 5320 000 Assessor's Expense $ 1,000.00 101 222 5114 000 Newbury Call Fire - Wages
100 222 5112 000 Newbury Fire Protect - Wages $ 3,400.00 102 222 5114 000 Newbury Call Fire - Wages
100 241 516 000 Bldg Inspector - Expenses $ 5,000.00 103 222 5114 000 Newbury Call Fire - Wages
100 245 5300 000 Electrical Inspect. - Fees $ 1,000.00 104 222 5114 000 Newbury Call Fire - Wages
100 292 5380 000 Animal Control Expense $ 1,000.00 105 222 5114 000 Newbury Call Fire - Wages
100 291 5420 000 Civil Defense $ 1,500.00 106 222 5114 000 Newbury Call Fire - Wages
Total $ 20,650.00
5. Reserve Fund Update and Requested Transfers (Attachment 1): (Finance
Director, in abstentia)
The Committee unanimously approved transfer of $46,333.40 from the reserve account (100-132-
5780-000) to the following accounts:
a. $8,421.59 to Short Term Debt Interest (Acct. No. 100 751 5925 000)
b. $30.00 to Personnel Board (Acct. No. 100 152 5300 000)
c. $977.50 to Hydrant Service (100 299 5230 000)
d. $2,705.00 to Lower Green School House Repairs (291 000 3590 000)
e. $29,999.31 to Snow Removal Expense (Acct. No. 100 423 5290 000)
f. $1,200.00 to Fire Protection No. 2, Wages (Acct. No. 100 222 5112 000
g. $3,000.00 to Library Expense (Acct. No. 100 610 5420 000
6. Other Business: Pete Morse asked if there was a detailed accounting summary for
PI W&S payments (e.g. in arrears, who has paid, who hasn’t, and whether or not there
was a surplus and if the accounting could verify that). Those present felt there was
this detail, but since Chuck was not present, Pete indicated that he would draft some
questions prior to our next meeting.
7. Next Meeting: Monday July 14, 2008
ATTACHMENT 1: RESERVE FUND SUMMAR
ITEM AMOUNT
Reserve Fund Budget $ 135,000.00
Salary Adjustments $ (11,385.82)
Town Hall ADA Compliance $ ( 7,500.00)
Building Department IT $ (895.00)
Cost of Bonding $ ( 1,945.78)
Finance Department $ (11,010.00)
Police Detail $ (11,602.50)
Legal Expense $ (13,000.00)
Public Building Maintenance $ (10,000.00)
Legal Expense $ (12,000.00)
Insurance Expense $ (96.28)
Cost of Bonding $ ( 1,000.00)
Veteran's Expense $ ( 3,687.00)
$ 50,877.62
Short-Term Debt Interest $ ( 8,421.59)
Balance necessary for interest on $554,000 Bond
Aniticipation Note (BAN) for borrowing
approved at 5/22/2007 ATM.
BAN will be rolled over until 7/2/2008 then
combined with $286,000 BAN which will be
rolled to July 2009 (FY10).
Personnel Board $ (30.00)
Pay for Don Bade attendence at MMPA
Conference.
Hydrant Service $ (977.50)
Payment of bill to Newburyport in excess of
appropriation.
Lower Green School House $ ( 2,705.00)
Grant fund in deficit as project not completed
timely.
Snow and Ice Deficit $ (29,999.31) Balance of Snow and Ice Deficit.
Fire Protection #2 Wages $ ( 1,200.00)
Additional wages to cover unanticipated vacation
schedule in June.
Library Expense $ ( 3,000.00)
Cover excess expense due to Kyle Cohen
unemployment payments.
Balance Remaining $ 4,544.22
Transfers Completed
Potential Transfers Required
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