Town of Newbury
Finance Committee Meeting
Tuesday October 21, 2008— 7:00 pm, Town Hall
Meeting Summary
Committee: Eugene Case, Bill Cooper, Larry Guay, Pete Morse, Dave Newbert, Frank
Remley (Chair)
Ex-Officio: Chuck Kostro, Finance Director
1. Sept. 17, 2008 meeting summary: The 9/17 minutes were unanimously approved
without further discussion or revision.
2. Plum Island Emergency Stabilization Contract Update: Chuck Kostro briefed
the Committee on the successful, 10-day procurement cycle to obtain emergency
services to fortify the Plum Island Beach at center island with tubular sand bags.
About 500 feet of beach will be reinforced. $200,000 of funds that were previously
granted to Newbury by the State for a beach enclosure was approved for use in
accomplishing this. All state procurement regulations were observed, and there
was extraordinary teamwork within the Town, and with the State in accomplishing
this in record time.
3. TRSD report on solar contract: At Larry Guay’s request, Frank Chiaravalloti and
Dina Sullivan attended the meeting primarily to address questions involving the
publicized solar panel procurement for the High School and Middle School. Larry
Guay had attended recent meetings of the SC on this subject, and had examined
the proposed contract. He raised some important questions. However, Dina and
Frank informed the committee that the TRSD administration and School
Committee had decided the night before to scrub the sole-source procurement with
the contractor, EyeOn of Colorado, and go through a normal bidding process.
There were too many unanswered questions about the contract document to go
forward. Dina and Frank also expressed an interest in meeting monthly if needed
with the FinCom to ensure sound communications on budgetary and other TRSD
fiscal matters affecting the member towns. The FinCom unanimously endorsed this
idea. At least one member of the Newbury contingent on the TRSD School
Committee will attend the November 18 FinCom meeting.
4. Harbor Master update: Brendan Stokes, the Newbury Harbor Master asked to
brief the Committee on progress since he took over in 2007. He also wanted to
explain the reason for requesting purchase of a new patrol boat. The existing boat
was purchased in 1995, the engine in 1999, and is having increasing maintenance
problems, primarily with the engine. The Harbor Master operates with a revolving
fund, financed by permits and fees that have been growing steadily since Brendan
took over. Because it is self-funded, the FinCom felt that the $12,500 for replacing
the aged patrol boat with a newer, safer one was a reasonable request. (NB in the
two years that Brendan has served as Harbor Master, the number of permits have
increased by almost double, and fees have nearly tripled. Boat excise taxes are
also being tracked more carefully than in the past). The purchase of the new patrol
boat will be fully funded out of the Harbor Master revolving fund. The old boat will
be kept for light duty primarily around the ramp and mooring area on the Parker
River, while the new boat will be used for emergency services, and wider area
coverage as needed.
5. Budget summary: (Finance Director)
a. FY09 YTD Revenue Summary (Attachment 1): Chuck presented an
update of revenue collections which, given the poor economy, are tracking
surprisingly well so far. However, he cautioned that, because of the recession,
future receipts are not assured. Auto excise tax collections are already starting
to lag as new car sales are dropping quickly. Also, while the state has not yet
cut local payments, there is no guarantee that the governor will not cut aid to
cities and towns in the future. However, he also pointed out that our FY 09
revenue projections were very conservative and that Town Meeting did cut the
budget by approximately $300,000. However, he has begun to prepare a
contingency plan involving about $75,000 in further cuts if needed. There are
no significant expense issues at this juncture.
b. FY09 YTD Expenditure Summary (Attachment 2): Overall,
expenditures are tracking fairly close to budget through September. Some
highlighted items bear watching, and the Tree Warden expense item is nearly
depleted for the year. Chuck has earmarked a number of potential expense
items that may impact the reserve fund.
c. FY09 Reserve Fund Tracking (Attachment 3): The Veteran Services
agent, Kevin Hunt, had requested a transfer of $12,000 to the Veteran’s
Services account in order to cover unforeseen increases in the number of cases
involving veteran family benefits. The Committee voted unanimously to approve
a transfer of $12,000 from the Reserve Fund to the Veterans Services Account.
d. FY10 Budget Planning: The FY10 budget process will begin soon.
Chuck has reinstated the monthly department head meetings as a vehicle for
communication on the budget process.
6. STM Warrant Articles Recommendations: Chuck Kostro explained several
proposed warrant articles involving financial issues for Committee review and to
decide if it recommends them:
a. Article 3: to approve the sale of Woodbridge School—Committee took no
action as this was approved in the Spring Town Meeting
b. Article 5: to enter a 99-year lease with the Governor’s academy for
designated property along Rt. 1 for $1 per year for the purpose of building a
police station. Committee voted to recommend this warrant.
c. Article 8: to transfer $15,000 from the Planning Board (excess funding
since a new director has not yet been hired), $7000 of which would go to Town
Hall maintenance, and $8000 to the Planning Board expense account to pay for
consultants. Originally the $7000 for Town Hall maintenance was earmarked for
a new trailer to expand office space, but recently Chuck found that the cost
would be considerably more than anticipated. Other funding avenues are now
being sought. Thus the Committee voted to amend the warrant to transfer
$7000 to the reserve fund, and $8000 to Planning Board Maintenance. Subject
to this amendment, the committee recommends this warrant as amended.
d. Article 10: to spend $12,500 for purchase of a new Patrol Boat for the
Harbor Master operation (see item 4 above). Committee recommends this
warrant as is.
e. Article 11: to transfer $3,849,96 from the Animal Control Expense line
item to the Animal Control Officer Salary line item, to pay for the Animal Control
Officer’s salary, subject to approval of the Personnel Board. The Committee
wants to amend this article to transfer the sum to the Reserve Account first, so
that all financial issues can be properly addressed subject to the PB approval.
Committee recommends subject to the amendment.
7. Update on delinquent property taxes: (Finance Director) Chuck said that nine
new properties have been filed for tax title. Another property owner has requested
to pay $15,000 as a partial. Another letter will go out soon to those still in arrears.
Several are paying down their tax debt, including Circle Finishing.
8. Update from Capital Planning Committee: Dave Newbert stated that little
progress is being made on the Capital plan. He is having trouble getting key
people to respond. With a down economy it was suggested that maybe it is not a
good time to plan for capital spending when there is very little money to spend.
However, a longer-term projection is still needed. It was then suggested that
capital projections should be a mandatory requirement of the FY 10 budget
process, with the sanction being no additional funding unless capital, and capital
maintenance needs are addressed. It was also recommended that providing timely
capital projections should be part of each department head’s job description.
9. Next Meeting: Tuesday, Nov. 18 (Tentative)
ATTACHMENT 1
FY 09 YTD REVENUE SUMMARY
TOWN OF NEWBURY
FISCAL YEAR 2009
REVENUE SUMMARY
As of September 30, 2008
Compared to the same period in the last fiscal year
Revenue Source FY08 FY09 Difference
Personal Property 33,969 - (33,969)
Real Estate 2,873,627 - (2,873,627)
Prior Year Real Estate 203,605 - (203,605)
Motor Vehicle Excise 96,807 - (96,807)
Boat Excise 259 - (259)
Interest & Penalties 65,889 - (65,889)
Fees 16,511 - (16,511)
Licenses & Permits 66,670 - (66,670)
State Aid 141,346 - (141,346)
Fines & Forfeits 30,856 - (30,856)
Investments 22,412 - (22,412)
Misc Recurring 377 - (377)
Misc Non-Recurring 4,170 - (4,170)
Special Assessments - - -
Other - - -
Total 3,556,498 - (3,556,498)
ATTACHMENT 2
FY 09 YTD EXPENSE SUMMARY
Benchmark
Expended: 25.00%
Reserve Other FY 2009 Expenditure
FY 2009 Fund Adjustment/ Adjusted through Remaining %
Account Name Budget Transfers Transfers Budget 09/30/08 Budget Expended
TRANSFER FROM GENERAL FUND 0 0 0 0
TOWN MTG MODERATOR 100 100 0 100 0.00%
SELECTMEN SALARY 15,000 15,000 3,750 11,250 25.00%
SELECTMEN SECRETARY SALARY 44,950 44,950 10,887 34,063 24.22%
SELECTMEN EXPENSE 3,000 3,000 1,361 1,639 45.35%
FINANCE COMMMITEE EXPENSES 150 23 173 173 0 100.00%
RESERVE FUND 70,000 (23) 69,977 0 69,977 0.00%
FINANCE DIRECTOR SALARY 93,750 93,750 22,596 71,154 24.10%
FINANCE DEPARTMENT WAGES 22,928 22,928 5,691 17,237 24.82%
FINANCE EXPENSES 40,350 40,350 11,427 28,923 28.32%
ACCOUNTANT'S SALARY 57,250 57,250 14,101 43,149 24.63%
ACCOUNTANT'S EXPENSES 8,500 8,500 4,971 3,529 58.48%
ASSESSORS SALARY 9,890 9,890 2,472 7,418 25.00%
ASSESSOR'S WAGES 44,694 44,694 11,009 33,686 24.63%
ASSESSOR'S EXPENSE 57,400 57,400 23,083 34,317 40.21%
AUDIT TOWN BOOKS 25,000 25,000 665 24,335 2.66%
TREASURER-COLLECTOR WAGES 33,441 33,441 7,893 25,548 23.60%
ART 09-13 TRS TAX TITLE 7,500 7,500 675 6,825 9.00%
LEGAL SERVICES 75,000 75,000 9,195 65,805 12.26%
PERSONNEL BOARD 500 500 500 0.00%
TOWN CLERK SALARY 48,415 48,415 12,104 36,312 25.00%
TOWN CLERK WAGES 25,000 25,000 4,320 20,680 17.28%
TOWN CLERK STIPEND 0 0 0
TOWN CODE BOOKS 3,750 3,750 3,750 0.00%
TOWN CLERK EXPENSE 6,995 6,995 827 6,168 11.83%
ELECTION 9,600 9,600 2,298 7,302 23.94%
REGISTRARS OF VOTERS SALARIES 750 750 750 0.00%
REGISTRARS OF VOTERS EXPENSES 4,734 4,734 49 4,685 1.04%
CONSERVATION COMM AGENT SALARY 49,318 49,318 12,147 37,171 24.63%
CONSERVATION COMM WAGES 13,304 13,304 2,966 10,338 22.29%
CONSERVATION COMM EXPENSE 6,150 6,150 655 5,495 10.66%
TREE WARDEN SALARY 3,000 3,000 3,000 0.00%
TREE WARDEN EXPENSES 5,000 5,000 4,770 230 95.40%
CLAM FLATS TOWN WAGES 4,000 4,000 4,000 0.00%
PLANNING BOARD WAGES 60,184 60,184 60,184 0.00%
PLANNING BOARD EXPENSE 4,900 4,900 2,695 2,205 54.99%
MERRIMAC VALLEY PLANNING COMM 2,215 2,215 2,215 0 100.00%
ZONING BOARD OF APPEALS WAGES 900 900 225 675 25.00%
ZONING BOARD OF APPEALS EXPENSES 500 500 70 430 14.00%
PUBLIC BUILDING MAINT EXPENSE 36,000 36,000 7,193 28,807 19.98%
TOWN HALL MAINT EXPENSE 47,750 47,750 7,602 40,148 15.92%
TOWN REPORTS 1,500 1,500 1,500 0.00%
INSURANCE EXPENSE 147,000 147,000 107,720 39,280 73.28%
TOTAL GEN GOVERNMENT: 1,090,369 0 0 1,090,369 297,804 792,565 27.31%
POLICE WAGES 1,116,178 1,116,178 299,292 816,886 26.81%
EMERGENCY MANAGEMENT DIRECTOR 5,000 5,000 5,000 0 100.00%
POLICE EXPENSES 110,000 110,000 48,537 61,463 44.12%
Sub-Total Police: 1,231,178 0 0 1,231,178 352,829 878,349 28.66%
BYFIELD FIRE PROTECTION - WAGES 98,973 98,973 24,378 74,595 24.63%
BYFIELD CALL FIRE - WAGES 70,658 70,658 9,277 61,381 13.13%
BYFIELD FORREST FIRES - WAGES 2,500 2,500 2,500 0.00%
BYFIELD FIRE PROTECT - FLAT RATE EXP 74,750 74,750 18,688 56,062 25.00%
NEWBURY FIRE PROTECTION - WAGES 91,457 91,457 28,833 62,624 31.53%
NEWBURY CALL FIRE - WAGES 70,658 70,658 12,325 58,333 17.44%
NEWBURY FORREST FIRES - WAGES 2,500 2,500 2,500 0.00%
NEWBURY FIRE PROTECT - FLAT RATE EXP 74,750 74,750 18,688 56,062 25.00%
FIRE ALARM MAINTENANCE 7,000 7,000 7,000 0 100.00%
AMBULANCE SERVICE 15,000 15,000 7,500 7,500 50.00%
Sub-Total Fire: 508,246 0 0 508,246 126,687 381,559 24.93%
BUILDING INSPECTION SALARIES 57,503 57,503 14,162 43,340 24.63%
ASST BUILDING INSPECTOR 9,401 9,401 2,314 7,087 24.61%
BUILDING INSPECTOR - WAGES 6,538 6,538 1,925 4,613 29.44%
BUILDING INSPECTOR - EXPENSES 6,975 6,975 569 6,406 8.16%
ART 09-14 BLD TH ADA COMP 17,500 17,500 17,500 0.00%
GAS INSPECTOR FEES 6,000 6,000 1,112 4,888 18.53%
PLUMBING INSPECTOR FEES 10,000 10,000 1,342 8,658 13.42%
SEALER WGTS/MEASURERS SRV FEES 2,500 2,500 2,500 0.00%
ELECTRICAL FEES 11,500 11,500 2,280 9,220 19.83%
CIVIL DEFENSE 0 0
ANIMAL CONTROL OFFICER SALARY 17,365 17,365 4,277 13,088 24.63%
ANIMAL CONTROL EXPENSE 8,000 8,000 784 7,216 9.80%
PARKING CLERK - SALARY 2,400 2,400 600 1,800 25.00%
PARKING CLERK - EXPENSES 600 600 7 594 1.08%
HARBORMASTER - WAGES 43,336 43,336 15,850 27,486 36.58%
HARBORMASTER - EXPENSES 19,638 19,638 5,627 14,011 28.65%
GREEN HEAD CONTROL 3,355 3,355 2,970 385 88.52%
MOSQUITO CONTROL 0 0
HYDRANT SERVICE 11,475 11,475 0 11,475 0.00%
Sub-Total Regulatory: 171,111 0 62,973 234,084 53,819 180,265 22.99%
TOTAL PUBLIC SAFETY: 1,910,535 0 62,973 1,973,509 533,335 1,440,173 27.02%
TRITION REGIONAL OPERATION 8,209,998 8,209,998 2,052,504 6,157,494 25.00%
TRITION REGIONAL CAP IMPROVE 165,399 165,399 41,352 124,047 25.00%
WHITTIER REG'L ASSESSMENT 135,918 135,918 33,980 101,938 25.00%
TOTAL EDUCATION: 8,511,315 0 0 8,511,315 2,127,836 6,383,479 25.00%
HIGHWAY LABOR WAGES 422,500 422,500 104,450 318,051 24.72%
HIGHWAY MAINTENANCE EXPENSE 70,000 70,000 24,170 45,830 34.53%
SNOW REMOVAL - WAGES 95,000 95,000
SNOW REMOVAL - EXPENSE 0 392
94,608 0.41%
STREET LIGHTING 47,000 47,000 8,431 38,569 17.94%
VEHICLE MAINT - EXPENSE 85,000 85,000 51,124 33,876 60.15%
TOWN GARAGE MAINT - EXPENSE 20,000 20,000 5,146 14,854 25.73%
TOTAL PUBLIC WORKS: 739,500 0 0 739,500 193,713 545,788 26.20%
BOARD OF HEALTH - WAGES 57,250 57,250 13,765 43,485 24.04%
BOARD OF HEALTH - EXPENSES 223,000 223,000 41,707 181,293 18.70%
PUBLIC HEALTH SERVICES - EXPENSES 11,000 11,000 3,590 7,410 32.63%
COUNCIL ON AGING - WAGES 71,505 71,505 14,786 56,719 20.68%
COUNCIL ON AGING - EXPENSE 12,800 12,800 1,661 11,139 12.97%
VETERAN'S DIRECTOR STIPEND 2,400 2,400 600 1,800 25.00%
VETERAN'S SERVICES 14,000 14,000 9,513 4,487 67.95%
TOTAL HUMAN SERVICES: 391,955 0 0 391,955 85,622 306,333 21.84%
TOWN LIBRARY - WAGES 199,413 199,413 44,572 154,841 22.35%
TOWN LIBRARY - EXPENSES 63,000 63,000 41,568 21,432 65.98%
LIFEGUARDS - WAGES 40,000 40,000 32,570 7,430 81.43%
LIFEGUARDS - EXPENSES 5,000 5,000 2,811 2,189 56.21%
PARKS - EXPENSES 25,000 25,000 4,789 20,211 19.16%
HISTORIC COMMISSION EXPENSE 650 650 18 632 2.74%
375TH ANNIVERSARY COMMITTEE 375 375 375 0.00%
MEMORIAL DAY 600 600 600 0.00%
TOTAL CULTURE & REC: 334,038 0 0 334,038 126,328 207,711 37.82%
COST OF BONDING 19,392 17,817 37,208 12,116 25,092 32.56%
LONG TERM DEBT PRINCIPAL 1,703,404 458,404 2,161,808 335,957 1,825,852 15.54%
SHORT TERM DEBT INTEREST 15,376 2,318 17,695 5,539 12,155 31.31%
LONG TERM DEBT INTEREST 631,151 181,326 812,478 259,893 552,585 31.99%
TOTAL DEBT SERVICE: 2,369,323 0 659,865 3,029,189 613,505 2,415,684 20.25%
STATE ASSESSMENTS (CHERRY SHEET) 164,953 164,953 164,953 0.00%
TOTAL INTERGOV: 164,953 0 0 164,953 0 164,953 0.00%
ESSEX COUNTY RETIREMENT SYSTEM 327,194 327,194 320,454 6,740 97.94%
HEALTH INSURANCE 545,000 545,000 82,891
DENTAL INSURANCE 0 4,076
458,033 15.96%
EMPLOYEE LIFE INSURANCE 1,900 1,900 155 1,745 8.17%
MEDICARE -TOWN EXPENSE 63,750 63,750 16,135 47,615 25.31%
TOTAL EMPL BENEFITS: 937,844 0 0 937,844 423,712 514,132 45.18%
TOT GEN'L FUND (FUND 100) 16,449,833 0 722,839 17,172,672 4,401,854 12,770,818 25.63%
ATTACHMENT 2
RESERVE FUND TRACKING SUMMARY
Potential Transfers Required
ITEM AMOUNT
Short-Term Debt Interest ($15,000.00)
Need for RAN to meet
cash flow demands.
Medicare Deficit ($2,000.00)
Based on actual
expenses incurred in
FY08.
Street Lighting ($5,000.00)
Based on actual
expenses incurred in
FY08. Need to audit
bills.
Police Expenses ($20,000.00)
Trending to be over
budget. Potential fuel
increases.
Public Building Maintenance Expense (BCAC) ($5,000.00)
Town assumes cost of
maintaining the Yellow
School.
Tree Warden Expense ($2,500.00)
95% of line-item already expended.
Selectmen's Expense ($1,000.00)
Trending to be over budget.
Veteran's Benefits ($12,000.00)
Increased approved applications for veterans in need.
Estimated Balance Remaining $ 7,477.00
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