Town of Newbury
Finance Committee Meeting
Tuesday, June 15, 2010, 7:00 pm, Town Hall
Meeting Summary Committee (Alphabetical): Gene Case, Bob Connors, Larry Guay, Dick Passeri, Frank Remley (Chair)
Ex-Officio (Phone): Chuck Kostro, Town Administrator/Finance Director
May 18 Meeting Summary: Approved unanimously without further revision
May YTD Revenue and Expense Summary: (Finance Director)
a.
Revenues: Chuck Kostro identified three areas of concern, including:
i.
Motor vehicle excise which is currently $120,000, or 15%, behind forecast with only one month remaining. Problem seems to be slow payments but may in part be due to current short staff in the Finance Dept.
ii.
Licenses and permits which are $46,000, or 21% behind, and
iii.
Fines and forfeits which is $35,000 behind.
However, he pointed out that property tax collections are on target, and fee collections are $42,000, or 21%, above forecast for the entire year, which should help offset reversals in other areas. Overall, non-property tax revenues are only 11% behind forecast for the year-to-date.
b.
Expenditures: At 92.5% of budget, overall expenditures are on target YTD and with minor transfers, should be okay for the year. There are no major departmental concerns.
3.
Reserve fund changes/other potential transfers: (Finance Director)
The Finance Director requested two reserve fund transfers, including:
Transfer of $11,599.44 from the reserve fund to the DPW, snow and ice line item to cover excess costs for FY 10, and;
Transfer of $8000 to the Tree Warden expense for FY 10 to cover most of a previously invoice $8400 for emergency work during the April storm submitted by Peter Hollis, Tree Warder, for work performed by Steven Noye Tree Service. A clarification of the invoice for this work, and subsequent filing of Mr. Noyes insurance and license certificates satisfied the Finance Committee’s concerns from its May 18 meeting. The remaining $400 on the invoice will be covered by an interdepartmental transfer, per below.
Both requests were unanimously approved. These transfers left a balance of $250.30 in the Reserve Fund.
The Finance Director Then requested a series of interdepartmental transfers, including:
2
$332 from Plumbing Inspector Fees to Gas Inspector Fees
$400 from Insurance Expense to Tree Warden expense ;
$3000 from Insurance Expense to Conservation Commission wages;
$3,400 from Accountant’s Salary to Finance Expense;
$5000 from Assessor’s expense to the Reserve Fund;
$5000 from Treasurer-Collector Salary to the Reserve Fund;
$2,500 from Legal Services to the Reserve Fund;
$5000 from Veteran’s Services to the Reserve Fund.
These transfers were enabled by excess budget and/or staffing changes in all areas. As a result, the reserve fund will have an additional $17,500 for potential use by the end of FY 10.
4.
Other:
a.
Highway barn update: Proposals are in and the architect selected for the work, which will begin shortly, is CSS Architects of Wakefield, MA
b.
PI Land Sale of 5.4 Acres: Frank Remley relayed a suggestion by Martha Taylor that a small work group be convened to determine the steps needed to successfully conduct the process of selling this land. Some issues to be addressed include:
i.
How many lots and/or sewer connections might be allowed;
ii.
Environmental restrictions, such as preservation of the primary dune;
iii.
Public access and usage requirements, and how to ensure them;
iv.
Required legal and Procurement procedures;
v.
Advertising to ensure market exposure;
vi.
Conduct of an updated market assessment;
vii.
Budget needed to conduct the above and ensure maximum return to Town.
Potentially the work group should involve the Conservation Commission, building inspector, Finance Director, Planning Director and/or member of the Planning Board, a Selectman, member of the Finance Committee, and legal counsel as needed. Bob Connors from the Finance Committee agreed to participate as needed. All agreed that this strategy would ensure that the momentum for conversion of this property be maintained, that proper actions be undertaken, and funds made available to conduct the sale process. It was agreed that he potential gain for capital reserves could be substantial.
c.
Finance Committee review: Frank Remley asked the Finance Committee to give some thought to its role and performance in FY10 with a view toward what adjustments might be needed of FY11. Initial comments included focusing more on policy, better communications with other boards, and continuing to inform taxpayers regarding the financial condition of the Town. It was suggested that this be taken up in a future meeting.
d.
Departure of Bill Cooper: Frank regretfully informed the committee that Bill Cooper’s term had expired and that he chose not to be reappointed due to business pressures. All agreed that the Bill had made a great contribution and would be missed.
Next Meeting(s): Tuesday July 13, 6:30 pm, Town Hall
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