Town of Newbury
Finance Committee Meeting
Tuesday, September 21, 2010, 7:00 pm, Town Hall
Meeting Summary
In Attendance: Gene Case, Bob Connors, Frank Remley (Chair), Anna Tenaglia
Ex-Officio: Chuck Kostro, Town Administrator/Finance Director
1. July 13 Meeting Summary: approved unanimously
2. June FY 10 End-of-year financial summary and impact on FY 11: Chuck reported
that there does not appear to be a revenue deficit in FY10. However, three grant funds
are in deficit as of June 30, 2010. All three deficits are covered by reimbursement
requests submitted prior to June 30, 2010. However, we are still waiting on some
documents from DCR concerning the sandbag project. Chuck has placed a article on the
warrant to cover the DCR fund deficit of $52,041. This article will likely not be
necessary but it is being kept on just in case. Chuck also reported that we will likely
have a free cash deficit for FY10 that will need to be made up in FY11..
3. August FY 11 YTD revenue and expenditure summaries:
a. Revenues— The current revenue estimate for FY 11 indicates a potential
shortfall of $95,083. Chuck estimates that it may actually be as much as $115,000
once state aid and other revenues, such as auto excise collections, are actually
realized. As a result, he has proposed a $115,000 adjustment in the town budget
for FY 11 to be requested at the 10/26 special town meeting.
b. Expenditures—After two months in FY 11, expenditures are within budget.
4. Reserve fund update, transfers, and interdepartmental transfers: there were no
requests for reserve fund or interdepartmental transfers.
5. Fall STM warrant: All articles were reviewed as follows:
Article 1: transfer of $80,000 from the betterment fund for beach replenishment—no
action by committee
Article 2: funding of potential deficit from FY 10 of $52,041 is a place holder that may
disappear of no deficit is determined—no action needed.
Article 3: establishment of a revolving fund under the Byfield Building Management
Committee per GL chapter 44 to maintain town owned buildings in Byfield, and
authorization to spend $20,000 in FY 11 was unanimously recommended.
Articles 4 and 5: Zoning articles TBA—no action needed.
Article 6: involves a change in by-laws involving Board quorum—no action needed.
Article 7: transfer of $3,140 from Essex Regional Retirement System line item to Town
Clerk Wages was unanimously recommended.
Article 8: Committee recommended a change in the article to propose $105,000 in
transfers from the stabilization fund in lieu of FY 11 budget reductions as follows:
reserve fund ($35,000);
IT Services ($15,000);
Plum Island Beach Management ($5,000)
Library Wages ($35,000); and
Health Insurance ($15,000).
Other proposed reductions were recommended including; Police Wages ($5,125);
Consulting Engineer Expense ($5,000); Essex County Retirement System
($5006.56).
Article 9: transfer from the Overlay Surplus of 7575.36 to pay prior year bills has
already been approved by the BOS—no action needed.
Article 10: transfer of $2,500 from the Overlay Surplus Fund of $2,500 to the Town Hall
Boiler repair Fund was unanimously recommended.
Article 11: transfer of $50,625 from the Overlay Surplus to pay certain prior year bills
was previously approved, no action needed.
6. Other:
9pt;color:#000000;">Make the Barn safe for continued operation temporarily: $600,000
o Make the barn safe and compliant with State regulations: $959,000
o Make the barn safe, compliant and functional: $1,400,000.
o Build a new highway barn: $2,300,000.
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