Town of Newbury
Finance Committee Meeting
Tuesday, Oct 5, 2010, 9:30 am Byfield Fire Hall
Meeting Summary
In Attendance: Gene Case, Bob Connors, Larry Guay, Dick Passeri, Frank Remley (Chair)
Ex-Officio: Chuck Kostro, Town Administrator/Finance Director
1. Sept 21 Meeting Summary: Unanimously approved with minor edits
2. Article 8 proposed cuts: original vs. current alternative: The previous committee vote
on article 8 was rescinded (unanimous vote). Note: since two members could not attend
the 9.21 meeting, and with new information, the purpose of this meeting was to review
the prior committee vote regarding proposed cuts to the FY 11 budget, especially with
regard to proposed cuts in Article 8.
Of note was a presentation given by Jennifer Brown, Town Librarian who, at the Finance
Committee’s request, discussed the impact of a potential $35,000 cut in Library services.
A handout provided by Jennifer appears in attachment 1.
After considerable discussion, including public input, background information and
options presented by the Finance Director, the committee voted unanimously to make the
following recommended changes to article 8.
Article 8: Committee recommended a change in the article to propose the following:
Reduce Health insurance expense for FY 11 by $50,000 to $532,732.95)
Reduce IT services expense for FY 11 by $15,000 for to 0
Reduce Police Wages expense for FY 11 by $5,125 to $1,109,300.40;
Reduce Consulting Engineer Expense for FY 11 by $5,000 to $10,000;
Reduce Essex County Retirement System expense for FY 11 by $5006.56 to
$388,655.22.
Reduce Plum Island Beach Management for FY 11 by $5,000 to 0
Total Budget reductions are $85,131.56
NOTE: it was discussed that the agreement with North Reading Transportation would
likely increase the current projection of the Town’s Motor Vehicle Excise Tax revenues
enough to satisfy our Recap estimate for a balanced budget. It was also discussed and
concluded to retain the current article 9 to transfer $105,000 from the stabilization fund
as a contingency to ensure balancing the FY 11 budget, and to gain DOR approval of the
Recap to be submitted later this year. This would be cast as a place holder for now.
No other changes to the current warrant articles were recommended.
3. Use of Stabilization Fund: It was generally agreed that use of the stabilization fund for
town expenses, although allowed under DOR guidelines, was not good practice. This
fund is for emergencies or other unforeseen expenses or capital needs and is already
diminished below advisable levels.
4. Other option: all agreed that the continuing problem of Newbury’s revenue deficit
needed to be addressed. The need to push forward for a general override in the spring
was encouraged. Discussion centered on the possibility of converting savings in
Newbury’s debt service burden to the General Fund as a means of mitigating the overall
impact on the tax levy.
5. Steps/leadership process needed to ensure financial stability going forward: a
concerted and coordinated effort is needed by all concerned to inform tax payers of the
urgency of the financial situation, options, and to elicit their views on the character and
desired service levels of Town Government.
6. Next Meeting: Tuesday, October 19, 7:00 pm, Byfield Fire Hall
Attachment 1: Newbury Town Library Budget
FY03 to present
October 5, 2010 Finance Committee Meeting
Over the past five years:
· Library expenses have been reduced by 30%
· Salaries have been reduced by 5%
· The overall budget has been reduced by 13%
The Library has utilized 57% of its State Aid funds since July '07. These funds have been used to
maintain material expenditure levels, cover building maintenance costs and other expenditures. It is
anticipated that the Library will need to use 50% of its remaining State Aid Balance ($25,000) to
maintain material expenditure levels in FY11. The Library will see reduced State Aid award levels in
the coming years because of reductions at the state level. It is anticipated that the balance of the
Library's State Aid funds will not cover the short falls in library expenditures in FY12.
Since FY04 the Library has requested a waiver of the MAR (Municipal Appropriation Requirement)
from the Massachusetts Board of Library Commissioners (this is the Library's 7th year.)
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