Town of Newbury
Finance Committee Meeting
Thursday Feb. 17, 2011 8:00 am, Town Hall
Meeting Agenda
Committee: Bob Connors, Larry Guay, Dick Passeri, Frank Remley (Chair)
Ex-Officio: Chuck Kostro, Town Administrator/Finance Director
1. January 25, Meeting Summary: unanimously adopted as is
2. January YTD revenue and expenditure summaries: (Finance Director
a. Revenues: Real Estate tax payments are trending well as a result of January
billing. Motor vehicle excise taxes are running $50,000 ahead of this time last
year, which is a good sign that the economy may be recovering. License and
permit revenue is also $56,000 ahead of last year, mostly due to a spike in
building permits, which is also a positive trend. However, interest and penalty
revenues are down by nearly $30,000 partly due to declining back tax
collections as most have now been paid off. Overall, revenues are trending
well so far, almost $1.5 million ahead of FY10 at this time.
b. Expenditures: The Finance Director identified two budget shortfalls for
street lighting, and Medicare requiring reserve fund transfers cited below.
There is a potential shortfall in the health insurance budget of $35,000, and an
anticipated overrun in the snow and ice budget. All of these expenditures
should be watched closely, and may well have to be addressed with
stabilization fund transfers in the May town meeting. There are no other
significant spending concerns to date. However, due to the town
administrator’s departure in March, there will be an approximate $25,000
savings in his salary line item, and an approximate $20,000 savings in
Highway Labor due to a retirement. These transfers can both be reconciled in
the May-June time period.
3. Reserve fund update: two new transfers were requested by the Finance Director
and unanimously approved. They include:
a. An $11,000 transfer to cover excess street lighting costs due to a delay in
National Grid implementation of plan to shut off 20% of street lights as
agreed, and an increase in rates. The company agreed to an adjustment to
cover part of delay.
b. $11,500 transfer to cover and increase in the budgeted amount to cover
employer match for Medicare payments.
4. Updates to FY 12 Budget Proposal: No new changes. However, the Finance
Director has discussed a possible transfer of $52,000 from PI W&S Fund interest
savings to possibly pay down an estimated $130,000 Free Cash deficit for FY 10
which must be covered in the FY 12 budget. This would reduce this obligation going
in to FY 12 to about $80,000 if it proves feasible.
5. Other:
• Financial Planning Task Force update: After some discussion about the
current status and feedback, it was decided to hold a special Finance
Committee meeting on Mar. 1 to determine its recommendation to the Task
Force in its meeting on Mar. 3.
• Debt restructuring update (from First Southwest): this is still under review
by FSW, but rising interest rates may reduce the amount of prospective
savings. This will be revisited by Diane Doyle, treasurer in March.
• Finance Committee Vice-Chair: Congratulations are in order to Gene Case
as he was unanimously voted to be the Finance Committee Vice Chairman.
Next Meeting: Tuesday, March 1, 7:00 pm, Byfield Fire Hall
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