Town of Newbury
Finance Committee Meeting
Tuesday OCT 18, 2011 7:00 am, Town Hall
Meeting Summary
Committee (alphabetical): Gene Case (Vice Chair), Bob Connors, Larry Guay, Erica Jacobsen,
Frank Remley (Chair), Anna Tenaglia
Ex-Officio: Tracy Blais, Town Administrator/Finance Director
1. Sep 20 Meeting Summary: Approved with minor clarifications (in red, attached)
2. Sep YTD Revenue and Expense Summaries (Town Administrator):
• Revenues: revenues are $161,016 behind Sep 30 results of 2011. This is
primarily due to slower RE tax collections. However, the third quarter tax
bills were not issued until October. Typically slow state payments, and
lagging licenses and permits made up most of the remainder. It was
commented by Tracy Blais that North Reading transit has resisted paying
excise taxes to Newbury for new buses now stored on Hanover St. Frank
Remley to contact Brian Forget about this.
• Expenditures: Departmental expenditures are at or below budget allocations
through September. $5,876,637 in OFU payments as a result of the refunding
of long term debt appeared at the bottom of “Employee Benefits”. This entry
was initially confusing as it throws off overall % budget performance.
However, Tracy explained that it was the result of the new debt obligation per
the refinancing of old debt. The previous debt figure was apparently credited
to FY 11 results, and must be offset by the new principal figure in FY12. This
entry was advised by our Town Auditor. To avoid misinterpreting month to
month budget performance for FY 12, this entry will be removed for Finance
Committee purposes, although it will be kept, per the auditor’s
recommendation, on the formal monthly General Fund results.
3. Reserve Fund update: No new requests for transfer were made. The Town
Administrator alerted the Committee that the Assessor’s Office may need temporary
help due to an upcoming long term disability absence, which may require a budget
adjustment. Details not as yet available. Reserve fund was upgraded to $90,000 at the
September 27 STM.
4. Capital Planning Committee Update: The CPC has begun meeting and that Bob
Connors has assembled a straw Capital Plan framework based on a DOR model. Bob
Connors has been elected to Chair the CPC. An inventory of building and equipment
needs is underway. A draft schedule for the FY12 capital planning process is
included in the plan outline. It has been announced that, as a result of bids received
for 6 surplus properties the town will potentially receive approximately $712,000 in
property sales, all on Plum Island so far. 6 Properties received no bids. These funds,
once collected, will accrue to a surplus property account, and be available only for
capital expenditures. In addition, it was pointed out that the restructured
appropriations from the 9/27 STM will also provide:
$50,000 in building improvements;
$25,000 for Town Hall roof replacement;
$20,000 in additional Bldg. maintenance;
$37,000 for a new police SUV;
$36,142 for a new DPW pick-up truck.
5. Other:
a. Town Barn progress: Work on safety issues is nearly complete, new doors
replaced, and the building is now back in use by DPW employees and
vehicles. All work should be completed by early November.
b. Surplus Land Sale results to date: A summary appears in item 4 above. The
next round of offerings will be issued soon. There are two abutter objections
to be addressed in the next BOS meeting before sales of those properties (3
Temple Blvd and Old Point Rd properties) can move forward.
c. TRSD Questions: Several questions were raised regarding TRSD financial
status. Among them were:
With regard to the recent announced contribution of $600k from the
Institution For Savings toward a new football field, track and stands,
how much more is needed and how will it be financed?
Has there been any change in Chap 70 funding for the current fiscal
year?
What is the outcome of TRSD Union Negotiations?
What is the process for re-opening the regional agreement?
Frank Remley agreed to prepare a memo requesting a meeting between
members of the finance committee of the three towns, and the
superintendant and assistant superintendant to get updates on these
issues. (NOTE: These issues were subsequently brought up at the
ensuing budget advisory committee on Thursday, Oct 20.
6. Next Meeting: Tuesday November 15, 7:00 am, Town Hall
Town of Newbury
Finance Committee Meeting
Tuesday Sep 20, 7:00 pm, PITA Hall
Meeting Summary
Committee (alphabetical): Gene Case (Vice Chair), Bob Connors, Erica Jacobsen, Marshal
Jespersen, Frank Remley (Chair)
Ex-Officio: Tracy Blais, Town Administrator/Finance Director
7. July 12 Meeting Summary: the 7.12.11 summary was unanimously approved as is.
8. June (fy11) YTD Revenue and Expense Summaries:
• Revenues: FY 11 YTD collections ended $314,756 ahead of the projections
for the year.
• Expenditures: Due to strong departmental management, FY11 expenditures
were $98,524 below budget for the year.
9. August (fy12) YTD Revenue and Expense Summaries (Town Administrator)
• FY12 revenues: YTD revenue collections are ($198,556) below Jul-Aug
totals for FY11. However, since it is early in the fiscal year, and major tax
collections historically lag, this is not unusual but will be watched carefully.
• FY12 Expenditures: YTD General Fund expenditures are 1.07 % greater
than the schedule for August YTD. However, many large, fixed expenses,
such as insurances and debt service are paid largely in advance. Key
operating dept expenditures are trending at, or below monthly budgets.
10. Reserve Fund update: The reserve fund is at $60,000 for FY12. (This was raised to
$90,000 at the September 27 STM.)No requests for transfer have been made thus far.
11. Sep 27 STM Warrant: Tracy Blais, town administrator began by disclosing that the
DOR has certified General Fund Free Cash for FY11 at $413,317. These additional
funds, resulting primarily from $314,646 in extra revenues and an $118,000
operating surplus for FY11, will enable some additional capital investment and
improvements in the FY12 projected operating budget. Thus, the proposed warrant
articles for the Sep 27 STM will focus on additions to both capital and general fund
appropriations. In reviewing the warrant, the Finance Committee voted unanimously
to recommend the following articles:
ARTICLE 1. To see if the Town will vote to adjust certain amounts voted under Article 3
(the general budget) of the May 24, 2011 Annual Town Meeting, so that the following accounts are
now budgeted for fiscal year 2012 as follows:
Amount change
Assessors Wages $45,606 $250
Assessors Expense $49,469 ($250)
Town Clerk Wages $19,040 ($15,495)
Conservation Commission Agent Salary $59,821 $9,400
IT Services $15,000 $15,000
Public Building Expense $95,000 $5,000
Asst. to Building Commissioner -0- ($9,400)
Building Inspector Expense $6,000 $2,000
Street Lighting $45,000 $25,000
Board of Health Wages $58,159 $50
Veterans Services $21,000 $6,000
Cost of Bonding -0- ($16,351)
Long Term Debt Principal $1,838,062 $32,000
Short Term Debt Interest -0- ($10,363)
Long Term Debt Interest $265,470 ($182,439)
Medicare-Town Expense $41,416 $1,416
And add to said budget, the following new accounts and fiscal year 2012 budget amounts:
Professional and Technical Services $20,000
Public Buildings Repairs $20,000
Inspectors Vehicle Allowance $5,400;
Or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 2. To see if the Town will vote to rescind the vote under Article 12 of the Annual
Town Meeting held May 24, 2011 which authorized the establishment of an “Inspectional Services
Revolving Fund” and, instead, vote to reinsert in the fiscal year 2012 general budget the sum of
$27,000 for the Inspectional Service Fees Account for the purpose of compensating the Wiring,
Plumbing and Gas Inspectors: or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 3. To see if the Town will vote to authorize the payment of the following fiscal
year 2011 bills, said sums to be taken from the respective departments’ expense accounts:
Personnel Board
Massachusetts Municipal Association $30.00
Department of Public Works
Napa Auto Parts $21.06
Treasurer/Collector
Century Bank $93.53
Or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 4. To see if the Town will vote to transfer from Free Cash the sum of $ 5,600.00
to the Town Clerk’s Town Code Books account for the purpose of updating the Code of the Town of
Newbury; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 5. To see if the Town will vote to transfer from Free Cash the sum of $5,000.00
to pay for the costs incurred in Phase II of the Storm Water Management Program; or act in relation
thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 6. To see if the Town will vote to transfer from Free Cash the sum of $22,016.00
to pay the Firearms Licensing fees owed to the Commonwealth of Massachusetts; or act in relation
thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 7. To see if the Town will vote to transfer from Free Cash the sum of $25,000.00
to pay for the cost to replace the roof on the Town Hall; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 8. To see if the Town will vote to transfer from Free Cash the sum of $6,000.00
to update the actuarial valuation as of June 30, 2009; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 9. To see if the Town will vote to transfer from Free Cash the sum of $37,000.00
to purchase a new Police Department SUV; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 10. To see if the Town will vote to transfer from Free Cash the sum of $50,000.00
to the Town Building Improvements Account; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 11. To see if the Town will vote to transfer from Free Cash the sum of $30,000 to
the Reserve Fund; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 12. To see if the Town will vote to transfer from Free Cash the sum of $36,142.00
for a new Department of Public Works utility body truck; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 14. To see if the Town will vote to adopt the provisions of Massachusetts General
Laws, Chapter 32B, section 20, and establish an Other Post Employment Benefits (OPEB) Liability
Trust Fund; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 15. To see if the Town will vote, pursuant to Massachusetts General Laws,
Chapter 40, section 22F, to charge for each written Municipal Lien Certificate issued by the
Collector a fee of $50.00; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
ARTICLE 16. To see if the Town will vote, pursuant to Massachusetts General Laws,
Chapter 60, section 15, to charge for each written demand issued by the Collector a fee of $30.00 to
be added to and collected as part of the tax effective as of the date of this
Vote; or act in relation thereto.
FINANCE COMMITTEE RECOMMENDS
A summary of the above financial articles appears is attached.
12. Restart of Capital Planning Committee (CPC): Tracy Blais will schedule a
meeting for October to begin developing a plan and capital projection. The CPC may
be asked to spend time with the town engineer on a walk-through of key town
facilities.
13. Other:
a. Town Barn progress: work is underway to address key safety issues that
prevent current use of the Town Barn. (These issues are largely related to
safety code violations and systems repair and replacements, which will enable
temporary re-occupancy. However, some longer term structural concerns
need to be addressed as well.) Bob Connors, whose firm has contributed
much of the current remaining work, projected completion by Nov. 1. New
doors, secured by Tracy Blais through a grant are on order and to be delivered
in October. While the repairs will enable temporary re-occupancy for this
winter and the near term, they do not address longer term structure issues.
b. Savings from refinancing plan long term debt: This has been
accomplished by the Town Administrator through Bank of America and will
save tax payers approximately $185,000 in FY12. A new debt schedule will
be requested from our bond advisors, First Southwest.
c. Sharing of ConsCom agent with Newburyport: This issue has been killed
by the Teamsters Union in Newburyport.
14. Next Meeting: Tuesday October 18, 7:00 am, Town Hall
ATTACHMENT
9.27.2011 STM Warrant summary
FUNDING REQUESTS FROM FREE CASH
ARTICLE 4: Town Clerk code book update $ 5,600
ARTICLE 5: Ph II Storm Water mgmt prog $ 5,000
ARTICLE 6:Fire arms licensing fees $ 22,016
ARTICLE 7:Town Hall roof replacement $ 25,000
ARTICLE 8:OPEB actuarial evaluation update $ 6,000
ARTICLE 9:New Police SUV $ 37,000
ARTICLE 10:Establish Bldg Improvement Fund $ 50,000
ARTICLE 11:Increase in Reserve Fund $ 30,000
ARTICLE 12:New DPW truck $ 36,142
Total FC requests $ 216,758
ARTICLE 1: FY12 APPROPRIATION
CHANGES CHANGE
Assessors wages $ 250
Assessors expense $ (250)
Town Clerk wages $ (15,495)
ConsCom agent salary $ 9,400
IT services $ 15,000
Pub Bldg Expense $ 5,000
Asst. Bldg Commissioner $ (9,400)
Bldg Insp expense $ 2,000
Street Lighting $ 25,000
BOH wages $ 50
Veterans Services $ 6,000
Cost of bonding $ (16,351)
Long Term Debt Principal $ 32,000
Short term Debt Interest $ (10,363)
Long Term Debt Interest* $ (182,439)
Medicare Town Expense $ 1,416
Professional/technical Services $ 20,000
Public Building Repairs $ 20,000
Inspectors Vehicle Allowance $ 5,400
Net change $ (92,782)
Net change without changes to excluded debt $ 89,657
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