Town of Newbury
Finance Committee Meeting
Tuesday Dec 20, 2011 7:00 pm, Town Hall
Meeting Summary
Committee (alphabetical): Gene Case (Vice Chair), Bob Connors, Larry Guay, Marshal Jespersen,
Frank Remley (Chair), Anna Tenaglia
Ex-Officio: Tracy Blais, Town Administrator/Finance Director
1. Nov 15 Meeting Summary: Unanimously approved without change.
2. Nov YTD Revenue and Expense Summaries:
• Revenues: tracking well overall. Motor Vehicle excise tax collections are
slightly behind FY11 YTD, but should pick up with the issuance of FY12 tax
bills in February. Licenses and permits are slightly low, as are interest and
penalties, but also expected to improve in the new calendar year.
• Expenses: Overall General Fund expenditures are also tracking well, at
38.80% expended vs. 41.64% of benchmark. All departments are at, or
below benchmark expenditures thus far
3. Reserve Fund update (Town Administrator):
• Transfer of $6000 from the reserve fund to Veterans Affairs requested by the
Town Administrator was unanimously approved;
• The Committee unanimously approved transfer of $15,000 from the reserve
fund to a new line item for a part time Capital Projects manager to review,
plan and oversee capital projects such as for building repairs or new capital
projects. It was decided that the criteria, recruitment and compensation for
such a person should be referred to the Personnel Board and the Town
Administrator.
• The Town Administrator requested approval of an increase in the Recreation
Committee budget from $25,000 to $58,750, a $33,750 increase. The
additional funds would be drawn from available funds in the Parks and
Recreation revolving account. [Town Counsel had advised in writing that the
process for such an increase in a revolving fund annual appropriation was for
the Finance Committee to first approve and then the Board of Selectmen.
This process is defined under MGL 44-53E1/2 pertaining to budget increases
for revolving fund operations.] The additional $33,750 is to cover $25,000 in
previously authorized building materials by the BOS for construction of a
Field maintenance enclosure; and $8,750 in contracted mowing expense
projected for the spring as a result of the discontinuance of DPW, tax payer
funded mowing. After considerable discussion and clarification of this
request, the Committee was satisfied that it: 1. complied with existing policy
and law; 2. entailed building materials that were properly authorized and
procured; 3. were needed to enclose the exposed foundation; and 4. had
already been delivered and used to weatherproof the building. The
additional mowing costs were projected using previous monthly mowing
costs. Thus the Committee voted to approve the increase by a vote of 5 for,
and 1 against.
4. Update from Chief Reilly on financial status of Police Dept.: At the Committee’s
request, Chief Reilly and Lt. Lucy attended and summarized the challenges faced in
the FY12 police budget thus far. Chief Reilly said that, based on current costs, and
projected spending, that the Police Dept could end up with a $55,000 deficit unless
monthly expenditures were immediately reduced. As a result, he has had to reduce
part time staff, and one full time dispatcher. He would like to retain trained, full time
officers as much as possible. While he wanted to wait until after the first of the year,
he was compelled to make these changes at the end of November. The result is that
he is juggling duty officers on the dispatch desk, or utilizing remaining reserves to
fill in when possible. His concern is that frequency of patrols are sometimes reduced
and/or cut down to one officer on some occasions. He has also switched from a 4
day on, 2 day off schedule to 5/2. While this change helps to balance current staff
utilization utilization, it has disrupted personal schedules. Sick time has increased.
5. Capital Planning Committee update: open questions on CPM Policies: Bob
Connors summarized the current progress of the CPC in preparing a draft Capital
Planning Manual. It which is now complete and distributed for review. The manual
contains policy statements to guide Capital Improvement and Debt Policies in
Newbury (see attachment 2). He requested that the Committee review these policy
statements and respond if there are any concerns or questions.
6. TRSD Regional Agreement: Frank Remley summarized (from the December TRSD
budget advisory meeting) that TRSD is awaiting input from the towns regarding
recommended changes to the Triton Regional Agreement. The preliminary list of
possible issues to be addressed appears in attachment 1. He and Gene Case also
informed the Committee that the FY13 budget assessments to each town would be
based solely on Oct. 1 DESE enrollment per town. The method of determining
enrollment is not addressed in the current agreement, which allows this change. This
departs from the TRSD prior practice employing its own enrollment for the “Above
Minimum” contribution” (which differs from the DESE figure) and the DESE count
for minimum contribution. Per state law, both counts are as of Oct.1 in current year
for next years assessments.
7. Other:
a. Review of special revenues (non-general fund) accounts: Tracy Blais
distributed FY10, FY11, and FY12 YTD revenue and expense summaries for
the following Revolving Fund accounts f or further review:
• Parks and recreation
• Recycling Bin
• Byfield Community Center
• Waterways Improvement Fund (Revenues Only
• Harbormaster (Expenses only)
b. Issues involving Larkin Mill dam and bldg removal: Frank Remley
summarized the recent vote by the BOS not to remove the Larkin Mill dam or
building at this time. The decision was apparently based on the
recommendation of the Byfield Water Co., and both fire departments not to.
This is contrary to the detailed ConsCom recommendation, engineering study
conclusions, and their worsening states of repair. He cited the on-going
potential risks to the Town as a result of continued inaction.
c. Future meeting times and venue: There seems to be difficulty in utilizing
either of the two Newbury Fire Halls, but there was no resolution regarding
alternate meeting times, dates or locations.
d. Finance Committee open seat: Frank Wetenkamp was introduced and
unanimously recommended for appointment by the Board of Selectmen at its
next meeting.
8. In closing, the Committee expressed its sincere thanks to Anna Tenaglia for her years
of service, and welcomed Frank Wetenkamp who was in attendance and will be
nominated to fill the vacant seat on the Committee at the next BOS meeting.
9. Next Meeting: Tuesday January17, 7:00 pm, Location TBD
ATTACHMENT 1
Potential Issues for revising the Triton Regional Agreement
• Sharing of Newbury’s hosting costs.
• Sharing of school resource officer(s) cost.
• Definition of town responsibility for Capital Maintenance of Elementary Schools.
• Equalization of elementary school costs.
• 2/3 vs. 3/3 for town approvals?
• TRSC election in towns only (would require TRSC voter proportionality)?
• Imbalance of Choice-in students?
• Specify Oct 1 DESE enrollment for both min. and above min. assessments.
• Use of five year average enrollment (now current Oct 1 only)?
• Redefine budget deadline to April 1 (from current March 15)?
• Define performance reporting?
Attachment 2
EXHIBIT II
CAPITAL IMPROVEMENT BUDGET POLICIES
Town of Newbury
• The town will make all capital improvements in accordance with an adopted
capital improvement program.
• The town will develop a multi-year plan for capital improvements and update it
annually.
• The town will enact an annual capital budget based on the multi-year Capital
Improvement Plan. Future capital expenditures necessitated by changes in
population, changes in real estate development or changes in economic base will be
calculated and included in capital budget projections.
• The town will coordinate development of the capital improvement budget with
development of the operating budget. Future operating costs associated with new
capital improvement will be projected and included in operating budget forecasts.
• The town will use intergovernmental assistance to finance only those capital
improvements that are consistent with the capital improvement plan and priorities,
and whose operating and maintenance costs have been included in operating budget
forecasts.
• The town will maintain all its assets at a level adequate to protect the town's
capital investment and to minimize future maintenance and replacement costs.
• The town, as part of its capital planning process, will project its equipment
replacement and maintenance needs for the next several years and will update this
projection each year. From this projection, a maintenance and replacement schedule
will be developed and followed.
• The town will identify the estimated costs and potential funding sources for each
capital project proposal before it is submitted to Town Meeting for approval.
• The town will determine the least costly financing method for all new projects.
Source: “Handbook 4, Financial Performance Goals”, Evaluating Local Government
Financial Condition, International City Management Association.
EXHIBIT III
DEBT POLICIES
Town of Newbury
• The town will confine long-term borrowing to capital improvements or projects
that cannot be financed from current revenues.
• When the town finances capital projects by issuing bonds; it will pay back the
bonds within a period not to exceed the expected useful life of the project.
• On all debt-financed projects, the town will make a down payment of at least 10
percent of the total project cost from current revenues.
• Total debt service for general obligation debt will not exceed 10 percent of total
annual locally generated operating revenue.
• Total general-obligation debt will not exceed that provided in the state statues.
• Where possible, the town will use special assessment, revenues or other self
supporting bonds, instead of general obligation bonds.
• The town will not use long-term debt for current operations.
• The town will retire bond anticipation debt within six months after completion of
the project.
• The town will maintain good communications with bond rating agencies about its
financial condition. The town will follow a policy of full disclosure on every
financial report and bond prospectus.
Source: “Handbook 4, Financial Performance Goals”, Evaluating Local Government
Financial Condition, International City Management Association.
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