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Finance Committee Meeting Minutes 4-1-2014
Town of Newbury
Finance Committee Meeting
Tuesday April 1, 2014, 7:00 pm, Town Hall
Meeting Minutes (Final)

Committee (alphabetical):  Linda Allen, Gene Case (Vice Chair), Bob Connors (CPC Chair), Larry Guay, Frank Remley (Chair).

Agenda (Tentative)

  • Meeting Summary:   The 3.4.2014 meeting minutes were unanimously approved.
  • February, fy14 YTD Financial Reports: As the Town Administrator was not present due to vacation, there was limited discussion. However, there were no outstanding concerns from those in attendance, except as follows:
  • Revenues: Total collections are ahead of projections, 72% collected vs. projection of 67% through February. However, state aid is only at 34%, although should catch up, (unless rescinded which is unlikely), and motor vehicle excise is at 52% through February. However, 2014 January bills for 2014 are now starting to be remitted.
  • Expenditures: The general fund expenditures are at 69.8% through February vs. 66.3% budgeted. However, this is primarily due to advance payments for the stabilization fund, OPEB reserve account, insurances, and debt service. Of present concern is that Snow Removal expenses are 145.25% or $70,152 over budget. A Snow and Ice Account overage, however, is the one account than can be reconciled at the end of the fiscal year either through  a reserve transfer such as Free Cash.
  • Reserve Fund Update:  The requested reserve fund transfer of $30,000 to the Town Building and Maintenance account involves a health and safety issue impacting air quality at Town Hall. However, it was tabled until the Capital Planning Committee reviews it and makes its recommendation to the Finance Committee. This will take place at its next meeting on April 17 at which the building maintenance manager and the Town Administrator can be present to further explain the technical options and costs for both short and long term solutions.
  • CPC update: The CPC Chair reiterated the CPC current recommendations for capital replacements and improvements for FY 15.  
  • Other  (as needed):
  • Status of fy15 budget progress: Review of draft Warrant
  • Articles:
SPECIAL TOWN MEETING

Article 1: Payment of prior year bill of $1,581 to Northeast Mosquito Control from Free Cash
Recommendation; Approved, 5-0-0

Article 2: Transfer of $XXX.XX from Free Cash to the Snow & Ice Account to cover current year deficit (as allowed under state law)
Recommendation: On hold 5-0-0, pending questions: (1) Should an override for this sum be considered; (2) Could it be covered by EOY account sweep.

ANNUAL TOWN MEETING

APPROPRIATIONS

Article 3: Line item budget
Recommendation: On hold pending various questions and clarifications, 5-0-0:

Admin and Finance Salary and Wages,             287,663 (This previously was separated,                                                                 why now combined?)

IT services                                              24,000 (Was previously 15,000, why                                                             increased by 9000 for FY15?)

Professional and Technical Services                     90,000 (Was 60,000 for FY14, why the increase?)

Reserve Fund                                            90,000 (this is a discrepancy with                                                                      Budget Book which states 100,000 for                                                             FY 14?)

Pictometry and MIMAP                            9776 (Up from 3500 in FY14, does this                                                           include a “fly-over”?)

Insurance Expense                                       159,390 (Up 10%, has this been put out                                                          to bid?)

Shellfish Salary and wages                              40,000 (Up by 36,000 from 4000, why?                                                            If for a full time Commissioner, does                                                            this have vote of Planning Board?)

Fire Protection Wages                           205,705 (Budget book has 60,000                                                                         higher for wages, why?)

Fire Maintenance Expense                                10,000 (What for? Previous was 0.)

Fire Capital Outlay                                     0.00 (Budget Book has 52,000, why the                                                           discrepancy with warrant?)

Road Improvement Program                        80,000 (What for? Shouldn’t this                                                                        be from Chap. 90 funds? Budget book                                                              recommends 100,000?)

Council on Aging Salary and Wages               77,989 (Up 19,526, reason?)

Whittier Regional Operating Assessment          305,267 up 98,371 this is the largest                                                                   increase in recent memory due to an                                                                      almost tripling of Newbury enrollment                                                           from 7 to 19. This expenditure will                                                                     likely increase for at least several years                                                                 come and may increase further.                                                                   Should it be considered for an override                                                                 to cover such a large increase in outside                                                                assessments?

Article 4: Raise and appropriate 50,000 for Stabilization Fund
Recommendation: Approve 5-0-0
Article 5: Raise and appropriate 25,000 for OPEB.
Recommendation: Approve, 5-0-0

Article 6: Transfer 9,000 from free cash to purchase portable radar units.
Recommendation: Approve pending CPC evaluation and approval

Article 7: Appropriate $XXX,XXX.XX of Chap. 90 or any other sum for use by the DPW for street and road repairs and related expenditures.
Recommendation: Should be subject to road improvement plan. Identify priorities and amounts for what projects, from what sources?

Article 8: Transfer sum of $140,000 from the stabilization fund for the DPW to purchase a rubber tired excavator for road repair work.
Recommendation: No Recommendation pending source. Make sure Stabilization Fund has enough for this and other transfers. Should $ come from Chapter 90, or land sale fund? (CPC recommends it come from Free Cash. Should it be a lease/purchase acquisition to spread out cost over 5-10years?)

Article 9: Transfer 15,495 from the Stabilization Fund to purchase and asphalt roller.
Recommendation: No recommendation pending verification of source and advice of CPC. E.g. Should $ funding come from Chap 90,or  Land Sale Fund instead of stabilization? Should it be a lease/purchase acquisition?

Article 10: Appropriate $450,000 from the Land Sale Fund to purchase or lease a pumper truck for the Fire Dept.
Recommendation: Approved 5-0-0 (asset to be owned by the town, operated by Fire Dept.)

Article 11: Appropriate sum of 16,000 (should be 36,000) from the Stabilization Fund for fire fighter turn-out gear.
Recommendation: Approved 5-0-0 (subject to verification of funds available in stabilization)

Article 12: Transfer 7,800 from Receipts Reserved Fire Alarm Account for repairs to the fire alarm system.
Recommendation: Approved 5-0-0

Article 13: Transfer 59,410 from the Stabilization Fund for Library Repairs
Recommendation: Approved 5-0-0 (subject to verification of funds available; CPC recommended using the Land Sale Fund as the source)

Article 14: Transfer 50,000 from the Stabilization Fund to replace the non-compliant septic system at Manter Field
Recommendation: Not Approved 5-0-0 (subject to further review by CPC and verification of funding source; should it be paid for from enhanced revenues from concession?)

Article 15: Transfer 37,000 from the Stabilization Fund for repairs to the Grange Hall.
Recommendation: Not Approved 5-0-0 (Subject to review of source of funds. It would be a further drain on Stabilization; Alternative might be to transfer equivalent to the Building Maintenance account, perhaps through residual reserves or a cash sweep at the end of the year, and for Building Maintenance to procure needed improvements)

Article 16: Authorize the continuance of the Recreation Revolving Fund for purpose of continuing field maintenance up to $50,000 in FY15.
Recommendation: Approved 5-0-0

Article 17: Authorize continuance of the Municipal Waterways Improvement and Maintenance Fund to spend up to 70,000 in FY 15
Recommendation: Approved 5-0-0.

Article 18: Transfer the sum of 35,000 or any other sum from the Waterways Maintenance and Improvement fund (specifically to replace and outfit a 20-22’ center console, open bow patrol boat.)  
Recommendation: On-hold pending further CPC review

Article 19: Transfer 31,000 from free cash to fund a town-wide inventory and analysis of the condition and priority repair to Newbury’s roadways.
Recommendation: Approved 5-0-0 subject to changing the funding source to Chap 90 available funds.

Article 20: Transfer 60,000 from Free Cash to fund updates to Newbury’s Master Plan and Open Space and recreation plan.
Recommendation: On-hold pending information (e.g. what, when, how, who)


BELOW IS A SUMMARY OF THE SOURCES OF ABOVE CAPITAL PROPOSALS BY FUND


BY-LAWS AND OTHERS

Article 21; authorized the BOS to contract with the Commonwealth for construction and maintenance of public highways:
Recommendation: Will of Town Meeting (note: this is an annual article to enable state work on state and interstate roadways at the expense of the Commonwealth)

Article 23: For Newbury to accept liability for work by the Commonwealth for improvements, development, maintenance, and protection within Newbury of tidal and non-tidal rivers and streams, harbors, tidewaters, foreshores and shores along public beaches in accordance with Chapter 91. More Specifically for the BOS to issue a bond of indemnity to the Commonwealth for such work.  This is an annual request.
Recommendation: Will of Town Meeting

Article 27: to see if the Town will vote to amend the Newbury Capital Planning Committee Bylaw
                
                12-1 Appointments and terms: Reduce to 4 members including (i) town Administrator; (ii) one member of Finance Committee, annually chosen; (iii) one member of BOS; (iv) one at large voter appointed by the BOS for a term of two years.
        
                12-2 Powers and Duties: No change

                12-3 Propose Anticipated Projects: No Change except raise thresh hold from                      $10,000 to $25,000.                     

                12-4: Annual Report: No change: No change

                12-5 Expenditures on Projects: No Change

                12-6 Publishing of Reports and Budgets: No change

        Recommendation: Not recommended as is 5-0-0   [N.B.: the Finance Committee generally believes that the CPC has worked well as constructed, with FIVE members and two year appointments. However, if change is needed, it should still maintain five voting members, possibly changing the Town Administrator to a non-voting, ex-officio advisor, include one selectman in her place, one member of the Finance Committee, possibly one member of the Planning Board and Two members at large as is. The Chairman of the CPC should meet regularly with the Finance Committee as well. The premise is to ensure rigor and objectivity in programming capital priorities, maintenance of a fiduciary perspective, bringing needed experience in capital projects, and continue to remain arms length free of direct political influence. If the threshold is to be raised, it should not only include a five year time frame, but any needed O&M cost adjustments should be considered as well.]

  • TRSD Update: The FY15 Budget will increase over FY 14 by $424,714. This is about $90,000 less than the previous budget estimate due to late reductions in the overall TRSD O&M projections for FY 15. However, the unexpected reduction in assessment to Newbury of 346,832 and savings of an expected $250,000 increase in FY14 over FY13 has had beneficial effect on Newbury’s general fund in FY 14.
  • Progress on Public Safety Complex: The Fire Company No. 2 has declined to participate in this project, so the scope of it will change to focus primarily on and upgrade or replacement of the police station.
  • Special employee status: No further discussion. Deferred to the March Meeting.
  • Next Meeting (tentative): Tuesday May 6, 2014, 7:00 pm Town Hall