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Finance Committee Minutes 10-7-2014




Town of Newbury
Finance Committee Meeting
Tuesday Oct 7, 2014, 7:00 pm, Town Hall
Meeting Minutes (Final)

In Attendance:  Linda Allen, Gene Case (Vice Chair), Bob Connors, Larry Guay, Erica Jacobsen, Marshal Jespersen, Frank Remley (Chair).
Agenda

  • Meeting minutes: 9.02.14 and 9.19.14 minutes were unanimously approved without change
  • Nomination of FinCom representative to CPC: Per article 12-1 of the Newbury Bylaws,     Marshall Jespersen was unanimously voted to represent the Finance Committee on the Capital Planning Committee to replace outgoing member Bob Connors. A letter has been delivered to the Town Clerk announcing this action.
  • Election of Frank Remley, Chair, and Gene Case vice Chair of the Finance Committee: Per Article 11-1 of the Bylaws, he committee voted unanimously to approve these assignments for FY 15.
  • Review Warrants for 10.21.14 STM: The draft warrant for the Oct 21 STM was reviewed and articles voted on as follows:
Article 1: to authorize payment of a residual FY14 invoice to Steve’s Tree Service of $3,650                                                            —recommend approval 7-0-0

Article 2: to adjust certain appropriated accounts as listed in the warrant to cover unanticipated $38,070 additional expense for FY 15         —recommend approval 7-0-0
[NOTE: Gene Case volunteered to seek two clarifications but deemed to not materially affect the which included; i. the desire for more detail on the $3000 needed for Public Building. property related services for a “pump failure”; ii. whether or not the additional
$2500 remuneration for past “inspectional services” should legally be considered a past wage adjustment or reimbursement for additional out-of-pocket cost; iii. If so, should the position be salaried going forward.]

Article 3: to transfer $5700 from Free Cash to pay for a required OPEB actuarial update by the firm of Primoris in FY 14                        —recommend approval 7-0-0

Article 4: To transfer $60,000 from Free Cash to purchase and install a septic system on Manter Field                   —on hold pending BOH and CPC approval of final plans
[NOTE the CPC has already approved this project, but the BOH needs further engineering clarification on final plans more recently submitted which may include material changes.]

Article 5: To transfer $75,000 from Free Cash for engineering/construction services for design of a town Hall pump station and force main       —Hold pending CPC recommendation
[NOTE: this is to correct the failing septic field issue by connecting to the Newburyport sewer system which the Town Administrator has already obtained approval from the Newburyport Water and Sewer Commission. However, while the FinCom was inclined to recommend approval, the CPC must approve this first at its next meeting on Oct 16]

Article 6: To transfer $15,000 from Free Cash to replace stairs at the entrance to the Byfield Grange Building (safety issue):   -- Recommend Approval 0-6-1 with one recusal
[NOTE the FinCom recommended no action. It believes that this emergency/safety repair should be covered by a transfer from the reserve fund—not free cash— expediting the opportunity to seek a timelier and cost effective solution. It also requires CPC approval which has not yet been done (at its next meeting on Oct. 16), and justification why this request has doubled from the original request of  $7500.]

Article 7: to transfer $60,000 from Free Cash to fund professional services for a Master Plan and Open Space and Recreational Plan update       --Recommend Approval 7-0-0
[NOTE: It was noted that these expenditures for professional services should be described as “up to $60,000” and would be transferred to a specific account to be overseen by The Town Administrator, and that the FinCom liaison to the Planning Board (Marshall Jespersen) would track progress]

Article 8: To cease assessing excise taxes under M.G.L. Chap. 59, Section 8A on certain animals, machinery, and equipment owned by individual and non-corporate entities principally engaged in agriculture.                                                    —Recommend  “will of the Town”
[NOTE: This tax has apparently never been imposed. Further, his excise tax only applies to individuals, not to corporations and despite state law enabling it; it has never been assessed or levied. Further it was indicated that it would result in very small revenues and it would b costly to administer)

Article 9: To amend the Town’s current bylaw regarding vacation to allow carry-over of prior fiscal year unused vacation for up to, but not to exceed 90 days   —no vote taken, left to Personnel Board which has already approved it and “will of the town” at the STM
[NOTE: it was noted that the Personnel Board has already reviewed and approved this action]

Article 10: to instruct the BOS to petition the General Court to enact a law instruction the Commissioner of Fisheries Wildlife, and Recreation vehicles to convey certain marginal land in Newbury to Richard J. and Pauline Boudreau on which they have apparently been paying assessed taxes for many years—Recommend Approval 7-0-0

Article 11: to require an extended buffer and review period prior to allowing demolition of historically significant structures                                         —no vote taken, “will of the town”
[NOTE: After discussion, the Finance Committee consensus was that his article may be better served at a spring ATM when more people would likely be in attendance]
 
  • June Year End and August Financial reports/update: Town Administrator was not present to discuss—however, preliminary FY14 year end results revealed that revenues collected were above the Recap estimate by $715,097, and actual expenditures were below those budgeted for the year by $531,899.  This bodes well for year end results and continued solvency of Newbury. It also contributes to needed capital reserves. To this end, the DOR has already reported to Tracy that Free Cash total through FY 14 of approximately $1.5 million.
There no apparent concerns about the August FY 15 YTD results. Revenues are already at 23% collected through July and August, while expenditures are at 19.58%, although with numerous, early prepayments for the entire year.

  • Reserve Fund update: (T.A.): There are currently no new Reserve Fund transfer requests
  • CPC update: Larry Guay reviewed actions taken in the CPC’s most recent meeting, which have been summarized in the meeting minutes on file. His report from the CPC to the Finance Committee appears in Attachment 1.
  • Review highlights of 9.19.14 Process Improvement Session (see 9.19 summary in ATTACHMENT 2): So far, per item 2 above, Marshall Jespersen has been voted to represent the FinCom on the CPC. In addition, Gene Case has been gathering data for possible inclusion in the existing Financial Policies Manual provided by Town Administrator.  Tracy Blais has committed to providing budget and secretarial assistance for FinCom meetings.  Rick Harris’ report which enumerates result of the January 19 meeting, also appearing in minutes of that meeting, appears in Attachment 2. As time was running out, the Finance Committee decided to defer this discussion to further meeting in which process improvements would by periodically updated.
  • Old/New business, as needed:
  • Prep needed for STM, 10.21.14: Erica, Gene and Larry to collaborate on a FinCom report/presentation for STM. Bob, Gene, Frank and Eric Svahn and Chris Armstrong will meet for coffee on Saturday morning to exchange thoughts on the STM format.
  • Municipal Bldg. Committee Update (T.A. and/or Eric Svahn-tentative): Eric Svahn was not present, but per above, a meeting with Eric and the Town Moderator will be coordinated to discuss an interim report, and process at the STM. Both will attend the joint meeting with the BOS, FinCom and CPC on Tuesday, Oct. 14.
  • Planning Board update on Master Planning process: Not discussed
Next meeting(s): BOS, CPC and FinCom Meeting on Tuesday Oct. 14 7:00 pm Town Hall; S.T.M Tuesday Oct. 21, 7:00 pm N.E.S.; Tuesday Nov. 4, 2014 (N.B. must be rescheduled—possibly for a day meeting— due to election day on Nov 4.)

ATTACHMENT 1
Town of Newbury
Capital Planning Committee
Report to Fin Com
October 2, 2014
  • The organizational structure of CPC
  • The selection of the new chairman
  • The placement of the new Fin Com representative
  • The upcoming Town Meeting
  • Article 4-To See if the Town will vote to transfer the sum of $60,000 or any other sum from Free Cash to purchase and install a septic system at Manter Field; or act in relation thereto.
  • Expenditure discussed at CPC and approved
  • Article 5-To See if the Town will vote to transfer the sum of $75,000 or any other sum from Free Cash to provide engineering and construction services for the design of the Town Hall pump station and force main; or act in relation thereto,
  • CPC did discuss in FY14 the situation at the Town Hall and Police Station. Consistent with our discussions and understating this strong health and safety issue with a consequential major Capital expenditure in the near future.
  • Article 6-To See if the Town will vote to transfer the sum of $15,000 or any other sum from Free Cash to replace the stairs at the Byfield Grange; or act in relation thereto.
  • The study conducted by DMS Design Group identified the sum of $1,500 be allocated for stair repair.
  • The DMS Study is attached
  • Upcoming request for FY 2015
  • As of October 2, 2014 CPC has received the following requests for Capital Expenditures
  • Manter Field- Field H0ouse construction $ 200,000.
  • Design plans have been submitted to the building Inspector.
  • Newbury Council on Aging- New transportation Van
  • Request for a new transportation van $58.500.
  • Triton Regional School has put forward a request to update and repair the exiting stadium.
  • CPC is not certain that  this request is within our mandate to consider
  • The request I for a 15 year capital commitment for about 65K per year from Newbury.





ATTACHMENT 2
Town of Newbury
Finance Committee
Summary Report from Roles and Process Workshop

Meeting minutes, September 19, 2014


Objectives
  • Follow up on Actions taken since last workshop January 17, 2014 regarding the role of the Finance Committee.
Identify key stakeholder groups that the Finance Committee needs to work with.
Develop suggestions for improving the way the Finance Committee functions.

Outcomes
Actions related to Follow Up from January 17 Meeting
  • Marshall Jespersen was not present to update the group on the status of the revision of the town’s Master Plan. See further discussion below on relationship with other groups in Town.
  • Gene Case will contact Tracy Blais to collect documents related to financial management including multiple versions of “Financial Management Policies and Objectives” plus other documents. (This action is pending from the last workshop.)
  • The annual budget development calendar is produced by the Town Administrator and is available for the Finance Committee to use in planning its role in preparing for Town Meeting(s).
  • Erica Jacobsen reported on the following actions related to improving communication with members of the community:
  • Schools and other town organizations will be asked not to schedule events that conflict with town meeting dates.
  • Providing day care at Newbury Elementary for the evening of town meetings is being explored.
  • Weakness in some of the existing communication tools (website, video) has been identified but no actions have been taken to date.
  • Erica and Frank Remley will continue to prepare a presentation describing the financial state of the Town to be used to kick off town meetings and put articles that are on the Warrant in a financial context.
Actions related to Building Relationships with Other Groups
  • The development/updating of the town’s Master Plan are seen as a key document in guiding the role and priorities of the Finance Committee.: e.g., identifying revenue streams, growth of number of citizens, growth in town government, etc.
  • Specific actions to be taken:
  • Marshall Jespersen to continue in his liaison role to the Planning Board
  • Finance Committee members should review the current Master Plan to determine which tasks have been completed, which are still open and implications for action by the Finance Committee. [Note the town website has a document titled “1980 Town of Newbury Comprehensive Plan” accessible here.]
  • The Finance Committee concluded that rather than formalizing a liaison role with other groups in town (except for ones that already exist), the Finance Committee
  • will support an initiative by the Chairman of the Board of Selectmen to convene periodic meetings of all groups,
  • encourage cross-group sharing,
  • Help identify potential conflicts sooner rather than later.
  • Bob Connors to follow up with Geoff Walker to work out details.
Actions related to Improving the Functioning of the Finance Committee
  • Take formal votes with actions and accountabilities.
  • Assign a secretary to document and communicate key meeting outcomes.
  • Focus discussion of financial issues in the monthly meetings to exception items brought forth by the Town Administrator.
  • Post all meetings for the year with a standing agenda.
  • Ensure that there is an organizational meeting each year with election of officers (including FY 2015).
  • Conduct an annual succession review.

Report submitted by Rick Harris, Meeting Facilitator
September 22, 2014