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Town of Newbury
Finance Committee Meeting
Tuesday Sep 1-3, 2015, 7:00 pm, Town Hall
Meeting Minutes (Final)
Attendance: Linda Allen, Gene Case (Vice Chair), Bob Connors, Larry Guay, Marshall Jespersen, Frank Remley (Chair) on Tuesday at 7 pm; Erica Jacobsen at Thursday continuation meeting.
Ex-Officio: Tracy Blais, Town Administrator/Finance Director
Agenda
- Meeting minutes: 7.07.15: Approved unanimously 6-0-0
- Financial update incl. July 2015 (FY 16 Month 1); June 2015, (FY 15 YTD) Revenues and expenses: (T.A.) There were no concerns expressed in either the FY 15 year end results or the July FY 16 initial results.
Comments:
- The FY15 Year End results show net positive revenues above projections of $515,028, and budget savings on year end expenditure report of $654,708. Together this yields a potential for free cash of $1,169,736 or more as revenues are still being collected for FY 15.
- There was some discussion about individual departmental savings, but with no significant issues or concerns.
- There was a proposal that financial results of the new Ambulance Enterprise Fund be reported to the Finance Committee at least quarterly in FY 16. A financial plan was proposed and requested to show how it will basically work and key accounts to be maintained.
- Reserve Fund update: (T.A.) There were no new requests for reserve fund transfers
- CPC update: (Larry):
- Appointment of one of two FinCom appointees to fill expired term: Marshall Jespersen was unanimously voted to a new term as a FinCom member of the CPC. Larry Guay remains as Chair.
- Pending capital requests: There are no new capital project requests as yet for FY 16.
- Newbury Planning Board Strategic Plan update: Marshall Jespersen reported that the planning process has begun, a contractor has been selected to assist, and that he has been assigned to chair the element involving “Community Facilities and Services”.
- Old/new business as needed:
Finance Committee Recommendation on Public Safety Complex: At its previous committee meeting, Gene Case was assigned the task of meeting with the Town Administrator/Finance Director to examine the impact of the cost of the project on Newbury’s total debt and the increase in taxes, especially as we continue to retire current debt. A proposed financing plan, developed by the finance department, showing the impact of retiring debt and the use of available funds to mitigate the impact on taxes was submitted to the committee for review. A copy is attached to the minutes.
Gene also submitted a draft document outlining the committee’s responsibilities and the rationale for our recommendation of the project. A review of the financing plan showed that the net impact of the project on taxes from total debt for the average home, with assessed value of $422K, resulted in an increase of $51 above the current FY16 tax from debt which is $198.
The committee determined that Marshall Jespersen and Gene Case would collaborate on writing the final document to be made available to the press and the public. The committee agreed to suspend the meeting and reconvene at 7:15 A.M. on Thursday, 9/3/15, at which time the committee voted unanimously (7-0) to approve the final document entitled Finance Committee Recommendation on Public Safety Complex. The draft was subject to final editing by Erica Jacobsen and Gene Case and review by the Town Administrator and Town Counsel. A copy of the recommendation is attached to the minutes.
- The meeting was not adjourned, but suspended for a vote on a final draft on Thursday at 7:15 am. The meeting re-commenced at that time.
* * * * * *
- Thursday, 7:15 am: Subject to editing and legal review, the draft letter shown in exhibit 1 was unanimously approved, 7-0-0.
- Erica Jacobsen and Gene Case were asked to edit the letter with the Town Administrator and Town Counsel.
- The Meeting was adjourned.
- Upcoming meeting: FinCom, 7:00 pm, Tuesday, Oct 6, 2015, Town Hall
Exhibit 1: Final Draft of the Letter to the Editor.
Newbury Finance Committee Recommendation on Public Safety Complex
The responsibility of the Finance Committee is to represent “Town Meeting” throughout the year; to review all financial matters and make recommendations for action to be taken by voters at the Annual Town Meeting or any Special Town Meeting. Our charge is to make recommendations that are in the best financial interest of Newbury taxpayers.
After spending considerable time during this past year reviewing the Public Safety Complex Proposal, the Finance Committee voted unanimously to recommend funding of detailed plans, design and preparation of bid documents. Residents at the Annual Town Meeting on May 19 voted 4 to 1 to support this initial phase of the project, which will come before all voters on September 15th. Approval will enable funding of up to $984,000 for the detailed architectural and engineering design and planning of the project. When finished, and bids are in, a second public vote will be needed to approve funding of the project.
One of the major questions considered by the Finance Committee in its deliberation was a concern for the net impact of this project on taxes. Current estimates are not to exceed $11.6 million. Final costs will, of course, be determined by the scope, design, phasing and eventual bids.
When evaluated on its own, the estimated total cost of the project is projected to be $249 per year. However, the estimated net annual tax impact is expected to be $51 on the average home with an assessed value of $421,347 when the proposed Public Safety project is approved. This will be achieved by the proposed financing plan and the paying off of current debt. The reduction of our current debt makes this project financially timely.
In addition the new public safety facility will:
- Reduce the maintenance expense of the existing buildings;
- Provide additional needed space;
- Alleviate environmental/health concerns and their attendant costs;
- Improve municipal functionality;
- Eliminate the need and expense for temporary trailers;
- Enable sewer services to all three departments directly affected at the lowest combined cost possible.
The Newbury Finance Committee has determined this project will be in the best financial and operational interest of the town over both the short and long term. Therefore, the Newbury Finance Committee unanimously recommends the proposed Public Safety Complex.
Sincerely,
The Newbury Finance Committee:
Linda Allen Eugene Case Robert Connors Larry Guay
Erica Jacobsen Marshall Jespersen Frank Remley
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