Town of Princeton, Mass. – Aug. 29, 2016 – 5:30 PM
BOARD OF SELECTMEN – Regular Meeting Minutes
Chairman Stan Moss, Edith Morgan and Jon Fudeman present along with T.A. Nina Nazarian and residents. In the following actions, all BOS votes were preceded by a motion from Jon F. and seconded by Edith M. unless noted otherwise. Stan announced the meeting was being recorded.
5:50 PM Stan opened meeting at Princeton Center. Nina N. explained how she and Jim Dunbar have reviewed borrowing options for broadband and whether the bond should be within--or exempt from--Prop. 2 ½. The state Dept. of Utilities becomes involved when a Municipal Light Plant (MLP) under M.G.L. c. 164 is involved. If subscriptions are not sufficient to cover bond obligations, payment may come from other sources including taxing within the levy limit (if not excluded from Prop. 2 ½), infrastructure stabilization funds, free cash etc. Nina noted that end-of-year gross profits (from subscriber revenue) cannot exceed 8 percent with an MLP. Anything over would be funneled into a fund for future operating costs. An MLP cannot borrow funds unless they have formed a cooperative to do it. Resident Phil Gransewicz asked
about town sources for contingency funds, and if they’re being planned, to cover any shortfalls in broadband revenues. Stan noted that the two stabilization funds which would be available now total over $900,000 plus about $75,000 from other funds. The town usually pays for capital expenditures, such as vehicles, with free cash. Going forward, the PBMLP could create a rate stabilization for excess profits. The 5-member PBMLP board which will be created to replace the current board (made up of selectmen as a temporary measure) will be deciding how to manage any excess funds after the break-even point is reached.
6:20 PM Group discussed scenarios for proposed borrowing for broadband and merits of a debt exclusion as opposed to an exemption from Prop. 2 ½ as well as options for no pre-payment penalty, level debt or equal principal and re-issue of bonds for a better rate. Bill Holder suggested the bond be issued as “callable at any time.” Selectmen voted all in favor to place articles 1, 2 & 3 on the STM warrant as modified and voted all in favor to sign the warrant.
6:47 PM Board voted to adjourn.
6:51 PM The Board opened the meeting again. Jim O’Coin, Wayne Adams and John Shipman from the Advisory Committee were present and noted the steep challenge of stringing fiber in one year. Group discussed the logistics and Stan asked that Nina and Marty talk to Brian Allen about this. Jim O. noted some concerns about funding Bagg Hall renovations at the ATM in May, but Edie and Stan said they didn’t anticipate funding for renovations in May. John S. noted that his committee appears to be on the fence concerning the broadband project but anything could happen before the STM. Edith suggested the Adv. Cmte. and PBMLP should meet after the next informational meeting.
Wayne A. then explained what was planned for their meeting on Wednesday night, Aug. 31. The Adv. Cmte. has a STM public hearing slated for Sept. 7.
7:15 PM Board voted to adjourn.
Respectfully submitted, Marie Auger, Admin. Assistant and Nina Nazarian, Town Administrator
BOS Referenced Documents: STM warrant final
Marie Auger
Administrative Assistant
Planning Department
978-464-2100
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