Selectboard -- Town of Princeton, Mass. – March 29, 2018 – 3:00 PM
Present: Chair Jon Fudeman, Edith Morgan & Richard Bisk w/ TA Nina Nazarian.
Meeting with Ad Hoc Financial Group 3:05 PM - Meeting was opened by the chairman. Volunteers Karen Cruise, Wayne Adams, John Kowaleski and Bill Holder (Rick McCowan absent) explained their research and have submitted a report. They had gotten data from town and state, plus bond rating agencies. Several members used different financial models and came to similar conclusions. They all favor a long-term financial plan, contending that there will be more room for the town to borrow about five years from now, as current debt disappears. Bond rating of the town may go down if the percentage of the town’s debt service gets above seven percent, which translates to higher interest rates. Question becomes how much debt can town afford?
All agreed that a financial model was much needed, noting that it’s moving all the time, as new figures are plugged into it. A new baseline should be interjected after the May ATM budget approval. Bill H. said the model provided a neutral base and was a much-needed look at the big picture. Karen C. insisted that individuals in the group were diverse in their approach and opinions, and there was no group agenda or political motivation.
John K. noted that there was no consideration by the town to increase the tax revenue base, and he suggested that light industry should be encouraged.
Jon F. had some suggestions for the budget process, including moving certain capital projects from the operational budget to capital borrowing.
Group wanted to distribute the Ad Hoc report to reach all residents, but Nina warned that it was not a town-sanctioned group or report and there should be a disclaimer if it is published on the town website.
Selectboard voted all in favor to post the eight-page report on Town News with a disclaimer that it is not the town’s report and was created by an independent citizens group. Also, include contact information about members of the Ad Hoc Group.
Wayne A. suggested a finance committee to do long-term and capital planning. It was mentioned that the town accountant and/or finance director attends finance committee meetings in other towns. Nina explained that in her experience, this was more common in larger towns.
Public Comment: Phil Gransewicz suggested that the report remove references to a “committee” which implied a town-appointed group, and he complained that he never succeeded at getting a copy of the report. He also insisted that one member of the group had an agenda.
Administrative actions 3:55 PM The Selectboard thanked the group for their efforts and turned to regular business. They voted all in favor to authorize Nina to sign a contract with N.E. Acreage Group, Inc. of Leominster for grounds-keeping services for two years and two months. They voted all in favor to authorize spending an additional $15,000 toward the Snow & Ice deficit. The board voted all in favor to accept a reimbursement from FEMA for $30,000 from a 2015 snowstorm, for deposit in the so-called general fund. Nina announced that, as per the S.B. decision at their previous meeting, the Bond Bill letter as written by Richy has been hand-delivered to the Conference Committee.
Advisory Committee Review Committee report 4:05 PM Members of the ACRC came in: Chair Terry Hart, Joe O’Brien, Bob Sauer, Anne Littlefield and David Cruise have been working on their charge since August and distributed their final report. Their official charge was to “Examine the function and operating methods and related matters relative to the Princeton Advisory Committee, including but not limited to the Advisory Committee By-Law.” They considered two questions: Should the Adv. Cmte. be limited to research and comment on the annual ATM warrant articles; and, should the method of appointment be changed. Joe O. said the group did a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats). They did not recommend any changes in the bylaw or the appointing body (Selectboard). The
over-riding advice was to make the S.B., T.A. and Adv. Cmte. more collegial and collaborative and incorporate a team approach for budget and warrant decisions. The Adv. Cte. should be expansive in their role as a consulting body to the S.B. The ACRC suggested putting a one-page summary of duties and expectations on the Adv. Cmte. page of the town website. David Cruise said that the AC was not a financial watchdog. Jon said that the first line of
the DLS Guide to Financial Management Guide section relating to the role of a finance or advisory committee said that it was the fiscal watchdog of a town. Jon asked that assuming a change in bylaw wording was not necessary, what harm would there be by including in the bylaw. the wording from the MGL Chpt. 39 Sec. 16 clarifying the role of
the AC: "advisory or finance committees, who shall consider any or all municipal questions for the purpose of making reports or recommendations to the town"? Joe O. responded that the Town should be cautious about by-laws changes and only do it when the need was extremely clear. Jon cited several instances in the past where town monies totaling over $12 mil were wasted, such as $8 million on the wind turbines. He also noted the lack of planning relative to town facilities.
There was discussion about actively recruiting Adv. Cmte. members from the community for more diversity, as members were often automatically re-upped when terms ended.
Jon F. presented a proposal to add (to the local bylaw) the MGL definition of the finance/advisory board charge, which states that such board “… shall consider any or all municipal questions for the purpose of making reports or recommendations to the town…” He also noted that their role as a watchdog may be a good idea. He cited several spending mishaps from the past, such as $8 million “wasted” on the wind turbines and lack of funding for town buildings. Joe O. countered that changing the bylaw or the committee’s charge would not have changed any of those spending mishaps.
It was suggested that the Adv. Cmte. could be included in the S.B.’s goal-setting sessions. The ACRC members adjourned.
Articles from FSC discussed further 5:55 PM After clarifying their previous decision to support placing the FSC Option “A” on the warrant, board members voted to separate the funding articles of Option A and create one for Bagg Hall and one for Public Safety—each to include design/engineering plus construction. They also voted all in favor to set a date of June 11 for a ballot election to approve borrowing for any exclusions, etc., contingent on their approval at ATM.
Space for COA at P.O. Place Nina reported on details around the possibility of leasing the former Sonoma space at P.O. Place for use by Council on Aging. Nina suggested that she would be interested to form a group potentially consisting of Karen Cruise, Jim O’Coin and Linda Farineau to investigate options for COA space. At 2,765 sq.ft., the town can lease the space for $1/sq.ft. plus utilities and after funding some renovations—which may be extensive. Discussion continued regarding the unknown factor of short-term vs. long-term use of leased space. In the short term, the P.O. Place basement which the COA is currently leasing, could be expanded by the addition of one unit for several more years of use.
Administrative items 6:25 PM S.B. needed to decide where/when on agenda to approve minutes, as they have been passed over at some meetings and then they accumulate. Edith and Richy agreed to address them at beginning of each meeting. Instead of trying to schedule each agenda item with a specific clock-time, Nina will set approximate timeframes for each agenda item, and set an informal end time. The group agreed to try-out this protocol and also to set time limits for presenters.
6:35 PM Adjourned meeting
Respectfully submitted, Marie Auger, Admin. Asst.
Referenced Documents: Financial Report of Ad Hoc Citizens Group; Advisory Committee Review Committee report; draft warrant articles from FSC for 2018 ATM
Marie Auger
Administrative Assistant
Planning Department
978-464-2100
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