BOARD OF SELECTMEN
Joint Meeting with CIPC & Finance Committee
Tuesday - October 1, 2015
Community Hall Annex
7:17p.m.
Present: Leroy Clark, Michael Pantos, Wayne Walker, Sheila Dibb, Stephanie Bacon
Margaret Nartowicz, Town Administrator and Becky Tuttle, Town Treasurer/Collector
Finance Committee Members: Lyndon Nichols, David Bigelow, Carl Bindoo, Debbie Kristoff,
and David Bigelow
CIPC Members: Joseph Becker, Julie Ann Kelley and Addison Redfield
Opening of Meeting by Chairman: Mr. Clark opened the meeting at 7:17 p.m.
Ms. Nartowicz explained the purpose of the joint meeting was so the various boards and
committees had time to review the proposed financial policy and to obtain feedback so the
policy can be finalized.
Discussion and reviewed followed with the Board of Selectmen, Finance Committee and
Capital Improvement Planning Committee.
Joe Becker, CIPC, reported that the CIPC has reviewed the policy and had the following
comments and suggestions. He stated that most of their comments refer to page two of the
documents. He pointed out the primary issue comes under the" debt limitations" section
noting that the language is different than what the town has done in the past but would be
valuable if the town sticks to it. Mr. Becker references the section that indicated "3% of the
annual budget will be debt service but outside Proposition 2 l/2 debt service including the
enterprise funds related debt". He continued with an observation that based on this
document when the non-excluded debt service is retired, instead of the town being able to
reallocate the funds in the levy to the operating budget or the school, the money would have
to be budgeted for future debt only. The CIPC feels it is a good idea but they see it as an
obstacle if the town doesn't adhere to it and shouldn't include it if we can't stick to it.
Another question was on the section referencing the "debt maturity" schedule the
committee believes the town should stay within the MGL timeframe for borrowing. Mr.
Becker noted the CIPC suggested adding a new section regarding long term borrowing for
capital improvements only and anything costing less than $35,000 should be funded
without borrowing. Another suggestion is to add language that the town will strive to limit
debt service to approximately 20% of combined operational budgets including enterprise
funds. He commented that the town should review the max or ceiling of all debt including
enterprise on what the town feels is appropriate. Ms. Nartowicz explained that Standard &
Poor's feel the debt load of the town is too high currently and suggested establishing a debt
policy.
She will look to see if there is any state guidance on setting policies. Ms. Dibb continued
discussion on the policy related to the maturity schedule. She feels that the town should not
be at a point when we don't have levy capacity, and we should not debt exclude any major
projects in the future.
Mr. Bindoo questioned if there are specific guidelines that are established by the DOR. Ms.
Nartowicz said she would check.
Ms. Nartowicz asked if there were any comments on establishing a Capital Stabilization
Fund (Pg. 2 ,r6). Mr. Becker noted the original document was adopted from the Town of
Groton's policies which is a much more affluent town than Rutland so the percentages are
skewed. The majority of the group agreed the town should institute one but at a different
percentage. Ms. Nartowicz would like to see the debt policy in place in
time for the budget
season.
NEW BUSINESS:
Review and Sign Special Town Meeting Warrant: Ms. Nartowicz reviewed the articles for
the October 26, 2015 with the Board. She recommended several article requests be held
until the spring. Regarding the Wachusett Operations article, Ms. Nartowicz explained
where the funds would be adjusted from areas such as estimated located receipts, overlay
surplus, free cash and budget reductions. Mr. Nichols informed the group that the
departments have already been level funding and cutting budgets for years.
Discussion ensued regarding an override and debt exclusion for the school. Ms. Dibb stated
she would like to see the town retry a debt exclusion again so the DOE does not have to step
in to set our assessment.
Discussion continued regarding various budget deductions. Ms. Nartowicz discussed the
position of Town Clerk being appointed verses elected and the related salary. Anita Carlson,
Town Clerk joined the meeting to continue discussing her position.
Adjournment:
Mr. Walker moved to adjourn. Ms. Pantos seconded. Motion made and seconded. Vote
unanimous.
Meeting adjourned at 9:01 p.m.
Respectfully Submitted,
~(3 cl.-D-6-
Stephanfe Bacon
Selectboard Clerk
(drafted by Jacqueline O'Brien)
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