Finance Committee Minutes
Thursday August 30, 2018
Rutland Public Library
7:00 p.m.
Present: Tom Ruchala, Karen Nahrwold, Lyndon Nichols, Carol Martens
Others: Laura Paradise – Secretary
Mr. Ruchala opened the meeting at 7:00 p.m.
MINUTES
Mr. Nichols moved to accept meeting minutes from June 28, 2018. Ms. Nahrwold 2nd. Vote unanimous.
NEW BUSINESS
ATFC Invoice – Membership Dues
The Committee received an invoice totaling $180.00 for annual membership with the Association of Town Finance Committees (ATFC).
Mr. Nichols moved to renew the Finance Committee’s membership in the Association of Town Finance Committees. Ms. Nahrwold 2nd. Vote unanimous.
Ms. Martens asked what is provided by membership. Mr. Nichols stated membership gives the Committee access to books, classes, and meetings. There is a meeting at Devens on November 3rd with classes available for $50 each (not paid for by the Town). The meeting is a beneficial way to network with other Towns and members of school boards.
Joint Regional Meeting, Holden – September 11, 2018
There was discussion about attending the upcoming regional meeting. The district transportation budget shortfall of $600,000 was discussed. The Town was expecting to get back money this year. Mr. Ruchala has the impression that the $600,000 would be spread out over a few years to get paid back.
Mr. Ruchala and Ms. Nahrwold will do their best to attend the regional meeting.
RDIC Income from Land Use – Special Account
Doug Briggs, RDIC, was present to discuss the solar project at Rutland Heights. A joint RFP was put out by the Town and RDIC. The Town and RDIC have accepted the bid to put 5 megawatts (MW) at Rutland Heights and 5 MW by the water tanks. Because RDIC operates differently than the Town, they have expedited permitting. RDIC can get everything done, but must go through the Planning Board, ZBA, etc. They want to be able to put shovels to the ground in 7 months. The panels could bring in about $1 million a year in revenue for the next 20 years. Revenue would be broken off into PILOT, what the Town will get, and what RDIC will get. RDIC has control over the first $300,000 to pay off what they owe. Mr. Briggs has some concerns based on prior experience and feels there needs to be a plan in place for what to do with the money when it
comes in.
Mr. Nichols asked if it can be used toward Christopher Heights. Mr. Briggs stated funds could be put away in capital stabilization to be used for Christopher Heights. He reached out to Dan Haynes, Town Accountant, to ask what Mr. Haynes has seen done in other towns. The money received for timber went into a receipts reserved fund and was transferred at Town Meeting. Mr. Briggs wants to be sure they have an idea of what to do when the money comes in.
Solar is a 20-year commitment. Mr. Briggs does not want to be broke at the end of 20 years because it couldn’t be sustained. While Mr. Briggs wasn’t in favor of solar, the land being used for the panels can’t be used for anything else. The panels won’t be seen from the street because of the slop. There was discussion about what could be done with $600,000 a year – whether there should be focus on Christopher Heights or Town-oriented projects. Mr. Nichols asked whether it was already decided there was a need for senior housing and Ms. Nahrwold asked about the status of Christopher Heights. Mr. Briggs stated the assessor's office was supposed to be contacting them. Mr. Briggs wants to be sure they are moving forward. RDIC will be putting out another RFP for the rest of the trees to bring in another $30,000.
RDIC has requested to set up a joint meeting with the Board of Selectmen, Finance Committee, Planning Board, and Conservation Commission to help organize everything. There is concern that RDIC’s plans will drive through while the Town remains stagnant and funds would be lost.
There was discussion about the 20-year contract and what would happen at the end of the lease. Ms. Nahrwold asked about a bond for the removal of the panels in 20 years, or in the event of solar going belly-up before the end of the contract. Removal of the panels would cost $780,000. A surety bond would be obtained eventually to cover at least $780,000. Solar program incentives make all their money in the first 9 years. A bond would not be needed in the first year but should be obtained within the first 9.
The PILOT and lease agreement would ideally be brought to the Fall Town Meeting. As a municipality, the taxpayers would have to vote to approve giving the company a tax break. Ms. Martens asked if there was any anticipation of voters having issues with that. Mr. Nichols feels the matter would be supported by voters.
Mr. Briggs discussed the solar farm going up on East County Road and the struggle to get an agreement. Ms. Nahrwold stated the Town should not be able to go through any more or less of the permitting process than any citizen.
Mr. Ruchala expressed concern about abutters or people opposed to solar in general speaking out against the project – he feels residents should be notified and have a chance to speak about their concerns. In the past, solar projects that came to Town Meeting have passed. Mr. Nichols stated people should be informed that the land can’t be used for anything else.
RDIC does not want to cut down trees if solar will fall through. The trees can only be cut during certain times of the year. They have to make sure the solar contracts are signed and everything is in order.
There was discussion about the formation of RDIC through legislation in 1965. RDIC is its own entity and is owner of the Heights Hospital. They do not have to jump through all the same hoops that the Town does, but they want the Town involved in the project.
Mr. Ruchala asked about the money for records and GIS mapping. Mr. Briggs stated $25,000 has been spent. The property was cleaned up by the state initially, but the state won’t certify that it’s clean. RDIC wants to be able to identify underground tunnels – some were cleaned, others crushed and filled with cement.
RDIC would be looking to set up a special account for the solar revenue. Ms. Nahrwold suggested from a taxpayer’s perspective that the money could be put into capital equipment stabilization or general stabilization and could be used to pay down OPEB or other lingering liabilities. Mr. Briggs stated they are required to pay off the property loan first. He would then set up a fund to put money into 61A to buy off properties. The funds could be earmarked for separate items, but not all go into the general fund. The Town would have to vote for capital equipment stabilization, not just CIPC.
Mr. Briggs stated they are not looking for money to go to the RDIC account to be doled out. There should be a plan in place for distributing funds when they come in. Ideally, Mr. Haynes would set up in advance to earmark the money for certain accounts with Select Board approval and recommendation by the Finance Committee. This would have to be done every year.
Ms. Martens asked if anything had come of the letter to Market Basket. Mr. Briggs stated they were negative about the location of the Town as there would be no traffic flow to support a store. Because of the Water & Sewer Moratorium, they would be looking at Rutland Heights for senior housing in the section on the right. There is 55+ housing in Town, but no truly subsidized senior housing.
There was discussion about Green Communities grants for the Senior Center and Annex.
Mr. Nichols recommended a joint meeting with the Select Board to discuss special accounts. Mr. Briggs invited members of the Finance Committee to an upcoming meeting hosted by RDIC, to include the Select Board, FinCom, and departments.
NEW BUSINESS
There was discussion about the finance committee manuals available online for new members.
Mr. Nichols moved to adjourn the meeting. Ms. Nahrwold 2nd. Vote unanimous.
Meeting adjourned at 7:49 p.m.
Respectfully submitted,
________________________ Laura Paradise, Secretary
Approved on: ____________
________________________ Thomas Ruchala, Chairman
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