Sturbridge Finance Committee

Meeting Minutes

September 10, 2009

Senior Center

7:00 pm

Meeting was called to order at 7:05pm  with the following members present: Kevin Smith (KS), Larry Morrison (LM), Bob Williams (BW), Mary Redetzke (MR), Mike Serio (MS), and Patricia Affenito (PA).

Motion to transfer $350,000 from the Reserve Fund for the purchase of a new fire truck to replace engine #5 and for additional money needed to replace engine # 1 made by LM, seconded by MR, so moved 6-0-0.  There was $325,000 voted at Town Meeting in 2007 for replacement of engine #1; however, at this time, the funds were insufficient to cover the expense.

Motion to transfer $2489 from the Reserve Fund to FY10 budget account #11985-52000: 8 Brookfield Road made by MR, seconded by MS, so moved 6-0-0.

This will replace the entire roof.

Discussion of possible upcoming Reserve Fund transfers:

1. $17,000 for elections- there are 3 elections needed that were not accounted for in the FY10 budget: 10/26/09 Debt Exclusion Vote, 12/09 Ted Kennedy replacement (reimbursed by the State), 1/10 State election, 4/10 Town election.

2. $3000 towards the Town Administrator search

Discussion of possible increases in Hotel Occupancy Tax and Restaurant Meals Tax:

+.75percentage points for Meals Tax (Sturbridge @ 7%):

Ÿ         Delay of 30 days before implementation

Ÿ         Based on state estimate- + $200,000/yr (~$100k for FY2010) but will not be available for use until FY2011.

Ÿ         Many restaurants are opposed to this

Ÿ         Town needs additional revenue; new growth is dramatically declined

+2 percentage points for Hotel Occupancy Tax (Sturbridge @6%:

Ÿ         Betterment & STA will see their increases by 32 ½ % of this

Ÿ         @2pp expected increase is +$254k; @1pp expected increase is +127k

Ÿ         Hotels have not voiced their opinion on this issue as yet

Discussion of requested new sewer on Rte. 15.

Discussion on school issues:

New Burgess School- expected cost at $47million and hopefully 50% state reimbursement

9/30 State declares their decision and a definitive % reimbursement

10/19 STM

10/26 Town votes on debt exclusion

Regionalization- will not affect school building design

Not expected to fly since the other towns cannot afford to regionalize with Sturbridge.

Discussion of New Members reference & resource book for FinCom proposed by LM.

Meeting adjourned @ 9:10pm.

Respectively submitted,

Patricia Affenito