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Meeting Minutes
Minutes Accepted and filed with the Town Clerk on 3/05/13 by a vote of 4-0
7:00 p.m. – February 19, 2013
Sutton Town Hall, Selectmen’s Meeting Room
Members in Attendance:
Chairman Michael Chizy, Vice-Chair John Hebert Selectmen Richard Hersom, Ken Stuart and David Hall
Also in Attendance:
Town Administrator James Smith & Debbie Jacques, secretary
Chairman Chizy calls the meeting to order at 7:00 pm followed by the Pledge of Allegiance.
No comments under Public Forum
Selectman Stuart motions to accept as presented, Selectman Hall seconds passes 3-0-2 (Selectmen Hersom & Hebert abstain/absent from 2/5/13 meeting.
No comments under Public Forum
Sale & award of bonds: Present is Treasurer/Collector Cathy Vandyne and Town Accountant Tim Harrison. Cathy informs the BOS that the sale of $5,101,963 General Obligation School Bonds took place on February 15th. These bonds are the remaining amount needed to borrow for the school project. Accountant Tim Harrison says 2 exciting things happened: the town voted their approval for a 57 million dollar school 2 years ago, 25 million was borrowed, and we are 50% through the project and are under budget. The 2nd thing is the timing that we borrowed the money and the low interest rates. The 1st borrowing was at 4.1 % interest and this borrowing is at 2.2% interest. Selectman Hersom asks when this will be paid off, Tim replies that the 25 million will be paid off in 2031 and the 5
million in 2033. Selectman Stuart says that the School Building Committee looked at the economy and there was no right time to do this project but with the low interest rates and now that you see the results you have your answer as to why we chose this time for the project. Selectman Hall asks if we can buy back the 25 million at 4.1% interest and try to get a lower interest. Tim replies no, they are in a 20 year bond that is non callable; it does not make sense to do it now. Selectman Hebert asks TA Smith how our AA rating fairs to other towns, Jim replies that Sutton has the highest bond rating (AA stable) in Blackstone Valley, our strong financial policies helped our rating. Jim states he would like to reach AAA which is the top rating but the thing holding the Town of Sutton back is the lack of commercial growth in town. Tim Harrison states that another positive that helped our bond rating was OPEB and the OPEB trust fund. Hearing no further comments, Selectman Hersom motions
that the sale of the $5,101,963 General Obligation School Bonds of the Town dated February 27, 2013 (the “Bonds”), to FTN Financial Capital Markets at the price of $5,199,865.34 and accrued interest, if any, is hereby approved and confirmed. The Bonds shall be payable on February 15 of the years and in the principal amounts and bear interest at the respective rates, as attached. (copy to be attached to minutes) Selectman Stuart seconds passes 5-0 the bonds are now signed.
Fuel Efficient Vehicle policy & plan update: TA Smith says this is a general housekeeping change on the policy approved in June of 2011. It covers how we track inventory for all town vehicles not just the vehicles that meet the criteria. Chairman Chizy asks how many fuel efficient vehicles do we have, Jim replies 2, this is a forward looking policy so new vehicles will be fuel efficient if possible. Hearing no further comments, Selectman Hebert motions to adopt the amended Fuel Efficient Vehicle Policy dated February 2013, Selectman Hersom seconds passes 5-0
FY14 Preliminary Budget presentation: TA Smith says this is his 6th annual budget presentation for the Town of Sutton. He is happy to say that currently this is a balanced budget. The total town budget for fy14 is $27,533,330. This is an increase of $643,000. from the FY13 budget. Our goal has always been to be sustainable and live within our means. The FY14 budget includes small additions to town services as well as, 1 police officer added for the Student Resource Officer, 1 employee for the Highway Dept. to oversee the Cemetery as this is now under Highways budget, the Library is fully funded (no waiver needed as in past years), we are in the 3rd year of paying down debt for the school project, lottery aid has been increased by $30,000 but is a 29% reduction since fy09. And Chapter 70 has
been increased by $38,000 (decrease of 5.3% since fy09. Two positive factors with this budget are 0% increase in healthcare and BVT was level funded. TA Smith reviews the revenue trends from 2003-2014, state aid is the same as 8 fiscal years ago; lottery aid has been all over the place. For FY14 we are putting new growth at $100,000. Local receipts have been level funded conservatively. Included in the Revenues is $62,000. for lease on the Manchaug Library, Solar Photovoltaic on the ELC roof and BOH Regionalization. Future projects that will add approx. $30,000. to our revenue include pv panels on 4 town buildings and pv panels on the new high school. Under expenditures, it is noted that employee benefits only increased 2.1%, this is an historic low. The school dept. will be seeing more layoffs, but we are confident this will be the last year. With appropriate increases, the school budget will continue to grow slightly in future years without the need for an
override. The Boat excise tax will be split between Manchaug Pond and Singletary Lake. Free cash will be used to fund highway superintendent’s sick leave buy back in FY14 as well as $65,000. from free cash for OPEB. For the enterprise funds, the Sewer Dept. has been level funded; use of retained earnings will be used to purchase a new truck. For the Transfer Station, the annual sticker fee will increase $10.00; this should help cover the increase in wages as well as the tipping fees. The total for FY14 Capital plan is $616,000. This includes a safety budget increase at the school, 2 new police vehicles, breathing apparatus for the Fire Dept., a roof for Waters Farm, windows for the 2nd floor of the municipal building and solar panels on 4 town owned buildings. Town Accountant Harrison said it is good that the preliminary budget is balanced. Selectman Hebert says this budget shows that we have a solid management team but he does have concerns that the school
overspends and then we are faced with layoffs. Tim Harrison responds that for the past 3-4years, the school has been level funded, they have salary increases as well as fuel and electricity increases with no additional funding, this puts them into a structural deficit. They have to layoff to balance the budget. Selectman Hersom echoes John’s comments, and says great job Jim and Tim. This budget is concise and easy to read. Rick says the budget is not always the message we want to see but it is nice this early in the season to have a balanced budget. He thinks it is a wise decision not to rely on the extra from the State until it is etched in stone. He is glad that there was an increase to the safety budget at the school as well as the addition of a school resource officer. Selectman Stuart says fantastic report, very detailed and concise. An increase of 2.47% from last year is fantastic as well as not having to dip into the stabilization fund. Ken asks if the new
Highway/Cemetery position will allow this person to assist the school with their lawns. Jim replies that in addition to the cemeteries, this individual will also maintain the grass at Marion’s Camp. Selectman Hall echoes all comments about the budget and message; the work to maintain these documents is significant. He goes on to say he commends Jim and Tim for managing the competing priorities. The conservative approach to financing over time is what allows you to present a balanced budget, at this stage that is due to years of good management. Dave says it is a concern of his to hear more cuts at the school, sizable cuts that will be hard for them to deal with and sustain. The town expects the school to continue to provide an excellent education. Chairman Chizy says that for the past 20 years he has been listening to budgets, the past few years have been music to his ears. Jim and Tim run everything so well, you guys do one heck of a job.
Town Administrators Update:
- The town’s financial policies will be discussed at the next BOS meeting (3/5). These policies have been good to us and good to our bond rating.
- The lottery for Leland Hill Estates will be held on April 10th, 2013. There will be a public meeting held on March 21st at 7pm. There are 12-14 homes that will be affordable income properties.
Announcements:
Selectman Hebert reviews some of the projects through the CMRPC for this year. This includes a 2 million dollar repair of the bridge on Blackstone St. known as the singing falls dam bridge and the 146 @ Boston Road project.
Round Table & Correspondence:
Selectman Hersom asks to be kept up to date with the Planning Boards agenda for the 146 development project, there are a lot
of moving pieces.
Selectman Hall asks when Fin Com is holding their public hearings on the budget. TA Smith replies, March 6, 7 & 12th.
Chairman Chizy reminds all the need for donations to the Food Pantry for those needing fuel assistance.
Selectman Hersom motions to adjourn, Selectman Hebert seconds passes 5-0 Meeting adjourned 8:05 pm
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