Wellfleet Finance Committee
Minutes of Meeting of August 26, 2004
Senior Center, Long Pond Room
Present: Berta Bruinooge, Chair; Nancy Bone, Arlene Kirsch, John Makely, Carl Caruso, Sylvia Smith
Excused: Mac Hay, Pat Foley
Chair Bruinooge called the meeting to order at 7:01 p.m. and introduced Mary Rogers, who will succeed retiring Fran Castillo as the Finance Committee secretary, to the committee members. The Chair informed the Board that she had called Moderator Dan Silverman about the vacancy on the committee; Silverman had assured her that he would work on finding another member.
Definitions for Informational Hand-Out. Members distributed their definitions for discussion and editing by the committee; consensus of the committee was that these definitions should be simple and concise in order to more easily aid the public in understanding the terms.
Capital Improvement Plan-John Makely. Makely’s source for his definitions was Massachusetts Department of Revenue, “Developing a Capital Improvements Program.” After discussion, the following statement was approved: A capital improvement plan is composed of two parts—a capital budget and a capital plan. The capital budget is the upcoming year’s spending plan for capital items (tangible assets or projects that cost at least $10,000 and have a useful life of at least five years). The capital plan is a plan for capital expenditures that extends four years beyond the capital budget.
Capital Budget vs. Operating Budget-Sylvia Smith. Smith’s references were from the same source used by Makely. The committee arrived at the following definitions: (1)Capital budget is an annual appropriation or spending plan for capital expenditures. Capital expenditures are usually associated with acquiring tangible assets (such as a fire engine or real estate) or completing projects that have a useful life of at least five years (such as water systems). The capital budget states the method of finance for each recommended item and must be approved by Town Meeting voters. (2) Operating budget is a plan of proposed day-to-day expenditures for personnel, services, and supplies for the coming fiscal year. The operating budget must be approved by Town Meeting voters.
Ballot Question and Relationship to Town Meeting Articles-Carl Caruso. Caruso’s source was Massachusetts DOR, “A Guide to Financial Management for Town Officials.” The following definition represents the committee’s editing of Caruso’s material: Town Meeting is the legislative body and appropriating authority of our town for financial decisions. Town Meeting approves the annual budget Article and authorizes specific expenditures. The budget adopted by Town Meeting is affected by Proposition 2? limitations on property taxes. If an override of the tax limitations is passed at Town Meeting, it must be approved by a general referendum of all town residents. Any additional taxing capacity over the 2? limitation passed at Town Meeting must be approved by general
referendum (Ballot Question).
Warrant and Article-Nancy Bone. Nancy Bone used the dictionary, the DOR, and the Finance Committee Handbook as sources for the following definitions: (1) A Town Meeting warrant establishes the matters that may be acted on by voters at Town Meeting. (2) An Article is a separate item placed on a warrant for Town Meeting. An Article may be placed on the warrant by the Selectmen or by a petition of residents/voters.
Levy Limit-Arlene Kirsch. Kirsch had at the 7-15-04 meeting provided the committee with a series of definitions; the following definition is a synthesis of the information on levy limit contained in that document: A levy limit is a restriction on the amount of property taxes a community can appropriate in a given year unless the voters approve an override at the polls.
Debt Exclusion-Berta Bruinooge. Bruinooge used information from a 2002 document entitled “What is Proposition 2 ? ?” by Tim Woodman, a former FinCom member, to aid in the definition of debt exclusion and capital exclusion. The committee produced the following statement: Debt exclusion is used to raise more taxes for the annual debt service costs (interest and principal payments) of projects funded by borrowing. The additional amount is added to the levy limit only for the life of the debt. Debt exclusion is used when an item is purchased outright, without financing cost. A capital exclusion is used when the project is funded by an appropriation. In the case of a capital exclusion, the amount increases the levy limit for one year only.
Liaison Positions. The committee discussed the list of liaison representatives to various departments and committees. At the last meeting, it had been decided to omit the following from the list: Shellfish Advisory Committee, Human Services, Housing Authority, and Cape Cod Technical High School. Added were Charter Review Committee and Local Comprehensive Planning Committee (see attachment to minutes for the new list). The secretary will send memoranda to all departments and committees with whom FinCom liaisons, requesting monthly reports or minutes to be sent to the liaison member.
Review of Mail. The Chair reviewed the mail, noting:
Accountant’s Budget report—FinCom turned back $150 to town from FY2004 budget.
Letter to Chair from Virginia Crossman urging that the Town Administrator make an inventory list of all town property. From the audience Marilyn Crary, Town Accountant, noted that a total list of all town assets exists in the Accountant’s Office.
Quarterly Reports from the police chief.
Financial statement of Nauset Together We Can.
Minutes of July 15, 2004. John Makely moved and Sylvia Smith seconded the approval of the amended minutes of 7-15-04; the motion carried, 6-0.
Other Business.
Special/Annual Town Meeting Warrant Article Recommendations. FinCom has received from Tim Smith, Town Administrator, the draft warrant for STM of October 18, 2004 along with a memo requesting positive or negative recommendation of pertinent articles, in accordance with Wellfleet Charter Provision Chapter 2, Section 7, Paragraph 2. Members discussed the problem of the time element, since they had just received the draft warrant and recommendations would be due in the Administration Office by September 7.
Arlene Kirsch suggested printing recommendations in the newspaper rather than in the warrant; the Chair commented that the Charter directs FinCom to the warrant.
The Chair noted that some of the Articles that FinCom was called to recommend for or against were very important issues which belonged in the Annual Town Meeting rather than the Special Town Meeting.
Kirsch proposed that FinCom request a more extended deadline for printed comments, set a meeting to review the warrant for the next possible date, and make a decision that, if it could not meet the printing deadlines, comments would be printed in the newspapers.
The Chair suggested holding a meeting on September 13 and handing recommendations to the BOS on September 14. In the meantime, she proposed to find out what the term “next regular election” meant in the boldface explanation of Article 5 on the Community Preservation Act (draft warrant, top of page 4).
John Makely moved that the Finance Committee does not recommend Articles 1, 2, 3, 4, 5, 6 and 9 of the draft warrant of 8-26-04 for the Special Town Meeting of October 18th because of inadequate time to analyze the financial implications of the articles and to submit recommendations to the voters within the time frame dictated by the Town Administrator’s memo of 8-26. Carl Caruso seconded; the motion carried, 6-0.
Carl Caruso moved that if September 7 is the deadline for comments to be printed in the warrant, then the statement of the above motion shall become the Finance Committee message to voters. Sylvia Smith seconded; the motion carried, 6-0.
It was decided that a meeting would be posted for September 13 at 7:00 p.m., the room for which to be determined.
Interline Transfers Within and Between Departments. Marilyn Crary, Town Accountant, presented 2nd and 3rd requests revised for interline transfers (per MGL, Chapter 46, Section 123) for payment of bills from FY2004. The request had been presented to the BOS and needed the concurrence of FinCom. Arlene Kirsch moved approval of the interline transfers for $33,517.33; Sylvia Smith seconded; the motion carried, 6-0.
Nauset Regional Budgets Templates. Sylvia Smith had talked (in connection with acquiring information for a FinCom mission statement) with Don Schubert, Chair of the Brewster Finance Committee, who has prepared templates for the Nauset Regional School budgets and would like to present this to other finance committees to have all towns on the same line. Chair Bruinooge suggested inviting Mr. Schubert to the November 18th meeting to hear what he has to say.
Next Meeting. At the next regular FinCom meeting, September 23, 2004, the committee will work on its mission statement.
Nancy Bone moved adjournment; Arlene Kirsch seconded; the meeting ended at 9:30 p.m.
Respectfully submitted,
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Frances J. Castillo, Committee Secretary Berta Bruinooge, Chair
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