Minutes
Joint Meeting with the Board of
Selectmen
Judge Welsh Meeting Room,
Members Present:
Gary
Delius, Chairman;
Members Absent:
Frederick Biddle (alternate), Alice Foley (alternate)
Call to Order:
Order of business:
A
discussion was held with the Board of Selectmen and the following Policy was
presented by the FinCom to the Board of Selectmen:
During
last year’s Town meeting and subsequent vote to approve the Prop 2 ˝ override
we received a mandate from the voters to get our financial house in order. Certainly, we have been able to control some
of our major expense hurdles, we no longer have to support the cost of the
Manor, Schools have provided a major reduction in cost
as part of their overall reorganization.
But,
the realities are still a challenge. Consider this:
1.
Prop 2 ˝ barely covers the increase
in the consumer price index (2.5% in 2006).
2.
Health Insurance costs and energy
costs are still beyond our direct control and are likely to remain so for the
next 2 years. Gov. Patrick would like to have Municipalities join the State’s
GIC pool which is roughly about 60% of the cost of our current county
purchasing plan.
3.
In the commonwealth, 310 of the 350
towns have passed at least one override since the inception of the legislation,
Some 1,400 override votes have been placed on the ballot since prop 2 ˝ became
law. Many Towns use the override process
to raise the levy limit to allow for growth potential and do not directly spend
the increased capacity. Gov. Patrick intends to increase aid to Cities and
Towns and has supported the concept of the MMA’s
40/10 plan. During the next budget cycle
the state faces a $1.2 Billion shortfall but the Governor assured us at MMA
that he will not cut aid to towns in order to balance the States finances.
FinCom believes the time is right for us to do a systemic review of our entire financial management plan to insure 1.) We are providing the most equitable plans for all our citizens; 2.) We are providing property owners with just the right amount of services; 3.) We are progressive in the way we provide citizen services in our various Town Offices and in the care of our Town Assets and; 4.) We are providing a safety net for the elderly and infirm to insure their continued presence in our community..
FinCom believes this is a process
which must be done jointly with the Board of Selectmen and other interested
participants and that it may well take the better part of a year to accomplish
this review. Toward this longer term goal there are some things which we can do
now to improve our financial picture and signal to the voters an honest desire
to meet the problems head-on and plan for the future on their behalf.
FinCom would like to propose three policy requests submitted from the Finance Committee be considered by the Board of Selectmen for enactment during the upcoming Fiscal Year:
1.
That the Reserve account be funded
at a level of .195% (~$35K) of the 2008 Total Budget and be increased to .25%
of the Total Budget in FY2009. Its uses shall be limited to funding those
unforeseen expenses which cannot wait till the next budget cycle. Reserve Funds
remaining at the end of the Fiscal Year are to be placed in the Stabilization
account regardless of the balance of the account at the time.
2.
That the
Stabilization account be funded with an appropriation equal to .5% (~$90K) of the general fund
in the first year then increased to 1.% (~$180K) of the total budget until the balance in the
fund equals 1.95% (~$350K) of the total
budget and that the uses for the fund be limited to capital projects not
eligible for Debt Exclusion or to reduce
the levy below the levy limit as calculated for that Fiscal Year. Request to
use funds from the stabilization account must be approved in advance by both
the Board of Selectmen and the Town Finance Committee.
3.
That 50%
of ‘Free Cash’ be applied to the Stabilization account regardless of the
balance in the stabilization account at the time.
These
three policies will require some belt tightening to succeed but will provide
both a real hedge against future Prop 2 ˝ override requests and will signal to
the Tax Payers that we are not depending on expense control alone to manage our
finances in light of the realities of Municipal Finance in the 21st century.
A
motion was made by the Board of Selectmen to approve the Policy statement and
carried with a vote of 3,0,0.
A
motion to adjourn FinCom was made by Ruth Gilbert and
the meeting adjourned at
Respectfully
Submitted;
Gary
Delius, Chairman
Approved
by FinCom on ____________________