Minutes - August 29, 2002
Finance Committee
Attending: Susan Brooks, Paul Giese, Mary Cancian, Al Schmerzler, Pat Phillips; absent on summer vacation: John Robinson, Robert Steinbrook. Also present: Tim Higgins, Town Administrator.
1) New numbers for the Funds Available Analysis (FAA) were reviewed and adjusted in order to arrive at a final Base Budget percentage for the budgeting agencies. Based on revised estimates of state and local resources, New Construction was reduced 1% and State Aid was reduced 4% from the FY 03 budget. Local Revenues were increased 2.8% from FY 03 estimates, assuming increases in cell tower revenues and proposed parking fees will offset decreases in licenses & permits and investment income (which is presumed to have bottomed out). This represents an increase of 3.5% (from 03 to 04) in Total Funds Available.
Reviewing Required Expenditures forecast for 2004, we discussed whether to reduce Reserve Fund from $450K to $350K, but decided this was not advisable at this time (although later in the budgeting process this decision will be reviewed again). The increase for Pensions and Insurance was reduced by $150K, based on new information. The Capital Plan line item was reduced to $400K (based on the expectation that both the originally slated $140K ambulance replacement and the standard $100K for road repairs would be deferred). Other Articles was reduced to $200K, an amount assumed sufficient to cover $140K in Ch. 90 funds and $50K in preventive building maintenance. This leaves a total increase for Required Expenditures of 11.5% over 2003, and an increase of 0.3% in Total Funds for Discretionary Spending.
It was agreed that the guideline to the budgeting boards would request Base Budgets of 0% increase over 2003.
Action Item: Revise and distribute up-dated Budget Guideline; Who: Susan and Paul; When: ASAP.
2) The Sept.12th meeting is seen as an opportunity to explain the Budget Guideline (including base budget's permissible growth rate of 0%) and Calendar to representatives of all budgeting agencies. It was suggested that the Model be used to present the Revenue table, the FAA table (showing the derivation of the 0% guideline) and the FreeCash Summary chart (highlighting the potential override). Also that the 3.5% Revenue increase amount be compared to the increased Required Expenditure amounts (particularly Pensions & Insurance) to demonstrate why there is no increase in the Base budget. We agreed that this year, 3 year budget projections would be extrapolated by the FinCom in order to permit budgeting agencies to concentrate on FY 04 challenges.
Action Item: Prepare Model, Budget Calendar, presentation for Sept 12 meeting;Who: Paul and Susan; When: by Sept. 12.
Action Item: Submit Meeting Notice to LJ; Who: Susan and/or Paul; When: by Monday.
Action Item: Confirm receipt of Budget Guideline, attendance at meeting; Who: ALL liaisons; When: ASAP.
3) Tim reported on the probable inclusion of Bemis Hall renovations as permissible CPA expenditures and that the Selects are, therefore, contemplating rescinding the Debt Exclusion for Bemis if CPA is confirmed on the November ballot and using CPA funds instead. The Committee inquired if the Selects had considered retaining the debt exclusion for funding the Bemis renovations in order to advance affordable housing initiatives through CPA as originally proposed at last March's TM.
Action Item: Forward above inquiry to Selects; Who: Al to circulate initial draft to full committee for review; final revision from Susan and Paul to Tim; When: by Sept. 12th.
4) Pat reported that the K-8 Task Force (TF) was having trouble getting information back from their questionnaires in time to be used for the budgeting process this year. More likely, TF report by or before March 03 TM, i.e., in time for the FY 05 budgeting process. The Committee felt this was pretty much to be expected and better well done than hastily. TF reporting dates should not affect this year's Budget Calendar.
5) Tim reported that an additional $8K of state funding for Minuteman Vo-Tech was approved for FY 03. The addition is from state sources and has no impact on the town budget, but SelectBoard and Finance Committee of each member town must approve in writing before Minuteman can access the funds. The Committee voted their approval 4 to 1. Mary voted No on the grounds that Minuteman had not been a team player with the town in prior years' budgeting efforts and didn't deserve the town's support.
Action Item: Letter to Superintendent Fitzgerald, confirming vote; Who: Susan and Paul; When: ASAP.
6) A proposed Budget Calendar for FY 04 was reviewed, with attention drawn to the possible impact of the Selectboard's State of the Town initiative, the K-8 TF Report, and the timing of both K-8 and the LS budgets. December 5th and January 16th (7 to 10 p.m.) were targeted as the 2 big budget roundtable meetings, the former to present base budget and starting positions on the OR budget and the latter to finalize both budgets. The Committee scheduled its regular meetings for the 2nd and 4th Thursday of the month.
Action Item: Finalize FY 04 Budget Calendar; post meetings; Who: Susan; When: by Sept. 12.
7) Liaison reports, with Action Items, as follows:
(a) K-8 Task Force (Pat): as above.
(b) FY 04 Communications Plan (Mary): Action Item: First LJ article to describe Budget Guidelines, including 0% base budget and ultimately an override budget, identifying supplemental services; Who: Mary to circulate draft to full committee, Paul and Susan to revise and submit final; When: by end of September.
(c) Town Finance Director Paul. Action Item: Prepare monitoring spreadsheets on Legal Expenses and Reserve Fund Transfers for easy reference; Who: Paul; When: before end of October.
(d) All other Liaisons. Action Item: scope and timing of reporting responsibilities; Who: All Liaisons; When: September 26
Action Item: Create [green paper?] FinCom Master, including Liaison assignments; Who: JR; When: by September 26.
The meeting was adjourned. The next meeting will be Thursday, Sept. 12th, 8-10PM in the Donaldson Room, with representatives of the budgeting agencies and the public invited.
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