Idea Transcript
Finance Committee 350 Main Street Webster, MA 01570 Earl Gabor, Chairman Sarah Sansom, Vice Chairman Christine Jackel, Recording Secretary Nick Adamopoulos
Laura Backus Neil Dixon Michael Finamore Rick Neeser
MINUTES February 8, 2018
Present: Laura Backus, Nick Adamopoulos, Neil Dixon, Mike Finamore, Earl Gabor and Sarah Sanson Absent:
Rick Neeser
The meeting of the Finance Committee was called to order on Thursday, February 8 at 7:00 PM in the Board of Selectmen’s Meeting Room in the Town Hall by Chairman Earl Gabor. Minutes Motion was made by Neil Dixon and seconded by Nick Adamopoulos to approve the revised minutes of January 11, 2018. Vote was unanimous; motion carried. Vice Chairman Sansom said in the minutes it stated “The T/a presented a chart of accounts/descriptions which showed the amount originally appropriated, transfers and adjustments, revised budget numbers, encumbrances, available budget and % used.” She asked if it should just be called “YTD Budget Report" and Chairman Gabor said we would add that in parenthesis to monthly budget where documents are listed at the bottom of the minutes. Town Administrator’s Report Monthly Budget The T/A provided copies of the February 8, 2018 YTD Budget Report; no major changes were made and sent a summary of areas we had issues with. Chairman Gabor said all have received the e-mail sent by T/A that describes the deficits and surpluses and one counter balances the other so we are not in any particular extraordinary circumstances and T/A said they are where they should be. Vice Chairman Sansom asked about snow/ice. It shows we are $90,000 over budget as of now. The T/As response was that $70,000 of the $90,000 was for salt and will last the rest of the season. The T/A said some of free cash will cover the overrun.
Financial Calendar Chairman Gabor noted there were only two items on the calendar for January; property tax assessment is all set and net school spending for next school year. Have seen preliminaries and there will be some discussion with the Town and will be presented on February 28th with a proposed budget. Motor vehicle taxes were out on time. Follow Up Items from Last Month Financial policies to be discussed with the Board of Selectmen and Department Heads and presented in March. T/A said it is on the Board of Selectmen’s agenda for Monday and will be officially adopted in March. Mr. Finamore asked what the expenses would be in the new library for air conditioning and electricity and if a survey was done due to the size of the building. T/A estimated number based on square footage and said it will be a definite increase. T/A knows what kilowatts are used for other buildings. Mr. Finamore asked if possible to decrease hours during the week and open half day on Sunday. The T/A said that is an option but would be double time and would have to be negotiated and could survey the Town. He will check to see if there is interest for Sunday. There will be so many expenses for the new Library not anticipated, but after one year of occupancy, will know better on reaction of the Town and how the Library Committee will respond to the Town. Focus now is on getting the Library opened. Old Business Library Building Project Update Mr. Dixon said there was nothing new since the last meeting; next meeting is scheduled for Tuesday, February 13 at 5 PM. Mr. Dixon said there are more windows going in; 37/39 Negus torn down and graded. T/A has no further updates. Mr. Dixon shared a breakdown of 37/39 Negus Street budget. T/A said it was more expensive than expected with relocation, more than anticipated, hazardous materials more and tearing down the building. Mr. Dixon said hazmat was $60,000j; relocation $44,000; additional contingency $33,000, purchase $15,000 and construction cost $194,000. Chairman Gabor said the original plan with the wall was to get money back. The T/A said our attorney did an analysis and showed no breach of contract. The T/A will get estimates. Ms. Backus asked if the T/A received all actual fixed bids and he indicated he did. Water Treatment Plant Update The T/A said a second meeting was held on Tuesday. They are in the pre-construction phase, gathering permits from National Grid and are on track, nothing on site until early March. Construction trailer out and marking wetlands. They are looking at cost savings as final was higher than estimated, some items are piping to the pumping stations designed to go in the roadway but will be off to the side and savings there; changing copper downspouts from copper to aluminum, conduits installed in the 90s will see if these can still be used and looking to minimize expenses. The T/A said initially we could provide the chemicals, but has since been determined we can’t. Mr. Finamore stated wetland delineation shouldn’t begin until April or May; Chairman Gabor said they will take pictures of the ground before/after. Project timeline
notice to proceed was in January, contract called for 550 days until substantial completion, bringing it to early July 2019 and final completion late August 2019 (600-day final) Status of Draft Financial Policies As previously mentioned, the T/A said the Board of Selectmen will review the draft of the Financial Policies at their meeting on Monday, February 12. Approval of Town Audit Committee This was brought to the Board of Selectmen and they agreed the Audit Committee awould be a sub-committee of the Finance Committee and they appointed Randy Becker as their representative on the committee. T/A said the audit was expected the beginning of March. FY19 Preliminary Budget Update The T/A analyzed the revenue, took all requests and came to over $1m deficit; when some things cut, still have $.5m deficit. Some possible ways to cut might be in health insurance reform. T/A said the state increased local unrestricted aid 3-1/2%, but our portion of chapter 70 is only 2%. Chairman Gabor said they have been looking at other towns and possibly increasing fees. Looking at potential fees such as in other towns such as nail salons, food items and vending machines and should be inspected. The T/A said those who are using the services should be paying for them. Chairman Gabor said some more work needs to be done and will continue looking for ways to cut. Mr. Finamore asked about insurance on buildings that the Town owns, and wanted to be sure that we are only insuring just those that are our own. The T/A said they had reviewed this the year before he came and said those who are using the services are paying for them. FY19 Capital Update The T/A said they met and he has requested additional information. Ms. Backus offered to help with taking photos if needed. Chairman Gabor asked if we received feedback on three quotes. T/A said he will try to set up time next week. New Business Status of Accounting Department The T/A said he completed the initial round of interviews with potential candidates. Next week a panel consisting of two members of the Board of Selectmen, Chairman of the Finance Committee and the T/A will meet to interview the top two candidates. They both have excellent resumes and reputations. The Interim T/A is working two days/week; current staff is doing a good job, and the Interim Accountant is looking at things that could be handed off to the new person. The staff meet with the T/A every other Tuesday. The T/A said he would like the candidate for the Accountant position to start as soon as possible. Mr. Adamopoulos asked if the new Accountant would start in the new fiscal year. The T/A said no but noted there is a benefit of having an overlap with the Interim Accountant and new person hired. T/A looked at our debt and there are a couple of bonds older than 10 years; the T/A asked our financial
advisor to do an analysis if we re-finance, there could be a possible savings of $250,000. Projects in that re-funding would be school debt exclusion and water/sewer will bring down the rates but doesn’t help the general fund. Looking just to extend the rate, would use state bond rate as it is better. Chairman Gabor asked if Park Avenue settled and the T/A said no, looking for a resolution and not a lot of legal fees. SWCCC FY19 Budget Chairman Gabor said they met today. The SWCCC budget was amended in August at Town meeting. An additional grant was received in July. Local appropriation was 5.1% and 6% from amended to proposed budget; $100,000 less then original FY18 budget. The T/A said they have been negotiating with a lot of other towns, but nothing to report. Last year budget was $351,000 and this year $263,000. Chairman Gabor sent DLS website has good information and the T/A he will put a link to the DLS website. Mr. Finamore asked if we might be looking for a grant writer for the Town and T/A said he is doing that at the present time. Mr. Finamore said there are a lot out there available. Ms. Backus asked about getting an intern. T/A said they had an intern last summer. Mr. Finamore said we approached Nichols College, they would have a team work with the Town; they have done it with private businesses, could be worth looking into. State has a grant portal where all are listed; Chairman Gabor said he feels that using Nichols might be a good idea. T/A said Clark has an MPA Program. Next Meeting The next meeting of the Finance Committee will be held on Thursday, February 22, 2018 at 7:00 PM in the Board of Selectmen’s Meeting Room in the Town Hall to discuss the FY19 budget. Chairman Gabor said February 28 is the deadline for the Charter. Adjournment There being no further business, motion was made by Sarah Sansom and seconded by Nick Adamopoulos to adjourn at 7:45 PM. Respectfully submitted, Christine Jackel. Recording Secretary Documents Reviewed: Monthly Budget Financial Calendar Library Project Budget