Town of Becket Finance Committee
June 5, 2008 Minutes
Present: Mike Falk, Ann Spadafora, Jeremy Dunn, Steve LaBell
Absent: Amy Fyden
Also Present: Richard Furlong
The meeting was called to order at 7:10pm.
1. Approval of 5/1/08 minutes, with some corrections.
2. Transfers from Reserve Fund – None
3. Transfers from other accounts (already approved by Select Board)
a. $4000 from Transfer Station -> Volunteer Fire Stipend. This is to reinstate funds originally in the Fire Stipend budget that were transferred out earlier in the year, based on incorrect information that the funds were not required. Approved.
b. $3575.97 from Transfer Station -> Health Insurance. Health insurance was under budgeted for the 2009 FY increase. This is for the July 2008 payment. Approved
c. $4678.69 from Vocational Tuition -> Vocational Transportation. There is ~$20k extra in Voc. Tuition, due to some students dropping out or moving. Approved
4. Audit update. Auditors will be on-site June 15 & 16.
5. Town Accountant update. Richard is still working on this issue.
6. Issues with FY2009 budget.
Despite our belief that the budget was balanced, a number of items have recently come to light that may cause the budget not to be balanced:
a. Assessor’s overlay. In the past, the Warrant budgeted the Assessor’s overlay in the $40-50k range. Actual overlay amounts in recent years have been ~$120k.
A large part (~$100-110k) of the $120k historical overlay is due to pending litigation between telecommunication companies (Verizon) and the state. Verizon lost in the lower courts but is expected to appeal. Therefore all taxes collected on utility poles, substations, etc. are being held in the overlay account escrow in case the court finds in Verizon’s favor at some point in the future.
In past years, the difference between the budgeted overlay amount and the actual overlay allocation was made up for with increased state reimbursements, new growth, and increased local receipts. However given the economic downturn, it is expected that these factors may not yield amounts in FY2009 sufficient to address the overlay. Hence an expected shortfall in the overlay account.
TASK: In future years’ budget process, Richard will insist the Assessor’s office provide an accurate overlay budget at the same time as their other budget items.
TASK: Towards the middle of FY2009 (Dec/Jan) once free cash has been certified and the cherry sheet finalized, we may need to substantially adjust some budgets to make up any shortfall.
TASK: Richard to speak with DOR to find out what happens if the Overlay account is overrun
TASK: Richard to speak with Accountant re free cash certification
b. Additional Vocational Transportation. The bids came in much higher than expected. $14,000 shortfall in budget
c. Vocational Tuition. One student was not accepted, so the budget is ok.
d. Fire Truck. $10k was missed in budget process. This was a match required in the Grant received.
7. Bonnie Rigg Hill Rd / Algerie Rd STRAP grant
We have not yet received this grant, but it is expected. The amount requested will be changed from $350k to $500k. This is usually a 70% grant and 30% loan payable over 10 years, at 0% interest. The loan doesn’t require repayment until 2-3 years after the project is completed. Therefore it will hit the FY2011 budget at the soonest. The existing STRAP grant will be paid in FY2014, so there will only be 2-3 years of overlap. Payments for $500k grant will approximate 15k/year.
8. New Highway Truck
$130k was budgeted, but the cost may be $149-150k. The shortfall will be covered with leftover money from FY2008 (or) Chap 90 funds.
9. Police Cruiser. This will probably come in slightly lower than the budgeted amount in FY2009. Also $4000 could be saved if a Ford rather than Chevrolet is selected.
10. Election of Officers. Unanimously approved: Mike Falk – Chair; Ann Spadafora – Vice Chair; Jeremy Dunn – Clerk
11. Update on Bridge repairs
a. Brooker Hill Rd – closed for rebuilding. $189,000 FEMA grant. Work is progressing.
b. Yokun Pond Rd. – funds approved for FY2009 repair; Replacement probably in Fall 2008 to minimize impact on summer residents and businesses
c. McNerney Rd – Mass Highway/state will pay. Going out at bid @ ~$800k. Work may be completed as soon as Fall 2009
There was no public input.
Note: Jeremy will be absent for the August & September meetings. Ann Spadafora will handle the minutes.
Meeting was adjourned at 8:15 pm.
Respectfully submitted,
Jeremy Dunn
Clerk
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