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HomeMy WebLinkAbout2002-02-11 Finance Committee MinutesFinancial Forum F ' February 11, 2002 E1 VED CLERK 07 Parker Middle School Community Room r; L. 1 N G, MASS. CALL TO ORDER 1002 MAR -8 A 10., 13 Finance Committee Chair Richard McDonald called the meeting to order at 7:30 P.M. Present were Finance Committee members Catherine Martin, James Francis, Andrew Grimes, Mary Grimmer, Chuck Robinson, Randy Mason, Karen Epstein, and Robert LeLacheur. Board of Selectmen members present were George Hines, Rick Schubert, Gail Wood and Camille Anthony. School Committee members present were Chair Tim Twomey, Susan Cavicchi, Pete Dahl, William Griset, Jim Keigley, and John Russo. Library Board of Trustees present were Steve Conner and Rolanda McRae. Library Board members Kimberly Lynn, Diane Young, and Maria Silvaggi. Also present were Town Manager Peter Hechenbleikner, Superintendent of Schools Dr. Harutunian, Town Accountant Richard Foley, Finance Director Beth Klepeis, Police Chief Bob Silva, DPW Director Ted McIntire, and Reporter Nadine Wandzilak. The residents present were Gerry MacDonald, Carl McFadden, Linda Phillips, Bill Brown, Nancy Ortiz, and Thomas Ryan. Revenue Forecast for FY 2003: Richard Foley reviewed the revenue forecast for FY 2003. The projected 2003 intergovernmental revenue of $12,211,336 reflected the States budget. Expense Forecast for FY 2003: Peter Hechenbleikner reviewed the expense forecast for FY 2003. There is $393,665 over the FY 2002 budget. The School Dept. will share 2/3 of this for a total of $295,457 and the Town's 1/3 share is $98,208. Updates and Unknowns for FY 2003. Peter Hechenbleikner stated the Town will receive $3 million for the landfill closure and the town does not have the expense of closing it. A developer has a contract to purchase Spence Farm. The developer will use the land for affordable housing. The price for the 7 acres is $4.5 million. A developer proposing to build 53 single- family homes has purchased Longwood Poultry Farm. He is also proposing a comprehensive permit for 75 affordable housing units. He is trying to work on alternative zoning requirements with CPDC. The pavement management study recommended the Town spend $850,000 per year for road improvements. At the time of the study the state would donate $450,000. The reimbursement currently available is $155,000. Dr. Harutunian stated there is a proposed 4.8% increase in the school department's budget. He referred to the "cut list" on page 5 of the school budget with $1,249,000 reductions. They limited the amount of state and federal reimbursement in the budget. There are 70 new students expected next year. Financial Forum - February 11, 2002 - page 2 School Committee Chair Tim Twomey reported on the progress of the new school. The Town was successful at the Supreme Court level with the 10-taxpayer lawsuit. Then the neighbors filed a complaint with DEP. They expect a final decision within the next few days. The legal fees to defend the DEP law suite were $65,000. George Hines asked if the additional cost of drilling the ledge was in the initial budget. Mr. Twomey replied it was. A resident from precinct 5, Mr. Tucker, asked if there are alternatives to the new school. Mr. Twomey stated the Department of Education would not finance any more renovations to either the Eaton School or the Birchmeadow School. They could not increase the footprint to the Killiam School. The Barrows school was designed for 250,000 students and it has 450,000 students. There are four portables at the Barrows School and two at the Birchmeadow School that the DOE would like removed. Options to address shortfall: Richard Foley reviewed the changes to 'Tree Cash." Dick McDonald stated 'Free Cash' is not being regenerated and should not be used. Peter Hechenbliekner reviewed the budget amendments of $287,550 to the FY 2002 budget. He listed free cash as one of the sources to compensate for this, but stated in view of the state's budget reductions he has decided not to push for the use of this much free cash. He stated the FY 2003 budget must be adopted by July 1, 2002. The town's salaries are lower than surrounding communities and new growth is minimal. Karen Epstein requested input from the community regarding what they considered their priorities. George Hines stated in his 12 { years experience as selectmen, there are very little discretionary services. The best hope is the state wakes up and stops cutting our budget. He would consider an override, but thinks they should make the budget cuts and wait for a response from the community. Camille Anthony stated the citizens need to be better informed. The cuts to the fire department are past the muscle and into the bone. Dr. Harutunian stated in 1990 the budget was 18% dependent on the state, and now it is 25% dependent. He also stated the surrounding communities are paying higher salaries. He lost four teachers in the past three months to local communities. Jim Keigley stated they need to instill voter enthusiasm, because there isn't anything else that could be out. Resident Gerry MacDonald stated he would like to see a break down on the tax bill listing the amount given to the various departments, such as the water, fire, and police. Schedule for FY 2003 Budget: The Finance Committee will have their first budget meeting on February 27, 2002. Dr. Harutunian requested the Finance Committee submit their questions in advance. At 9:55 p.m. the Finance Committee, the School Committee and the Board of Selectmen adjourned. Respectfully submitted, i Recording Secretary