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FINCOM 10-15-2008

Finance Committee · Source meeting date: 2008-10-15 · Record 31519

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Town of Canton Finance Committee
Meeting Minutes
Wednesday, October 15, 2008
Opening:
The regular meeting of the Canton FINCOM was called to order at 7:00 p.m. on October 15, 2008 in the Salah
Meeting Room of Town Hall by Dave Emhardt, Finance Committee Chairman.
Members Present:
Dave Emhardt, John Friel, Alan Hines, Pat Johnson, Adam Mazonson, Jim Sims and Diane Wolff.
Guests Present:
Paul Gargano, Town Accountant
James Murgia, Finance Director
Jim Powers, Powers and Sullivan
Ellen Arsenault Secretary, FINCOM
A. Approval of Agenda
A motion made by Pat Johnson to approve the agenda as presented was seconded by John Friel. Vote: 6-0-0.
Announcements
There were no new announcements.
B. Approval of Minutes
A motion made by Pat Johnson to approve the July 23, 2008 meeting minutes as written was seconded by
Diane Wolff. Vote: 4-0-3.
A motion made by Pat Johnson to approve the April 15, 2008 meeting minutes as written was seconded by
Diane Wolff. Vote: 5-0-2.
A motion made by Pat Johnson to approve the April 28, 2008 meeting minutes with a change as discussed was
seconded by Alan Hines. Vote: 6-0-1.
C. Old Business/Open Issues
None.
D. New Business
FY07 Management Letter
Jim Powers of Powers and Sullivan, the Town's financial auditors, presented to the Finance Committee the FY07
Management Letter, reviewed a breakdown of the parts of the basic financial statements for FY08 and summarized
the purpose of the CAFR (Comprehensive Annual Financial Report).
The issue of timeliness and reconciliation of Chapter 90 and PWED Grants has been corrected. A solid
reconciliation is in place and the Town Accountant has implemented monthly procedures. There was no solid
reconciliation in process with regard to the Planning Department's surety accounts. The auditor has stated that this
has been corrected in 2008.
Canton FINCOM Minutes ] 0/l i/08 Page I of 3 6/29/2009

Source page 2

The auditors found in 2005-2006 with regard to the processing of abatements by the Assessors that many
applications were not on correct forms and there was a lack of formality. The documentation for abatements in
2007 has been satisfactory according to the auditors. With regard to the Assessor's Overlay Reserve, the auditors
found that over the last few years, in particular 2007, there was $1.7 million in excess of all old outstanding
abatements. Mr. Powers stated that a policy could be established that the Town may or may not want to keep this
excess in the overlay reserve. Rating agencies look at the overlay reserve balance. The Assessors cannot be forced
to release this excess.
Planning Board Cash Surety Accounts
Jim Murgia sends asemi-annual memo to the Planning Board Chairman and Conservation Agent containing the
surety balances that the Town of Canton is holding for the Planning Board on behalf of developers. A FINCOM
member suggested that Jim Murgia send these memos to the Chairman of the Conservation Commission as well.
Funds are accessed and released only after the Planning Board or Conservation Commission makes a written request
to the Finance Director.
Ballot puestion Repealing the State Income Tax
The Finance Director presented to the FINCOM information with regard to the impact on Canton if Ballot Question
#1 were to pass in repealing the state income tax. The state could lose $12.5 billion. Canton's local aid cut could be
as much as 71.1 % or $2.3 million, which could lead to more overrides and less maintenance of roads and highways.
Posting of Legal Notices and Liens on Properties for Unpaid Taxes
The Finance Director explained the process for posting Legal Notices and Liens on properties for unpaid taxes.
Demand notices are sent in May with a 15-day deadline to pay outstanding taxes. In July letters are sent out to
delinquent taxpayers with an August 19`~ deadline date. Approximately 150 letters were sent out in July 2008. State
law requires the Town to publish in a local newspaper the names of those outstanding taxpayers in order for the
Town to proceed with any takings. This occurs the first week of September. The town sends additional letters to
delinquent taxpayers with a copy of the newspaper legal notice giving the taxpayer another opportunity to pay any
outstanding taxes. Legal notice is also posted at Town Hall and Library. Tax taking instruments are prepared to
secure the Town's rights on the assets of the properties. The takings are then recorded at the Registry of Deeds.
Town Financial Reports/Delivery of Reports to the FINCOM
The Finance Committee agreed to take a vote on a quarterly basis for the release of unaudited financial reports
created by the Finance Department. These reports would be released to Jim Sims. A motion was made by John
Friel and seconded by Pat Johnson that the Town through the Finance Department would provide unaudited
quarterly reports to the Finance Committee through Jim Sims. Vote 7-0-0. Jim Sims will be attending in the
near future a meeting at the Mass Municipal Association's annual meeting with regard to public records availability.
2009 ATM Draft Timeline
An annual town meeting 2009 draft timeline previously received by members via email was discussed. The March
12 deadline gives the Board of Selectmen the time to include their recommendations in the printed warrant. By
March l 3 the FINCOM must provide information to the town counsel in order for him to write legal motions for the
warrant. Votes must be taken by March 13`x'.
Analysis for Budgets Beyond Three Years
A F[NCOM member suggested that the BOS or School Committee meet with the FINCOM in a future meeting to
set direction, address long-term budget plans and to address long-term plans with regard to steps and lanes. The
Finance Director will make available to FINCOM members a spreadsheet for their use to analyze out years through
projections. The revenue committee will meet in the future once the state releases budget figures, which could be
sometime in January.
Association of Town Finance Committee Meeting -November 1 2008
The FINCOM Chairman and Finance Director are scheduled to attend this meeting. Any members who would like
to attend must register by October 22, 2008.
FINCOM Warrant Discussions
Canton FINCOM Minutes 10/1 i/08 Page 2 of 3 6/29/2009