FINCOM 20170208 Minutes

Source page 1

Town of Canton Finance Committee Minutes Voted on: 2/13/17 
Meeting Minutes Vote: 6-0-2 
Wednesday, February 8, 2017 
Members Present: 
Jerry Dorman, Nichola Gallagher, Dianne Gustafson, Stephanie Leach, Tim McKenna, Barbara Saint 
Andre and Cindy Thomas. 
Members Absent: 
Rob Barker and Cynthia Holcombe. 
Guests Present: 
Jim Murgia, Finance Director 
Ellen Jones, Finance Committee Secretary 
Opening: A meeting of the Canton Finance Committee was called to order by Chair Saint Andre at 
7:03 p.m. on Wednesday, February 8, 2017 in the Upper Meeting Room of the William Armando 
Recreation Center. 
A. Approval of Agenda 
Chair Saint Andre reviewed the items on the agenda — Revenue Forecast for FYI 8, Overall Budget 
Increase, Warrant Articles and ongoing review of FYI budgets. 
B. Announcements 
There were no announcements made at the meeting. 
C. New Business 
Revenue Forecast for FY18 and Consideration of Overall FY18 Budget Increase Targets (see 
meeting handout) Mr. Murgia reviewed the Revenue Forecasting Policy stating to the members that it was 
the goal of the Revenue Forecasting Committee to continue to develop revenue estimates that have a 
high probability of being met and that revenue amounts estimated for the ensuing fiscal year would be 
less than the actual revenues. If revenues were set too high, the impact would be felt in the fall of a given 
year when the tax rates are set. 
Ms. Saint Andre and Mr. Murgia reviewed for the members the revenue and budget scenario from last 
year's budget process as follows: 
• Last year the Revenue Forecasting Committee voted to set the unused levy capacity at zero. 
• The budgets originally requested were for a 6% increase. 
• Subsequently the Finance Committee agreed to not "tax to the max" by setting the unused levy 
capacity at $535,955 and provided to the School Committee and BOS available spending 
amounts to be used for budget increases. 
• The Finance Committee met and decided that a more reasonable budget increase for FYI was 
4%. 
• The School Committee and BOS agreed on a 5% budget increase as a compromise. The 
Finance Committee agreed with the 5% budget increase for FY17. 
Mr. Murgia explained to the Committee that for FYI there was a difference in how revenues were being 
allocated between the School Department and Municipal Departments as follows: 
• At last year's Town Meeting the School Department used $495,000 of free cash to supplement 
their FYI school budget for the free full day kindergarten program. Because of this the 
additional Ch. 70 state aid of approximately $560,000 for FYI would be allocated 100% to the 
School Department. Ch. 70 aid for FYI is estimated to be $5.3 million and for FYI to be $5.9 
million. 
• The approximately $80,000 increase to Unrestricted General Government Aid will be allocated 
100% to the Municipal Departments. 
FINCOM 20170208 MINUTES Page 1 of 4 2/9/17