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December 12, 2018, Finance Committee and Capital Planning Committee Meeting. Minutes
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Meeting of the Canton Finance Committee Minutes Voted on: 10/17/19
Meeting Minutes vote: 7-0-1
Wednesday, December 12, 2018
Finance Committee Members Present:
Christos Arsoniadis, Rob Barker, Dan Cole, Cynthia Holcombe, Emilio Mauro, Tim McKenna, Barbara Saint Andre,
Cindy Thomas and Wai Wong.
Finance Committee Members Absent: All members were present at the meeting.
G uests Present:
David Clough, Member, Capital Planning Committee
Dave Emhardt, Chair, Capital Planning Committee
James Murgia, Finance Director
Ellen Jones, Finance Committee Secretary
Opening: A meeting of the Canton Finance Committee was called to order by Chairman Barker at 6:05 p.m. on
Wednesday, December 12, 2018, in the Cafeteria of the Canton High School.
A. Approval of Agenda
Chairman Barker reviewed the items on the agenda which included a discussion regarding the Special Town
Meeting for the Metropolis Rinl<.
B. Announcements
There were no announcements at the meeting.
C. New Business
Special Town Meeting -Article 2 —Metropolis Rink Appropriation —Substitute Motion - $10.5 million
Chairman Barker provided background information recently received about the rink appropriation including
release of funds by the Board of Assessors from the Overlay Surplus and funds the Town applied for through the
Federal Emergency Management Agency (FEMA).
M r. Murgia joined the Finance Committee meeting at approximately 6:19 p.m. Mr. Murgia referred to the No Debt
Exclusion Needed substitute motion for Article 2 and provided the following summary for the funding of the
Metropolis Rink.
Project cost per architect's latest estimate $10,034,739
Additional contingency 315,261
Zamboni to be purchased through project costs 150,000
Total cost of Rink project X10,500,000
I nsurance proceeds on hand $2,567,000
M unicipal Buildings Insurance 450,000
Overlay surplus 1,500,000
Borrowing prior to receiving additional insurance proceeds 2,000,000
Subtotal: $8,517,000
Borrowing to be repaid from a debt exclusion or state grant 1,983,000
Total sources of funds $10,500,000
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On December 12, 2018 the Board of Assessors provided a letter to the Finance Director and the Town
Accountant that the Board of Assessors voted at their meeting on December 11, 2018 to transfer
$1,500,000 from the Overlay Account to the Reserve Fund Overlay Surplus Account.
The Town received a letter from the Executive Office of Energy and Environmental Affairs (EOEEA) which
stated that the Commonwealth of Massachusetts would grant to the Town of Canton $2,000,000 towards
the reconstruction of the rink. Funds through this grant would be released to the Town after the Town
has submitted for reimbursement. Town Meeting would have to appropriate the borrowing for the
$2,000,000 but would be repaid from the proceeds of the EOEEA state grant.
M r. Murgia explained that the Municipal Buildings Insurance Fund has been in existence for 30 years. The
fund was set up to cover losses suffered by the Town that were not covered by insurance. The fund has
earned approximately $150,000 in interest. Town Counsel and the Town's outside auditors have stated
that the reconstruction of the rink is within the purpose of the Municipal Buildings Insurance Fund. If the
Town agrees to proceed with the renovation of the rink the state Department of Conservation and
Recreation has agreed to extend the Town's lease to 2051. If the lease is not extended one of the Finance
Committee members does not believe the Town should proceed with the project.
• The cost of the project increased to $10.5 million because the Board of Selectmen wanted the cost of a
new Zamboni to be paid for within the cost of the project.
• At prior meeting the Finance Committee voted $7.8 million for the project which included adding
$300,000 for contingency costs associated with architectural fees.
• If the project proceeds the Town could receive an additional $2,000,000 in future insurance proceeds.
Members of the Board of Selectmen joined the Finance Committee and the Capital Planning Committee members
at approximately 6:29 p.m. to discuss financing options and a final appropriation number. The Board of Selectmen
voted 4-0 to support the new $10.5 million substitute motion.
Ms. Thomas inquired if the rink revenues could support paying for the debt.
• Mr. Murgia stated that over a 5-year period the rink averaged $450,000 of revenue and that the revenues
could support a bond payment.
• In response to a further inquiry as to the use of prior rink revenues, Mr. Murgia stated that it was used for
rink expenses.
• Mr. Murgia stated that he would be comfortable that debt could be paid out of the rink revenues over 30
years.
• The Town would not be able to borrow beyond the term of the lease.
M r. Porter stated that Mr. Nectow, the School Business Administrator, could save approximately $25,000 per year
if the high school hockey team were back on home ice versus renting ice time from a private rink vendor. The
Board of Selectmen voted 4-0 to support the $10.5 million substitute motion.
The Town had applied for FEMA reimbursement six weeks prior to the Special Town Meeting.
M r. Matt Dimock (Co-Owner of the Ice House skating rink in Canton) was in attendance at the Finance Committee
meeting. His concern was about the last minute information released prior to the Special Town Meeting. He was
also concerned that voters would not have enough time to make their decision.
A motion made by Ms. Saint Andre to support the substitute motion for Article 2 for an appropriation of
$10,500,000 for the Metropolis Rink was seconded by Ms. Thomas. Vote: 9-0-0. If the substitute motion
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passed at the Special Town Meeting there would not be a need for a Special Election for a debt exclusion
override. Chairman Barker would make the substitute motion on the floor of the Special Town Meeting.
D. Other Business/Open Issues
There was no discussion regarding other business or open issues.
E. Approval of Minutes
There were no minutes approved at the meeting.
Next Meeting Date:
There was no discussion of a date for the next Finance Committee meeting.
Adjournment: A motion made by Ms. Thomas to adjourn the meeting at 6:41 p.m. was seconded by
M r. McKenna. Vote: 9-0-0.
Minutes reviewed by: Christos Arsoniadis
Res ctfully submitted,
` ., -s.
~—
Tim Mc enna
Chairman, Canton Finance Committee
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Canton Finance Committee Meeting
Wednesday, December 12, 2018
Meeting Documents
Please note: Some meeting documents may be found on the Town's website under the Posted Minutes section
(Laser Fiche).
Agenda for December 12, 2018. (1 page).
Recommendations of the Finance Committee to the Voters of Canton, Massachusetts —Special Town Meeting,
Wednesday, December 12, 2018(8 pages).
Funding of the Metropolis Rink Project (provided by Mr. Murgia, Finance Director (1 page).
No Debt Exclusion Needed —Article 2 —Substitute Motion - $10,500,000(1 page).
Letter from Executive Office of Energy and Environmental Affairs (EOEEA) dated December 10, 2018 regarding
$2,000,000 grant to the Town of Canton (2 pages).
Letter from Board of Assessors to the Finance Director and Town Accountant dated December 12, 2018 regarding
the release of $1,500,000 from the Overlay Account to the Reserve Fund Overlay Surplus Account(1 page).
$2,000,000 Million Borrowed for Rink Over 30 Years(debt exclusion) provided by Mr. Murgia, Finance Director,
d ated December 11, 2018 (1 page).
Rink Project as a Debt Exclusion, provide by Mr. Murgia, Finance Director, dated December 12, 2018(1 page).
Division of Local Services, Technical Assistance Section, Department of Revenue —Information regarding Overrides
and Exclusions (4 pages).
Bargmann, Hendrie Archetype, Inc. —Information regarding the Metropolis Rink Renovation &Restoration —
Estimate of Probable Construction Cost $10,034,739 dated December 8, 2018(23 pages).
Graph -Tax Impact from Debt Exclusions (based on home assessed for $490,000)(based on $1,983,000 debt
exclusion borrowing), provided by Mr. Murgia, Finance Director (1 page).
Graph -Fiscal 2019 Residential Tax Rates, provided by Mr. Murgia, Finance Director (1 page).
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