Canton, Massachusetts · Saved source text
December 12, 2016, Finance Committee Meeting. Minutes
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Town of Canton Finance Committee Ivt~nutes voted on: t/2s/1~
Meeting Minutes vote: 5-0-2
Monday, December 12, 2016
Members Present:
Gerald Dorfman, Nichols Gallagher, Dianne Gustafson, Cynthia Holcombe, Tim McKenna, Barbara Saint
Andre and Cindy Thomas.
Members Absent:
Rob Barker and Stephanie Leach.
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
7:02 p.m. on Monday, December 12, 2016 in the Salah Meeting Room of Town Hall.
A. Approval of Agenda
Chair Saint Andre reviewed the items on the agenda. It was discussed that for future meeting agendas it
was unnecessary to state the end time on the meeting posting.
B. Announcements
Chair Saint Andre announced that the Massachusetts Municipal Association Annual Meeting and Trade
Show would be taking place on January 20 and 21 and that any Finance Committee members interested
in attending should notify Ellen via email.
C. New Business
Vote —Finance Committee By-Law Changes to submit as an Article to ATM 2017 (see meeting
handout) The Committee discussed changes to the Finance Committee by-law as follows:
• Section 3: The latest version of the By-Law contained language that "if any member is absent
from eight consecutive meetings . . .his position shall be deemed to be vacant . . .". The prior
draft version had contained "five consecutive meetings".
• Section 8: The latest version was updated to read, "and for the ensuing fiscal year, detailed
estimates of the amounts necessary for the proper maintenance and administration of the
departments shall be submitted on or before the third Friday in January" instead of "Monday in
January".
• The Committee discussed that it would be the continued practice of the Committee that members
appointed to the Committee to serve a remaining partial term would be allowed to serve nine
years (three three-year terms) thereafter.
I n response to Ms. Gustafson's question as to the justification of changing the composition of the
Committee from 12 members to 9 members, Chair Saint Andre responded with the following
comments:
• Having an odd number of members of nine instead of an even number of members of 12
would prove useful for avoiding tie votes similar to the tie votes that the Committee incurred
d uring the voting of ATM articles last year.
• Chair Saint Andre looked at the composition of several other town finance committees and
nine was a popular number for the composition of the Committee.
Mr. McKenna and Ms. Holcombe spoke in support of anine-member composition for the Committee.
(Currently the Finance Committee is at a composition of nine members with Sepp Bergschneider recently
having tendered his resignation effective immediately.)
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A motion made by Ms. Gallagher to approve the Finance Committee By-Law changes as written in
the version dated 12/12/16 and to submit these by-law changes as an ATM2017 article was
seconded by Ms. Gustafson. Vote: 7-0-0.
Chair Saint Andre stated that she would send the final version to Mr. Aspinwall, Town Administrator, for
inclusion as a Town Meeting warrant article.
Estimated Cash Reserve Balances as of 7/1/16 (see meeting handout) Mr. Murgia explained to the
Committee that because the bond rating agencies look at the Town's audited financial statements when
considering cash reserves, he added two columns to the spreadsheet to reflect Audited General
Reserves and the % of Expenses. This number reflects any potential abatements. Mr. Murgia stated that
since the Finance Committee's last meeting in November one of the two pending abatement cases with
Verizon had been resolved. The courts ruled in favor of cities and towns by stating that the use of the
commercial tax rate being used by the City of Boston to charge Verizon for personal property taxes was
deemed appropriate. The other pending abatement case may be resolved in March.
M r. Murgia stated that the cash reserves audited balance as of 7/1/16 was $12.9 million or 14.9% of
expenses.
FY17 Tax Rates - $961,686 Excess Levv Capacity (see meeting handout) Mr. Murgia provided a
summary as follows:
• Tax bills would be sent out at the end of December.
• New Growth for real estate and personal property per the tax recap were both higher than
budgeted by an approximately $800,000 variance.
• The overlay provision is higher than budgeted by $486,566.
• The excess levy capacity for FY17 is $961,686. The Town would not be taxing to the maximum
amount allowable.
• Debt exclusions was slightly higher than budgeted for by $16,022 due to the override exclusions
through the years, such as the Hansen addition.
• Canton was the 87`h community of all of Massachusetts cities and towns to have had its tax rate
approved by the Department of Revenue.
FY18 Finance Committee Budget Request(#131)(see meeting handout)
A motion made by Ms. Gustafson to recommend an FY18 budget request of $11,500 for the
Finance Committee budget(#131)was seconded by Ms. Gallagher. Vote: 7-0-0.
FY18 Reserve Fund Request(#132)(see meeting handout) Mr. Murgia spoke in favor of not increasing
the Reserve Fund budget of $500,000 and that last year there was approximately $200,000 to $300,000
that went unused.
A motion made by Ms. Gallagher to recommend an FY18 budget request of $500,000 for the
Reserve Fund budget(#131) was seconded by Mr. McKenna. Vote: 7-0-0.
D. Other Business/Open Issues
Liaison Assignments (see meeting handout) Because Sepp Bergschneider resigned from the Finance
Committee effectively immediately it was necessary to fill Finance Committee liaison assignments
previously held by Mr. Bergschneider. The following assignments were determined:
• Police Department/Animal Control —Nichols Gallagher and Jerry DorFinan
• Building Department/Zoning Board —Barbara Saint Andre
• Community Preservation Committee —Cindy Thomas
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E. Approval of Minutes
A motion made by Mr. McKenna to approve the minutes as written for November 2, 2016 was
seconded by Mr. Dorfman. Vote: 5-0-2. Ms. Gustafson and Ms. Gallagher abstained.
A motion made by Mr. McKenna to approve the minutes as written for November 15, 2016 was
seconded by Ms. Thomas. Vote: 5-0-2. Ms. Holcombe and Ms. Gallagher abstained.
F. Next Meeting Date: The next meeting would take place on Wednesday, January 25~h at 7:00
p.m. in the Salah Meeting Room of Town Hall.
The Revenue Forecasting Committee would be meeting on Thursday, January 26`h at 9:00 a.m. in the
Salah Meeting Room of Town Hall.
In response to Ms. Gustafson's inquiry about the capital planning process, Mr. Murgia stated that
Department Managers would be presenting their capital requests at the next BOS meeting and that the
BOS was scheduled to take positions on the capital requests at their meeting on December 20`h. Usually
6% is set aside for capital requests, never below 5%. In response to Ms. Gustafson's inquiry about when
it is determined as to extra cash available for capital spending, Mr. Murgia responded that because the
capital process is started so early before the revenue estimates are established, it is difficult to determine
any extra cash available. Mr. Murgia suggested that free cash could be considered for capital requests.
Adjournment: A motion made by Ms. Gallagher to adjourn the meeting at 7:46 p.m. was seconded
by Mr. McKenna. Vote: 7-0-0.
Minutes reviewed by: Jerry DorFinan
Respectfully submitted,
J
Bar ra Saint Andre
Ch ir, Canton Finance Committee
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Town of Canton
Finance Committee Meeting —Monday, December 12, 2016
List of Meeting Handouts
Please note: These meeting handouts may also be found on the T'own's website under the Posted
Minutes section (Laser Fiche).
Agenda (1 page).
Finance Committee ~y-Law Changes to submif to Town Meeting 2017(3 pages).
Cash Reserve Balances, provided by Jim Murgia, dated 11/16/16 (1 page).
lax Recap Comparison, provided by Jim Murgia, dated 12/6/16 (1 page).
FY18 Finance Committee Budget Request, dated 11/4/16 (1 page).
FY18 Reserve Fund Budget Request, dated 11/4/16 (1 page).
Finance Committee Liaison List (1 page).
201 Mass Municipal Association Annual Meeting &Trade Show (1 page).
Draft of Finance Committee Minutes for November 2, 2016 (4 pages).
Draft of Finance Committee Minutes for November 15, 2016 (1 page).
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