Canton, Massachusetts · Saved source text

March 26, 2015, Finance Committee Meeting. Minutes

Finance Committee · Record date 2015-03-26 · Record 629c19c0f86ce41baf

Saved text from 5 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.

Town of Canton Finance Committee                    Minutes Voted on: 4/2/15
                                              Meeting Minutes                            Vote: 10-0-1
                                         Thursday, March 26, 2015

Members Present:
Rob Barker, Sepp Bergschneider, Jim Casamento, Nichola Gallagher, Dianne Gustafson, Tim McKenna,
Mark Porter, Barbara Saint Andre and Jim Sims.

Members Absent:
Jerry Dorfman, Stephanie Leach and Diane Wolff.

Guests Present:
Lisa Dickinson, Senior Vice President, UniBank Fiscal Advisory Services, Inc.
Kimberly Mooers, Vice President, UniBank Fiscal Advisory Services, Inc.
Brianne Susel, Fiscal Advisory Officer, UniBank Fiscal Advisory Services, Inc.
Jim Murgia, Finance Director
Ellen Jones, Finance Committee Secretary

Opening:
A meeting of the Canton Finance Committee was called to order at 7:04 p.m. on Thursday, March 26,
2015 in the Salah Meeting Room of Town Hall.

A.     Approval of Agenda
Chairman Porter reviewed the items on the agenda.

B.        Announcements
Chairman Porter asked the attendees from UniBank if they could delay their presentation to allow Sal
Salvatori of the Board of Selectmen to join the Finance Committee meeting for the discussion on the DIF
(District Improvement Financing).

C.       New Business

Follow up information Regarding Full Day Kindergarten/Enrollment — Mr. Sims shared with the
Committee student enrollment information that he had recently received. The enrollment information
indicated a total enrollment of 2,889 for the school year 2000-2001 and a total enrollment of 3,396 (3,337
plus 59 out of district) as of 12/1/14.

Follow up Discussion — Article 19 — Recommendations of the Community Preservation Committee
A few members remain concerned about the applications from private entities for CPA funds, such as the
Historical Society, First Unitarian Church and the Canton Housing Authority (CHA).

With regard to the CHA application for additional funds of $100,000 for electrical and smoke alarm
replacement, Mr. Sims interpreted that the CPA funds cannot be used for maintenance.

Chairman Porter stated that it was up to the Town's attorneys to make this determination for the use of
the CPA funds. Last year it had been determined by the Town Counsel that the motion for the $93,000
requested by the CHA for electrical and smoke alarm work was within the scope of the CPA.

Ms. Gustafson reminded the members that many historical projects (items/buildings etc.) are owned by
private entities.

Presentation by UniBank Fiscal Advisory Services of District Improvement Financing (DIF)

The purpose of UniBank's presentation to the Finance Committee was to give a very general overview of
the DIF program. Chairman Porter asked that members reserve any specific questions related to
Canton's DIF for the Monday, March 30th meeting with the Board of Selectmen.



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Ms. Dickinson introduced herself as well as Kim Mooers, who joined UniBank in September 2014 from
 Mass Development and Brianne Susel who predominantly works on borrowing costs. Ms. Dickinson has
 had experience with DIFs in that they worked with Worcester for its Phase 1 of borrowing in 2006 and is
 now working with them again on Phase 2 of the borrowing in 2015.

 Ms. Moores stated that DIFs were passed by the Legislature in 2003 and amended in 2011 and 2012.

 Some of the highlights of the presentation (see meeting handouts) included, but were not limited to, the
 following items:
      • The Town sets a DIF district with a baseline for assessed value for setting revenues.
      • Property taxes generated from the new district (new growth) are used to fund the public
         infrastructure.
      • The State does not need to give formal approval for these bonds.
      • General Obligation Bonds (GOBs) are the usual method for borrowing, drawing on the excellent
         AAA credit rating of the Town for lower interest rates.
      • Borrowing is not usually done through Revenue Bonds because this weakens the stream of
         income and the interest rates are usually higher for these types of bonds.
      • Principal payments are delayed up to 5 years.
      • Capitalized interest is allowed but is not usually preferred because the Town would end up paying
         interest on interest.
      • Rather than draining the general revenue stream, borrowing is paid for from the new revenue
         stream generated by the new development.
      • Letter of Credits are usually through financial institutions. Banks typically look at 5 year strength
         or 7 years at the most. Ms. Gustafson asked for further clarity on the Letter of Credit.
      • District approval has 2 parts: setting the baseline assessments and development a financing
         plan. Town Meeting voters would be asked to approve a DIF with a 2/3 vote at ATM.
      • The Development Agreement needs to address both pre-completion and completion trigger
         points.
      • Although the borrowing would be included in the financial statements of the Town with regards to
         debt reporting, the borrowing is not included in the municipality's debt ceiling limits.

This concluded the presentation by UniBank.


Vote Article 9 Motion 1 — Adjust Fiscal '15 Accounts — Transfer $2,000 from Capital Planning
Committee (CPC) to the Historical Commission Budget

A motion made by Barbara Saint Andre that the sum of $2,000 be appropriated to the Historical
Commission Budget (Dept. #691) by transfer from the Capital Planning Committee Budget (Dept.
#182) was seconded by Sepp Bergschneider.

In his effort at being transparent, Mr. Murgia explained to the Committee that Motion 1 was for a $2,000
transfer from CPC to the Historical Commission which had been voted on by CPC. Further, this transfer
was necessary to cover the costs incurred by the Historical Commission for a consultant that had been
hired to review the CPA application for two projects at the Canton Corner Cemetery (Receiving Tomb and
Retaining Wall).

Mr. Sims spoke in opposition of Mr. Murgia having lumped a group of smaller-size miscellaneous budgets
together. These two budgets were within this miscellaneous budget grouping.

Article 9 Motion 1 Vote: 8-1-0. Mr. Sims voted in opposition to Article 9 Motion 1.


Vote Article 9 Motion 2 — Adjust Fiscal '15 Accounts — Transfer for $900,000 from Free Cash to
Snow & Ice

A motion made by Rob Barker that the sum of $900,000 be appropriated to the Snow and Ice
Budget (Dept. #423) by transfer from Free Cash was seconded by Barbara Saint Andre.
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Mr. Murgia referred to a Snow and Ice update report provided by the Department of Public Works (see
meeting handout). Some of his highlights included the following:

     •   A $160,000 FEMA claim for the February Storm Juno had already been factored into the update.
     •   The cost of shoveling off roofs has been included. This would be the first time that this type of
         expense would be eligible to be added as a snow and ice expense.
     •   The salt vendor contracted with by the Town was unable to provide all of the Town's requested
         salt needs. Because of this the vendor was allowing the Town to deduct the extra cost for the
         expense of having to purchase from another salt vendor from invoices from the original
         contracted vendor.
     •   BW (Billy Walsh) has estimated the remaining Snow and Ice expenses to be $75,000.
     •   The cost for Sprague Roofing to do repairs to Town roofs was $14,000.
     •   The DOR (Department of Revenue) is allowing the Town to record the $160,000 of FEMA
         reimbursement as an FY15 receivable, even though the Town will most likely not receive the
         funds until FY16.
     •   The Governor has requested additional funding of approximately $400 million from FEMA. If
         additional funds were to be received by the Town, this would fall into free cash.
     •   The Fire Chief's storm-related expenses were not from the January storm for which the Town is
         expected to receive FEMA.

Article 9 Motion 2 - Vote: 9-0-0.


Article 7 — Set Salaries of Elected Officials — Mr. Murgia provided a Part Time Elected Official
Compensation Survey of 12 surrounding towns (see meeting handouts).

Mr. Murgia will follow up as to why the Town of Sharon compensates its elected officials on the Board of
Selectmen and the Board of Assessors but does not offer health insurance.

Mr. Murgia reported that the Town of Canton is being consistent with all of the other 12 communities
surveyed with regard to not compensating its officials on the Planning Board, School Committee and
Library Board of Trustees.

Mr. Barker spoke in favor of continuing to show the compensation, or lack of compensation, in the warrant
for the Planning Board, School Committee and Library Trustees.

Out of the 12 communities surveyed, Canton is the only one that compensates its Board of Health
officials.


D.       Other Business/Open Issues

Mitigation Funds Recon as of March 23, 2015 — Chairman Porter would be updating the Mitigation
Funds for the Committee Report in the Town Meeting Finance Committee Recommendations. Discussion
of the Mitigation Funds would be placed on an agenda at a future meeting.

Chairman Porter reminded the members that questions for the meeting on Monday, March 30 with the
BOS should be forwarded to him by Friday, March 27.

Discussions are due by April 6.


Liaison Reports — There were no liaison reports given at the meeting.


E.       Approval of Minutes

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A motion made by Rob Barker to approve the March 16, 2015 meeting minutes as written was
 seconded by Sepp Bergschneider. Vote: 9-0-0.


 F.     Next Meeting Date: The next meeting would be on Monday, March 30, with the Board of
 Selectmen to discuss Special Town Meeting Articles as well as BOS-sponsored ATM articles.

 Adjournment: A motion made by Barbara Saint Andr6 to adjourn the meeting at 8:30 p.m. was
 seconded by Sepp Bergschneider. Vote: 9-0-0.

 Minutes reviewed by: Jim Sims

 Respectfully submitte




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Town of Canton
                                 Finance Committee Meeting — March 26, 2015

                                             List of Meeting Handouts

 Please note: These meeting handouts may also be found on the Town's website under the Posted
 Minutes section (Laser Fiche).

 Agenda (1 page).

 Presentation to the Town of Canton Finance Committee, District Improvement Financing (DIF) as of
 March 26, 2015, provided by UniBank Fiscal Advosry Services, Inc. (7 pages).

 Exhibit E — Development Program (1 page).

 Exhibit F — Financial Plan (1 page).

 Exhibit H — Schedule of Allocated Values/Costs — Plymouth Rubber Redevelopment (5 pages).

 Article 9 Motion 1 & 2 — Adjust Fiscal '15 Accounts — Copy of Draft Motions (1 page).

 Canton DPW — Snow & Ice Report — Winter 2014-2015 - $889,492.13, provided by Department of
 Public Works on March 26, 2015 (1 page).

Part Time Elected Officials Compensation Study, provided by Jim Murgia, Finance Director, dated
March 26, 2015 (1 page).

Property Tax Bureau, Informational Guideline Release (IGR) regarding the Community Preservation
Fund, dated September 2002, provided by Jerry Dorfman (7 pages).

School Enrollment Data for 12101100 and 12/1/14, provided by the School Committee to Jim Sims
(2 pages).

Mitigation Funds Recon as of March 23, 2015, provided by Kathy Butters (12 pages).

FY16 Municipal Operating Budgets & FY16 Enterprise Operating Budgets, as of March 26, 2015
provided by Jim Murgia, Finance Director (4 pages).




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