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March 08, 2016, Finance Committee Meeting. Minutes
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Town of Canton Finance Committee Minutes Voted on: 3/16/16
Meeting Minutes Vote: 9-0-0
Tuesday, March 8, 2016
Members Present:
Rob Barker, Sepp Bergschneider, Jim Casamento, Gerald Dorfman, Nichola Gallagher, Dianne
G ustafson, Stephanie Leach, Tim McKenna, Barbara Saint Andre and Jim Sims.
Members Absent:
All members were present at the meeting.
Guests Present:
Jim Murgia, Finance Director (Mr. Murgia arrived at the meeting at approximately 8:15 p.m.)
Ellen Jones, Finance Committee Secretary
Opening: A meeting of the Canton Finance Committee was called to order by Chair Saint Andre at
7:04 p.m. on Tuesday, March 8, 2016 in the Community Meeting Room of the Canton Public Library.
A. Approval of Agenda
Chair Saint Andre reviewed the items on the agenda.
B. Announcements
There were no announcements.
C. New Business
ATM Finance Committee Recommendations —The Finance Committee members reviewed a listing of
the Town Meeting articles and decided which members would be writing which discussions.
Article 2 —Adopt Rules to Govern Town Meeting -
A motion made by Mr. Bergschneider that the motions for Article 2, Motion 1, Motion 2 and Motion
3 as written in the warrant be adopted was seconded by Mr. Barker. Vote: 10-0-0.
A motion made by Mr. Barker to approve the discussions for Article 2, Motion 1, Motion 2 and
Motion 3 as written in the warrant be adopted was seconded by Mr. Dorfman. Vote: 10-0-0. The
members discussed that it was unnecessary to approve the discussions. These discussions would be
reviewed as a committee in a few weeks.
Article 3 —Hear Reports of Committees appointed at Prior Town Meetings —The Finance
Committee did not take a position on Article 3 as they were awaiting the draft committee reports from Mr.
Bonnanzio, Mr. Manning and Ms. Lopez. Since the time of the meeting Mr. Manning has provided his
report.
Article 7 —Set Salaries of Elected Officials
Article 7 Motion 1:
A motion made by Mr. Bergschneider to set the FY17 salary for the Town Clerk at $82,936 as
written for Article 7 Motion 1 in the warrant was seconded by Mr. McKenna. Vote: 10-0-0.
M r. Casamento recommended splitting the salaries for elected officials into six separate motions. He also
recalled that the salaries for the Board of Assessors had been established years go for reimbursing the
i ndividuals for assessing field work. This work is now being completed by the Assessing staff and private
contractors.
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Article 7 Motion 2: A motion made by Mr. Bergschneider to set the FY salaries for the Board of Assessors at $2,400 each was seconded by Ms. Saint Andre. The Finance Committee inquired whether they could vote to pay elected officials stipends instead of salaries, thus eliminating the health insurance eligibility. Vote: 2-8-0. Ms. Gallagher and Mr. Bergschneider voted in support of the motion. The motion for setting the salary for the Board of Assessors at $2,400 failed. Article 7 Motion 2: A motion made by Mr. Barker to set the FY17 salaries for the Board of Assessors at $0.00 each was seconded by Mr. Sims. Vote: 8-1-1. Mr. McKenna voted in opposition to this motion and Ms. Gallagher abstained. Article 7 Motion 3: A motion made by Mr. Barker to set the FY17 salaries for the Board of Health at $0.00 each was seconded by Ms. Gustafson. Vote: 8-1-1. Mr. McKenna voted in opposition to this motion and Ms. Gallagher abstained. Article 7 Motion 4: A motion made by Mr. Barker to set the FY17 salaries for the Board of Selectmen at $0.00 each was seconded by Mr. Bergschneider. Vote: 6-3-1. Mr. Casamento, Ms. Leach and Mr. McKenna voted in opposition to this motion while Ms. Gallagher abstained. Article 7 Motion 5: A motion made by Mr. Barker to set the FY17 salaries for the Planning Board, School Committee and Library Board of Trustees at $0.00 was seconded by Ms. Gustafson. Vote: 9-0-1. Ms. Gallagher abstained. Article 8 —Pay Bills of Prior Fiscal Year —The Finance Committee did not vote on Article 8 because they were waiting to see if departments had responded to a recent email sent by the Town Accountant i nquiring about unpaid bills. The Finance Committee would vote on Article 8 at a future meeting. Article 9 —Adjust Fiscal '16 Accounts Article 9 Motion 1: A motion made by Mr. Bergschneider that $350,000 be appropriated to the Reserve Fund by transfer from Water Enterprise surplus (retained earnings) was seconded by Ms. Gustafson. Vote: 10-0-0. This was to repay the Reserve fund for funds that had been transferred for the Rebecca Road water issue. Article 9 Motion 2: A motion made by Mr. Bergschneider that $75,000 be appropriated to the Parks and Recreation by transfer from Free Cash was seconded by Mr. Barker. Vote: 10-0-0. This transfer was to cover the salaries of two Rink employees whose salaries are now being paid out of the Parks &Recreation budget. Article 9 Motion 3: A motion made by Mr. Bergschneider that $25,000 be appropriated to the Assessors Budget by transfer from Free Cash was seconded by Ms. Gallagher. Vote: 10-0-0. This $25,000 transfer was being requested in lieu of a $25,000 increase to the Assessors operating budget. This was being used to pay for the revaluation services. Article 11 —Authorize Certain Revolving Funds A motion made by Ms. Gallagher to establish for FY17 revolving funds for Veteran's Services, Library, Recreation, Student Parking Fees, Pequitside Farm Rentals, Greenlodge Street Parking Fees, Beautification Fund, Animal Control Special Revenues, Library Building Rentals, COA Revolving Fund and Board of Health Special Revenues as written in the warrant was seconded by Mr. Bergschneider. 20160308 FiNCOM MINUTES Page 2 of 6 03/10/16
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Mr. Sims expressed concern that the Parks &Recreation was charging operating expenses to the Recreation Revolving Fund that were not program-related expenses. Mr. Sims cited expenses that had been charged to the Revolving Fund such as pest control, oven hoods for the Gridley School, membership fees and educational program fees for conferences attended by the Assistant Director. A member suggested that perhaps a review of the expenditures take place with Mr. Murgia to determine if a revolving fund was justified for the Parks &Recreation Department. Mr. Casamento requested that with regard to the Beautification Revolving Fund that has been inactive since May of 2012, Mr. Pineo should use the funds for beautification projects or have the revolving fund closed and turned back to the General Fund. Mr. Sims distributed to the Committee a listing of Municipal revolving funds that have had no activity for the past 3~/Z years. Some of these funds were established over 10 years ago. Fire Chief Doody has given approval to close the Fire Alarm Relocation Revolving Fund (Fund #153), i nactive since October 2007 with a zero balance. Bob Panico has given approval to close the Youth Commission Revolving Fund (Fund #155Y), inactive since January 2012. The balance of $531 will be returned to the General Fund. Vote: 10-0-0. Article 14 —Approval of Fund for 4th of July Community Celebration —The Committee did not take a vote on Article 14 because they were waiting for a determined number for the motion from Janet Maguire. Article 16 —Vote to Rescind Unused Borrowing Authorizations A motion made by Ms. Gallagher to rescind the six unused borrowing authorizations as printed in the warrant was seconded by Mr. Bergschneider. M r. Sims pointed out the list he distributed earlier to the Committee also included ATM voted authorizations for Capital spending that had no activity in the last 3'/z years and that some of these were established 15 or more years ago. Vote: 10-0-0. Article 21 —Vote to Approve Municipal Wireless Network —The Committee did not take a vote on Article 21 because there were several remaining unanswered questions: Would this be under the purview of the Board of Selectmen? What would be the cost of establishing the wireless network and what would be the benefits? Exactly what was the Wireless Network Committee's project scope? The Finance Committee decided not to take a vote on Article 21 and would wait until they have met with the Board of Selectmen. Article 22 —Vote to Amend General By-Laws —Municipal Government Reform — A few of the Finance Committee members agreed that Article 22 had many good suggestions for reform but thought there were too many items within one article, the article might be better suited if it was written as separate articles or motions and if it were drafted with legal language. A motion made by Ms. Gallagher that the subject matter of Article 22 be indefinitely postponed was seconded by Mr. Bergschneider. Vote: 10-0-0. Article 27 —Vote to Approve Term Limits for Elected and Appointed Boards and Committees A Finance Committee member expressed concern that Article 27 did not reference a specific By-Law and that it would be better if it were amended with the assistance of Town Counsel to include properly drafted legal language. A motion made by Mr. Casamento to approve the motion for Article 27 as written in the warrant was seconded by Mr. Dorfman. Vote: 5-5-0. The motion failed. 20160308 FINCOM MINUTES Page 3 of 6 03/10/16
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A motion made by Mr. Bergschneider that the subject matter of Article 27 be indefinitely
postponed was seconded by Mr. Barker. Vote: 8-2-0.
Article 43 —Vote to Approve aTown-Wide Comprehensive w raffic Study and Review —The Finance
Committee had the following concerns with Article 43: There should be coordination with the Blue Ribbon
Traffic Study Committee. The Finance Committee should wait to hear the Board of Selectmen's position
on Article 43. The proponent should have reached out to the DPW Superintendent with regard to other
traffic studies that may have been completed or are pending.
A motion made by Mr. Sims that the subject matter of Article 43 be indefinitely postponed was
seconded by Mr. Dorman. Vote: 10-0-0.
AAA Bond Rating —Sale of Bonds &Notes Requests —Chair Saint Andre congratulated Mr. Murgia on
the Town's recent affirmation of its AAA Bond Rating.
Mr. Murgia stated that the Board of Selectmen approved at their meeting earlier that night BANs (Bond
Anticipation Notes) for $3.7 million for 1-year borrowing. These notes are for five projects, including $2.2
million for the Hansen project, $1.3 million for the Mechanic Street water project. Eastern Bank was the
successful bidder at .6%.
There were eight bids received for the $3 million bond sale. The lowest bidder was UBS Financial
Services at 1.34% for 10-year bonds. Of the $3 million bond sale $1 million was for bonds that were
refinanced from 2008. This refinancing saved the Town $111,000 in debt service costs. There were 10
capital projects included in $1.9 million of the bonds.
Mr. Murgia explained to the Finance Committee that the Town's AAA bond rating by S&P helped to make
the bonds marketable. The basis for the AAA bond rating was the Town's solid balance sheet, its cash
reserves of $12.2 million at 14.9%, the diverse and strong commercial tax base, with the 10 largest
taxpayers making up 8% of the total assessed value and strong property values.
With the refinancing of the old bonds with the new bonds it make it more marketable. The debt service
was compared with what the Town would have paid at the former interest rates and there is about a 10%
savings with the new interest rates.
A 1.34% bond premium was offered which meant the bonding companies were offering the Town to
borrow more but at a lower rate. There were issuance costs associated with the bond sale, such as a
$13,500 invoice from S&P bond rating services. The premium may be legally used to pay for issuance
costs.
Other Business/Open Issues
Liaison Reports —There were no liaison reports given at the meeting.
Chair Saint Andre suggested to the Committee members that, voting for some of the Town Meeting
articles could take place on the same night the articles are discussed. An additional meeting on March
17th may also be added to the schedule in order to complete voting on the articles so that draft motions
may be sent to Town Counsel by the deadline on March 1 gt"
A pproval of Minutes
A motion made by Mr. Casamento to approve the February 4, 2016 minutes as written was
seconded by Mr. Bergschneider. Vote: 8-0-2. Mr. Barker and Ms. Gustafson abstained. They were
not present at the February 4th meeting.
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A motion made by Mr. McKenna to approve the February 18, 2016 minutes as written was seconded b~r Mr. Dorfman. Vote: 9-0-1. Mr. Bergschneider abstained as he was not present at the February 18` meeting. F. Next Meeting Date: The next meeting would take place on Wednesday, March 9'h in the Salah Meeting Room of Town Hall. Adjournment: A motion made by Mr. Casamento to adjourn the meeting at 8:55 p.m. was seconded by Ms. Gustafson. Vote: 10-0-0. Minutes reviewed by: Jim Sims Respectfully submitted, ' / .~~ ~ Ba" aint Andre Chair, Canton Finance Committee 20160308 FINCOM MINUTES Page 5 of 6 03/10/16
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Town of Canton
Finance Committee Meeting —Tuesday, March 8, 2016
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).
Revolving Fund Balances as of 6/30/15, provided by Jim Sims (2 pages).
Standard & Poor's Rating Report —AAA Bond Rating, dated March 1, 2016(6 pages).
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