2004-11-04-AC-min - Laserfiche WebLink

Browse Search

November 4, 2004 done, thinks it will be more of a backlog situation, with things done on a priority basis. AC asked W. Kennedy to relay these questions to the BoS; W. Kennedy agreed. PH asked about pending union contract negotiations. W. Kennedy indicated that he doesn't think the unions will be interested in negotiating with any interim, but others feel differently on BoS. G. Burnell suggested that maybe a professional labor negotiator could be brought in as additional help. b. Regular Town Manager search process: DB and W. Kennedy reported that BoS appointed a search committee Monday night (Nov. 1). AC voted 8-0 (RC had not yet arrived) for DB to serve as AC liaison to search committee. AC reviewed revised draft of committee memo re selection criteria (input for town manager search committee). Changes discussed. AC voted 8-0-1 (JB abstained) to approve with tonight's changes. 2. Minutes: RP will have next week. DB also sorry not to have something ready. 3. Water/Sewer Enterprise Funds accounts receivable: JB passed out documents he prepared for AC briefing tonight. [Later revised and distributed by email - ed.] Took us through handouts describing history of water/sewer reserves, and accounts receivable history and calculations and efforts to reconcile with estimates provided in BOS rate setting hearings. JB has been asking since July 1 what the reserves look like - to no avail - important because rates set based upon assumptions about what's needed to support services and maintain appropriate reserves. Bill Hadley's presentation to BoS included estimate of reserves for '04 - that's line from JB's chart - $2.3M. Every year state comes in and certifies our free cash both in general fund and in reserve funds, but this apparently hasn't been done so this is Bill Hadley's estimate. Not what JB would have expected based on revenues and expenses for the year. JB walked us through calculation of FY04 reserve balance - his calculation. JB's response to Bill Hadley's announcement of $2.3M reserves was to send memo to Sheila English indicating that this reserve figure is $3.2M less than what he expected, and would only expect this if receivables had jumped significantly. At next BOS meeting, that's exactly the explanation that what was presented. (See the chart on JB's first handout. "Reported 04" refers to oral report by Sheila at BOS meeting that there had been a spike in receivables of 2.4M from FY03 to FY04 - for total of 4.6M.) JB considers it highly improbable that citizens suddenly stopped paying w/s bills, so he questions whether the $4.6M receivables reported is really the right number, and if it is, what's going on. That's where things have been for last 10 days. Has been doing what he can to figure out the answer. Just obtained a report of the receivables for FY04. (Last set of bills went out in April or May). There's an entry here for a nursing home - SunBridge of Lexington - $775,000 bill and interest due $44,000. Unlikely that they used that much water. It's probably off by one or two orders of magnitude. JB and DB trying to piece together a plausible explanation, thinking about