2006-08-31-AC-min - Laserfiche WebLink

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August 31, 2006 There was a discussion of the possible need for a Special Town Meeting this fall to appropriate funds for the DPW barn replacement project. Michael reported on the status of planning for that project and said that the final decision whether to proceed with a Special Town Meeting would likely be made at the Board of Selectmen meeting scheduled for September 18. There was a discussion of the reported deficit in the school department’s FY06 budget earlier in the summer and the steps that were taken to resolve the problem. Michael explained that the apparent shortfall was mostly attributable to the erroneous allocation of certain capital expenditures to the operating budget, and that Town staff had helped the school department analyze and correct the problem. It was noted that this Committee still has not received any of the Superintendent’s monthly status reports to the School Committee tracking the performance of actual to budgeted results. Al Levine has had several contacts with the School Committee chair about getting copies of these reports on a regular basis, and will follow up again. Michael Young then reported some recent good news relating to Massachusetts School Building Authority (MSBA) reimbursements. Thanks to diligent efforts by school staff to document building expenses, MSBA reimbursements for the completed secondary school renovation projects will be coming in, after completion of the final project audit, about $1.3 million higher than had been anticipated after the audit. After paying off bond anticipation notes (BAN’s) due August 25, a balance of $2,286,000 remains. Of that balance, $453,941is attributable to exempt debt (outside the levy), and must be applied to the retirement of that debt. The remainder of $1,832,659 is attributable to within-levy debt. It is possible that this amount could be treated as an addition to the Town’s General Fund balance during FY07, which would then become available for appropriation as free cash for FY09. However, the Town’s financial staff is currently studying a recent Information Guideline Release (IGR) issued by the DOR (IGR No. 06-101, “Guidelines for the Application of School Building Grants”), which may call for a different treatment. David Kanter reported on his recent participation in the selection committee for the new school department financial officer to replace Ann Giombetti, who will be departing in November. There was strong support for the candidate finally selected, Mary Ellen Normen Dunn, who has most recently been employed in the Natick school system and previously worked with Carl Valente and Rob Addelson in the Town of Needham. Dunn’s possible title will be Assistant Superintendent for Finance and Operations. Financial Policies. 4. The Committee resumed its discussion of the report and recommendations of the Financial Policy Review Committee, focusing on the portion of the report addressed to Reserve Policies. Specific issues discussed were the Stabilization Fund (is the target level adequately defined, how large should it be, when should you spend it, and how should you replenish it?), the Appropriation Committee Reserve Fund, and proposed “continuing balance accounts.” - 2 -