2011-10-27-AC-min - Laserfiche WebLink

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October 27, 2011 5) The Library Archives capital project funds have been zeroed out under item 19 because the CPC voted to support this project using CPA funds. It will be discussed at the STM under Article 7. 6) Item 8, "Fire Dept. communications" will be acted upon under Article 3. 7) The reduction of $1,250,000 to the health insurance budget (item 20) was driven by reductions in claims from the estimates used at the Annual Town Meeting. Mr. Addelson reported that the Board of Selectmen voted on October 24 to take the position that the balance of funds at the bottom line of the operating budget revisions flow to free cash. He noted that the State is in process of passing legislation that would modestly increase State aid, but that the projected increase does not appear in the table or its bottom line. The table also does not include an amount of new growth for Shire's property, nor does it include the effects of a final resolution of late appropriation and revenue changes at the Annual Town Meeting. In response to a question regarding the practice that has been followed in recent years that all free cash be used for expenses or transferred to holding accounts, Mr. Addelson replied that the balance at the bottom line of the table is not yet free cash, but will become free cash. Mr. Parker queried whether the Committee agrees with the Selectmen's position on the balance. Mr. Pato and Mr. Levine noted that it would be hard to disagree in an effective manner in the absence of leadership who could convince the Committee and Town Meeting that particular programs should be funded at this time. The levy limit and the possibility of lowering the tax rate was then briefly discussed. Finally, it was noted by Mr. Michelson that the balance should ultimately be used for capital expenses in so far as it represents nonrecurring sources of funds. Mr. Addelson reviewed page 2 of the package of material; this page lists the proposed transfers of funds to special accounts to be made at the STM. Mr. Addelson then explained pages 4 and then page 3 which pertain to Article 2. Page 4 contains a table giving amounts of exempt debt service due to existing obligations and the increases in such that would be incurred if the Bowman and Bridge projects and the replacement of the Estabrook School are approved. The table also contains estimates of the impact to the tax bill of a taxpayer owning a home of average value if the school building projects are approved. It was noted that no figures for work on Robinson Road are included in the numbers for Estabrook. If the Bridge and Bowman projects receive all approvals, the $750,000 and $280,000 short term notes that allowed the Town to carry out design and engineering work will be repaid fully in FY 2013. Page 3 shows the information from page 4 and also adds the projected impact of the school building projects to the base tax bill of the average taxpayer. There was general discussion of alternatives that could be included in the Committee's report on Article 2. Jonina, Mollie, and Alan agreed to circulate a draft over the coming weekend. The Committee discussed a draft report on Article 3 — Fire Communication System — that was circulated earlier in the day by Mr. Neumeier. Mr. Addelson noted that the Town may ultimately need to have redundant systems, and that funds to enable a study of microwave links may be requested at the 2012 annual town meeting. 2