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HomeMy WebLinkAbout1996-11-21-AC-MIN.pdf APPROPRIATION COMMITTEE MEETING MINUTES THURSDAY, NOVEMBER 21, 1996 COMPTROLLER'S OFFICE, 7:30 PM PRESENT: R. Borghesani, S. Coit, P. Lapointe, R. Leone, M. Miley, I. Mroczkowski, R. Pawliczek ABSENT: R. Colwell, L. Peck, J. Ryan Activities Before the Meeting The committee's photo was taken for the annual town report. M. Miley agreed to draft the committee's report. P. Lapointe and R. Borghesani distributed copies of the new edition of the Association of Town Finance Committees (ATFC) Finance Committee Handbook, which the ATFC had distributed at its annual meeting on November 16. Discussion of the Budget Process P. Lapointe expressed the need for greater movement in the budget process. Despite apparent shared interest in improving the process, he saw little progress on the three priorities: capital budget planning, the operating budget, and financial reserves. Discussion followed on the committee's role. Should the committee continue to react, as the bylaw suggests, or be proactive and attempt to move the process along? To be proactive, what specific steps could we take? Financial Guidelines Committee discussed setting guidelines for sound, long-term financial management and how to promote their impact on FY 1997-98 budgets. Committee identified the following possible guidelines: debt policy, including the amortization period; capital and operating expense ratios; stabilization funds; and revenue models. Since the town meeting warrant will close on December 27, it was agreed that proposing one or more financial guidelines in the warrant would assure early discussion of such guidelines. The committee agreed to consider the following issues for warrant articles: capital budget expenses as a percentage of total spending; stabilization fund; debt amortization schedules; and the budget process. After discussion of the merits of proposing only one versus a few warrant articles, the committee agreed to focus on a single warrant article: a guideline for capital spending as a ratio of either the tax levy or spending, exclusive of enterprise funds. Warrant Article Workplan The committee agreed to the following workplan: 1. Draft wording of the article (P. Lapointe) 2. Contact Marge Battin, Norm Cohen, Karen Dooks, and J. Ryan (P. Lapointe) 3. Analyze historical capital spending patterns relative to tax levy, other revenues (R. Borghesani 4. Review and critique models for future levels of capital spending (R. Leone) Subcommittee Reports P. Lapointe reported on a willingness to review fund balance policy questions at the November 19 Minuteman Regional School Committee meeting. R. Borghesani reported on the school team's tracking of the Lexington School Committee's capital budget proposal Next Meeting Dates December 12 and 19 at 7:30 PM in the comptroller's office. Note In the secretary's absence, S. Coit took meeting notes, and P. Lapointe prepared these minutes.