HomeMy WebLinkAbout2019-10-16 Fall Fiscal Summit-min
Summit October 16, 2019
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Summit Meeting
Board of Selectmen, School Committee, Appropriation Committee,
Capital Expenditures Committee
October 16, 2019
A Summit was held on Wednesday, October 16, 2019 in the Hadley Public Services Building
Cafeteria, 201 Bedford Street. Board of Selectmen (BOS): Mr. Lucente, Chair; Mr. Pato and Ms.
Barry, were present, along with Mr. Malloy, Town Manager; Ms. Axtell, Deputy Town Manager,
Ms. Kosnoff, Assistant Town Manager for Finance; Ms. Hewitt, Budget Officer and Ms.
Katzenback, Executive Clerk.
Also present: School Committee (SC) members: Ms. Colburn, Vice Chair; Mr. Bokun; Ms.
Lenihan, Ms. Sawhney and Dr. Hackett, Superintendent of Schools. Appropriation Committee
(AC) members: Mr. Bartenstein, (7:04 p.m. arrival); Mr. Levine; Mr. Nichols and Mr. Padaki.
Capital Expenditures Committee (CEC) members: Mr. Lamb, Chair; Mr. Kanter; Ms. Beebee; Mr.
Cole, Ms. Manz and Mr. Smith.
Mr. Lucente called the meeting to order at 7:01 p.m. as did the School Committee and the Capital
Expenditures Committee. The Appropriation Committee did not have quorum. Mr. Lucente
explained that, due to the nature of the meeting, no public comment would be taken. Ms. Barry
indicated she would be recused from any Other Post-Employment Benefits (OPEB) and pension
policy discussions as her husband is an employee of the Town; she would participate in the other
discussions surrounding policy.
Review Recommended Fiscal Guidelines
Mr. Malloy stated the principles outlined in the recommended fiscal guidelines are designed to
ensure the Town’s sound financial condition now and in the future. He defined sound financial
condition as cash solvency, budgetary solvency, long-term solvency and service level solvency.
Mr. Malloy presented the following fiscal guideline recommendations for the Town:
Eliminate the use of free cash for supplementing the Operating Budget.
Increase fiscal reserves to reach 16.67 % of general fund operating revenues.
Increase appropriations into the capital stabilization fund to assist with future funding of
the high school project.
Adjust annual appropriation to maintain current target of FY2024 to reach full funding for
pension.
Maintain a consistent level of funding for OPEB with a target of 35%-100% of the annual
service cost.
Do not take any actions addressed to Personal Property Tax New Growth at this time.
Tax up to the levy limit and appropriate increasing amounts into the Capital Stabilization
Fund or other reserves.
Prioritize projects in the 5-year capital plan to stay within target ranges of cash capital.
Summit October 16, 2019
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Develop and inventory and replacement schedule for all the Town’s capital assets to
support long-term capital planning.
Reduce debt financing of continuing programs and short lived capital assets such as
technology.
Adopt and implement new debt management guidelines that is sustainable for the future.
Continue to utilize the Town’s revenue allocation model in future budget development.
Mr. Malloy explained these guidelines will be incorporated into the FY2020 budget adjustments
for Fall Special Town Meeting and the FY2021 budget development process. He said revenue
projections and a preliminary revenue allocation model will be presented at the upcoming Budget
Summit. Mr. Malloy stated the Staff will prepare the FY2020 tax recap and proposed tax rates
based on these recommendations.
Each member of the Capital Expenditures Committee, School Committee, Board of Selectmen and
Appropriation Committee was given time to comment on the presentation.
Mr. Malloy reviewed the schedule for upcoming financial Future Meeting Dates:
• Budget Summit I – October 30, 2019
• Fall Special Town Meeting – November 12-13, 2019
• Budget Summit II – November 21, 2019
• Set the FY2020 Tax Rate – December 2, 2019
• Begin FY2021 Budget Hearings – December 3, 2019
• Budget Summit III (White Book) – January 16, 2020
Upon motion duly made and seconded, the Board of Selectmen voted 3-0 to adjourn at 8:10 p.m.
The Capital Expenditures Committee and School Committee subsequently adjourned.
A true record; Attest:
Kim Katzenback
Executive Clerk