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Natick Town Meeting - Fall 2002

Finance Committee Recommendations

FINANCE COMMITTEE

RECOMMENDATIONS

2002 FALL TOWN MEETING

ARTICLE 1   

(Town Administrator)

To determine what sum or sums of money the Town will appropriate and raise, or transfer from available funds, for the operation of the government of the Town of Natick, including debt and interest, and to provide for a reserve fund for Fiscal Year 2003 (July 1, 2002 to June 30, 2003), and to see what budgets for Fiscal 2003 will be reduced to offset said additional appropriations, or take any action relative thereto.  

RECOMMENDATION:      By a vote of 11-3-0, the Finance Committee recommends FAVORABLE ACTION with regard to the subject matter of Article 1 and that the sum of $325,693 be raised to fund the following Fiscal Year 2003 supplemental appropriations:

The purpose of this article is to supplement and or amend the various Fiscal Year (hereafter “FY”) 2003 operating budgets. 

With regard to the Town Collector: Ambulance Billing/Collection Fees, this recommendation requests increasing the FY 2003 appropriation for fees related to the administration and processing of Ambulance billings.  These fees are based on a percentage of ambulance revenue collected (4.75%), including the processing of claims with related insurance carriers. 

To illustrate the Finance Committee and Town Administration calculations regarding this recommendation, we provide the following: 1) FY02 expenditures, 2) FY03 appropriation, and 3) the additional request. 

The Finance Committee recommends funding this request from the Tax Levy (via increased Local Receipts - Ambulance Fees).

With regard to the Legal Services/Judgments – Damage Claims request, the Finance Committee recommends the requested increase in this appropriation, which covers anticipated increases in costs related to insurance deductibles.  The specific areas where deducible allowances were increased are “School, Law Enforcement, and Public Officials” liability ($10,000.00) and Property Damage ($2,500). The current FY’s appropriation and the requested additional are as follows;

The Finance Committee recommends funding this request from Tax Levy.

With regard to the Debt Service/Bond Anticipation Notes request, the Finance committee concurs with the town administration’s request to increase this account in the amount of $175,000.00, which is to “pay down” a portion of the principal balance for the $500,000 borrowed as planning / architectural funds for the Natick High School.   In light of the fact that the Natick High School renovation has not received construction authorization the allowable duration for temporary borrowing is limited to two (2) years with a five (5) year payoff requirement.  The town administration recommends repayment for this debt over the next three fiscal years in the following manner:

The Finance Committee recommends funding this request from Free Cash.

With regard to the Employee Fringe Benefit Insurance and Self Insurance/Public Safety C41 S111F Medical request, the Finance Committee concurs with the town administration’s request to increase this account, which will increase the appropriation for insurance premium for reinsurance related to workplace injuries for Police and Fire Personnel. 

Upon Town Meeting’s acceptance of this request, the FY03 appropriation will be revised as follows:

The Finance Committee recommends funding this request from Tax Levy.

With regard to the Property and Liability Insurance/Motor Vehicle request, the Finance Committee concurs with the town administration’s request to increase the appropriation so that funding would be made available for increases in premium costs for Auto Insurance. 

Upon Town Meeting’s acceptance of this request, the FY03 appropriation will be revised as follows:

The Finance Committee recommends funding this request from the Tax Levy.

With regard to the Property and Liability Insurance/Boiler request, the Finance Committee concurs with the town administrator’s request to increase the appropriation so that funding would be made available for increases in premium costs for Boiler Insurance.  The current FY’s appropriation, the additional requested amount and the adjusted FY03 appropriation are as follows;

The Finance Committee recommends funding this request from the Tax Levy.

With regard to the Budgetary Reserves/Reserve for Appropriation request, the Finance Committee concurs with the town administration’s request, which will return funds that were transferred by the Finance Committee to allow for the timely purchase of a vehicle for the Fire Department.  The Fire Department vehicle was a “first line” response vehicle that was a total loss, due to an auto accident this fiscal year.  The request will replace the vehicle and equip it with the appropriate lights, sirens, emblems, decals, etc.   In addition, this request will replace damaged electronic equipment at a functional level to that which was present before the automobile accident.

The Finance Committee recommends the $42,500.00 appropriation funding from Free Cash.

With regard to the Non Contributory Pensions/Pensions request, the Finance Committee concurs with the town administration’s request, which represents an amount to fund “Veteran’s Benefits” for non-contributory retirement recipients.  There were additional benefits that have accrued over several years for a limited numbers of retirees, which represent a one-time payment of accrued benefits. 

The Finance Committee recommends the $24,593.00 appropriation funding from Free Cash.

MOTION:     

A Motion will be available before the commencement of 2002 Fall Town Meeting (10/15/02).

ARTICLE 2

(Town Administrator)

To see if the Town will vote to appropriate a sum of money from available funds for the purpose of supplementing the stabilization fund under Article 22 of the warrant for Annual Town Meeting of 1961, as authorized by Chapter 40, Section 5B of the General Laws, as amended, or otherwise act  thereon.

RECOMMENDATION:      The Finance Committee recommends NO ACTION with regard to the subject matter of Article 2. 

Normally, the purpose of this article is to appropriate funds into the Stabilization Fund of the Town.  However this Fall the Finance Committee is not recommending appropriation under this article.  Taking into account the uncertainties we face in the coming fiscal years’ budgets, it is prudent at this time to forego any appropriations under this article.

ARTICLE 3

(Town Administrator)

To see if the Town will vote to appropriate and raise, or otherwise provide, a sum or sums of money as may be required for capital equipment for the various departments of the Town of Natick, or otherwise act thereon.

RECOMMENDATION:      The Finance Committee recommends NO ACTION with regard to the subject matter of Article 3. 

The purpose of this article is to fund various capital equipment requests.  Normally, the Finance Committee has recommended funding under this article in the Fall of each year to fulfill those capital equipment needs of the Town’s departments.  However, this year we are not recommending any appropriations under this article.

The Finance Committee concurs with the Town Administrator’s position that with the uncertainties we face in the coming fiscal years’ budgets it is prudent at this time to forego funding any requests under this article. 

The Finance Committee heard testimony regarding a request to replace one of the four Neighborhood buses.  Even though this request has some merit, the Finance Committee believes that, since the Board of Selectmen had only recently received the Neighborhood Bus Advisory Committee Report, and that they  have not digested or acted upon such, no bus should be purchased until the Board of Selectmen has made decisions related to service continuation, enhancement and/or change.

ARTICLE 4

(Town Administrator)

To see if the Town will vote to appropriate and raise, or otherwise provide, a sum or sums of money to implement a Capital Improvement Program, to protect the physical infrastructure of the Town of Natick, or otherwise act thereon.

RECOMMENDATION:      The Finance Committee recommends NO ACTION with regard to the subject matter of Article 4. 

Normally, the purpose of this article is to fund various Town capital improvement requests.  As mentioned above in Article 3, we concur with the Town Administrator’s position that we face fiscal uncertainties in the coming fiscal years’ budgets.  Therefore, it is prudent at this time to forego funding any requests under this article.

ARTICLE 5

(Town Administrator)

To see if the Town will vote to appropriate and raise, or otherwise provide, a sum or sums of money as may be required for the lease and/or repair of equipment for various departments of the Town of Natick, or otherwise act thereon.

RECOMMENDATION:      The Finance Committee recommends NO ACTION with regard to the subject matter of Article 5. 

The purpose of this article is to fund various Town leases and or repairs of equipment under the control and management of Town departments.  As mentioned above in Article 3 and Article 4, we concur with the Town Administrator’s position that we face fiscal uncertainties in the coming fiscal years’ budgets.  Therefore, it is prudent at this time to forego funding any requests under this article.

ARTICLE 6

(Morse Institute Library Trustees)

To see what sums of money the Town will vote to raise and appropriate, or otherwise provide, to hire additional personnel for the Morse Institute Library, or take any action relative thereto.

RECOMMENDATION:      The Finance Committee recommends NO ACTION with regard to the subject matter of Article 6. 

The purpose of this article is to appropriate funding for Morse Institute Library personnel.  The Morse Institute Library Director and a member of the Board of Trustees presented staffing data and operational  needs.  After discussion and deliberation the request was withdrawn.  Members of the Finance Committee felt that given the current fiscal uncertainties, among other things, consideration of such funding should be delayed until further review can occur.  Therefore, such funding request will be reviewed during the next fiscal year budget review process, so that it can be considered in the context of the Town budget as a whole.

ARTICLE 7

(Town Administrator)

To see if the Town will vote to appropriate a sum of money to provide for the remediation of contamination on Town owned properties; determine whether this appropriation shall be raised by borrowing or otherwise; or take any other action relative thereto.

RECOMMENDATION:      By a vote of 12-0-0, the Finance Committee recommends FAVORABLE ACTION with regard to the subject matter of Article 7 and that the sum of $135,150.00 be raised from Free Cash. 

The purpose of this article is to fund the Town’s on-going efforts to remediate contamination on town-owned land.  Specifically, the amount being requested is a continuation of funding that Town Meeting appropriated last spring in Article 18.  At that time we reported that these expenditures would be ongoing.

The following table and paragraphs are a summary of our report from the Annual (Spring) Town Meeting Warrant:

Lilja School	$61,050
Bennett Hemingway School	$  9,600
Murphy Recreation Center	$36,500
Natick District Courthouse	$  7,500
Natick Department of Public Works	$15,500
Eliot School Oil Tank Replacement	$  5,000

The amounts listed above represent one half of the funds anticipated to be spent in Fiscal Year 2003 for this purpose.  The Town Administration anticipates requesting the other half of the necessary funding at Fall Town Meeting.  The Town has a five-year oil tank remediation funding schedule amounting to approximately $120,000 to $130,000 for the next five fiscal years.  In recognition of the level of need after Fiscal Year 2003, the Town Administration has requested and the Finance Committee recommends that the funding source be from Free Cash and not from borrowing.  The Finance Committee concurs that there is no money left in the Oil Tank Remediation Fund formerly appropriated by Town Meeting.

Each of these oil tank problems and concerns are long standing. Costs generally include quarterly or semi annual testing of each area and filing of appropriate environmental reports.  The Town’s environmental consultant has provided two options for continued testing and monitoring, and the Town Administration has chosen the more aggressive approach of groundwater treatment and active - NAPL Recovery

One major benefit of this plan is that the Town can monitor the testing and monitoring process without hiring a consultant, because of the newly establish Environmental Officer’s capability to monitor such.  Another major benefit is that with the use of Free Cash funding this project will avoid added costs such as interest on borrowing and bond issuance costs. 

Taking those benefits into account among others, continuation of this project is timely and fiscally prudent for Fiscal Year 2003. 

Specific questions about these projects should be addressed to the Environmental Officer and/or Town administrators.

Motion:

A Motion will be available before the commencement of 2002 Fall Town Meeting (10/15/02).