Finance Committee Meeting Minutes 3/31/21

Finance Committee Meeting Minutes 3-31-21

Present Rebecca Wolin, Jon Sylbert, Michele Miller

Agenda items to be discussed:
Joint meeting with the Finance Committee and the Select board - requested last week by DC.

Agenda
Final Budget items

This joint meeting of the two boards were to discuss the differences in the two budgets.

The first item discussed was the salary line of the town administrator and the admin asst.  The select board put a $1 in for administrator assistant and raised the town administrator to $75,000.

The finance committee does not agree to this as the position was advertised for a part time and Steve and Don hired a full-time person.  This is very illegal and could possibly leave Mellissa without a position if the budget was this way. 

Don said – “you are probably correct, but I won’t be here next year so I don’t care”

The finance committee had voted the previous night 2-1 to not support it.  At this meeting Jon said in order to keep peace as long as the $1 was left so that money could be shifted from town manager to admin when this wrongdoing is corrected.  It is not about people but process.

The finance committee had lowered some town budgets to keep the tax levy below 3.5%.  The select board requested these amounts be restored.  Both the fire department and dpw always has left over money which is essentially over taxing residents.  In the end the finance committee on a vote of 2-1 voted to restore the funds.  This was done with the understanding that the capital budget would be prepared correctly and go 10 – 20 years out.

Library loan – the library requested to have the loan paid off per the schedule of $72,000.  The select board would like not to pay any capital or a very small amount as they are looking to take out a 1-million-dollar bond next year.  This would essentially spend funds we do not have and kick the can down the road for taxpayers.  Rebecca explained that the finance committee is strongly against this.  In this volatile bond market we are too small to be playing with the big guys. The select board is not very versed in the bond market and is taking the word of the banker.  The select board stated that this banker does not make commission, but all bankers salaries are based on quotas, so Unibank banker salary is based on the business he brings in.  We do not have a bond rating yet and with credit scores, if you do not have the credit when you apply you do not get the best rates to start out.  The bond market almost failed last year when the county of LA defaulted on their bonds, many smaller bonds were called in, and the federal reserve had to put money into the market to shore it up.  For a town of 800 people we should not be taking out bonds.

Eventually the select board aquised and approved the change so that the two budgets would be similar

Health Insurance was added back as we are keeping the two positions in the town office

The stabilization fund was not funded this year by the finance committee as the bridges should be on the TIP list to have the state pay for the repair.  Steve agreed to address this next year when he is chair.  The finance committee agreed to put the $15,000 back into the budget.  Funds were removed on the select board budget from the fire department stabilization fund to having no effect on the bottom line.

Milfoil – Originally this was a citizen’s petition that the select board put into the special warrants part of the budget so that it could be considered operational.  Jon stated that the Finance Committee is not recommending this as citizens petition was submitted so it has to be put on. A discussion about the creating a lake district again came up.  It was noted that Steve W who lives on the lake and would be part of the district should recuse himself, he disagreed and the subject was dropped.  Eventually the select board agreed to follow policy and leave it as a citizen petition  The finance committee voted 3-0

Community Center Lighting – Jon believes funds from the revolving fund should be used to fix the lights the temporarily until we have time to put together a thought out lighting proposal that also would not create light pollution.  The Board felt that this would be a stretch to argue that a whole new outdoor lighting proposal could be defined as a contractual service to maintain or operate the Community Center (which is an allowable expense per the bylaw).  Finance Committee will add it back in but all agreed that we need more information on if the revolving funds can be used.  The finance committee voted 2-1 to put the lights back into the budget

FD Capital: Jon stated that the Finance Committee is struggling with this sensitive issue and that they feel there are quite a few things yet to be resolved.  Discussion ensued about the $32k appropriated for this year and the fact that only $21k was needed after received a lower quote for the railing job. Jon feels we need to wait until last year’s monies and how they are spent is resolved.  Don explained that only $21k of the $32k has been spent and the rest of it is still in the town coffers.  At Jon’s request Don confirmed that the remaining monies will go back to free cash at the end of the year.  Jon agreed that if that is the case he will put the $30k for capital back on the budget.

Truck: Don explained that historically the town has usually borrowed for trucks.  He doesn’t feel that the FY22 residents should pay for it all up front when the truck may not be in our possession until FY23 and will be used for 15 to 20 years. The Finance Committee is proposing to purchase the truck using $100k from free cash and $100k from stabilization.  Rebecca feels that borrowing right now is irresponsible.  Michele does not have any issue with borrowing as our debt service is pretty stable.  Steve agreed that borrowing is the best way to go.  The finance committee voted and this passed 2-1

Back to the Town Administrator: Jon S feels that this is fraught with problems and personally would prefer to resolve this now rather than on the town meeting floor as it involves a long time employee who we need to protect and in his opinion an unenforceable contract.  When asked if he had a proposed solution, he did not.  Don reminded everyone that the contract was vetted by town counsel. Disagreements ensued about whether the job needed to be advertised again (or at all) and if the Board was allowed to promote from within.  Don said again that even if it is illegal, he doesn’t care – he won’t have to deal with it next year.

The discussion concluded without agreement. The Finance Committee adjourned their meeting.