HomeMy WebLinkAboutFINCOMminutes10222012 Find 1
Town of Mansfield RECEIVED
Finance Committee EP:iS OFFICE
Minutes of October 22, 2012
2513 JAN 1 1 A 8: 4 Q
Present: James Bazinet, Yogen Chemburkar, Liz Christo, Scott Feely, Michael O'¢r*H-ri, $Te,\40 000veld,
and Chairman Walter Wilk. ;- , 9 I
Others: William Ross,Town Manager and John Stanbrook, Town Accountant.
Call to Order: Chairman Wilk called the meeting to order at 7:30 p.m.
Free Cash Discussion
As of this time, FY12 free cash has not been certified and therefore no number is available for discussion.
Free cash for a fiscal year can be spent in the next fiscal year but there is no requirement that all the free
cash needs to be used or allocated. Free cash money not allocated or used will stay in the general fund and
become free cash for that fiscal year. The Town budget should generate 3-5% free cash, used for
unexpected expenses. A three year history of free cash usage prepared by John Stanbrook was reviewed.
Sources of free cash are unanticipated state revenue and town revenue and turn backs from departments.
Free cash has been used for operating activities, snow and ice deficit and next year's budgets, debt pay
down, OPEB, and one year$390K went towards capital.
Current proposal for free cash is that $500K for Capital Stabilization Fund, $500K for Stabilization, $30K for
the flagpole, debt allocated for the windows and street improvements at the spring town meeting not be
issued and that $1M be used for that and any unallocated balance would fall to the general fund to be
allocated in May for FY14 budget.
Discussion about not using cash for debt allocated at Spring Town Meeting. Indicators are showing that
funds may be needed for next year budget or other capital projects.
William Ross would ideally like to have 7%-8% in the Stabilization Fund which would mean there would be
$4.5/$5 million in the fund. There are no set financial policies for the Town. These policies (for stabilization,
debt, capital) need to be established to help meet the financial goals of Mansfield and ease the budgeting
process. These policies must be created collaboratively. Liz Christo and Steve Schoonveld attended the
ATFC Annual Meeting on 10/20 where most presenters discussed the importance of collaboration and
policies. Most towns have financial policies in place.
Special Town Meeting Warrant Articles
Finance Committee will need to meet on 11/1 to vote on the articles so that our votes and
recommendations can be presented to the Board of Selectmen before they vote. All the articles and the
wording of each article were reviewed and no committee member had any issues with any article.
Page I 1
Article 5 is for additional expenses that have occurred in FY13 and the concern was that these need to be in
FY14 budget and we assured they will be. These were expenses that were not anticipated.
Article 7 relates to funding the reassessment expenses and this item needs to be incorporated into the
annual budgets. There is a 3 year reassessment and a 9 year reassessment. The 9 year is a physical knocking
on doors and inspection of properties. The nine year needs to be funded 1/9 each year, the 3 year is
already budgeted 1/3 each year.
Article 15 & 16 rescind the debt for the gym wall and roadwork maintenance, our recommendation would
be to put the funds in capital stabilization and withdraw these articles.
The Finance Committee decided not to present a 1/3/5 year plan at this Special Town Meeting because
there is not enough time to produce a plan based on good information. The goal is to have a 1/3/5 year
plan by the time budgets are presented in January. We will present our goal and objectives and will use a
future meeting to discuss our presentation.
Closing comments
Attend the 10/24 Board of Selectmen meeting to discuss our recommendations.
Next meetings 10/25 and 11/1.
We would like to be included in the meeting with Moody's.
Adjourn
Motion to Adjourn (Wilk/O'Brien)
Roll call vote: Bazinet aye, Chemburkar aye, Christo aye, Feely aye, O'Brien aye, Schoonveld aye, Chairman
Wilk aye.
C(erlc JJ6I C/ Dade = i/i o /l.3
Page 12