TOWN OF KINGSTON Finance Committee 26 Evergreen Street Kingston, MA Minutes Training Session II October 21, 2015

Transcription

1 Minutes Training Session II October 21, 2015 Chairman Mary MacKinnon opened the meeting of the at 6:05 PM at the Council of Aging, Meeting Room. Other members present were Carl Pike, Claire Soares, Dana Atanian and Andrew McKenna. An orange three-ring binder were distributed for this and future training sessions. Supplemental handouts were passed out as well. FY 17 Budgets from FinCom #131 Total Request: $8, Upon Motion made by Claire Soares and seconded by Carl Pike, it was unanimously VOTED: to recommend the budget as follows: Personal Services In the amount of $5,359.00, and Other Expenses in the amount of $3, for a total of $8, [5-0-0] # 132 Reserve Fund Total Request: $100, Upon Motion made by Carl Pike and seconded by Claire Soares, it was unanimously VOTED: to recommend the Reserve Account in the total amount of $100, [5-0-0] Training Series Agenda Fall 2015 Session II Municipal Finance topics: Continue revenue topics Schools Minimum Contributions, Net School Spending and more Other topics as time permits Free Cash certification Review of Capital Planning departmental roundtable Update on Police Station building project Update on Library project Director has requested an appt. Mail/Correspondence Minutes Upcoming Meeting Dates: October 26, Tri-Town meeting, Halifax at 7:15 pm Great Hall meeting room, 2 nd. Floor Halifax Town Hall, 400 Plymouth Street, Halifax, MA Nov. 9 KES/KIS school committee, KIS library Nov 12 SLR school committee, SL Middle School library Minutes Oct. 21, 2015 Page 1

2 Nov 16 FinCom Training #3 tentative KEMA: There may be a funding change for KEMA due to the expected closure of the Pilgrim Power Plant. Currently the Fire Department and KEMA receives an $85,000 grant for special training and response for disasters. Capital Planning Committee: The Capital Planning Committee, of which Mary MacKinnon is Chairman held a roundtable discussion with various departments seeking funding for FY17. An update on the Police Station building project was made, and they will be coming before the Special Town meeting next April 5 th. The Library Building and Study Committee will be appearing before the Annual Town meeting in June for authorization to go for a construction grant. The Town s Free Cash has been certified at $2.4 million. Committee Vacancy: Mary MacKinnon and Janet Wallace will be interviewing applicants to fill the FinCom vacancy. Calendar and Dates: The Master Planning Comm. Held a three day workshop this past weekend. Town Meeting dates have been set: Special Town Meeting April 5, 2016 (Tuesday) Annual Town Meeting begins on Saturday, June 11, 2016 at 9:00 am. A draft calendar has been handed out tonight, any questions please Mary. State Aid: State Aid, local receipts and Free Cash were reviewed. Kingston ranked 141 out of 351 cities and towns for State Aid in FY 15. ( Lawrence received 68%.) These funds are money received from the State to support services we provide, education aid and general. FY 03 FY 16 fairly flat changes in State aid. We pay to send out students to Charter schools, and the state sets the rate per student at $10,665. In FY13 we had 21 students, and in FY 16 we are up to 48. Reasons parents send their children to Charter schools for longer school days, better curriculum, and smaller class sizes. Minutes Oct. 21, 2015 Page 2

3 76% of State Aid comes from Chapter 70, Education and 19% is considered UGGA (unrestricted) State Aid, which is computed based on property wealth. The formula ignores other income/wealth factors. Where do these funds come from? State withholdings, 5.15 % withholding tax, corporate Income tax at 8%, Lottery sales, fees from the Reg. of Motor Vehicles. Does not include Excise tax which stays as a local fee. Gasoline, cigarettes, and sales tax, tolls, tourism and casinos. How do we get it back? (See pages 9 & 10) of your booklet, pink sheets, labeled Cherry Sheet Receipts, and Cherry Sheet Charges. Take the total receipts, subtract the charges, and this is what we get in state aid. Chapter 70, done by the Mass. General Laws, Chap. 70. $4.1 million based on a formula since Receipts from the Cherry Sheet, Education: Chapter 70, charter tuition reimb. General Government: Unrestricted, Veterans benefits, Elderly exemptions handled by Assessors office. State owned land and aid to public libraries. Charges from the Cherry Sheet County Assessments, State Assessments, Transportations authorities and Tuition assessments. How do we budget State aid? State spending growth outpaces revenue growth. Funding of new programs limits available resources to distribute. Charter schools, opioid crisis, DCF services, OPEB, etc. and more. Local Receipts 1. Motor vehicle excise - # 1 source in Kingston 2..75% of 1% - Meal Tax - $248,000 last year 3. Other Boats, farm, etc. 4. Excise Penalty & Interest 5. Pilot Payment in Lieu of taxes Non-town Net Metering payment comes to town, we cut a check to No Focal Fuels, to the tune of $1,800,000 (for three turbines), and we collect 1% or $18,000 for our efforts. For the past few years we had to appropriate funds against this item, which causes us to put it on the tax levy. This is a problem that has been raised with Town officials in the past. Something needs to be done. The Assessors Certified new growth this week. More attractive to buy new cars, provide charging stations, efforts with local car dealerships. More restaurants, increased in meals tax Minutes Oct. 21, 2015 Page 3

4 More businesses, increase in licenses and permits Review of license and permits structures. Town business opportunities: solar arrays, car charging stations, field rentals and more. Free Cash: $2.481 million has been certified. These funds come from unexpended appropriations, turnbacks, or revenues that exceeded our estimates, and free cash that remains from prior years. Target is 3% of prior year adjusted omnibus budget, Min: ½ % of previous year adjusted, and maximum 7.5% of prior year adjusted. Turnbacks could be over budgeting. Example of changes in Free Cash, in FY 10, only $700,000, and FY 15 it is $2,481,256. Average is $1,738,195. Free Cash for the Water Dept. FY 14 $500,612 and in FY 15 it is $1,013,378. This is a significant growth in one year and needs to be analyzed. Were the rates raised too high for our water customers? Terms to understand: Fiscal Year July 1 June 30 th Appropriation sum of money authorized for a specific period of time to accomplish a specific purpose. Raise and appropriate Tax Levy Cherry Street / State Aid Debt Exclusion (temporary) Override (permanent) Funds: General, Enterprise and Revolving Free Cash Chapter 70 (Education) Chapter 90 (funding is based on miles of public roads in a town) End of Session discussion included: Revenues where do they come from? What are the different types of revenues? What can we do to manage and maximize revenues? How decisions impact the tax rate and our residents Much of this information is available on the State s web site, Mass.Gov/DOR Expenditures will be discussed at our next session. Minutes Oct. 21, 2015 Page 4

5 Minutes: Minutes of May 12, 2015 Upon Motion made by Carl Pike and seconded by Claire Soares, it was VOTED to approve the Minutes of May 12, 2015 by a vote of: ( Dana Atanian and Andrew McKenna abstained as they were not members at this time.) There being no further discussion, Upon Motion made Carl Pike and seconded by Andrew McKenna it was unanimously VOTED: to adjourn at 7:50 pm. Respectfully Submitted, H. Claire Soares Minutes Oct. 21, 2015 Page 5