Finance Committee report 9/3

The Finance Committee heard from the Budget Director that free cash from FY09 will amount to about $3.5 million dollars.
In discussing what should be done with the funds, the committee suggested

>That $1.1 million be placed in the Stabilization Fund to meet the target for replenishment of that fund.
>That about $1.1 million be used to fund capital projects that were not funded this year due to concerns about revenue.
>That $500K be placed in the Stabilization Fund to cover the likelihood that state aid will be cut mid year this year. Ms Jenkins pointed out that traditionally state budget revenues lag economic recovery and in past turn downs, the largest cuts in aid occurred after the economy began to rebound. Mr. Lynam pointed out that the state did not fund $1 million dollars in Chapter 70 aid at the end of last year and the difference was made up with federal stimulus funds which may not be available this year.
>That some amount of money be set aside for a capital needs savings fund. $500K was advanced as an appropriate amount. These funds would be used to fund capital projects annually until revenues were available to increase services such as a full day kindergarten. The reasoning behind this approach is that the money would be segregated and readily tracked in this manner. If it is distributed among departments, it becomes difficult to pull back out in the future.

A draft warrant was presented by Mr. Iacaponi. This warrant is very preliminary with few dollar amounts included. There are the standard housekeeping articles ...

... with line item transfers and unpaid invoice appropriations. There will be a few street acceptance articles, a capital improvement appropriation, acceptance of new flood zone maps from FEMA, an article to accept an chapter of Mass General Law to place handicapped parking fines in a special account fro handicapped access, an article to adopt a bylaw to require that US flags purchased by the town be made in this country, the Community Preservation Committee (CPC) will present articles for funding projects, and there may be an article to borrow for purchase and installation of wind turbines.