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Town of Hingham
Advisory Committee
October 13, 2009 Meeting Minutes
Hingham Town Hall
Present: Committee Members Seelen, Manning, Asher, Dwyer, Eldredge, Ellison, Farrell, Friedman, Innis, Johnson, Lauter, MacCune, Marwill, Mooradian
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1. Call to order
Chair Jerry Seelen called the Advisory Committee meeting to order at 7:37 PM.
2. Approval of minutes for September 15
The Committee reviewed and unanimously approved the minutes for September 15th.
3. Financial and Budget Update
Town Finance Director Ted Alexiades informed the Committee that with regard to the $1.1M operational override approved at ATM 2009, only $272,702 will be included in the FY10 Tax Levy.
• Federal educational stimulus grant funds of $965K were used to offset $137K of State Aid reduction, leaving ~$828K to reduce the Tax Levy impact of the override
In presenting the latest Five-Year Forecast, Ted noted that:
• FY11 New Growth has been reduced from $1.2M to $800K due to slower-than-anticipated growth at Erickson’s Linden Ponds development
• FY11 Motor vehicle excise tax revenue @ $3.15M—the same as the FY10 estimate—and FY11 Investment income @ $400K—down $50K from the FY10 estimate—bear watching
• Of highest priority, to begin to prefund OPEB, an OPEB contribution of ~$1M is proposedo Were the Town to choose to fund OPEB annually only on a pay-as-you-go basis, the Unfunded Actuarial Liability would almost double to over $118M vs. the ~$64M anticipated if the Town fully prefunds OPEB annually and assumes an 8% annual return on assets
• Of next highest priority, to begin to rebuild General Fund Balance (Reserves), a General Fund Balance Reserves contribution of $500K is proposed
o ~$270K/year at 3% inflation would be required just to maintain the current Fund-Balance-to-Expenditure ratio of ~10.96%
o ~$500K/year at 3% inflation would improve the ratio to ~20% (a recommended minimum for AAA-rated communities) within approximately 20 years• Capital Outlay is proposed at $2M
o This represents a resumption more in keeping with historic Capital Outlay expenditures over the $125K budgeted for FY10
o This figure does not allow for any large potential capital expense such as Middle School repair/refurbishment• If these proposals are accepted, ~$77.1M would remain for Article 6 budget purposes, implying a 5.5% across-the-board reduction in operating expenses if no additional revenue is forthcoming
o Some departments would have to cut more than 5.5% of work hours to accommodate the impact of salary step increases
The Chair asked for the Committee’s reaction to the budget process and proposals.
• There was general consensus that the FY11 forecast represents a good starting point, but that the impact on services needs to be better understood
• It was also observed that meaningful capital planning should be extended to a 20-year horizon to gain a more accurate understanding of a reasonable annual run-rate
The Chair indicated that he and Ted are working to update the Town Financial Policy, last revised in 1993. Actions taken during this budget ‘season’ will likely impact how the Policy is modified.
4. Town Administrator’s Update
Town Administrator Kevin Paicos informed the Committee of his 22 goals and objectives to be completed during FY10. He described the three re-organizations included in his goals and objectives in greater detail.
• DPW Reorganization Plan
o Going through its third iteration
o Will generate substantial savings• Planning and Inspection Department Reorganization Plan
o Savings may be realized since the pace of development in the Town has slowed. Also, streamlining could lead to greater efficiencies and consequent savings.
• Executive Office Reorganization Plan
o Will be completed around the end of October
An extended discussion ensued regarding the impact of elimination of the Benefits Coordinator position in the FY10 budget. Kevin stated his desire for reinstating funding for the position for the full fiscal year. It was agreed that the matter will be discussed first with the full Board of Selectmen to arrive at a coordinated position prior to Kevin’s return before the Committee
5. DPW Building Projects Update
Bob Garrity, Chair of the DPW Building Committee, indicated that the DPW/Fields Project is just about complete. An Open House will be held on October 24th.
The financial estimate for completion is ~$8.81M of the ~$8.96M authorized, leaving a projected surplus of ~$148.3K. However, the surplus will likely be used to pay for many items in the original scope which were deferred. The cost of all deferred items is ~$163.9K.
The skateboard park, for which funding in the amount of $175K has been reserved, is on hold pending further direction from the Board of Selectmen.
The playing fields will be maintained by the South Shore Country Club staff, but Bob was uncertain who would be scheduling field usage.
Bob cited the excellent work of Town Project Engineer Roger Fernandes, who managed upwards of 25 different contracts and, in Bob’s estimation, saved the Town at least $2M in so doing.
A taxpayer in the audience made the observation that all the off-season DPW equipment would not fit in the new Cold Storage building, necessitating the continuing use for equipment storage of the old DPW building at 101 Hersey Street. The Chair indicated that the Committee’s DPW liaisons would ask the DPW Superintendent about the space issue.
6. Rules Committee Status Report
Chair Jack Manning indicated that the Rules Committee will be prepared to present its recommendations at the Committee’s next meeting on November 17th.
A draft of the Rules Committee recommendations will be circulated electronically at least one calendar week prior.
7. Cable TV Update
Irma Lauter directed the Committee’s attention to two documents describing the City of Medford’s difficulties with its non-profit community cablevision operating and management corporation.
• “Report on present state of Public Access Television in the City of Medford” by City Solicitor Mark E. Rumley, dated February 10, 2008
• “Medford Community Cablevision, Inc. and TV3 Medford Hearing Results, Findings, and Recommendations” by Hon. Marie O. Jackson Thompson, dated August 5, 2009
The Chair signaled that during the Committee’s November 17th meeting, he will ask the Committee to vote on whether to formally recommend to the Board of Selectmen that the Hingham Cable TV Advisory Committee’s latest proposal be brought before Town Meeting
8. General Business
The Chair asked that any problems with new liaison assignments be brought to his attention.
The Chair noted that the State has issued amendments to the ethics laws, and that all Town employees (including Committee members) will be required to take tutorials on the changes. Ted Alexiades’ office will assist in planning this effort.
Amy Farrell asked if Committee members saw value to meeting on an upcoming Saturday with the School Department to gain insight into its FY11 budget planning. Receiving input in the affirmative, Amy requested that requests for specific topics be sent to her.
9. Adjourn
The Committee meeting adjourned at 10:56 PM.
Respectfully submitted,
Jonathan R. Asher, Secretary