Back to Advisory Committee Minutes
January 11, 2011 Meeting Minutes
Hingham Town Hall
Present: Committee Members Manning, Asher, MacCune, Eldredge, Farrell, Friedman, Innis, Marwill, O’Meara, Power, Pyles, Johnson, Ellison, Dwyer, Kirven
1. Call to order
Chair Jack Manning called the Advisory Committee meeting to order at 7:08 PM.
2. Introduction of New Committee Member
Jack introduced Ron Kirven as a new member to the Committee, replacing Andy Mooradian who resigned in November 2010.
3. Approval of Minutes
The minutes of the December 14, 2010 meeting were approved by a unanimous vote of the members present. Ron Kirven abstained as he had not participated in the meeting.
4. Forecast Update
Ted Alexiades presented an updated five year forecast. Significant changes from the previous forecast include an increase in FY 2011 revenue related to new growth, a proposed reduction in the 2012 capital outlay to $1.2 million and a reduction in estimated FY 2012 health insurance premiums based on a lower projected rate increase and enrollment activity through the first six months of FY 2011.
Ted noted that he is expecting a surplus for FY 2011 of approximately $1.2 million and proposes that a portion of the surplus be used in FY 2011 to pre-pay the FY 2012 OPEB contribution. Assuming Ted’s proposal is executed, he is projecting an FY 2012 surplus of approximately $343,000; however, Ted noted that there are a number of potential needs that are not currently budgeted for, including improvements to the Derby Street corridor and certain requests from the police and fire departments, among others. Ted also noted that he is concerned about reducing capital expenditures from $2.0 million to $1.2 million as it would result in difficult choices with respect to deferred capital projects. Ted stated that the forecast does not include any proceeds from sale of the Town-owned Hersey House.
Ted provided his observations on the Town’s FY 2011 operations to date noting that revenues are on target with small surpluses and no deficits on the horizon. With respect to expenses, Ted is expecting surpluses, but not of the magnitude realized in FY 2010; however he does expect deficits in snow and ice and legal.
There was a brief discussion of the Town’s unfunded pension obligation. Ted, who also serves as chairman of the Town’s retirement board, noted that retirement board is adopting a more conservative investment strategy; accordingly, he expects that it will take longer for the Town to achieve full funding of the pension liability.
5. Budget Hearings
The Committee heard FY 2012 budget presentations from the following departments (no votes were taken):
Department |
% Change from FY11 |
Comments |
Treasurer/Collector |
+1.02% |
Level services/level funded with additional request for $3,500 to replace folding machine |
Assessors |
-6.84% |
Reduction from prior year due to non-recurring revaluation service in FY 2011. Noted that Lane Partridge has given notice. Concern over antiquated software. |
Town Clerk |
+2.34% |
Level services. |
Elections |
-25.73% |
Reduction from last year as there is no September primary or November election scheduled. There will be an additional request of $6,200 for a mandated mailing to all voters to communicate the congressional redistricting that will result from the 2010 census. |
Community Planning |
-1.23% |
Overall reduction due to consolidation of departments. It was noted that there could be a request for a fund transfer in 2012 if there is an uptick in building permits. |
Bare Cove Park |
+0.46% |
Level services/level funding |
GAR Hall |
0.00% |
Level services/level funding. |
Reserve Fund |
+3.97% |
No significant change from prior year |
Selectmen |
+3.50% |
Needs to be viewed together with Town Accountant due to reclassification of certain costs from prior years. Additional request of $5,200 for stenographer. |
Town Accountant |
-28.02% |
Cost of the annual audit has been allocated among the entities subject to audit and there was an increase in IT costs for support agreements. |
Legal Services |
0.00% |
Discussion as to adequacy of budget in light of current litigation and past legal needs of the Town. |
Town Meetings |
-1.42% |
Level services/level funding. |
Town Hall |
-2.52% |
Level services/level funding. |
South Shore Country Club |
0.00% (net) |
Increases in revenues and expenses due to expanded offerings and enhanced services. No net budget impact. |
6. Reserve Fund Transfer
Jack introduced a request for a reserve fund transfer in the amount of $10,000 to partially fund Sunday openings at the Library, the remainder of the funds to be provided from a grant from the Rhode Island Foundation. Dennis Corcoran, Library Director, and Ed Siegfried, Library Trustee, provided background on the need for the funds and the conditions under which the Rhode Island Foundation would provide funding.
Upon a motion duly made and seconded, the Committee voted to approve the transfer in the amount $10,000. Dennis Friedman abstained from the vote and Amy Farrell recused herself.
7. Update on Veterans’ Housing
Karen Johnson updated the Committee on the progress of the veterans’ housing to be developed on Fort Hill Street. She noted that the Selectman voted to approve the project on January 4, 2011 and that it appeared all the concerns of the neighbors and Veterans’ Council had been addressed.
8. Meal Tax Article
Dennis Friedman introduced the meals tax article and his proposed comment. After brief discussion and upon a motion duly made and seconded, the Committee voted unanimously to approve the article.
9. Next Meeting
The next meeting of the AdCom is scheduled for January 25th, 2011 at 7:00 PM.
10. Adjourn
The meeting was adjourned at 10:32 PM.
Respectfully submitted,
Greg MacCune, Secretary