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Town of Lunenburg
Lunenburg Finance Committee DRAFT
06-28-18
Finance Committee:
Terri Burchfield, Chairman
John Henshaw, Vice-Chairman
Jay Simeone, Secretary
Mark Erickson
Hannah Anderson
George Martin
Marc Luescher
Location: Town Hall
Present: Terri Burchfield, Mark Erickson, Jay Simeone, George Martin, Marc Luescher
Absent: Hannah Anderson, John Henshaw
Guest: Dave Passio, Rhonda Lizio, Karen Brochu - Town Accountant, Dave Rodgers
1. The Chair called the meeting to order at 7:00 pm.
17 Main Street, P.O. Box 135
Lunenburg, MA 01462-0135
978.582.4139
FAX 978.582.4148
2.Comments:
a. Public: Dave Passio: Has been following the Town of Ashby for the past six months. Ashby has been
working on doing some projects using short term borrowing exactly as he was attempting do with the
demolition of the Primary school. The have approved debt exclusions that will be payed for in one year.
The Ashby taxpayer has agreed to pay $634.85 in one fiscal year to accomplish the projects. Projects
include: buying a new Ambulance, feasibility study for Public safety, plus two or three other projects in
the $200k to 500k range. There debt level is presently very low. The citizen understand the importance
of supporting there infrastructure and willing to do it with short term borrowing. Turn out for election was
about 22% of the total population. There total population as of 2016 was 3222. The spread of how the
spend there money in town is similar to Lunenburg. Schools- 52.5%, Police-10.8%. Fire protection is low,
they still fund there own dispatch. Concerned that we spread out our borrowing over such a long period
of time, strapping the taxpayers and forced to tax to the max.
The Chairman asked if they fund there capital this way all the time? Dave was not sure but will find out.
b.Rhonda Lizio thanked Mark Erickson for his service on the committee. Mark has served 9 years on the
Finance committee. This is his last meeting.
c.Mr. Dave Rodgers, 82 Highland St.
Commented on the $100K for the unfunded health and retirement versus the total large obligation of
about $35M for OPEB.
Concerned about budget process of the schools. Feels that not enough time is spent reviewing the school
budget because its such a high budget number. Dave referenced a comment from Selectmen Luck at a
previous meeting about the school budget going up about $1M a year.
Mark commented that we share Dave's concern regarding the increases in school budget is not
sustainable, that has been a concern for years. Previously the school committee had asked for 9%
budget increase and we approved 5.5%. If we increase the School budget by 5.5% each year and
revenues only go up 3%, we are disproportionately putting more funds to the schools. The School
committee has line item control of there budget. The Finance committee and the Selectmen only
approves a budget amount.
Dave commented that department heads should be realistic in there budget request based on what town
revenues are.
Dave would like to see a review the total cost of employee position cost and feels the number
would be a surprise to people.
Dave commented on the Charter review committee: after watching a recent meeting on the cable
channel, he asked the Chairman, who is a member of the Charter review committee, about the vote to
not bring it back to the Special Town meeting, but to bring to the annual Town meeting. The Chairman
replied to Dave's comment and also deferred to Mark, also a member of the Charter review committee,
who gave a detailed response to Dave's question.
Dave Passios: wanted to clarify the $1M dollar figure that Dave Rodger's questioned he heard Selectmen
Luck state. That figure is the approximate total cost of the new teachers contract over the next 3 years.
Salary increases only.
New Communications:
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Available on the Town website.
3. Review of financial policies: Board discussion about the tax levy and the budget:
George asked for an explanation of the "Tax Levy". Is the Levy is last years base, plus new growth, plus
the annual 2.5% tax increase?
The Town Accountant replied: Back out prior years debt exclusions that was raised within the levy, your
get to the base from the prior year, plus new growth, plus the 2.5%, becomes the new base for the
current fiscal year, and then what ever we have to pay in that year for debt exclusions is added to that
dollar amount to come up for the total levy.
The base can only increase 2.5%. An override is needed to raise taxes over the 2.5%.
Discussion on the needs and objectives of taxing to the levy: We tax to the max levy because of the
demand for service staff levels, the needs of departments we hear about during the budget presentation
every year.
General discussion/review of financial policies: stabilization funds, debt, OPEB, bond rating criteria of
bond rating agencies. Reviewing how our debt load has an effect on our bond rating.
Marc is looking at several other local town budgets and doing a comparison to Lunenburg.
General discussion on school regionalization.
George is working on building a data dashboard to show budget data and how a budget comes together.
4. Review of minutes: Minutes of 06-05-18, Marc motion to approve, Mark seconded. All in favor. 5-0
5. Town Manager/Financial officer reports: Tax lien auction was held. An estimated $500K collected as a
result of tax lien auction. Sold 4 tax liens. Real Estate taxes are usually at 98%. Out Local receipts look
good. Thru the end of May, receipts are $250K higher than estimated. Working on year end closing.
Departments should be able to handle any transfers with in there department budgets.
6.Public comment: Dave Passios: Asking when the town is in good financial position, why do we not pay
down debt? General response was the Town has never to seem have any extra funds to pay down debt.
Department needs have absorbed funds. Dave commented that several comments at Town meeting
referred to paying down debt versus funding stabilization funds.
7.Next meeting: July 12, 2018
8.Adjournment: Mark made a motion to adjourn. Marc seconded the motion. The committee approved
the motion 5-0 at 8:15 pm
Submitted by Jay Simeone
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