Board of Selectmen, October 7, 2015

HOLDEN BOARD OF SELECTMEN

SPECIAL MEETING MINUTES

OCTOBER 7, 2015

6:30 PM                                                                                              Starbard Building

Present: Chairman Jeremy Kurtz, Anthony Renzoni, Robert Lavigne, Tim Ethier, and Kenneth O’Brien (7:25 p.m.)

Others Present:           Jacquelyn Kelly, Town Manager

                                    Peter Lukes, Assistant Town Manager

Chairman Kurtz called the meeting to order at 6:30 p.m.  He explained that the purpose of the meeting was to discuss selectmen goals for the FY 2017 Budget.  He distributed a list of suggested goals from other selectmen that he had compiled.

There were some goals that had a common theme.  One of these was a goal to limit taxation to below the limits allowed by Proposition 2 ½. A similar goal had been adopted in prior years and there was consensus that this goal should remain as the board was unanimous in its interest in giving taxpayers a break and maintaining affordability. 

On a motion by Mr. Lavigne, seconded by Mr. Renzoni, it was voted (4-0-0) to adopt a goal to limit the increase in the FY 2017 budget/ tax rate to 2 ¼ % (rather than 2 ½ %).  

Chairman Kurtz presented another common goal of creating an open space acquisition stabilization fund in order to accumulate resources to purchase and protect open space parcels of land.  Mr. Ethier commented that this was consistent with the Agricultural Commission’s presentation at the last selectmen’s meeting and was an important part of the Master Planning Committee’s report. 

On a motion by Mr. Renzoni, seconded by Mr. Ethier, it was voted (4-0-0) to create a stabilization-type fund to be used to acquire open space. 

The discussion then turned to the recent problems with five-town support for the School District’s annual budget.  For a number of years, the proposed district budget had not been supported by the required four out of five towns and the district had been forced to reduce the budget and cut educational services.  Although Holden had approved its full share of the assessment, when cuts were necessitated, they were spread throughout the five towns including Holden. 

Mr. Lavigne said that the Town of Holden could not provide supplemental funds to support salaries, but we could vote supplemental funds (in addition to our assessment) that could be used for technology, learning materials, books, etc.  There was agreement that the Town should explore ways to supplement Holden schools if the district’s budgets and educational programs continued to be cut because other member towns could not pay their fair share. 

On a motion by Mr. Renzoni, seconded by Mr. Lavigne, it was voted (4-0-0) to develop a budget/ mechanism to provide capital educational enhancements in the Holden elementary schools.

The Board’s discussion turned to the Infrastructure Investment Fund (IIF).  The Internal Revenue Service considers the IIF to be a ‘sinking fund’ or a fund into which periodic payments are made for the purpose of paying debt service.   However, the IIF garners interest and the practice of paying debt on tax-free bonds is discouraged by the IRS.  The IRS’ view is that if there is cash available in reserve, cash should be applied to the project, rather than to pay debt service on tax-free bonds.  In the most recent sale of bonds, the Town was required to certify that the IIF would not be used by pay debt service.  The current balance accumulated in the IIF is approximately $1.3 million.

Mr. Renzoni said that putting the IRS’ opinion aside, these funds are taxpayer funds; their use should be voted on by the taxpayers at Town Meeting and should not be held back from Town Meeting by an appointed board of trustees.  He was in favor of abolishing the IIF and re-allocating its balance to other town funds.

Mr. Lavigne agreed and added that some of the $1.3 million could be allocated to the Open Space Fund.  There was further discussion about another fund that the Selectmen and Finance Committee had discussed in the past and that is establishing a Town Building/ Facility stabilization fund.  This fund could be used to maintain the Town’s existing properties, support capital projects, and possibly land acquisition for town facilities.

On a motion by Mr. Renzoni, seconded by Mr. Lavigne, it was voted (5-0-0) to create a new stabilization-type fund to accumulate resources that would be used for maintenance, capital projects, and other needs to support the Town’s buildings and facilities, and to develop and implement a plan to dissolve the IIF and reallocate the funds into the Open Space Fund and the Town Building Fund.

The Unaccounted for Water Remediation Plan was also a common goal among some selectmen.  Although staff had developed a multi-step plan to reduce UAW, the selectmen agreed that the plan should be reviewed and updated and revised if necessary.

On a motion by Mr. Renzoni, seconded by Mr. Lavigne, it was voted (5-0-0) to establish a goal to update and revise if necessary the Town’s plan to address Unaccounted for Water.

Mr. Lavigne discussed one of his suggested goals to increase the number of patrol officers at the Police Department.  He had done some research and explained that Holden had a low ratio of officers to population compared to other communities of equal size.  There was discussion about these statistics and the current staffing and budget of the Police Department.  Ms. Kelly suggested that she and the Chief analyze the current and future needs for staffing at the Police Department.

On a motion by Mr. Lavigne, seconded by Mr. Renzoni, it was voted (5-0-0) to ask the Town Manager’s office to conduct a staffing analysis of the Police Department and provide a recommendation.

The Selectmen discussed prioritizing these goals.  On a motion by Mr. Lavigne, seconded by Mr. Renzoni, it was voted (5-0-0) to prioritize and reorganize the goals as follows:

The meeting was adjourned by consensus at approximately 8:30 p.m.

APPROVED:              November 2, 2015