DRAFT – MINUTES ARE NOT OFFICIAL UNTIL APPROVED BY TOWN COUNCIL- DRAFT
MINUTES
TOWN COUNCIL MEETING
STANDISH, MAINE
TUESDAY, MARCH 9, 2005 - MUNICIPAL CENTER 7:00 PM
Rescheduled from 3/8/05 due to Weather Conditions
CALL TO ORDER
Pledge of Allegiance was recited.
Councilor Simpson explained that the winners of the Recycling Calendar contest here at the meeting tonight. He went on to explain that each grade in the schools is represented so that not one grade would dominate. At this time each student that was present introduced themselves and showed their art work. Councilor Simpson congratulated the all the winners and all the participants. He noted that there was extremely good cooperation from the schools especially from Ginny Day the supervising principal. He said that the school takes on recycling all year long. He said that. in fact, Edna Libby and Steep Falls Schools won the state award for recycling efforts. He said that this year the calendar was produced by tax dollars not sponsors and it is in the budget again this year and hopefully the
Council will support the funding again this upcoming budget year.
ROLL CALL
Councilors present: Christy, Hopkins, Lymburner, Nesbitt, Simpson and Spencer. Councilor Pomerleau was excused.
MINUTES OF PREVIOUS MEETING (S)
The minutes from the January 11th and 22nd meetings were accepted as presented by unanimous consent.
PETITIONS AND COMMUNICATIONS
The Clerk read an email from Irvin Novak a resident of the Middle Jam Road which supported the ordinance amendment regarding weight limits on the Middle Jam Road. A copy of the email is on file at the Town Clerk’s Office.
REPORT OF THE TOWN MANAGER
Ø Managers update included:
The Town will be posted the roads to prevent damage during the frost season from heavy trucks. The Posting will be done this weekend and in force through April 30 unless conditions change. All roads are posted but in some cases only the main access roads have the signage.
Mr. Billington explained that he had received two separate calls from interested parties that would like to talk with the Town regarding the requirements for a boat launches in Standish. One informal discussion will occur this Friday. He said that he was also approached by Florida Power and Light regarding a boat launch on the Saco River near the dam this is an opportunity that they have suggested in the past. They are proposing a boat launch site and recreational area on the Saco River dedicated to Standish residents. He said that in the past the Town was not interested because the access would have been through residential areas. At this time they are proposing the access in another location.
Mr. Billington said that the department meeting this month will be presented by the EMS Billing Clerk. He said that for background information in the mid 1990’s this Town transitioned from a volunteer EMS service to a pay for call service. At that time we were using an outside billing agency. It served us well for a number of years but there were some problems when information was missing causing billing problems. He said that we were not getting the return rate that we thought that we should have been receiving. The Council then approved an in house part-time billing clerk and that was Carrie Brooks who came to work for the Town of Standish. She initially started as part-time but is now working 32 hours a week. He noted that the Town approved the purchase of
billing software that allows for electronic billing which greatly streamlines the process.
Mr. Billington noted the new Fire Chief Martin Joyce was at the meeting tonight.
Carrie Brooks explained that new software has increased the efficiency dramatically. She explained that you can look at the status and age of a claim on the computer without having to pull the paperwork. It allows reports on billing cycles, printing invoices for the patient and status of a bill. She noted that since October the revenues have increases approximately $4,000 a month with the new software. She said that it has paid for itself in a short time. The software and training cost about $16,000 to the Town. The software also has other billing capabilities that may be used in the future for auto accidents or fire calls. Carrie said that she wanted the residents to know that we have many programs available and no one should ever feel that they can’t call Rescue. She
noted the subscription plan and associated fees. In addition the Department is willing to work with payment plans.
Councilor Simpson said that they have always budgeted about $223,000 for revenue for the billing department and have never met it. He said that already into this year we are close to meeting it right now and may exceed it.
Council Hopkins noted that Carrie has gone through training and done an awesome job.
PUBLIC HEARINGS
Fiscal Year 2006 Municipal Budget
Gordon Billington presented a Powerpoint presentation that highlighted the Manger’s budget. He explained the timeline with final approval at the Town Meeting in June.
Louis Stack of Whites Bridge Road thanked the Manager for getting the budget out in a timely manner. He then questioned the $65 million increase in the valuation. Was that based on the recent revaluation?
Mr. Billington said that the state auditor suggests that every three years that an outside agency come in and verify the numbers. He said that the cost of an update by Vision would be approximately $75,000. He said that the Assessor will take the state audit and keep it at their recommended percentage.
Mr. Stack asked about errors and omissions from the revaluation.
Mr. Billington said that the abatements are running at about $66,000 and there was $98,000 in the overlay. There also will be supplements that will draw down that abatement number. There have not been any supplements done at this time.
Mr. Stack asked about the $200,000 coming from reserve. He asked if there was a formula used to obtain that number.
Mr. Billington said we try to project what the impact will be to maintain the undesignated fund balance. He said that projections were done to come to that number.
Mr. Stack questioned that that number will only be available after the audit?
Mr. Billington explained that the mil rate is determined in September by the Assessor.
Mr. Stack said that the reserve will be established by the Council.
Mr. Billington noted that there is an order on the agenda to establish a policy that will set the level of the fund balance.
Mr. Stack questioned the CMP numbers. He said that $31,000 was projected at the end of the year. With a 5.2% increase it should be about $33,000 but the number in the budget is $42,000. He said that number should be looked at. He said that the next item had to do with debt service. He said that you will need $53,825 on one of the bonds and $23,257 on the other. He said that it was his understanding that if you go through the Maine Bond Bank the payment next year will only be interest. He said that the total of those two should be $20,632 rather than the $78,000 noted.
William Orr of Kerri Farms Drive said that you said that the cost of general government went down with the new valuation.
Mr. Billington said what you see in the reduction is because we had more money in last year that was spent against the revaluation.
Mr. Orr said as the town grows costs will go up disproportionably with the growth.
Mr. Billington said that the town will have $12 million in new value this year against a valuation of $880 million is around a 1.5 % growth. He said that is the exact increase that you are seeing this year. You have offsetting revenues for that.
After a Public Hearing without additional Council or public discussion the hearing on the budget was closed.
169-04 Amendment to Standish Town Code, Chapter 181, §§ 181-3 and 181-14(c), to Clarify the Standards to be Applied by the Planning Board in Reviewing Back Lots/Private Ways [Spencer]
Moved by Lymburner Seconded by Nesbitt to dispense with the Clerk’s reading of the ordinance. (Unanimous)
Councilor Spencer explained that this clarifies the method of approving private ways.
Councilor Lymburner asked if the Planning Board had held the Public Hearing on this issue.
It was announced that the Planning Board had held the hearing.
After a Public Hearing without additional Council or public discussion the hearing was closed.
VOTE: 6 Yeas – 0 Nays
26-05 Application Submitted by Michael Baptista and Elaine Burnham dba Acres of Wildlife Campground, Inc for Renewal of a Malt, Spirituous and Vinous Campground License [Christy]
After a Public Hearing without additional Council or public discussion the hearing was closed.
VOTE: 6 Yeas – 0 Nays
27-05 Application Submitted by James Para dba Standish House of Pizza, Inc for Renewal of a Malt Restaurant License [Christy]
Chair Christy asked if the application was in order.
The Clerk said that it was.
After a Public Hearing without additional Council or public discussion the hearing was closed.
VOTE: 6 Yeas – 0 Nays
COMMITTEE REPORTS
Councilor Nesbitt noted that there are still openings on some committees and interested parties can contact Mary.
Councilor Simpson said that you have the report of the Recycling Committee and Gordy has given information regarding the Finance Committee. He did note that excise tax money was ahead of the projections. He noted that there maybe an overrun in solid waste and salt costs due to increase in fees. He said that the Finance Committee met with Public Safety and Public Works. Next week Recreation and all other department’s budgets will be reviewed on Monday. Donations will be reviewed on Wednesday; the review of the budget should be completed by the end of the month.
Councilor Nesbitt said that the Economic Development Committee will meet on March 30 in Fryeburg to discuss tourism. He said that as we look at the bills before the legislature regarding multi-use of Sebago Lake and how that influences Standish. He said that is a good example on how the Council can help coordinate bringing some of these things together.
Councilor Hopkins said that she wanted to be careful because we have a number of activities coming on and the Chair should give direction so we are not working on cross purposes. She said that she had yet to hear from Mr. Lunt regarding scheduling the Steering Committee Meeting. She said a date had been suggested but she had not heard back from them. She noted that the Personnel Committee had finished their deliberations and only have a few items to review with Gordy.
Councilor Lymburner said that the Public Safety Committee discussed with the Public Safety Department to hold the Annual Fair at the same time as the Public Safety Departments Open House. She said that the Committee has purchased smoke detectors that will be placed on fire trucks to be given to people that need them. The remainder of the un-issued smoke detectors will be available at the Public Safety Fair. Councilor Lymburner explained that the Committee has $6,100 in their funding that had to be used by the end of March. The Committee has decided to buy a deliberator for the school within a few months. The Committee has also been working with the Route 113 Corridor Committee. The Committee also continues with the car safety seat inspection program and banner project. Councilor Lymburner
explained that the Public Safety Committee recently has lost two of its members and they are soliciting for new members.
Councilor Spencer said that the Ordinance Committee is working on several items. The Committee also intends to meet with The Comprehensive Planning Committee to discuss common ideas.
Mr. Billington explained that the Council approved a grant application to the DECD as long as all the other communities go along with the plan. One town had to bring the issue to their Town Meeting. The DECD has agreed to wait until the Town Meeting vote before reviewing the grant. Mr. Billington said another item was the Portland Water District law suit to determine their rights to the Northeast Road. He said that we countered their suit saying that there would be other parties that would be harmed if that action took place, that being the State of Maine and the heirs of the proprietors of Pearsontown. The Water District tried to speed the process up by filing another law suit seeking an immediate declaratory judgment claiming they had fee simple title to Northeast Road and we had
no rights. He explained that we countered saying to the court please don’t hear that give and give us expanded time to react to that. He said that last Friday the Water District hand carried the response to the court and mailed it to us. We received it today and have seven days from last Friday to respond to that. He said that today were notified that the motions pending have been assigned to a judge who has started to act on the motions. He has passed one order that the heirs of the proprietors must be joined in the law suit.
Councilor Simpson said that Bill Lunt of Portland Water District has always been responsive in the past with good dialog. Recently he has been silent in fact it may have to do with this. He said that the fencing that they are putting up appears to include the Pine Cove Beach.
Councilor Hopkins said that there were a number of items n the agenda that needed to be discussed. She went on to say that she thought that it was unprofessional for her to have to coordinate the setting up the meeting. She thought that the Water Districts staff could have worked with the Town Manager to set a meeting date. She said that she thought that it was important for the meeting to be held in Standish. She did receive an email saying that the timing was off but has never received another email to set a date. She asked Gordon if he had any information on the date.
Mr. Billington said that the only notice that they have received is the notice of public hearings for the abutters of their properties regarding the future use of the land that they are fencing in and the use of kiosks for open land.
Councilor Hopkins said that it is their ball court now.
CONSENT CALENDAR
No items this meeting.
UNFINISHED BUSINESS
138-04 Application submitted by Kurt Cochran dba Rouge Paintball for a New Victualer’s License Located at 190 Northeast Road (Tabled 10/12/04) [Christy]
This item remained on the table.
20-05 Amendment to Standish Town Code, Chapter 237, Shoreland Zoning, § 237-3,
Applicability and §237-17, Definitions (First Reading) [Spencer]
Moved by Lymburner Seconded by Nesbitt to dispense with the Clerk’s reading of the ordinance. (Unanimous)
Councilor Spencer explained that this is the First Reading of the Ordinance. The change will allow the Code Enforcement Officer to call Portland Water District at any time to determine the high water mark of the lake.
Moved Seconded and Voted to move this item to Public Hearing at the April Meeting of the Council. (Unanimous)
NEW BUSINESS
28-05 Town Council Chair Appointments to Ad-hoc Senior Housing Exploratory Committee [Christy]
Chair Christy explained the varied background of the members.
VOTE: 6 Yeas – 0 Nays
29-05 Town Council Appointments to Various Boards/ Committees [Nesbitt]
Moved by Nesbitt Seconded by Hopkins to amend the order by adding the name Robert Beane to the order. (Unanimous)
VOTE ON ORDER AS AMENDED: 6 Yeas – 0 Nays
30-05 Emergency Amendment to Standish Town Code, Chapter 263 Vehicles and Traffic, § 263-3, Weigh Limit on Middle Jam Road [Spencer]
Councilor Spencer explained that the change was brought forward from Roger Mosley the Director of Public Works.
VOTE: 6 Yeas – 0 Nays
31-05 Amendment to Standish Town Code, Chapter 263 Vehicles and Traffic, § 263-3 Weigh Limit on Middle Jam Road (Introduction) [Spencer]
Moved by Lymburner Seconded by Spencer to dispense with the Clerk’s reading of the ordinance. (Unanimous)
Moved Seconded and Voted to move this item on to First Reading at the April meeting of the Council.
32-05 Emergency Amendment to Standish Town Code, Chapter 181 Land Use, § 181-32 Range Ways and Future Streets [Spencer]
Councilor Spencer explained that this was brought forward to protect all of our range ways regardless of the width. He said that it has come to his attention that there is some wording that may need to be deleted under Section B.
Councilor Simpson said that he would offer an amendment to delete all of Section B. He said if you read it, it does not even pertain to range roads. He said that it was his understanding that this wording came from another town’s ordinance. It talks about proposed new streets, and that the right-of-ways can be located on the ground. It talks about the purchase of the right-of-way at fair market value. He said that it does not read right.
Councilor Spencer said that he concurred with Councilor Simpson. He said that he should have looked at it stronger. The wording did come from another town and it is really not appropriate for Standish. Section B is really not what we want for the range ways. He said that he would like to delete it now.
Gordon Billington said that the discussion that he heard in the Ordinance Committee was to protect range ways in such a manner for buildings that are built close to the range ways wouldn’t prevent the range ways from being developed. He said as it is written here it talks about encroachments and that should be rewritten. He stated that right now you would have side setbacks if you would build by a range way but it would setbacks the front setback it was built in a certain way. This needs to be reworked to protect the range ways from encroachments for setback purposes. The intent was that when the Planning Board applied this and looked at development close to the range ways they could deal with the setback issue. So they could make sure that development close to the range ways were handled in a way to protect the
range ways. He said that he would recommend that this is sent back to Committee to have that aspect reworded.
Councilor Hopkins said her comments may be moot at this point. She had questioned what Section B had to do with Section A. She said that she had a question about A. (2) that spoke to private structures being constructed in the range way.
Moved by Hopkins Seconded by Spencer to Move this ordinance back to Committee.
Councilor Lymburner said that this was brought forward as an emergency because we are currently under pressure now for development of property within our range ways. She said that is why it is being brought forward as an emergency and a regular ordinance to protect the range ways. We currently have protection for the currently used range ways but not the rest of the undeveloped range ways. She said that she would like to offer a suggestion to drop section B and just pass the emergency amendment to include Section A. (1) and (2), and use that while we are in committee working on something better. That way we could accomplish protecting the range ways while working on better language for the regular ordinance.
Gordon Billington said that would give a tool to the Planning Board to use if you did that. It may not be the full tool that they are looking for. He said that the section on the eight rod way was adopted due to some encroachments on Oak Hill Road. He noted that the eight rod ways were all developed. The other range ways were not developed. He went on to say modifying it in part tends to complicate it a bid for those who brought it forward. He said to answer the question if you pass it after deleting B, it does give the Planning Board a tool to work with and you could pass it now with B being deleted and work on the draft of the full ordinance. What they really need is protecting people from building close to the range ways.
Councilor Hopkins said that she knew that there was a need for an emergency ordinance but she was concerned with the comments tonight and trying to rush something through. She asked if they could come up with a compromise. She said that the Ordinance Committee had a meeting on March 15th. She asked if we table this to committee would that give them enough time to look at the information maybe the revised ordinance could come before us at a Special Council meeting on the 22nd and vote on the emergency ordinance at that time as well.
Councilor Simpson said that he was opposed to go that route. He said that his proposal was going to be what Councilor Lymburner said a few moments ago. He said that Section A. (1) and (2) does what they wanted to do. That section addresses what is needed. He said that B talks about future streets it doesn’t even mention the word range ways. He was going to amend to remove that section. He said that he was generally opposed to emergency ordinances but since there are projects before the Planning Board they need Section A. (1) and (2) now. He said that Section B doesn’t address the issue at all.
Chair Christy said that there is a motion on the floor to table the entire order.
Gordon Billington said that he would speak in favor of that motion. Section A (2) doesn’t apply to all range ways, it only applies to developed range ways. He thought that it should go back to committee to be clarified.
Councilor Spencer said isn’t there something on the books that protects the eight rod ways.
Gordon Billington said that this is it.
Councilor Spencer said that A (2) talks about private structures and takes care of it.
Chair Christy said that there is a motion on the floor now to table the order.
Councilor Nesbitt made a motion to move the question.
Moved by Hopkins Seconded by Spencer to Move this ordinance back to Committee.
(3 Yeas – 3 Nays, Lymburner, Simpson, Spencer) Motion fails lack of majority.
Moved by Lymburner Seconded by Simpson to amend the order by deleting Section B. (5 Yeas – 1 Nay Hopkins)
Councilor Nesbitt said that he was still concerned about Section B.
Chair Christy said that the original intent was to protect the range ways and to serve as a tool for the Planning Board.
Councilor Lymburner said that when you look at A. (2) it refers to state and county roads but it also covers the range ways. She though that to put it in place would protect us for now, while sending the regular ordinance to committee.
Councilor Spencer questions the timeline on the regular ordinance.
Gordon Billington said that ducting the legal review of this the definition of future streets does include range ways.
Councilor Lymburner noted that the emergency ordinance could be extended if necessary while the regular ordinance is being reviewed.
Councilor Hopkins said that she would vote to support the emergency amendment; she said that she was not real happy with it because she was uneasy with it, but was understanding that the regular ordinance would go to committee for complete review.
VOTE ON ORDER AS AMENDED: 6 Yeas – 0 Nays
33-05 Amendment to Standish Town Code, Chapter 181 Land Use, § 181-32 Range Ways and Future Streets (Introduction) [Spencer]
Moved by Spencer Seconded by Lymburner to dispense with the Clerk’s reading of the ordinance. (Unanimous)
Moved by Simpson Seconded by Hopkins to move this ordinance back to committee. (6 Yeas – 0 Nays)
34-05 Amendments to Standish Town Code, Chapter 181 Land Use; and Chapter 252 Streets and Sidewalks, to Clarify the Street Design, Construction and Classification Standards (Introduction) [Spencer]
Moved by Spencer Seconded by Lymburner to dispense with the Clerk’s reading of the ordinance. (Unanimous)
Councilor Spencer said that due to errors found in this order suggested that it go back to committee.
Moved by Spencer Seconded by Lymburner to move this back to committee. (6 Yeas – 0 Nays)
35-05 Emergency Amendment to Standish Town Code, Chapter 3, Article VI, Department of Finance, To Add Language on the Undesignated Fund Balance Policy (Introduction) [Simpson]
Councilor Simpson said that this follows the recommendation of our auditor. This would put in the code that we do have a policy. The recommendation is to put in two and one half twelfths months worth of funding. He noted that the unwritten policy has been keep about $2.5 million. It is thought that two and a have months would be sufficient to cover us in case of a rainy day. He said that the question came up earlier about the $200,000 for this year. He said that the difference between the $290,000 that we took out that $200,000 would bring us to about $2.5 million.
Chair Christy asked what was the recommendation of the auditing firm, a percentage or an amount.
Councilor Simpson said neither town’s vary. He said that the reason that the committee picked 2.5 months is that the budget goes up and you use the percentage there amount of the fund balance would keep going up.
Bill Orr said that said that he had problems with this. He said that we started this year with $4,656,327 in cash and investments. He said that he assumed that it is mostly from the May taxes. He said that he didn’t know why we needed any undesignated funds. He said that the budget will fund the next year. He said that from what he understands there is no management of this money, if the Fire Department wants to buy a fire truck on the first day of the budget they can, which creates the cash flow problem. It was his opinion that there should be no cash flow problems. He said that there us really no need for this policy. He said that it is a shame that the taxpayers are always accumulating money through paying extra taxes. He said that the budget should be managed properly so we don’t run into these cash flow problems. He said if you look at the cash flow the dips are always in the same spots.
Councilor Simpson said the one thing that this Town has is only two times a year that we get money in large sums and that’s tax time. So, at the end of the year we had a lot of cash on hand because of tax payments. He went on to say that it is prudent to invest that money. He noted that the Finance Director puts it into different investments so that when it is needed the money is taken out. He said that even though we have that cash balance there was only $3.1 million in undesignated funds that we could spend. We took $295,000 of that and applied it towards the taxes. He said that he resented that fact that the comment was made that there is no management of funds. He went on to say that there is excellent management of the funds by the Manager and Finance Director. He said
that the manager watches the spending. He said that when you only have tow payment dates a year there will be dips in the cash flow. He said that we are in a dip right now, so either you go out and get a TAN or take money that is invested. He said that there always will be dips in cash flow.
Bill Orr said that the money is to be used for the towns needs not to make money on.
Councilor Spencer said that base on when various payments are due is when you have to pay so in many cases your are paying bill with monies that are appropriated in the previous year.
Louis Stack said that this order would keep the full Council for deliberating on the fund balance account.
Gordon Billington said that it is a policy statement that can be changed.
Chair Christy said that he interpreted that the Council still has the authority.
Louis Stack said he though that it was cutting off the full Council.
Chair Christy said that the full Council has the final say.
Louis Stack said that we will be taking in over $3 million in next year in revenue other than tax receipts. He said that is about a third of the total amount collected.
Councilor Hopkins asked why we needed the emergency or regular ordinance. She said that it is an amendment to the Town Code why are we doing this; she said that she understood the policy.
Councilor Simpson said that because we are adopting the policy it needs to be referenced in the Code Book. He said the reason for putting it in as an emergency is so it applies to this year’s budget.
Councilor Hopkins said that she didn’t understand 35-05.
Gordon Billington said that if you pass setbacks you will have the policy statement. The ordinance change does note that you have a policy change. He said that it doesn’t need to come out as an emergency ordinance.
Councilor Lymburner said that she didn’t see the need for an emergency. She said that if it is in Town Code then it is law. If it is in policy then it is policy. She said that words that are in the Code and even though it is a policy it mentions the approval at the town meeting. In the Code itself there is nothing – through the Code the authority is given to the Finance Director after consultation with others. So the Finance Director would be the one to decide the amount and she did not like that idea of doing that. She said that she didn’t like the idea of taking it out of the hands of the Council or citizens of the town and putting in the hands of the Finance Director.
Chair Christy noted that the town will strive to maintain the level of funding.
Councilor Lymburner said that wording is the policy. She suggested that the Code Book should say that there shall be an Undesignated Fund Balance Policy, nothing else.
Councilor Simpson asked that it be read again and he had no problem with killing the emergency. He said that the Finance Director would have no power but to recommend amendments to the policy. The Finance Director will make suggestions to the Council and it would be up to them to make the change. He said that is why we hired him to forward those recommendations to us.
Chair Christy said that under 36-05 is there a problem with changing the wording to say…Town’s auditing firm, the Town Manager and the Town Council Finance Committee…that may fix the problem.
Councilor Simpson said then why do you have a Finance Committee.
Chair Christy said to make recommendations to the Council.
Councilor Simpson said the Council could act as a committee as a whole on these items but then you wouldn’t need committees.
Councilor Hopkins said that under 35-05 and 36-05 she heard that what this was trying to do in the Code was to recognize that we have a policy which describes the responsibilities. She said why do we need reference to this in the Code? She asked why can’t we just put everything in the policy.
Councilor Simpson said that if we have a policy it should be referred to in the Code. The Code is law and refers to the policy. He said that all it is doing is noting in the Code that we have this policy to direct the Finance Director on what procedure to use.
Councilor Nesbitt asked why this wouldn’t fit in under the duties of the Finance Director.
Gordon Billington said that this is the section that it will be included in.
Moved by Simpson Seconded by Hopkins to indefinitely postpone. (6 Yeas – 0 Nays)
36-05 Amendment to Standish Town Code, Chapter 3, Article VI, Department of Finance, To Add Language on the Undesignated Fund Balance Policy (Introduction) [Simpson]
William Orr said that it seemed strange to him that you needed a third of the budget to manage the budget. He asked why we are borrowing money if we have surplus cash. He said that you can never earn money to cover what borrowed money costs.
Chair Christy read the amendment to the public. He went on to stress the wording ‘recommend amendments’.
VOTE: 4 Yeas – 2 Nays, Hopkins and Lymburner
37-06 Adopt Undesignated Fund Balance Policy [Simpson]
William Orr said that in general he really didn’t disagree with that order. He said that we are using a lot of money to manage the town if we don’t need to use if we were only to change some management policies. He said that we are always worried about our children and this is putting more other shoulders.
Councilor Spencer asked what Bills recommendation of a balance.
William Orr said that he thought that should not be a fund balance. He would rather support the funding for a TAN.
Louis Stack referenced that last paragraph. It was his opinion that if you waited for the audit as is noted you would have to wait until December.
Councilor Simpson said that the undesignated fund balance is what will be used in the next years warrant.
Louis Stack said that he disagreed with that, he said that the money that we have on June 30th over and above what is needed should go to reduce that years taxes, not the following year. He said that as of June 30th we will have an undesignated fund balance that is when we should bring down next years taxes. But you are saying you won’t know that number until December when the audit comes in. He said that maybe this should be rewritten.
Councilor Simpson said that you have really answered your question. He said that the audit the year before showed that we had $2,795,000 in undesignated fund balance. He said that we took $295,000 out and that brought us to $300,000. At the end of this years audit we show $3.1 million out of that $3.1 we have already spent $296,000 and when you take a look at our revenues coming in it doesn’t look like we will have $3.1 to spend. So when you back that out you are back to $2.7 million and you take $200,000 it brings it down to $2.5 million. He said that every year when the audit comes out you will use the fund balance for the following year’s budget.
Louis Stack said that you have to determine prior to your mil rate what the undesignated reserve is. He said that you will be telling us four months after you set the mil rate.
Councilor Nesbitt said that questioned the method of obtaining the money.
Councilor Simpson said that if you look at $3.1 million and if we took out the $600,000 we would have been below the $2.5 million threshold.
Chair Christy asked the June versus the end of the year.
Councilor Simpson that the town works on a thirteen month program. He said that we establish our budget in June.
Gordon Billington said that by this policy the town is striving to ensure that that the fund balance is held at the two and on half month balance in reserves. If it accumulates beyond that it will be remitted to the taxpayers in the following year’s budget. He said that the only controls that you have on that is the budget process.
Chair Christy said what determines if we spend $200,000 or $500,000,
Gordon Billington said that the Council does. He said that to help you make that determination you look at what your undesignated fund balance will be. This policy is a recommendation by the auditor and the Finance Director. This gives you a guideline to go by.
Councilor Spencer said that two and a half months and every year our expense will go up. He said that the money needed to cover the two and a half months will go up. He said that if you maintain that level he doesn’t see what the problem is.
Councilor Nesbitt asked if one thing could be clarified, the $2.7 was the audited fund balance for the 02/03, and $3.1 was the audited fund balance for the 03/04, is that correct. He said that out of the $3.1 we used $295,000 so what we did was basically guess what it was going to come in at. He said that he didn’t think that the way the policy was written that we will guess and subtract the difference. If you over estimate you will take out to much. So, you strive to meet that balance.
Gordon Billington said that you will strive to maintain it. He said that will be up to our best estimates. By the advice of the Finance Director and town Manager looking at revenues and expenditures to see how you will end up at the end of the year.
Councilor Nesbitt asked when are we using the audit number.
Gordon Billington said that the undesignated fund balance number only shows our in the audit.
Councilor Nesbitt said that all of the decisions are made prior to having that audited figure.
Gordon Billington said that you will give your best estimate the number.
Councilor Hopkins asked what would the implications be if this was tabled until next month. There seems to be some confusion on this especially time issue.
Chair Christy said that he asks questions because finance issues is not one of his finest points.
Councilor Lymburner suggested that this be tabled to committee to clarity the working of this policy.
Chair Christy said that he would like to go one step further to consider having a presentation in a slide show at a workshop so he could better understand it.
Moved by Lymburner Seconded by Nesbitt and Voted to Table this order. (2 Yeas – 4 Nays Christy, Hopkins, Simpson and Spencer)
Moved by Spencer Seconded by Simpson and Voted to move the question.
Louis Stack said that if you approve this you can’t carry this order out unless the audit is done prior to you setting the mil rate. He said that he didn’t know how this policy will work. He said that last year your best estimate was $2.8 million dollars. He said come to find out in the audit you were $300,000 off. He said that this year he was confident that the Finance Director has a better handle on the finance. He said that he didn’t think you can base the policy on an audit that you won’t have until after the mil rate is set.
Moved by Hopkins Seconded by Lymburner to remove the sentence under objective the second paragraph the first sentence which is … The Undesignated Fund Balance will be determined upon completion of the fiscal year end audit and compared to the budget, as approved at the last June Town Meeting for the next fiscal year.
Councilor Hopkins said that the first paragraph does explained the purpose. She said that the real confusion is how it will be determined. The rest talks about the excess but we still have our objective which is. She said that it is a combination of many things. She said that deleting that sentence will eliminate the confusion.
William Orr said that it a much better track.
Councilor Spencer said that there is a motion on the floor to move the question.
ROLL CALL VOTE TO MOVE THE QUESTION: 2 Yeas – 4 Nays Christy, Hopkins, Lymburner, Nesbitt
Councilor Hopkins restated her amendment:
Moved by Hopkins Seconded by Lymburner to remove the sentence under objective the second paragraph the first sentence which is … The Undesignated Fund Balance will be determined upon completion of the fiscal year end audit and compared to the budget, as approved at the last June Town Meeting for the next fiscal year.
Councilor Simpson said that you have to have the fund balance determined by an audit. He said that even as we do the budget it is a guess. He said if Dick was here he would tell you that he would be unable to give a number until the end of the year. He said the manager and Dick strive to determine that.
Councilor Hopkins said that she wasn’t saying that they shouldn’t, couldn’t or won’t. There is confusion on this sentence. Dick has to use what is ever at his fingertips.
Councilor Nesbitt asked for clarification of dates. He said that if you have the fiscal year end of June 30 and the audit will come out in December compared to the budget and the town meeting. He said that there no way that he can see that you can use any audited figure to set your rate.
Gordon Billington said that the target number is in your audit is used in your next fiscal year.
VOTE ON AMENDMENT: 4 Yeas – 2 Nays, Simpson and Spencer
VOTE ON ORDER AS AMENDED: 3 Yeas – 3 Nays, Lymburner, Simpson and Spencer (Due to tie vote the order is placed as the first item of unfinished business on the next meetings agenda)
38-05 Award Bid for Land Fill Monitoring Services [Pomerleau]
Moved by Lymburner Seconded by Hopkins to amend the order to add the name of Campbell Environmental Group of Falmouth, Maine in the amounts FY 06 $5,646.45, FY 07 $5,646.45, and FY 08 $5,800.45. (6 Yeas - 0 Nays)
VOTE ON ORDER AS AMENDED: 6 Yeas – 0 Nays
39-05 Approval of Municipal Warrant for Prosecution of the Owners or Keepers of Unlicensed Dogs [Christy]
VOTE: 6 Yeas – 0 Nays
PUBLIC ITEMS
Louis Stack asked if the Friday meeting with the State was open to the public.
Gordon Billington said no it was a staff meeting.
Louis Stack asked when the supplemental taxes would be done.
Gordian Billington said that they are bundled together,
ANNOUNCEMENTS
There were no announcements at this meeting.
EXECUTIVE SESSION (S)
An Executive Session was not needed at this meeting.
ADJOURN
Moved by Hopkins Seconded by Lymburner to adjourn. The Meeting adjourned at 10:10 pm by unanimous consent.
Submitted by: _____________________
Clerk/Secretary
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