Canton, Massachusetts · Saved source text
FINCOM 20200402 Minutes
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Canton Finance Committee Minutes Voted on: 7-30-20 801 Washington Street Vote: 6-0-1 Canton, MA 02021 Meeting Minutes April 2, 2020 Finance Committee Members Present: David Clough, Dan Cole, Emilio Mauro, Tim McKenna, Barbara Saint Andr6, Cindy Thomas and Wai Wong. Finance Committee Members Absent: Christos Arsoniadis and Rob Barker. Guests Present: Charles Aspinwall, Town Administrator Chris Connelly, Chair, Board of Selectmen Dave Emhardt, Chair, Capital Planning Committee Alan Hines, Current Moderator and Resident Mike Loughran, Board of Selectmen Bob Panico, Capital Planning Committee Mark Porter, Board of Selectmen Randy Scollins, Finance Director Ellen Jones, Finance Committee Secretary Opening: Chair McKenna called the meeting to order at 6:32 p.m. via Zoom virtual meeting. Approval of Agenda: Chair McKenna reviewed the agenda. New Business: Discussion FY21 Budget — Potential Risks There was no formal budget presentation by the School Committee or Board of Selectmen. No School Committee members were present at the meeting. Chair McKenna suggested that Mr. Scollins present his timeline/schedule. Because the draft timeline is relevant to any budget actions that might be taken, Mr. Scollins presented his opinions to the Finance Committee "Potential Risks for FY 2021 General Fund Funding Sources — An Early ReAssessment — March 27, 2020". This included the following four primary components of funding sources: Property Tax Revenue(80.3%) - Mr. Scollins is not anticipating any budgetary impact for next year. The Finance Director stated that new growth taxes is the only item that may pose some risk but that new growth was conservatively forecasted and that the Board of Assessors are still confident in achieving the $800,000 being forecasted. Mr. Scollins stated that a 1 % drop in property tax collections could impact cash flow by $600,000. In response to a Committee member's concern about the scenario if taxpayers were unable to pay taxes, Mr. Scollins further stated that he is confident that the Town has enough cash on hand to manage a lower collection rate even if the uncollected taxes were $2-3 million. In response to a Board of Selectman's inquiry about the tax due date, Mr. Scollins stated that the legislature was considering a tax grace period to June 1. Mr. Scollins is not concerned at the collectability of business taxes because of the method in which they are assessed. There could be downward valuations for business properties but because the way Prop. 2 '/z works, the tax levy is still levyable and would be spread out over all taxpayers. There was a difference of opinion on the budget impact with regard to revenue. Mr. Emhardt and Mr. Panico expressed their personal opinions (not the opinions of the Capital Planning Committee) that there will be an impact given the current economic conditions. Mr. Scollins stated that the Assessors Overlay Reserve was healthy enough to cover any increase in tax abatements and until the Town had further information it is difficult to predict the impact. Chair McKenna requested Mr. Scollins to continue with his presentation, open the discussion with questions from the Finance Committee and address comments and questions from the public at the end. • Staid Aid (9.4%) — Mr. Scollins is predicting a minimal impact to the Town's state aid for next year. The state's revenue committee was reconvening and would be reviewing state aid. There is no indication that they would be reducing state aid. FINCOM 201200402 Minutes Page I of 6 5/30/2020