Minutes of concurrent Selectboard and Finance committee meeting held
Tuesday 4/10/12 at 6 pm at Town Hall

Selectboard members present: Dawn Magi, chair; Nick Arguimbau; Patricia
Lemon.  Finance Committee members present:  Rick Abbott, chair; Bill
Foote; Kevin Alden; Kelly Jones, Eric Engman. Staff: David Young,
coordinator.

Chairman Magi and Abbott called the meeting to order at 6:00 pm.

David Young gave an overview of the Town's financial position describing
our financial picture as better than that of many communities as we
won't need an over-ride and the tax assessment is relatively stable year
to year. A key measure is our "excess capacity" to tax which has been
growing for three straight years.  "Excess capacity" is potential tax
revenue available for appropriation by Town Meeting without an over-ride
that the town has been able to leave unused. If the Finance Committee
recommended budget of almost $2 million is approved at annual town
meeting we will leave $159 thousand of taxing authority on the table.

Notable changes in the budget this year are on the revenue side.  Last
year the Town had a one-time income windfall of $68,000 from refinancing
the Community School debt and the Town had $117,000 of available surplus
/ free cash. This year free cash is $60,000 which is an average amount
and there is no refinancing windfall.

On the expense side there is one big ticket vehicle purchase but it is
proposed as a borrowing article and won't impact the tax rate in FY13.
Town employees are slated to see 2 1/2 % pay increases after two years
without any raises. Both the fire and police budgets are significantly
increased and the Tech School assessment has grown due to our sending
more students.

If the budget passes Warwick's tax rate will increase by one half dollar
moving from $16.42 to $16.92. The tax rate has been in the sixteen
dollar range for the past four years. Under this budget the Town's
savings, its capital stabilization fund, will total $125,000 of
undesignated savings.  There is $5000 in this budget toward the Town's
250th celebration.

Rick Abbot led the boards through the ATM warrant. The Finance Committee
recommends this budget after weeks of review. The only large money
article is $65,000 to replace the older of the Town's one-ton trucks.
After much discussion the Selectboard joined the recommendation to
borrow and purchase the truck with the caveat that after passage the
truck won't be ordered without final review and approval by the
Selectboard.  On a motion by Nick, seconded by Patricia the Selectboard
recommends purchase of a new one-ton truck. The motion passed by a vote
of 3 - 0 - 0.

The budget has increased funding for both police and fire departments.
The fire department has demonstrated a need for continued funding to
replace old turn-out-gear and air packs. Rather than a large one-time
special article, needed replacement will be done over time, leveling out
the cost and avoiding having all equipment of a type coming to its end
of life.  Nick noted that these public safety increases are likely
permanent levels of budgetary increase.

The need for a meaningful capital plan was discussed. Elements include
addressing the school roof, the school insulation, and air sealing.  The
possibility of grant funding under the MSBA Green Repair program for the
replacement roof was discussed.

The trend with the transfer station enterprise fund is positive reducing
reliance on tax subsidy to a bit over $6000 this year from $14,000 this
year and $20,000 last year.

On a motion by Patricia, seconded by Nick, the Selectboard joined the
Finance Committee by a vote of 3 - 0 - 0 in recommending the proposed
FY13 budget and Annual Town Meeting money articles.

The meeting adjourned at 7:10 pm.