TM approves multiple free cash transfers to close budget gaps

Free cash was a popular phrase at town meeting Monday night as Canton voters tapped heavily into the reserve fund with three separate transfers, bringing the total free cash balance to $737,000 heading into ATM’s second night on Wednesday, when additional requests were also expected.

During Monday’s first session, Canton voters authorized a total of $963,000 in free cash transfers — $400,000 to cover snow and ice removal expenses, $363,000 for unanticipated FY10 special education costs, and $200,000 to shore up the town’s stabilization fund, which has a current balance of $3.2 million.

The stabilization fund is used for unforeseen, one-time emergencies and to help maintain the proper reserve levels required by bond rating agencies, which recently gave the town the highest possible rating of AAA. This high bond rating allows the town to borrow money at a significantly lower rate of interest.

Meanwhile, the School Committee on Wednesday was expected to seek another $440,000 from free cash to supplement next year’s operating budget, and Town Finance Director Jim Murgia said he expected a similar request from Blue Hills Regional Vocational School.

However, according to the Finance Committee’s town meeting report, the current level of reserves is already too low and should not be used to supplement future budget shortfalls.

In other town meeting news from Monday night, voters rejected the local option meals tax as advocated by state officials, but adopted the optional hotel tax, which will take effect when Canton’s first hotel is constructed. The consensus of selectmen and town meeting participants was that the $30,000 in projected revenue from the meals tax was not worth the disruption to local restaurants, while the hotel tax would be far more lucrative, generating an estimated $70,000 in new revenue.

Voters also sided with the negotiations of selectmen and approved a two-year contract with the firefighters’ union that expires on June 30, 2011. Selectmen Chairman Sal Salvatori said the contract puts the firefighters on par with other union employees but acknowledged that negotiations were a give and take, with the union giving Fire Chief Charlie Doody more control over overtime and vacation planning.

The only opposition came from FinCom member Diane Wolff, who noted that although the firefighters are certainly worthy of a raise, the town could not support the negotiated increases of 2.7 and 3 percent.

 In other action, town meeting voters:

• Accepted a federal grant to improve the sidewalks of Pecunit, Kenney and Washington streets for better access to the Hansen School.

• Approved expedited permitting under Chapter 43D for two parcels of property at the former Tweeter buildings on Pequot Way. This designation streamlines the permitting process for prospective commercial clients and makes Canton eligible for grant funding and support in marketing the town as a business-friendly community.

• Approved the indefinite postponement of an article by Pat Johnson to amend the Parkland, Recreation and Open Space District bylaw. Town Moderator Dick Staiti ruled out of order a request by Johnson to withdraw without prejudice. The request would have allowed Johnson to resubmit the article next year. Now, she will need the approval of four-fifths of the Planning Board. Staiti said he was following town meeting procedure and was unaware of Johnson’s request to withdraw the article prior to town meeting.

• Allowed selectmen to continue to negotiate and sign an agreement with SEMASS on an expanded contract for the removal of municipal solid waste if the terms are beneficial to the town. Selectmen can sign the contract if the deadline is set prior to next year’s town meeting.

• Heard a report from Kevin Feeney from the ADA Transition Plan Implementation Committee indicating that $52,600 remains from the original $4.2 million plan approved in 1999 for disability repairs and renovations to town buildings. Feeney said the committee is looking to make disability improvements at the Board of Health office, the Senior Center, and at the town’s playgrounds and playing fields.

• Postponed action pending further information from the schools regarding a feasibility study of renovations to the Kennedy School.

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Posted by Mike Berger on Apr 29 2010. Filed under News, Town Government. Both comments and pings are currently closed.