Norton Finance Committee Highlights $6 Million Free Cash Surplus Amid Financial Strain
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Meeting Type:
Financial Oversight Board
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Meeting Date:
09/16/2024
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Recording Published:
09/17/2024
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Duration:
45 Minutes
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State:
Massachusetts
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County:
Bristol County
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Towns:
Norton
- Meeting Overview:
The Norton Finance Committee meeting revolved around the unexpected $6 million free cash surplus, the allocation of these funds, and concerns regarding staffing in the police and fire departments.
The meeting began with a detailed review of the town’s final cherry sheet figures, which showed mixed changes in financial receipts. The town accountant reported minor decreases in tuition reimbursement and mosquito control, offset by increases in unrestricted general government aid, veteran benefit services, and school choice receiving tuition. These adjustments resulted in a net increase of $5,673 compared to initial town meeting plans. The committee then turned its attention to a reported town surplus of $226,400, which included prior amounts.
One notable discussions centered on the town’s free cash balance, estimated at around $6 million. This figure prompted significant concern among the committee members, given the town’s recent financial challenges, including a strenuous override election. A member questioned the origins of this surplus, suspecting it might include one-time funds and interest earned on borrowed funds due to high rates. This led to a broader discussion on how best to allocate these surplus funds.
Various suggestions were made, including allocating $1 million each to stabilization and capital expenditures, and continuing annual contributions to Other Post-Employment Benefits (OPEB). Additionally, potential expenditures were discussed for snow and ice management and addressing stormwater drainage issues. There was also a focus on restoring funding for essential services such as the police and fire departments and supplementing school budgets.
The committee expressed concerns about staffing levels in the police and fire departments, particularly following recent retirements. Efforts to backfill positions have been challenging, with low application rates for civil service lists. The Chief of Police mentioned ongoing efforts to fill one open position, while the Chief of Fire reported a lack of applicants for civil service roles, necessitating a reevaluation of hiring strategies.
The fire department’s difficulties were further highlighted during a discussion about attracting paramedics. The Chief noted that the competitive job market allows paramedics to choose their employment, making it hard for Norton to attract candidates. This scenario has led to fewer applications and a shift in interview dynamics, with candidates essentially interviewing the department. Despite these challenges, the Chief emphasized the department’s strengths, including excellent personnel and well-supported equipment.
Training costs for new paramedics were also discussed. The Chief confirmed that while fire academy training is covered by insurance payments, the town bears the costs of paramedic training, which amounts to approximately $166,000 per person. New hires are required to sign contracts committing to three years with the department after academy training, extending to five years if they attend paramedic school. If they leave early, they must repay training costs on a sliding scale basis.
The committee then considered several articles, starting with Article Five and Six, which involved amendments to the water and sewer operating budgets. Both articles were determined to have no amendments and were unanimously approved for no action.
Article One, addressing unpaid bills from the previous fiscal year, was introduced next. These included custodial fees from the school department totaling $867.74 and laboratory bills from the water and sewer department for $579. The committee discussed a supplement from free cash to cover the school department bills. After clarification on funding sources, a motion to accept and pay the prior year bills was unanimously approved.
Article Nine focused on drainage issues at Barrow Court. The street’s frequent closures have necessitated shuttling residents, prompting the hiring of an engineering firm for a watershed study. A request for $50,000 from free cash to fund this study was put forth and unanimously approved. The study is expected to take seven to eight months, with solutions likely to be implemented by fiscal year 2026. Concerns were raised about the costs of the shuttle service, which has been provided by Norton Emergency Management Agency volunteers.
The committee emphasized the importance of aligning with the select board on free cash allocations. A member suggested waiting for the select board’s input before making further decisions. The chair noted that planning board articles would be discussed in the next meeting, along with updates on retirement expenses and potential uses for free cash.
Michael Yunits
Financial Oversight Board Officials:
Paula Daniels, Frank Joe Parker, Iii, Tracy Mahan, William Rotondi, Bonnie Yezukevich, Stephen Evans, Cody Thompson, Zack Tsilis, Kevin Bugaj, Sandra Ollerhead, Paul J. Schleicher
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Meeting Type:
Financial Oversight Board
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Meeting Date:
09/16/2024
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Recording Published:
09/17/2024
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Duration:
45 Minutes
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Notability Score:
Routine
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State:
Massachusetts
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County:
Bristol County
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Towns:
Norton
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