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HomeMy WebLinkAbout2008-03-03 Finance Committee Minutes FINANCE COMMITTEE March 3, 2008 Councilors: Stone, Palmer, Farrington, Hawes, Gratwick Staff: Cyr, Barrett, Hupp, Dubois Others: Jim MacLeod, Scott Kenney 1. Consent Agenda Palmer made a motion to add item f. to the consent agenda. The item would be to fund $570.00 for the Camp Bangor program which would be referred to the full Council for final action. A second was made to add item f. A motion was made and seconded to approve the Consent Agenda. a. Quitclaim Deed – 79 Balsam Road – Smith b. Quitclaim Deed – 22 Kennebec Place – Walsh c. Quitclaim Deed – 151 Lancaster Avenue – Comer d. Quitclaim Deed – 165 Larkin – Hughes/Davis e. Quitclaim Deed – 209 Warren Street – Geiser/Jones 2. Update on Early Voting Process Stone indicated that this item was moved from number 3 to number 2. Dubois said that the Secretary of State has issued a formal recommendation to the Legislature in support of early voting. The pilot program went extremely well in the three participating communities of Bangor, Portland and Reedfield. Part of the final recommendation hinges on the Attorney General’s Office completing a review of the constitutionality of early voting. The constitution language states that the voting will be held on the first Tuesday following the first Monday of November. Absentee balloting has become very popular in the past several years and basically is early voting. The issue is whether or not real early voting by feeding a ballot into a machine is somehow a violation of the constitution. The State of Maryland had very similar wording in its constitution. Maryland had recently conducted early voting. It was challenged and was found unconstitutional. Rather than risk a challenge, Maine’s Secretary of State is recommending a constitutional amendment and the earliest it would take place is November of 2008. If approved, early voting would not take place until after that time period. Dubois said that early voting relieves staff stress and the whole voting mechanism and she was disappointed that it would not be in place for this election year. In rethinking the process, she spoke of several issues she will be bringing to the Council in the budget review process to help streamline the election process. She spoke about an installation of a door in the side of the Civic Center. It would be an entrance on the Buck Street side so that voters don’t have to walk so far. Another item for consideration is a cell phone plan. Palmer asked about early voting for the June primary. Dubois said she would do regular absentee voting to err on the side of caution but a plan needs to be set in place for November. Barrett talked about the difference between early voting and absentee voting. Palmer suggested Dubois put together some information regarding the new door for the Council’s consideration during its budget process. Barrett said he had asked Cyr to work with Dubois on an overall plan for the November election process. Gratwick asked about any downside to early voting. Dubois said in Maine voting is allowed 45 days prior to any election and is a convenience for the voter. Barrett pointed out that in the pilot program there were 1,844 early votes cast and 1,203 were Bangor voters. Palmer, Stone and Gratwick applauded the staff of City Clerk’s Office. 3. Annual Review of Airport Investment Performance Stone had asked for this item to be on the agenda as an update and review. Cyr said BIA has built up a cash surplus over time and a decision was made a few years ago to investment this differently than municipal funds, which is a low risk. She explained that the pool was broken into two pieces, the largest at about $15M is in a fixed income securities and $900,000 is in equity securities. Cyr introduced Jim MacLeod and Scott Kenney from Bangor Savings Bank, the Airport’s Investment Manager. MacLeod presented and reviewed information to the Committee, which is reviewed quarterly with the Airport’s Finance Director. Gratwick asked if this is a typical pattern – fixed income equity balance. Cyr said that preservation of capital is key. Stone asked about investments in inflation adjusted bonds. Discussion focused on the City’s credit rating. Kenney reviewed the bond portion of the information. Stone asked about broker commissions. Kenney said it is all inclusive. Gratwick asked the long term outcome of these dollars. Cyr said it is all of the above. 4. Order, Establishing a Benefit Reserve Cyr indicated this has been previously discussed specifically the volatile changes with health insurance. Savings will be placed into a reserve to offset extremely high future years. An Order to establish a benefit reserve went to Council but it was then referred back to the Finance Committee which a question raised about placing a limit on the reserve. If it is determined to have a limit, Cyr said she needs to know an appropriate limit amount. She suggested the limit be based on the prior year’s premium. Barrett feels the reserve will tend to be self-limiting but he has no issue with placing a limit. As part of the budget process and responding to Farrington, Cyr said she will be providing a list of current reserve accounts and balances. Stone suggested the limit be 100% of the prior year’s premium. Gratwick said he sees no need for a limit. Hawes said this went to Council once, was referred back because of the question of the limit. She thinks there should be a reserve and if the only way to get it through the Council than it should be set at 100%. Stone asked if there will be a limit on what could be taken from the reserve. Barrett said there is no way to restrict the Council from appropriating a reserve. Palmer made a motion to refer the item back to Council as it currently stands. The motion was seconded. The vote was 5-0. 5. Executive Session – Hardship Abatement – 36 MRSA Section 841(2) A motion was made and seconded to move into Executive Session. 6. Open Session – Hardship Abatement Decision A motion was made and seconded to approve staff recommendation. Committee adjourned at 6:00 p.m.