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HomeMy WebLinkAbout1985-08-09 Finance Committee MinutesFinance Cpmittee August 9, 1965 at 4:00 p.m. Minutes Present: Councilor Jim Con, Cinairmen Councilor Ton L$vis Councilor Maawhall Frankel Councilor Larry Willey Ted Jellison, Finance Director John Frawley, City Engineer Bob Miller, City Solicitor John Lord, City Planner Lave Pellegrino, Purcbasing Agent Sally Thopnm, Community DemalgIIent Harold Jdgazn, Hemlock Ridge Om Soucy, Pins Meadows p Carl Snow, Stillwater Gardens Attorney Michael Rair Garry Black, Brooke S Carter 1. Community Development. Ubs Committee approved a rehabilitation loan for 147 Birch Street. abe Committee did not approve a disposition of property at 23 Mt. Hope Avenue and asked that the valuation of the property la obtained from the City Assessor and the information brought back to their next meeting. Bids: <') O a. Tnr£ vehicle for Golf Course. Camittee approved award to Sawtelle Brothers, Inc., the low bidder, at $3,460.00. b. Ridim Mover. Committee approved purchase of the Toro Groundmmster from yerpa�s rnc., at $6,649.00. c. Paving Stores, she Purchasing Agent informed the Camnittee of an Additional requirement for paving stones. Based upon tle April bid from Landscape Products, additional stones will be purchased at $19,000.00. d. Decorative Street Lights. The Purchasing Agent informed the Committee of the requirement fm 6 additional decorative street lights at $1,000.00, based upcn the April bid. The Committee approved items c. and d. 3. FY 85 Audit - Progress paport. Carry Black of Brooks and Carter, the City's auditing firm, updated the Committee in terms of a progress report as to the FY 85 audit indicating that the initial phage and intermediate phases, including preliminary survey, study ani evaluation of internal accounting controls, is appraminately 808 oompleted. Account verification ami analytical procedures is approximately 10-159 underway. The September 30, 1985 deadline for report completion is expected to be met by Brooks and Carter. -2- 3. Audit Retort - Cant 'd Councilor Tilley asked for a list of all off -book assets that could potentially be included on the balance sheet. He asked why the July let Federal Revenue sharing payment is not on the books as a receivable. He indicated that the Legislature had approvedfunding for the following War by Jure 30th and asked why the following year's educational reimbursaoent oauld out be put on the books. Black indicated the educational reimbursement is subject to funding and is a question which has to be investigated in order to determine if it's a valid receivable. Regarding Revenue Storing, Mr. Jellison indicated there are four payments per year and, if one is accrued at the end of this year, the City would end up with five payments in one year and subsequently with four payments. Councilor Tilley questioned the accrued teachers' salary and vacation pay and asked for a recommendation as to the idea of adding the amount into the budget over a period of years and building it up that way. He felt that the booking of nomordinary reserves and items should he processed through an Order with the City Council in order for the Council to be aware of what is being done. Councilor Tilley indicated he would like to Bob a change made in the City ninthly financial statement to bring it in accordance with the audited statements for all the reserves at the end of the War to be cried forward on a nonthly basis. He also asked that the auditors wew the Cash flow and perhaps recoeM areto the Charter hicmh would allow the City to he prepared to pay revision abilities and purchase equipment as needed thereby eliminating a large cash surplus. Ms. Black indicated she world contact the Maine State Retire vent System asking for detail on the unfunded pension liability. 4. Stillwater Gardens - Carl Show. Councilor Cox indicated that Mike Rair, attorney for Stillwater Gardens, had asked permission to address the Council regarding this project and sent Councilor Cott a letter (the original of which is on file in the City Manager's Office, and a only of which is attachad). Mr. Rair indicated he world like to address the Council on what he considered to he the focal point of controversy in the subdivision issue and that being if the City, through its mmicipal officers, is acting illegally in allowing the policy which has been in existence for thirty years or sore concerning subdivisions and roadways therein. He indicated that extensive research shoos there is no law which would make Buncipal officers legally liable and there is no direct violation of ordinance, constitution or statutory provision. It is merely a policy followed by the City. Be felt the City could change its policy and apply it prospectively but that the City was not liable for changes in policy made in good faith and not in violation of law. Councilor Tilley reviewed the current ordinance which states that when a flat receives final approval from the Planning Board that the streets, etc., must be constructed. if the streets aren't constructed. the Planning Board can accept a surety bond on the amort of the street construction or the develcger can post a certified check with the City Treasurer. 4. Stillwater G ns - Carl Show. Hs further indicated there is also a provision which says if the Planing FoaN dema the project to be in the general public interest they can recomend to the Council that the upfront mWiramnt be waived. He indicated that although the City has been wring in the past it doesn't man it should wntinue. He indicated that this situation was defective starting at the Planning Board level. Ttm City Solicitor questioned Mr. Show as to which phase of the suodivision he was currently working on. Mr. Snow indicated that he felt the Council had oamitmi themselves to the entire pmject, hot just the initial phase. And, based upon that mmnitment for the entire pmjsct, he as gore forward on other comitments in residential and oo meroial developsent. John Frawley, City Engineer, indicated the Planning Hoaxa and Ccnwil have appmved the preliminary and final subdivision plans for Stillwater Caodons which shows sae dedicated rights of way and sewers. The City hasically musitted themselves to the fact that once those streets are Wilt they, will he recognized as public ways and built m acceptable standards to be taken over and maintained by the City. He indicated that this was the holy m sitaent male by the City and that the City had hot made any mmmitment to bear Ne construCtim wars of streats as the Council had no idea what these costs would be. W. Sora lad petitioned the City for a oust study which indicates a total of $300,000 with the City's share of apprroim mly $98,000. fe indicated again that the City Ms not made any oo mitsent to undertake and to fund the coastructiw Of said streets. He indicated the City's share of $5.25/ft. for road wnstmctiho back in 1967 has chaged and that amount is between $40-50 per foot and thereby not 50% as originally intended. Councilor Frankel questioned if the ordinance should state 108 at $5.25 which is what the current percentage amunts to. Con Soury made sore general consents regarding his project, the Pine Meadows Subdivision, and that of a bond as surety. Councilor Tilley indicated that the City would need N mm_ up with appmxhmately $7000000 for all three current subdivision projects and questioned where the money would tree frau. The Finance Director indicated it was a legitimate problem as the City may hot have enough matey for the projects this year. John Frawley, asked Harold Johnson if it would present a probl®n if the City were to awept his project under acceptable taws but not fund it until next year, and Mr. Johnston indicated it would ret cause any proadeas for him. Councilor Cox indicated that he felt the City has made a mmitment to the extent it ieaContract as cell as being called a moral oamitnent to pine Meadow. He mals the project should not be held in limbo and that the City reeds to hold up its and of the bargain. -a- 4. Stillwater Gardens - Cant'd. 'lte City Engineer listed three questions which he feels reed to be resolved. 1) Does the City have the right to take it upon thmselves to oonteact to build streets, possibly to prefund them and than to assess time developer with or without interest. 2) Can the City defer the assessment for a given period of time with or without interest. 3) Regarding specific projects, most specifically Stillwater Gardens, how much is the City going to be able to fwd this year in addition to what itis already funding this year. we also asked the City solicitor if he felt the City was legal in the may it has waived the band requirement in the past due to he fact that the City has contracted for street construction. Mr. Miller indicated he felt the City has a right Under the State law which authorizes the municipality to construct streets and sewers and to prefund these projects. Marever, it has to be kept in mind that before that money is spent a determination has to Its made as to public benefit. Igen that determination is made than an assessment is made. Councilor Willey felt the three projects in question should continue along as the developers have made camrt ants based upon a reliance factor, a good faith factor and a non -retroactivity factor. The policies, hawsver, do reed son tiny and change. Councilor Tilley gave all Councilors present a copy of a mono outlining his ideas an the subdivision issue. The remaining copies will be mailed to the absent Councilors. Committee adjourned at 5:45 p.m.