Page 117 - Microsoft Word - Annual Report 2016

FINANCE COMMMITTEE

The Finance Committee had another unique and quite interesting year. Michael White assumed
the Chairmanship, while mid-year Joyce Ricklefs, the Vice Chairperson, experienced and
knowledgeable, had to resign given her move to a neighboring town. Kayla Aikens also resigned,
leaving the committee quite shorthanded. But the remaining members buckled down and the
results were quite heartening, as newer members stepped up to fulfill the work requiremtnts.

Going forward, the mixture of new blood and experienced members made up a committee which
would try to guide the town through these unusual times of rising costs in spite of little or no
inflation. The Committee continues to strongly maintain that the Town should use recurring
revenues to fund recurring expenses. It is easy enough to say such, but in these times it is often
difficult to adhere to.

The budget for FY2017 (July1, 2016- June 30, 2017) was presented at the May, 2016, Town
Meeting and was easily passed. The FinCom was pleased that the increase in tax to average
households was 2.03%, substantially lower than the past 2 years (~7%/year). Free cash was
certified in the fall of 2016 at $3,420,347, an unusually high number which bodes well for
upcoming needed capital and other non-ordinary expenditures.

Kathy Benevento, Finance Director, continued to serve the Town and the Finance Committee in
an exemplary manner. All members of the FinCom will be eternally grateful for her efficiency,
intelligence, and good humor.

Again, without making value judgments, the FinCom dealt with overrides from the Elementary
Schools as well as from Masconomet, and also the seemingly endless controversies of town
building needs and maintenance - both current buildings and proposed new structures. It is up to
the Town, via Town meetings, to set priorities. The FinCom can only put forward our proposed
budget. This situation has led to both private citizens, as well as town entities, to endeavor to
come up with a more cohesive plan on how to alleviate this rapidly rising burden on the
taxpayers. Of course, getting the proper votes to enact such proposals will be an interesting
situation. But identifying and acknowledging a problem is the first step towards solution.

Our pension and post-employment benefit (OPEB) costs are being addressed in a constructive
way, more so than the vast majority of towns. Our unfunded liability continues to reduce,
although still significant.

Boxford town finances continue to be managed in a very conservative basis, with the recent
upgrading of our bonds to AAA as an indication of such management.