3/4/1997 FINANCE COMMITTEE Minutes

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i 3 Iver. V hfitenour noted that fir. Taylor also received$750,000 in money for complete 100% state resurfacing of Great Neck Road South. Mr.Taylor commented on this and noting the exact figure is$716,000. D.P.W.BudgetlFuel Pricing Mr. Golub questioned where vire stand on the business of fuel pricing--how we can minimize our expenses for fuel acquisition. The Finance Committee feels the whole process should b ore proactive. He suggested trying to get a station that would allow us to fuel 100%of the time while giving us pump price. Mr.Taylor noted that we use mostly diesel fuel. There was discussion among the Finance Committee,Mr. Taylor,and Mr. V nitenour concerning the fuel prices,the bidding process and prices, how much can be saved,and the availability of obtaining fuel. Mr. V hritenour stated that by Mate Law,you have to set up the bids so you can compare the differences. He noted that the standard way to measure petroleum prices is to measure it from the Boston general Commerce Tank Car prices plus an escalator. That is a way of setting a standard index plus a profit margin that you can quantify and compare. You have to put a type of an index plus a profit margin that you can track,compare,and quantify. You can thea compare bids and determine who is the lowest bid. He noted that pump Prices fluctuate which would not allow us t6 detennine who is low bidder and who is high bidder. D.P.W. Budget/Snow and lee I1rir. Taylor noted that last year,they returned to the town$84,000 on snow and ice and spent $221,000. Vere have been 16 events of snow/ice. Normal number of events is 22. Mr-Vhritenour noted that we try to keep the Snow and Ice Budget level funded every year. If the budget figure runs over,we augment it;if the budget figure comes under,we turn it back. . .w. udgetlor-ities Mr. Nutt questioned if the D.P.V . Initiatives are prioritized, 11rir.Taylor stated that the Initiatives are in priority,with the first initiative to maintain inflation being the overriding one. Capital Unprovement Prgg m: The Finance Committee reviewed the Fiscal Year 1998 Capin Improvement Program, Chairman's Report, cued February 14, 1997. As an overview and per a discussion with Mr. V hritenour,Mr. Golub noted that there is a very close tic between the budget for capital that comes out of the operating revenue of the town and the spending of funds that are bonded and spent over the years, such as the town hall, schools,etc. When the capital budget comes out,we set a budget number and we fail to take into consideration the budget for debt. When we make an analysis this year and going forward,those two items should be taken together so that we incur debt for infrastructure and capital improvement. It would be foolish to come up with the capital recommendation if we did not also include a recommendation for how much debt we should incur. So,as part o this capital budget,we can consider the debt and the new debt we are incurring, such as the debt amortization of town hall.