09/13/1988 FINANCE COMMITTEE Minutes

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Finance Committee Minutes September 13 , 1988 - page 3 . directly into the Treasury and become part of the Estimated Receipts and if there is no town meeting action will be in the Treasury on June 30th and would go to make up Free Cash next year . This would artificially inflate Free Cash . If in next year ' s budget we raise $86 , 000 outside 22 because the debt , principal and interest is outside 22 to pay off the temporary loan , this would artifically inflate next year ' s Free Cash by $86 , 000 . Politically this would be a tough move because in essence what the town would be doing is taking the $86 , 000 from the Water District placing it in Free Cash and having taxpayers all next year raise another $86 , 000 to pay off the loan outside 22 . If no action is taken this is what will legally happen . There is an option but it requires action on the part of the town . The action would be to go to Town Meeting tell them that the money is being reserved for appropriation and we want it to be appropriated to pay off the interest that the town owes on the loan next July . This would prevent artifical inflation of Free Cash . Murphy next discussed Question #2 on the November ballot . Question #2 is the elimination of the prevailing wage statute . This would mean that when the town builds a building or goes out on a contract for services all of the contracts would not have to build in _ the prevailing wage . It is estimated that union wages add 20% to the cost of a new building and 30% to rehab work . Capewide it is estimated that union wages add 25%-30% to the cost of a new building . This question will appear on the. ballot November 8th . This puts the town in somewhat of a quandry over what to do with the Transfer Station which is slated to be on the November 14 Special Town Meeting Warrant and the bids are scheduled to be received by Nov . 2 . The town does not want to accept a bid if they can cut the cost by $150 , 000-$200 , 000 if Question #2 is passes . There are several options to the dilemma . Murphy suggested having the bids come' in the end of November or early December if Question #2 passes and the town is no longer required to follow the prevailing wage statute , the town will issue an addendum to eliminate all referece to the prevailing wage rate on the RFP . Murphy noted that the Article for the Transfer Station will appear on the draft Warrant of the Nov . 14 Special . The Committee questioned the need for a November Special recommending the town have a December Special Town Meeting . There is nothing on the Nov . 14 Warrant that couldn ' t wait till December . An addendum to the bid requests could be sent out November 14 , the bids would be received in two weeks and then a December 5th Special could be held . The Finance Committee next reviewed a Request for Transfer.. From the Reserve Fund from Fire Chief Ridgeway in the amount of $4 , 000 to be transferred to the Selectmen ' s Emergency Equipment and Repair Account , for exterior building repairs to the fire station . The exterminator had to rip- off clapboards at the station to determine the extent of the termite infestation . A contractor is required to replace the clapboard . Ed Dolan made a motion that the Finance Committee approve an amount up to $4 , 000 to be based upon actual estimates of the job . Nothing will be transferred until. the Finance Committee reviews the actual estimates . Gerry seconded the motion . Voted and approved by the Finance Committee .