Mtg notes: BoS 10.24.13 – DOR presents Financial report, “Milton is at a crossroads”

by Frank Schroth

At last Thursday’s meeting of the Board of Selectmen Zack Blake and Melinda Ordway from the MA Department of Revenue discussed the findings of  their Financial Management Review report requested by the Board of Selectmen and School Committee on a recommendation from the Town Government Study Committee. In his opening remarks Mr. Blake explained that the DOR is a regulatory agency that certifies free cash and property values. They have developed a knowledge base of best practices and have financial calculators along with free consultation services to assist towns become more effective and efficient in municipal management.

Chair Denis Keohane opened the session saying that “This is just a discussion.” He then introduced Blake and Ordway. Mr. Blake acknowledged the  cooperation he received from town employees, the general health of the town as reflected by its AA bond rating, and that town hall possessed a group of experienced professionals. But “Milton is at a crossroads,” he said. The town has a population of 27,000 and annual budget of ~$100,000,000. In the opinion of the DOR the town could benefit from looking at changes in government strutter, budgeting, and financial management. Mr. Blake said that the recommendations that he put forward were “just recommendations” and he said he expected them to be “debated vigorously.”

Blake briefly went through the reports recommendations which include strengthening the role of the Town Administrator, adding a new asst Town Administrator for finance,and expanding the board of selectmen from 3 to 5. He said these recommendations were “designed to be taken collectively.” He recommended carrying out a collective strategy that starts with a budget and strategic plan that goes out 3 – 5 years. Blake stated that the goal was to provide a “strong management approach that minimizes risk.”

Chair Keohane then invited questions, first from member of BoS along with School Committee Chair Lynda Lee Sheridan and Town Government Study Committee Chair Rick Neely and then from the audience. The questions were varied.

Member Hurley said he agreed with much of the report but also explained that making some of the changes suggested would be a lengthy and some what daunting task as some would require home rule petitions and other lengthy legislative processes that require involvement of state legislature, ballot initiatives etc. but he said, “We are willing to have that discussion.”

A series of questions focused on how suggested changes might work and how Milton compared with other towns. Selectmen Conlon, for example  asked how the roles of the Town Administrator and assistant town administrators (one of finance, one for HR) might relate. “If the TA is a CEO, do we need a COO?” Conlon also asked if Milton was lean in terms of town hall resources compared with other towns. One resource that has been recently identified is the need for as assistant town planner.

Blake said all towns had very tight budgets. Towns that were mentioned during the course of the discussion were Lexington, Needham, and Arlington. The latter came up in response to a question from Ted Hayes, chair of the Warrant Committee, who asked if there was a town that has a successful Warrant Committee financial driven model. The DOR was recommending that our Warrant Committee be more of an oversight committee. Blake said Arlington had a strong Warrant Committee and attributed it to a very low turnover of members.

Town Meeting Member April Lamoureux asked if our tax revenue, which is largely dependent on property taxes is “on pace with other town our size and sustainable.” Blake’s response was “Look — it’s going to be difficult.” He cited Arlington again as an example saying that they perform 3-5 year financial projections and build in an override every 5 years.

Town Meeting Member John Cronin said these sorts of changes were not new. He cited  examples of Milton dispensing with boards and changing an elected position to appointed one (one of the suggestions of the DOR is to have our Treasurer appointed rather than elected.)

“We should not be too afraid of the language in the report,” said Cronin.

Keohane closed the session saying, “We’re going to leave it at that.”

 

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