1. The Role of FinCom Presentation to the Finance Committee of the Town of Acton November 28, 2006 Allen Nitschelm, member

2. Role of FinCom (State Law) To submit the Budget to Town Meeting. Under Mass. General laws, “In every town having a committee appointed under authority of this section, such committee, or the selectmen if authorized by bylaw of the town,…shall submit a budget at the annual town meeting.”

3. Role of FinCom (Town Charter’s By-Laws) B3. Duties of the Finance Committee The Finance Committee shall consider any and all municipal questions for the purpose of making reports and recommendations. Without restricting the general intent of the foregoing, the Finance Committee shall include in its duties the review of and recommendations concerning the budget for the annual meeting, the review of and recommendations concerning any other matter of a financial nature arising at the annual meeting or at any special meeting, and the preparation of long range fiscal plans for the Town.

4. What does this all mean? There are 3 major functions as outlined in state law and the Town Charter:

5. Watchdog

6. Multi-year forecaster

7. Budget-Presenters

8. Budget-presenter Role Do we want a more robust role in the budget process? What is our purpose? What do we want to do?

9. Executive Legislative

10. Board of Selectmen Town Manager Town Meeting Finance Committee ExecutiveLegislative

11. Why is having two branches of government important in the local budget process? System of checks and balances “Big picture” outlook Second review of budget

12. Should FinCom present the Budgets at Town Meeting? Besides extra work for us (and less work for the Selectmen)… Why would the taxpayers want a more involved role for FinCom? Is there a benefit to the taxpayers?

13. The Power to Say No Gatekeepers

14. FinCom’s new role in the budget Provide a second layer of spending control that is not currently present. Power to reduce, not to add (bottom line budget) Give us more clout to ask questions and get answers.

15. FinCom acting as Gatekeepers Take the Budgets as given to us by the BoS Cut waste and inefficiency Propose budgets with lower spending limits Anyone can propose increases to our budget at Town Meeting.

16. Challenges and Opportunities We have many fiscal challenges, including a “structural deficit.” We have to spend $$$ on capital. We have very high property taxes (13 th in the state). We will have future tax override votes. Will taxpayers continue to pass overrides if they don’t think spending is under control? The long-term, “big picture” outlook that we bring can result in cost savings and greater efficiencies.

17. Summary Do we want a more robust role in the budget process? Yes, to save the taxpayers money. What is our purpose in the budget process? To provide an independent, apolitical, review of the budget and to present the budget to Town Meeting. What is the next step? Ask the BoS to allow FinCom to present the budget, or propose a By-Law to Town Meeting to do so.