Finance Committee wrestles with bond questions
By Doug Grindle Community Reporter

Marlborough - The Finance Committee of the Marlborough City Council worked to bring forward more than $13 million in capital spending for the city at a meeting April 14 that saw councilors eager to save money wherever possible.

Councilors considered how much of an apparent windfall of $1.6 million could actually be used to pay for capital spending.

They also deliberated whether computer equipment (at a cost of $402,000) is important enough to warrant immediate spending from cash, or whether it could wait for a bond round to be completed. Several councilors said they supported an immediate purchase using the city's stabilization account, which can easily be tapped.

"I support the use of cash to purchase these things," at-Large Councilor Steven Levy said.

The committee voted, 4-0, to transfer money from the stabilization account to pay for the equipment rather than fund it from the bonds.

Councilors considered whether the bonding round, which calls for $13.2 million in spending, can be reduced, because the city has identified $1.6 million from previous bond rounds that has never been spent on the intended projects.

At-Large Councilor Michael Ossing, chair of the Finance Committee, said he was concerned that no one knew how much of the $1.6 million could actually be used to pay for current projects and how much of it is still tied up in previous projects.

Ossing said the old projects need to be cleared up to assess how much of the old money is available.

"I already approved $1.6 million, but I don't know where it goes," Ossing said.

He noted all of that money had been assigned to projects run by the Department of Public Works. But he said he did not have confidence that if he reassigned it to new projects, it would not later turn out to be already spent.

"I still think you are going to tell me I can't use this money," Ossing told Commissioner of Public Works Ronald LaFreniere and Mayor Nancy Stevens, when they presented information to the committee.

Councilors expressed dismay that some projects were still not completed years after being commissioned.

Ward 3 Councilor Scott Schafer noted one project he had pushed for had never been completed.

"This is a project that got lost," Stevens said. "It slipped through the cracks."

Councilors also considered whether the total bond request was correct. By taking money from the stabilization account, which serves as the city's rainy day fund, councilors said the bond request could be made smaller.

Several councilors said they favored retaining a large amount in the stabilization fund in case the city's local aid grant from the state is cut. Councilors noted the state is facing a possible $1.3 billion dollar budget deficit this year.

"We are definitely being set up by the state to face some difficult times," at- Large Councilor Patricia Pope said.

Other councilors said it would be unfair to taxpayers to retain too much money in the stabilization fund because a rainy day might not come.

"I think having $12 million in the kitty is too much," said Ward 2 Councilor Paul Ferro.

Ward 1 Councilor Joseph Delano said finding the right amount to leave in the stabilization fund would be difficult.

"If it's too high, we are overtaxing our residents," he said. "If it's too low we are at risk."

Delano said a good reserve was needed for emergencies.

"In the last five years we've had some pretty big surprises," Delano said, citing a $2 million lawsuit the city lost as well as a $4 million finding shortfall in the city's health plan.

Before the Finance Committee met, the Personnel Committee voted to appoint Albert DeSimone as the city's new plumbing inspector, taking the place of Henry Pacific, who retired March 11 after 30 years' city service. DeSimone's term would extend until February 2011. DeSimone has decades of experience, many of them as an inspector in Northborough and Southborough.

"I've been doing this for 37 years," DeSimone said.