HomeMy WebLinkAboutCover Letter to Capital Program Committee- 07 24 2013_201401231400576134To: Board of Selectmen
From: CapCom
Date: July 24, 2013
At the April, 2013 ATM, the Fin Com recommended a complete review of the Capital Program
Committee’s role. Several members of the Cap Com have been meeting as a work group this spring to
accomplish this objective. The Town Manager, two members of the BOS, the Treasurer, and the
Procurement Officer have been a part of these meetings. The work product of these meetings is the
attached document, “Town of Nantucket-Capital Planning Process”. It is a description of the Cap Com’s
role and the current capital planning process. It was suggested to the Cap Com that its role include long
range capital planning (beyond the next fiscal year) and debt service as part of capital expense. These
two suggestions have been incorporated into the document.
The thought is that this capital planning process description could be used to update various official
Town policies, specifically:
-Article II, Capital Program Committee establishment
-Budget Policy & Process
-Long Range Financial Planning Policy
During our meetings, the Committee developed two recommendations, which when taken together
would help fund maintenance to avoid surprise large capital expenditures, help smooth those years
when large capital projects are required, help minimize debt finance, and help avoid Prop 2 ½ overrides.
They are:
1. A minimum amount per year be allocated for capital projects from Free Cash. (perhaps 50%,
the average of the last four years)
2. A Capital Reserve Fund be established funded by the balance of Free Cash. (perhaps 25%)
Thanks for everyone’s time and energy to work on this project. We hope it accomplishes the Fin Com’s
Objective in making its recommendation for the review of the Cap Com’s role.
Regards,
Phil Stambaugh, Carol Dunton, Peter Morrison, Joe Grause, John Tiffany, and Tobias Glidden