Finance Committee
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According to Massachusetts General Laws Chapter 39 Section 16, a town in Massachusetts must have a Finance Committee if its valuations exceed $1 million "for the purpose of appropriating the sales tax." [1] In some towns the Finance Committee may have a different title, such as: Advisory Committee, Warrant committee, or Appropriations Committee. In Arlington there is a Finance Committee, but in Belmont there is a Warrant Committee. In either case the difference is negligible and each committee serves the same purpose with few exceptions based on the town's by-laws. [2]
The number of members belonging to Finance Committee's throughout Massachusetts often varies according to the size of the town. While Arlington has 21 members on the Finance Committee, Freetown only has 7. In most cases (about 75%), members are appointed to the Finance Committee by selectmen or a moderator. However there are scenarios where they are elected by votes in the town meeting. The general term of service for such members does not typically exceed three years. [3]
Links to some town Finance Committees: Arlington, Freetown, Tolland, Belmont
Contents |
History
The beginnings of the Finance Committee in Massachusetts’s local government can be traced back to over a century ago. In 1870 a group of citizens from Quincy established the first version of what are now known as Finance Committees. Initially, this group was meant to restore financial order in the town. As these committees became more prevalent throughout the state, their presence in local government became compulsory. In 1910 “the legislature required finance committees to be established for all except for very small towns.” [4] The following is an example of Arlington’s Financial Committee history:
“The Finance Committee was established by vote of the town over a century ago on March 7, 1895. Article 33 provided for the selection of a ‘committee of twenty-one’, which would consider all articles in the warrant involving an appropriation of money and ‘make report thereof in print, with their estimates and recommendations for final action of the town.” [5]
Eventually, in 1934 Danforth W. Comins of Brookline founded the ATFC (Association of Town Finance Committees) and served as Executive Secretary from 1944-1959. Comins also wrote the first literature for the ATFC with his 4-page newsletter, called “Bulletin A”, for the 16 charter members in the association. Since 1979, when the MMA began, the ATFC has been an affiliate group. [6] Today the ATFC holds several important functions in local government. The ATFC continues to maintain and publish the Finance Committee Handbook, and it also organizes 2 annual educational and professional meetings for its members. [7]
Primary Responsibilities
The Town Budget
For most Massachusetts towns, the primary responsibility of the Finance Committee is to review and make recommendations to the town regarding the annual budget and similar financial areas. In some towns, the Finance Committee’s role extends even further to actually preparing the budget for the town. [8] Frequently, members of the committee will meet with the head of each department to discuss “proposed appropriations.” [9] Then, committees hold a public hearing, while their recommendations are printed and distributed by the Selectmen. [10]
Reserve Fund
Also, while these committees primarily act as an advising board to the town, they often have the power to transfer the town’s reserve fund to other line items in the budget. [11] In any case, the duties of the Finance Committee may vary from town to town as their responsibilities are stated in the by-laws.
Capital Budget Committee
The Capital Budget Committee can also be referred to as: Capital Expenditure Committee, Capital Planning Committee, and Capital Program Committee in some towns.
Capital Expenditures
Most often, the Capital Budget Committee acts in an advisory role to the Board of Selectmen, the Finance Committee, and/or the Town Manager regarding capital purchases. These capital expenditures are defined somewhat differently from town to town. In most cases these expenditures include town vehicles, construction in regards to major infrastructure repairs and maintenance, and land improvement. In addition, some towns label capital expenditures with a monetary value and life expectancy: The town of Tisbury states in its by-laws that an expenditure must be over $10,000 with a life expectancy of at least three years. On the other hand, Bolton states that an expenditure must be over $25,000 with a life expectancy of at least five years.
Composition
The number of members in a Capital Budget Committee also varies in each town. Each committee has members that are appointed from the Finance Committee, Board of Selectmen, School Committee, and other departments. In a town where there is a Town Manager, he/she also serves on the Capital Budget Committee.[12]
Links to some Capital Budget Committee websites: Bolton, Southwick, Westford, Tisbury
Notes
- ↑ Joseph F. Zimmerman. The New England Town Meeting (Westport, CT: Praeger, 1999) 41.
- ↑ Elweyn E. Mariner. Your Massachusetts Government(Arlington Heights, MA: Mariner Books, 1956) 42.
- ↑ Elweyn E. Mariner. Your Massachusetts Government(Arlington Heights, MA: Mariner Books, 1956) 52.
- ↑ Stuart DeBard. Massachusetts Finance Committee Handbook (Boston: Association of Town Finance Committees, 1992) 13.
- ↑ Town of Arlington, Massachusetts: Report of the Finance Committee, 2004.
- ↑ MMA website on Finance Committees
- ↑ MMA website on Finance Committees
- ↑ Mark E. Morse. Handbook for the Massachusetts Selectmen (Boston, MA: MMA, 1998) 59.
- ↑ Elweyn E. Mariner. Your Massachusetts Government(Arlington Heights, MA: Mariner Books, 1956) 52.
- ↑ Elweyn E. Mariner. Your Massachusetts Government(Arlington Heights, MA: Mariner Books, 1956) 52.
- ↑ Mark E. Morse. Handbook for the Massachusetts Selectmen (Boston, MA: MMA, 1998) 60.
- ↑ Links to different Capital Budget Committee Websites, such as: Tisbury, Bolton, etc.
