CC MTG MINUTES AUGUST 6 2018 FINANCE SUB-COMMITTEE MINUTES
August 6, 2018
Present: Gina Letellier-Chair
Jose — e Chair
h Mineo Vic
1 p
Dino Mercadante
' Cecilia Calabrese
Absent: Paul Cavallo
Also Present: Councilors Bitzas, Magovern, Sandlin and Suffriti, Solicitor Buoniconti, Auditor
Cheryl St. John, Vin Ronghi, Will Clark, Wendy O'Malley from PACE Program and
Gary Siedlik
' Called to Order: Meeting was called to order at 6:41pm by Chair Letellier in the Children's Room at the
Agawam Public Library, 750 Cooper Street,Agawam
1. Approval of minutes dated July 9,2018
' Motion to approve was moved by Councilor Calabrese and seconded by Councilor Mercadante.
The vote was 4 Yes,0 No, 1 Absent(Councilor Cavallo)approving the minutes.
' 2. TR-201E-49 - A Resolution authorizing the Town of Agawam to participate in the
Commonwealth of Massachusetts Commercial Property Assessed Clean Energy Program (PACE
Massachusetts) (Sponsored by Mayor Sapelli)
Solicitor Buoniconti states this gives the property owner twenty years to repay loans for energy improvements.
This is 100%voluntary.
Motion to send a positive recommendation to the Full Council was moved by Councilor Calabrese and seconded
by Councilor Mineo.
' The vote was 4 Yes,0 No, 1 Absent(Councilor Cavallo)
3. TR-2018-50 - A Resolution establishing a Special Revenue Fund known as the Transportation
Network Company("TNC") Surcharge Fund(Sponsored by Mayor Sapelli)
' Money has to be accounted for by the Auditor once received, set aside and a spending authorization put before
the Council. On behalf of the Mayor, Solicitor Buoniconti asked that this item be withdrawn from Council
Agenda.
' Motion to ask this item to be withdrawn made by Councilor Mercadante and seconded by Councilor Mineo.
The vote was 4 Yes, 0 No, 1 Absent(Councilor Cavallo)
' 4. Any other business that may legally come before the Committee.
None.
5. Adjournment.
Adjournment: The meeting was adjourned at 6:49pm
' Respectfully submitted,
Gina M. Lctellicr,Chair of Finance Committee
Christopher C.Harding
r�
Commissioner of Revenue
v�aE�. },`a.a DIVISION OF LOCAL SERVICES Sean R.Cronin
DLS
MA D E P A R T M E N T OF REVENUE Senior Deputy Commissioner
16
Local Finance Opinion
LFO-2018-1
July 11, 2018
TOPIC: Transportation Network Company Per-ride Assessment Distribution
ISSUE: Municipal finance and accounting treatment of money received from the Commonwealth
Transportation Infrastructure Fund
' This LFO addresses questions relating to the municipal finance and accounting treatment of moneys
distributed to a city, town or district from the Commonwealth Transportation Infrastructure Fund.
I. What is the Commonwealth Transportation Infrastructure Fund?
Under Chapter 187 of the Acts of 2016, certain transportation network companies must submit to the
Transportation Network Company Division of the Department of Public Utilities (DPU)the number of
rides from the previous calendar year that originated within each city or town and a per-ride assessment
of$0.20. The assessment is credited to the Commonwealth Transportation Infrastructure Fund (Fund),
which was established by the Act. St. 2016, c. 187, & 8(a). Each year, one half of the amount credited to
the Fund will be distributed by the DPU proportionately to each city and town based on the number of
rides that originated in that city or town. St. 2016. c. 18T § 8(c)1i).
2. What is the general rule related to the receipt of money by a city, town or district officer or
department?
All money received or collected from any source by a city, town or district belongs to its general fund
and can only be spent after appropriation unless a general or special law provides an exception, i.e.,
expressly restricts use for a particular purpose or allows expenditure by a department or officer without
appropriation. G.L. c. 44 ti 53.
3. Is there an exception to the general rule for money received from the Commonwealth
Transportation Infrastructure Fund?
' Yes. Money distributed to cities and towns from the Commonwealth Transportation Infrastructure Fund
is special revenue earmarked for use by cities and towns"to address the impact of transportation
network services on municipal roads, bridges and other transportation infrastructure or any other public
purpose substantially related to the operation of transportation network services in the city or town
including,but not limited to, the complete streets program established in section i of chapter 901 of the
General Laws and other programs that support alternative modes of transportation." St. 2016. c. 187.1
8 c i . However, the statute establishing the distribution does not authorize any particular department or
officer to spend the distributed money without"specific" or"further" appropriation for any of those
Supporting a Commonwealth ofCommuwdes
n%-v.tnass. ov D S P.O.Box 9569 Boston,MA 02114-9569 (617)626-2300
LFO-2018-1
July 11,2018
Page 2
statutorypurposes. Sec e. C.L. c. 40 3 (municipal and school rental revenues); G.L. c. 44 53A
p p � g� ( P )� _ . �
' (money gifts and grants); G.L. c. 44. � 53E'/2 (departmental fees and charges); and G.L. c. 7I, & 47
(school activity fees and charges), Therefore, the general rule requiring an appropriation in order to use
the money still applies. The accounting officer must establish a receipts reserved for appropriation
account for this distribution and credit the money received to that account. To use the money for any
allowable purpose,the legislative body must appropriate from available funds in the account.
Additionally,please note that each city or town receiving a distribution from the Commonwealth
' Transportation Infrastructure Fund must submit a report to the Transportation Network Company
Division of the DPU not later than December 31 of each year that details the allowable transportation-
related projects conducted, including amounts used or planned to be used for those projects. St. 2016, c.
187, § 8(d). The Division is required to compile the reports and post the projects and amounts of money
used on its website. St. 2016,_c. 187_$ 8(d).
' Kathleen Colleary, Chief
Bureau of Municipal Finance Law
KC:KW