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HomeMy WebLinkAboutFCMeetingMinutes_04.29.03 ti AMENDED FINANCE COMMITTEE MINUTES A r►1�p_ 29,7003 ATTENDANCE: The following members were present: Jack Watkins, Chairman, Bemice Fink, Vice Chairman, Paul Stewart, Keith Mitchell, Mark Nichols, Paula Porten, Steve Dawe, Melinda Coppa and Mike Batsimm. Also present were Mark Rees, Town Manager, Diane Huster and a resident. CALL TO ORDER A joint meeting of the Board of Selectmen, School Committee and Finance Committee was held before this Finance Committee meeting. Jack opened the FinCom meeting at 7:00 pm. He stated the FinCom has three choices based on the Mark Rees' presentation (1) Postpone the Town Meeting to a later date (2) Accept the Town Manager's Recommended Budget documented in the Warrant(3)Accept the revised Town Manager's Budget presented at the joint meeting. The FinCom then discussed these issues at length beginning with the FY04 budget. It was noted that the numbers change constantly, making estimates more difficult. After a long discussion on ways to estimate for shortfalls, Paul suggested the FinCom adjust somewhere in the middle of both budgets. He added that the revenue projections have been quite low in the past. Recycling was again discussed as a revenue stream; the less trash burned at the plant,the bigger the savings in tip fees. Bill Hmurciak, Director of Public Works, was quoted that the savings from recycling could be as much as $500,000. Steve made a proposal that the Town can save $100,000 in trash fees this year, assume$100,000 more in new growth, and$100,000 less in the health insurance$500,000 number. This is our best guess. This figure is somewhere in the middle of the newly projected$702,000. Jack read aloud figures from the credit column in the Town Manager's Attachment A of his budget revisions. He noted these are one-time items used to balance this year's budget. He believes Marie Rees is right on the money with $702,000 budget. Jack does not think the Stabilization Fund should be used to balance the operating budget and would rather carry over the health insurance deficit to FY04. "l3" said the FinCom has to be careful with this budget because it could make the problem bigger in following years. Paul noted there's no way to fix it. Every year there are cuts and lay-offs. Jack noted that there should be a revenue campaign to increase commercial revenues. Melinda noted the need to be aggressive on a trash recycling program. Mark Rees was asked to explain the deficit in the health insurance account. He noted that projections were low and that more employees opted for the health insurance at open enrollment this year. Jack asked for a straw poll on postponing `- Town Meeting. No one agreed to postpone Town Meeting. Jack expressed his concern that there is very little time left before Town Meeting. Mark Nichols noted he would like a couple of days to think it over. Melinda made a MOTION to take a vote. Mark Nichols seconded to suspend the rules of the FinCom. The vote passed 8— 1 with Steve Dawe opposed to suspend the rules. Steve made a point that he would like the FinCom to go half way on Mark Rees' new budget. Keith then made a MOTION that the Finance Committee recommends that the fiscal year 2004 budget be adjusted to account for the projected shortfall of$724,601. Paula seconded the MOTION. Melinda agreed with Mike that the committee split the shortfall projection by half. Steve MOVED to make an amendment to the MOTION that the FinCom acknowledge that the Town Manager has provided the new figure of $724,000 expected shortfall, and that the FinCom should choose a figure somewhere in the middle of the Governor's budget and the House Ways and Means budget which is a $474,201. Mike seconded the amendment. Keith said there's a danger in draining the Stabilization Fund. The amendment passed 7 - 1-1 with Keith opposed and Paul abstaining. Jack MOVED to amend this to delete $244,900 from the Stabilization Fund to offset the workers' comp insurance and the shortfall in the health insurance trust. Some members were uncomfortable with reducing Stabilization Fund to $75,000. Jack withdrew his MOTION. Jack then asked for a vote on the amended MOTION. Jack moved to amend the MOTION by adding the words that an adjustment to the FY04 budget can only be made with reductions of operating expenses and not through estimates of increased revenues. Mark Nichols seconded but the amendment failed by a vote of 1-7-1 with Jack approving and Paul abstaining. Jack then asked the group to vote on Keith's amended MOTION. The vote passed 6--3 with Melinda, Steve and"B" opposed. Jack MOVED that the line item recommended by the Town Manager to reduce the Stabilization Fund by$244,900 to balance the Health Trust Fund be removed, and that amount be carried over as a debit next year. Steve seconded and the vote passed 7-1-1 with one member abstaining(could not make out the abstention on the tape)and Keith opposed. The next meeting is scheduled for Thursday, May 1,with some members noting they will be absent due to other commitments. The group decided to hold any further votes until all members are present. ADJOURNMENT Keith MOVED and Mark Nichols seconded to adjourn the meeting at 8:40 pm. The vote was unanimous.