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HomeMy WebLinkAboutFCMeetingMinutes_02.16.06 Finance Committee ("FinCom")Meeting Minutes February 16,2006 Attendance: Vice Chairman Mike Batsimm and Mark Nichols were the only Finance Committee members not in attendance. Finance Director, Linda Casey and Town Manager ("TM") Mark Rees (arriving 7:00pm) were also present, as were Board of Selectman Don Stewart(arriving 7:25pm) and School Committee member Al Perry(arriving 7:05pm). Citizen Jeanne Andrusin of 225 Briddle Path sat in observance. Call to Order: Chairman Mitchell called the meeting to order at 6:30 pm. II. Approval of Minutes: Paul Stewart, with Jack Watkins providing the second, made the motion to approve the January 26th and 31st minutes as provided in the handout. The motion passed 7-0. III. Old Business: A) Effect of Contracts on Future Budgets: School Committee("SC")member Chuck Ormsby could not attend the meeting to present his impact analysis of the Teacher Union Contract; Steve Dawe provided an overview in his absence. Dr. Ormsby presented his findings to fellow SC members on May 24, the day the union contracts were approved, and did not support the contract. The financial impact analysis he prepared demonstrated that the Town's revenue growth could not sustain these contractual raises. When factoring in all monetary increases (raise, steps, columns, etc.), the net growth is approximately 6%per year. His analysis fiirther shows that in FY07, the contract would require the School Department to lose 17 to 24 positions. The contract did pass with a 4-2 vote; Dr. Ormsby and Board of Selectman Jim Xenakis voted against approving the contract. Dr. Harutunian will comment on this analysis at the March 2, Finance Committee meeting. Paul Stewart discussed the fact that teacher salaries are not as high as our neighbors and his view that paying lower wages pays for mediocrity. Jack Watkins expressed his disappointment in not receiving a cost impact analysis earlier(8 months earlier) and that he would expect during negotiations, those involved, would know what the --total costs were. Melinda Coppa added that on the day the contract was voted, Dr. Harutunian announced, at a School Committee meeting, that this contract would cost$800,000 in FY07; demonstrating some knowledge of the impact. She also noted that the FY07 budget listed this increase at$700,000. Jack Watkins then requested the Chairman ask the Town Manager and Superintendent to provide"a simple chart" showing salaries for FY05, FY06, FY07 and FY08, assuming"all things being equal". B) FY2007 Superintendent's Recommended Budget: Steve Dawe brought to light the FY05 actual Special Education ("SpEd") costs were $1.1million below budget. He then congratulated Dr. Harutunian on doing a better job managing SpEd than done in previous years. He highlighted that some of the savings went to pay for additional expenses such as: $100,000 to Administration Clerical, $120,000 to Custodial Maintenance and $600,000 to Regular day, all of which may have received SC approval at a June 28 meeting. Melinda Coppa noted that the School Department used all of the Circuit Breaker, roughly$600,000, monies that year. Chairman Mitchell mentioned that Steve Dawe and Melinda Coppa were the only members to provide questions and he has sent those onto Dr. Harutunian. Chairman Mitchell explained that Dr. Harutunian has not completed the written responses and will come to our March 2 meeting, after he presents his cuts to the SC on February 28. Steve Dawe pointed out that Dr. Harutunian has already provided written responses to Budget Parents and SC members. He offered to make copies for those interested. Mike Giarratano questioned whether we could get more details behind these top level cost estimates, i.e. electronic spreadsheet backup. Melinda Coppa mentioned that the budget has a number of footing and transposition errors which suggest the use of a word processing document and not an electronic spreadsheet. A discussion then ensued on whether this information was even available and the process for building the budget(top/down or bottom/up methodology). The members were encouraged to get any additional questions to the Chairman as soon as possible. —,IV. New Business: A) FY2007 TM's Recommended Budget: TM Rees walked the Committee through the Recommended Budget highlights outlined in his opening letter. Jack Watkins thanked Mr. Rees and his staff for preparing a budget that is easy to understand. Melinda Coppa added a thank you for including not only year to date information but for providing full year FY06 financial projections. She stated this will be very helpful in Finance Committee Meeting Minutes, February 16, 2006 Page 2 IV. New Business: A) FY2007 TM's Recommended Budget continued: analyzing the budget. Paul Stewart then began a discussion on the reasons for proposing to eliminate a Public Health Nurse as apposed to a clerical ^'person in the department. Mr. Rees reasoned that this position is not supported by a state mandate and that other state services could fill this function. Melinda Coppa questioned whether an analysis of contracting outside Ambulance service has been done. Mr. Rees stated one hasn't been done as previous analysis shows the revenues adequately pay for the service. Mr. Rees announced the Board of Selectmen will hold a workshop next Wednesday, 7:00pm, at the Senior Center. All Department heads, including the School Department, were extended an invitation to attend and discuss the impacts this budget has on their respective departments. SC member Al Perry was not aware of this invitation. Paul Stewart then handed out a calendar highlighting when the Warrant book verbiage is due. Jack Watkins requested the Town Manager provide an impact analysis should revenues decrease $500,000 by not using monies currently residing in the Stabilization Fund. Paul Stewart requested a review of the Overlay account in light of a $240,000 adjustment last year. The Chairman suggested Committee members think about the budget approach; whether to approve the Town Manager's budget, which doesn't appear likely or begin to look at prioritize services. A brief discussion ensued on the CIP and Paul Stewart requested an update on items requiring an override. TM Rees also handed out the Town's FY07 State Budget Municipal Priorities list given to Representatives Steven Baddour and Bruce Tarr. B) Annual Town Meeting Warrant Article: Chairman Mitchell discussed the date (earliest 2123) for closing of the Town Warrant. He announced he was still drafting language for the Health Insurance article and asked if there were any articles other members wanted to pose. Melinda Coppa suggested including a warrant article requiring a final budget. Chairman Mitchell requested Ms. Coppa draft a proposal and submit to him for review. C) 2 March 2006 Special Town Meeting (`ASTM"): The Committee discussed the Community Preservation Act Committee's ("CPAC") need to have STM approve the purchase of the Cullen Property. Chairman Mitchell will invite CPAC Chairman John Simons to the next meeting to present an overview of this request. ^D) Auditor's Report: Chairman Mitchell anticipates having the Auditors present an overview to the committee in early March. Town Manager Rees, acknowledged the hard work made by Linda Casey and her staff to eliminate the auditors concern over cash and receivable reconciliations. E) Ozzy Properties Market Study: A brief discussion ensued about the desire to have a market study completed. Mark Giarratano explained his request and Mark Rees will discuss the option further with the Town's consultant. Paul Stewart suggested the use of Finance Committee Reserve funds may require an Article in the Town Warrant. Chairman Mitchell will put a placeholder in for this item. F)New Financial Accounting System: Mike Giarratano offered to provide his assistance in reviewing the new systems. Mark Rees graciously accepted the offer and Linda Casey will include Mike in these meetings. G) Snow and Ice Budget FY06: Chairman Mitchell announced the latest estimate, after this past weekend Nor'easter, still has roughly$153,000 remaining in the budget for any future snow storms. V. Adjournment: Jack Watkins made a motion at 8:19pm to adjourn. Steve Dawe gave a second to the motion and all members voted unanimously in favor of the motion to adjourn. Next Finance Committee meeting will be Wednesday, February 22, 6:30pm at the Senior Center. Approved: Vote: X: