HomeMy WebLinkAboutFCMeetingMinutes_01.26.06 Finance Committee Meeting Minutes
January 26,2006
—I. Call to Order: Chairman Mitchell called the meeting to order at 6:30 pm. All members were in attendance.
II. Approval of Minutes: Mike Batsimm, with a second from Jack Watkins, made the motion to approve the
January 19 minutes. The motion passed 8-0-1, with Mark Nichols abstaining.
111. Old Business: Chairman Mitchell gave the members an overview of the format for the Joint Board
meeting and"Wish List". Addressing a comment from Selectman Caggiano, the Chairman reiterated that this
meeting is not a public hearing but rather a working session and will last approximately 90 minutes. The
Committee did discuss the possibility of inviting the two elected Boards to attend its' Public Hearing, not yet
scheduled. Chairman Mitchell will discuss this option with Rosemary Smedile, Board of Selectman ("BofS")
Chairman. Chairman Mitchell recognized that some items mentioned as items of interest for the Finance
Committee may be controversial. The goal of the meeting is really to pull the two decision making Boards
together and dispel some myths. Mark Nichols stated his belief that the first effort to coordinate the Boards is
the Budget Communication Group, with the Second step coming from the BotS in the form of policy making
shifts.
The Committee shifted focus onto the Budget Process Approaches of the outline. Paul Stewart led the
conversation on maintaining amounts in the Stabilization Fund. It was noted that Town Manager Mark Rees
highlighted the possibility of a lower Bond Rating should the Town use its' reserves to fund the budget. Mike
Giarratano suggested putting a dollar amount to the additional costs should this happen. Jack Watkins
suggested putting this request to the Town's Financial Advisor. All Committee members agreed to maintain the
Stabilization Fund and directed the Chairman to make this position clear during the Joint Meeting.
k brief discussion ensued over the timing for disseminating budget information. Steve Dawe noted that the
School Department, in his opinion, did a sub-standard job in communicating the budget last year. Discussions
turned to ways to improve the budget process. Paul Stewart expressed concern about comments made by some
BotS members at their recent meeting that they"really control about a third of the budget" (as the School
Committee has control over the expenditure of a large portion), and that the Selectmen seemed to be saying that
that means they have no responsibility for the budget as a whole. Melinda Coppa requested the Chairman try to
dispel the 213 budget myth mentioned by a BofS member. In addition, she stated her desire to see the School
Committee take the lead on determining whether the School Department needs additional funding through an
override and not the Superintendent or the tax payers. If such a need exists, she suggests the School Committee
formally request this from the Bots. Chairman Mitchell stated that the Budget Communication Group is a good
venue to air these issues.
IV. New Business:
A) Budget Communication Group: Melinda Coppa made a motion to appoint Eva Hamori and Mike
Batsimm, with herself as an alternate, to the Budget Communication Group. Jack Watkins seconded the motion
and all members voted in favor of the appointment(9-0-0).
B) Next Meeting: The Committee will meet next for the joint board meeting and then again on February 9.
C) Union Contracts: Chairman Mitchell plans on discussing the Union contractual obligations at the next
meeting. Jack Watkins, the driving force behind this issue will be unable to attend. Chairman Mitchell will
change the agenda. Paul Stewart highlighted that the Union Contracts were an issue at the last Annual Town
Meeting. Chairman Mitchell will review his notes on this topic and report back on issue and resolution. Jack
Watkins stated his desire to have a complete financial projection, and not just pieces as previously provided, of
the Union Contract obligations or"not to come".
D) FY07 School Department Budget: Chairman Mitchell asked members to review the School Department
budget and direct any questions to him by next Friday. Steve Dawe mentioned that questions posed by Budget
Parents were answered in writing at the 1/24106 School Committee meeting, and wondered whether Dr.
Finance Committee Meeting Minutes, January 26, 2006 Page 2
D) FY07 School Department Budget(continued): Harutunian would like to provide written responses or
,appear in person to answer the FinCom's questions. Steve then directed the Committee to indulge him while he
isks a question regarding the large increase in Special Education; specifically he pointed out that this line item
increased almost S2 million from FY05 to FY06. Chairman Mitchell requested Steve to put this "excellent"
question in writing.
E) Ozzy Properties Market Study: Eva Hamori presented a$40,000 estimated cost for a complete residential,
commercial and retail market study. Based on her findings, there are some larger firms that could provide a six
week turn around. Presently the Finance Committee reserve has sufficient funds available pay for this study.
Chairman Mitchell will discuss this at the joint meeting.
F) New Financial Reporting System Review: Mike Giarratano and Paul Stewart gave the committee a brief
overview of the system review meetings that both attended separately. On February 1, another demonstration
will occur for the third product under review. Mike Giarratano requested the Chairman to find out the decision
making process for selecting the new system.
V)Adjournment: Mark Nichols, with a second from Jack Watkins,made the motion to adjourn at 7:44 pm.
The vote was unanimous.
Approved: Vote: X