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HomeMy WebLinkAboutFCMeetingMinutes_05.05.03 DRAFT FINANCE COMMITTEE MINUTES May 5,2003 Attendance: The following members were present: Jack Watkins, Chairman, Bernice Fink, Vice Chairman, Mike Batsimm, Melinda Coppa, Steve Dawe, Keith Mitchell, Mark Nichols, Paula Porten, and Paul Stewart. CALL TO ORDER: Jack called the meeting to order at 5:00 pm. Jack noted that the meeting was going to be a bit confusing because at 5:30 pm the BCG will be meeting. Once the BCG meeting ends the FinCom will resume its meeting. Jack then thanked "B" for her recap of the May 1 meeting. There were four items discussed at that meeting that were potential adjustments to the budget. Steve added there were no formal votes. Stipends/Health Benefits for elected officials: Jack said that health insurance has skyrocketed since the stipends were approved. This is a very controversial issue. Steve said the tenor of the decision is that the $52,550 could be for a teacher's salary for example. It was a symbolic gesture at best. Referring to a newspaper article, there were overrides recently in Rockport and in Ipswich. The one in Rockport passed because the voters realized unions were willing to make concessions by not taking an increase. Do we think it's a valid symbolic gesture to save one teacher, or policeman, or fireman. Paul asked if the FinCom was supposed to advise Jack and Melinda on certain items before the BCG meeting. He went on to say the amount of uncertainty is tremendous. There is $400,000 more in the House Ways and Means Committee in the SpEd Circuit Breaker Plan. Paul said the numbers keep changing. The consensus of the group seemed to be that the FinCom had cut enough in the budget. Jack noted that Mark Rees' Option 1 of his revised budget has $405,000 cuts which should be the traditional 113 — 213 division. Jack did some math and said that the $400,000 is six tenths of one percent of the budget. The FinCom agreed this is a small amount and does not call for more cuts. Diane Huster then spoke about the stipend/health insurance for elected officials. She emphasized that offering such benefits enables some citizens to run for office who normally couldn't run. The meeting broke at 5:55 pm for the BCG meeting. Melinda made a MOTION to reconvene the meeting after the BCG meeting. Mark seconded and the vote was unanimous. The Finance Committee meeting reconvened at 6:25 pm. Discussions began on Mark Rees' proposal comprising of Options 1 through 4. Beginning with Option 1, it was noted that one fireman and one policeman would be cut. Jack noted that the Board of Selectmen would present the budget this year for the first time. He said it is possible for the FinCom to change this option at the last moment. Paul expressed his tremendous regret that the Town Manager has brought a fund to the Finance Committee and to the rest of the Town that he cannot find anywhere. It's the MRI CP Health Fund and it is the first time we have ever heard of this fund. Paul then went on to say what good is the annual report if it doesn't include the funds he's going to bring forward every time he brings forward new monies from a new place. Steve said this needs further follow-up. Steve noted that based on the BCG meeting, the Board of Selectmen agrees with Mark's Option 1, which is to cut state aid cut in half so there is a $475,000 problem and here are the cuts. He suggested the FinCom has two choices to either go along with the BOS and don't disagree on the cuts. Or maybe, the FinCom can go to the Town with more aggressive numbers and let the voters decide. Adjust on the revenue side more aggressively and balance the budget without further cuts. Jack noted any newfound money, no matter how it is found, goes into the General Fund and is split 113 municipal side, 213 school side. "B" noted she has a problem with the split because local receipts are collected on the municipal side of the budget but will now be distributed the 113 — 213 split. For instance, the school had receipts of about $700,000 which is available and they are now using. "B" asked how the FinCom is going to deal with the FY03 deficit. Melinda noted that the FY03 deficit of $244,900 would be carried over to FY04. Jack stated if the Snow & Ice costs are average in FY04, the budget would be in the hole between $600,000 to $70,000. There was considerable discussion with respect to reducing the budget for Trash Disposal. Melinda noted the proposal o the table by MRI for a new service agreement may significantly reduce the Town's disposal rate. That is why she is comfortable with the FinCom estimate of $100,000 from trash fees. Jack then asked if anyone was comfortable making a motion to accept Option 1 of Mark Rees' budget. No one made the motion. Mark Nichols asked if the group wanted to take an aggressive or conservative approach to the numbers. Jack requested a straw poll. Keith stated that the Town has not addressed the revenue issues in the past few years. Keith position is to cut deeper and then when additional revenues come in build up the reserves then get ready for the next year. "B" noted no principal is being paid in FY04 so in FY05 there is going to be a big hit. Paul noted that DPW could be cut and take the recreation and trash out of the budget. Jack then asked for a straw poll on Option 1. Mark, "B", Keith and Paul supported Option 1 (the conservative approach). Jack added that the group split between conservative and aggressive. Steve said the on average more money keeps showing up that the Finance Committee doesn't know about, so the aggressive approach is the realistic approach. Paul pointed out that the budget the FinCom gave to Mark Rees last February had added the ambulance, police, and now more money came in so he added the nurse, etc. ADJOURNMENT: Mike made a MOTION to adjourn at 7:10 pm. Mark seconded and the vote was unanimous.