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HomeMy WebLinkAboutFCMeetingMinutes_03.30.06 Finance Comn-ittee ("FinCom") Meeting Minutes March 30, 2006 Attendance: Mark Nichols was the only Finance Committee member not in attendance. Citizen"B" Fink and Town Manager Mark Rees ("TM") (arriving at 6:40pm)were also in attendance. I. Call to Order: Chairman Mitchell ("CM") called the meeting to order at 6:30 pm. II. Minutes: A) March 29, 2006: Vice Chairman Batsimm ("VCB")made a motion, seconded by Jack Watkins ("JW"), to approve the minutes as provided in the handout. The motion passed, 6-0-2 with Melinda Coppa("MC") and Steve Dawe ("SD") abstaining. III. Old Business: A. SpEd Budget Request Update: Chairman Mitchell ("CM") described a discussion he has had with School Committee Chairman, Al Perry, regarding the FinCom's request for more information on the FY07 SpEd estimate. He noted that all members of the School Committee were aware of our request and is aware of our disappointment in not receiving information in a timely manner. CM then noted what information the School Department did provide did not make any sense. The School Department claimed the difference in the Town Accountant's report was the use of two different accounting systems (School and Municipal). However, in a follow-up conversation with the Town Accountant, CM learned that she did in fact use the School Department's system to generate the report and there is a possibility that the School Department was only looking at the Circuit Breaker and/or grant portion of SpEd expenses. JW requested we run a similar report for FY05. CM will meet with the School Department and Town Accountant to reconcile the differences in the reports. MC offered to assist in this process. B. General Fund Revenues: After a discussion about the items changed and whether to approve as of Today, 'Paul Stewart made a motion, seconded by VCB, to adopt the revenues as shown on the Revenues handout dated March 29, with the ability to make changes down the road. The motion carried unanimously. The FinCom's projected revenue estimated does not use any of the existing Stabilization Fund monies and falls $131,172 below the total amount projected by the TM. C. FY2007 Recommended Budget: TM reverted back to the SpEd issue, previously discussed, and offered his staff to help reconcile. He also noted the House was discussing the release of the excess Lottery Funds, which was already included in his budget. With regards to the State's reduction.in PILOT payments, TM is in discussions with other communities to ask the State to hold those harmless who lost revenues. Paul Stewart noted the Health Department discussing charging fees for flu shots in order to justify restoring their lost position, as well as enhancing it. Mike Giarratano provided a handout of an email and summary proposal from Health Board Chairman Tom Trowbridge. The adoption of the Hopkinton Bill came up. TM noted the information on Town's not adopting this Bill appear higher than previously estimated. He also noted our Assessor, Garrett Bales, believes having a cut off date of July 1, accomplishes the same as the Hopkinton Bill. After a brief discussion, TM will review and come back to the FinCom with his findings. TM Rees expressed concern over the political fall out should departments raise fees to save heads while the School Department has a large amount of layoffs. The discussion shifted over to the Utility Contract,recently signed, with a significant price increase. TM noted that the Town's energy consultant believes we save money in the long run being part of this consortium. The FinCom received an update on the snow and ice deficit now at $88,519.80, all of which will be covered in the existing budget. Finally, TM handed out the major Municipal Building Projects under consideration for future years. He also noted the Community Preservation Committee may fund a feasibility study on some of these projects. TM also noted that the information does not include any information from the School Department due to lack of information. MC also handed out additional information provided by Garrett `Boles and John Ferguson. D) Outstanding Warrant Book Issues: The first order of discussion was on the ordering of the Warrant Articles. The Zoning Articles are now first to gather a larger audience since all pertain to economic development and future revenues. The unknown question is whether the budget Articles will reach the floor on Finance Committee Meeting Minutes of March 30, 2006 Page 2 the first evening. The FinCom then discussed each Article and voted where information was sufficient to make i recommendation. The summary of the votes are as follows. Article 10 - Paul Stewart, seconded by Melinda Coppa,motioned to recommend favorable action. Passed 8-0-0. Article 1 I - Jack Watkins, seconded by Melinda Coppa,motioned to recommend unfavorable action. Passed 7-0-1 (Steve Dawe abstained). Article 19 - Melinda Coppa, seconded by Eva Hamori, motioned to recommend unfavorable action. Passed 8-0-0. Article 20 - Melinda Coppa, seconded by Paul Stewart,motioned to recommend unfavorable action. Passed 8-0-0. Article 25 - Paul Stewart, seconded by Mike Batsimm, motioned to recommend favorable action. Passed 8-0-0 w/right to reconsider. Article 26 - Paul Stewart, seconded by Steve Dawe, motioned to recommend favorable action. Motion withdrawn pending further info. Article 29 - Mike Batsimm, seconded by Paul Stewart,motioned to recommend unfavorable action. Passed 8-0-0. Article 34 - Paul Stewart, seconded by Jack Watkins, motioned to recommend favorable action. Passed 8-0-0. Article 35 - Melinda Coppa, seconded by Jack Watkins,motioned to recommend favorable action. Motion withdrawn pending further info. Article 37 -Melinda Coppa, seconded by Mike Batsimm, motioned to recommend favorable action. Motion passed 6-0-2 with Steve Dawe and Eva Hamori abstaining_ The FinCom spent a considerable amount of time discussing Article 11, Compensation of Elected officials, and how to tie in with Article 37, Health Insurance Benefits for Elected Officials. Unfortunately, should Article 37 ',)ass, the Legislators would still need to amend the laws to remove Elected Officials Health Insurance which may or may not be done by June 30. Under existing law, the only way to eliminate Health Insurance by the end of the year is to suspend the Stipend. Regretfully, the FinCom feels the suspension of the Stipend is the best approach to address the directive from Annual Town Meeting to remove future obligations for Elected Officials Health Insurance. JW noted that the Board of Selectmen(`BoS") ignored numerous attempts to resolve this issue in the past. TM expressed concern over penalizing the BoS for something that will be able to affect down the road. Paul Stewart expressed discomfort in the fact that the FinCom's hand was forced and would like to see an end to this issue. JW referred back to the lack of discussion or inclusion of the FinCom's Article at the previous Special Town Meeting which was a"self serving position". He noted this same article is now submitted under a Citizen's Petition. The FinCom then discussed ways in which to move Article 37 out of order, prior to Article 11, so as not to suspend the Stipend. The issue then changes to the timing of implementing the revised law. There was a brief discussion as to the questionable placement of the Article by the BoS. JW read from a 2003 FinCom memo requesting the BoS to address the issue of the Health Insurance in the retirement years. He noted three years later and nothing has been done. In the end, the FinCom agreed to recommend Unfavorable Action on Article 11. There was a strong sense among the members to reinstate the Stipend to a larger amount once the legislators pass the law. N.Adjournment: The FinCom will meet Tuesday, April 4 and Thursday, April 6, at 6:30PM_ SD made a motion to adjourn at 8:27pm. VCB gave a second to the motion and all members voted unanimously in favor of adjourning. Approved: Vote: X: