Town of Becket Finance Committee
April 1, 2010 Minutes
Present: Ann, Steve, Jeremy, Mike, Amy
Also present: Tony Blair, Bill Cavanaugh, Richard Pryor
Meeting was called to order @ 7:00pm
- Minutes of 3/18/10 approved
- Discussion of telephone pole-tax overlay. No further overlay is needed, since law passed 2 years ago : Tax revenues come to town. Prior years are still in litigation. Becket has ~$300,000 in escrow in case plaintiffs win. $65k proposed overlay charges in current budget are not for pole-tax; they are “normal” overlay for appeals and other matters where tax is not collected. Typical year is $30-40k in such charges.
TASK: TB to ask Assessors to justify proposed $65k overlay. Could this be less?
Town Acct. and Auditors feel Becket is at a disadvantage by keeping large amount in escrow, since it affects DOR Free-Cash calculation.
TASK? TB to follow up and see what, if anything, should be changed
Orig. estimated was ~$57k; further estimates were as high as $100k. As of 4/1/10, DOR says Becket has ~($125,000) free cash deficit. This does not mean we are short of cash; actually it is due to various deductions made in their calculations. Details are not yet clear. Bottom line: we should anticipate no Free Cash available from 2009 to apply to FY2010 or following years.
TASK: TB & MF to continue discussion with DOR to understand what this means
Summary line 28 has FY2010 YTD actuals. Likely it will be ~$60k by year end. Lengthy discussion later in meeting, resulted in this number being removed from budget. There is a current shortfall in Ambulance Salary account. Anticipated sequence of events and cash flows:
- May 2009 – FY2010 Amb. Salary budgeted $170,000
- FY2010 Special Town Meeting (date?) – FY2010 Amb. Salary increased to $190,000
- May 2010 ATM – Ambulance Receipts Reserve Acct will be applied to Ambulance Dept Salary acct. year will be ended in balance
- May 2010 ATM Budget $220,000 Ambulance Salary. Expected actual Salaries for FY2011 ~$250,000
- May 2010 Approve Ambulance Enterprise Fund creation
- FY2011 – Revenues from ambulance receipts may be applied directly to Ambulance Salary, since both are part of Enterprise fund
- FY2011 end – expect surplus (~$30,000?) in Enterprise Fund
- FY2012 Ambulance Salary will be budgeted at a sufficient level to make up the difference between FY2011 surplus, and anticipated FY2012 costs. Should be less than $220,000
TASK: TB to remove $42,230 from line 28 as expected Revenue, since it will go to the Enterprise fund.
TASK: TB to make sure Jim Kupernik is budgeting total amount needed for Amb Salaries
- How to present budget at ATM
TB wants to vote on groups of lines, instead of each line item. This creates more flexibility in a tight budget year. If one account in a group is over, surplus can be applied to another account in the same group, without approval by STM, and without waiting for 2.5-month year-end period when Select Board / FinCom can make such transfers.
FinCom accepted this recommendation, but strongly advised two things:
- present the line-item detail in ATM handout
- give a clear explanation at beginning of line-item review as to why this change was made
TASK: TB to find out what level of detail other towns vote on
Line 14. SB Stipends. Bill Cavanaugh asked if $4500 is sufficient, if 5-member Select Board is approved. Answer: even if approved at ATM, it will not take effect until following year. Discuss during FY2012 budget process.
Line 31. Public input: Richard & Jeanne Pryor recommend reducing Town Clerk salary, since current budget includes $1000/yr stipend because Jeanne is certified MA Town Clerk. She has 8 years’ experience – when she began, salary was ~$17,000. Decision to leave budget at current salary level in case someone with the same skills fills the position. Otherwise if actual salary is lower, surplus flows to Free Cash.
Line 39. Finance Committee expense. Should be $100 to cover dues
Line 40: Boards & Commissions (summary). TB notified all boards & commissions of budget reductions
Line 65: Highway Dept. summary. Lengthy discussion of whether to accept Lenny’s original budget, which is less than sum of all the lines; or TB proposal to use actual sum of lines. Accepted TB proposal.
TASK: TB to get Highway Dept actuals through 4/1/10 for next FinCom meeting
TASK: TB to add comparitive numbers (where available) to the budget draft
Line 84 School capital. ~$18,000 increase mostly due to Wahconah HS repairs.
Line 86/87 Voc Ed & Transport. 4/1 was last day for students to sign up.
TASK: TB to get actuals from CBRSD
Line 95 Emergency Mgmt.
TASK: TB still to contact Ray Tarjick
Line 98: Fire Chief Stipend. Voted to keep @ current level $3,662
BillC suggests all fee revenue go to town, and Fire Chief stipend be adjusted accordingly, so there is more transparency about overall compensation. Actual fee revenue is ~$1200/year. Fire Chief also has personal use of town vehicle.
TASK: TB to address this during FY2011.
Line 103: Ambulance Salaries – long discussion – see notes in point (4) above
Line 113 Dog Officer. Apparently this position really is “Animal Control Officer”. Vote to take Bert Goodermote’s offer of $3,000 salary reduction.
Line 128: Veteran’s Benefits. Increased since town is now paying Benefits to one veteran, which are expected to continue through at least part of FY2011. Mass. reimburses Becket 75% by Nov 10th of following fiscal year, but reimbursements do not go to General Fund; must wait until Free Cash certification to use them! Increased amount voted, passed.
Line 130. Council on Aging. TB recommends 1000/year increase, to $6,000. FinCom is sympathetic, but wishes to hold all expenses level. Motion to keep @ $5,000 (level fund). 4 For, 1 Abstain. Passed.
Line 136 Parks Dept – not yet advised of proposed decrease.
TASK: TB to follow up with members of this commission
Line 138. Becket Athenaeum. Approve $30,000 so they don’t lose state certification.
TASK: TB Find out if Washington increased their contribution; reduce budget if so
Line 145 Health Insurance. Question whether this is gross amount, including employee portion, or net amount? What is the process for employee payroll deductions to contribute towards health insurance?
TASK: TB to find out.
Line 155 Finance Committee Reserve. Was $14,000 – increase to $20,000 to provide flexibility during year of budget re-organization.
- Reserve Transfer. Requested $3,300 to Veteran’s Benefits, per Mass. General Law. Becket will get 75% reimbursed by Nov 10th, 2010 (although reimbursement is not available till after free cash is certified at end of FY2011). Passed.
- Special Articles
Steve LaBelle suggests we call Lenny to find out status of stainless steel truck body approved in past. Was it purchased? How many more do we have to fix?
TASK: Steve to follow up with Lenny
Discussion to be continued at 4/15/10 FinCom
Line 188. Computer Hardware upgrade – amounts in Requested/Recommended columns were reversed.
Line 132 Council on Aging summary – should be $8,500 proposed; $7,500 approved
Richard Pryor suggested that Select Board ask Town of Washington for increased contributions to cover Ambulance, Fire, Athenaeum, and any other shared services. It appears that Washington is paying disproportionately less than their share of actual total expenses, based on usage.
Adjourn @ 9:30pm.
Respectfully Submitted
Jeremy Dunn
Clerk
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