Budget Hearing # 6"
Minutes of the Joint Meeting of the
Selectmen and Finance Advisory Committee
21 February 2007
Attending:
Frank Fenner Selectman Marshall Carroll Fincom Chairman
Riggs Parker Selectman William Randol Fincom PersonNameRichard Williams Fincom
PersonNameTim Carroll Executive Secretary PersonNameFrank Yeomans Fincom
PersonNameTom Wilson Accountant Douglas Sederholm Fincom
Melanie Becker Treasurer
Russell Walton Recording Secretary
Absent:
PersonNameWarren Doty (BOS)
Sarah Shipway (Fin Comm.)
Chairman Marshall Carroll opened the meeting at just past 7:00 PM, after Mr. Williams arrived to make up the quorum for the Finance Committee.
PersonNameTim Carroll passed out copies of a suggested change in the wording of Article 2 of the ATM, from citing "as printed under Departmental Budgets"to " Per Departmental Salaries and Expense totals as printed'. This would allow the flexibility within departmental budgets that we have had. A
recent legal opinion from Town counsel and DOR indicates that any transfers within departments should be strictly limited to Town Meeting, or to formal action by the Fincom - using Fincom reserve funds, or other more cumbersome methods outlined in MGL. This is to be considered next week (28 February).
Treasurer:
Melanie Becker passed out a sheet showing some changes in various accounts due to a reduction in the COLA. She pointed out that this was one of several assorted reports she had been
able to produce using her software. Riggs enquired about ADP, and was told that for many things it is fine, but some of the output could be confusing, at least to non-experts. For example, the software shows benefits carried over from one fiscal year to the next, giving a false sense of the actual count of available days of vacation time. Bill Randol questioned the data processing line at $12,000. Ms. Becker agreed that it had been excessive, but said rates were rising all the time.
She feels that we are not much over-budgeted for this year," we should just squeak through this year".
There followed a discussion of the possibility of unified software for the entire Town Office. "Munis" is designed to be an integrated system for all uses, but is very expensive for a small town like ours. It seems hard to find a single inexpensive system, which satisfies all the different Boards, committees, and individual offices. Mr. Williams asked whether ADP could provide the needed reports of "times", sick times, vacation, comp. times, etc. and was advised that the data might be there but the software is limited. placeWest Tisbury has a system, which is supposed to track all permits, but doesn't do it smoothly or consistently.
910 Employee Benefit / Contributions:
PersonNameTim Carroll pointed out a large increase in Medicare. Ms. Becker said Medicare is calculated on a percentage of payroll, therefore rises as the payroll rises. Bill Randol commented that the health line was high Melanie said she had been advised to calculate a 10% rise, then revise downward when the actual number became available (March 7th, supposedly). She added that there are (planned, subject to approval/disapproval at Town Meeting) some added benefited personnel. If some of the positions are not approved, then the total health cost should drop. One factor in keeping the cost down is employee decisions about choices of plans and coverage.
There was a discussion of the desirability of allowing/advising employees to take time (free?) to explore different plans, discuss health insurance with representatives of different plans. Mr. Williams and Mr. Yeomans felt there might be some constraints on some companies. Use of a consultant for one-on-one discussions seems to work; Judy Jardin in Aquinnah and Cathy
Logue in placeWest Tisbury both seem to have been effective in educating employees about less-expensive plans - which may be reasonable, as some plans have extras not needed by certain of the employees. .
710 Retirement of debt:
there was a brief discussion of some seeming discrepancies, most of which showed up as Interest (on the next page of the budget). The pay down on debt at the level stated is approximately 6%, the remaining debt will still be close to last year's level of $5.6 million.
752 Interest on Short- Term Debt:
This was a small amount, decreasing. No questions.
Mr. Yeomans mentioned the possibility of State takeover for under-performing retirement funds. Ms. Becker identified this as PRIT (Public Retirement Fund Investment Trust) Mr.Yeomans seemed satisfied with the diversification of the investments in the town's plan, and said the investment performance had improved since PRIT was brought in to manage a major portion of plan assets although portfolio risk may have increased.
135 Town Accountant:
Only the COLA expands the salary line. No questions
The Audit is level funded.
PersonNameTom Wilson noted that there were some points made in the auditor's report
which still need to be resolved:
The Town should have a policy set up to deal with any suspicions of
malfeasance. For example, to whom should someone go to start?
A "risk assessment should be done to determine how much money (or assets)
may be at risk, and whether that risk is "tolerable".
There should be a Capital Improvements program. Mr. Yeomans noted that our
capital planning seemed not to be very formally set up. PersonNameTim Carroll explained that the problem is that items (such as the needed amount added to the Library fund) tends to crop up and be "jumped to the head of the line" Riggs parker agreed that we do need to set a capital Investment/Improvement plan in place, and do it right.
114 Moderator:
This small amount is described as "dues", but Mr. Poole could do whatever he
wants with it, including paying dues.
122 Board of Selectmen:
PersonNameTim Carroll explained the rise in his salary as only a COLA, but advised that the final figure will be less, as the COLA had changed since the budgets were calculated.
The Assistant to the Exec. Secretary (A. Anthony) had received a step increase.
The decrease in the Coordinator's position is due to partial payment of this position by the Personnel Board.
There were no direct questions, but two brief discussions ensued.
Mr. Yeomans noted that some copies of the last (2005) Town Report were misprinted, and that there had been some typos. Was this sort of thing supposed to be eliminated by digital processing?
PersonNameTim Carroll explained that there had been some "extras' due to paper-cut and print run problems. The examples found by Mr. Yeomans were presumably from "the dregs" - the last carton. Most of the budget was set in QUARK (software); there were some problems in translation & spreadsheet column shifts.
Riggs Parker asked about the splitting of the postage into separate bits for individual budgets. Tim's response was that no one feels responsible if postage is not in the individual budgets. Doug Sederholm asked what the overall total was for the Town Offices and was told "about $10,000"; this was confirmed by PersonNameTom Wilson, who went to do a quick total and reported "$10,560 - estimated". PersonNameTim Carroll noted that there had been a problem of spoilage when we had pre-stamped envelops. The current postage meter does not have enough "slots" for the present number of different offices. Tim is going to research the possibility of a different postage meter or maybe the "on-line postage". It was noted that some boards have to use certified mail at $4+ per item,
times sometimes many items, for example a Conservation Commission or Zoning Board of Appeals mailing in Menemsha.
131 Finance Committee:
There were no questions.
151 Legal:
PersonNameTim Carroll noted that the only major change was for the Middle Line Road housing project, not all of which is covered by Community Preservation Funds.
Mr. Williams asked where does this account go, what are the charges? Riggs outlined the policy of checking with Tim to see whether a given question had been asked and an opinion rendered. (He noted that some questions and opinions do not get forwarded due to their sensitive
(executive session) nature. Tim noted that these charges were multiple, minor expenses, usually not the major expenses of litigation. Frank Fenner and Doug Sederholm queried whether the budget would be sufficient, Doug commenting that the basic rate had gone up by 10% - legal
costs are not really predictable. PersonNameTim Carroll pointed out that the real trick was to frame the precise, concise question, so as to get (nearly) a yes or no answer - which Doug said is not an answer any lawyer would give.
161 Town Clerk:
it was said that the wages are stable (but COLA?). In the Clerks absence,
there was no further discussion.
192 Town Offices/Bldg Maintenance:
The Custodian was complimented (in absentia) for the excellent condition of the Offices.
Frank Fenner queried the $10,000 for line 5341 - telephones, etc. Tim pointed out that we have 19 lines into the building, two FAX lines, and long-distance fees of $7-800 per month (all of the Town Offices except the Library). When the bills come in Tim checks them and refers any really
egregious to the appropriate Department head, but these are $10 or more, like the $25 call to Australia.
A problem has been Police department employees with off-Island cell phones calling home to get messages, or individuals here for a week or more calling home (to Maryland, etc.). The telephone company does track calls to office extensions, and these can be chased down, but for most calls it seems not worth the time and energy to ferret out the amounts involved and then charge
them separately. In practice, most of the individual department account budget amounts are transferred in to this account - meaning that every once in a while the account is over-funded.
Riggs Parker noted the decrease in heating fuels (line 5211), and was concerned that it might be too low. Tim pointed out that there had been a move from one building to the newer, renovated one, and that the heating system and thermostats are new. (Yes, there is a cool corner next to a
north-facing window. -RWalton said.) Riggs had a question on the Computer Supplies line, answered by PersonNameTim Carroll: we're waiting, patiently, for a Microsoft update. Most computer expenses are paid out of warrant articles.
194 Community Center:
Riggs asked about the multiple lines for custodial supplies, other supplies, etc. PersonNameTom Wilson and PersonNameTim Carroll responded that the lines could be amalgamated to some degree, but the detailing was originally set up so as to track various expenses across the entire (Town) enterprise.
Mr. Williams asked whether, if a particular line budget was spent, amounts could be transferred in from similar lines. Tim's response was that method had been the practice for years, but that we have been technically incorrect - hence the desirability of the ATM change from strict line
accountability to department totals.
196 Selectmen's Maintenance / Unclassified:
It was explained by Tim and Riggs that this account is what gets used for sudden and unexpected maintenance - like the washout of Lucy Vincent road a couple of years ago, repairs to the Silva farmhouse, and the Engley house. PersonNameTom Wilson suggested that this account is a parallel to the Reserve fund, to be used chiefly for smaller items. According to Tom, the Fincom is supposed
to oversee transfers between departments. This account allows for maintenance for departments, which have small or no maintenance line items. Regarding the Silva farmhouse; if the current occupant is institutionalized the Town will have to take over the maintenance and management of the farmhouse and outbuilding.
199 Comfort Station:
PersonNameTim Carroll noted that a total of $29000 had been transferred to this account (as shown in blue on the analysis sheets) from two related accounts. Tim was unsure that the amount cited for "water utility" would be sufficient. This includes (many) showers; the Menemsha Water Company pricing may rise at their July annual meeting. Tim said that "the contract" for the Comfort station had been renewed for year with the same vendor.
291 Emergency Management:
PersonNameTim Carroll said that we have a grant for reimbursement of training costs, so that the costs and reimbursements "will essentially be a washout", but we have to pay first, and then be reimbursed.
299 Shellfish Constable
Tim noted that there is three warrant articles, which may alter this position - if voted at ATM. If not, the change would be limited to COLA additions.
- A Shellfish Restoration Committee
- A Shellfish propagator
- funding for the recommendations of the Shellfish Restoration committee.
Riggs and Frank said there was real interest being shown, with two oysters farming operations, and now a proposal for Blue Mussels. The hope is to make the shellfish resource (natural assets) profitable again. There was some brief discussion of how much difference there would be in
staffing, times, etc. It was suggested that Stan Larsen and the propagator or assistant would have to jockey around a little to settle these problems among themselves.
There was a brief discussion of the MV Shellfish Group, the possibility of re-establishing the Wampanoag Hatchery (but by whom? - the town does not want to get involved in the tribe's affairs), and queries about why the Wampanoag's had fired their staff.
840 Martha's Vineyard Commission:
(The Budget in the books is the December draft, needs to be updated). Melanie Becker asked Doug Sederholm (one of our MVC reps.) whether health insurance increases had been discussed and included. Doug noted that a potential discrimination situation had been resolved, but this meant higher health insurance. Tim suggested that a change would be legal if done "across
the board".
There was a discussion of the relative percentage age of property values, as used to assess the Towns across the Island. . Chilmark's valuation appears to be $2.7 billion of a stated $14,111,339,800. The suggestion was made that the use of the term "equalized," means someone is getting treated unfairly.
There was a brief discussion of the three-year formal revaluation and the intervening adjustments applied by the Assessors, the latter to lessen the Shock. "But if the tax is going down, why is my tax bill $1000 more this year?"
945 Liability:
PersonNameTim Carroll pointed out that if our assorted Town employees and Board members attend training classes our liability insurance cost drops by 3%. There is also a decrease for low claims. On the other hand, a claim for an accident like the totaling of a cruiser on South Road last year tends to
kick us up a notch. (Several members of the Police department took special driver safety classes after that accident.)
Other Liabilities and Assessments:
It was said, "the VTA charge on the Cherry Sheet is scary". Tim suggested that if we can pay it off without going for an override we probably should, rather than have this lasting liability hanging (and accruing interest). Frank suggested taking this $122,000 assessment to the
voters. Riggs told the group that there had been a meeting earlier in the day (Wednesday, 21 February) at which the possibility of keeping the "formula" for school apportionment of costs at the old levels. This may be continued for another year. Tim said that we should be able to pay
the first and second assessments. Frank Fenner noted that Deval Patrick was going to submit his budget proposals on the 28th of February, very much last-minute in terms of our budget process - and of course with no certainty that those proposals will be accepted!
The 6th Budget Meeting adjourned at 9:10 PM.
Respectfully submitted,
Russell R. Walton,
Secretary pro tem.
| 
