TOWN OF MASHPEE
FINANCE COMMITTEE – PUBLIC SESSION
Minutes of the Meeting of Thursday, February 10, 2011
Town Hall Conference Room 1
Members Present: Also Present:
Oskar Klenert, Chairman Joyce Mason, Town Manager
Charles Gasior, Vice Chairman Theresa Cook, BOS Liaison
George Schmidt, Clerk Ann Bradshaw, School Superintendent
Mark Davini
William Johnson
Robert Chalker
Christopher Avis
CALL TO ORDER
Chairman Oskar Klenert called the meeting to order at 6:30 PM.
OPENING STATEMENT – Oskar Klenert, Chairman
Chairman Klenert stated that the Finance Committee has been established by the Town Charter for the purpose to advise the Board of Selectmen and inform voters of the Town of Mashpee on matters which affect the local tax rate. For additional information regarding the Finance Committee, please visit the Town’s Finance Committee website which currently is being brought up to date. All members of the Finance Committee serve the Town of Mashpee without pay or benefits. All are volunteers and therefore deserve to be recognized and appreciated.
It was moved and seconded by the Committee that the School Department Budget presentation by Superintendent Ann Bradshaw be placed on the agenda before the Finance Committee Report. The motion was unanimously approved.
APPROVAL OF MINUTES
George Schmidt made a motion that the minutes from the Finance Committee meeting held on Thursday, January 27, 2011 be approved as presented. Mark Davini seconded the motion. The motion was unanimously approved by the committee.
NEW BUSINESS
1.Town Administration Report – Joyce Mason, Town Manager
Joyce Mason stated that she was continuing to work on the budget and was hoping to have her recommendations ready for presentation to the Board of Selectmen for their first review.
2. School Budget Report for the year 2012 – Ann Bradshaw, Mashpee School Superintendent
Chairman Oskar Klenert introduced Ann Bradshaw, Mashpee School Superintendent, and welcomed her to the meeting, stating that on the agenda was a discussion of the school budget for the year 2012.
Ms. Bradshaw stated that her presentation objectives were to provide information on how the school conducts its finance business, to give an overview of the budgeting process, and to provide answers to some of the questions raised by the Finance Committee.
Ms. Bradshaw stated that the Finance Committee should be well pleased with the financial oversight and the transparency of the School Committee. The School Committee finance packet is emailed to 40 individuals each month. Anyone interested in receiving this packet is included in the mailing list, including the press. Within the packet are 40 pages of reports on financial activities, with two detailed line-item budgets: one in MUNIS, the accounting system that the town uses, and one using an Excel spread sheet, a format the School Committee finds easier to use. There are 200 line items reported each month. The budget is also posted on the website.
Ms. Bradshaw stated that every financial transaction that takes place by the School Committee is reviewed and processed by Town Counsel. Three School Committee members sign off on all bills before being paid. At the end of every fiscal year, all School districts in the state are required to submit an end of year pupil and financial report. The report accounts for every single dollar that is expended. The report is audited twice.
Ms. Bradshaw stated that Glen Koocher, Executive Director of the Massachusetts Association of School Committees, was invited last August to conduct a workshop with the School Committee. At the workshop there was discussion of how the budget was prepared and how the process was shared. Mr. Koocher reported that “The Mashpee School Committee is above all transparent, and is among the highest performing school committees in the State. Richard Bailey and Kathy Stanley, Chairman and Vice Chairman of the School Committee, were awarded our Division Achievement Awards by the Massachusetts Association of School Committees. Christopher Avis asked Ms. Bradshaw to elaborate on what was meant by “highest performing” school committee. Ms. Bradshaw replied that it covered their
involvement in the schools, their energy, their interest and the way that they take their responsibilities.
Ms. Bradshaw outlined the abbreviated School Committee budget development process:
Nov. 2 – budget numbers to Town Manager and discussion with School Committee
Dec. 30 – line item budget available for public review
Jan.7 - budget summary published in the Mashpee Enterprise
Jan 19 - public hearing
Feb 2 - School Committee voted the budget
May 2 - Town Meeting in May
Ms. Bradshaw stated that the School Committee budget request to the Town for FY 2012 is for a maintenance budget that allows the school to keep the staff and the programming currently in place, but does not provide for any new positions or new programs. The number the School Committee is asking the Town Meeting to approve is $18,887,708.00, the amount that is needed to maintain what the School has. The calculated amount that the school actually needs is $19,200,000, but the school has $386,302 in offsets that it can apply to the budget. The money came to the school in late fall 2010 as part of a federal stimulus package and the School Committee had the option to use it this year or apply it to the 2012 budget. In the offset category there is also $80,000 in circuit breaker funds (special education reimbursements). The $18,887,708 represents an increase of 3.4% over last year’s budget.
Ms. Bradshaw mentioned the variables yet to be determined, including circuit breaker funds, out-of-district tuition, a possible increase in funds from Chapter 70, the Special Education transportation contract going out to bid, and possible prepays at the end of the year.
Ms. Bradshaw commented on the quality of education in the Mashpee schools, stating that there are more students applying to more selective colleges, there is a strong special education program, there are academic enrichment programs, advance placement courses, and Mashpee still has a comprehensive curriculum in place.
William Johnson asked about prepayments that were made at the end of last fiscal year or prepayments that have been made for FY2012. Ms. Bradshaw stated that there have been no prepayments for FY 2012 to date, but they may occur closer to the end of the school year.
Ms. Bradshaw explained that the school receives discounts for certain prepayments, but not for special education transportation. Ms. Bradshaw stated that the benefit to the school for prepayment of non-discount costs was that it provided funds for other purposes, such as staffing. William Johnson stated that, in other words, the town approves a certain budget and as long as you stay within that budget, it is okay.
Mark Davini asked for further clarification: the school is pre-paying $400,000 in advance for something you need next year, because next year you will be $400,000 short in the budget.
Mark asked why the current budget can’t be operating on the current amount of money that comes in. Ms. Bradshaw stated that if the school had done that this year, they would have had to cut 17 instead of the 11 positions this year. Ms. Bradshaw stated that they could turn back extra funds to the Town at the end of the year to go into the general fund, but this is not to their advantage.
Ms. Bradshaw stated that the school is building its budget for next year without pre-pays, but if pre-pays are possible, it would be an advantage to the school. Ms. Bradshaw stated that the school is going to need an additional third grade teacher, and a math coach.
William Johnson asked Ms. Bradshaw about any negotiations with the unions regarding a lower rate of COLA this year, with budget salaries going up 2+ %. Ms. Bradshaw stated that the following union concessions were made:
- para-professionals agreed to work four fewer days for the year
- more teaching time for elementary specialists – five extra periods per week per teacher
- third year of contract, guidance counselors will work four more days during the year
William Johnson voiced his surprise that the union negotiators were not more favorably inclined toward the town and the taxpayer in these difficult economic times, and his feeling is that the town will have a hard time this year accepting any school salary increases.
Ms. Bradshaw stated that the school has no contingency plan in place in the event that the town does not approve the $18,887,708 budget being presented.
Mark Davini asked Ms. Bradshaw whether there were additional budget items beyond the three previously listed that are more estimates than hard core figures. Ann Bradshaw stated that the only other “floating” numbers would be state and federal grants, substitute teachers, number of teachers retiring, and perhaps replacement of copier machines.
William Johnson stated his feeling that the use of pre-pays is actually working against the school’s best interests. To understand a budget is to understand what is the real spending, and that is not true with the school budget. It gives a false impression of what is happening with the money. Mark Davini stated that the Finance Committee is talking about budget process. The process of money being budgeted to the school that is floating without knowing what it will be used for, increases a floating budget total that we can’t really get our arms around. The School Committee process is not clear to the Finance Committee.
William Johnson made a recommendation that wherever a pre-pay is concerned, show a column without the pre-pay and to show the numbers as finally resolved. Ms. Bradshaw stated that the School Committee would be open to a discussion with the Finance Committee regarding the use of pre-pays. Ms. Bradshaw plans to come back to the Finance Committee by the end of March with the School Committee’s final budget number.
3. Finance Committee Report – Review of Draft Document - Charles Gasior
Copies of the Finance Committee Report draft prepared by Charles Gasior were distributed to the committee members. Mr. Gasior explained that every town committee/board submits an annual report to the Town Manager, who then incorporates the documents into a Town Report. The first Article of every May Town Meeting is to approve the Annual Town Report. Mr. Gasior asked the committee members to provide him with their additions/corrections to the draft by the next meeting on February 24, 2011 before submitting it to the Town Manager.
4. Entitlement/Retirement Accounting – Oskar Klenert
Oskar Klenert reported that in a meeting with the new State Representative David Vieira, Mr. Vieira indicated that in order to obtain a credit rating for a town with the agencies, they require that these funds be spelled out to see what is being covered by the town and what the short fall is.
OLD BUSINESS
1. Invitation Letter to Cape Cod State Legislators – Christopher Avis
Oskar Klenert reported that he and Charles Gasior met with David Vieira and Mr. Hunt and was surprised to hear that the meeting was called by Mr. Vieira who was trying to get some input on the new bill filed to change the appropriations of the CPA fund. It was a good meeting because the consensus was that everyone is benefiting a little bit from these funds: the town administration, the humanities, the historical society, but the general public does not benefit, especially the maintenance of these facilities. All the towns around us have indicated that they are eager to get this changed so they can keep their recreational facilities in good shape. Charles Gasior stated that the matching funds come from the deeds that are recorded in the county. Oskar Klenert stated that Mr. Vieira had indicated he would be happy
to assist in any way, and therefore urged that the Committee move ahead with the invitation letter. Christopher Avis will finalize the letter for approval at the next Finance Committee meeting on 2/24/11.
2. Regional Tech High School Budget Increase – Charles Gasior
Charles Gasior distributed copies of a Cape Cod Tech FY12 Assessments chart, indicating that the total assessments have increased $330,115 (3.3%) in FY12 over FY11. The Mashpee FY12 enrollment has increased 9.7%, with total assessments increased from $886,926 in FY11 to $955,504 in FY12. Oskar Klenert stated his feeling that the taxpayers are justified in asking for an explanation of what is going on behind the scene.
Christopher Avis made a motion that the Finance Committee invite the Mashpee rep, David Bloomfield, and possibly the Regional Tech business manager and the superintendent, to attend our next meeting to explain the Cape Cod Tech assessment. Mark Davini seconded the motion. The motion was unanimously approved.
Oskar Klenert will extend the invitation to Regional Tech.
3. Finance Committee Web Site Subcommittee Report – Mark Davini
Mr. Davini reported on a meeting with Robert Chalker to discuss the possible contents of the Finance Committee web page, and distributed a summary of the meeting results to the committee.
George Schmidt made a motion that the committee review the suggested website contents and get back to the committee at the next meeting with any suggestions or recommendations for change for finalization. William Johnson seconded the motion. The motion was unanimously approved.
NEXT MEETING
The next meeting was scheduled for Thursday, February 24, 2011, at 6:30 PM. at Mashpee Town Hall, Selectmen’s Conference Room 1. As there was no further business, the meeting was adjourned at 8:30 PM.
Respectfully submitted,
Ina G. Schlobohm
Recording Secretary
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