Town of Mashpee
16 Great Neck Road N.
Mashpee, Massachusetts 02649
FINANCE COMMITTEE – PUBLIC SESSION
Thursday, March 24, 2011 – 6:30 PM
Town Hall – Conference Room 1
Minutes of the Meeting of Thursday, March 24, 2011
Committee Members Present: Also Present:
Oskar Klenert, Chairman Joyce Mason, Town Manager
Charles Gasior, Vice Chairman Theresa Cook, BOS Liaison
George Schmidt, Clerk
Christopher Avis
Robert Chalker
Mark Davini
William Johnson
CALL TO ORDER
Chairman Oskar Klenert called the meeting to order at 6:30 PM.
OPENING STATEMENT – Oskar Klenert
“Each member of the Finance Committee has voluntarily assumed the responsibility to read and to the best of his ability comprehend the contents of each warrant article in order to give to the Board of Selectmen, the Executive Branch of the town, and more importantly, to explain the intended or unintended effect it may have on the local residents within the town borders. All articles which have financial impact are to be seen and understood for the eyes of all citizens especially when they affect services offered by various town departments, or the owner and operator of business. It is the responsibility of each Finance Committee member to read and review each article and offer his recommendation to the voter, who is collectively the legislative branch of the town government. Our vote is not to be construed in any
other way except to give guidance and recommendations. The members of the Finance Committee bring to the table many and variable professional experiences which range from former town managers, CEO’s of major corporations, financial accounting, medical and business experience. Once again, kudos to all members who serve on this committee as well as those being involved in other town affairs. Thank You.”
APPROVAL OF MINUTES
George Schmidt made a motion that the minutes from the Finance Committee meeting of Thursday, March 10, 2011 be approved as presented. Charles Gasior seconded the motion. The motion was unanimously approved.
PUBLIC HEARING – Opening Statement - Oskar Klenert, Finance Committee Chairman
“Pursuant to Section 6-6 of the Charter of the Town of Mashpee, the Mashpee Finance Committee will conduct a Public Hearing on the Fiscal Year 2012 operating budget of the Town of Mashpee, submitted by the Town Manager. That hearing will be held on Thursday, March 24, 2011, at 6:30 PM in Conference Room 1, Town Hall, 16 Great Neck Road North, Mashpee, MA. Copies of the budget are available in the Town Manager’s office or can be viewed on line at www.mashpeema.gov. By order of Oskar Klenert, Chairman, Charles Gasior, Vice Chairman, George Schmidt, Clerk, Christopher
Avis, Mark Davini, William Johnson, and Robert Chalker, the members of the Finance Committee.”
Presentation of Proposed FY12 Budget – Charles Gasior
Charles Gasior stated that in the Town of Mashpee, the Executive level of government is the Board of Selectmen and the Town Manager, and in the Open Town Meeting form of government, the Legislative branch of government is comprised of all the taxpayers in the town. Therefore, the people who come to the town meeting are, in effect, exercising their right as the legislative branch of our government. This represents the purest form of democracy. It is incumbent on the residents to learn what is happening in their municipalities. The Charter requires that the Finance Committee review all warrant articles in the budget and make recommendations to the legislative branch of the government. The way this is accomplished is that a week before the Town Meeting, a booklet containing the Finance Committee report with
recommendations on all the warrant articles that will be discussed at Town Meeting will be mailed to all town residents for their review. Mr. Gasior explained that the first section of the booklet will contain the Finance Committee’s recommendations on all the budget line items that are going to be discussed at the May 2nd Town Meeting. The Moderator at the Town Meeting will be explaining the information in the middle section of the booklet. The principal business of the May Town Meeting is the municipal budget for the fiscal year 2012 which begins on July 1, 2011 and ends on June 30, 2012. Mr. Gasior explained that the Moderator will be going through the budget, giving a line by line description of all the elements included in the municipal budget. The Finance Committee has prepared a one-page summary table titled “Summary of FY 2012 Municipal Appropriations in Town Manager’s Budget”.
Mr. Gasior stated that the line item under General Expenses, Interest & Principal on Debt, reflects an increase of $402,375 in total debt payment for the town in FY 2012 due to the library debt which the town has assumed. Mr. Gasior commented on the debt schedule for the town, stating that in 2018 the high school debt will be paid off, and in the year 2028 the debt will be down to $425,675. Mr. Gasior noted that at this point in time there is no other future debt of any magnitude anticipated until and unless the town gets to the point of undertaking the sewer project.
Mr. Gasior stated that one of the requirements of the Charter for the Finance Committee is to try to project the tax rate as a result of the proposed budget for the coming fiscal year. The budget will not go into effect until July 1, and the tax rate will not be set until December of the year, making it a difficult task. The committee must take the budget and offset that with the non-property tax revenues including state revenues, municipal receipts, the use of surplus funds and uses of other funds such as the Community Preservation fund. The difference between the budget amount and the non-property tax revenues represents the amount to be raised by taxation. This year the total of the budget to be presented to the Town Meeting is $49,910,640, or an increase of 3.2% over last year, which will be offset by
$12,169,939, resulting in an amount of $37,740,701to be raised by taxes. After talking with the Town Assessor, the Committee anticipates that the property values will decline by another 4% this year, resulting in a projected tax rate for FY 2012 of $8.83 per thousand, or an increase of 46 cents.
Mr. Gasior reviewed for the meeting each line item included in the Summary of FY 2012 Municipal Appropriations in Town Manager’s Budget, stating that there were two line items yet to be finalized by the Finance Committee tonight: (1) the Town Manager’s budget and (2) the School Department budget.
Jonathan Leavitt of 3 Par Three Court, introduced himself to the Committee, and asked how the 3.2% increase in the 2012 budget will be covered. Joyce Mason replied that the town is using $1.5 million of free cash and other receipts such as ambulance receipts and shellfish receipts to stay within the operating budget.
George Schmidt made a motion that the Public Hearing be closed. William Johnson seconded the motion. The motion was unanimously approved.
OLD BUSINESS
1. Review/Approval of Town Manager’s 2012 Budget
School Department Budget Line Item Oskar Klenert stated that the Town Manager’s recommended budget for the School Department was $18,560,434, representing a budget increase of $300,000.
Robert Chalker made a motion that the Finance Committee approve the Town Manager’s recommended School Department budget of $18,560,434. Mark Davini seconded the motion. Discussion followed.
Christopher Avis stated that after reading the response from Superintendent Ann Bradshaw to the request from the Finance Committee for additional information on the school committee’s budget, it is apparent that the school committee does not intend to move away from the policy of prepayment. He still feels that the act of prepaying something and then funding something differently is not the most transparent way of preparing a budget. Christopher Avis stated that he would probably not vote in favor of a School Dept. budget of $18,560,434, but would vote in favor of a level funded budget of $18, 260,434.
William Johnson stated that he also has an issue with the School Committee budget, which has to do with the amount of contingencies that are included in the budget, but are not disclosed as contingents. There apparently is no understanding within the School Committee, from Ms. Bradshaw’s latest letter, that she understands what it is that the Finance Committee means by
contingency. Mr. Johnson stated that therefore, he will not approve the $18,560,434 school committee budget because he is not comfortable with the number.
Charles Gasior stated his feeling that the Town Manager’s budget is a fair budget for the school, and he will vote in favor of it. However, Mr. Gasior stated that he, like other Finance Committee members, is very frustrated by the prepayment strategy that the School Committee uses to prepare its budget. Mr. Gasior added his feeling that according to the Charter, the School Committee is a department of the town and its strategy of budget preparation should be the same as for all other town departments, i.e., each year’s budget should be a stand-alone budget.
Mark Davini stated that the School Committee budget may represent a fair budget, but he is not 100% sure of that, based on the way the numbers are broken down and the accounting mechanism that seems to be in place. He also has a problem with the prepayment methodology as the best way to ensure transparency in the budget. Mr. Davini stated that even though the School Committee budget may appear to be fair, he cannot be 100% sure of that, and therefore his recommendation will be to not approve the Town Manager’s School Department budget of $18,560,434.
Oskar Klenert called for a Roll Call Vote on the motion on the floor: Christopher Avis, no; Mark Davini, no; William Johnson, no; George Schmidt, yes; Oskar Klenert, yes; Charles Gasior, yes; Robert Chalker, yes. The motion was approved.
2. Town Manager’s Budget – Late Reduction
Charles Gasior stated that there was a late reduction of $5,000 from the Finance Committee budget of $154,780 to $150,000. Joyce Mason explained that the committee’s reserve fund remained at $100,000; the expense side was decreased by $5000 due to a transfer request of $5000 that was granted by the committee to cover the mailing of the warrant.
3. Review/Recommendations by Finance Committee on all Warrant Articles - Charles Gasior
Special Town Meeting Warrant Articles
Article 1. This article was approved by the Finance Committee at a prior joint meeting with BOS.
Joyce Mason explained that the three unpaid bills were received after the close of FY 2010 but represent a contractual obligation of the town. Town approval for payment of these bills is required.
The Finance Committee recommended Town Meeting approval of Article 1. Vote: 5-0
Article 2. Finance Committee recommended Town Meeting approval of Article 2. Vote: 5-0
Article 3. Finance Committee recommended Town Meeting approval of Article 3. Vote: 5-0
Article 4. Finance Committee recommended Town Meeting approval of Article 4: Vote: 4-1
Article 5. Finance Committee recommended Town Meeting approval of Article 5: Vote: 5-0
Article 6. Finance Committee put a hold on the vote until after Board of Appeals Decision on 4/13/11. The committee voted unanimously to make its recommendation at the Town Meeting.
Article 7. Finance Committee recommended Town Meeting approval of Article 6: Vote: 5-0.
Charles Gasior commented that all of the above seven articles are for use of funds from FY 2011, and therefore do not affect the FY2012 tax rate.
Annual Town Meeting Warrant Articles
Article1. Finance Committee recommended Town Meeting approval of Article 1: Vote: 5-0.
Article 2. Finance Committee unanimously recommended Town Meeting adoption of the Fiscal Year 2012 municipal budget appropriations. Vote: 7-0.
Mark Davini made a motion that the Finance Committee approve the Town Manager’s FY2012 budget of $48,166,356. George Schmidt seconded the motion. Roll Call Vote: Christopher Avis, no; Mark Davini, no; William Johnson, no; George Schmidt, yes; Robert Chalker, yes; Oskar Klenert, yes, Charles Gasior, yes. The motion was approved.
Article 3. Finance Committee recommended Town Meeting approval of Article 3: Vote: 7-0.
Article 4. Finance Committee recommended Town Meeting approval of Article 4: Vote: 7-0.
Article 5. Finance Committee recommended Town Meeting approval of Article 5: Vote: 5-0.
Article 6. Finance Committee recommended Town Meeting approval of Article 6: Vote: 5-0.
Article 7. Finance Committee recommended Town Meeting approval of Article 7. Vote: 5-0.
Articles 8 through 11: Finance Committee recommended Town Meeting approval. Vote: 7-0.
Articles 12 through 16: Finance Committee recommended Town Meeting approval of Article 12. Vote: 7-0.
Article 17. Joyce Mason stated that there is a public hearing scheduled regarding Article 17, prior to Town Meeting.
Charles Gasior made a motion that the Finance Committee postpone its recommendation on Article 17 to 5/02/11 at Town Meeting. Mark Davini seconded the motion. George Schmidt recused himself from the vote. Roll Call Vote: Chris Avis, yes; Mark Davini, yes; William Johnson, yes; Charles Gasior, yes; Robert Chalker, yes; Oskar Klenert, yes. The motion was approved, 6-0-1.
Articles 21,22,23, 26: Finance Committee recommended Town Meeting approval: Vote:7-0.
Article 24: Finance Committee recommended Town Meeting oppose Article 24: Vote: 7-0.
Article 25: Charles Gasior made a motion that the Finance Committee NOT take a position on Article 25. Christopher Avis seconded the motion. Roll Call Vote: Christopher Avis, yes; Mark Davini, yes; George Schmidt, no; William Johnson, yes; Charles Gasior, yes; Robert Chalker, no; Oskar Klenert, yes. The motion was approved.
Article 27: Christopher Avis made a motion that the Finance Committee NOT recommend Town Meeting approval of Article 27. Mark Davini seconded the motion. George Schmidt recused himself from the vote. The motion was approved. Vote: 6-0-1. The rationale for opposing the article is that it has not gone through CPA processing of funding.
Article 28: Christopher Avis made a motion that the Finance Committee NOT recommend Town Meeting approval of Article 28. Mark Davini seconded the motion. George Schmidt recused himself from the vote. The article was approved. Vote: 6-0-1.
Article 29: Mark Davini made a motion that the Finance Committee NOT recommend Town Meeting approval of Article 29. Christopher Avis seconded the motion. George Schmidt recused himself from the vote. Vote: 6-0-1.
4. Review/Approval of Invitation Letter to local State Reps – Christopher Avis
Christopher Avis distributed to the committee a draft letter to the local state representatives. Bob Chalker recommended inviting only local state, not federal legislators, to a meeting with the Finance Committee.
Mark Davini made a motion that the Finance Committee send a letter to the state legislators, as amended. William Johnson seconded the motion. The motion was unanimously approved.
Charles Gasior stated that he will email a finalized Summary of FY 2012 Municipal Appropriations and the Warrant Article recommendations by the Finance Committee to all committee members.
OTHER BUSINESS: April 19, 2011 – 3 PM to 6 PM at Town Hall, Conference Room 1: Open Meeting Law Discussion with Town Counsel Patrick Costello. All invited.
NEXT MEETING: To be determined, based upon need, prior to the May 2, 2011 Town Meeting.
As there was no further business, the meeting was adjourned at 8:40 PM.
Respectfully submitted,
Ina G. Schlobohm
Recording Secretary
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