 |
Present: Chris Carlin, Richard Crane, Christine Edwards, Peter Fimognari, John Goodrich, Bob Margerison, Maureen O’Sullivan, Peter Ross, Ann Lee (FinCom Admin. Asst.)
Also Present: Gretchen Neggers (Town Administrator), Deb Mahar (Town Accountant), Ed Harrison, Dorothy Jenkins (Town Collector), Marty Harris (Fire Chief), Karen Patenaude, John Morrell (Highway), Don Vacon, Hope Bodwell, Glenn Peck, Kurt Kaiser, Kathleen Norbut (Selectman)
Absent: Paul Desmond, Michael Laferriere, Jim Pennington
The meeting was convened at 6:30 p.m.
A motion was made, seconded, and SO VOTED to accept the corrected minutes of the 2/7/05 meeting.
A motion was made, seconded, and SO VOTED to accept the minutes of the 2/14/05 meeting as written.
CORRESPONDENCE
A letter received via e-mail from Jim Pennington was entered into the minutes.
A withdrawal letter from Michael Laferriere, Finance Committee member, was received. He explained he has accepted an employment position with hours that conflict with FinCom meetings, and stated he enjoyed working with the committee.
A motion was made, seconded, and SO VOTED to accept Mr. Laferriere’s withdrawal.
A motions was made, seconded, and SO VOTED to send Mr. Laferriere a letter thanking him for his service to the Finance Committee.
Pathfinder’s budget meeting has been re-scheduled for March 15, 2005 at 7:00 P.M. Mr. Fimognari plans to attend.
Barbara Beaulieu telephoned Ann Lee to respond to an invitation to meet with FinCom to discuss Pathfinder’s FY 0-6 budget. Ms. Beaulieu related the request to Gerald Paist, who recommended she meet with FinCom after the March 15 meeting if the committee still had any questions. FinCom agreed with her recommendation.
The newly revised Association of Town Finance Committees handbook was received. Each FinCom member received a copy on CD.
A letter dated February 17, 2005, from Judith H. White, Director of Monson Council on Aging, was received. The Monson Council on Aging Board invited a FinCom member to attend the Board’s next meeting on March 23, 2005 at 7:00 P.M. The Board believes departments will not have an opportunity to present their budgets to FinCom this year, as has been done in prior years. Mr. Carlin will contact Ms. White to explain that no decision has been made by FinCom to not conduct such department head budgetary meetings, and inform Ms. White she is welcome to attend FinCom meetings.
OLD BUSINESS / NEW BUSINESS
Request for Transfer from Reserve Fund to Police Department: The amount of $1655.00 is requested to pay for repairs to the police department’s emergency generator. The generator did not function during a power outage, creating a risk to lives and property in Monson. 911 state mandates includes providing back-up power. Mr. Ross asked Ms. Neggers if the Police Department has depleted their expense accounts. Ms. Neggers said they have not, but the Sergeant she spoke to explained they are over budget on the cruiser repair line item, and he does not feel comfortable depleting the rest of the expense accounts. Mr. Goodrich asked if the generator failure was due to lack of regular maintenance, and Ms. Neggers said that could be a possibility.
A motion was made, seconded, and SO VOTED to transfer $1655.00 from the Reserve Fund to pay for the emergency repairs.
Request for Transfer from Reserve Fund to Pension Fund: The amount of $150.36 is requested to pay for pension for Nicholas Gasperini while on military leave, per request from Hampden County Retirement.
A motion was made, seconded, and SO VOTED to transfer $150.36 from the Reserve Fund to Pensions.
Mr. Goodrich’s Exercise with Ms. Mahar’s Fiscal Year 2006 Budget Worksheet: Mr. Goodrich used the spreadsheet as a starting point. He used a total figure of $20,800,000; $156,643 less than Ms. Mahar’s total. He subtracted accounts he felt were “untouchable”, to come to a “flexible” total of $4,229,000. He calculated what percentage of that $4.2 million number each department represented, and cut each department’s budget by that percentage. He also halved the Reserve Fund, to $65,000. He used a Free Cash number of $384,000.
Mr. Fimognari noted that because of negotiated contracts, it may not be possible to make across-the-board cuts. Mr. Carlin asked Ms. Mahar if the Reserve Fund for the FY 06 budget should be $100,000. She responded that it would be difficult to justify that amount this year because fuel costs are not as volatile as last fiscal year. She added that FinCom will have to decide whether to use the $100,000 in the general fund to decrease shortages, or re-visit utility accounts that will be inadequate. Mr. Ross stated it is important to budget fuel accounts closer to actual cost, and Mr. Fimognari agreed and added it should be something do-able at this point in the season. Mr. Carlin asked how much of the Reserve Fund has been used to date, and Ms. Neggers replied $2000. Ms. Mahar related that
as of February 15, some departments are in a deficit, though not large, some departments will have enough in their budget, and Reserve Fund need should be evident soon.
Mr. Goodrich noted that in doing this spreadsheet exercise, he saw little that FinCom could effect, and could see no way to make major reductions without making personnel cuts. He added that at the Selectmen’s meeting, he didn’t get the sense that people feel we are in a “dire emergency.” Mr. Ross agreed. Ms. Neggers explained the Selectmen froze the salary grid, which is supportive of FinCom’s position. She added she hopes to see FinCom address the Selectmen at their next meeting. Mr. Ross, Mr. Goodrich, Ms. Mahar and Ms. Neggers discussed what step raises are and how they are given. A step raise is a guaranteed salary increase that an employee receives as a result of longevity.
Mr. Carlin questioned the financial needs that are not addressed in Ms. Mahar’s spreadsheet. Ms. Mahar and Ms. Neggers explained they are: any increase needed for Pathfinder, capital needs, Snow and Ice Removal, any funds needed for the Margaret Street landfill, any amount requested above NSS, the $22,000 requested for the Transportation account, and additional personnel requested for the ambulance. Mr. Ross questioned where the $200,000 Snow and Ice Fund money comes from; Ms. Mahar said it is taken off the top. Ms. Neggers added that some federal reimbursement is expected. Ms. Mahar’s total includes $384,000 of Free Cash used; as Mr. Carlin pointed out, the actual structural deficit for the FY 06 budget is $541,000. Mr. Carlin questioned the Free Cash available right now; Free
Cash is currently $708,044.
Ms. O’Sullivan asked if Ms. Mahar’s police salary number includes the School Resource Officer, and where it appears in the budget. Ms. Mahar confirmed the salary is included in the police salaries; the School Department is assessed $20,000, their portion of the SRO salary, which reduces NSS. Ms. O’Sullivan asked if there was any information on the possibility of a waiver of the grant’s imposed 1 year funding by the town. Ms. Neggers answered Sgt. Kozlowski contacted the Department of Justice and learned there are several reasons ways to go about applying for a waiver, and added the Selectmen need to authorize an application. A waiver would make Monson ineligible to apply for grants for 1 year. It is not known if this applies only to the Police Department or would have
town-wide ramifications. Chief Harris related he currently has 2 grants. Mr. Margerison asked if the grant money paid the SRO during the summer as well. Ms. Neggers answered yes, that an officer was hired for the SRO position, increasing the police force by 1.
Mr. Goodrich asked if tighter budgets and better budgeting mean Free Cash will not be rejuvenated by large amounts. Ms. Mahar replied that is a safe assumption. Mr. Fimognari reminded FinCom that they are reaching the end of a five-year plan. If they are now looking at a two-year plan, they should be considering using half of the available Free Cash. Mr. Carlin added to keep in mind that $297,000 of the Free Cash amount is the bond premium due, and in reality there would be approximately $20,000 left in Free Cash if FinCom were to use $384,000 to fund FY 06. Mr. Harris noted the $290,000 bond premium does not have to be paid all at once. Mr. Carlin stressed the town needs to clearly understand that Free Cash will not be replenished at the large rate it has been in past years.
Mr. Ross’s Exercise with Ms. Mahar’s Fiscal Year 2006 Budget Worksheet: Mr. Ross assumed a $150,000 shortage in the FY 06 budget, after adding in departmental increase requests. He noted this doesn’t include a Pathfinder increase or capital needs, and wondered if Snow and Ice Removal should be budgeted higher. Mr. Goodrich noted that if raised, it can’t be lowered, and if not used is lost. Mr. Ross was able to decrease the shortage to $70,000 by cutting some departmental increase requests, including the SRO, additional police cruiser maintenance, a part time Building Inspector Assistant, and Council on Aging van driver hours increase. At that, the only cuts he could see would be drastic reductions in departmental budgets. He noted peak Free
Cash usage of $609,000 in FY 2003. Mr. Crane summarized that this exercise shows how desperate the situation is. He added FinCom needs to decide tonight how much Free Cash to use, and that the proposed $384,000 seems to be in line historically.
Mr. Margerison asked what amount could be considered a comfortable Reserve. Ms. Mahar answered it was $30,000 for many years. Mr. Carlin added it has never been a very large amount, except for the current $100,000 for utilities.
Mr. Kaiser questioned why FinCom is considering holding Free Cash in reserve, as his understanding is that Free Cash is generated when revenue exceeds expenditures. Mr. Kaiser stated that he feels we don’t have adequate revenue because we are not appropriating enough money. Mr. Goodrich answered the expected FY 06 revenue does not meet expenses, and this has been the case for the last 3 years. FinCom projected four years ago that it would take three to five years to regain a balanced budget. The committee has been trying to conserve Free Cash because based on revenue projections, Monson is not taking in enough revenue to run the town.
Mr. Carlin asked where in the budget is the $65,000 bond premium. Ms. Mahar explained it is part of the bond debt. The money is available and reserved for expenditure, and there is sufficient funds through FY 2011.
Mr. Carlin asked if any FinCom member has a motion to present a Free Cash number to the Selectmen at their March 8 meeting. Mr. Ross suggested $384,000, the same amount used last year but less than the last three years. Mr. Goodrich and Mr. Ross agree this is the way to cause the least disturbance to town services.
Mr. Goodrich motioned to approach the budget process using $384,000 of Free Cash, and the motion was seconded. Mr. Margerison noted concern at using Free Cash to balance the budget, and stressed the need to level fund the town budget some time in the future. Mr. Fimognari stated that using $384,000 still leaves a shortage of $157,000, and reiterated his belief that if FinCom is looking at Free Cash in the framework of a two-year plan, it can use more than the $384,000, which is less than half of the available Free Cash.
It was SO VOTED to use $384,000 of Free Cash, with Mr. Fimognari voting NO.
Mr. Carlin asked as many FinCom members as possible to attend the Selectmen’s March 8 meeting. Mr. Harris stated he was not certain what FinCom intends to present at the meeting. Mr. Carlin answered FinCom will state it plans to move forward using $384,000 of Free Cash, leaving a budgetary shortage of $157,000, that does not address additional unknown variables. This will also serve to alert the public.
Mr. Ross stated he is nervous about the School Transportation budget. He feels FinCom needs a consensus on the additional funds requested, which he does not support.
Mr. Carlin asked Ms. Mahar what a 1% salary increase translates into for the School, Department Heads and AFSCME. She answered approximately $105,000, adding that figure is not included in her spreadsheet.
Financial Components Capital Funding Proposal: Ms. Neggers asked to place this item on the agenda for March 7, 2005, and gave each FinCom member the handout.
The next scheduled meeting of the Finance Committee is March 7, 2005 at 6:30 p.m. at the Town Accountant’s Office.
The meeting was adjourned at 8:20 p.m.
Respectfully submitted,
Ann M. Lee
Administrative Assistant to the Finance Committee
| |
