Present: Chris Carlin, Paul Desmond, Christine Edwards, Peter Fimognari, John Goodrich, Maureen O’Sullivan, Jim Pennington, Peter Ross, Ann Lee (FinCom Admin. Asst.)
Also Present: Gretchen Neggers (Town Administrator), Deb Mahar (Town Accountant), Tina Augustin, Hope Bodwell (Library), Marty Harris (Fire Chief), Ed Harrison (Selectman), Dorothy Jenkins (Town Collector), John Morrell (Highway Surveyor), Karen Patenaude (School Committee), Nicole Soucy (Journal Reporter)
Absent: Bob Margerison
The meeting was convened at 6:30 p.m.
A motion was made, seconded, and SO VOTED to accept the minutes of the 4/4/05 meeting, with the following corrections:
under Correspondence, change “have increased 2 ½” to “have increased 2 ½%
p. 3 top, change $20,00 to $20,000
CORRESPONDENCE
A copy of a memo dated April 4, 2005 to Carol Woodbury, School Superintendent, and BOS, from Deb Mahar, Town Accountant, re: the End of Year Report Policy, was received. This is a comprehensive report that the School must complete for DOE. Ms. Mahar drafted the policy a year ago at the request of the accountant, and it needs to be finalized by the School and BOS.
The Expenditure Ledger Variance with end date 3/31/2005 was received. Available funds in the Reserve Fund are $23, 032.77. Available funds in the Utility Reserve Fund are $96,950.00.
OLD BUSINESS / NEW BUSINESS
New FinCom member appointed by Committee: Mr. Carlin introduced Tina Augustin, who has asked to be a member of the committee. Mr. Ross motioned to appoint Ms. Augustin in the interim until the ATM, it was seconded and SO VOTED.
Budget worksheet discussion: Mr. Goodrich stated he believes the town is “running pretty lean”, and he feels all departments should be treated equally – and level funded.
Mr. Ross shared budget cuts and additions he proposes as a result of speaking with several department heads:
Nancy Morrell, Town Clerk, stated she is able to reduce the amount needed for elections by $1900, but will need that money back in FY07. Mr. Fimognari questioned why the line can not be reduced by two thirds, as there is only one election in FY06 and there were three in FY05. Ms. Mahar explained $2,000 is for the election registrar’s yearly stipend, no matter the number of elections. Mr. Goodrich suggested Ms. Morrell can best explain.
Chief Harris reduced the expense line by $1,311 to increase the salary line, in order to level fund the budget. He stressed he does, in actuality, need that money.
Mr. Ross removed $4,500 from Hazardous Waste.
Ms. Mahar stated Interest on Borrowed Money can be reduced by $5,000.
Ms. Mahar stated FICA can be reduced by $12,380, as some long term employees have left.
Mr. Ross level funded expenses, zeroed the Highway Downtown Street account, increased PD Salaries by $42,000, and increased Ambulance Salary by the amount needed to maintain part-time EMT’s.
In making the above noted adjustments, Mr. Ross needed to use $407,000 of Free Cash.
Mr. Fimognari felt that Mr. Ross’ proposals, which funded some raises, meant FinCom would need to look at funding all raises; the committee can’t pick and choose. He added that some contracts are being negotiated. Mr. Carlin reminded members of the estimated $100,000 increase needed to pay for each 1% increase. Mr. Fimognari asked what the number is without School dept. raises, because “NSS is NSS.” Ms. Mahar answered approximately $29,000 for each 1% increase for everyone but the School. Mr. Goodrich wondered where FinCom would get direction as to how to fund contractual raises for the School. Ms. O’Sullivan noted that last year, the voters said NSS, and she also wondered how FinCom should act.
School’s request for $90,000 STM article: Mr. Goodrich recapped that the money has been spent, and the bill must be paid. If the town votes “no” on the article, how does it get paid? He noted the prior years’ lunch budget and bus budget overruns. Mr. Carlin questioned if there is a request for an article, and if discussion is expected. Ms. Neggers answered there is an article before BOS, and she expects discussion on the School’s failure to communicate this need in a timely manner. Mr. Carlin asked if a School Committee member will be at the BOS meeting 4-12. Ms. Neggers replied she encourages everyone to be at the meeting, as it is the only time the article will be discussed. Mr. Fimognari noted the School gave raises last year, and is now
asking for approximately the same amount; it should have planned better. Mr. Carlin asked if there are guidelines for BOS to put the article on the warrant or not. Ms. Neggers explained BOS has discretion to decide. BOS can put the article before the voters to let them decide. FinCom can set recommendations for voters. Ms. Neggers added there is a great risk if the article is not put on the warrant. If the expenditure is not funded, she suspects the town will be in the situation of illegal deficit spending. She is not aware of any contingency plan if the overrun is not funded.
Mr. Pennington mentioned that Ms. Woodbury explained the Special Education budget is a moving target, and he agrees to some extent. He added that BOS needs to send a strong message that the School needs to stay within budget constraints, and look at educational options. Mr. Carlin noted that he sees no “catch-up” money in the School budget, referring to the fact that School funding based on student population lags one year. He asked BOS to get clarification. Mr. Goodrich expressed concern over the time frame from when the School was aware of the shortage and the time that information was shared, adding the overrun was known before STM. Ms. Mahar answered that the School did get additional funds at STM. Mr. Goodrich noted only $30,000 was requested and received. Ms.
Mahar answered that Ms. Woodbury explained the anticipated circuit breaker amount was expected to cover the additional funds needed.
Mr. Carlin stated he expected BOS to ask those questions at the 4-12 BOS meeting. Ms. Mahar added she hoped a member of FinCom would attend. Mr. Harrison explained that the one hour meeting would not allow much time for discussion. The article will probably be placed on the warrant, which will give time for all patrons to make decisions. He added that as FinCom is questioning the appropriateness of recommending cuts, it is perfectly legitimate to suggest any and all cuts and give departments the opportunity to examine their budgets.
Ms. O’Sullivan asked how the $90,000, if passed, could be funded. Ms. Mahar answered there is $41,000 in the Pathfinder line, and the Utility Reserve Fund can be adjusted. Mr. Morrell stated “and don’t let them fill their fuel tanks.” He said he was criticized for doing that a few years ago.
FY06 Budget Discussion: Mr. Goodrich stated FinCom has to make a decision: do we mandate “whenever possible, level-funded budget”? Mr. Fimognari questioned if FinCom added enough to fuel budgets. Mr. Goodrich suggested FinCom could give level-funded budgets, with appropriate fuel increases, to department heads, to give them the opportunity to make adjustments and reply to FinCom. Mr. Carlin shared the following numbers:
FY05 budget 20,276,526
NSS increase 340,000
Pension increase 118,000
Health insurance increase 207,000
20,941,000
SRO (after School contribution) 36,000
20,977,000
The increase from the FY05 to the FY06 budget is approximately $700,000. While strong cases for increases can be made by every department, the financial reality means it may not be possible. Mr. Carlin added these numbers show Monson can’t continue to fund operational costs with Reserve funds. Mr. Goodrich added he doesn’t want to dismantle departments’ willingness to work together by giving the impression that FinCom is not playing fair.
Ms. Neggers asked what level of cuts FinCom is considering. She said FinCom had the same discussion eight weeks ago. She realizes FinCom has many weighty issues to consider, but must realize that not all departments can be level funded. Some departments will need budget increases, and some will need to be cut in order to maintain critical services such as the ambulance and the commitment to the SRO. Mr. Harrison added FinCom absolutely must prioritize town services.
FY06 Budget: The committee reviewed the budget line by line. Recommendations are as follows:
Line
Account Requested FY06 Amount Recommended FinCom Amt
Justification
9 Petro. Prod. 87,700 96,470 Increase fuel by 10%
131 Reserve Fund 130,000 30,000 Disburse funds into dept. lines
136 Audit 30,000 30,000 3rd yr. of cont. agreement, need 2K extra
141 Assessors Exp 9,150 8,894 Decrease $166 to bring to level funding
144 Bank Fees/Pay Proc 11,500 10,550 Can decrease 1 K per Deb Mahar
145 Treasurer’s Exp 5,430 5,262 Reduce $168 to bring to level funding
146 Town Coll Exp 29,821 26,463 Reduce $1,646 to bring to level funding
155 Computer Exp 5,425 5,425 Leave as is, prev recom was to reduce
163 Elect & Reg Salaries 7,320 6,220 Can reduce by 1,100 per N. Morrell
163 Elect & Reg Exp 10,600 8,700 Can reduce by 1,900 per N. Morrell
171 Conservation Comm 6,513 4,125 Decrease to bring to level funding
192 Municipal Build Exp 55,556 59,201 Increase fuel by 10%
200 PD Salaries 719,998 714,098 Decrease $5,900 SRO grant for Jul & Aug
210 PD Exp 61,000 57,600 Decrease to bring to level funding
221 Fire House Oper 18,050 18,770 Increase fuel by 10%
226 Ambulance Salaries 204,257 211,206 Increase so as to not impact services
241 Building Insp Salaries 85,750 84,750 Reduce 1,000 for Asst Inspector
292 ACO Expense 3,150 3,540 Increase fuel by 10%
421 Hwy Administration 17,125 17,280 Reduce $975, inc fuel by 10% plus $600**
422 Gen Hwy & Bridges 176,040 174,000 Decrease to bring to level funding
424 Street Lighting 19,600 20,000 Increase fuel by 10%
491 Cemetery Dept Exp 7,420 7,368 Dec $964 to level fund; Inc fuel 10%
541 Council On Aging Exp 11,176 9,653 Decrease to bring to level funding
610 Library 249,582 252,538 Inc so as to not jeopardize certification*
630 Park & Rec Exp 38,581 35,915 Decrease to bring to level funding
810 Veterans’ District 16,547 18,341 To adjust to new district budget
915 FICA, Town Share 142,380 130,000 Reduce per Deb Mahar
* FinCom previously OK’d the additional funds needed by the Library to keep their certification. The vote taken to level fund the library resulted in all votes except for Mr. Fimognari – yes and Ms. O’Sullivan – abstain. The motion does not pass.
The vote taken to increase funding to $252,538 resulted in all YES votes except for Mr. Fimognari and Ms. O’Sullivan. The motion carries.
Ms. Bodwell explained the Schools use the Library, as the Schools are not spending a great deal on their libraries. Ms. Bodwell related the following amounts spent on books, magazines and supplies:
QH - $2,500; GV - $2,200; HS - $8,400.
**At the end of the meeting, Ms. Mahar explained the Highway Admin. Account is historically underfunded. Mr. Goodrich motioned to adjust Highway Administration line 421 to $17,280, a $600 increase. Mr. Ross seconded it, and it was SO VOTED unanimously.
The above recommendations require $434,465 of Free Cash to be spent, which is $45,535 below the voted-upon FY06 Free Cash number of $480,000.
Ms. Neggers related Mr. Jalbert is planning to transfer a large amount of money at the STM to reduce the need for borrowing for work to Hospital Road.
Mr. Carlin related the following are outstanding questions:
The additional funds needed for mailing by the Town Collector
Highway Administration is underfunded and may need additional money for electricity and heat (this was later addressed – see above **).
Council on Aging expenses
Fire Truck operating expenses
Mr. Carlin added FinCom may need to re-visit the Town Collector expenses account and add additional funds. Ms. Neggers responded that she can’t rationalize that decision. She has cut her FY06 budget by 20% - all meeting and seminars have been cut. She added that FinCom seems to be adding to departments that speak the loudest. Ms. Jenkins said she will strike all conferences and meetings and reduce her budget by $750.
The committee discussed the options of cutting Hazardous Waste removal and Downtown Roads line item entirely. Mr. Pennington said FinCom has a budget that is within the constraints of the proposed $480,000 Free Cash voted upon, and questioned if it is necessary to go further.
Mr. Carlin stated FinCom should not anticipate departmental needs. FinCom has a budget it can go forward with, and adjustments can be made at the fall STM if needed. Mr. Goodrich disagreed. He and Ms. Mahar felt the committee should not proceed with the thought that the STM is a part of the process of developing the town’s budget. Mr. Goodrich added he would like to present a proposed budget to department heads and give them the option to come back to FinCom with discussion.
Mr. Morrell stated he doesn’t feel it’s fair that FinCom has issued no formal statement on their proposed FY06 budget. Department Heads deserve the time to absorb proposed budgets.
Hazardous Waste and Downtown Streets Line Items: Mr. Goodrich stated these are two line items that can be zeroed out. He motioned to zero the Downtown Street line item 420. It was seconded. Mr. Fimognari related that the Highway department took the biggest hit when the economy took a downturn, and was promised it would be the first to be revisited when possible. Highway uses those funds, and Mr. Morrell did not want to lose that line item. Mr. Goodrich stated that if that line item was in the School budget, FinCom would move to zero it. The vote was Yes –3 and NO – 5. The motion does not carry.
Mr. Goodrich motioned to zero the Hazardous Waste line 439. It was seconded. Mr. Pennington stated the town relies on well and the funds are an investment in the future of the town’s water supply. Ms. Mahar stated the last collection was Sept. 2003, and the next one planned is June 2005, so it is done approximately once every year and a half. The vote was Yes – 4 and NO –4. The motion does not carry.
Mr. Harrison asked if FinCom plans to meet another day. After discussion, it was decided FinCom will meet Tuesday, April 19, at 6:30. FinCom will invite Department Heads to the April 25 meeting, which will be held in the Selectmen’s room. Ms. Lee will send a memo to Department Heads immediately.
Ms. Mahar stated it might make sense, if fuel prices are lower now, to fill tanks before the end of the fiscal year.
April 19 agenda: FinCom will review the Utility Reserve Fund expenditures and discuss how to close out the account. FinCom will also discuss the Special Education shortfall.
The next scheduled meeting of the Finance Committee is April 19, 2005 at 6:30 p.m. at the Town Accountant’s Office.
The meeting was adjourned at 9:40 p.m.
Respectfully submitted,
Ann M. Lee, Administrative Assistant to the Finance Committee
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