Present: Chris Carlin, Richard Crane, Paul Desmond, Peter Fimognari, Michael Laferriere, Bob Margerison, Maureen O’Sullivan, Peter Ross, Ann Lee (FinCom Admin. Asst.)
Also Present: Gretchen Neggers (Town Administrator), Ed Harrison, Nicole Soucy (Journal reporter)
Absent: Christine Edwards, John Goodrich, Jim Pennington,
The meeting was convened at 6:30 p.m.
A motion was made, seconded, and SO VOTED to accept the minutes of the 1/24/05 meeting as written.
CORRESPONDENCE
A letter from Group Benefit Strategies was received. A seminar is available February 18, 2005 to learn about the new GASB 45 accounting procedures. The letter is on file.
OLD BUSINESS / NEW BUSINESS
House 1 Discussion: Ms. Neggers presented the budget figures released January 26. She explained that while the figures are still in a state of flux, she doesn’t feel they will change greatly.
Preliminary Budget Overview
Revenue
Tax Levy 190,451
Estimated new growth 120,000
Chapter 70 366,310
New lottery 197,291
New lottery used at STM (136,987)
Estimated MV -------
Total 737,065 737,065
Expense
NSS Increase 671,007 (671,007)
Town Side ( 277,200) pension, health ins.
School Resource Officer ( 20,000)
Total NSS Portion 373,807 66,058 available revenue for all
Non-NSS spending
Health Insurance 207,100
Pensions 118,065
Sub-total 325,165
Less School’s portion ( 230,546)
Town’s increase of 94,619 94,619 can not be met w/ avail funds
insurance & pension
That NSS of 671,007 does not include Pathfinder’s portion was noted. Aid figures to determine NSS are calculated as of October figures of enrollment.
Mr. Carlin asked Ms. Neggers if she anticipates any changes when the budget goes to the House. She said the Legislature may object to the tax rate decrease to 5%, but any additional monies to result from this will probably go to Health and Human Services. She added that we might see approximately $30,000 to $40,000 additional revenue from Motor Vehicle tax, but that number can not yet be estimated.
Mr. Ross presented the following scenario: we use half of our available free cash for FY 06, and half for FY 07, and then what? Ms. Neggers responded that we then hope for the ability to generate additional funds. An example is rollback taxes. She added that comments have been made that there may exist the need for an override. The Selectmen have not mentioned this, though. Mr. Ross continued that an override will hold the town for only a few years, but would not work to fund an ongoing problem. Ms. Neggers responded that the School Committee and Selectmen are striving to better deal with health care costs. Mr. Carlin asked how they are doing this, but Ms. Neggers can not comment because of ongoing collective bargaining. Also, the state is becoming more stable in its
commitment to local government.
Mr. Ross gave the ambulance service as an example as something that may be paid for by an override. Ms. Neggers explained that the ambulance was a non-general-fund revenue source paying for itself, and is now unable to do so. The ambulance expense has never been built into the town’s budget. Now, it may be time to give that choice to the people to decide: do you want to start paying for it? Ms. O’Sullivan said townspeople should decide the need for a service, especially if the service funds only a portion of the town.
Mr. Harrison asked about Medicaid reimbursement. Ms. Neggers said the town changed, last year, to billing outsource provider Lower Pioneer Valley Collaborative. Last year, Monson collected $10,000, and YTD $0. Monson is reimbursed for services provided by the School Department. School Superintendent Woodbury had said to expect approximately $50,000 Medicaid reimbursement this year. The problem seems to be in the compilation of data. Ms. Mahar has an account set up to track Medicaid reimbursement monies anticipated and received, but has no control over what documentation is submitted for billing. Mr. Ross asked if the General Fund keeps the money, and does it have any impact on the school’s budget. Mr. Harris asked if billing is retroactive. Ms. O’Sullivan
feels this is an issue that should be taken up with the School Committee. Ms. Neggers explained that the LPVC contract allowed them to keep a higher percentage of collected monies the first year, and wondered if they are not pursuing reimbursement as vigorously now that the percentage is lower.
Mr. Carlin asked who oversees the LPVC agreement. Ms. Neggers answered it is she, Ms. Mahar and Selectman Norbut. Mr. Carlin wondered if the School is not pursuing reimbursement because they are not able to add it to their budget. He added it is an issue to take up with the School Committee: all monies due Monson should be collected. Mr. Ross offered the idea that the town can’t afford to go higher than NSS if there is no additional funds available. Ms. Neggers commented that the School Budget is over NSS without the transportation budget figured in.
Ms. Neggers returned the conversation to the School Resource Officer position. She added that, philosophically, the town should be asked if they want to fund the SRO. Mr. Carlin asked how many towns, similar to Monson, have a SRO. Ms. Neggers explained that most like areas have regional school systems with no SRO, because there is no one “town” involved. Belchertown and Palmer each have a SRO, and the schools pay half the salary. Ms. O’Sullivan questioned that with a principal and vice-principal in each school, and the positive relationship of each with the police department, is a SRO needed. Mr. Carlin added that FinCom might need to stand true to its earlier precedent set with the Senior Center. Ms. Neggers added that the question “When someone else is
paying for a service and the funding ends, does the town automatically absorb the cost?” should be asked.
Mr. Margerison noted that there are a great many unknowns and possibilities. A new police chief may come in at a lower step rate than the existing one. Ms. Neggers added there is an officer retiring. Mr. Margerison continued the new hires, at the lower step pay rate, may be a salary savings.
Mr. Carlin asked about the Selectmen’s position on funding the ambulance. Ms. Neggers answered they endorse the ambulance and two EMT’s.
Mr. Fimognari asked if the Block Grant could cause problems. Ms. Neggers answered the grant can not be used to pay recurring salaries.
Mr. Ross asked when Quarry Hill School is paid. Ms. Neggers said 2014. She added that next year Monson is returning $770,000 to taxpayers in the form of a lower tax rate. Mr. Fimognari asked if it can be put to vote to keep that money by keeping the tax rate stable. Ms. Neggers said it is not possible; DOR would not allow Monson to give back the money over time – it had to be returned to taxpayers in a lump sum. Monson saved over $1.3 million by structuring its debt this certain way.
Mr. Carlin recapped that FinCom discussed House 1 tonight while Mr. Goodrich attended the Info Share meeting. He asked all members to check the MA.gov websites over the next week for updated information. Next week the committee will discuss the School Department’s budget. Times to meet with individual departments to discuss their budgets will be decided.
The next scheduled meeting of the Finance Committee is February 7, 2005 at 6:30 p.m. at the Town Accountant’s Office.
The meeting was adjourned at 7:30 p.m.
Respectfully submitted,
Ann M. Lee
Administrative Assistant to the Finance Committee
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