Present: Chris Carlin, Paul Desmond, Christine Edwards, Peter Fimognari, John Goodrich, Bob Margerison, Maureen O’Sullivan, Jim Pennington, Peter Ross, Ann Lee (FinCom Admin. Asst.)
Also Present: Deb Mahar (Town Accountant), Ed Harrison, Dorothy Jenkins (Town Collector), Karen Patenaude, Donna Hall-Adams, Hope Bodwell
Absent: Richard Crane
The meeting was convened at 6:30 p.m.
A motion was made, seconded, and SO VOTED to accept the minutes of the 3/21/05 meeting, as written.
CORRESPONDENCE
A memo dated March 24, 2005, was received from Gretchen Neggers, Town Administrator. The Board of Selectmen request to be placed on the FinCom Agenda for the March 28 meeting, to “review the funding requirements for the fiscal 2005 police budget.” Ms. Lee will send Ms. Neggers an e-mail confirming a 7:00 P.M. meeting time.
A memo dated March 22, 2005 was received from Chief Curtis McKenzie. It details the proposed FY05 police budget and the FY05 police expenditure ledger.
OLD BUSINESS / NEW BUSINESS
Copies of Pathfinder’s Proposed FY06 Budget Distributed: Pathfinder’s budget had been discussed at the least meeting, so there were no questions. Ms. Lee explained she was waiting for a reply to the e-mail she sent to Superintendent Paist.
Fiscal Year 2005 Utilities Budget: Ms Mahar presented a spreadsheet that captured utility expenditures as of 3/25/05. She stressed it was a snapshot of bills paid as of this date; for example, the Administration building had three deliveries after this date.
Ms. O’Sullivan questioned if the School keeps excess funds if it does not spend its full budgeted fuel amount. Ms. Mahar said yes. Mr. Fimognari asked if using Hillside is efficient. Ms. Hall-Adams explained the building is being fully used, and may be needed at some point for students. Mr. Carlin asked Mr. Goodrich to find out the School’s fuel line items budgets were in FY05. Mr. Goodrich related that at the last Info Share meeting, the School did not seem concerned it was running an energy budget deficit. Mr. Goodrich said he warned the School not to rely on Utility Reserve funds, as there were no amounts set for individual departments. Mr. Carlin agreed that it is not FinCom’s place to earmark any portion of the Utility Reserve funds. He added the
Utility Reserve fund is not in place to allow departments to short-budget accounts. Ms. O’Sullivan noted she hoped the School would move Electric overages to other fuel shortages before looking to the Reserve Fund, and asked Mr. Goodrich to verify that. Mr. Fimognari questioned if the School short-budgeted in anticipation of the Utility Reserve Fund. Ms. Mahar responded it is not fair to say that, as the Reserve Fund was not established until the Fall, and the budget was done the previous May. Mr. Carlin raised the concern over the Central Office Fuel line item budgeted for $10,000 in FY 06, when $13,000 was expended the year before. He stated it was not a prudent line item decision, and asked Mr. Goodrich to ask for validation in a public forum at the next School Committee meeting.
Mr. Goodrich mentioned that when the Utility Reserve Fund was created, some departments could have interpreted it as a sum of money the town committed to spend. He believes the best thing to do is to get rid of the Reserve Fund, by using a portion of it to adjust the FY06 fuel line items. He added that when departments ask “what happens next year with energy line items?” he needs to have an answer. Ms. O’Sullivan suggested looking at departmental fuel expenditures over the summer, and making line item adjustments at the Special Town Meeting. Mr. Ross said it should be done now. Mr. Goodrich suggested that adjustments can be made because Mass Electric rates are known. He asked Ms. Mahar if she could look at paid bills, determine the price per gallon for oil and
gas and the electric rate, and calculate the percentage increase form last year to this year.
Mr. Fimognari brought the conversation back to the school. He believes NSS should be the budget number for FY06, and that should include fuel usage, as any additional funds would be above the NSS number. Mr. Ross agreed, adding the School had wanted $60,000 at the last STM for fuel. The committee discussed last year’s request from the School department. Ms. Mahar explained the Utility Reserve Fund was instituted so money would spent accurately.
Mr. Carlin questioned what FinCom implements to address fuel volatility in FY06; to either maintain the Utility Reserve Fund, or disburse the funds into departments and let them manage their own budgets. He also questioned which minutes, if any, captured the intended $60,00 fuel budget increase request from the School.
Mr. Goodrich indicated he thought the School’s request was done at the Special Town Meeting, that the School indicated it would request $65,000 and the rest of the town departments indicated they would request $35,000, and the Utility Reserve Fund was created to address those needs. No specific funds were earmarked for any department.
Mr. Pennington asked if fuel costs are included when NSS is calculated by the state. Ms. Mahar answered the number is based on a foundation budget with a per pupil expenditure. Mr. Pennington feels FinCom has two choices: use the budgets submitted by departments and develop a fund with strict regulations for use, or increase fuel line items, knowing that in some instances the funds could be better used by other departments. He added the Schools are “doing just fine” with NSS. He asked if we should spend money because we have it, or to force departments to conserve energy. He believes FinCom should err on the side of caution, adding he is uncomfortable with adding money to budgets.
Mr. Goodrich stated that as there are significant increases expected for energy costs in FY06, maybe FinCom should establish a small Utility Reserve Fund, possibly $20,000, and adjust departments’ energy line items and let them handle their budgets. He added he wants FinCom to make a decision tonight, as he will be reviewing the School budget in open session at Wednesday night’s School Committee meeting. Mr. Fimognari stated that as NSS increased for FY06, the School should absorb all energy increases. Mr. Margerison added that based on Ms. Mahar’s spreadsheet, it appears the School spent approximately $42,000 on fuel each month, and should end with a surplus.
Mr. Harrison explained to the committee that Ms. Neggers locked in electric rates for four years, beginning this month. That should help to keep electricity costs stable. He asked about oil. Ms. Mahar answered the School is part of a collaborative to purchase oil. However, suppliers have been reluctant to lock in rates for the town.
Mr. Margerison motioned that Net School Spending for FY06 will cover all increases with regard to electricity, fuel and gas. Mr. Pennington seconded the motion. Mr. Goodrich noted the School’s spreadsheet projects an energy cost shortfall as of 2/28/05 of approximately $62,000. Ms. Mahar added that the FY06 School budget includes five layoffs, and accepting this motion may force additional layoffs.
Mr. Carlin abstain Mr. Goodrich abstain
Mr. Margerison yes Ms. Edwards abstain
Mr. Desmond abstain Mr. Fimognari abstain
Mr. Ross yes Ms. O’Sullivan yes
Mr. Pennington yes
The motion carries.
Ms. O’Sullivan asked Mr. Goodrich to find out if the School will move money from energy accounts that have extra funds to accounts that are short. Ms. Mahar said that wouldn’t happen until June. Ms. O’Sullivan asked if the School could request Utility Reserve Funds before June to cover shortages. Ms. Mahar explained departments can move funds between line items within expense accounts. Mr. Goodrich motioned FinCom send a letter stating it expects honest line item adjustments before requesting money from the Reserve Fund. It was not seconded. Mr. Goodrich confirmed he is to ask the School department how they expect a shortage when energy budgets were increased 13% from FY04 to FY05. He stated he will explain the expectation that all departments will exhaust all
energy line items before looking to the Reserve Fund.
Ms. Hall-Adams told the committee said she understands FinCom wants a realistic fuel budget. She added that fuel costs in the School budget are level funded for FY06, and as the School is presenting its budget Wednesday, there is a time issue. Mr. Goodrich answered that looking at Ms. Mahar’s Utilities spread sheet, he is not seeing a $62,000 shortfall. Mr. Carlin asked if the School budget is level funded with the expectation of the Utility Reserve Fund. Ms. Hall-Adams she is not sure if the School set the budget anticipating the Reserve Fund. Mr. Margerison asked if there were overages or shortages in last fiscal year’s fuel budget. Ms. Hall-Adams did not know.
Mr. Goodrich reiterated his message to the School department for Wednesday’s meeting: FinCom’s intent is that no money is to be requested from the Utility Reserve Fund until all dollars are expended from all fuel budgets, and FinCom passed a motion to present at the Town Meeting that NSS will include all energy costs for FY06.
Council On Aging Supplemental Budget Request: Judith White, Executive Director, Elizabeth Faichney, Health and Human Services Coordinator, and Geraldine DePace, Chairman COA Board, met with FinCom. Ms. White passed out a Supplemental Budget Request and the 2004 Annual Report (see attached). The Supplemental Budget asks for a 2 ½% salary increase for five non-union employees, and the replenishment of the van driver’s over-time line and the part-time van drivers line, at a total cost of $3,281.
Ms. White stressed that COA has honored level funding for the past two fiscal years, and has funded salary increases through the two accounts mentioned. This has resulted in cuts in transportation services. Ms. White explained that two non-union employees are paid far less than the area average of $14.40. Of COA’s thirteen employees, two are full time and eleven are part-time. Six are town funded, four are grant funded, and three are a combination. COA has never capital funding through the town, and Monson does not pay any facility costs because the building is privately owned. The requested increase is broken into:
Salary increase for five employees $1,213
Drivers’ over-time account increase $1,154
Part time drivers account increase $ 914
$3,281
Mr. Fimognari stated that he agrees the COA does an excellent job. He added the only way to control costs is to make every dollar count, and although the request is minimal, he can not justify adding the time and position. Ms. White responded the request is not to add a position, only two hours per week additional drivers time. She mentioned the COA looks for funding elsewhere before coming to the town, and added workers are grossly underpaid. Mr. Ross reiterated it is difficult to support additions when they are coming from money Monson does not have. Ms. White mentioned that past FinCom minutes state the committee expressed a desire to help departments that in the past done their best. Mr. Fimognari stated it is not correct to add to COA when cutting from others. Mr. Goodrich
explained FinCom is looking at reductions, and prioritizing, when the time comes, where to give increases; this is not the time. Mr. Ross added that FinCom is removing money from several departments, and asked Ms. White not to feel singled out. Ms. White thanked FinCom for their time and asked them to “please all reconsider – Thank You.”
Goals for April 4 Meeting: Mr. Carlin stated the BOS will be at the April 4 meeting. We will get a recap from Mr. Goodrich of the March 30 School Department Info Share meeting.
Mr. Ross stated he e-mailed Ms. Neggers requesting an update on the SRO position. Her response stated that FinCom needs to recommend to BOS that Monson apply for a waiver. Mr. Goodrich questioned if BOS are aware FinCom is looking at ways to reduce the budget. Ms. Mahar clarified the SRO is in the School department budget.
FY06 Budget by Line: The agreement is that the $130,000 Reserve Fund should be reduced to its traditional $30,000, with a percentage of the remaining $100,000 used to increase fuel line items. Mr. Fimognari calculated that all departments, excluding the School, account for approximately $75,000 total fuel costs. As 10% of $75,000 is $7,500 that leaves $92,500 to put back into the budget. He asked if everyone is comfortable with using a 10% increase in fuel line items. Mr. Goodrich stated he agrees with it for electricity, but not for oil or gas.
The committee’s preliminary recommendations for change, line by line from requested budgets for FY06:
Line 131 Reserve Fund reduce $100,000
Line 144 Land Court approve $2,000 increase new tax title attorney
Line 144 Bank Fees reduce $1,000
Line 146 Town Collector Exp approve $1,646 increase needed for postage
Line 155 Computer Exp reduce $2,425 computer purchase
Line 171 Conservation Comm reduce $2,388 $1,888 legal ads, $500 cons land maint
Line 192 Municipal Building Exp increase $4,000 fuel cost adjustment
Line 200 PD Salaries decrease $42,000
Line 210 PD Exp decrease $3,400 $2,500 cruiser maint
Line 221 Fire House Oper increase $720 fuel cost adjustment
Line 241 Build Insp Salaries decrease $1,000 part time inspector
Line 241 Site Clean Up decrease $2,000
Line 292 ACO Exp increase $90 fuel cost adjustment
Line 294 Tree Warden Salaries decrease $150
Line 399 Pathfinder Capital decrease $57,434 capital request FY06
Line 421 Hwy. Admin increase $530 fuel line adjustment
Line 422 Gen Hwy and Bridges decrease $2,040
Line 424 Street Lighting increase $400 fuel line adjustment
Line 491 Cemetery Dept Exp increase $100 fuel line adjustment
Line 610 Library increase $2,656 to meet MAR requirement
Line 630 Park & Rec Exp increase $50 fuel line adjustment
Mr. Ross will find out if Assessor’s expenses will be less next FY, for if they receive new software, support should be included for the first year.
Mr. Ross asked Ms. Jenkins what happens if the Collector Expense is not increased. Ms. Jenkins replied it is needed for postage, and if the budget falls short, she will have to ask for additional money from the Reserve Fund at the end of the next FY to cover any shortage. DOR says every bill should be mailed separately. Water and Sewer Department pays for their own postage.
Computer expense is a cyclical account used to replace computers on an ongoing basis. The decrease translates into the loss of a purchase of one computer.
The committee discussed that it is not in their scope to tell departments how to staff, as in the case of the SRO position. FinCom members agree it is not their place to do so, and reiterated the decrease is in salaries, not aimed at one position.
Mr. Margerison related he was asked by the individual who performs the duties to increase Line 244, Sealer of Weights, to increase the line by $35 in order to purchase new weights. The committee decided No.
Tree Warden salaries requested increase is a question. FinCom will ask the BOS if they are aware of the requested increase.
FinCom is not comfortable committing to Pathfinder’s five year capital plan. Mr. Pennington noted the plan does not prioritize needs within each year. Ms. O’Sullivan and Mr. Fimognari explained Pathfinder reserved the possibility of adding the capital request to the assessment, so no town can say no. A motion was made to recommend Pathfinder’s capital request be funded at $0.
Mr. Carlin yes Mr. Goodrich yes
Mr. Margerison abstain Ms. Edwards abstain
Mr. Desmond abstain Mr. Fimognari yes
Mr. Ross yes Ms. O’Sullivan no
Mr. Pennington yes
The motion carries.
Ms. Bodwell explained that if the Library is not funded to meet MAR standards, it can apply for a waiver. If it receives the waiver it could get state aid of $12,944. If it can not get the waiver, it could lose State Aid, lose the ability to apply for grants, and lose system-wide hold ability. Forty-four libraries received waivers in FY05. A waiver is applied for in October but the decision is not made until January. Mr. Pennington motioned to increase Library budget by $2,656.
Mr. Carlin yes Mr. Goodrich yes
Mr. Margerison yes Ms. Edwards yes
Mr. Desmond yes Mr. Fimognari no
Mr. Ross yes Ms. O’Sullivan abstain
Mr. Pennington yes
The motion carries.
The next scheduled meeting of the Finance Committee is April 4, 2005 at 6:30 p.m. at the Town Accountant’s Office.
The meeting was adjourned at 10:30 p.m.
Respectfully submitted,
Ann M. Lee
Administrative Assistant to the Finance Committee
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