Present: Chris Carlin, Tina Augustin, Christine Edwards, Peter Fimognari, John Goodrich, Bob Margerison, Maureen O’Sullivan, Jim Pennington, Ann Lee (FinCom Admin. Asst.)
Also Present: Gretchen Neggers (Town Administrator), Deb Mahar (Town Accountant), Ed Harrison (Selectman), Dorothy Jenkins (Town Collector), John Morrell (Highway Surveyor), Karen Patenaude (School Committee)
Absent: Paul Desmond, Pete Ross
The meeting was convened at 6:35 p.m.
A motion was made, seconded, and SO VOTED to postpone acceptance of the minutes of the 4/11/05 meeting until the 4-25-05 meeting.
CORRESPONDENCE
A copy of a memo from Marshall Harris, Fire Chief, dated April 11, 2005, was received. Chief Harris outlined the articles he would like placed on the warrant for the upcoming Town Meeting. Ms. Mahar explained STM articles are closed; ATM articles will close 5-2-05. Mr. Margerison asked if one of Chief Harris’ requested transfer of funds was to cover a salary increase. The committee explained the salary increase referred to is for another Fiscal Year.
A copy of a memo from Board of Water and Sewer Commissioners, dated April 11, 2005, was received. It outlined the articles the Board would like placed on the warrant for the upcoming Town Meeting.
A revised FY06 budget was received from Dorothy Jenkins, Town Collector. All members received a copy.
A copy of the Highway Department Energy Conservation Plan, dated April 19, 2005, was received from John Morrell, Highway Surveyor.
An e-mail, dated 4-18-05, was received from Kathleen Norbut, Selectman. She invited FinCom to meet with the BOS at their 4-26-05 meeting. Mr. Goodrich related he appreciates the invitation, but does not see what could be accomplished at t his late date in the budget process. Mr. Carlin noted a reporter from “The Journal” has been present at several FinCom meetings, and many department heads have consistently attended meetings. Mr. Goodrich motioned FinCom decline the invitation, and send a letter expressing their thanks and their interest in attending a BOS meeting earlier in the budget process next year. Mr. Pennington seconded the motion. Ms. O’Sullivan and Mr. Margerison abstained from voting. It was SO VOTED. Ms. Lee
will send a letter of thanks.
A Thank You booklet to town officials was received from Quarry Hill Community School class 421.
The April 2005 “Beacon” was received. It is on file.
The Monson Public School Proposed FY06 Budget was received.
OLD BUSINESS / NEW BUSINESS
Highway Department Snow & Ice Removal: The Snow & Ice removal account needs additional funds. Ms. Mahar explained she has a bill to be paid. Monson expects to receive $32,000 from FEMA before July 1, 2005, but it is not known exactly when. Mr. Fimognari motioned to allow the Highway Department to deficit spend for $5,000, the motion was seconded, and SO APPROVED. It was signed by all members present.
Mr. Carlin Stepping Down as Chairman of Finance Committee: Mr. Carlin will step down at the end of FY05. He charged the committee with determining the direction it will take, and invited members to begin planning for a new Chairman. He will be out of town for the next two meetings, so Mr. Fimognari will chair the meetings.
Utility Reserve Fund Discussion: There had been discussion concerning the benefit of having departments purchase oil now, using money from the Utility Reserve Fund. Mr. Carlin expressed his concern that the intent of the Utility Reserve Fund was to cover unforeseen spikes in energy costs for FY05. It was not voted upon with the intention to be used to “hedge”, to purchase oil now at a low price in anticipation of future oil price increases. The spirit of the URF was such that any leftover funds were to be returned to Free Cash. Mr. Fimognari questioned if FY06 departmental budgets will be decreased if the URF is used to purchase fuel now. He also felt that as FinCom is unable to lower NSS for FY06, the committee can not, in effect, increase NSS this year by allowing the
School to utilize the URF to purchase oil now. Mr. Goodrich agreed the townspeople did not vote to pre-buy oil with any leftover money, and questioned the appropriateness of doing so. He noted that the town voted to spend a certain amount, and suggested we use any leftover funds to pay bills we have now, such as the School Special Education overrun of $90,000. He added that even if the School were to utilize some of the URF now to save money in the future, the saved portion would still get spent, as NSS can not be reduced. Mr. Goodrich added that as the articles for the STM have closed, it would not be possible to give all departments the ability to “top off tanks” with URF money. Ms. O’Sullivan expressed concern that to fill tanks with URF money would skew budgets. Mr. Pennington stated that to do so would be setting a dangerous precedence, and agreed it would skew the budget. He felt that any leftover URF funds should be
rolled into Free Cash, and then, if needed, would be available.
Ms. Mahar explained that, after reviewing departmental delivery patterns for 2002, 2003, and 2004, for all buildings for oil, gas and electric, it appears there will be a shortfall of approximately $22,000, including the Schools. To date, $5,000 of the URF has been used. Mr. Pennington motioned to use the Utility Reserve Fund to pay FY05 bills only. Ms. O’Sullivan added the balance should be returned to Free Cash. Mr. Margerison expressed concern that worded that way, it gives departments the opportunity to fill tanks at the end of the season. Mr. Carlin asked if the minutes capture the fact that Ms. Woodbury stated that, historically, the Schools enter the heating season with near-empty tanks. It is captured that Ms. Woodbury stated the Schools ended last Fiscal Year with
near-empty tanks. Mr. Goodrich stated that in that case, there is no motion needed. Ms. Mahar asked that the minutes reflect that FinCom is not directing departments to “top off” tanks”, but is expecting departments to follow historical buying patterns. Mr. Carlin stressed that departments should maintain past practices.
Special Education Shortfall: Mr. Fimognari stated that FinCom has been instructed several times by the School that it retains the ability to move money within its budget. As the School gave raises, and now has a shortfall, it should explain its actions on the town floor. Mr. Goodrich agreed, and added that he felt the School was aware of the significant budget shortage in February and should have notified FinCom then. Ms. Neggers reminded FinCom that it had several warrant articles to review in addition to this one. The committee decided to do so and shelve this conversation.
Special Town Warrant Articles: The articles are attached. FinCom decisions are as follows:
Article 1: Mr. Pennington motioned to transfer $755, it was seconded and SO VOTED.
Article 2: Mr. Goodrich motioned to transfer $3,200, it was seconded and SO VOTED.
Article 3: Mr. Fimognari voted to transfer $10, it was seconded and SO VOTED.
Article 4: Mr. Goodrich motioned to transfer $2,500, it was seconded and SO VOTED.
Article 5: the dollar amount is not yet known.
Article 6: Mr. Fimognari motioned to transfer $1,000, it was seconded and SO VOTED.
Article 7: the dollar amount is not yet known.
Article 8: Mr. Goodrich motioned to transfer $2,000, it was seconded and SO VOTED.
Article 9: Mr. Goodrich motioned to transfer $2,000, it was seconded and SO VOTED.
Article 10: Mr. Goodrich motioned to transfer $500 from FICA Town Share, it was seconded and SO VOTED.
Article 11: Mr. Goodrich motioned to transfer $50,000 from Principle on Capital Improvement and $5,000 from Interest on Capital Improvement, it was seconded and SO VOTED.
Article 12: Mr. Goodrich motioned to transfer $15,800, it was seconded and SO VOTED.
Article 13: The Purchase of Petroleum Products Account pays for gasoline and diesel. Mr. Goodrich motioned to transfer $9,500 from FICA Town Share, it was seconded and SO VOTED.
Article 14: Ms. Edwards motioned FinCom pass over Article 14. Mr. Margerison seconded.
Mr. Carlin – abstain Mr. Goodrich - abstain
Mr. Margerison – yes Ms. Augustin - yes
Ms. Edwards – yes Mr. Fimognari – abstain
Mr. Pennington – yes Ms. O’Sullivan – yes
The motion carries.
Articles 15, 16, 17 and 18 – the language for these article is pending.
FY06 Budget Discussion: Ms. Mahar believes it makes sense to purchase oil now and fill tanks. Mr. Carlin disagreed, stating it is not a good business decision to spend money on speculation. Mr. Goodrich asked where the $90,000 could be found. Ms. Mahar answered there is $41,000 available in the Pathfinder account, and approximately $70,000 in the Utility Reserve Fund. Mr. Margerison asked when the Schools traditionally filled oil tanks. Ms. Mahar answered:
2003 December @ .75 gallon
2004 September @ .88 gallon
Mr. Goodrich asked Ms. Mahar if there has been any feedback from department heads on the FY06 budget. She answered that some departments will not be able to level fund, and will fall short mostly in expense accounts. Ms. Jenkins asked if FinCom expects “complaints or acceptance” at the 4-25-05 meeting with department heads. Mr. Carlin stated it is any department head’s prerogative to question FinCom, but asks that everyone remember that what FinCom goes to the town floor with is based on discussions of Free Cash, revenues and expenditures. Ms. Jenkins stressed she does not wish FinCom’s decision to pass over Article 14 to dominate the meeting. Mr. Goodrich felt it shouldn’t become part of a meeting set to discuss departmental budgets.
The next scheduled meeting of the Finance Committee is April 25, 2005 at 6:30 p.m. at the Selectmen’s Office.
The meeting was adjourned at 8:05 p.m.
Respectfully submitted,
Ann M. Lee, Administrative Assistant to the Finance Committee
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