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Present: Tina Augustin, Paul Desmond, Christine Edwards, Peter Fimognari, John Goodrich, Bob Margerison, Maureen O’Sullivan, Pete Ross, Ann Lee (FinCom Admin. Asst.)
Also Present: Gretchen Neggers (Town Administrator), Deb Mahar (Town Accountant), Judith Dion (Director, Special Ed), Ed Harrison (Selectman), Chief Marty Harris (Fire Dept.), Donna Hall-Adams (School Committee), Mark Hebert (School Committee), Craig Jalbert (Water and Sewer), Dorothy Jenkins (Town Collector), John Morrell (Highway Surveyor), Kathleen Norbut (Selectman), Karen Patenaude (School Committee), Kelli Robbins (Assessor), David Royce (Elected Assessor), Betty Sloope (Town Treasurer), Nicole Soucy (“Journal” Reporter), Laurie Stabile (“Republican” reporter), Daniel Tassinari (Business Director, School), Judy White (Director, COA), Tim Pascale, (Director, Park & Rec),
Absent: Chris Carlin, 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 4/11/05 meeting.
A Motion was made, seconded, and SO VOTED to accept the minutes of the 4-19-05 meeting.
CORRESPONDENCE
A copy of a letter to Betty Sloope, Town Treasurer, from Pathfinder Regional Vocational-Technical High School, dated April 19, 2005, was received. Monson’s share of the 2005-2006 budget totals $791,724. Capital Improvement of $20,367 was added into the budget. This increases Monson’s FY06 budget bottom line by $20,367.
OLD BUSINESS / NEW BUSINESS
Discussion of Fiscal Year 2006 Budget: Mr. Fimognari opened the meeting by thanking everyone for coming. He explained that this budget is complex, and difficult because of the amount of money available. The Finance Committee planned to use Free Cash to balance the budget, for a four to five year cycle. For FY06, approximately $454,000 of Free Cash and approximately $412,000 of Stabilization Fund needs to be used. That amount of Free Cash is well over half of the available Free Cash. He stated that attendees would have two minutes to address FinCom.
Council on Aging: Ms. White told FinCom she understands moving money from Expense accounts to Salary accounts to balance the budget, but that move cut the Council on Aging expense lines by 14%, impacting all operations. She stated she could not operate her department on the reduced budget. Mr. Fimognari realized level funding would be pretty close to impossible for some departments, but stressed the budgets are not completely finalized. He added there is room for compromise. Mr. Margerison noted that level funding maintains current personnel; additional funding will mean personnel losses. He mentioned that department heads took pay freezes. Ms. White explained that $1,500 is not a lot of money, and mentioned that some departments got increases. She added that she did not
add her step raise in to the COA budget. Mr. Harrison said he thought all step raises were funded. Ms. Mahar explained that she added Ms. White’s step raise into the budget, funding it by decreasing expense, even though Ms. White did not factor it into the budget. Ms. White added that she will probably give the raise to her employees. Mr. Harrison spoke in defense of the COA; stating senior programs are vital to the community and stressing the need to restore the $1,500. Mr. Fimognari explained FinCom is looking at the “big picture”, and increases this year mean big cuts next year. Mr. Harrison stated there are other places cuts can be made, the Hazardous Waste Day being a possibility. Chief Harris warned the town doesn’t want that waste “dumped on the side of the road.” Mr. Goodrich explained FinCom looked at the history and realized Hazardous Waste Day had been run on an 18-month cycle, and FinCom
voted to maintain that line item regardless.
Ms. Neggers said she appreciates the complexity of the budget, partly due to lack of state aid, as over $100 million of lottery money went to cover state expenses and not to towns. She stressed the problem is the state’s lack of financial commitment to towns, not the expenses of those towns. Ms. Neggers expressed concern over the impact to the Senior Center and asked FinCom to look at the impact of level funding departments’ budgets. She explained the line item for Hazardous Waste Day budgets for only 40 families, adding that the COA budget needs could met.
Mr. Morrell stated his department’s line item for Downtown Street is $10,000. If FinCom could guarantee its return in a later budget cycle, he is willing to reduce the line by $1,500 in order to add $1,500 to the COA budget. Mr. Hebert complimented John, adding the COA should be reconsidered as all departments face increasing costs.
Fire Department: Chief Harris explained the Fire Dept. has had to delete its request for $2,500 to pump out the oil and gas separator for the last two years. He received a letter from the Monson Board of Health stating the work must be done by July 1, 2005. Failure to do so will result in fines. This is an expense that will recur yearly. He answered Mr. Goodrich’s question that, yes, he has submitted a Request for Transfer from the Reserve Fund for approximately $2,500.
School Excludable – Transportation: Ms. Mahar stated one thing was overlooked: the $10,000 requested by the School Committee to purchase a van. Mr. Tassinari explained a handicap van with a lift is needed to cover established routes. Of the two current vans, one is a 1995 model in relatively good condition. The other is a 1988 model with high mileage, which is used only in town because of reliability issues. The concern is that if anything happens to one, it will be extremely difficult to cover the routes. As it is difficult to project student needs, and contracting out van service is exorbitant, it is prudent to have a spare van. The intention is to put the 1998 model in Reserve. Mr. Fimognari asked what type of van could be purchased for $10,000, and Mr. Goodrich
asked if this would be considered a capital purchase. He stated it is important not to add the number to the School’s budget. Mr. Tassinari realized $10,000 would not purchase “much of a van”, but that under current budget constraints, the School did not want to ask for more. The purchase would be a “short-term fix”, and allow a capital plan to be developed. Mr. Hebert explained the van is a short-term investment, and as such, may or may not be considered a capital purchase. Mr. Margerison asked if there is any grant money available, and if any buses are handicap equipped. Mr. Tassinari explained there are no grant sources, and no buses are so equipped.
Report on Storm Water Regulations: Mr. Morrell told FinCom there is a $2,500 fee, due by May 1, for the report on storm water regulations. This started last year and will be an annually recurring fee. Mr. Goodrich asked if this is paid to the consultant so the report can be filed. Ms. Neggers explained the consultant gathers necessary documentation and files reports with the EPA and DEP. Mr. Margerison asked if the contract was put out to bid and if this consultant has the cheapest rate. Mr. Morrell answered the consultant has done a great deal of other work with the town and has a strong relationship with Monson. Mr. Goodrich asked if it is appropriate the funds come from the Highway department, and wondered if a line item needs to be added. Mr. Morrell stated it is a
town-wide responsibility. Ms. Neggers stated it is most appropriate the funds come from the Highway Department, as Monson does not have a DPW.
Special Education Shortfall: Mr. Hebert asked for FinCom’s position on the article the Selectboard put on the STM, to transfer $90,000 to the Schools. Mr. Fimognari answered FinCom voted to pass over; meaning the committee does not recommend or oppose the article, adding the School Department can bring the issue forth at Town Meeting. Mr. Hebert stated that do so has been frowned upon in the past, and he believed it would not be prudent to do so now. He added the School would need to close the library, etc, if the article is defeated. Mr. Fimognari stated the SPED budget was approximately $130,000 higher the last three or four years, and the School reduced it this year and then said it had unexpected costs. Mr. Hebert reminded the committee that he and they had discussed the
unexpected costs. Ms. Dion explained the department tried to budget as tightly as possible. It was known there was a student aging out of a program, and another student was leaving. There was no way to know about new students or anticipate their needs. The SPED budget is not padded. Ms. Mahar explained the Circuit Breaker is a volatile number; the School budgeted FY05 last May, and, based on expected Circuit Breaker money, asked for additional funds at the Nov. STM. Mr. Ross said he understood, and asked what was done to defer spending, adding he is “not convinced.” He said the School did not share information, and he could “see it happening next year” as well. Mr. Hebert answered that the School gave a real FY05 budget as asked, and Ms. Dion did her best to contain that line item. He repeated that there is no padding in the SPED budget. Ms. Dion explained out of district placements greatly impacted
this year’s budget, adding it is the first time in her five years in Monson the budget has gone over. Mr. Hebert stressed that if the town does not approve the article, for the School to come up with $90,000 over the 40 remaining school days would mean a major reduction of services.
Mr. Goodrich stated that, for him, the issue is a timeframe one. He related budgets are approved at Town Meeting, adjusted at STM, and the Department Heads are “charged with operating within those budgets.” He mentioned the spreadsheet given FinCom by the School Committee, and said placements on Nov. 16, 2004, Feb. 9 and March 1, 2005 equaled approximately $79,000. He stated he saw no movement to help offset those costs. He asked why the School’s budget was not looked at more closely and timely. He stated the town has to pay the bill, and it is FinCom’s point to not endorse the process followed by the School, nor tell townspeople to not endorse the article. It is the School Department’s responsibility to explain its actions to the town.
Mr. Hebert apologized for not doing a better job communicating. The bill must be paid, however, and he asked for FinCom’s endorsement.
Selectman Norbut stated the Selectmen voted unanimously to place the warrant on the STM, and spoke with FinCom, adding she understood the rationale for the pass over vote. She mentioned that historically, town departments have proposed solutions. She stated she e-mailed Superintendent Woodbury asking for a recommendation for a solution, but had not yet received a response. She said to Mr. Ross that she appreciated his concerns, adding that the issue needs to go to legislation, for there needs to be a cap on out of district placements.
Ms. Neggers stated she wished to reinforce the fact that the bills have been incurred and need to be paid. She realizes the concerns being referenced need to be addressed. She sees two alternatives if the article does not pass. The School absorbs the $90,000 within the next two months, which is not realistic and not necessary, as the funds are available. The other possibility is the town finds itself in a deficit spending situation, resulting in audit, DOR issues, and a serious impact on Monson. She encouraged FinCom to show the voters understanding and leadership, and asked that in future meetings the committee reconsider its decision.
Mr. Ross stated he felt the School collected the bills and did nothing to attempt to shift funds. Mr. Tassinari explained that the shortfall amount was not known until the Circuit Breaker figure was known. The Circuit Breaker figure changed many times, and the calculation was not final until the beginning of April. He stated it was irresponsible to comment on the School’s so-called ill planning. Additionally, he explained, there are five different agencies, such as DSS and the state, that no longer provide funds for Special Education. Mr. Hebert mentioned a letter from Selectman Norbut to the School Department that advised the School Committee motion to move money when the amount was $25,000 or greater. Upon School Committee member Kaiser’s advice, the School Committee will
look at the budget each month, effective July 1, 2005. Ms. Mahar stated she spoke to Ms. Woodbury, and the shortfall may drop slightly.
Mr. Margerison thanked Department Heads and stated he appreciated their working together. Mr. Goodrich thanked Department Heads for their optimism.
The next scheduled meeting of the Finance Committee is May 2, 2005 at 6:30 p.m. at the Town Accountant’s Office.
The meeting was adjourned at 8:10 p.m.
Respectfully submitted,
Ann M. Lee, Administrative Assistant to the Finance Committee
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