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Present: Peter Fimognari, Tina Augustin, Chris Carlin, Paul Desmond, Christine Edwards, John Goodrich, Joel Keller, Bob Margerison, Maureen O’Sullivan, Jim Pennington, Pete Ross, Ann Lee (FinCom Admin. Asst.)
Also Present: Gretchen Neggers (Town Administrator), Deb Mahar (Town Accountant), John Morrell (Highway Supervisor), Dorothy Jenkins (Town Collector)
Absent: n/a
The meeting was convened at 6:30 p.m.
Mr. Goodrich motioned to accept the minutes of the 9-12-05 meeting, with discussion. The incorrect heading date of July 11 will be corrected to September 12, 2005. The second to last paragraph of page 1 will be changed to read “creating a budget deficit of approximately $17,000”, the addition being the word “approximately”. The chart on page 2 will be revised to be simpler to understand. It was seconded and SO VOTED.
CORRESPONDENCE
A copy of a letter dated September 20, 2005 was received from Deb Mahar, Town Accountant, certifying expenditures for Snow & Ice Removal in FY05 totaled $311,195.56. This amount is in excess of the appropriated amount by $251,195.56. There was F.E.M.A. relief of $31,369.70, bringing the total excess expended to $219,825.86. Mr. Fimognari asked Mr. Morrell if there is any additional reimbursement expected; also, if the expended amount is in line with the average yearly expenditure. Mr. Morrell replied there is no additional reimbursement expected. Ms. Neggers explained the total is more than normally expended. Mr. Fimognari asked Mr. Morrell if contractors’ hourly rates have increased. Mr. Morrel answered the hourly increase of between $1 to $3 is the
result of higher fuel costs. Mr. Fimognari asked if the price of materials is expected to increase. Mr. Morrell replied that salt, which is bid with 10 other communities, is expected to cost more because of trucking prices. The price of sand increased $.50 per cubic yard, not only from trucking increases but because it is in shorter supply.
A copy of a memo dated September 20, 2005 was received from Deb Mahar, Town Accountant, showing the FY05 Water Surplus ending balance as $180,202.56. The money will be utilized for capital projects.
A copy of a memo dated September 20, 2005 was received from Deb Mahar, Town Accountant, showing the FY05 Sewer Enterprise retained earnings as $101,932.01. The money will be utilized for capital projects.
Copies of the Expense Ledger Variance for end date 8-31-05 were received and reviewed.
A copy of a memo to BOH, dated September 30, 2005, was received from Deb Mahar, Town Accountant, recommending the trash rate for 2006 be set at $210.00 per unit per year. This is an increase of $1 per month, the first increase since FY03.
A copy of e-mail from Gretchen Neggers, Town Administrator, dated September 29, 2005, was reviewed. Ms. Neggers related the Special Town Meeting scheduled for November 7, 2005.
ealth HH
OLD BUSINESS / NEW BUSINESS
Ms. Neggers Overview of Town Deficit for FY06: Ms. Neggers explained the Selectmen met Tuesday, 9-26-05, in Executive Session, to determine proposed reductions in order to cover the current shortage in the FY06 budget. The proposal was presented to Department Heads the following day.
Ms. Mahar has closed the books for FY05. Free Cash is expected to be certified at approximately $344,000, which is $85,000 less than what is needed to level-fund an FY07 budget. The Selectmen, in developing a strategy, are looking at cuts for FY07.
Ms. Neggers has spoken to Rogeness and Brewer. She feels there is little reaction to towns’ plights at the legislative level. There is talk of local aid relief for energy costs, but at this point is only discussion.
Ms. Neggers shared an article discussing findings of the Municipal Finance Task Force. In general, the task force found that almost all new local aid since FY93 has been earmarked for schools, and towns have been forced into greater reliance on property tax revenues. She also shared an article citing Eric A. Kriss’s assertion that cities and towns have been instrumental in creating their financial trouble, mainly as a result of “overly generous contracts with public employees, together with a failure to control employee healthcare costs and an aversion to development that could spur new tax revenue” (The Boston Globe, Sept. 27, 2005). Kriss is the Romney administration’s outgoing budget chief. Ms. Neggers felt Kriss’ statements were entirely out of line, citing the Task
Force’s findings are in direct contradiction to Kriss’ comments. (Copies of both articles are on file.)
Ms. Neggers explained that Monson town employees have received a 6.1% pay increase over 4 years. AFSCME employees agreed last year to raise a doctor visit co-payment from $5 to $15, and an ER visit co-payment from $25 to $50. Employees pay 29% of their health insurance premium for family plan coverage, and 15% for individual plan coverage.
Selectmen’s Proposed Cuts:
Department |
Proposed Cut |
Explanation |
Board of Selectmen |
$ 3,540 |
BOS gave up salaries for remainder of year (6 months); expense reduction |
Finance Committee |
$ 36 |
Expense reduction |
Town Accountant |
$ 300 |
Expense reduction |
Board of Assessors |
$ 8,912 |
BOA gave up salaries for remainder of year (6 months); clerk reduced by 2.5 hrs/wk; expense reduction |
Treasurer |
$ 1,000 |
Staff reduction |
Town Collector |
$ 3,600 |
2 clerks reduced by 2.5 hrs/wk each; expense reduction |
Elections & Registration |
$ 750 |
Expense reduction because there is only 1 election this year |
Town Report |
$ 4,950 |
The report will not be printed – it will be available online |
Police Department |
$ 576 |
Operating expense reduction |
Fire Department |
$ 1,214 |
Clerk reduced by 2.5 hrs/wk |
Building Inspector |
$ 500 |
Expense reduction |
Parking Fines |
$ 150 |
Expense reduction |
Highway Department |
$10,859 |
All employees reduced by 2.5 hrs/wk; expense reduction |
Household Hazardous Waste |
$ 4,500 |
Eliminate Hazardous Waste Day |
Cemetery Department |
$ 9,979 |
Reduce 40 hr position to 20 hr; expense reduction |
Board of Health |
$ 142 |
Expense reduction |
Council on Aging |
$ 2,680 |
Van drivers reduced by 2.5 hrs/wk; expense reduction |
Veterans’ Benefits |
$ 1,000 |
Expense reduction |
Parks & Recreation |
$ 2,753 |
Assistant reduced by 2.5 hrs/wk; expense reductions |
Blanket Insurance |
$ 2,275 |
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TOTAL |
$59,717 |
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Ms. Neggers told the committee heating oil cost for Town Hall and Memorial Hall has been locked in at $2.12 per gallon. She explained an energy audit was done in 1993. Most recommendations for the Town Hall were followed during renovations of the building. Currently, insulation in Memorial Hall that was lost when the roof leaked needs to be replaced.
Mr. Keller noted the FY06 budget has been scrutinized carefully and is at an operational minimum, and he questioned what could be done in the future. Ms. Neggers answered cuts will be necessary; most likely the Library, Park & Recreation department, and the Senior Center. Mr. Keller asked if additional measures are possible, such as merging departments. Ms. Neggers explained there is no written policy, but there already exists a great level of cooperation among departments.
Mr. Fimognari asked if any town Commissioners’ salaries are still being paid. Ms. Neggers explained the Water and Sewer Commission decided not to relinquish their salaries, because it would not benefit the town. Water and Sewer are self-funded.
Mr. Ross asked if Department Heads realize these cuts are “real, and happening.” Ms. Neggers reassured FinCom the Department Heads “fully comprehend the seriousness of the situation we’re facing.” Mr. Fimognari asked when the reductions begin. Ms. Neggers replied they start the pay period beginning November 15, 2005.
Mr. Carlin asked why the FinCom Reserve Fund was not reduced. Ms. Neggers explained the fund is necessary for unexpected emergencies. Mr. Carlin questioned if Department Heads would expect to be able to ask for monies from the Reserve Fund to offset budget cuts. Ms. Neggers replied the reductions are to be absorbed. Mr. Margerison asked if the Selectboard considered other options. Ms. Neggers said many other possibilities were considered, and this proposal was decided upon.
Ms. O’Sullivan asked if the union was in agreement with the proposed cuts. Ms. Neggers answered it was not yet agreed upon, but still being discussed. If necessary, the issue would go to impasse bargaining. Mr. Margerison noted the Water and Sewer department has money available. Ms. Neggers explained the surplus is to be used for land acquisition and to build a water tank. Mr. Ross asked how the School’s budget looked. Ms. Mahar has met with School administration; reductions will be needed to meet fuel costs.
Ms. Neggers related that electricity costs were locked at $.0704/kwh in March 2005 for 4 years. The current rate is $0.128/kwh, and Mass Electric is projecting the cost to rise to $0.16/kwh. Ms. Neggers credited Craig Jalbert as the “inspiration” for the rate lock.
Mr. Carlin asked if the Selectmen have discussed revenue generators. Ms. Neggers replied building permit fees could be increased, which would bring in approximately $20,000. The owner of the mill, M&M, has proposed converting the building into Senior Housing. There is currently work in progress to procure an EPA grant that would allow the South Main Street School site to be cleaned and sold. The Zero building’s owner, who is based in Anaheim, CA, will not allow anyone in the property and is proving to be difficult.
Ms. Neggers related the Selectmen will set the Warrant for the STM on October 11. It will be posted October 21. Mr. Pennington asked what the next step will be if there occurs a drastic negative event. Ms. Neggers explained the proposed reductions will fund the high end of the estimated shortage, and will hopefully cover the rest of the fiscal year.
The next scheduled meeting of the Finance Committee will be October 24, 2005 at 6:30.
The meeting was adjourned at 7:45 p.m.
Respectfully submitted,
Ann M. Lee, Administrative Assistant to the Finance Committee
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