Present: Peter Fimognari, Chris Carlin, John Goodrich, Bob Margerison, Jim Pennington, Pete Ross, Ann Lee (FinCom Admin. Asst.)
Also Present: Deb Mahar (Town Accountant), Kathleen Norbut (Selectman), Ed Harrison (Selectman)
Absent: Tina Augustin, Paul Desmond, Christine Edwards, Joel Keller, Maureen O’Sullivan
The meeting was convened at 6:30 p.m.
A motion was made to accept the minutes of the 11-14-05 meeting as written. It was seconded and SO VOTED, unanimously.
A motion was made to accept the minutes of the 11-21-05 meeting as written. It was seconded and SO VOTED, unanimously.
CORRESPONDENCE
Town of Monson Certification of Appropriations for the November 21, 2005 STM was received. It is on file.
“The Trust for Public Land” was received. It is on file.
The December issue of “The Beacon” was received. A copy is on file.
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OLD BUSINESS / NEW BUSINESS
Preliminary Budget Discussion: Mr. Goodrich noted that FinCom has had minimal success with departmental budget requests. The reason could be that the request was not clearly worded, or FinCom has not been sure of what it should ask of the department heads. He stated it is not FinCom’s responsibility to determine if a budget is in reality operational, for that would be micro-management. Mr. Carlin believes the process begins too soon, for it begins in January and by May there is usually a different scenario.
Mr. Fimognari suggested an exercise asking each department for its minimum operating budget. Mr. Ross noted the 1% reductions taken at the November STM, stating departments are at minimal operating budgets. Mr. Carlin wondered if department heads realize operating costs can not be continually supported with Free Cash. Mr. Ross explained he met with several department heads and they do have a grasp of the situation. He added he would like to see the budget in one Excel spreadsheet.
Ms. Mahar mentioned FinCom discussed using less Free Cash in FY06 than in FY05, but then voted to use more, sending a mixed message. Mr. Carlin stated FinCom has believed it will be a huge challenge to get the town to agree to cuts when there are reserves in Free Cash and the Stabilization Fund.
Mr. Goodrich agreed December is too early to begin the budget process, as in mid February there are still unknown variables such as insurance and pension numbers. He expressed concern that as revenue projections get more accurate there will be a decrease in the replenishment of Free Cash. He proposed using January to get the budgets into Excel format. Mr. Ross offered to develop the format and Ms. Mahar offered to assist him.
Mr. Fimognari mentioned that the state will get pressure to return some of its increased revenue to the towns. Mr. Ross told the committee that he expressed his concerns to Senator Brewer’s office and was told no other Senators are hearing these concerns from their towns. Mr. Margerison stated it is the town’s money to spend, FinCom should tell departments no Free Cash will be used, and allow the department heads to make a case on the town floor. Mr. Ross noted “it takes a great deal to remove $400,000.”
Mr. Pennington noted FinCom can start with a benchmark number, and department heads can add in any additional priorities. Department heads know what they need, and know that variable costs are insurance, sometimes wages, and energy. Ms. Mahar stated all departments except the School and Police have contracts in place. Mr. Fimognari stated the School will be at NSS. Mr. Goodrich summed up that FinCom is looking for the minimum needed to perform necessary services. Mr. Margerison stated FinCom had already asked for that. Ms. Mahar said no, FinCom had asked for a decreased budget and a level funded budget. Mr. Carlin expressed concern that asking department heads to do this exercise might be draining, as FinCom already has a sense that departments need increases in order to operate. Mr. Fimognari
agreed that it might seem like busy work.
Ms. Mahar shared her suggestion for wording a request for a minimum operating budget. Mr. Harrison agreed with the wording, adding a suggestion that all departments make an assumption for energy costs, to put everyone on a “level playing field.” Ms. Mahar suggested using the current contract rate because usage is fairly stable. Mr. Pennington asked why the energy costs are separated into individual budgets instead of having one town-wide energy budget. Ms. Mahar explained she is often asked the cost to run individual departments.
Ms. Mahar shared a revised suggested wording for a minimum operating budget. Mr. Carlin asked Ms. Mahar, as a department head, if she thought the request was “digestible.” Ms. Mahar replied department heads will think, “This is doable.” Mr. Ross wondered if every budget would include a requested increase. Ms. Mahar replied FY07 will be a year of significant cuts if the state does not give the town more money. Mr. Fimognari asked if the memo should begin by stating that no increase is expected. Mr. Carlin felt that discussion should be held until another time. Mr. Margerison noted it is time to combine departments, although he knows it is not a FinCom issue.
Mr. Carlin and Mr. Ross, with Ms. Mahar, will develop the Excel template. Ms. Mahar clarified that by statute the budget must be received by December 31, or 90 days before the ATM, and they are typically submitted by the end of December. The decided timeline is:
The memo from FinCom will be e-mailed ASAP
The completed template will be given to Ms. Mahar by Dec. 16
Budgets are due to Ms. Mahar no later than Jan. 27
Mr. Goodrich motioned to send the memo to departments. The wording was discussed and the motioned amended, and SO VOTED, all in favor except for Mr. Margerison. (see attached memo)
Mr. Ross suggested spending time in January looking at the budget in greater review. Ms. Norbut suggested FinCom look at capital – what was requested and not funded. She noted when the budget is tight capital is pushed aside, and some budgets are chronically underfunded. She was told by Timothy Cahill that “we own our schools”, and noted that the schools have maintenance issues. Ms. Mahar noted Mr. Guertin has asked departments for their capital needs. Mr. Fimognari asked who makes the decision to reduce the budget in any given area in order to fund capital. Ms. Norbut mentioned setting aside Reserve Fund money for capital expenditures. Mr. Goodrich stated, “We don’t want to walk out of the Town Meeting with $0 – that screams of disaster.” Mr. Fimognari
agreed the Stabilization Fund should not be used for capital. Mr. Margerison pointed to Ms. Neggers’ previous comments that it is “time to phase in cuts.”
The committee agreed to meet in January to look at last year’s budget.
The next scheduled meeting of the Finance Committee will be January 9, 2005 at 6:30.
The meeting was adjourned at 8:45 p.m.
Respectfully submitted,
Ann M. Lee, Administrative Assistant to the Finance Committee
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