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BOARD OF SELECTMEN
TUESDAY, OCTOBER 28, 2008
The regular meeting of the Board of Selectmen convened at 7:00 p.m. in the Conference Room at 110 Main Street. In attendance were Kathleen C. Norbut and Edward S. Harrison. Richard E. Guertin was not present. Also present were the Town Administrator and the media.
The Pledge of Allegiance was recited.
Acceptance of Meeting Minutes:
Mr. Harrison made a motion to accept the meeting minutes of October 7, 2008 – open and executive sessions. Ms. Norbut seconded and it was so VOTED.
Ballot Question #1 – Revenue Impact Simulation:
Ms. Norbut explained Question #1 on the election ballot pertaining to the State Income Tax, phasing it out in Fiscal Year 2009 with elimination in 2010. Ms. Neggers presented a slideshow which was prepared with the Finance Director Deborah Mahar’s assistance, simulating the impact of what would happen to the town financially if Question #1 is passed. Ms. Neggers explained the current amount Monson receives in State Aid with a slide showing the Cherry Sheet amounts which total $9,536,431.00, with Chapter 70 funds for the schools being the largest with $7,708,640.00. Ms. Neggers added these are funds the town greatly relies on. The next slide explained the Massachusetts Municipal Association revenue reduction simulation. Under this scenario, the Chapter 70 funds for the schools would be reduced to $2,081,333.00. Ms.
Neggers explained the reduction in the lottery, elderly exemptions, etc. for an overall total of $3,232,840.00. Ms. Neggers also explained the Massachusetts Taxpayers Foundation Revenue Reduction simulation which had a greater reduction than the Massachusetts Municipal Association with $3,380,891.00. The Town also receives funding from other discretionary State accounts including $361,886.00 in Chapter 90 Highway Funds and $174,291.00 in FY 08 from the Special Education Circuit Breaker Funds. The passage of Question #1 would reduce Veteran’s programs, senior prescription programs and reduce Medicaid to a minimum with a 33% to 35% decrease in the Cherry Sheet State aid, a 16% reduction in the total Town budget, 19.5 % reduction in the school budget and a 22% to 25% reduction in the non-education budget. Ms. Neggers explained the current Fiscal 2009 Town budget with the General Fund only, excluding school construction and enterprise funds, totaling $19,879,245.00, again with
education being the highest at $12,214,001.00. The mandatory town budget expenses total $3,560,648.00. These are items that can’t be cut. The largest is the health insurance at $1,669,000.00, followed by pensions at $902,686.00. Ms. Neggers explained what would be left. The budget would contain $19,879,245.00, minus $12,214,001.00 for education, minus $3,560,648.00 in other mandatory expenses leaving a balance of $4,104,596.00; reduced by 30% in revenue reduction simulations ($1,282,477.00) and the education budget reduced by 20% ($2,081,333.00). The $12,214,001.00 in education does include Pathfinder. Ms. Neggers explained the $1,145,993.00 in cuts to the remaining balances, and added if you eliminate the Library, Senior Center, Parks & Recreation and Board of Health, you are still a good chuck of money away and noted we are not in a great position to absorb any cuts. This would mean a 28% across the board cut to the remaining departments, resulting in probable
elimination of many services combined with reductions in others. The Police Department would be cut back to part-time with some type of ambulance service.
Ms. Neggers said for further information residents may log onto four different web sites:
Ms. Norbut thanked Ms. Neggers and Ms. Mahar for working on this presentation and noted the town has never recovered from the previous recession/cuts and now we are looking at cuts that would basically destroy our community, as Monson is a community that depends and benefits greatly from State aid. The passing of Question #1 would increase property taxes by $319,000,000.00 state-wide via a property tax over-ride and also increase the sales tax from 5% to 7% and do away with the exemptions so there would now be a sales tax on clothing, food, electricity, heating fuel, on telecommunications and on health care products, in the best scenario. Mr. Harrison added the people who would benefit from this are the people who make more than $100,000.00 per year. The average savings to those who earn over $100,000.00 per year would be
$16,000.00, while those who earn less than $50,000.00 per year would save $850.00. Mr. Harrison added to make up what would be lost would cost residents more than the $850.00, so residents would be shooting themselves in the foot if they decided to vote for this and it passed.
Mr. Harrison made a motion to defeat the support of Question #1 and ask the residents to vote no in the best interest of the Town’s financial situation.
Highway Surveyor – Snow and Ice Budget Developments:
John Morrell approached the Board of Selectmen and explained Monson is one of ten communities and one school, Minnechaug Regional School, participating in Regional Salt Bids and noted the low bidder for the FY09 salt bid was Eastern Salt at $88.80 per ton. This is an increase of $25.50 per ton over last year’s price. However, Mr. Morrell added there are town’s paying over $100.00 per ton. The highest bid received was $107.65 per ton from International Salt. Six bids were sent out with only three companies responding. Mr. Morrell stated the increased cost will be a problem considering the budget constraints facing the town. Last year 2,013 tons of salt was used on the roads. This would be an increase of $52,000.00 if the same amount of salt is used again this year. Eleven yards of sand was used last year. The
cost of sand this year is $12.50 per ton with an increase of $7,200.00 if the same amount of sand is use this winter as last winter, therefore Mr. Morrell added, the Snow & Ice account will get wiped out quickly this year if we have any kind of a snow and/or ice season. Mr. Morrell explained he will change to a 50/50 mix this year with not as much salt being added to the sand, but noted it is a science knowing the forecasted temperatures, type of precipitation, etc. Contracted snow plows and over-time will still have to be paid on top of the increased costs for the sand and salt. Ms. Neggers noted she is working with the department heads on preparing conservative budgets for the next fiscal year. Mr. Morrell explained his department along with the Police Department, Fire Department, and all the other departments are running out of ideas and ways to conserve without really sacrificing services. Mr. Harrison noted a brand new fire station in W. Yarmouth is shut down because they
can’t afford it now. Ms. Norbut added in 2005/2006 the Town of Hampden had to close the Library and Senior Center. It’s hard for everyone, everywhere, and the cities and towns are doing the best they can with the progressively decreasing budgets.
Current Fiscal Year budget – General Discussion:
Ms. Neggers explained the Town is anticipating a potential reduction in State Aid for the current fiscal year, as well as an anticipated reduction in State Aid for next year. Ms. Neggers stated it’s unlikely the Town will be able to maintain its current level of services without significant cooperation from all the departments, as this is the most challenging fiscal crisis the Town of Monson has faced since at least 1991. It was asked all the departments take this matter seriously and curtail the spending immediately. It was noted the School Committee implemented a spending freeze last week.
Mr. Harrison made a motion to initiate an immediate spending freeze on all but non-essential items for all departments along with a hiring freeze, with letters going out to all the Commissions and elected officials advising the town needs to work very cooperatively on this; and to formalize the process to review with the Finance Director. Ms. Norbut seconded and it was so VOTED.
Complete Special Town Meeting Warrant – Commence Review of Requested Articles:
Mr. Harrison made a motion to place the attached 19 items on the Special Town Meeting Warrant. Ms. Norbut seconded and it was so VOTED.
Mr. Harrison made a motion to close the Special Town Meeting Warrant. Ms. Norbut seconded and it was so VOTED.
Approve Minimum Bid Amounts – Town-Owned Property Auction:
It was explained to come up with the minimum bid price $2,200 was added to the tax due amount. It was reiterated the auction will be held in the gymnasium in the Town Office Building on November 6th at 6:30 p.m. Information is also posted on the Town’s web site at monson-ma.gov along with the terms and conditions of the sales.
Mr. Harrison made a motion to set the minimum bid prices as attached for the parcels to be auctioned on November 6, 2008. Ms. Norbut seconded and it was so VOTED.
In New Business to Come Before the Board of Selectmen:
- Mr. Harrison made a motion to allow the Monson Arts Council to place a banner across Main Street from November 10, 2008 to December 1, 2008 announcing the M.A.C. Craft Fair. Ms. Norbut seconded and it was so VOTED.
Correspondence was read and completed.
At 8:30 p.m., Mr. Harrison made a motion to adjourn from open session to go into executive session for the purpose of a collective bargaining discussion, not to return to open session. Ms. Norbut seconded and it was so VOTED.
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Edward S. Harrison, Clerk
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