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BOARD OF SELECTMEN
TUESDAY, APRIL 19, 2011
The special meeting of the Board of Selectmen for the discussion of the budget convened at 7:00 p.m. in the Conference Room at 110 Main Street. In attendance were John F. Goodrich II, Dr. Richard M. Smith and Edward A. Maia. Also present were Town Administrator Gretchen E. Neggers and the media.
The Pledge of Allegiance was recited.
Acceptance of Meeting Minutes:
Mr. Maia made a motion to accept the meeting minutes for April 12, 2011 – open session. Dr. Smith seconded and it was so VOTED.
Budget Review:
Ms. Neggers explained at last weeks Board of Selectmen meeting, the Selectmen established the parameters for the budget development, agreeing the town would meet the mandatory legal requirements on responsibilities such as audits, insurances, pensions, benefits, payment of the debt, etc., which can’t be defaulted on. Ms. Neggers reiterated she was asked to protect the emergency services and the financial operations of the town, with the assumption the School would be funded at the State minimum mandatory level of Net School Spending.
The proposed reductions are related to discretionary services with minimized impact on departments, and particularly avoiding any sizeable reduction to the Library to avoid placing their certification at risk. Ms. Neggers added it was also agreed she would look at consolidating services wherever possible and to try to look at proposed budget reductions in terms of a risk benefit analysis, on the impact of services and the towns’ residents. Ms. Neggers reiterated Monson is facing some pretty significant budget issues and added we are not alone as cities and towns across the Commonwealth, as well as the Commonwealth itself, are facing the same issues.
Ms. Neggers gave a presentation explaining she and Finance Director Deborah Mahar looked at the proposed reductions and what has been reduced over the past three fiscal years. The town has lost 40% of discretionary State aid, while revenues continued to decline this year. It was a very bad winter with a very high Snow and Ice deficit. The town is faced with a 16½% rise in health insurance costs for town employees, requiring $300,000 just to cover the increase; and fuel costs continue to soar.
Ms. Neggers said she and Ms. Mahar looked at the level service requests and went through them budget line by budget line. They also looked at many three-year expenditure analyses, analyzing whether the budget was falling into actual expenditures for the past three years. Ms. Neggers explained the current projected revenue is $22,030,807, and noted good news was received from the House and the Senate last week stating the legislature released figures and they did not go below what the Governor had recommended. To do a level service budget, $22,160,724 would be needed.
Mr. Goodrich noted in the past Monson’s operating budget was 52% reliant on State aid. Ms. Neggers stated last year only 48% or 49% was received from State aid due to cuts. Mr. Goodrich felt this was important for the residents to understand as this is a significant cut.
Ms. Neggers said during the review of the budgets, she and Ms. Mahar found the Street Lighting account needed to be increased by an estimated $2,000; the Liability Insurance account needed to be increased by $5,000; GASBY- 45 is an auditing requirement that has to be done every two years and this is an additional $7,150; they also projected the Snow and Ice deficit will be $20,000 less than what has been authorized. This leaves the amount to be cut from the level service budget at $22,167,024, and this would have to be reduced by $124,067. This is under the assumption the capital project for Pathfinder doesn’t get approved. If the majority of the members of Pathfinder do however approve the capital project for Pathfinder, the $124,067 would increase by another $22,170. Ms. Neggers felt the Finance Committee was in
agreement of not funding the Pathfinder Capital.
Ms. Neggers said it has been at least three weeks since the town has heard form FEMA, and felt the town shouldn’t count on receiving a reimbursement for the January snow storm.
Ms. Neggers explained the target number is $124,067.00 and presented the following proposed budget reductions for consideration:
- Reduce the Board of Assessors expense line by $1,000; reducing the mapping program based on a 3-year analysis.
- Reduction in the Collector’s salary account of $3,000 used for as needed part-time help.
- Reduction in the Assistant Town Clerk’s hours from 33 to 30 hours per week, for a savings of $2,310. This office has not had a reduction of hours or additional responsibility placed on it within the town in the past.
- Reduction of $5,000 from the Police Department salaries requested. Ms. Neggers said she and Ms. Mahar felt the department could sustain this cut and still maintain services as they are.
- Reduction of $5,000 from the Police Department expenses requested. The Police Department had asked for a $2,400 increase and they are recommending the Chief use $12,000 in funds from the 9-1-1 emergency grant to offset his salary line item again this year.
- Cut the $1,000 budgeted in the Building Inspector’s Office for a part-time inspector to fill in for the Building Commissioner whenever he is on vacation or unable to be here. Ms. Neggers noted this has never been used.
- The Emergency Management has a $500 line item for expenses and Ms. Neggers recommended this be eliminated. Ms. Neggers said she has been working with the Emergency Management Director Kathleen Norbut and MEMA on applying for a $3,500 grant to get some shelter supplies.
- Reduction of $1,000 in expenses for the Animal Control department based on the analysis of what has actually been expended.
- Reduction of $4,000 in School transportation. (This will be talked about below).
- Reduction of $25,000 from the Highway Department; Highway Surveyor John Morrell said he will take $15,000 from Chapter 90 funds for salaries and reduce the General Highway and Bridges account by $10,000. Ms. Neggers noted the Chapter 90 money has increased by $110,000 this year and noted this would be really good news if we weren’t faced with this budget situation and the escalating costs of asphalt.
Reduction in hours for employees in both the Cemetery Department and Parks and Recreation Department. The Superintendent and the full-time laborer in the Cemetery Department and the Director and full-time Assistant Director for the Parks and Recreation Department’s hours would go from 40 hours a week to 35 hours a week for a combined savings of $20,180. Ms. Neggers noted both departments are under the jurisdiction of independently elected boards, and they could choose to do something different. Ms. Neggers noted both the laborer and Assistant positions are union positions and according to Chapter 150E, employees in the union work for the Board of Selectmen and not the elected boards.
In the Board of Health, Ms. Neggers noted the hours have not been reduced in the past. A grant has been used to offset the salary for the clerical position and the grant has come to an end, therefore the town will be picking up a greater portion of the salary, however the recommendation is to reduce the clerical hours by three hours a week for a savings of $2,720.
The Greater Springfield Senior Services has a $101 reduction which Ms. Neggers believed was a budget adjustment.
Reduction of $4,000 for the Council on Aging.
Reduction of $7,000 for the Library.
FICA Medicare budget, $3,000 reduction, but noted this is very, very close.
$28,000 capital line item. Ms. Neggers said we have made the final year payment on the school language lab lease and said she was hoping to do other capital projects, but in the scope of what the town is looking at for reductions, she and Ms. Mahar are recommending this be reduced as well for a total of $124,811, which will give $744 back.
With the School busses, Ms. Neggers explained she has had lengthy conversations with the Superintendent, and she has listened to the Finance Committee discuss this for many weeks. Ms. Neggers noted the Finance Committee had proposed reducing the school transportation budget by $80,000 and not purchase any new buses, with the belief the School Department would go out to bid next year to privatize the service, believing it would be less money then the town is currently paying. Ms. Neggers added the risk benefit analysis is obvious to her when looking at the information provided by the Superintendent. Currently there are 16 school busses and 11 school vans, for a total of 27 vehicles being maintained by a single mechanic. These vehicles have a total of over 2 million miles on them. Five busses are 2000 models, and one 1999
school bus is used as a spare. The School has proposed replacing three of the school busses, to try to phase in new busses over time. Ms. Neggers noted the busses are at an age where they are going to require extraordinary maintenance due to the mileage, and the terrains in town being much rougher on the vehicles. Ms. Neggers said if a vehicle breaks down in the middle of the year, or the beginning of the year or on a snowy day on the outskirts of town with a bunch of children on it, we would have to go out and lease a bus on an emergency basis, which would be extremely expensive, and with no way to pay for that within this budget. Ms. Neggers felt due to the magnitude of repairs required on older busses, a part-time mechanic would need to be hired, and the actual savings wouldn’t be anywhere near what is being projected. Ms. Neggers felt the town could get into a terrible bind by not purchasing new busses and noted they are transporting the towns’ most fragile
residents on a daily basis.
Mr. Goodrich asked about figures for the part-time mechanic. Ms. Neggers said it would cost $19,926. Mr. Goodrich reiterated it would cost $80,000 to purchase three new school busses and felt if the busses were purchased and the contract went out to bid next year and came back with a cost savings, and we wanted to switch, he felt you wouldn’t lose the full $80,000 as you would have equity in them. Mr. Goodrich stated he doesn’t see a down side to this and added just because this is a difficult year financially you can’t take your eye off the ball, and you still have to do the right things.
Mr. Maia noted since 2005, only one school bus has been purchased, instead of replace one or two busses a year. Ms. Neggers added that is due to the fact it keeps getting deferred due to the budget. Ms. Neggers said this just can’t keep getting pushed back anymore as it could force the town into using a private service at a much greater cost, as you lose the continuity of the fleet.
Dr. Smith made a motion to endorse the budget as proposed and to forward it on to the Finance Committee. Mr. Maia seconded and it was so VOTED.
Ms. Neggers explained the union employees will be receiving a 3% pay increase on July 1st in accordance with the union contract, and proposed a 2% pay increase for the non-union employees to help compensate for the increase in health insurance premiums. Ms. Neggers explained there are approximately fifteen employees not in the union.
Dr. Smith made a motion to approve a 2% pay increase effective July 1, 2011 for the roughly fifteen non-union employees. Mr. Maia seconded and it was so VOTED.
Mr. Goodrich asked if anyone in the audience wished to comment. No one responded.
Correspondence was not presented at this meeting.
There wasn’t any other business to come before the Board of Selectmen.
At 7:50 p.m., Mr. Maia made a motion to adjourn from open session to go into executive session for the purpose of contractual collective bargaining, not to return to open session. Dr. Smith seconded and it was so VOTED.
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Edward A. Maia, Clerk
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