Finance Committee Meeting Minutes
Thursday October 4, 2018
Rutland Public Library
7:00 p.m.
Present: Thomas Ruchala, Lyndon Nichols, Carol Martens, Iain McKinlay
Absent: Karen Nahrwold, Sheryl Vernon, Brian Stidsen
Others: Robert Reed – Interim Town Administrator, Laura Paradise – Secretary
Invited Guests: Matthew Lavoie and Rachel Dolan – Wachusett Regional School Committee
Mr. Ruchala opened the meeting at 7:11 p.m.
Mr. Nichols moved to accept the meeting minutes of August 30, 2018. Ms. Martens 2nd. Vote unanimous.
Discuss/endorse/approve proposal from Holden meeting regarding school budget
There was discussion about the letter drafted by Peter Lukes after the joint regional meeting regarding the FY20 WRSD budget. The letter outlines requests from the district towns to the School Committee in advance of the budget preparation for FY20.
There was discussion about the lack of a consensus at the joint meeting about the request for no more than a 3.5% overall increase in operational spending. Mr. Nichols expressed concerns about signing the letter without the percentage being agree on. Mr. Reed informed the Committee that Mr. Lukes has asked for comments before the letter is finalized. Mr. Reed has compiled comments from the Board of Selectmen and will include any notes from the Finance Committee in his response to Mr. Lukes.
Mr. Nichols asked Mr. Lavoie and Ms. Dolan about the discussion at the joint regional meeting. Mr. Lavoie attended the meeting. His impression was that the Towns could create individual letters or sign one letter from all Towns. All motions at the joint meeting were unanimous except for the percentage increase. Rutland and Paxton had abstained, and Princeton was not comfortable making the vote without more information from the Towns on revenues and expenses.
Mr. Nichols recommended leaving the percentage open-ended until the Finance Committee has had a chance to review the budget information.
Ms. Martens discussed an item in the letter pushing for a line item budget. There is no consensus on what format a line item budget should take. Mr. Lavoie has provided examples to bring to administration as models, including the Quabbin line item budget that Mr. Lukes included in the letter as reference.
Mr. Ruchala stated there is a wide spectrum of line item budgets, but with State parameters most are straightforward. There was discussion about different budget formats and the comparison between Bay Path and Quabbin as examples as Bay Path is one school and Quabbin is a district with multiple schools. Wachusett would need to break out 13 different schools. Ms. Dolan suggested the Finance Committee provide an example of what they’re looking for from the school district.
Mr. Nichols stated the comparison to Bay Path’s budget was more about transparency than format. The Finance Committee wants to be able to see the numbers.
Ms. Dolan feels if all five towns are looking for a line item budget this is the time to do it. If an example can be provided to the School Committee, they can move forward. Until the letter is received, the School Committee can’t move on it, but they are taking proactive steps. The District is aware a letter will be coming.
Mr. Nichols stated the Finance Committee wants to be able to identify issues and make informed questions about where the numbers are coming from.
Ms. Dolan expressed concern over the adversarial attitude between the Town and school. Wachusett is not the only district in the state where the school budget takes up over 50% of town budgets. There will always be a battle, at the local and state-level. As a citizen, Ms. Dolan has seen the level of anger over the budget. The letter is a good start to get some change going forward.
Mr. Nichols stated the district is one of many budgets that the Finance Committee sees and there are many Town departments to be considered. There have been disagreements with departments in the past, as well. The school represents a large chunk of the budget. The Finance Committee would like to be able to work together with the district.
Mr. Nichols moved to support the letter to the Wachusett Regional School Committee with a change in request #1 (percentage) to be determined at a later date. Ms. Martens 2nd and expressed concerns about request #2 (line item budget), but the Committee agreed it could be left in until all Towns produce a line item worksheet. Motion passed unanimously.
Mr. Reed will respond back to Mr. Lukes with the comments from the Board of Selectmen and Finance Committee.
Information the Finance Committee would like to get to School Committee members
Mr. Ruchala expressed a desire to begin meeting with the School District sooner than previous years to review the budget. The Finance Committee has frequently asked for follow-up information from the District but not received a response until a week before Town meeting. Mr. Lavoie stated the letter to the School Committee should go out as soon as possible so a line item budget can be followed up on to determine percentage. He recommends getting the letter out before the October 15th meeting of the School Committee. Dr. McCall and Dan Deedy, Director of Business and Finance, have examples of the Quabbin budget they have started to work on.
There was discussion about whether the letter could be completed by October 15th. Mr. Reed shared concerns from Sheila Dibb, Board of Selectmen, about the lack of consensus on request #1 and the letter’s weakness regarding transparency and line item budget expectations. Mr. Reed will forward the comments to Mr. Lukes.
Mr. Lavoie recommends the Town establish a relationship with Dan Deedy, who replaced Joe Scanlan this summer. The Finance Committee could send an invitation to an upcoming meeting. Mr. Reed stated all district Town Administrators have regular meetings with Dr. McCall and Mr. Deedy.
Mr. Ruchala shared that he received an invitation to the District’s annual budget roundtable on November 8th.
Mr. McKinlay asked if they will still be scheduling building walkthroughs at the schools. Mr. Reed believes it would be a good idea. The walkthroughs should be scheduled through DPW to look at maintenance issues.
Mr. Lavoie informed the Committee that Dr. McCall is preparing to put together a report on adding full-day kindergarten and would ask for feedback on that. It is anticipated that might come into this budget season or before. Ms. Martens asked about the money the district is taking in from those paying for full-day kindergarten. Mr. Lavoie stated it makes sense for Rutland because of the five-town makeup – they currently get $6,000 from the state for half-day credit and would get $12,000 by moving to full-day. The initial investment of hiring teachers, etc. would pay for itself with the additional state funds for those students. For other towns, the equation is not as favorable.
Mr. Ruchala thanked Ms. Dolan and Mr. Lavoie for attending.
Discuss Upcoming Budget
Mr. Reed asked about the intent to put money that was used in the Spring back in Free Cash. The Warrant is closing on October 18th and there will be a budget article. According to Dan Haynes, Town Accountant, Free Cash should be certified by the 2nd or 3rd week of October.
No purchase requests have come in yet. Planning Board will have a lot of items between road acceptances and articles regarding marijuana bylaws. The Planning Board is holding a public hearing on October 23rd regarding marijuana. Mr. Reed has received a request from the Fire Chief for all cuts from the Spring to be restored. Police is also requesting payment for a cruiser lease. The Sergeants contract is coming up and will need $7,850 to fund. There was discussion of scheduling a Finance Committee meeting as soon as possible after the warrant closes.
Annual Budget – memos went out last year in late November to all departments and meetings between departments and the Town Administrator began in January. Mr. Reed expects to be serving as Interim Town Administrator until January. There is a 90-day search period for a new Town Administrator through a firm hired by the Board of Selectmen.
Ms. Martens asked about regionalizing police, fire, and other services. Mr. Reed doesn’t think towns would be motivated until it’s more of a money issue. Mr. Nichols stated regionalization has its benefits and its problems.
Mr. Ruchala stated studies were done in the past, but nothing transpired. There are generally concerns about smaller towns getting lost in the shuffle when regionalizing services. There was discussion about town versus county styles of government.
The regular budget process will continue as best as possible.
NEW BUSINESS
Mr. Ruchala announced that Finance Committee member Sheryl Vernon will be filing her resignation with the Town Clerk and Town Moderator. If someone were interested in joining the Committee, the Committee can vote for a new member to fill the seat until the next Town meeting. Mr. Ruchala will discuss with Randy Jordan, Town Moderator.
The upcoming Massachusetts Municipal Association Annual Meeting in January and the Association of Town Finance Committees Meeting on November 3rd at Devens Common were discussed.
Mr. McKinlay moved to adjourn the meeting. Mr. Nichols 2nd. Vote unanimous.
The meeting adjourned at 8:17 p.m.
Respectfully submitted,
____________________ Laura Paradise, Secretary
Approved: ___________
____________________ Thomas Ruchala, Chairman
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