MINUTES
BOARD OF FINANCE
APRIL 17, 2007
A REGULAR MEETING of the Board of Finance was held on Tuesday, April 17, 2007 in the Council Chambers.
Those in attendance included Mayor Ryan J. Bingham, members of the Board of Finance Daniel Farley, Bruce Cornish, Mark Bushka, James Nichol, Thomas Scoville, and James Zeller, Comptroller Alice Proulx, and Director of Business Services Nancy Haynes. Corp. Counsel Ernestine Yuille Weaver was absent.
Mayor Bingham called the meeting to order at 5:00 p.m.
MINUTES #025
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to accept the minutes of the regular meeting held March 20, 2007.
OPEN TO THE PUBLIC #035
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to open the meeting to the public. There was no public participation.
INSURANCE FUNDING #050
On a motion by Mr. Farley, seconded by Mr. Cornish, a discussion took place in regard to reducing the city’s final payment into the Internal Service Fund and using those funds to offset some of the Board of Education’s deficits in their out of district costs.
Comptroller Alice Proulx explained that the city may be able to offset some of the deficits the Board of Education is experiencing with their out of district costs by reducing the city’s final payment into the Internal Service Fund.
In reviewing the health insurance for 2007 and 2008, Ms. Proulx said she looked at the information she had for 2006 and 2007 and realized that, when the city received the final renewal from the Anthem Insurance Company for this 06-07 budget year, it was less than what had been budgeted because we didn’t have the final numbers when the mill rate was set.
Ms. Proulx further explained that she checks the balance in the Internal Service Fund at the end of the year, projects what the claims will be, and sets
it up so that we are comfortable at 125% of claims, plus whatever network access and retention fees we have, and the remaining surplus is applied to the mill rate.
Ms. Haynes said it was her understanding that claims were trending below the amount of the final renewal payment; therefore, it will not negatively impact the Internal Service Fund. The Board of Education claims are also running below what was budgeted.
Mr. Farley pointed out that the Board of Finance recently voted to apply any funds coming back to the city from the state in the form of excess cost revenues to the Board of Education. He asked if the Board of Finance should re-consider this action if they were now to vote on what was being proposed.
Ms. Proulx indicated that they still don’t know the final figure on the revenue amount that they will be modifying the Board of Education’s budget by.
Ms. Haynes noted that they still don’t have the final figures from the state. Their last notification said they could expect 94% reimbursement from their costs; however, they will still face a $122,000.00 deficit, which they have taken steps to address. As of last week, they were back up to a $55,000.00 deficit after having taken care of the initial deficit and applying the funds that will come from the state excess cost. If they were to receive 94% reimbursement, they still find themselves with a deficit of $65,000.00.
Mayor Bingham noted that anything over and above what they need will revert back to the general fund.
Ms. Proulx said she could modify the revenue or their budget by just the difference that the Board of Education will need rather than all of the revenue.
Ms. Haynes agreed.
Mr. Zeller asked Ms. Proulx if the trending of 06-07 was running the same in 07-08 and if there was a good chance of seeing that same kind of reduction.
Ms. Proulx indicated that the Health Insurance budget has not been finalized, but there should be an impact.
Mr. Cornish said he was in favor of making this adjustment. However, he was conservative about what that means in terms of the $500,000.00 the Board of Finance has already committed to the Board of Education. He hoped the Board of Education will continue their savings plan, and at the same time try to restore some of the cuts which may have hit the kids the hardest.
Mr. Cornish agreed with Mayor Bingham that anything we don’t spend should be rolled into next year to help offset what’s going to be another very large budget.
Ms. Haynes said that was her intention as well, and assured the board that their cost saving measures will continue to take place.
MOTION #395
Mr. Cornish made a motion to authorize the reduction in payment required from the Board of Education to the Internal Service Fund in the amount of $356,704.62 and that the Board of Finance’s previous approval of additional release of revenue from the excess cost grant be limited to the remaining amount of the Board of Education’s deficiency. Mr. Bushka seconded the motion. Unanimous.
BUDGET TRANSFERS #455
On a motion by Mr. Farley, seconded by Mr. Bushka, the board voted unanimously to accept the Council’s request to authorize the Budget Transfers from 1/1/07 through 3/31/07.
Mr. Bushka asked Ms. Proulx if she could foresee any large deficits which they will need to cover during the final three months of this year’s budget.
Ms. Proulx indicated that there will be a shortfall in the Police Department Overtime Line Item, but there should be enough funds in the Regular Wage Line Item to cover it. Beyond that, she didn’t foresee any large overdrafts anywhere that they may have a problem with.
RESCIND VOTE #500
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to rescind the Board of Finance’s vote of 3/20/2007 to “Use UP TO $21,000.00 from Contingency to purchase bullet proof vests for the Police Department, which will be reimbursed by the federal government”, contingent upon the Council’s vote to rescind their motion when they meet again on 4/23/07. (The matter was tabled at the Council’s 4/16/2007 meeting because the two members who made and seconded the motion were absent.)
SECTION B #650
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to consider business in Section B.
USE CAPITAL RESERVE FUNDS: HIRE CONSULTANT #675
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to accept the Board of Safety’s request to authorize the use of $5,000.00 from Capital Reserve (in addition to the $40,000.00 already approved) to hire a communication consultant and cover the cost of the preliminary project, contingent upon the Council’s approval on 4/23/07.
BUS: MAYOR & MEMBERS #760
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to consider business presented by Mayor Bingham and members of the Board of Finance.
Mayor Bingham and members of the Board of Finance welcomed Thomas Scoville as a new member to their board.
Mr. Cornish said he assumed the board will approve the budget and set the mill rate some time prior to obtaining the state’s final numbers.
Mayor Bingham said the Governor’s Office has suggested that municipalities take the increase from 2006-2007 and apply the same percentage increase to 2007-2008.
Mr. Farley inquired about the unexpended funds of $20,000.00 in the current budget for fire code in City Hall.
Mayor Bingham stated that the board may be asked to encumber those funds to move forward with the renovations of City Hall, possibly to pay for an architect to do another study.
Mr. Farley inquired about funds that had not been expended under the Landfill budget.
Ms. Proulx stated that Mr. Rollett will more than likely encumber any funds that are not expended in this year’s budget because we have a 30 year plan in place to take care of the landfill. She noted that bills don’t always come in at the same time during the fiscal year.
Mr. Farley also noted that the Street Department’s Capital Outlay still had a significant amount of funds available.
Ms. Proulx said although she was unfamiliar with Mr. Lizotte’s schedule for road maintenance, she believed most of the funds will be expended in the spring.
Mr. Zeller said they will have a significant consideration when they look at the Board of Education’s estimated cost sharing of $20.3 million this year as opposed to last year’s cost sharing of $23.6 million.
Mayor Bingham thanked Mr. Cornish for being involved on the ground level with the Board of Education’s budget. He urged the board to obtain answers to any of their questions from either the city side or the Board of Education side of the budget prior to finalizing the budget, and to think about the impact the budget will have on the public.
ADJOURNMENT #1370
On a motion by Mr. Cornish, seconded by Mr. Bushka, the board voted unanimously to adjourn at 5:40 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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