Wellfleet Finance Committee
Minutes of Meeting of February 18, 2004
Library Meeting Room
Present: Berta Bruinooge, Chair; Arlene Kirsch, John Makely, Patricia Foley, Carl Caruso, Mac Hay, Sylvia Smith
Excused: Nancy Bone
Also present: Tim Smith, Town Administrator, Rex Peterson, Assistant Town Administrator, Town Department Heads
The meeting was called to order at 7:02 p.m. by Chair Berta Bruinooge, to whom the committee and audience sang "Happy Birthday."
Requests for Transfers from the Reserve Fund:
#04-07--This request for $3000 came to the FinCom from the District Department of Veterans' Services; the present balance in said appropriation (Budget #543) is $354.44. Veterans' Services stated that the money is requested for two needy veterans who are out of work because of the severe winter (a fisherman who is prevented by the ice from fishing and a painter who has exhausted inside work and cannot begin outside work). Arlene Kirsch moved and John Makely seconded that Finance Committee approve Request for Transfer #04-07 for $3000; the motion carried, 6-0.
#04-08--Rex Peterson, Assistant Town Administrator, requested the sum of $3,416.72 for computerization to cover the next two months' billings from Cape.com ($1300) and Penney's Computer Works ($6000); the requested sum, along with Budget #153 balance of $3,883, will cover the above expenses. Pat Foley asked if sufficient money had been budgeted for computerization in the FY2005 budget; Tim Smith noted that the appropriation had been doubled. Peterson will return to FinCom at the end of March to request a further amount; he plans, along with this request for transfer, to use money from the capital budget to cover this year's expenses. He informed the FinCom that next year the town will have its own DSL lines rather than using Cape.com, which will afford a savings; Steve Penney will install
firewalls for these lines (an expense included in the estimate provided with the transfer request). Carl Caruso moved approval of Request for Transfer #04-08, rounded up to $3500; John Makely seconded; the motion carried, 7-0.
Request from Town Accountant re: Snow Removal Budget: The Board considered a request from Marilyn Crary, Town Accountant, that it authorize deficit spending for the Snow Removal Budget (#423) for the remainder of the fiscal year; this budget as of February 11, 2004, was in deficit by $4,402.14. Arlene Kirsch moved, and Sylvia Smith seconded, that the FinCom allow deficit spending for the Snow Removal Budget; the motion carried, 7-0.
Chair Bruinooge reported that the balance left in the reserve fund is $11,860.
Finance Committee's Recommendations for FY2005 Operating and Capital Budgets. Chair Bruinooge noted that the present meeting satisfies the Charter requirement for an open meeting on FinCom budget recommendations. She distributed an update of FY05 Budget and Revenue Estimates to the committee and suggested that the members of the committee would each speak on the budget in turn, receiving questions from other members and the audience, and that audience members would be able to address the committee after all members had spoken.
Chair Bruinooge began by stating that of February 9, the Board of Selectmen had approved an Operating and Capital Budget which will require a $750,000 override. She noted that Wellfleet taxpayers had experienced a tax increase last year and that she did not feel they would approve this large an override, but that perhaps a smaller override would pass. She distributed her proposal for cuts to the operating and capital budgets, explaining her reasons for decreasing certain budget lines (briefly described below):
Operating Budget
Computerization--reduced $15,000, still would be $9,000 more than last year Shellfish Conservation-Propagation--reduced $3,500, ask Harbormaster's aid in hauling out
Fire--reduced $3,450 for small cut in equipment
DPW Forestry--reduced $3,000, no pruning of trees on Main Street this year
DPW Transfer Station--reduced $4,000, cuts repair and maintenance and gasoline and diesel
Human Services--reduced $7,550, blanket cut which allows Human Services Committee to make adjustments within its budget to within a $40,000 limit
Beach Program--reduced by $1,500, cuts out t-shirt program.
Bruinooge noted that, with one exception, the above departments did not level-fund.
Capital Budget
Shellfish: Boat Trailer--reduced $6,000, purchase another year, ask Harbormaster's assistance
Elementary School: Replace Intercom System, Replace Floor Coverings, Exterior Doors--reduced $40,000, repair, not replace, intercom system, exterior doors seem adequate, new floor coverings not necessary
Police: Bullet-proof vests--cuts the vests, budget reduced $12,000
DPW: Sander--reduced $12,000, sander only used 4 months/year
Custodial Vehicle--reduced $30,000, perhaps look for a government surplus vehicle
DPW Projects: Replace Library and Town Hall Carpets--reduced $32,000, neither carpet looks in need of replacement.
In addition to the above cuts, the Chair noted that she, in accordance with an earlier FinCom decision, would not recommend two new positions: Water Department employee ($50,000) and Firefighter/Paramedic ($62,500). The total reduction to the budget which these cuts would implement was $282,455.
Carl Caruso noted that the fire chief's reason for asking for the new position was to always have two firefighter-paramedics in every car. He asked if the Chair's Capital Budget list could be debt excluded; Tim Smith stated that these were not major capital items. Accountant Marilyn Crary noted that a capital exclusion may be made for capital equipment. Caruso asked the police chief about the request for new bullet-proof vests; Chief Rosenthal replied that these particular vests had failed in the field and that the Wellfleet officers wished to have them replaced. Arlene Kirsch stated that she had passed on information to the chief on applying for grant money for vests.
Arlene Kirsch stated that, given the transfer requests FinCom had received on the computer line, she did not think computerization an appropriate place to cut.
Mac Hay asked the options on the water department employee position; the Chair explained that an outside company comes in now and could continue to come in to do anything necessary for Wellfleet's current small system--she felt that the town was a year away from hiring someone for such a position and that the DPW has an employee who has the necessary training. Carl Caruso asked how the work would be done without the hiring of this employee. Tim Smith explained that once the SCADA system comes on line, it must be monitored every day. The town would either hire an employee for $50,000 or Smith would have to add $65,000 to the budget for contract services to pay Whitewater to come to Wellfleet daily.
John Makely made two points: budget messages should be prepared for the taxpayers explaining (1) the difference between charges for those items under our control and those outside of our control and (2) the proposed EMT position will cost the taxpayer $1 per month.
Arlene Kirsch then made her budget statement. She agreed with the Chair concerning the size of the override, feeling that taxpayers want spending to be held down and that the town needs to do so on those things over which it has control. She did not agree that the Computerization line should be cut but thought the cost of the custodial vehicle should be cut in half. She inquired what the #196 Consultancy line covered; on Smith's answer that this was for general consultancy (this year, the reorganization consultants, the church roof, Slade Associates), she stated that she would cut this line in half (to $5000). She also ascertained whether the salary line for the Building Inspector would still be accurate. (Answer: yes) A question about the
Overtime allocation in Budget #699 (Beach Program) determined that a clerical inaccuracy of $6000 existed; this was corrected and the budget reduced by $6000.
Sylvia Smith agreed with the preceding speakers and feared that even with these reductions the budget would not pass.
Carl Caruso stated that the Reserve Fund budget should be left as is and that, if computerization runs high, it should not take money from the Reserve Fund.
Patricia Foley stated that her reading of the local papers has shown her that area towns are cutting back on personnel to reduce their overrides.
John Makely agreed with the previous speakers.
Mac Hay felt that FinCom's approach should be to try to lessen the blow and look at what it really needed to reduce. He did not agree that the committee should not recommend the proposed water department employee.
The Chair concluded that the process of the override failing at the voting booth made it necessary to cut budgets to get an acceptable override or to present a balanced budget, adding that this is the second biggest override of all the Cape towns. She noted that the BOS can adjust this budget at any time before it goes to press; she then invited the audience to comment.
Ira Wood agreed that the BOS could go into the budget and adjust it. He added that Wellfleet had not had an override last year but instead had spent all free cash. Wood noted that the BOS appreciated FinCom's work on this budget.
Jan Plaue, for the School Committee, addressed the Elementary School's Capital Budget items. She stated that the intercom vitally needed replacement and would be the item the school would least wish to have cut, suggesting instead that cuts be made to the doors (do 2 instead of 4) and the carpeting (do half). Arlene Kirsch noted that Plaue's suggestions illustrated why she is loath to tell departments exactly where to cut.
Tim Smith stated that the general override must be presented to Town Meeting as necessary to keep "business as usual" going and pointed out that there is still the question as to how other items--Uncle Tim's Bridge, Lieutenant Island Bridge, the landfill capping, DPW equipment--are going to play out.
Helen Wilson asked if Smith had a final figure on the landfill capping; Smith stated that he did not, since the bids had just gone out last week. Wilson stated that she did not know how much all this would cost because she has seen no breakdown. She suggested that budget cutting should include some Recreation Department programs, feeling that it should pay for what it sponsors and that "other people step in and organize events if we don't fund them."
Arlene Kirsch stated that, in her role as a representative of FinCom, she had gotten a strong feeling that there were a great many people in town who used and valued the services provided by the Recreation Department. Victoria Pecoraro of the Recreation Committee stated that a number of their programs, such as the road races and some summer programs, do pay for themselves, and they are aware of the huge override and have been trying to find places to cut back.
Dale Donovan spoke to the prudence of Chair Bruinooge's suggested cuts but pointed out that things not done now would have to be done sometime and, even if the override were $750,000, it represented only $15 per month per taxpayer. He added that the town has put some things off for years, e.g., maintenance on Uncle Tim's Bridge, capping the dump, and that this information must be presented to the town. He reminded the Committee that people without the money to pay taxes are often most in need of the services that the town provides. He then asked what amount of override FinCom would approve.
Bruinooge warned that the 200 people who attend Town Meeting are not necessarily the ones who will, or will not, pass this budget; she felt that with such a large override specific cuts should be made.
Kirsch felt she could sell a $400,000-$500,000 override to people. She did not regard the budget history as putting off things and saw a need to take care of the town infrastructure, preferring that to a growth in services, i.e., new positions. Ira Wood noted that the case of eliminating a DPW worker for $50,000 in favor of a consultant for $65,00 represented a decreasing of services.
Dan Silverman noted that in the absence of items over which the town has no control, this budget was virtually level-funded and that FinCom may sell voters short by assuming they don't understand inflationary pressures. If FinCom feels that the override must be cut, he added, then those cuts should be made across the board; there is a need to present the override so that people recognize that no area is immune from reduction. He noted that the Town has been pennywise and pound-foolish in the infrastructure process, solving a problem for the present in the cheapest fashion, a process that has produced problems such as the police-fire station and the landfill.
In ensuing discussion, Chair Bruinooge stated that adding another firefighter was not level-servicing but raising services and that FinCom has consistently opposed increasing new positions. Chief Alan Hight explained that although the number of trained firefighters has risen, his call firefighting staff has steadily decreased. Bruinooge, while agreeing that this was a problem, stated that she did not want people forced out of town by high tax bills.
Rex Peterson protested the proposal to cut $15,000 from the computerization line, pointing out that he would be back for transfers from the reserve fund next year, since the need for computer services will continue.
Discussion concluded with Chair Bruinooge noting that the FinCom must submit budget recommendations to the BOS by March 1. The committee then reviewed each section of the Operating and Capital Budgets, making the following changes; all budgets not noted below were approved without change:
Operating Budget:
#180 Shellfish Conservation/Propagation: Kirsch moved, Foley seconded, that Budget #180 be level-funded at $31,735. Carried, 7-0.
#196 Consultancy: Foley moved, Kirsch seconded, that Budget #196 be reduced to $5000. Carried, 4-2-1.
#220 Fire: Bruinooge moved, Caruso seconded, to reduce Capital Outlay of Budget #220 by $3405 to a total of $9000. Carried, 4-3.
#294 DPW Forestry: Bruinooge moved, Kirsch seconded, to reduce Budget #294 to $1000. Carried 5-1-1.
#433 DPW Transfer Station: Bruinooge moved, Makely seconded, to reduce Budget #433 by $4000 to a total of $155,090. Carried 5-2.
#520 Human Services: Bruinooge moved, Caruso seconded, to reduce Budget #520 down to $40,000. Carried, 7-0.
#699 Beach Program: Bruinooge moved, Caruso seconded, to reduce the line for t-shirts by $1500 and to correct the overtime to $3000. Carried, 5-2.
Total eliminated from Operating Budget: $33,955
Capital Outlay:
Shellfish Department: Bruinooge moved, Makely seconded, to remove the Boat Trailer for $6000. Carried 6-1.
Elementary School: Bruinooge moved, Foley seconded, to (1) approve Technology at $10,000, (2) leave the Intercom in the Budget, (3) approve Floor Coverings at $5000, (4) eliminate ADA-Classroom Door Closures ($5000), and approve exterior doors at $5000, for a bottom line of $40,000. Carried, 7-0.
Police: Bruinooge moved, Hay seconded, to eliminate bullet-proof vests ($12,000). Carried, 7-0.
DPW Equipment: Bruinooge moved, Foley seconded, to eliminate Sander ($12,000). Carried, 4-3.
Bruinooge moved, Smith seconded, to eliminate Custodial Vehicle. Defeated, 3-4.
Caruso moved, Kirsch seconded, to approve Custodial Vehicle at $15,000. Carried, 4-3.
DPW Projects: Bruinooge moved, Smith seconded, to eliminate library carpet at zero. Carried 4-2-1. Bruinooge moved, Smith seconded, to eliminate Town Hall carpet at zero. Carried, 4-3.
Total eliminated from Capital Budget: $97,000
Arlene Kirsch moved that Finance Committee approve the Operating Budget at $10,667,979 and the Capital Budget at $1,392,989. Carl Caruso seconded; the motion carried, 7-0.
Approval of Minutes of 1-28-04 and 2-2-04. Arlene Kirsch moved to approve the minutes of 1-28-04 as amended; Carl Caruso seconded; the motion carried, 6-0-1 (Foley abstaining). Sylvia Smith moved to approve the joint minutes of 2-2-04 as amended; Mac Hay seconded; the motion carried, 6-0-1 (Foley abstaining).
Review of Mail. Chair Bruinooge reviewed the memo sent to FinCom from Chair of the Board of Selectmen Dale Donovan (2-13-04), noting her difference of opinion from that of Town Counsel in the matter of the use of water system funding. She stated that Donovan was correct about the BOS meeting their Charter-mandated responsibility for issuing a budget message with the one-line message on page two of the 12-15-03 Town Administrator's Budget Message and Proposed Budget for FY2005; she added, however, that she would have hoped for a more "fleshed-out" message. Donovan, referring to the issue of the water system funding, stated that when something is said to go "beyond the scope of the warrant article," the implication is that something illegal has been done; he therefore had
submitted the written opinion of Town Counsel along with the memo.
Change of FinCom Meeting Night. Because of the impossibility of getting secretarial help on Wednesday evenings, the members of FinCom decided to hold their monthly meetings on the 4th Thursday of the month at 7:00 p.m., beginning in May. They also agreed to change a previously scheduled Wednesday, April 21 meeting to Thursday, April 22.
Other Business.
Chair Bruinooge distributed copies of a short article on the Wellfleet budget from the 2-13-04 Cape Codder; comment was made on inaccuracies in the article, perhaps due to misquoting.
Carl Caruso spoke briefly of his petition for a warrant article establishing a separate Board of Water Commissioners, noting that he would be glad for signatures from the committee members.
Sylvia Smith moved and Patricia Foley seconded adjournment; the meeting closed at 9:55 p.m.
___________________________ ______________________ Frances J. Castillo, Committee Secretary Berta Bruinooge, Chair
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