Loading...
HomeMy WebLinkAboutmin of fin com 04102008 Town of Mansfield Finance Committee Minutes of April 10, 2008 HECE\VEO ',1 r\ FRKS OFf \eE I, ~....- -' lullS H~l -q A F 5b Attending: James Lazzara Charlene Lavin Jess Aptowitz Jack Goldberg Andres Gazzolo r~ t 'IC -:'';.:'1 0 [1 {, ~;sg(:i..:U-'- TTS Motion: To Open at 7:00p.m. ( Aptowitz - Lazzara) 5 - 0 Passes Board of Selectmen, School Committee and Finance Committee Preparation Mr. Gazzolo began the meeting with a review of the proposal for the Board of Selectmen, School Committee, and Finance Committee meeting. He wanted to point out that the purpose of the meeting was to stay within the issue and not stray. The town is in need of a balanced budget and is currently $900,000 in the deficit. It is proposed that the municipal side cut $150,000 from their budget and that the schools cut $300,000 from their proposed budget. The Finance Committee came up with this proposal based on the current numbers. If the schools and municipals are able to cut the $450,000 total between their two budgets than the Finance Committee will recommend that the town use $450,000 from the stabilization fund. Ms. Lavin questioned why the Finance Committee would recommend using stabilization now if it will be needed later. Mr. Gazzolo mentioned that if the town does not use the budget that they have now they may lose it for next year's budget. Mr. Gazzolo stated that as long as the Finance Committee agrees on the principle behind the budget than they should be OK to present this budget. Mr. Aptowitz said that the Finance Committee should use this presentation to clarify that there's not a contract in the town of Mansfield that is signed without a discussion of the Finance Committee. Ms. Lavin wanted to ensure that during the presentation emphasis was put on the need for strict guidance from the Finance Committee. Mr. Gazzolo brought up the $300,000 remaining in the capital fund for discussion and using this for a bond. Ms. Lavin stated that the group needed to talk about what they want for CIP and then make an appropriate proposal. She also stated that the fire department will likely need $1.2 million. Mr. Aptowitz said that citizens have brought up the point that every year there's a budget crisis and then the money is always found somewhere. He said that the Finance Committee should be sure to point out that the School Committee and the Board of Selectmen need to keep track of these things throughout the year and not just look at them during budget time. Mr. Gazzolo pointed out the Finance Committee is used as an advisory board; they do not make decisions as to what the town does with their money. The Finance Committee's responsible for proposing the budget, the indexes, the matrixes and the goals but that the town makes the ultimate decision. Mr. Goldberg suggested that the Finance Committee receive justification on all increases of more than 8%. Mr. Lazzara said that the salary line item has been too high and the Finance Committee has been saying that for several years. Ms. Lavin, Mr. Aptowitz and Mr. Goldberg all agreed that the town should roll back the compensation package before anyone is laid off. Mr. Aptowitz pointed out the Finance Committee is under pressure from the community and needs to be responsive to the citizens in town. Mr. Goldberg pointed out that by using indexing is this will set the increases based on revenue and not allow the town to overspend on salary. Mr. Aptowitz wanted to make it clear during the meeting that the proposal that they were preparing is a jumping off point and that it is better to get a head start rather than try and fix the budget the day before the town meeting. Ms. Lavin suggested that the town should be cutting more than $150,000 from the municipal side and pushing it towards the schools. Mr. Gazzolo suggested that they use this presentation and then do a line by line salary examination at a later date. Mr. Aptowitz pointed out that the citizens in town would like an explanation on why the Finance Committee is proposing the budget that they are. Mr. Goldberg suggested that the Finance Committee would not ultimately agree on one answer, that there would need to be three or four things that will need to change and most likely the Finance Committee will need to compromise on these items. He suggested that the Finance Committee clarify that if there aren't significant changes for next year they will not approve a budget similar to this. Mr. Goldberg pointed out that as a committee they should not be divided and that they need to go into the group meeting in consensus and that the vote must include action on someone else's part. Vote Vote to approve the Finance Committee proposal dated April 16 for fiscal year 2009 and it is predicated upon the adoption of a specific plan and actions listed to solve the problem. The two boards and the Finance Committee will get together to formulate an action plan during the next 21 dates to develop specific actions to achieve the listed goals. 5 - 0 Passes Mr. Goldberg said that he would like to be sure that the Board of Selectmen, the School Committee and Mr. D'Agostino understand that the Finance Committee is willing to review the budget and assist them. Finance Committee, Board of Selectmen and School Committee Joint Meeting The meeting began by introducing the Finance Committee and stating that they have a proposal for a budget for the town of Mansfield. Mr. Gazzolo began with reading the proposal and asked that all questions be held until the end. He began with speaking about a recession and the possible inflationary effects that this will have on the town; he said the Finance Committee believes that there will be further deterioration before there is improvement. He also stated that the town is in a deficit position, but at the same time must provide temporary relief to the schools. He said that he would like the committee and the board to consider the proposal in two parts one piece being finance and the other being commitment. Mr. Gazzolo stated that the town should be aggressive on how to handle budget goals and that they must provide what it should be and then be able to check in the future. He stated that the Finance Committee will provide their recommendation but that ultimately it is up to the Board of Selectmen and the School Committee to determine their budgets. He stated that the revenue increases are lower and that the nondiscretionary expenses are 86% over budget. He also included that although there is currently more in the stabilization fund then there has been in prior years it is not to the recommended level. Currently, the town of Mansfield is in a deficit for fiscal year 2009 of $900,000. The Finance Committee recommends budget cuts of $150,000 on the municipal side and $300,000 on the school's side. He stated that if the schools and municipal sides are able to remove the $450,000 from their budget that the Finance Committee would consider a one time revenue from the stabilization fund of $450,000; this would correct the $900,000 deficit. Ms. Lavin read the vote of the Finance Committee that is stated above. After doing so, she included that there need to be more specific details on how to deal with this. Mr. Goldberg commented on how the Finance Committee had just concluded a very spirited meeting; and that there was some disparity in the view on how heavy-handed the Finance Committee should be in presenting this proposal. He stated that without linking to the action plan the Finance Committee would be unable to support it. The town must work towards finding a solution to move them forward. He said that oftentimes when it comes down to it the town is able to balance the budget and then ignores it and it repeats the same cycle the following year; he said that the Finance Committee does not want to allow that to happen again. Mr. Gazzolo stated that with the current timing issue with the teachers that the Finance Committee did not want to wait any longer in giving their proposal. Ms. Hodges stated that at the last School Committee meeting there was a deficit of $1,056,000. Already the School Committee was able to take another $250,000 from their budget and it seemed reasonable that they would be able to make up the difference to the $300,000. She stated that the School Committee is making an effort with the teachers in bargaining; she stated that there are several legal implications that go along with this. Mr. Gazzolo stressed that these items need to be worked out within the next twenty-one days. Mr. McCarter stated that going forward teacher salary negotiations should be subject to the Finance Committee's proposed index. Ms. Lavin agreed with this statement and asked how is it possible to bargain if you don't have the resources to support the increases. Mr. Greenburg said that the past contract negotiations have not been in line with other communities. Mr. Delvecio agreed that Mansfield has to stay competitive with the surrounding communities or they are going to lose good employees to other towns. Mr. Gazzolo did not disagree, however, he did stress that Mansfield needs to be sure to live within their means, and that they can't keep people if they are not able to afford to pay them. Mr. Dentino pointed out that Mansfield is not the only town in a deficit; all of the surrounding towns are in similar positions. Mr. Amoruso agreed, but said that if Mansfield gains a reputation for laying off teachers every year it will not be a desirable place to work and that it will make people worry about job security. Mr. Gazzolo suggested that Mansfield look at nontraditional revenue sources for the current budget and that it may take some creativity to make the budget work. Mr. Vozella applauded the Finance Committee's efforts and agreed that everyone must work together towards the same objectives; he also said that he thinks that they can work with the revenue they have to make the current budget work. Mr. Vozella also pointed out that the School Committee is running the department, not the Finance Committee and that while they must work together the School Committee should not be told how to run their department by the Finance Committee. Mr. Gazzolo responded that the Finance Committee does not have the power to place restrictions; they are there to make advisements and are willing to assist the School Committee in their efforts. Mr. Vozella agreed that he believes that the Finance Committee and the School Committee have the same long term goals and that they should be able to work towards those goals together. Mr. D'Agostino brought up some of the municipal issues and said that often when money is taken out of a section of the budget it is not worked back into the budget for future years. He is concerned that the town needs fire trucks and that they will not be given the budget needed to purchase them. Mr. Gazzolo said that the town has $300,000 left to use towards a bond; and that most likely the fire trucks would be included in that bond. Ms. Baldwin expressed the fire chiefs concern that the town will need to do an emergency purchase for a vehicle and that it won't get the town what they need. Ms. Lavin said that the Finance Committee recognizes the necessities and is not ignoring that the town is in need of fire trucks. Mr. Amoruso brought up the concern over pink slips and stressed that the town does not have much time before they have to give out pink slips, that it is only a matter of weeks. He is concerned that many people will take these notices seriously and will line up positions in other districts. Mr. Vozella stated that the next two years will be the most challenging budget wise; that it will take some effort to pull together the best plan for going forward. Mr. Gazzolo said that he believes that if everyone works together they will be able to control the budget and work out the best plan. He suggested that the committees work together to find a date to reconvene. Mr. Dentino said that he feels that the town will need to find a band-aid to the budget problems for the next two years and that it should be very challenging. He did not agree with the Finance Committee's recommendation to take money from stabilization; he said that the money can be found elsewhere. The town will not be able to use stabilization on an ongoing basis and they might as well find a new solution now since they will be faced with the same problem in years to come. Mr. Gazzolo said that using money from stabilization is not a permanent fix and that the town will need to work to develop a five year plan; but that the town must focus on the contracts for this year right now. Mr. Gazzolo brought up the possibility of an override and said that the town needs to think seriously about this before using this option; this will create a permanent tax on the town; using money from stabilization will eliminate the need for an override, at least for now. Mr. McCarther supported using funds from stabilization as a short term solution; he agreed that for a long term solution they will need to find something else. Mr. Amoruso brought up that in the past the municipal budget has been cut back to allow more funds to go to the schools, he is not inclined to go back to that approach; the municipal budget is already operating on less than they should be, they cannot be cut anymore. Ms. Hodges said that the town needs to look to the teachers to bridge the gap in the budget; there have already been a number of other changes made to the schools to assist the budget. She stated that the high school has had a schedule change in addition to other changes; she feels that the schools have recognized the need to change and have done everything that they can. Mr. Gazzolo brought up the fact that everyone will need to make compromises and that no one is going to be 100% satisfied. Mr. Amoruso agreed and said that the town needs to learn from their past mistakes. The indexing should help; the salary increases will flux with the indexing which will allow the town to better control the budget for future years. Ms. Baldwin pointed out that even when times are good and the town is bringing in good revenue the committees will still be torn on what to do; they won't always be able to do large increases for the teachers, there will always be capital improvements that need to be done. By not putting all of the money into salaries when the times are good it will allow for the town to save in stabilization for when times are tougher and the town needs to apply for a bond. Mr. D'Agostino agreed and said that the town needs to keep funds in stabilization or they will not be able to keep the current bond rate. It was determined that the committees would reconvene in the near future to keep working on these issues and work towards a budget plan for the future. Motion: To Close at 9:20p.m. (Lazzara - Goldberg) 5 - asses