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HomeMy WebLinkAboutBudget Comm. 02/05/2020Budget Subcommittee Meeting Minutes February 5, 2020 RECEI�{VSED�� rr Present: Jenn Walsh; Lynn Cavicchi; Frank Delvecchio; Michael A. Trowbridge, Brian Eagle;` n'd'Walt�rlWflk Also Present: Barry LaCasse, Assistant Town Manager/Finance Director; Teresa NNtj ftg; �riAera E35 Edward Donaghue, Assistant Superintendent for Finance & Operations and Kevin Dumas, Town Manager ELD ^!I` SETTS 1. Open Meeting Mr. Wilk called the meeting to order at 5:33PM. 2. Introduce Mr. Barry LaCasse, Assistant Town Manager/Finance Director Mr. Dumas introduced Mr. Barry LaCasse who began his employment Monday as the Assistant Town Manager/Finance Director. Mr. Dumas stated that he was getting to know staff and has been working on the budget all week. The Committee went around the table and introduced themselves. 3. Approve December 19, 2019 Meeting Minutes This agenda item was skipped. 4. Review of FY21 Budget Status Mr. Dumas updated the Board stating at the beginning of the week the budget was $873,000 away from being balanced however, the regional assessment from Southeaster Regional came back with a 24.76% increase so the budget was now $1,077,099.76 away from being balanced. Mr. Edward Donoghue said the formula has changed and it is unclear how this number was reached and he would be following up to get further information. Superintendent Murphy also stated there may be incorrect information on the actual number of students at Southeastern Regional. Mr. Dumas then referred the committee to page two of a handout which he went through to explain some additional places he found reductions and shifted some expenses to CIP. Mr. Eagle asked if it was bad procedure to add technology for the schools to CIP because it was not a one-time fixed cost. Ms. Cavicchi stated it was really part of the operating budget it's a reoccurring operating cost. Mr. Wilk stated it should always be presented to CIP if it's an expense that will stretch over several years. Mr. Eagle stated that it needs to be consistent to make the budget process easier. The Committee discussed this and the general consensus was that it was helpful to have this in CIP because it offers flexibility in where that expense can be placed. Mr. Eagle asked about the vehicle maintenance person that was being removed. Mr. Dumas stated that the position was budgeted for a quarter of the year in FY 20, but that position would not be filled and has also been removed from the FY21 budget. He added that there would be no new positions on Town side in FY21. Ms. Cavichhi asked what was being bumped off the CIP list if other items were being taken out of the operating budget and pushed to CIP. Mr. Dumas answered that he removed the fence and asphalt at Town Hall and no asbestos removal for MEMA. He confirmed nothing essential was taken out of CIP. He added that him and Mr. Matt Violette, Town Accountant will be reviewing gift fund accounts and turn backs of Town Meeting Article to find additional funding to balance the budget. Mr. Wilk asked when the budget numbers for healthcare were anticipated. Mr. Dumas answered that it is expected in another week or two. He has a five percent spacer currently but the Treasurer used four percent and he believed the number may come in under four percent. Mr. Dumas also added that there is $130,000 coming back to the Town from SMHG and that funding will be placed into the established stabilization fund. He is looking at the retiree population that is pre — sixty five years of age who are not on Medicare yet and are on full active plans with the Town to see if there are options for reducing that expense. Mr. Dumas also stated that the State 911 just adopted new regulations and rules and Towns in a regional dispatch can take a credit on their assessment. The Town would need to create a special stabilization fund to reserve the money and assess it back over a period of time. He added that ideally the fund would run out at the same time other communities join and that would help reduce the assessment going forward. There were no motions made. 5. Special Education Stabilization Fund Ms. Cavicchi stated that the special education stabilization fund account had been set up two years ago and there has been no money funded into the account. Mr. Wilk stated that $25,000 to $50,000 should be added to start, noting that this helps create a shock absorber for years that the special education expenses are larger than expected. Mr. Trowbridge stated that it should be no more than $25,000 based on current deficit. Superintendent Murphy stated the formula for Medicaid was changing and there was hope that additional dollars could come from that to fund this account. 6. Budget Steps Moving Forward The next Budget Subcommittee was scheduled for Wednesday, February 27, 2020 at 613M. Mr. Dumas stated he would also send weekly updates on February 141h and 21" to the Committee to keep everyone up to date on changes made to the budget. Mr. Dumas stated he would be looking at the following items closely: SEMRECC Assessment, health insurance for those retirees that are pre — sixty five years of age, gift accounts and change to mitigation. 7. Any Items Not Known 48 hours of meeting There were no items. 8. Adjourn Motion: To adjourn the February 5, 2020 meeting at 6:2513M. (Eagle/Trowbridge) Passes 6:0 Signat re Minutes prepared by Carrie Champagne '3 �1'1\1 a Date