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HomeMy WebLinkAboutmin of fin com 09042008 Town of Mansfield Finance Committee Workshop Minutes of September 4,2008 :~(:(~ t \/E[) . ",'. f"1Ff10E . ._. IG - I ;\ 10: I b Attending: James Lazzara Charlene Lavin Andres Gazzolo Karl Chambers Jack Goldberg ~ .4 f -..- "1""" ~... Motion: To Open at 7:30p.m. (Lavin - Lazzara) 5 - 0 Passes Mr. Gazzolo introduced the Finance Committee and explained that the Finance Committee invited the Board of Selectmen and the School Committee to attend this workshop to discuss what the Finance Committee does and how it comes to its recommendations. Five Year Forecast Mr. Gazzolo explained that the schools and the town both provided a list of expenses to the Finance Committee who then trended the expenses. Mr. Gazz% expressed that the town does not have the same flexibility that it used to; the reserves are no longer there, the town is set to spend more than it has available and currently they do not have the accountability for how they spend their funds. Mr. Gazzolo showed three charts to the group to show the negative trend that the town is working towards currently; the charts highlighted the expenses, revenues and the deficit per fiscal year. The charts are based on an increase of 4.77% which has been similar to the past several years' increases. Quarterly Reviews Mr. Gazzolo explained that once the five year forecast is in place the Finance Committee would like to conduct quarterly reviews of the major accounts that are not on target for the annual budget, either above or below. By looking at the accounts on a quarterly basis they are able to identify potentially problematic accounts. Salary Negotiations Mr. Gazzolo explained that the previous Board of Selectmen received a tool from the Finance Committee to assist them with salary negotiations. This tool/inked the money that the town has for salary negotiations so that there is guidance when negotiating. Mr. Goldberg explained that this will show the outcome of the negotiation before they have committed to anything. Budget Process Mr. Gazzolo briefly explained the way that the Finance Committee handles the budget process. Audit Committee Mr. Goldberg explained the history of Audit Committees and linked them between private corporations and towns. He explained that the Audit Committee ensures that the town would be adhering to policies, which is something that creditors look favorably upon. The Audit Committee would also look into instituting some actions that would at improving the negative outlook. Mr. Goldberg went through the packet that had been distributed prior to the meeting which explains the purpose of an Audit Committee. He also explains that the town manager appoints the auditor and the committee would make recommendations to the town manager about who this should be. The committee would also look to be sure that the decisions of the town are sound and jf so if they could possibly benefit other town departments. Mr. Goldberg explained that the benefits of this committee would be to ensure that the town is meeting their obligations to the citizens of the town. - It was explained that as long as the current charter remains in effect the Audit Committee would only be able to make recommendations and that if the town wanted them to have the authority to make decisions the charter would need to be changed. The formation of a formal committee would be that they are visible within the town; their meetings would be televised and there would be minutes taken. The Audit Committee would be responsible for keeping a strong moral culture within the town and to identify possible fraudulent activities. The members would work with the auditors and since they would not be the ones being audited they would be impartial. The committee would work to assist in adjusting processes when an error is identified and they would work to ensure that the same error does not happen again. Mr. Goldberg went through the differences between an Audit Committee and the Finance Committee. He also went on to explain the member model that he found in another town. He suggested that the committee have five members made up of one representative from each the Board of Selectmen, the School Committee and the Finance Committee. Additionally, there would be two members from the community at large that have no other connection to the town government system; most likely these two representatives would be CPAs. Some of the attendants suggested that all of the committee members be completely independent of other areas of the town government or that two people be appointed by the Board of Selectmen and two people by the School Committee. It was decided that there should be a follow-up meeting with the Finance Committee, Board of Selectmen and School Committee to discuss the make-up of the committee. Debt Profile and Outside Reports Mr. Gazzolo briefly stated that the Finance Committee monitors the town's debt and this gives them the ability to determine the financial health of the town. Mr. Gazzolo also mentioned that with the outside reports the town needs to plan ahead. Preparation for Town Meeting Mr. Lazzara referred to a handout that had been distributed which shows the Finance Committee prepares for town meeting and where they get their information. Mr. Dentino questioned whether the Finance Committee will have subcommittees the way that they did last year, and if so, who will be representing what areas. Mr. Gazzolo stated that it would be up to the Board of Selectmen to determine whether the subcommittees should be put into place for this fiscal year. Ms. Levine suggested that the Finance Committee look at the CIP budget prior to the scheduled time in March. Mr. Lazzara said that that shouldn't be a problem, but that there isn't really a capital budget for this year. Issues Preparedness and Advisors to the Town and Board of Selectmen Mr. Gazzolo briefly stated that the Finance Committee is attempting to be proactive with handling issues. Information Flow Mr. Gazzolo explained that if either the School Committee or the Board of Selectmen anticipate having problems down the road they should notify the Finance Committee as soon as possible, so they are able to work together on a solution; this is especially important since the town does not have the same financial flexibility that they used to have. Outstanding Issues Mr. Gazzolo stated that the open issues are the five year forecast, the Audit Committee, target goals, subcommittees and CIP. Mr. Gazzolo stated that the Finance Committee will discuss the subcommittees at the September 11, 2008 Finance Committee Meeting. Mr. Gazzolo set a Finance Committee meeting for October 2, 2008 at 7:00 to discuss the formation of an Audit Committee. Both the Board of Selectmen and School Committee are invited to attend this meeting. ,. Motion: To Close at 9:00p.m. (Chambers - Lazzara) 5 - 0 Passes CXbSfu.7Y14f!S0 Signat re of Clerk /u . E:iJ. O'Y Date of Approval ,.