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HomeMy WebLinkAboutmin of fin com 10232008 Town of Mansfield Finance Committee Meeting Minutes of October 23, 2008 ',r-I' If-n L:.iVr:U ...., ,n nr... . ; ;-, . ,,.. ,"- f C t:" .. ,. v, I.. Attending: James Lazzara Greg Arnold Andres Gazzolo Jack Goldberg Tommy Ratliff Charlene Lavin Zl1r::J Villi 18 /\ 8: [ll Motion: To Open at 7:30p.m. (Lazzara - Arnold) 5 - 0 Passes Consideration of Quarterly Review Mr. Hart, the new Town Accountant, was introduced to the Finance Committee. Mr. Hart distributed the Quarterly Review, which indicates all expense lines that are overspent by $1,000 or more or any project to be overspent based upon current expenditures greater than 25% of the total line item budget. Mr. Gazzolo thanked Mr. Hart for the Quarterly Review and suggested that future Reviews could be streamlined to include only those items that will likely be issues at the end of the budget cycle and require attention of the Finance Committee. For example, seasonal items that have surpassed the 25% threshold but are unlikely to be an issue at the end of the fiscal year do not need to be included. Mr. Dentino suggested that when any budget item hits 100% during the fiscal year that it should be red- flagged. Mr. Hart indicated that this would be part of his standard operating procedure. The Committee will rely upon Mr. Hart to flag the items not requiring the Committee's attention and to work on detailed solutions for these items. Mr. Gazzolo also indicated the need to review the 5 Year Forecast for Capital Expenditures. Ms. Lavin confirmed that this will occur on Monday, November 3. Mr. Hart expressed his support for the Quarterly Review process and his desire to work with the Finance Committee. He requested that he receive the minutes of the Finance Committee Meetings so that he could follow the Committee's work. Town Meeting on November 18 Mr. Gazzolo reported that the Board of Selectmen had called a Town Meeting for November 18. There are five articles on the Warrant, and Mr. Gazzolo will bring the warrant to the Finance Committee Meeting next week. Economic Overview Mr. Gazzolo explained that the Finance Committee's current 5 Year Forecast for Revenues is likely optimistic and should be reviewed. The likely negative growth in the economy through the end of the year will impact federal and state revenues and will eventually impact municipalities. Mr. Gazzolo suggested that the committee prepare several scenarios with the Town's revenue from the state adjusted down. This would include scenarios for the current year as well as for future years. Mr. Goldberg emphasized that we must have the attitude that just because there is money in a budget line this does not mean that the funds must be entirely spent. Mr. Gazzolo expressed his belief that we will have a major shortfall in future years. Mr. Gazzolo announced that the Finance Committee will have 10 minutes at the next Selectmen's Meeting on October 29. The Finance Committee will emphasize that any increase in the budget now will very likely cause the need for layoffs in the future. Mr. Ratliff suggested that the Finance Committee could use the model to show the bottom line effect of several different scenarios. Mr. Goldberg . recommended that we present the effects of a 5% reduction and a 10% reduction in revenue as a range and single values since any predictive model is necessarily an approximation. Mr. Gazzolo encouraged all members of the Committee to send him any suggestions before the Selectmen's Meeting. He also proposed that a shortened version of this presentation could be given at the Town Meeting on November 18. Looking Toward Future Years Mr. Dentino encouraged the subcommittees that were formed in the past to play an active role. He expressed his concern that union contracts that are negotiated this year will begin to affect the budget immediately in Fiscal Year 2010. He expressed the need for cooperation among the Finance Committee, the School Committee, the Board of Selectmen, and the Town Manager moving forward. The Finance Committee strongly endorsed this view. Mr. Arnold will organize a meeting of these groups as a follow-up to the October 2 Workshop. This meeting will be held in Executive Session. Tax Increment Financing (TIF) Proposals Mr. Gazzolo reported on three TIF proposals that have come before the TIF committee this fall. A 20 year TIF for Covidean was supported by the TIF committee by a vote of 3-0 with one abstention. This project is expected to add 50 jobs. A TIF for Medline was approved 5-0. This will be a 10 year TIF, unless Medline can demonstrate that state regulations require a 13 year TIF for certain advantages. The third proposal is from Tyco and will be presented to the TIF committee next Tuesday, October 28. Motion: To Close at 8:50p.m. (GO/~~ , L €) ("'cD r as Signature of Clerk Date of Approval -