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HomeMy WebLinkAboutmin of fin com 10302008 Town of Mansfield Finance Committee Workshop Minutes of October 30, 2008 1\11"0 it.. r.:: nce- ICE \..) ....J"; J Attending: Andres Gazzolo James Lazzara Greg Arnold Jack Goldberg Tommy Ratliff Charlene Lavin Karl Chambers ZDGa : II i~ to: 11 : , ~ "1 Motion: To Open at 7:30p.m. (Lazzara - Arnold) 7 - 0 Passes Review of Transfer Articles Mr. D'Agostino presented all of the transfer articles to the Finance Committee. He explained that the Finance Committee had asked for an explanation of prior year bills that were unpaid; he explained that these transfers were a result of receiving bills after July 14, 2008 when the town changed fiscal years. Mr. D'Agostino explained that Article 1 was in regards to workman's compensation bills where the final bill arrived after July 14. He said that this bill was for a few claims all together, but that the majority of the amount was a result of one claim. The total for the bill was approximately $5,000. Mr. Gazzolo asked if the town knew that this bill was going to arrive after the cutoff time and if they could have planned ahead for this expense. Mr. D'Agostino said that in a situation such as this the town can not be sure what their responsibilities are until after the insurance company pays their portion; he mentioned that he would look into that possibility for the future. Mr. D'Agostino explained that another portion of the article was in regards to a waste management bill; the company accidentally billed the town $12,000 less than what was owed. Another bill included with this article was a bill sent to the highway department by American Rock Salt; he said that this bill had been misplaced. The last portion of this article was in regards to bicycle repairs. Mr. D'Agostino explained that the Comcast Center used to pay for repairs to the police bicycles, but that it was raised that this was an ethical issue since the town provides details for events at the Comcast Center. Mr. D'Agostino explained that this bill is paid out of the police budget, but that in this instance the bill arrived after the close of the year. Mr. D'Agostino said that Article 2 is in regards to approximately $105,000 that the airport asked to have moved. Article 3 is in regards to debt of approximately $270,000 that the town is retiring. Mr. D'Agostino went on to explain that Articles 4 and 5 both involve old debt that is being retired. Article 6 is in relation to a sewer agreement that the town has with Foxboro Lodge; it is $250,000 for inflow and infiltration from the Mansfield sewer system. Mr. D'Agostino explained that Article 7 is in regards to $246,878 in the stabilization account. Mr. D'Agostino explained that Article 8 involves funds that the police department no longer needs in salary as they have a position they will not be filling. They would like to use that money to purchase taser guns. He explained that recently the Foxboro police department assisted in a situation in Mansfield; because the Foxboro police department had tasers they were able to avoid a potentially deadly situation. The chief of police has already sent officers to be trained on to properly use the tasers and they will be responsible for training the remainder of the officers. Mr. D'Agostino explained that this article will be presented to CIP even though the request is to move the funds from salary for this purchase. - Article 9 was an additional expense for the new town accountant. The budget that was originally determined was an estimate and the actual cost was approximately $10,000 more. Mr. D'Agostino explained Article 10 to the Finance Committee that an insurance refund claim check had been mishandled during the prior year and the town was now making the correction. He said that all refunds must go through appropriations, but that in this instance the check was sent directly to the school department. The town reversed the funds but now wanted to allocate those funds to the school department. He said that in the end the money goes to the same use but that it must go through appropriations in order for the town to be in compliance with the statute. Article 11 is in regards to water retained earnings and that the cost went up from what was originally budgeted by the town. Mr. D'Agostino presented Article 14 to the Finance Committee as a TIF article. He said that this article was in regards to 119,000 square foot building on Cabot Blvd. Mr. Gazzolo mentioned that a memo that had been received said that the manufacturer who is interested in the space has to prove to the town that they will occupy the space for 13 years. Consolidation of Costs The Finance Committee questioned Mr. D'Agostino about where the town could possibly cut costs by consolidating services or processes. Mr. Gazzolo mentioned that he had previously asked about using a digital service for the telephones and that MIS had responded that they would need to reroute lines. Mr. D'Agostino said that he would look into this further. Mr. Gazzolo asked about having the municipal side and the schools all on one payroll system; that currently the method is redundant. Mr. Gazzolo asked if a team could be put together to look into this; Mr. D'Agostino mentioned that a team is already in place in regards to this and that have been working on it for approximately three months trying to create a bridge between the different software systems. Mr. Goldberg mentioned that Mr. Hart the new town accountant has seen this happen in another town and that he could possibly lead Mansfield through this change. Mr. D'Agostino responded that Mr. Hart is currently working on this and that the entire town would need to be on one software package. He mentioned that he would look to the Board of Selectmen and the Finance Committee to assist with this if they hit a dead end. Financial Overview Mr. Gazzolo brought up the Board of Selectmen meeting from the previous night. He said that the town has no reserve cash and very low free cash. He mentioned that with the revenue that was forecasted for fiscal year 2010 if the town maintained the same level of growth they would still be faced with a $2,000,000 deficit just in meeting basic costs. He said that if the town is realistic they should predict a 2% increase in revenue for 2010. Mr. Gazzolo said that for the 2009 fiscal year the Finance Committee has recommended a freeze on all new hires, all new expenses and that the town should set up some what if situations for fiscal year 2010. He also said that in fiscal year 2010 they should review the budget with a 2% increase in costs as well as a review with no increases. It was said that 80% of the town's costs are salary and that people need to be realistic in this area; if there are further salary increases that will increase the number of layoffs. Mr. Lazzara explained that this is for preparation; so that everyone can see what is coming. By being realistic the town can be proactive instead of reactive. Mr. Aptowitz spoke about the recommendation that was put before the Board of Selectmen by the Finance Committee the previous evening. He said that he chose not to make a motion the previous evening because he did not feel that it would pass; also, not all of the Selectmen were present. He suggested that the schools formalize the agreement of a freeze in writing. He said that a spending freeze would build up free cash if the town has revenue and if there is no revenue that it would help in offsetting the deficit. Mr. Aptowitz said that as a town we need to get away from the notion that it's in the budget ,. and that everyone needs to be more aware of their spending. He said that he feels the town should be respectful of the taxpayer's money and that at the next meeting that has a full board he would make a motion on the Finance Committee's recommendation. Mr. Lazzara said that the Finance Committee should plan to make the same presentation to the School Committee and reinforce the idea that there is a need for a hiring freeze. Mr. Dentino said that he felt the presentation the previous night was precise and strong as well as provided a good look into the future. He mentioned that the presentation did not seem well received by some. He said that he feels the contracts are a major liability for the town. The contracts that are being set for fiscal years 2010, 2011 and 2012; and that the town can't say that the economy will get better during that time. Discussion Mr. Gazzolo brought up that the Finance Committee is in the process of setting up an executive meeting to go through the contract negotiations in depth. Mr. Arnold said that everyone will need to look at the contracts as a full term; they have to look at the three years in totality and determine where that money will come from. Mr. Aptowitz suggested that the Finance Committee could emphasize at the town meeting what the differences are between the raises and the all in raises once benefits have been included; that overall they are not 2% increases, but more like 6% increases. Mr. Gazzolo said that the Finance Committee has not voted on the warrants and that he has some reservations on the one involving capital. Vote Motion to approve minutes of September 4 Finance Committee meeting. (Goldberg - Lavin) 5 - 0 - 2 Passes Motion to approve minutes of September 11 Finance Committee meeting. (Goldberg - Arnold) 5 - 0 - 2 Passes Motion to approve minutes of September 25 Finance Committee meeting. (Goldberg - Lavin) 7 - 0 Passes Motion to approve minutes of October 2 Finance Committee meeting. (Goldberg - Arnold) 7 - 0 Passes Motion to approve minutes of October 23 Finance Committee meeting. (Lazzara - Goldberg) 6 - 0 - 1 Passes Articles Vote Motion to approve Article 1. (Lavin - Arnold) 7 - 0 Passes It was decided to wait on voting on Article 2. Vote Motion to approve Article 3. (Lazzara - Arnold) 7 - 0 Passes Vote Motion to approve Article 4. (Lazzara - Arnold) 7 - 0 Passes III Vote Motion to approve Article 5. (Lazzara - Arnold) 7 - 0 Passes Vote Motion to approve Article 6. (Arnold - Lavin) 7 - 0 Passes Vote Motion to approve Article 7. (Lazzara - Arnold) 7 - 0 Passes It was decided to wait to vote on Article 8 until it has gone to Capital. Vote Motion to approve Article 9. (Lazzara - Arnold) 7 - 0 Passes Vote Motion to approve Article 10. (Lazzara - Lavin) 7 - 0 Passes Vote Motion to approve Article 11. (Lazzara - Chambers) 7 - 0 Passes It was decided to wait to vote on Article 12 until the next week's meeting. It was decided to wait to vote on Article 13. It was decided to wait to vote on Article 14. It was decided not to vote on Article 15 as it is not applicable to the Finance Committee. Motion: To Close at 9:05p.m. (Goldberg - Lavin) 7 - 0 Passes ,. Ji (J'();( Date of Approval