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HomeMy WebLinkAboutFINCOM MIN 02122009 Attending: James Lazz ra Jack Goldbe g Andres Gaz 010 Karl Chamb rs Tommy Ratli Charlene La in Town of Mansfield Finance Committee Minutes of February 12, 2009 -~;\/I::D C}i:-F iCE znfJq APR - 3 f.\ u: 1+ I Motion: To Open at 7:3 p.m. (Goldberg - Chambers) 6 - 0 Passes Status of Fiscal Year 2 09 Budget Mr. Gazzolo told the Finance ommittee that he and Mr. Lazzara had received a memo from the Town Manager and the Town Acco ntant with assumptions and cuts as an attempt to balance the budget for fiscal year 2009. Mr. Lazzara and Mr. Gazzolo reviewed the memo and sent an update to the rest of the Finance Committee. Mr. Gaz 010 told the Committee that there is $100,000 in the reserve fund and that the prior day some of the dep rtments had made the Board of Selectmen and the Finance Committee aware of the shortfalls in their areas. Mr. Lazzara expressed that they should not use the money in the reserve fund at this time, bec use they still have the remainder of the fiscal year to get through. Mr. Gazzolo told the Committee t at if the town plans to use money from Chapter 90 for the snow and ice removal they will need to gain approval from the state. Mr. Gazzolo said that he recei ed numbers from the Town Accountant to extend the five year forecast and he wanted to send the m dified forecast to the municipal side and the schools. Mr. Gazzolo stressed that the first priority is to supp rt services; no one wants to cut positions but it may be inevitable. Mr. Goldberg said that they need 0 understand the implications of what happens with each level of cuts before the cuts are made. He said that the Finance Committee can only make a recommendation after they understand what would h ppen with each change. Mr. Goldberg said that it's nobody's first impulse to lay people off; he said that t e Town Manager had spoken of consolidating departments and going to some part time positions. Mr. Gazzolo used a chart to di gram his thoughts about having more leverage to spread the costs across fiscal year 2010 and not the re ainder of fiscal year 2009. He expressed that if the town can extend some of their need into fiscal ar 2010 there will be more time to make up the difference. Mr. Goldberg agreed that although it is not a good idea to carry debt forward it will hurt the town less than it would to try and make up that difference b the end of the current fiscal year. Mr. Gazzolo suggested that th Finance Committee send a memo to the Board of Selectmen to let them know that they will need to rev ew this again and that they will need to face potential layoffs. It was decided that Mr. Lazzara woul draft this memo. Mr. Goldberg said that they should express that they answer could be a combinatio of things and that they are not limited to only one option. Audit Committee Mr. Goldberg gave an update n the status of the Audit Committee. He said that they are drafting a warrant article for the town me ting and that he would email a version to the Finance Committee that evening. Mr. Gazzolo suggest d that the Finance Committee invite the Board of Selectmen to cosponsor that article with them. Vote, 8:10p.m. Motion to send an article to the town council to be included in the town warrant. (Goldberg - Ratliff) 6 - 0 Passes '"."~.-----,.._---""_.,."._'~_..,--~-_..- ,"--"..-,...~ "i Update on Electric De artment Mr. Lazzara gave the Financ Committee an update on his meeting with the Electric Department. He said that there have been $1. million in expenditures, which includes two large projects. Mr. Lazzara said that he wanted to look a the capital budget because this department has used capital money to staff some of the capital projects; ince the capital budget is smaller this year the departmental budget will need to be adjusted. Mr. Laz ara expressed an interest in seeing the five year plan for this area; Mr. Goldberg suggested that the inance Committee wait until voting has been completed on both capital and operating budgets. Mr. Gazz 10 said the Finance Committee would like to see this by March 15. Ongoing Contract Neg tiations Mr. Gazzolo said that it was r commended to not start the contract negotiations until there is an understanding between the t wn side and the schools about what the strategy will be. Mr. Gazzolo said that they need to be sure not 0 over commit or undercut the negotiations. He said that with the budget they currently have they are 3.8million over budget right now. Mr. Lazzara asked if this included the 4% increase in benefits; which it oes. Mr. Gazzolo expressed that he doesn't believe that the town can operate with much less then t ey currently have as far as services go. Mr. Gazzolo said that a memo was sent to the Board of Sele tmen and the School Committee listing all of the deficits and the revenue cuts. He said that the town n eds to offset $681,000 and the schools need to offset $359,000 for a total of $1 ,040,000. CIP Ms. Lavin gave an update on IP. She said that she has received information on the debt exclusion from last year as to the expenses t some of the areas that received funds. She has not received information back from all areas. She said that she would like to be able to show at the town meeting where the money was spent. Ms. Lavin expressed that ther are some obligations that the town has in respect to dams and culverts; that if these obligations are no met the town will face fines. She also said that many other towns are not able to afford these costs at this time, so if Mansfield does not meet these obligations they will not be alone. Ms. Lavin said that she spoke ith Mr. Azinheira about the salt usage. She said that he has prepared and submitted plans in the ev nt that the town could benefit from the stimulus plan they would be able to start in on some projects almo t immediately. Mr. Ratliff expressed that Mr. Azinheira has broken down the projects so that they are m re likely to be approved. Mr. Gazzolo asked if there is a capital wish list in the forecast; to which Ms. Lavin responded that they have a modified list that was j st completed that day and they are really only looking at the needs at this time. Discussion Mr. Gazzolo said that the Tow Manager will be leaving his position in November and they should think of the continuity of the union neg tiations for the future. He suggested that someone else be there for the negotiations in addition to the own Manager. Ms. Lavin said that she will em il the Finance Committee the update of the water and sewer departments. Mr. Gazzolo said that he recei ed a memo and feels that the Board of Selectmen and the Finance Committee need to agree on a approach to handling the budget. Both committees need to agree on a cutoff date to determine the re ainder of the fiscal year 2009 budget. He suggested that if they don't come up with an agreement by a set date that they should form a group to do this. Mr. Goldberg suggested that the Finance Co mittee tell the Board of Selectmen that they believe it is in the towns best interest for a plan to be determ ned the Board should then be able to decide on this plan. Mr. Gazzolo said that they should have som thing by March 11; he suggested that the Finance Committee recommend that the Board of electmen come up with some options for the budget by then. Mr. .,... - Goldberg suggested that he, r. Gazzolo and Mr. Lazzara work on coming up with some various options and have them to the Board f Selectmen at their next meeting so that they can discuss and then they can choose to instruct or not instruct the Town Manager on what it is that he should do. Mr. Gazzolo suggested that t e Finance Committee suggest that a search committee is formed to find a new Town Manager; there will need to be an overlap of a few months and this could be a lengthy process. He also said that wi h the overlap there will need to be an overlap in salaries, which may not be currently accounted for in the budget. Mr. Goldberg said that it would be good to know who that person is so that they could be introduc d at the fall town meeting. Mr. Dentino spoke to the Fina ce Committee about fiscal year 2009 reductions; he said that the Board of Selectmen is realizing the red ctions are in budgets that supposedly have money in them. He said that the town has never used Cha ter 90 money to pay for snow and ice removal and he doesn't believe that they should now and carry ov r the debt into the next fiscal year. Mr. Gazzolo agreed that it is not ideal to carry the debt but that in thi case it may be the best alternative. Mr. Dentino suggested that maybe another debt exclusion is the est idea. Mr. Gazzolo said that there is no way the town can maintain doing business as they have een. He used several other towns making major cuts as examples. He said that an alternative would e to get concessions with the unions; Mr. Dentino said that would be with the next contract, but it would ot help in the short term. Mr. Gazzolo expressed that the only way to avoid raising taxes is to cut were the problem is. Vote Motion to approve minutes of anuary 8 Finance Committee meeting. (Chambers - Lazzara) 6 - 0 Passes Motion To Close at 9:1 (Lazzara - Lavin) ;,'J ,...\ J" ,,\ ,", " ') ..'X CP . 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