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HomeMy WebLinkAboutFINCOM MIN 03122009 Town of Mansfield Finance Committee Minutes of March 12, 2009 \/'''0 f"::T !- :::,- :.....'.'; r'- C'.r- ClCE """ -'~. '.1 \- 'i ; \'",-,0" ','. Attending: James Lazza a Charlene Lav n Andres Gazz 10 Karl Chambe s Jack Goldber Greg Arnold Tommy Ratli ~L'rlnn AP~ - i fA 8: lit . ::...~-1 -ill n - " Motion: To Open at 7:3 p.m. (Arnold - Lazzara) 7 - 0 Passes Mr. Gazzolo reminded the Co mittee that there will be a meeting on March 24 at 7:00p,m. to review the South Eastern Regional Scho I District budget for fiscal year 2010. The Finance Committee has been invited to that meeting. The s ow date is March 25. Municipal Budget Mr. Gazzolo told the Committ e that they had received numbers and assumptions from the Town Accountant and the Town Ma ager. Mr. Gazzolo provided a handout of the five year plan with the Finance Committee assumptions for review. He said that Mr. D'Agostino and Mr. Hart were there to review the budget with them a d to go over the areas where the Finance Committee budget differs from the budget they had prepared. Mr. Hart began by saying that n the budget they prepared they added money not only to the snow and ice line but that they also incre sed the payroll line to compensate for the snow and ice overage. Mr. Arnold said that the Finance C mmittee had planned to use the reserve fund to cover the overage of the snow and ice budget. Mr. D'A ostino said that when money in the snow and ice budget is not used it reverts to free cash at the end f the year. Mr. D'Agostino expressed that the town should look to permanently bumping up the s ow and ice line since it costs significantly more than any budget for it. Mr. Hart then went on to outlin the questions that had been posed by the Finance Committee previously. He said that the insurance line had gone up in relation to the increases in workmen's compensation. Mr. D'Agostino said that he had qu stioned why the town had so many employees on the most expensive level of workmen's compensati n and that he felt that they should not be there, but the insurance company requires them to be t ere. Mr. D'Agostino said that the str et electricity, which was referenced in the handout, is now $20,000 less then previously. Mr. Hart said hat he had spoken with Mr. Azinheira from the DPW and that he felt they would be fine and are coming i lower than expected right now. Mr. Hart then responded to the questions regarding heat and motor fuel. He said that as far as motor fuel goes the town is not subject to he state gas tax. Mr. D'Agostino said that they are working with assumptions that right now are ar more than the actual cost, however, the cost of motor fuel is trending upwards and they are trying to Ian for that. Mr. Goldberg questioned whether the town had a contractual obligation to purchase any set mount of motor fuel at a certain price. Mr. Hart said that he would look at the contract and get back to th Finance Committee on that. Mr. D'Agostino said that he spo e with the police chief about purchasing two additional vehicles. Mr. Arnold said that these purchas s must be accounted for and that even if they aren't needed right now they should be looking towards he long term needs of the town; they don't want to bypass purchasing any cars this coming year if the are then going to need six cars in fiscal year 2011. Mr. D'Agostino said that he had spoken to the chi f about increasing by two cars. Mr. Hart then brought up that the police chief feels that he has the mo ey to rehire the two officers that they are currently down. Mr. Gazzolo said that he felt it may be best to n t do that in the first quarter of fiscal year 2010. Mr, Hart said that both of those positions are in the cur nt budget, but that one is a mediation situation and the other is a resignation; neither position i currently being paid and that they should be able to hire at least one position right now, Mr, Arnol said that if those positions are not going to be filled they should not be included in the salary line of t e budget. Mr, Arnold how the legal fees could be down 17%? Mr. D'Agostino said that this is made up of the labor counsel, town counsel and th tax title. Mr, Gazzolo said that the tax title going down 70% doesn't seem correct to him. Mr. Arnold wa ted to be sure that the budget is realistic to what the costs are going to be; he said that with the increase use of this item for contract negotiations they may want to make some adjustments. Mr. D'Agostino aid that they may end up taking some money from the selectmen legal line and placing it in the labor leg I line. Mr. D'Agostino said that the e gineering line had increased from the previous year. Mr. Gazzolo said that that is not a new increase; Mr. D'Agostino agreed and said that they put it back where it had been before. He said that they had wanted 0 skip the testing of the landfill but had decided that they could have been in trouble with the DEP and s they put the money back in for the testing. Mr. Gazzolo expressed that c tting the budget in so many areas as the town has been doing raises their risk that they are going to go ver budget; he felt that $100,000 should be placed in the reserve fund to cover overages. Mr. Lazzara greed and said that they have run their budgets very tight over the year historically and then move the free cash to stabilization at the end of the year. Mr. Gazzolo said that the scenario has changed a little nd he felt that the town needs a buffer. Mr. Gazzolo raised the conce n that there is not enough money in the capital budget through fiscal year 2013; not necessarily fiscal ye r 2010, but that it will be needed for 2011 and 2012. In the past the town had borrowed money to put th re, but that no matter what he felt that there needs to be something there. Mr. D'Agostino said that he w uld like to look at the town's debt capacity. He said that they should build the budget to pay for capital p ojects with a combination of cash and/or debt; that the flexibility is necessary. Mr. Lazzara said t at they can not borrow to do maintenance on the regular basis. Mr. Hart said that he would like to revie the list of capital projects, Mr. Gazzolo said that they ne er receive enough money from the state to maintain the roads and that they should plan to put somet ing there. Mr. / D'Agostino said that in maintenance alone the roads cost the town $7 million a year; the need to work out a way to finance that over time. Ms. Lavin said that there is a IP meeting planned for March 17 at 6:30. Mr. Hart said that there will be a revision to cost of the new software programs. He said that the municipal side and the school are not going to be going to the same payroll program and that the town will be saving $188,000 over t e next five years. There was some discussion in regards to the quality of the new system and why the unicipal side and the school side would be converting to two different systems at the same time whe it had been recommended that they convert to the same system. There was some discussion of the reserve fund. Mr. Lazzara said that it is used for unanticipated expenses. Mr. Gazzolo said t at any money placed in the reserve fund would be carefully looked at before it is used for any purpo e. Mr. D'Agostino said that he would do a five year profile on what the reserve fund has been used fo in the past. Mr. Gazzolo said that the town needs to start looking to put something into the stabilization fund for the five year plan. ~ Discussion Mr. Lazzara said that he has first pass at the electric department budget and that they are fairly level funded. They don't currently ave a number for a freeze in healthcare, but they should have this done within a week. Mr. Arnold questioned when t e individual department meetings should be scheduled for? Mr. Gazzolo said that they had to wait unti they know when town meeting will be. Mr. Gazzolo said that the sch ols have found $200,000 and they should be able to balance for fiscal year 2009. Mr. Lazzara said that f r fiscal year 2010 they are planning to make 13 cuts; they are a little more focused this year and underst nd that they are limited in the changes they can make since most of their budget is made up of salaries Mr. Gazzolo asked about fun ing the station for the light department. Mr. Lazzara said that they are planning to use a combination of cash and debt; but that there is no final figure right now; they don't anticipate it for this year. .^ I'.' /, , eJ U (F1 Date of Approval Motion: To Close at 9:1 p.m. (Lavin - Arnold) 7 - Passes "'-,..,....~.,."...__.... .",--,,~-.... "l'!" '-~---_._"_.., "'".