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HomeMy WebLinkAboutFINCOM MIN 03052009 Attending: James Lazz ra Charlene L vin Andres Gaz 010 Karl Chamb rs Jack Goldb rg Town of Mansfield Finance Committee Minutes of March 5, 2009 ~:FC.::-\VED . . '., . ::.', . ~ (' ,-::- 1 C.E ':,) uc r i ;~,n LULl1 [~1P?i - 3 1\ f.1. I. I ,..-'\ \.)~ L.f Motion: To Open at 7: Op.m. (Lavin - Lazzara) 5 - 0 Passes Mr, Gazzolo told the Commit ee that he received a letter from the South Eastern Regional School District about the budget meetings f r the School District. There will be a meeting on March 24 at 7:00p.m. at the technical school. Mr. Gazzol said that he is planning to attend this meeting and wanted to open it up to any other members of the C mmittee. State of the Economy Mr. Gazzolo introduced Mike hitney who updated the Committee on the current state of the economy. Mr. Whitney provided the Co mittee with handouts and explained that the information he presented was based on research of the ISI. He showed charts with the unemployment rates, US consumer net worth, ISI state tax receipts survey, age cuts at eleven of the largest companies in the US, and wage freezes at 47 of the largest companie . Mr. Whitney explained that ri ht now wage cuts and freezes are primarily affecting the private sector and that the majority of Mansfield esidents are private sector employees. Mr. Lazzara asked whether product oriented or service oriented b sinesses are being more greatly effected. Mr. Whitney said that it is both; the service industry has nothi g left to cut but salaries and employees. He said that he projects the economy will get worse befor it gets better. Mr. Gazzolo questioned how long Mr. Whitney thought this might take. Mr. Whitney resp nded that it is a total reset of the economy. When a company does well and then it suddenly crashes i will take a long time before it is able to build back up to where it had been. Mr. Whitney said that he belie es that is the worst the market has been since the 1930s; and that it would take at least six to nine month before it starts to get even a little better. Mr. Whitney said that lending i down; people have accumulated too much debt and are now not eligible to borrow. He also said that s andards have gotten higher; you have to have 20% down and a good appraisal in order to qualify fo a mortgage. Mr. Whitney said that he felt 0 e of the worst things you can do in a down economy is raise taxes. Mr. Lazzara asked about Massachusetts on a state level and what the impacts are. Mr. Whitney said that he does not follow the state close y but said that the state is in rough shape and is cutting back. Mr. Whitney said that although he is unsur what kind of cut Mansfield wants to take he said that they should start by planning to cut at least 10% fr m what they expected to receive from the state. Ms. Lavin agreed that she does not think that the economy problem is going to end soon and that the town needs to take some actions to prepare for a larger ownturn in the near future. Mr. Whitney agreed that everyone needs to be on the same page and that includes the unions. Mr. Goldberg explained that no government has ever had less in the succeeding year then they did before; but that is what the tow is facing. They are unaccustomed to having less and they need to learn how to accommodate that cha ge. Mr. Gazzolo said that 20% of the town's budget is not discretionary; they have debt that needs to b repaid, etc. Mr., Whitney said that is his business they compare companies all of the time and t at if Mansfield's benefits are better than other towns that should be the area to look in. Mr. Gazzol explained that if they are asked by the Board of Selectmen to do certain things than they must do th se things. Discussion Mr. Gazzolo explained that e attended the previous evening's Board of Selectmen meeting that the Town Manager attended as ell. He said that the Finance Committee has still not received the expenses for the town and until they d they are unable to put together a budget. Mr. Lazzara said that there had been a discussion of using hapter 90 money for snow and ice removal; he said that it was voted not to use that money for snow an ice removal. He said that as of right then there was not an alternate plan for how to pay for any additiona snow and ice removal that may be necessary; he said that a possible alternate plan would be to n t pay those bills right now. Mr. Gazzolo said that it was recommended to the Board of Selectmen that an Iternate plan be developed. Ms. Lavin said that maybe the Town Manager has some ideas for other ar as of the budget where that money could potentially come from. Mr. Gazzolo said that the Board f Selectmen asked the Town Manager to list any sources he has for possibly developing an additional plan. Mr. Gazzolo said that a mem was sent from him and Mike Trowbridge of the School Committee on March 5 to the Board of Sele tmen with a copy sent to the Town Manager. Mr. Goldberg read this letter to the Finance Committee as ing that the Town Manager not discuss the school budget or the Finance Committee without represent tives from those Committees present to respond. There have been concerns raised that some st tements made in public could undermine both the School Committee and the Finance Committee. Mr. Lazzara said there had b en a discussion at the previous evening's meeting that an agreement had been reached with the supe isory union. This is concerning as there is not a matrix to look at the parameters for an agreement Mr. Gazzolo said that he thought it had been voted by the Board of Selectmen not to participate i contract negotiations until a matrix had been completed. Mr. Dentino responded that it was a conc ptual agreement. Mr. Gazzolo said that he feels uneasy about this as they don't know what is being give in exchange for a 0% increase. Mr. Dentino said that some departments have fixed contracts and that oncessions will need to be made. Mr. Lazzara was concerned because the Finance Committee had a ways been told that these departments couldn't function on less then what they have and now they are a Ie to. Mr. Dentino said that the town must also be careful because they don't want their bond rate to g down. Mr. Gazzolo asked about fina cing for the new substation. Mr. Lazzara said that this needs to be discussed; the electric, light a d water departments will be making a presentation at the end of the month. Mr. Gazzolo said that the Fina ce Committee has to wait to be invited by the Board of Selectmen for the meeting on March 11 before t ey plan to attend. Mr. Lazzara asked about sche uling a Saturday meeting. Mr. Gazzolo said they should allow for the directors of each area to revie . He said that the major areas should be dealt with prior to then but that the Saturday meeting should b used to review the smaller departments. Motion: To Close at 9:2 'P.m. (Lavin - Lazzara) 5 - 0 Passes ,<"4 : ~"i .,.j lJ; (; C/ Date of Approval .... ....-."".~._-"_...""-"_.,"-~'......._...v...... ""'+____"", 1T