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HomeMy WebLinkAboutFINCOMminutes10042012 Town of Mansfield Finance Committee Minutes of October 4, 2012 iECEIVE: OFFICE Present: Members Yogen Chemburkar, Liz Christo, Michael O'Brien, Steve SchogQkegaS4ott Ittiefiz 11111' Chairman Walter Wilk. John Stanbrook,Town Accountant,was also in attendance. IFLO Absent: James Bazinet Call to Order: Chairman Wilk called the meeting to order at 7:35 p.m. Chairman Wilk welcomed new member Yogen Chemburkar. Review Minutes Chairman Wilk asked if there were any suggested changes to the minutes, and there were none. Minutes of August 23, 2012: Motion: To approve the minutes of August 23, 2012 (Schoonveld/Feely) Roll call vote: Chemburkar aye, Christo aye, Feely aye, O'Brien aye, Schoonveld aye, Chairman Wilk aye. Finance Committee at BOS 8/22 meeting (Chairman Wilk and Vice-Chair Shoonveld addressed the Board of Selectmen on October 22nd. Walter Wilk discussed the importance of developing the industrial park, downtown and the train station. The priority has to be to increase revenue by investigating all sources before asking the residents. Steve Shoonveld discussed 1, 3, and 5 year projections. This model is needed so we are not making decisions blind. As expenses increase then revenue must increase at the same rate. With very preliminary numbers, there is $2.5M - $3.5M need just to maintain and this doesn't include capital. We must remember that there hasn't been any capital or stabilization in these budgets. Scott Feely added that the projections would be a good tool for Town Meeting attendees to help see how articles impact the Town and will add perspective. All projections must include a baseline number with the best and worst case scenarios. The Board of Selectmen need to take the lead on implementing the strategic plan and insuring that at all sources of growing revenue have been investigated and moved forward. One of the strategic plan recommendations was that the Town adds a position responsible for grants. Some departments apply for grants on their own but there currently not one specific person responsible. Many towns have grant positions. The Finance Committee feels strongly that grants can be a source of additional revenue and need to be a priority. Review of budget assumptions Steve Schoonveld put together a historical analysis of revenue, expense, tax levy, local receipts, state revenue and interfund transfers. Interfund transfers are from the enterprise accounts. At this time the Page I 1 Assessor's reevaluation expense is a recurring expense and should be included in the annual budget at 1/9 per year if the expense occurs every nine years. At the Special Town Meeting, this will be funded in full from free cash. Numbers are not final because the free cash number has not been certified; Department of Revenue will be coming on October 17 to certify the number. Capital stabilization can only be used for capital projects and can only be voted out at Town Meeting. Stabilization funds can be used for anything and also can be voted out at Town Meeting. The Finance Committee did not vote on the articles and will wait until the Board of Selectmen vote on the articles. Input from team members on CIP,Audit and School Committee —Scott Feely and Michael O'Brien: CIP has not met yet. Page 12 range of the deficit is projected at 1.5M to 3.5M,these numbers are only a guide and numbers will be more defined as the budget process moves along. We need to keep in mind that there is no money in this projection for capital or stabilization or pension funding. This projection is not fully loaded. The Finance Committee will work with John Stanbrook and create a 5 year look back and 5 year projection. Once fully loaded and reviewed by town counsel and appropriate parties, this document will be presented at Town Meeting. Review of Special Town Meeting articles November 13, 2012 is the Special Town Meeting. The Board of Selectman did not review the articles at the September 22, 2012 meeting. John Stanbrook reviewed 29 of 96 capital projects. The balances in the funds will be classified based on its spending policies and the nature of the article that created it. Some of the funds can be spent this year and others will be used at the special town meeting. Funds with debt associated with a long term bond can only use $1000 to pay down the debt and the balance needs to be transferred to another project that is borrowed for an equal or longer term. Debt excluded funds can only be transferred to other debt excluded fund or used to decrease next year's tax levy. Lastly, some funds were trusts and not capital projects so were moved to the right place. Moving forward there will be an attempt to review all funds every year. John Stanbrook quickly reviewed all the articles with the Finance Committee. Legal counsel approves all the language in the articles. ,.� Employee benefit expense is related to an early retirement penalty assessed by Bristol Country. Multiple accounts have a deficit balance for various reasons and the balances need to be corrected. After these accounts are taken care of there will be no more accounts will deficit balances. Assessor's reevaluation expense is a recurring expense and should be included in the annual budget at 1/9 per year if the expense occurs every nine years. At the Special Town Meeting, this will be funded in full from free cash. Numbers are not final because the free cash number has not been certified; Department of Revenue will be coming on October 17 to certify the number. Capital stabilization can only be used for capital projects and can only be voted out at Town Meeting. Stabilization funds can be used for anything and also can be voted out at Town Meeting. The Finance Committee did not vote on the articles and will wait until the Board of Selectmen vote on the articles. Input from team members on CIP,Audit and School Committee ,-- Scott Feely and Michael O'Brien: CIP has not met yet. Page I 2 • Jim Bazinet was not present to give the Audit Committee update. Liz Christo updated on School Committee meetings. Facility usage fees have been finalized and were raised to cover expenses. Cafeteria revenue is being monitored as there is a concern that the wellness policy may have impact on sales. Bus numbers are low but anticipated to increase by October; also, one set of late buses was cancelled. Starting FY13 budget process and mandates will be embedded in level services budget. Still working on MHS phone system, working on getting a consultant for the phone system but MHS has to be the priority. Ed Vozella emailed out the quarterly report. Discuss budget process and dates Town Manager presents to the Board of Selectmen the first Monday of January. The Superintendent presents the budget to the School Committee on January 8th and 10th (if needed). Finance Committee will hold a Saturday workshop after those presentations. Before an override is every possible avenue of revenue is tapped before the residents are asked for an increase. We need to do our due diligence and so do the Board of Selectmen and School Committee. This must be a priority for all three boards. Closing comments Steve Shoonveld: Some of the articles appear to be a way to ease the pain of last budget season. Liz Christo: School Committee did appreciate meeting with us. Adjourn Motion to Adjourn (O'Brien/Schoonveld) Roll call vote: Chemburkar aye, Christo aye, Feely aye, O'Brien aye, Schoonveld aye, Chairman Wilk aye. Clerk: fkietkii � (,�1�^-✓Gr Date: I I j IZ� Z Page 13