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HomeMy WebLinkAboutFINCOM MIN 04232009 Town of Mansfield Finance Committee Minutes of April 23, 2009 ;.:. tJ Attending: Andres Gazzolo Jack Goldberg James Lazzara Tommy Ratliff Karl Chambers . .- '" r:- j ILL: ( 7:) ('1. Ll !........ ..J Motion: To Open at 7:35p.m. (Chambers - Goldberg) 5 - 0 Passes Budget Review Mr. Gazzolo reviewed the information from the meeting the previous week. He said that the house budget that was proposed last week will negatively affect the town. He reviewed that the schools are planning to layoff 27 people during the first round of layoffs and that they are losing 13 people to retirement for a total loss of 40 positions. He also said that they are currently planning 78 more layoffs for a total of 130 eliminated positions. Mr. Lazzara reviewed the changes to the school budget. He said that there will be a deficit with the $40.9 million proposed budget. He also said that if the house proposal goes through there will be an additional loss of $241,000 in anticipated revenue to the town. He said that there are 30 permanent position reductions and that may possibly be changed to 40. Mr. Lazzara also said that the schools are planning to make similar cuts next year. He said that the schools are still working on the unemployment calculations and that it is different with staff positions versus instructional positions. Mr. Gazzolo said that he has asked the schools to project out for five years since they know that the enrollment is going down over the next several years. Mr. Ratliff asked if Chapter 70 money is based on the number of students enrolled; Mr. Gazzolo responded that it is but that it is also based on growth, the faster growing towns are given a little more. Mr. Lazzara said that Mansfield is no longer considered a fast growing community; the peak is happening right now in the middle and high schools; the number should be going down significantly over the next five years. Mr. Gazzolo said that Mansfield has been a strong special education community and that they have attracted more special education students because of that. Mr. Gazzolo said that the Finance Committee had requested some information from the Town Manager, but that they have not received that information yet; in the meantime they are moving forward with the budget. Capital Mr. Gazzolo said that the Finance Committee will need to look closely at capital but that he would prefer for Ms. Lavin to be there to discuss that. Mr. Lazzara said that the town should not bring forward a budget of zero for capital and that is what there is right now. Unfunded Liability Mr. Goldberg reviewed the town's unfunded liability; which includes all post employment benefits with the exception of pension. He said that as of the July 1, 2008 study the obligation was $77 million. He said that they make the town calculate a 1 % increase in the trend rate and that would change the obligation to $98 million. Mr. Goldberg said that previously they were not allowed to put aside money to pay for this but now the town is allowed to establish a trust to put some money aside for the future. He recommended that there be an article for the special within the annual to establish that trust. Vote Motion to add the article in the placeholder for the special meeting within the annual meeting to establish a trust for the unfunded liabilities using the language that was reviewed and accepted by the town counsel. (Lazzara - Gazzola) 5 - 0 Passes Mr. Goldberg said that the town has always paid these obligations as they had to and had not accounted for the fact that this money was earned when the retiree was working. Mr. Goldberg explained that these had always been counted as off-book obligations and that they should have always been reflected in the budget. By establishing a trust the town will pay down what is owed as well as putting a little money aside for the future. Mr. Goldberg read a proposal for language to be used by the light commissioners when making a motion to establish a similar trust for the electric department. Vote Motion to provide the language for the light commissioners to use as a motion during their meeting to establish a trust for the electric department. (Lazzara - Chambers 5 - 0 Passes Mr. Gazzolo asked if the Finance Committee could find out from the people who conducted the study and receive more information from them on how they arrived at the numbers they have. Mr. Ratliff plans to contact Ms. Donovan to see if it is alright for the Finance Committee to contact this group. Police and Fire Mr. Ratliff said that he and Mr. Arnold met with the chiefs of the fire and police departments earlier that day. Mr. Gazzolo asked about the four additional staff members that were requested in the budgets; Mr. Ratliff said that he believed that they were no longer in the budget. Mr. Ratliff said that staffing has become an issue due to the fact that the town is receiving less mutual aide from other towns. In the past when the fire department was out on a call a neighboring town would cover the Mansfield station. Now the other towns will respond if there is a call but they are not able to cover the station. Mr. Ratliff also said that calls are up to CVS; he said that with the economy more people are opting to speak with a pharmacist rather than go to the doctor but that they end up needing emergency assistance while at the pharmacy. Mr. Gazzolo asked about the new collections procedures. Mr. Ratliff said that the town is collecting more with the new method. Mr. Ratliff mentioned that there are four cruisers in the budget, but that the police may decide to purchase two motorcycles and three cruisers rather than purchase the four cruisers that they had planned on. Discussion Mr. Gazzolo mentioned that the Town Manager's secretary requested an estimate on the salary for the Finance Committee secretary through the end of 2009. Vote Motion to approve minutes of April 2 Finance Committee meeting as amended (Lazzara - Ratliff) 4 - 0 - 1 Passes Motion: To Close at 9:00p.m. (Lazzara -Chambers) 5 - 0 Passes . c . .-. ,(\ /l' (! .j. JA ; ! t, i; i. ...... t, ./1. .'! /1"1 / .\/Ltl '\ll C, J [ Jl U.. 1 vii '.'/ l,-,C, Signature of Clerk ';. .\ "'., ~" (/ . / \( ) . ell Date of Approval