HomeMy WebLinkAboutFINCOM MIN 08132009
Town of Mansfield
Finance Committee
Minutes of August 13,2009
Attending: Charlene Lavin
Andres Gazzolo
Karl Chambers
Jack Goldberg
James Lazzara
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State Representative: Jay Barrows
Motion: To Open at 7:30p.m.
(Chambers - Lavin) 5 - 0 Passes
Mr. Gazzolo began the meeting by introducing State Representative Jay Barrows who was invited to
attend and brief the Finance Committee with an overview of the state of health insurance plans related to
Mansfield employees. He stated that this was a continuation of the previous week's meeting which
focused on the School Committee.
Health Care Review
Mr Barrows provided a concise synopsis of the state of health insurance in Massachusetts and presented
each committee member with a print out of the 38 plans currently available from Blue Cross and Blue
Shield for Small Group accounts and individuals.
The report uses HMO Blue Value Plus as a baseline and then measures the other 37 plans for premium
relativity to this baseline with 8 categories of comparison.
There are 7 plans above the baseline (more expensive) and 30 plans below the baseline.
When asked where Mansfield's plan was on the list, he explained that Mansfield's plan is the highest plan
above the baseline with a +39% Premium relativity!
Mr. Lazzara reminded the committee that Mansfield is in a collaborative of area towns (approx 19 cities
and towns) that negotiate with BC/BS for health insurance rates. Further, he explained that although a
9.5% increase was budgeted for fiscal 2010, it reality the increase cost to Mansfield for the new fiscal
year may approach 12%. This additional cost can be incurred by hiring back employees that were laid
off prior to the start of the fiscal year and individual coverage being changed over to family plans when a
spouse is laid off from their position in the private sector.
Jay also mentioned that BC/BS plans can be customized; for example a 2 plan offering where one plan
may have appeal to younger town employees and the other may be more appropriate for the older
employee. Finally, he also reminded the committee that self insured plans are an option for Mansfield
and mentioned that Foxboro has recently implemented this approach and is pleased with the results so
far.
Other health plans have more incentive for employees to live a more positive live style and offer savings
to that end!
The committee had a general discussion on this topic after Jay's presentation and summary and
concluded that there are areas to be reviewed; the split between town and employee contribution to the
plan, updated demographic data of Mansfield's employees and retired employees. Mr.Gazzolo
concluded this segment with the reminder that a committee is being formed with representation from the
Selectman's Board, the School Committee and the Finance Committee.
The options to be reviewed are, 1) G.I.C plan, 2) BCIBS, and 3) Self insured.
The Committee thanked Jay for his time and input to this very important segment of the town's budget.
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Mr Gazzolo then updated the Committee on additional town topics:
Bea Kearney is still working to close the financial books for fiscal 2009.
She is also working to get the town's finances converted over to the new software.
The committee reviewing resumes for the town accounting position are being reviewed at a meeting on
Tuesday, August 18th. There are currently approximately 25 resumes to be reviewed. The group
anticipates reducing the candidates to 3 - 5 persons for presentation to the Board of Selectmen.
The State has indicated there will be additional, unexpected shortfalls in their revenues which will impact
the towns of the Commonwealth.
Regarding the Stimulus Funds for the schools, the State is now indicating that the funds should be the
town's hands by December, 2009. Whether the entire $1.094M will be allocated to Mansfield is still a
question.
There are indications from the State that there will be cuts in the 9C funding and could be in the range of
$200,000 - $500,000.
Mr Gazzolo stated that in his visits to Town Hall and other areas of the town's infrastructure, employees
have approached him and said that they want to help correct the fiscal strain the town is under.
Jess Aptowitz advised that an updated actuarial study due out in October 2009 will present an
assessment of the health of the Town's Pension Plan.
Jack Goldberg updated the Committee on the auditor's contract situation stating that although there is not
a signed contract yet, the Town is getting close to resolution. They were just waiting for Gary Babbin to
return from vacation to execute the new contract. Jack also stated that the Audit Committee has a
candidate from the "at large" group and may have an addition by the end of August.
Some final notes before the Committee concluded this session;
Jim Lazzara discussed the requirement for reserve fund transfers for the schools from the 2010 budget
for the fire exit modifications.
Mr. Gazzolo reminded the Committee that the GIS presentation is scheduled for the August 2ih meeting
at 7:00 pm.
A fire truck was sold for $10,000 and another decommissioned fire truck was auctioned for $31,700 but
had some issues and the winning bidder reneged on the deal.
The possibility of outsourcing payroll was again brought up as a potential cost savings effort.
Mr. Gazzolo said that he appeared on the program, "Everything but the Kitchen Sink", and discussed
what a Finance Committee is and how it works.
Motion: To Close at 8:45p.m.
(Lazzara - Goldberg) 5 - 0 Passes
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Signature of Clerk
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Date of Approval
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