HomeMy WebLinkAboutFin Comm Minutes 12/15/2005I
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Minutes of Meeting held Thursday. December 15, 2005
Anance'Committee Members Present:
Andy Gazzola (presiding)
James Lazarra
Jess Aptowitz
Jack Goldberg
Charlene Lavin
Greg Arnold
Also present: John Moretti and Jean Miller.
These minutes were prepared by Greg Arnold. The meeting was opened at 7:30 p.m.
Matters Discussed and/or Voted On
The Finance Committee discussed with Mr. Moretti a number of issues relating to the upcoming
budget process.
The first matter discussed related to Consolidation. Mr. Moretti acknowledged that the process
was not as far along as everyone had hoped at this point, but it was noted that there had been
some extenuating circumstances that made joint meetings with all involved difficult to schedule.
There was agreement that the process would be resurrected after the New Year.
There was then a discussion of the 5 -Year Forecast. Mr. Moretti indicated that the School
Department can create such a forecast based on the existing budget, but wanted to concentrate
first on finalizing the request for the upcoming budget. Once that was completed, they could
overlay the 5 -year forecast, including the possible expansion.
A lengthy discussion was then commenced on the subject of a possible school expansion. Mr.
Moretti mentioned that he was still considering how to handle the anticipated request for
$500,000 in architectural funds at this Spring's Town Meeting. Mr. Gazzolla noted that such a
figure would be much easier to swallow if it was included in the regular budget, as opposed to a
CIP request or debt exclusion. Mr. Lazarra noted that wherever it is accounted for, it perhaps
should be broken out separately as a capital budget item as opposed to an operational expense.
Mr. Moretti noted that he did not know what future revenues would be and the $500,000 could
be added to the tax base in the future. Mr. Gazzola indicated that it was nor preferable to have it
in their forever and Mr. Lazarra mentioned that the Schools have a capital expenditure portion of
their budget already.
/ The discussion then turned to the Spring Town Meeting and what type of plan might be
l presented to voters. Mr. Moretti indicated that it was his hope that a consolidated plan could be
put forth taking into account the Schools, Town and Council on Aging. It is expected that by
March 1, 2006 the state regulations will be ready and we should have a real good handle on the
process by that time. From July 1, 2006 through June 2007, cities and towns will be able to
review the regulations and formulas and speculate on what the level of reimbursement may be.
On or about July 1, 2007, the School Building Authority will begin awarding reimbursement.
Although no formal approvals or applications will be accepted prior to that date, there may be
some form of pre- application process. It is anticipated that the State will get flooded with
requests on July 1, 2007, at which time they will figure out (a) how many they can fund and (b)
how much each will get. Realistically, a town should know by September 2007 how much
reimbursement it will get in 2008. If a town is not chosen, it does not "keep" its place in line, but
must go through the same selection process the following year.
Tying in the proposed expansion plan to the 5 -year forecast, Mr. Gazzola indicated that we need
to begin making some assumptions, and alternate scenarios, about how much reimbursement we
may receive. Mr. Moretti indicated that he is confident that the amount Mansfield gets
reimbursed would be somewhere in the neighborhood of 50 -57 %. He also stated that he is
almost 100% sure that Mansfield will be chosen by the State for reimbursement due to the
population increase and projected student growth in the high school in 2010.
Mr. Moretti also explained that, under the new system, costs are reimbursed by the State as the
project gets completed, not over a 20 -year period as before. Thus, assuming a $30 million
expansion project to be begun in 2008 and completed by 2011 and a 50% reimbursement rate,
Mansfield will receive $15 million by 2011, at which time it can then attempt to refinance the
balance of the debt. This is one area where it is anticipated that the new regulations will assist
towns.
The Finance Committee selected Jess Aptowitz and Greg Arnold to be involved in the school
expansion project as it relates to the 5 -year forecast. In particular, they will prepare scenarios
depicting various reimbursement percentages, with an eye towards expected completion dates
and create a model for consideration in preparing the 5 -year forecast.
There was then a general discussion about the Merrimack Study and whether a final study had
been prepared. Mr. Moretti indicated that there was and that he would get it to the Finance
Committee along with the budget package. There was then a discussion about whether the
presentation to Town Meeting should focus strictly on the student population numbers, or also
include discussion about the particular uses to which the space may be put (i.e., they are not just
`general classrooms' anymore; 60 kids with autism currently in the school system, only 2 at the
high school level).
Mr. Moretti indicated that he expected to have the School Budget ready to be mailed out next
Friday. Mr. Gazzola asked how things looked at the present time. Mr. Moretti provided a
capsule summary of the current state of the budget and indicated that he thought we needed to
seriously consider an operational override this Spring.
At this point, Mr. Moretti and Ms. Miller left the meeting
The Finance Committee discussed all of the foregoing, including whether, if an operational
override proved necessary, should it be done separately from the school expansion project.
By a unanimous vote, the minutes of meetings on November 10, 2005, November 22, 2005 and
December 1, 2005 were approved by all those present at those meetings.
The Meeting closed at approximately 8:45 p.m.
Gregor)Vf. Arnold, Secretary