HomeMy WebLinkAboutBudget Sub Comm 01/30/2017C' s f ' _, Eradget Subcommittee Meeting Minutes
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>> F r..�� January 3Q 2017
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Present: pppp 1 F I I/
Zeffro Gianek, SG grip&n'ddeA:oYn
chools; Edward Vozzella, Wa DirectnITIFI, e pd12; 03
Operations; Jenn sh.; 9
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-Sc o, p I Committee Member; John Stanbroo , Finance Director and
,
Town Accounto-ft Ly`nra Cayift T,,Vice Chair School Committee; Michael;A V&Qo iiid e. Board of
Selectman Clerk; Steve Schoonveld, Selectman; Teresa Murphy, Ass[Aant Supe%iatend'ent;
Walter Wilk, Chairman Finance Committee; William Ross, Town Manager; Yogen Chemburkar,
Finance Committee Member; Carrie Champagne, Minutes Clerk
Call Meeting to Order
Meeting was called to order by Mr. William Ross at 6:03pm.
Choose a chair and vice chair
Ms. Walsh nominated Mr. Trowbridge. Mr. Chemburkar nominated Mr. Schoonveld. Mr. Wilk
nominated Ms. Cavicchi, but she declined. Committee reached a tie vote for Mr. Trowbridge
and Mr. Schoonveld for chairman of the budget subcommittee.
Decision was made for Mr. Schoonveld and Mr. Trowbridge to co-chair and share the chairman
responsibilities.
Discussion of proposed 2018 fiscal year budget
Mr. Stanbrook stated that the current deficit is $1,614,490 and this would be if the Governor's
State Aid amount of $210,475 is used. This amount is based on the charter school assessment
because fewer children are leaving town to go to a charter schools. Mr. Stanbrook will continue
to go through the line items of the budget to get the number lower, as of today he was able to
reduce $12,897.
Healthcare numbers are not final, and Mr. Ross will know more on Thursday, February 1, 2017.
The hope is to only incur a 10% increase and not the 14-20% increase that was first projected.
Each percent over 10% equals $145,000. All of the town employees are on a value plan; there
could be an option to go to a deductible plan that would save money. If we move to this plan it
would require negotiations with each bargaining union and Mr. Wilk suggests that this can
create ill will with employees.
Mr. Wilk stated that we need to compare level surfaces of each budget and prioritize what is
important and which of those can be afforded. The committee should not focus on items that
our out of their control like healthcare. This would be a good starting place and make the
process efficient.
Ms. Cavicchi asked about the new growth projection, and Mr. Stanbrook answered that we
don't know the numbers until late September. The number was conservative. The trend is up,
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Budget Subcommittee
and the town is booming. However, if the vote does not come in then the number could be
lower.
The current proposed additions in staff are:
- Bookkeeper (Finance)
- Skilled laborer (Highway)
- Skilled laborer (Sewer funded through Sewer Enterprise)
- Fireman
- PT Library Assistant
- 12.5 additional hours for Park and Rec (revolving fund)
The additional staff listed above equal an additional $210,000 to the general fund budget. The
Parks and Recreation position is salary dollars; the employee already is included in the health
plan because she works 20 hours per week currently.
Mr. Gianetti states that the school will have adjusted special education numbers this April. He
also stated that the ELL (English Language Learning) position was nonnegotiable because of
state regulations requiring schools districts to have this position. There was a retiree this year
so that would be a wash with this position.
Mr. Ross explained that we don't know what the state aid amount will be; the number being
used is last year's number plus half a percent. The Governor has made a lot of cuts to balance
the state budget. It was noted that being a deficit of 1 million is not that bad.
The discussion moved to the general budget OBEP line item. This number is the same as last
year and does not affect our liability of retiree healthcare. Mr. Stanbrook states that he breaks
out each retiree on the school side and could do so for the town side to make a comparison.
Mr. Wilk reiterated that both groups need and rank their lists for next meeting, no one
disagreed that this was a good starting point.
Establish date for next meeting
Next meeting of the Budget Subcommittee will be: Monday February 13, 2007 at 6pm
Agenda items for next meeting include a healthcare cost update from Mr. Ross and a prioritized
list of budget items from the general fund and the school committee.
Other items not available 48 hours before the meeting
Discussion was made to look at the true cost of an ambulance and compare our charge versus
surrounding towns. Mr. Ross stated that if this were a July 1, 2017 increase we would not see
the increase in dollars until January/February. Mr. Ross noted that expenses are not truly
allocated for the ambulance, and will talk with the Finance Committee about converting EMS to
an enterprise fund and make it self-supporting.
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Budget Subcommittee
Mr. Ross also explained that the Finance Committee is looking at the maintenance of town
vehicles as an internal service fund.
Adjourn
Before meeting is adjourned Mr. Trowbridge withdrew as co-chairman and suggested that Mr.
Wilk should be the vice-chairman of the Budget Subcommittee.
Next meeting was planned for February 13, 2017 at 6:00pm.
Motion: To name Mr. Wilk as Vice -Chairman of the Budget Subcommittee. (Schoonveld/Walsh)
Passes 6:0
Motion: To adjourn the January 30, 2017 Budget Subcommittee meeting at 7:04pm.
(Schoonveld/Walsh) Passes 6:0
Clerk Signature Date
Minutes prepared by: Carrie Champagne
Documents used in this meeting:
Town of Mansfield FY18 Budget Calculations as of 1/30/17
Town of Mansfield FY18 General Fund Revenue Summary Using Moderate Assumptions as of
1/30/17
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Budget Subcommittee
TOWN OF MANSFIELD FY18 BUDGET CALCULATIONS AS OF 1/30/17
Town Deficit as of 1/30/17:
Fact No.
Amount Description
($2,285,862) Initial Budget Deficit 1/3/17
'1
2
$221,000 School Committee 1/10/17 budget reduction
3
$227,000 School Committee 1/10/17 budget reduction
4
$12,897 Various Town Budget Cuts as of today
($1,824,965) Surplus/(Deficit)
Budget Assumptions
Assumption
Letter
Amount Description
a)
$210,475 If Governor's State Aid amounts are used
$220,475 Total Assumptions as of 1/30/17
($1,614,490) Adjusted Surplus(Deficit)
-- -------------------- -
T
Proposed Free Cash Usage at FY18 Annual Town Meeting:
Options
$2,984,602 FY16 Free cash Certified
a)
FY18 Budget Usage as per FinCo m
b)
--($250,000) -
-
($2775,000) FY18 Snow& Ice Deficit Estimate
C)
FY18 StabilizationFundingneeded to reach 5%
d)
e)
f)
g)
h)
i)
j)
k)
1)
m)
n)
($2,000,000) FY18 Capital ImprovementPlan
$0 -Unpaidii
Fund Deficits
$0 FuADe Deficits
Capital Stabilization Funding
Reduce Long-term Debt Costs
FY18 Reduce Municipal Complex Tax Increase
OPEB Trust Funding
All-Day Kindergarten
Compensated Absences Funding
Fund other FY18 Budget Item Priorities
Leave this Amount Unspent to Boost FY17's Free
Cash
Total
Amount Available-,
__$'0'
Other Options:
This report was created by John Stanbrook to use as a discussion tool. In no way
does it represent the opinion of any other Board, Commission, or Town Official
TOWN OF MANSFIELD FY18 GENERAL FUND REVENUE SUMMARY USING MODERATE ASSUMPTIONS AS OF 1/30/17
FY17-FYI8
FV37-FYI8
Revenue Source
FY17 Budget
FY18 Budget
Increase ($)
Increase (%) Forecast Explanations and Assumptions
Previous Fiscal Year's Levy Limit
$55,239,819
$57,775,644
$2,535,825
4.5991.Maximum allowable increase
Add: 2.5% Increase
Add: New Growth
$1,380,995
$1,154,830
$1,444,391
$1,000,000':
$63,396
($154,830)
4.59% Maximum allowable increase
-1347% FY18's New Growth Moderate Assumption Estimate
Subtotal Levy Limit
$57,775,644
$60,220,035
$2,444,391
4.23%, -
Add: Oebt Exclusions:
Well Site
$5,160
$4,920
($240)
4.65% Actual Debt Exclusion amounts from Treasurer/Collector's Debt Schedules
_
Robinson School
($63,340)
($77,677)
($14,337)
22.63% Actual Debt Exclusion amounts from Treasurer/Collector's Debt Schedules
Middle &High School
$91,445
$21,228 _
_ ($70,217)
-76.79% Actual Debt Exclusion amounts from Treasurer/Collector's Debt Schedules,.
Municipal Buildings
East St. Municipal Complex
$157,983
$90,836
$42,640
$1,569,574
($115,343)
$1,478,738
-73.01% Actual Debt Exclusion amounts from Treasurer/Collector's Debt Schedules
1627.92% Estimate after Round 2 of $35M Borrowin
Total Debt Exclusions
$282,084
$1,560,685
$1,278,601
453.27%
Maximum Allowable Levy
$58,057,728
$61,780,720
$3,722,992
6.41% This is the projected increase on FY18 property tax bills
Add: State Ald
Cherry Sheet Receipts_ _
MSBA Payments
$21,298,037
$1,690,372
.$21,415,315
$1,6901
$117,278
$4
0.551% FY18 State Aid's Increase if the Governor's budget becomes law,
0.00% This is the actual MSBA contractual reimbursement for FYI8.
Total State Aid
$22,988,409
$23,105,691
$117,282
0.51% _
Add: Local Receipts
Motor Vehicle Excise
$3,450,000
$3,570,750
$120,750
_ 3.50% Local Receipts increase 3.5% _
Other Excise
$675,000
$698,625
$23,625
3.50% Local Receipts increase 3.5%.
Penalties &Interest
$190,000
$196,650
$6,650
3.50% Local Receipts increase 3.5%.
Payments in Lieu ofTaxes
$653,647
_ $655,199
$1,552
0.24% MMED PILOT Payments are Net Book Value X FY17 Comm Tax Rate
Fees
$1,300,000
$1,345,500
$45,500
3.50% Local Receipts increase 3.5%.
Rentals
$25
$26
$1
4.00% Local Receipts Increase 3.5%.
_
Licenses & Permits
$715,000
$74 5
$25,025
350% Local Receiptr,increase 3.5%
_
Special Assessments
$1,315
$1,315
$0
0.00% Industrial Park Betterments stay the same. _
Fines &Forfeits
$97,500
$100,913
$3,413
3.50% Local Receipts increase 3.5%.
Investment income..
$98,325
_
$3,325
3.50% Local Recelptsincrease3.5%.
Medicaid Reimbursement
_$95,000
$330,000
$341,550
$11,550.
3.50% Local Receipts increase 3.5%.
Miscellaneous
$180,816
$187,145
$6,329
3.50% Local Receipts Increase 3.5%.
Total Local Receipts
$7,688,303
$7,936,023
$247,720
3.22%
Add: Inter/und Transfers
$686,661
$705,027
$18,366
2.67% 2%Increase In Indirect CostsEstimated; 3%i ccr_ease in Regional_ Transit _
_
Add: One-time Fund Transfers
$206,002
$59,800
($146,202)
. _ -70.97% $59.8K Pension Reserve estimated
Add: Closed Articles
_ _
$67,000
$50,000
($17,000)
-25.37% Closed Capital Articles will be used for Assessors 2 articles below _
Add: Free Cash Use in Budget _
$250,000
__($250,000)
__50.00% Free Cash is reduced to $250K as per FmCom guidelines __ _
Free Cash Stabilization Transfer
__$500,000
$667,641
_
1 $456,000 1
($211,641)
-31.70% 5% Stabilization Fund amount is estimated for FY18.
Total Forecasted Revenue
General Fund
$90,861,744
$94,343,261
$3,481,517
3.83%
FY17-FY18
FY17-FY18
General Fund Expenses
FY17 Budget
FY18 Budget
Increase ($)
Increase (%) Forecast Explanations and Assumptions
Town Personal Services
$13,136,728
$14,220,744
$1,084,016
8.25% As per updated FY18 Town Mgr., Budget
Town Expenses
_
$6,025,049
$6,321,883
$296,834
4.93% As per updated FY18Town Mgr. Budget
_
Town Capital Outlay
$586,156
$516,044
($70,112)
-11.96% As per updated FY18 Town Mgr. Budget
Town Other
$67,000
$50,000
($17,000)
-25.37% $25Kfor 5 year re L; $25K 10 Year Cyclical Inspection _
Town SE Regional Assessment
$782,459
_
$824,479
_
$42,020
5.37% FY18 Budget Increase latest estimate
_
School Personal Services
$3$129,966
$39,62$000
$1,498,034
3.93% As per latest School. Committee vote
School Expenses
_
$9,124,452
$9,939,951
$815,499
8.94% As per latest School Committee vote
Debt Service
Cherry Sheet Assessments
Overlay
_$3,326,366
$2,315,938
$495,844
$4,674,895
_$2,185,728
$503,750
_ $1,348,529
($130,210)_
$7,906
40.54% Debt Service is as estimated with 2nd Wave of Muni Complex Borrowing
-5.62%FYI$ State Assessments decrease tithe Governor's budget becomes law.
1.59% Overlay Amount Estimate for FY18
Transfers Out
$_1,072,801
$860,920
49.75% Transfers are $400K for OPER, $456K Stabilization; $4,920 Water Excluded Debt
_
Insurance
$968,514
$953,600_
_($211,881)
($14,914)
-1.54% Insurance is as of FY18' latest estimate _
Employee Benefits
$14,587,126
$15,277,757
$690,631
4.73% Employee Benefits Increase as per Treasurer's FY18 latest estimate
Total
$90,618,399
$95,957,751
$5,339,352
5.89%
-Surplus/Deficit asof l/30/17:
$243,345
i ($1,614490)