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HomeMy WebLinkAboutBudget Sub Comm 02/13/2017Budget Subcommittee Meeting Minutes February 13, 2017 ,ECElVJE0 Present: yit,;,*, C 7I 5 oFr ICE Zeffro Gianetti, Superintendent of Schools; Edward Vozzella, Director of Finance and Operations; Jenn Walsh; Scho I Committee Member; John Stanbrook, Finance Director and Town Accountant; Lynn Cavicch� 91CWQ1ujVScRo`L' 41 Committee; Michael A. Trowbridge, Board of Selectman Clerk; Steve Schoonveld, Selectman; Teresa Murphy, p�ssistant 4 . i�-I 71 Superintendent; Walter Wilk, Chairman Finance Committee; William Ross, Town Manager; Yog�71�C�e`h51�pF1� v€'mance Committee Member, Carrie Champagne, Minutes Clerk Call Meeting to Order Meeting was called to order by Chairman Schoonveld at 6:00pm on February 13, 2017. Budget status update Mr. Stanbrook presented a handout titled Town of Mansfield FY18 Budget Calculations as of 2/13/17. Mr. Stanbrook stated that he has continued to make corrections and go through each individual line item of the budget. He anticipates that local receipts will be above $100,000, and will add approximately $40,000-$50,000 to the adjusted surplus. The current projected deficit is $1,445,203. Health Care Insurance update and discussion Mr. Ross confirmed that the HMO insurance plan is increasing nine percent and the PPO plan is increasing twenty percent. Majority of the employees are on the HMO plan and thus reduces the general fund budget by $84,000 and the school department budget by $126,000. It is expected that employees currently on the PPO will switch to the HMO Plan at open enrollment in May. If employees move to the HMO plan it will create further reductions to the budget. Mr. Schoonveld attended the insurance meeting along with Mr. Ross and stated that next year, if the other groups on grandfathered plans are accepted; it will cause significant increases to the entire group. The grandfathered plan has a rate increase of twenty five percent. Mr. Ross also stated that many things can affect our future rates. Examples include a few bad claims or changes to legislature from Washington. He confirmed that currently our group is stable and continues to build up reserves. Ms. Murphy asked where some towns have gone if they are not participating in this group. Mr. Ross answered that the Town of Easton went to the GIC, but they are regretting the decision. The Town of Norton adopted a section of state law that allowed them to move to a plan that matched the most popular GIC plan which is a high deductible plan through Tufts. Mr. Wilk asked if this plan could be used as a negotiating tool with employees. Mr. Ross answered that the unions would never choose a high deductible plan; it would have to be forced. Mr. Wilk suggested that funding a health savings account for all employees may ease the transition to a high deductible plan. Discussion on prioritization of proposed budget items beyond the level services budget Mr. Ross presented his prioritized list of additional staff requests for the 2018 fiscal year. The top three priorities from the general fund are a bookkeeper in Finance, an EMS Coordinator for the Fire Department and a Skilled Laborer for the Highway Department. There are a total of six positions with an impact of $315,323. Mr. Trowbridge explained that Mr. Ross, as the Town Manager would get to prioritize these positions. As Town Manager it is his budget and the Selectmen did not vote on his list of priorities. I I P a g e Budget Subcommittee Meeting February13, 2017 Mr. Wilk asked the committee to define level services, explaining there is a need for a common definition amongst the committee. Mr. Vozzella stated it is the same number of full time equivalents or todays goods and services at tomorrow's prices. Everyone was in agreement with this common definition. The discussion then moved to the school committee budget. Mr. Gianetti presented the handout, Mansfield Schools - Education Needs FY18. The handout shows the top priority for the school department is the ESL Teacher followed by a Kindergarten Teacher. There are three other positions being requested with a total increase of $250,000 to the budget. It was suggested that the ESL position be listed as a mandated position for town meeting, since it is required by the state to have this position. Mr. Vozzella noted that this position is offset by a retiree, and at a lower cost. Ms. Cavicchi explained that currently there are 23 students per Kindergarten class, and this additional teacher would reduce the class size to 21 students. The committee continued discussion of half day versus the full day Kindergarten program. Mr. Trowbridge supports the full day program, but personally would not have sent his own children. He stated that in many cases it has become a less expensive day care option for families. Ms. Murphy commented that the state had provided initial funding for communities to offer full day Kindergarten options, with the intent that eventually the communities would then pick up the costs. She stated that Mansfield is now beyond where most communities are. Educationally she believes it is important for children to have full day Kindergarten. Structured play time is being added back into the school day. Mr. Schoonveld stated there are nine classes for full day Kindergarten students and two classes each with half day students. On September V students pay $3100 for full day kindergarten, however not everyone is paying. It is projected that the school will collect $390,000. Ms. Walsh asked how many are paying. Mr. Vozzella answered that around 78% are paying and the others are getting financial assistance or are on IEP's. Mr. Vozzella stated that the revolver is projected to have $330,000 left as of July 1st. It has been planned to use this over the course of the next three years. The new bus contract is a huge cost to absorb. Mr. Gianetti commented that the enrollment reduction hit the middle school this year, and this is the year they have to reduce a teacher per grade level. The middle school reorganization is helping pay for the all -day Kindergarten, but the issue is lost revenue not staff. Mr. Wilk asked what options are available to close the gap and asked if the whole revolver fund should be used this year. He then asked what options are available to close the gap over the next one to three years and how can costs be reduced further. Mr. Vozzella commented that there would be a $16,000 savings by not having half day run of the school busses. Mr. Schoonveld suggested moving healthcare to a different plan that would save $1,000,000, but noted it has a higher risk of causing morale and staff problems. Mr. Vozzella suggested that he and Mr. Stanbrook meet to help reduce the budget further. Mr. Schoonveld commented that the committee needs to be creative with ideas, but these ideas also need to be viable and sustainable for the following year. Mr. Wilk agreed that the town has been running more efficiently, and the necessity for the plan to be viable. Mr. Ross stated that now there are serious choices to be made. He stated that many surrounding communities are more fully staffed and he is not sure how they are funding it all. Mr. Ross furthered commented that Mansfield has higher salaries compared to surrounding towns. Majority of the town department heads are paid above the average salary. Mr. Trowbridge stated that keeping staff in their positions is positive for the town. Mr. Wilk stated that the committee has spent five years getting everything trimmed to create a balanced budget, now there are fewer areas to find cuts. He further commented that it is hard to compare Mansfield to a town like Foxboro that is a company town and has Gillette Stadium. Mr. Ross commented that the town has spent a lot of funds in the past six years on infrastructure. Previously only minimal maintenance was being done and the schools were only doing catch - - -- — ---- - -- - ---- -- - ...-..--- --------------- - 21Page ---- Budget Subcommittee Meeting February13, 2017 up. Mr. Wilk noted that the town roads still need work, and Mr. Ross also noted that there is more to do everywhere in town. Next meeting will be held on Tuesday, March 14, 2017 at 6pm. Discussion for the next agenda will include ambulance fees, building, electrical and plumbing permits. Any fees that the town charges should be reviewed to see where it may be possible to increase revenues. Mr. Wilk commented that if a surrounding town charges $100 for a building permit and The Town of Mansfield is only charging $75, than the fee should be increased to match other surrounding towns at $100. Meal tax was also discussed, but Mr. Ross stated that towns cannot go above the Massachusetts state meal tax rate that it is at currently. Audience questions and comments No Discussion Approval of minutes Motion: To approve minutes from January 30, 2017. (Trowbridge/Walsh) Passes 6:0 Adjourn Motion: To adjourn the February 13, 2017 Budget Subcommittee meeting at 7:20pm. (Trowbridge /Walsh) Passes 6:0 Chairman Signature Minutes Clerk Signature Date Date Documents used in this meeting: Town of Mansfield FY18 Budget Calculations as of 2/13/17 Town of Mansfield FY18 Employee Benefits Expenses by Department as of 2/8/17 Memorandum from William R. Ross to Board of Selectman and Finance Committee Mansfield Schools — Educational Needs FY18 3)Page Budget Subcommittee Meeting February13, 2017