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HomeMy WebLinkAboutFINCOMM 02/16/2017Finance Committee Meeting Minutes February 16, 2017 Dr Present: Walter Wilk, Chairman; Scott Feely, Vice Chairman; Members: Michael.O'Brieny`y g i he - b4rkat• nd Michael DeSantis Also Present: William Ross, Town Manager; John Stanbrook, Finance Director and Town Accountant; ntantFiirre Chief � f Neal Boldrighini, Police Chief Ron Sellon and Carrie Champagne, Minutes Clerk 2911 r`iEJS I Absent: Liz Christo, Clerk and Brian Eagle, Member 11. Call the Finance Committee meeting to order and review the agenda I Chairman Walter Wilk called the meeting of the Finance Committee at 7:12pm to order on February 16, 2017. A quorum was present. Chairman Wilk then shared the news that Jim Bazinet a former member of the Finance and Audit Committee had passed away, and expressed thoughts and prayers for his family. 2. Fire and Police Budget overview with focus on FTE - Chief Boldrighini and Chief Sellon Police Department Update: Chief Sellon provided a handout of the police departments FY18 budget and a presentation titled Capital Requests for FY18. The 911 regional dispatch center is a project that will improve services, save money and bring additional sources of revenue. Chief Sellon is not requesting any additional positions this year, but next year there is a need for an additional school resource officer that would be able to come out of the cost savings as a result of the regionalization. Chairman Wilk asked what the cost would be for that officer and Chief Sellon confirmed the baseline salary for an officer is $75,000 including benefits. Chief Sellon then stated that 50 West Street is estimated to need five million in upgrades to make it a regional dispatch center and that will come from state funding Chief Sellon believes this was a good opportunity to re-engineer our own business model, but also able to save the Town of Mansfield approximately six million dollars with this project. Chief Sellon moved the discussion to the fleet replacement schedule which can also be found in the handout. Vehicles are replaced every three years and vehicles are both leased and purchased. By keeping a vehicle for 3 years instead of 4 years they are able to recoup the most money. Mr. DeSantis ask why it is done this way. Chief Sellon answered the town does not have a financial obligation beyond three years at any given point and allows for financial flexibility. Chairman Wilk further answered that a financial analysis was done a few years ago and found that it was less expensive to do these capital leases than buy with the interest rates through the program with Ford Motor Credit. Chief Sellon noted that it is not a traditional lease that consumers are able to take advantage of and Mr. Ross commented that it is a special program for law enforcement vehicles. Chief Sellon further commented that the regional communication center and through state 911 will now pay for things that would have been out of the tax payers pockets. Chairman Wilk asked if we are delivering on what we said at the town presentation. He stated he knows financing came in below the estimate and stated that Chief Sellon has done a great job getting everyone on board. Mr. Ross stated that he has mailed off the copies to the state and the district is official. He further commented that all selectman voted unanimously in each of the four communities. Additionally the town saved 1-2 million dollars in the new safety complex that does not have a dispatch center. Chief Sellon also mentioned that this saves lives, instead of a 911 cell phone call going to Framingham for dispatch it will come directly to Mansfield and minutes save lives. Mr. Feely asked about the implementation plan of getting this project done. Chief Boldrighini answered that the implementation plan is over two years. They have also found a secondary grant that will cover $200,000 towards radio and technology. The rest of the funding will come from the state. The plan is multifaceted there will be an outside support to make sure the technology is accurate, construction to the building will occur and Chief Boldrighini stated that it comes as a substantial sacrifice that Chief Sellon has committed to changing his operations to make this project happen while still occupying the space. There will also be a virtual consolidation to get everyone on same management system requiring the rebuild of the radio infrastructure. Chief Boldrighini stated the plan is sound but it is very aggressive, but it has a great group of people and have a great model in place. Chief Sellon then stated that the two projects are running parallel and hopes to have them open simultaneously versus having an overlap. The longer we have two sites running the same job the more it will cost. Mr. DeSantis asked if there are any surprise costs that should be accounted for. Chairman Wilk states that this would be an item for next year budget cycle, nothing for this year budget cycle and that by this time next year we will know more. Mr. Ross stated that all the preliminary work, radio study and preliminary budget are all complete. Currently Kaestle Boos Associates is laying out the interior and has 99% of exterior design complete. Mr. Ross stated how well this group has all worked together and it was a great team effort. This is a model of how things could be done around the commonwealth. Fire Department Budget Update Chief Boldrighini began his budget update presentation and stated that next fiscal year he is trying to develop long range plan on operations and staffing. Staffing is the biggest issue the fire department is facing. The fire department has eight man groups but normally is only at seven man groups. This is an enhancement over several years ago when the department was running at only six man groups. Based on the population of Mansfield and comparing other similar communities, Chief Boldrighini believes the department should be at ten man groups per shift. He noted that out of 3,600 emergency runs, 1,400 of them were simultaneous. The department can only hand two simultaneous calls at any given time. If a third call comes in they have to rely on a surrounding town and this happened sixty two times in the past year. Chief Boldrighini states that each additional firefighter costs $100,000 per year, including benefits and he would like to add one per year for next four years. The urgent position needed for the department is an EMS Coordinator. This person would be responsible for $1.18 million in revenue, education, inventory, maintaining licenses and communication with hospitals and doctors to ensure that each call follows protocols. He further commented that there are fifty regulation changes this year and currently he has two part time employees managing this job and sometimes pulling someone off duty. This position would ideally be filled half way through the year and the person hired would need to be an officer or lieutenant level at $112,000 per year including benefits. Mr. Feely commented that the town cannot effectively improve its revenue generating opportunities in the future without this position. Chairman Wilk asked how much overtime could be saved and Chief Boldrighini answered that it could save about $100,000-$200,000 at the end of four years. Chairman Wilk asked how much they bill for each run and Chief Boldrighini answered there are two rates, Medicare and Non - Medicare and the average is $1,000 per run. The Board of Selectmen has also brought up a potential rate increase to the rates of surrounding towns, and it would increase revenue $212,000 per year. Mr. Ross noted that our fees have to reflect the cost of the service and be justified. The discussion continued with ways to fund the additional staffing and questions were raised if it would be possible to bring on four firefighters this year instead of hiring one per year over four years. Mr. Ross commented that there are grants available that pay seventy five percent of a firefighter's salary the first year. Chairman Wilk stated that grants are a concern, after the step off the town needs to be able to sustain their positions three to four years from now. By adjusting ambulance rates, Mr. Wilk believes the town can afford two additional firefighters and is concerned that at level services we are still over $800,000 short without adding any additional staffing for next year. Mr. Chemburkar noted that the committee needs to consider the big picture that the town is not growing at a fast rate. Mr. Ross also brought up the idea of creating an enterprise for the ambulance fund and Chief Boldrighini stated that he would like to do that and stated other towns do this. Chief Boldrighini then asked the committee to discuss the handout on mobile integrated healthcare. The chief believes this is the direction of future heath care and under this model it reduces costs. He stated that many times people go to the hospital for the sniffles or just not feeling well and have no other access to healthcare unless they call an ambulance. Insurance companies and hospitals are recognizing this problem of many elders going home to no one to care for them so they go back to the hospital via ambulance, the most expensive route. The concept is in the early stages of legislature but it appears that this can fill the gap between visiting nurses and immediate care and this could provide a revenue source that insurance companies are on board with because it is less expensive than a patient taking an ambulance and spending time in the hospital. Mr. Feely also believed that providers and insurance will want to make this concept work and that the infrastructure is already in place. Chairman Wilk asked if there will be additional costs or additional staffing needed. Chief Boldrighini noted that he believes he can make it work with his current staff and there is no additional liability because a release would be signed, however, there may be additional liability insurance needed. Chairman Wilk reviewed the next steps of the committee. First it appears that the fire department needs an enterprise or a revolver so costs can be seen easily. It also was suggested that Mr. Ross create a model first with the increase fee and add additional firefighters one through four and then a second model using mobile integrated health care. Mr. Ross commented that this is why he has prioritized Mr. Stanbrook's bookkeeper position so that this work can be completed. Chief Sellon and Chief Boldrighini left the meeting. 3. Healthcare update -Town ManagerWilliam Ross Mr. Ross confirmed that the HMO plan had a 9% increase and the PPO plan is a 20% increase, with these changes the general fund saw a reduction of $85,000. Mr. Ross anticipates that more employees will switch from the PPO plan to the HMO with the increased cost of the PPO, thus a further reduction in the general fund budget after open enrollment is completed in May. Mr. Ross stated that he will suggest an alternative plan to the Board of Selectmen that can be accepted. Mr. Ross stated that the town has a deductible plan now but no one has enrolled in the plan. Mr. Ross also shared a new program that the town is implementing to save employees the copay when purchasing their maintenance medications for Tier One and brand name medications. The Town of Fall River has had success working with this company and has seen significant savings. Mr. Ross also continues to look at other options for healthcare savings, but there are state law limitations. 4 Sewer Enterprise: Using Sewer Retained Earnings to pay off callable debt late in FY18 Mr. Stanbrook stated that this item is for the warrant next May at the annual town meeting. The recommendation is to use sewer retained earnings to pay off callable debt. The amount used to pay off the principal of $1,045,000 in principal and will save eight years of interest expense of $193,465. Motion: To make a motion to recommend that the Board of Selectmen use Sewer Retained Earnings are used to pay off callable debt in FY18 and take the necessary planning steps to do so. (Feely/Chemburkar) Passes 5:0 5. Sewer Enterprise: Using paid -off Sewer Betterments towards outstanding Sewer debt Mr. Stanbrook recommends using $28,015 of paid sewer betterments towards outstanding sewer debt. This is an item for this year's annual town meeting. He noted that paid sewer betterments can only be used on sewer betterment debt and must be used by a certain date. Mr. O'Brien asked if it is common to have these funds or for people to pay early. Mr. Stanbrook answered that when people sell a home they will pay these early. Motion: To recommend the use of sewer betterments towards outstanding sewer debt. (Feely/DeSantis) Passes 5:0 6. Sewer Enterprise: Making a one-time payment from Sewer Retained Earnings towards Sewer OPEB costs Mr. Stanbrook commented that he and Mr. Schoonveld need to discuss this item further and need to talk with the actuary for the Town of Mansfield. It was recommended that this item be discussed at a later time. 7 Annual Town Meeting Timeline and Finance Committee responsibilities Chairman Wilk asked when the Annual Town Meeting is planned and Mr. Ross answered that it is the first Tuesday in May and the warrant closes on March 1, 2017. Chairman Wilk also asked for confirmation if the school roof is an included warrant, and Mr. Ross stated that it is included. 8. Discussion of next steps on Municipal and School budgets Mr. Wilk stated the budget subcommittee met last week. There is over an $800,000 delta just to get to level services. The budget was impacted the most by healthcare increase; school bus increase and special education fund increased before even adding any of the additional FTE's that were requested. Mr. Vozzella will be meeting with Mr. Stanbrook to see where funds can be found. 9 Board Updates School Committee/Budget Subcommittee: Budget and School Committee update is in previous agenda item. CIP: This committee has not met. Mr. Ross noted the need for the committee to meet and create a five year plan for Mr. Stanbrook. Audit: Mr. DeSantis stated there has not been a meeting scheduled, but Mr. Ragazzo the chairman of the committee would like to be an agenda item for a Finance committee meeting. Ms. Champagne will get him added as an agenda item for the next meeting. DPW/Public Safety Complex: Mr. Ross updated the committee stated there has been lots of the underground work completed, including sewer, water and electric. It is expected that digging and pouring of foundations will happen first week in March. Mr. Ross commented that the metal structure of the building will arrive in May and will go up fast. There is a gap in the schedule to account for weather, but so far the project is on schedule and in good shape. Mr. Ross also stated that they have received several submittals for the Public Safety complex. The next round of borrowing will be in May. Downtown Strategy Committee: Mr. Ross commented that there is a meeting scheduled for the 28ch 10. Items not known within 48 hours Mr. Stanbrook presented a request for the Finance Committee to approve a reserve fund transfer of $90,000 from the General Reserve Fund to the General Fund DPW Administration Personal Services Employee Benefits. When the FY17 DPW Budget was voted, a DPW employee benefits were split between highway and administration according to an employee list, but the list was subsequently corrected and updated. This has resulted in a DPW administrative employee being under budgeted and the DPW Highway budget being over budget. Chairman Wilk noted that the school budgets can move between departments and lines unlike the town budget. Funds stay in a line item and can only be transferred at Town Meeting or by the Finance Committee. There were no further questions from the committee members. Motion: To approve a transfer of $90,000 from the General Reserve Fund to account number 014211 -517000 -General Fund DPW Administration Personal Services Employee Benefits. (DeSantis/Feely) Passes 5:0 11. Approve minutes Chairman Wilk moved this agenda to next meeting when all members are present for approval. 12. Audience Q&A None 13. Committee member comments Mr. Ross commented that the budget for snow and ice has been used at this point in time. The state law has changed and no longer requires approval from the Finance committee, as the Town Manager Mr. Ross can authorize deficit spending for snow and ice. Chairman Wilk would like the next meeting to be in three week with the school committee present. Ms. Champagne or Ms. Christo will check for room availability for March 9, 2017. (Note that after this meeting the date was moved to March 16, 2017) 14. Adjourn Meeting I Motion: To adjourn Finance Committee meeting at 9:14PM on February 26, 2017. (O'Brien/Chemburkar) Passes 5:0 Sigri ure / Minutes Clerk Signature 3130117 Date ,3/30//7 Date Documents Used in this Meeting: Town of Mansfield Debt Payment Projections as of 1/26/17 Town of Mansfield FY17 List of Outstanding Indebtedness Town of Mansfield FY18-FY19 Complex Debt Exclusion Calculations as of 1/26/17 Town of Mansfield FY16-FT17 Balance Sheet Account Comparison for Sewer Enterprise Fund as 12/31/16 Odyssey Advisors -Finance Statement Disclosure as of July 1, 2014 Town of Mansfield Request for Transfer from the Reserve Fund dated 2/16/17 Mansfield Fire Department -Safer Grant Explanation Mansfield Fire Department Re-organization/Staffing Plan Mansfield Fire Department -Mobile Integrated Health Care Mansfield Police Department -Capital Requests Presentation Mansfield Police Department Budget for 2018