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HomeMy WebLinkAboutFinance Comm 03/30/2017Finance Committee Meeting Minutes March 30, 2017 REMNED Present: Walter Wilk, Chairman; Scott Feely, Vice Chairman; Liz Christd,`Citrk, f- 'WrDbViMEagle; Michael O'Brien; Yogen Chemburkar; and Michael DeSantis 2011 JUN 23 A 11: Ob 1 1. Cali the Finance Committee meeting to order and review the agenda 1"1 rti IS ? F'_ 0 Chairman Wilk called the meeting of the Finance Committee to order at 7:02PMIA �Oolr,pjbjw�g_pro*nt. 2. School Department Budget Discussion Mr. Vozzella presented the FY18 budget for the Mansfield School Department. Mr. Vozzella explained the budget process begins in October and templates are sent to all the cost centers and each one has multiple line items with details behind each item. The budget is a bottom up zero based budget, and he stated each line item is looked at as a new item each year. Level Services Budget is up 5.3% over last year, without adding any additional staff, but five additional staff had been requested for a cost of $250,000. To resolve the gap the school and town work together. The main budget drivers this year were contractual obligations, transportation and special education placement. Chairman Wilk noted that the healthcare cost for school employees is all in the Town side of the budget. Mr. Vozzella stated that collective bargaining obligations was $1,184,000, special education placements was $520,000 (students who go to private schools or residential settings outside the district), and transportation was $400,000. These expenses are non -discretionary. Mr. Vozzella stated that Mansfield has a low outplacement rate and a child in a residential setting can be over $300,000 per student per year; some of the funding is reimbursed but it is not reimbursed until the following year. Mr. Vozzella continued his presentation stating that new technology (new Chromebooks) is going to be covered through capital for $221,000. Free all -day Kindergarten will start in September and that costs $250,000 and staff reductions due to enrollment reductions will offset the all -day Kindergarten. Mr. Vozzella had ten positions that they were looking to get in this year's budget, but only put forward five and realistically he only sees the school getting an ELS Teacher, which is a mandated position by the State. The budget for the school is funded by the operating budget, grants, and revolvers. Mr. Eagle asked where do the grants come from and Mr. Vozzella answered that the Special Education office, but there is not a person dedicated to seeking out grants. Mr. Gianetti stated that years ago there used to be grants, but they are annual, the amount changes, and it is not free money. Many grants are also unsustainable after the grant ends and then you need to lay off the position. Ms. Murphy stated there is a spot on the State website that has all the grants listed. She noted that MCAS tutoring and career transitioning were grants that were taken advantage of recently. Mr. Vozzella stated that Title 1 grant is expected to go down next year and some staff will go back to being supported by the operating budget. Currently there are about forty people supported by grants and nineteen supported by revolvers and four hundred eighty four supported by the operating budget. Mr. Vozzella explained the Mansfield School Revolvers, which are accounts that are self -sustainable and can't run deficits. The revolvers need to be viewed individually and run as separate businesses. Mr. Vozzella then explained circuit breaker from back in 2015 through 2010. Mr. Vozzella then explained Pay -N -Ride and this year there was an eleven percent increase. Pay -N -Ride normally covers two months of expenses. Chairman Wilk explained that there is no competition of bus companies, stating that it is very difficult to just start up a bus company, with huge capital expenses. Mr. Vozzella also commented that our bus expenses are still lower amongst other school districts. Mr. Eagle asked what drove the $400,000 increase. Mr. Vozzella explained that the part time sick pay State law has hurt the bus company as well as minimum wage increases. 3. FY18 Chairman Wilk stated that the Budget Subcommittee balanced the budget at their meeting last week. He stated there are a few risks areas. He noted that if revenue increases as it has been and everything else stays consistent, then at the start of next year budget process we are at a $1,200,000 deficit with salaries and healthcare alone. Free cash is not free cash, it is money left at end of the year that the Town now uses to fund capital projects and should not be used to plug the budget. Chairman Wilk stated that this committee needs to educate people and that no one wants an override. Cutting staff is always an option. He noted that despite the re -zoning changes of the Industrial Park to get higher density buildings to generate more tax revenue has not happened. Revenue has to be increased and healthcare has to be addressed over the summer. The Town cannot sustain ten to fifteen percent a year in healthcare costs, it is a long process and needs to be made and negotiated with all the unions. Chairman Wilk stated that revenue has to go up and expenses have to be controlled. Mr. Eagle asked if departments have the correct amount of employees, noting that it appears that every department needs more staff, and no one is saying they have too many employees. Chairman Wilk answered that years ago there were layoffs across the Town and that departments are not built back up. He stated the DPW has been compared to other towns and the DPW is below many surrounding towns based on size and population. Mr. Feely noted that the police, fire and school who have presented each position they are looking for is valid and supported, but financially there is not money in the budget to support the positions. Ms. Christo stated that it is not the Finance Committee's job; it is the Committee's job to make sure the town as a whole is making sound decision. Mr. Wilk stated that a few years ago after an entire Finance Committee resigned the new Committee did go line by line through the whole budget, and now the Committee felt comfortable with FTE's. Mr. Eagle believed that departments can always find money and asked who is looking and asking that question. Mr. Feely disagreed with Mr. Eagle and stated that based on the size of Mansfield the town is doing more than some towns with less. Mr. Eagle stated that since he is new to the Town and missed what happened back five to six years ago. He thinks it is important for others to understand that the Town has not yet recovered from back then, and that the Committee had gone through the budget line by line to ensure that there isn't excess. Mr. Chemburkar noted that the visibility of the schools budget is better than it has been and with enrollments going down the budget is still going up. Chairman Wilk agreed the budget is more open than it has been and stated that the Finance Committee is an advisory committee and it is the job of the committee to make sure the budget is stable. Ms. Christo added that the residents need to set their priorities; the reality is that the Town can't pay for everything. The Town is trying to increase revenues without raising taxes. BUDGET UPDATE: Mr. Stanbrook presented several handouts. The first one was Budget Calculations as of 3/30/17. He stated that the Budget Subcommittee made recommendations and $92,500 was needed to close the gap for the FY18 budget. Mr. Stahbrook sweated out the numbers and it ends up being $81,758 to close the gap. Mr. Stanbrook is adding back the EMS coordinator. There is a retirement in his office and he would like to add a little more money to replace that position with a broader skillset. Mr. Stanbrook is proposing to use $41,758 of insurance reimbursement on Town Capital Outlay and $40,000 from the police detail revolving on Police Capital Outlay to balance the budget. Chairman Wilk asked if this would leave the Town in the hole next year and Mr. Stanbrook answered that it is a one timer. Mr. Stanbrook explained that in previous years when a detail was hired by a contractor there would be a 10% administrative fee to pay for the billing and administrative services associated with the process. The administrative fee was being placed into the Police Detail Revolver Fund instead of the General Fund. This has been fixed going forward but about $50,000 was in the revolver that should not have been. Mr. Stanbrook stated that there should be a small cushion for those companies that do not pay for their detail. Mr. Stanbrook then moved to the second page of the handout. Chairman Wilk stated that free cash went from $500,000 to $400,000 keeping $150,000 in the budget, and next year the Committee will need to get to a true balanced budget, with no one time "gimmicks." Ms. Christo stated that free cash is not operating revenue. 14. Discussion of FY18 Budget Presentation of Emolovee Benefits Expenditures- John Stanbrook I Mr. Stanbrook stated that this was brought up a year ago and the Department of Revenue sets rules and regulations. He stated that every report requires a lump sum, and currently the budget has a line item for benefits in each department. He is proposing that this year the Town has one bucket for employee benefits, which would be a duplicated time saver with the Treasurers Department who pays out the benefits. Mr. Feely agreed that this makes things more efficient. Chairman Wilk asked how the Town is tracking on revenues and Mr. Stanbrook answered that he can see State monthly numbers tomorrow. Lastly the Mr. Stanbrook presented a handout of Town Meeting Warrant articles. Chairman Wilk stated that the next meeting the Finance Committee will discuss each article in greater detail. 1 5. Town Manager Contract Renegotiation Discussion I Chairman Wilk stated that he spoke with head of the Board of Selectmen and that the Finance Committee would be informed at a future date. Chairman Wilk congratulated Mr. Stanbrook for his new role as Acting Town Manager. 6. Town Meeting Update (Date, Committee presentation, Articles) This was discussed above and the presentation will be started at the next meeting. 7. Approve Meeting Minutes Motion: To approve the meeting minutes from February 16, 2017. (Feely/Chemburkar) Passes 7:0 8. Board CIP: There was no update. Audit: There was no update. Budget Subcommittee: Chairman Wilk noted that it was all discussed earlier in this meeting. School Committee: Ms. Christo stated that Mr. Ed Donahue will be replacing Mr. Ed Vozzella in the school's business office. DPW/Public Safety Complex: Chairman Wilk stated that once temperatures are above thirty degrees foundations can be poured. Downton Strategy Committee: Chairman Wilk stated that the Downtown Committee met last night and are ensuring the are getting flag poles up and they have asked Mr. Rick Alves to take a look behind Jimmy's lay out a way it should look. 1 9. Items not known within 48 hours I Chairmen Wilk stated the Board of Selectmen is putting together a search committee to fill the Town Manager position and has asked for a member of the Finance Committee to be on the search committee. Mr. Feely and Mr. Eagle were both interested but it was decided that Mr. Feely had more experience on the Finance Committee would be the Finance Committee representative on the Town Manager Search Committee. Motion: To appoint Mr. Feely to the Town Manager Search Committee. (Christo/O'Brien) Passes 7:0 10. Audience Q&A There were no audience questions or comments. 11. Committee member comments DeSantis are next meeting on Motion: To adjourn the Finance Committee Meeting at 8:58PM. Passes 7:0 Sig ture z zi 11 Date Documents Used in this Meeting: Mansfield Public Schools FY18 Budget -Finance Committee Update March 30, 2017 Town of Mansfield FY18 Annual Town Meeting Article List as Posted FY18 Town of Mansfield Annual Town Meeting Funding Sources as of 3/30/17 Town of Mansfield FY18 Annual Town Meeting FY17-Related Articles Funding Sources as of 3/30/17 Town of Mansfield FY18 General Fund Revenue Summary Using Moderate Assumptions as of 3/30/17 Town of Mansfield FY18 Budget Calculations as of 3/30/17 Town of Mansfield FY18 Article 1 Breakdown as of 3/30/17 Town of Mansfield FY18 General Fund Budgeted Revenues & Expenditure Department Summaries 3/30/17