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HomeMy WebLinkAboutFinance Comm 02/04/1999Minutes of February 4, 1999 Present: James Noris, Chairman Andy Gazzolo Margie McShane FINANCE COMMITTEE MEETING John D'Agostino, Town Manager Richard Boucher, Town Treasurer Jack Beliveau, Electric Lorilee Fish, Parks & Recreation Jeff Siena, Airport GENERAL DISCUSSION Electric Budoet Dennis Grady Frank DelVecchio Gerald St. Hilaire Louis Amoruso, Selectman Beatrice Kearney, Town Accountant Jerry Scherma, Veterans Scott Leite, Health Mr. Beliveau handed out Electric Department information packet. He stated that the goal of the department was to provide greater support for the Town, better cost controls and accounting system. Mr. Beliveau also stated that the Electric Department would be starting a newsletter to ensure better communication with the Town. Mr. Noris inquired what new accounting practices they were looking to implement. Mr. Beliveau stated that in the past the number of days between meter reading has inconsistent. Mr. Grady inquired if the Electric Dept. was looking to expand their services beyond electricity. Mr. Beliveau stated that they are looking into a fiber optic system initially for municipal and schools use and expand if the market demands. Mr. Gazzolo inquired what the start up cost for this would be. Mr. Beliveau estimated it would cost $250,000 to start. Mr. D'Agostino stated that the Town needs to diversify in order to compete to keep customers in town. He stated that they are going to put a committee together to explore the options. Mr. Beliveau stated that the Town could loose businesses if Mass. Electric offers surrounding towns lower rates. It may be more economical for them to relocate. Mr. Gazzolo inquired if the Town could be competitive and not lose money. Mr. Beliveau stated that according to studies that some surrounding towns have done, we could compete. Mr. Beliveau stated that the overtime is mostly unscheduled. He stated that this was a baseline budget, however, some adjustments may need to be made depending on the severity of the weather, etc ... He stated that the Electric Department would be willing to increase it's contribution to the Town in lieu of taxes. Mr. Gazzolo stated that in other towns the amount is based on the value of assets. Mr. Beliveau stated he is not sure how the current contribution was calculated. FINANCE COMMITTEE MEETING Mr. Gazzolo inquired if there was an increase in revenue, if there would be an increase in the contribution. Mr. Beliveau stated that was possible. Mr. D'Agostino stated that it would require a vote by the BOS. Mr. St. Hilaire inquired about the meter reading system. Mr. Beliveau stated that the reading is currently done by hand held units. Mr. St. Hilaire inquired if they would be looking into a more efficient way of reading such as a dial-up system. Mr. Beliveau stated that the dial-up system was actually an old type of system and not necessarily more efficient. Mr. Gazzolo inquired why the revenue went from 2.3 million in 1995 to a negative the next year. Mr. Beliveau stated that the rates were cut and there was a significant drop due to Merkens Chocolate. Mr. Noris inquired what an inverter consisted of. Mr. Beliveau stated it was the wire, transformer, poles, etc... Mr. Beliveau stated that the department needed some capital improvement items such as a SCADA system. He stated that due to the way switching is currently done, 4 people are needed on overtime. Ms. McShane inquired if the SCADA system would eliminate the overtime. Mr. Beliveau stated that 1 person would still be needed to switch from the stations. Ms. McShane inquired if this switching could be covered in a current job description. Mr. Beliveau stated that the switching is not done during normal working hours, and those hours are dictated by the companies the Town buys electricity from. Mr. Noris inquired about the goals of the department. Mr. Beliveau stated that historically that the department had not been consistent in the number of days in between billings. Mr. Noris thanked Mr. Beliveau for his presentation. Veterans Budoet Mr. Scherma handed out informational packets to FINCOM. He stated that he not only uses town funding, but federal funding as well to take assist the Veterans. He stated that $68,000 was given directly to Veterans from the Federal Government. Ms. McShane inquired if his department serviced 13 Veterans as stated on the last page of the handout. Mr. Scherma stated that the number was approximately 2/3 higher, 13 represents the number of cases the Veterans Agency approved for benefits. Mr. St. Hilaire inquired about the increase in the salary line item. Mr. Scherma stated the increase was due to additional responsibilities he had assumed. Ms. McShane stated that she thought he had been given those new duties last year and was given a raise at that time. Mr. D'Agostino stated that he was given a raise for assuming the new position last year. FINANCE COMMITTEE MEETING Mr. Scherma stated that he had taken more duties since then. Mr. D'Agostino stated that he was now dealing with the Unions regarding grievances, etc... Mr. Scherma stated that the telephone line item increased due to his additional duties. The professional development line item has increased due to the number of seminars to be attended for both jobs. He stated that the benefits line item increased due to demand and is based on the previous year's budget. This number varies according to the number of applicants and their needs. Mr. D'Agostino stated that 75% is reimbursed from the Federal Government the following year. Mr. Scherma stated that he would like a new computer. Mr. DelVecchio inquired about the duties as the Assistant Director of Personnel Services. Mr. Scherma stated that he deals with the safety committee, Union grievances, arranges for drug testing and deals with workers compensation claims. Mr. Grady inquired what new responsibilities he had taken on that weren't in his job description last year. Mr. Scherma stated that the increase reflects a merit increase for having done a good job and that his role in the job had expanded. Mr. DelVecchio inquired how much time was used for personnel issues as compared to Veterans issues. Mr. Scherma stated more time was spent on personnel issues. Mr. Grady stated that it appeared that he was requesting a $3000 merit increase. He inquired if he belonged to a Union. Mr. Scherma stated that he pays Union dues, but does not participate in the Union. Mr. Grady inquired if he received other Union benefits. Mr. Scherma stated he did not. Ms. McShane stated that adding 2/3 to the 13 people the Veterans Agent services would be approximately 22 people. She inquired how Social Services serviced 3900 people and requested less funding. Mr. D'Agostino stated that Social Services is more of a referral service, were as the Veterans Agent pays benefits as well as gives referrals. Ms. McShane inquired if Veterans Services and Social Services could be combined to save money. Mr. D'Agostino stated that it would be against the law. Mr. Noris thanked Mr. Scherma for his presentation. Recreation Bud0et Ms. Fish stated that the season support line item was decreased. She stated that the heating expense was expected to increase due to the Plymouth Street facility. She stated it had previously been paid out of the electrical line item. Mr. Grady stated that if it was previously paid out of electricity and now the heat line item is increased to reflect actual usage, then electricity should be reduced. Ms. Fish stated that electricity was not reduced because the usage of the fields had increase and the lights are used at the flelds. Ms. Fish stated that the increase in professional development was for training on a new version of the rec trac software. She stated this would cover the out of stated travel and lodging expenses for the training. FINANCE COMMITTEE MEETING Mr. Noris inquired if the increase in the salary line item would be enough to cover the 3% increase. Ms. Fish stated it would, that it appeared lower due to the removal of the 53`d week. Ms. Kearney stated that the department's bottom line had decreased by 3.1% but was not properly reflected because of the elimination of accounts. Mr. Noris inquired about line items 5431 through 5731. He stated that the amount expended year to date was low and yet projected to be used by the end of the year. He inquired if it were possible to cut some if necessary. Ms. Fish stated that some of the expenses would be moved to the DPW when the reorganization was complete, and that money will be needed for food services for meetings and workshops that use to be covered under capital outlay. Mr. Noris stated that technical support was consistently low compared to amount requested. Mr. D'Agostino stated that the position was vacant for a short period of time, and that the difference would most likely be turned back at the end of the year. Mr. Grady inquired how many computer terminals the Recreation Department had. Ms. Fish stated 3. Mr. Grady inquired how many full time employees the department had. Ms. Fish stated 2. Ms. McShane inquired about the total number of employees for the department. Ms. Fish stated anywhere between 2 and 50 depending on the season. Mr. Grady inquired if all the terminals were used at all times. Ms. Fish stated that 2 full time workers worked 37-1/2 hours a week and there is a part time person that works 20 hours per week. Mr. Grady inquired how many hours were actually spent on the computer. Ms. Fish stated that approximately 80% of their time was spent on the computer. Mr. Noris thanked Ms. Fish for her presentation. Board of Health Budget Mr. Leite stated that he had forgotten to take the 53`d week out of the salary line item, it should be $48,341. He stated that it was a base line budget, that there were no increases in the operational line items. The department's goal is to provide prompt service to those who need it. He stated that the BOH was essentially the police for health issues. Mr. Noris inquired about the $7000 reduction. Mr. Leite stated that it was the $7200 reserve fund transfer that had been added to the current budget. He stated that it would be turned back to free cash because they were able to resolve the matter without additional legal fees. Ms. McShane inquired if the secretarial support increase was contractual. Mr. Leite stated it was contractual and represented the 3% increase plus a step. Mr. Leite stated he would be happy to discuss the GIS system if anyone had any questions. He stated that the system would mean a huge cost savings for labor. Mr. Noris stated that FINCOM would not need to discuss that at this time. FINANCE COMMITTEE MEETING Airport_ Budgee Mr. Siena stated there were no changes to the Airport budget. Mr. D'Agostino inquired when the lease would be up with Powel. Mr. Siena stated it would be up in the year 2002. Mr. D'Agostino stated that the FBO should never be the same as the individual running the airport. Mr. Noris thanked Mr.. Siena for his presentation. Ms. McShane inquired about the rails to trails funding, she heard the State was not giving any funds. Mr. D'Agostino stated that the funding would be delayed due to other big state projects, such as the big dig, but that the State would be funding the other projects in FY'2000. He stated that the town is in the process of setting up an agreement with Norton for a portion of the design phase. He stated that the design must be complete in order to qualify for funding. TYeasurers Budget Mr. Boucher stated that the increase in personnel services represents a contractual 3%. He stated there was an error in the secretarial service line item. Mr. Noris inquired about the season service line item. Mr. Boucher stated that it was for the tax season and for someone to work on the tax titles. Mr. Noris inquired if the money collected would show in estimated receipts. Mr. Boucher stated that it is added to free cash and doesn't show as revenue. Mr. Grady inquired about the service contract for the mail opener. Mr. Boucher stated that the machine cost over $1000 to replace. Mr. Gazzolo inquired if the printing of bills could be done in house. Mr. Boucher stated it could not because the munis system cannot handle postal coding. He also stated it was more cost effective to contract it out. Mr. Grady inquired how much in taxes he thought would be uncollectable. Mr. Boucher stated approximately $500,000. He stated that 1996 through 1998 still needed to be done and it was not part of the $700,000 listed as uncollected to date. Mr. Boucher stated that the telephone line item will be overexpended, it was underfunded this year. Mr. Gazzolo inquired about line item 5301. Mr. Boucher stated that it had been underfunded this year. Mr. D'Agostino inquired where the 17reasurers Department stands on the Y2K problem. Mr. Boucher stated that as soon as they get the new server his department would be all set. FINANCE COMMITTEE MEETING Data Processing Budget Mr. Boucher stated that the Town Manager wanted to hire a full time computer person. He stated that he and Betty Amicone are currently getting weekly stipends to perform the necessary functions right now, however once the new person is hired, the stipends will be cut. Mr. Amarouso inquired if the town could use another company's software for because the licensing fees are so high with the one we currently use. Mr. D'Agostino stated that the town might be able to however the data transfer may not be compatible. Mr. Boucher handed out the revenue and dept services spread sheet. Mr. D'Agostino inquired if the recent override is shown. Mr. Boucher stated it was not yet. Mr. Grady inquired if the State reimbursed 2/3 of the principal and interest. Mr. Boucher stated that the State goes by the total cost of the project. Mr. Gazzolo stated that the Town should have a forecasted tax rate for the Town Meeting. Mr. Noris stated that Mr. Moretti had informed him that Mr. Gurek was leaving and a search committee would be needed to find a replacement. He asked for a volunteer to serve on the committee. MOTION: To appoint Andy Gazzolo to the Search Committee. All in favor. PASSES. Mr. Gazzolo stated that FINCOM needed to put together an article for the town meeting for the stabilization fund. Mr. D'Agostino stated that the warrant was closed. He suggested adding one to the Fall Town Meeting when they know how much free cash there is. Mr. Noris stated that a memo needed to be sent to the Town Manager to make sure that an article is placed on the warrant for the stabilization at every Town Meeting. Ms. McShane when the suggested budget cuts were going to be reviewed and if anyone was tracking them. Mr. Noris stated that FINCOM would meet to discuss proposing budget cuts. Mr. Gazzolo inquired if FINCOM was getting monthly expenditure reports from Accounting. Mr. Noris stated he was. Adjournmen 10:00 .m. Signature Dat- qlqlqq o Approval Next meeting will be Tuesday, February 9, 1999, 7 p.m.