FINANCE COMMITTEE
MINUTES – JANUARY 6, 2003
TOWN HALL – 7:30 P.M.
Members present: Tuck, Heitin, Pietal, Grasfield, Bluestein, Gillen, Goodman, Hearne, Sirkin, (Garza). Members absent: Atlas-Gordon, Bergeron, Fixler.
1. Conservation Agent G. Meister, accompanied by Conservation Commission Chairman M. Arguimbau, presented level funded, minus 3% and plus 5% Fiscal 2004 proposed Conservation Commission budgets. Meister explained that, as contract negotiations were not completed until after Fiscal 2003 budgets were approved, the Conservation Commission had not accounted for salary increases. This led to an expected $3,000 deficit which may be covered by other funds. He estimated 3% salary increases in budgeting for Fiscal 2004. Arguimbau said that the biggest flux is in salaries, other budget items remaining about the same. Meister explained that legal expenses are used in part to avoid making mistakes that would cost the town more. Heitin pointed out that $2,300 was spent in legal through November. C. Tuck
requested that the Commission return with a minus 5% budget.
2. Town Clerk M. Chused stated that a level funded or minus 5% Fiscal 2004 budget would be devastating to the office. She explained that the budget is mostly salaries, and that everything else, except passports, is state mandated. Passports bring in money to the Town. She expressed the belief that the Assistant Town Clerk’s hours would have to be reduced from 37.5 hours weekly to 36 hours in the level funded budget and to 31.5 in the minus 5% budget, making it a part-time position. Taking into consideration step increases, not yet included, would reduce the hours even further. She was asked to verify options with the Executive Secretary. She remarked that her office generates $45,000 in fees. In answer to Tuck’s suggestion that the window be closed one day a week, she replied that the
work depends on the year and the season and that she might consider not doing passports at certain times.
3. Chused reported that the federal government has authorized doubling the fees for passports. Passports are issued between nine A.M. and 4 P.M. to allow time for paper work. Passport costs are for manila envelopes, postage and time. She expressed the belief that a passport revolving fund could compensate for the loss of Assistant Town Clerk’s hours. Tuck suggested that one third of this might be applied to the Election and Registration budget and two-thirds to the Town Clerk Budget. Some Finance Committee members expressed objections to Town Departments’ retaining money raised by those departments instead of those funds going into the General Fund.
4. Chused stated that she is submitting a Town Meeting Article to increase Town Clerk’s fees. She assured the Committee that the proposed new fees represent the actual cost of the service. She also looked at the fees of other towns.
5. The Town Clerk added that she is also submitting an article that would give her authority to fill election day vacancies on election day.
6. Goodman distributed copies of a summary of medical insurance. He pointed out that receipts each month have been less than paid out in claims. He documented a negative trust fund balance of $159,336 as of December 31, 2002 and a projected annualized expenditure of $371,581 over the appropriation. It was pointed out that the potential effect of postponing the June payment until July, as was done the previous year, would effect the projections and that an increased employee percentage could offset expenditures. Questions were raised about the water department figures. In response to questions about budgeting insurance for more employees in Fiscal 2004, Grasfield pointed out the possibility of increased retirees. Goodman reported that the insurance advisor had talked about a 25% increase in health
insurance costs. He also reported that the advisor was known for selling self- insurance to cities and towns.
7. On the advise of Town Counsel, Long Term Facilities Committee Chairman M. Baskin asked for the Finance Committee’s opinion on a possible conflict of interest because of his business relationship with STV, the architectural firm selected by the Standing Building Committee to perform the schematic and design development for the Wilbur School. He had been advised to receive written determinations from the Finance Committee and the Selectmen that his financial interest is not so substantial as to be deemed likely to affect the integrity of the services the Town may expect from him as a employee. He explained that he is off the Standing Building Committee and not involved with contractural relationships. He did sit in on interviews, but did not participate. He described his relationship with STV,
both working for them and hiring them, primarily in transportation. He added that his relationship varies but that half of his current business is for them. Grasfield suggested getting an opinion from the State. Tuck expressed confidence in the advice of Town Counsel and agreed that there is a conflict and the Committee was being asked to decide whether to give a waver. Gillen and Pietal thought the conflict could jeopardize the project. Baskin added that it could undermine his capacity to advocate for the project.
8. Moved and Seconded to draft a letter stating that the Finance Committee understands the conflict and has determined that it is not so substantial as to be deemed likely to effect the integrity of his services. Vote: 3-5-1
9. Grasfield reported that he had discussed the Personnel Board’s Fiscal 2004 proposed budget with that Board and that they expressed no concern about living within a 5% minus budget.
10. The minutes of December 9 were accepted with the following changes: In #1, add “of operations” between “one-half hour” and “can be cut” and, in #3, replace “not an” with “neither an extraordinary nor” and delete the sentence beginning with “At the pre-Town Meeting all”. Vote: 8-0-1
11. Grasfield reported that the Priorities Committee was presented with an estimated 5% reduction in the Fiscal 2004 operating budgets because of uncontrollables. He stated that the increase in health insurance consumed the 2 ½ per cent increase allowable in property tax. Data Processing was discussed as a “shared service” rather that “fixed and uncontrollable” to allow for the addition of a one half position. This position had been eliminated from the Fiscal 2003 operating budget but continued as a capital expense. He said that all at the Priorities meeting had agreed that the library needed to retain certification. He also reported discussions on reviewing the budget allocation among the sectors and allocating Health Insurance. Grasfield advocated
consideration of establishing a position of Director of Finance. Goodman wanted details on how the library arrived at their figures and a detail of their salaries. Tuck expressed disagreement with labeling any budget as “special” and said that the job of the Priorities Committee was to prioritize the budgets.
12. Grasfield reported that the Personnel Board had reviewed their by-laws and talked about personnel policies.
13. Pietal stated that he would forward a draft he prepared of “Its Your Money” via e-mail for editing. He also reported that A. Cheyer has a town Meeting Article to rescind unspent authorized borrowing.
12. The meeting adjourned at 10:15
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