FINANCE COMMITTEE
MINUTES – AUGUST 25, 2003
TOWN HALL – 7:30 P.M.
Members present: Pietal, Goodman, Heitin, Fixler, Bergeron, Feldman, Hearne, Miller, Rose, Sydney, Tuck, (Garza). Member absent: Hitter.
1. Goodman explained that the Town’s medical self-insurance is comprised of money paid in by town employees and retirees and contributions by the town from the health insurance budget. He explained that the town usually pays 80%, and in some cases 60% of the amount. These funds are used to pay claims. He reported that, for the last few years, claims have been substantially more than what was paid in. In Fiscal 2002, payment for one month of claims was postponed until the next fiscal year, and in Fiscal 2003 two months were postponed. In the last three years, the town portion has more than doubled. He illustrated by referring to copies of a year end medical insurance summary that recent monthly claims have usually been less than the $500,000 being paid in and reported that some believe
it may even out.
2. Sydney pointed out that health insurance is a national problem. Tuck reviewed the history of the town’s use of self insurance. Hearne reported that the town’s insurance advisor, Cook & Co, had estimated an increased cost for a premium based system. Bergeron suggested looking into joining with other towns to be more competitive. Heitin explained the two types of insurance, the town saving by assuming the risk by self insuring and paying a processing fee. Pietal suggested investigating the number of part-time employees eligible for health insurance. Tuck reminded the committee that all unions must agree to any changes. In reply to Rose’s suggestion of looking at other towns that are not self insured, Hearne expressed the opinion that these were mostly very small or very large
towns. Goodman suggested the use of revolving funds and advocated being sure of all the facts before making a recommendation. The use of a consultant or other well informed person for advice was also suggested. Pietal and Tuck pointed out the Selectmen’s responsibility for health insurance decisions.
3. Bergeron suggested inviting a representative from Norfolk County to explain how retirement assessments were derived and to give a cost projection.
4. The minutes of August 11 were accepted. Vote: 9-0-3
5. Pietal reported on the FinCom tour of school construction and the needs of the Middle School . He reported different perspectives on the Middle School, some thinking it functional with some maintenance issues and others seeing many problems. Bergeron advocated a maintenance policy showing what was in the operating budget and what capital, expressing the opinion that it appeared that everything not custodial appeared to be capital. Tuck had the impression that maintenance money was now being set aside in the operating budget. Pietal pointed out a need for town building maintenance and recommended a town wide maintenance policy.
6. Pietal reported being asked by the press for comments on the school contract negotiations and urged caution in giving comments. Selectmen Roach is sitting in on the negotiations. Tuck commented that town and school negotiations should be coordinated. In response to Pietal’s suggestion of an “Its Your Money” article on the contract, Hearne thought it was not time. . Fixler pointed out that any agreements for more than the 2 ½ % plus new growth allowable under Proposition 2 ½ meant looking at overrides.
7. In response to Fixler’s request for another FinCom representative to the Government Study Committee, Rose volunteered.
8. The meeting adjourned at 8:45.
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