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Minutes - February 10, 2003
FINANCE COMMITTEE

MINUTES – FEBRUARY 10, 2003
TOWN HALL – 7:30 P.M.

Members present: Tuck, Pietal, Grasfield, Bluestein, Sirkin, (Garza).  Members absent: Atlas-Gordon, Bergeron, Fixler, Gillen, Goodman, Hearne, Heitin.

1. Executive Secretary B. Puritz, accompanied by Town Department heads, described the Selectmen’s Sector budget process beginning in August and lasting for ten months.  Puritz commented on the committed department heads and their patience in the variations in funding. He explained that, based on an allocation process derived from the Priorities Committee and predicated on a 10% reduction in state aid, there was a Fiscal 2004 reduction of 1.54% after a Fiscal 2003 4.3% reduction.

2.  The Executive Secretary summarized the Selectmen’s proposed Fiscal 2004 budgets.  Every budget was level funded or decreased except for the ambulance and Data Processing.  Compensation was frozen except for step increases due and payable. The Priorities Committee credited $42,108 to the Data Processing Department for a half time technical support position and the increased MUNIS related software licensing costs. Some adjustments were made in materials, supplies and commodities based on experience and history.  

3. The Executive Secretary pointed out the use of diversified revenue sources.  Due to the higher charges allowed for certified advanced life support, the increases in calls year by year, and a very effective collection system, the Ambulance Revenue with no property tax funding will be used for ambulance expenses. Recreation and Water are supported by user fees. $11,418 of the Railroad Parking Revolving Fund will be allocated to the DPW for station/bridge landscaping maintenance and $6,108 in engineering stipends charged-off to the water Department. Use of the senior property work off tax program in Elections and Registration allows for $1,715 to be applied to the Town Clerk’s salary.  

4. Tuck agreed with Sirkin’s comment that the Town eventually foregoes revenue as a result of exemptions such as the senior property tax work-off. In answer to a question from Pietal, Fire Chief D. Mann replied that there are one brand new ambulance and one 1995 ambulance for reserve and back-up.  Pietal pointed out that there would be no offset in the Ambulance Reserve for a new ambulance leading to a need for capital.  Puritz saw no capacity to accrue funds in order to maintain operations. In answer to Sirkin’s questioning of the variations in amounts paid for gasoline, Mann suggested that the price varied by month.  Tuck suggested looking toward more fuel-efficient vehicles.

5. Puritz warned that if state cuts were more severe or if there were a big increase in expenses, such as utilities, a reduction in force would be necessary.  Selectmen A. Garf pointed out that salaries were not certain until negotiations are complete. Police Chief J. Bernstein reported no police agreement. Puritz reported a tentative agreement with the other unions.

6. In answer to Grasfield’s question regarding an apparent decrease in snow and ice being spent in other areas, Puritz said that spending was driven by events and necessity. DPW Superintendent E. Hooper reported replacement of machinery from an insurance payment.  In answer to Grasfield’s questioning about the recreation revolving funds, Recreation Director D. Clifton documented the expenses and revenue.  Clifton said that lake revenues are dependent on the weather and water count. Clifton added that money toward the geese patrol has come from Geese Peace and the MSPCA. $14,000 remains to pay June expenses for the next summer. Puritz answered a question about railroad parking from Grasfield by saying that the railroad parking funds are being used as the law allows and that the railroad parking/ bridge project could be complete by 2005.

7. Puritz explained that this is the first year of the street lighting purchase program.   
There would be new street lighting with new development.  Therefore, a slight reserve has been built in.

8. Grasfield pointed out a dramatic increase in the uncontrollable portion of the Board of Health budget. It was suggested that there be some incentive to encourage recycling. The Executive Secretary explained that recycling is a voluntary program and that there is a recycling committee.

9. Treasurer R. Uyttebroek answered a question from Grasfield by saying that the total Town debt is $33,506,650.  The Treasurer predicted another year of increases, then a decline.

10. Puritz explained the Town match of the payroll tax on gross wages of town employees not enrolled in a contributory retirement or defined contribution plan. After July 1 2002, new hires are placed in a contributory retirement system or a defined contribution plan and thus are exempt from Social Security deductions.  The Executive Secretary explained that workers compensation has been switched to a premium basis, self-insurance no longer being an option. The balance in self-insurance will be used to defray the cost.  To answer a question from Bluestein, Puritz said that unemployment is an uncontrollable or shared expense.  Replying to Grasfield, Puritz reported an increase in retiree health insurance (the active employee health insurance being constant), that auto insurance rates are up with the number of vehicles being constant, and that standard coverage for property and other insurance has increased because of the economy and world events. The Executive Secretary added that the amount of health insurance allocated to water has been recalculated.
11. Recreation Director Clifton pointed out the tremendous amount of cooperation among the departments in what he viewed as the toughest year he has experienced and expressed his hope that the cooperation continues. Tuck and Sirkin commended the Department heads.

12. Tuck reported that Priorities allocated $10,000 additional to the Finance Committee Sector to assure that the library can be accredited.  She said that she had spoken with the Director and a couple of the trustees who informed her that the standards are being reviewed and that, if some of the funds are freed up, they will see that those funds go back to the Town.  Grasfield gave the following reasons for voting against additional library funds: no clarity of the library’s risk; no money taken from another budget; reducing the tax rate not considered; and salaries up and books down in all proposed budgets. Tuck pointed out that five of the six Priorities Committee members voted for the library additions.  She also stressed the need of a quorum of the FinCom to vote on the acceptance of the addition money.
13. The meeting adjourned at 10:05.