FINANCE COMMITTEE

MINUTES – March 8, 2004

TOWN HALL – 7:30 P.M.

 

Members present:  Pietal, Heitin, Fixler, Goldberg,  Goodman, Hearne, Hitter, Miller, Feldman, Rose, Sydney, Tuck

 

 

Reviewed Fixed and Uncontrollables Budget – Ben Puritz and Joe Roach

 

1.      Health Insurance

a.             Administered according to state laws

b.            Negotiated with 17 different bargaining units

c.             COST = Claims + Administration + Stop Loss Insurance

d.            85% of employees in either HMO Blue or Blue Care Elect

                                                   i.      Town pays 80% - Employees pay 20% (HMO Blue)

                                                 ii.      Town pays 60% - Employees pay 40% (Blue Care Elect)

e.             Cost for last 3 years – up 65%, last year – up 25%, projection for FY’05 – up 10%

 

2.      Discussion Points

a.       Part-time employees who work 20 hours or more receive full insurance benefits

                                                   i.      Mr. Goodman – how many?

b.      Blue Cross/Blue Shield Meeting

                                                   i.      No premium provider-based plan ONLY self-insured plans offered

c.       We are currently around $500,000 in arrears for health payments in FY’04

d.      We should have a $1,200,000 balance or 2 months payments in a reserve fund

                                                   i.      Mr. Goldberg – when setting each fiscal year’s premium, we should “true-up”, i.e., settle any deficit from the previous year

                                                 ii.      Ms. Tuck – the settlement should reflect the 80/20% split between town and employees

e.       Mr. Goodman asked Mr. Uyttebroek– How do you arrive at the premium?

                                                   i.      It’s art more than science”, Mr. Uyttebroek

f.        Mr. Sydney – What about a wellness program?

 

3.      Workman’s Compensation

a.       A credit of $25,000 is expected for FY’04 budget

4.      Auto and Liability Budgets

a.        Flat for FY’05

5.      Debt

a.        Reduction of $770,000 in FY’05 due to retirements of outstanding debt

b.      Inside vs. outside debt

6.      Vocational Tuition

 

 

Reviewed Revenue Projections – Ben Puritz and Joe Roach

 

1.      FY ’05 Tax Increase within the 2.5% tax Levy Limit is expected to be an increase of 3.5%

 

2.      Current FY ’05 budgeting assumes an across the board increase of 5% to all sectors

 

3.      Free Cash is currently at $1,052,000

 

4.      Additional “outside” funds available to be apportioned by the Priorities Committee include:

a.       $300,000 – from Assessors’ Overlay Account

b.      $290,000 -  from Governor’s Aid

c.       $150,000 – from Free Cash

d.      TOTAL Available = $740,000

 

5.      Suggested uses for funds to be appropriated include:

a.       $50,000 – Vocational Technical School Assessment Adjustment

b.      $33,00 – to fund Assessors’ town revaluation activities

c.       $77,000 – to fund Ambulance Service

d.      $55,000 – to fund Compensation Parity Adjustment for Fire Department

e.       $550, 000 – to fund Special Education deficit from School Budget

f.        TOTAL Suggested = $765,000

 

 

Finance Committee Business

 

1. Approved Minutes of Meeting March 1, 2004[ vote 11-0-1 ]

 

2. Upcoming Committee Meetings

1.March 11, 2004 – Priorities Committee

2.March 23, 2004 – Selectmen’s Forum on Improvements to Town Meeting

3.April 7, 2004 – Government Study Committee