Finance Committee Meeting
Minutes – June 21, 2004
7:30 p.m.
Members Present: Charles Goodman, Kenneth Goldberg , David Hearne, Jonathan
Hitter, Ira Miller, Paul Pietal, Gloria Rose (Hamilton)
Absent: Michael Feldman, David Fixler, Gregory Sydney, Brian Fitzgerald
1. Dr. Claire Jackson, School Superintendent, and Barbara Dunham, Asst. School Superintendent, School Committee Chairman, Andrew Nebenzahl, and School Committee Member, Donald Gilligan, discussed the new teacher contracts.
2. The new three year contract was summarized: 04--0/2%; 05--2/2%; 06--3.25%, an increase of 9.6% over the three years. Starting January 1, 2004, 2% retroactive. Other school were surveyed: Statewide, 8.5% and 11.5%. ‘01-’03--4.5% per year, 13% overall.
3. Negotiations concerned with a) fiscal environment in Sharon b) updating Ed Reform--management issues; modernizing language; evaluation system.
4. Add ons to salary: longevity in addition to steps. Encourage courses for professional development stipend. Administration can start at higher step. A teacher outside Sharon could be hired at a higher step.
5. FY’04 only built in 3%--money in budget about equal 0-$75,000, undercuts would have been necessary or ask for short fall. FY’04 salaries accounts: $15,235,694 need 2.09% , $788,923.66 needed. Doesn’t include longevity or other benefits. Added staffing in Spec. Ed. ‘05, 4.8% half-year increase. 3.81% of total budget to fund FY’06. FY ‘06 3.25%; 5% entire increase each year.
6. Estimate: Cuts in ‘06 may not be needed if state funding available. Stabilizes at step 12 by keeping older teachers.
7. Health Insurance: no changes on contract. If this is to be an issue, need to start negotiating immediately. All departments should participate, not just school department. All changes must be approved by all departments.
8. Ben Puritz stated that all bargaining units must agree, school and municipal.
School, selectmen met to negotiate health insurance language for rediscussion.
9. FY’04/’05: 11 retirements at high school
2 new elementary teachers
3/4 from middle school
January early retirement incentives $126,000 from budget savings due to retirement.
Steady enrollment; kindergarten numbers lower--14 sections kindergarten, anticipating 10 sections kindergarten, 18 class size. If higher numbers come in over summer, more sections will have to be added.
10. Ben Puritz stated: Identified by auditors deficit 1997--charge- diminishes town’s free cash--deficit amount $35,485.66 one account, $11,402.32 other account. Money owed Marriott law suit and paid settlement, $45,000. This was a separate matter, but amounts similar, both with Marriott. Should have been part of settlement, should have been $80,000. Carried on books seven years--immediate successor to Marriott (Fine Host). Transfer from Reserve fund to another fund to erase deficit. Revolving Revenue Fund School Lunch. 6/30/03-6/30/04 deficiency for 2 years--end of ‘02 no deficiency, paid in ‘03.
11. Barbara Dunham stated: School dept. never saw funds. Not in account. She had seen $39,000 from ‘97 reduced from 3 accounts. Fine Host $11,000 - no bill--clear books. Chartwells current account. Overdraft on revolving account, paid ‘97. $45,000 less reduction in revenue--free cash revenue fund free cash. Free cash charged against revenue for following year. $46,000 debt charged against free cash affecting revenue on free cash--income, adjustment against free cash. Outstanding real estate tax become revenue--self-funding.
12. MOVED & SECONDED: To transfer from the Reserve Fund to account #22980092-424500 to Fine Host Food Services, $11,402.32, and to account #22970092-424500 to Marriott Food Services, $35,485.66.
13. David Hearne: Discussion on cleaning up the books; reduce free cash from the Reserve Fund. VOTED: 6-1-0.
14. Eric Hooper, Superintendent of the DPW, and Ben Puritz, Town Administrator, presented a petition for Reserve Fund Transfer for Snow & Ice in December, 2003, in the amount of $57,000.00.
15. Eric Hooper said this is a recurring item, issue to be resolved. Deficit spend Snow & Ice provided you spent prior year appropriation. Under estimate funds. Sharon budget doesn’t include labor--only material/machinery. Since ‘99 there are increases. Budgeted $107,009--spent $200,000. FEMA reimbursement, $67,900--75% of what is spent. $42,000 remains. Could have been worse except for FEMA. Fuel/diesel prices increased. Estimated last year. Budget increase/overruns. Highway fuel use, diesel 6,000 gallons. Natural gas for heating increased.
16. Gas cost:: 12/02-1/03 Diesel--higher than budget projections 18 months in advance. Water dept. fuel use. Not true enterprise fund. Seasonal diesel use. Highway dept. 10 times use.
17. Gas/diesel projection and state tax 1.17 per gal.--.21 tax. Spot market buy fuel. Boston low--gate price, volume fuel 4% exclusive of taxes--add .21. 1.38 estimate. Actual much higher. Need Reserve Fund Transfer. Charles Goodman asked if state tax had to be paid. Eric Hooper said yes, it is state law. Goodman then asked if town paid Federal tax on gas & diesel. Hooper said no because town buys in volume. Walpole paid Federal tax because they went to gas station.
18. Eric Hooper: Cost:
Snow & Ice: $42,552 over expenditure
Gas & Diesel: $9,880.10 over
DPW Maintenance: $4,267.73
Total: $56,669.83
$10,500 monies transferred to diesel fund offset reserve fund requested.
19. Deficit rolls into reserve fund. If no reserve fund, raise on following year taxes. Unforeseeable for deficit spending. Need to deficit spend to go into next year. Sets bench mark for next year. Flexibility to under budget for another budget to go to reserve fund. If deficit, must ask for more following year.
20. Ben Puritz: Municipal Relief up to 3%; if transfer from other departments, may not need reserve fund transfer.
21. MOVED & SECONDED: To approve $56,699.83 transfer from Reserve Fund to Accounts #1423, #1427, #1428.
22. VOTED: 6-1-0.
23. Regarding Community Center - appoint Designer Selection Committee. Discuss
legal fund and structural engineer.
24. Eric Hooper: Community Center: Building Inspector checked for health and safety of building. Oversized steel beam holding up ceiling. Wood beam not in good shape. Under auspices of Recreation Department. Building Department handles structural problems. Turned over to structural engineer. Five engineers looked over building. Reactivating Designer Selection Committee for Community Center. Structural problems are specific, not complete. Ceiling, 6 figure repair. Identify problems, need removal of ceiling, demolition, engineering and analysis costs. No specific scope of work, no firm cost figure, recovery of ceiling excavation. Expedite hiring process by using cable, etc. for certified architects.
25. Monday, July 12, there will be a Finance Comm. meeting. The Selectmen have until July 15 to act regarding $58,500 attributable to Sprint litigation, Borderland litigation & Dec. 2 Special Town Meeting for transfer from Reserve Fund to Law Budget..
26. Ben Puritz stated regarding the Fall Town Meeting the following articles added:
11) regional dispatch -placeholder
12) demolition by-law- extend waiting period from six(6) to twelve(12) months
27. Reserve Fund Transfers from: Elections - $4,814.83; Lake - $27,750.00; Veterans - $6005.00; Law - $80,000.00; DPW - $56,699.83; Fine Host Food Service (School Dept.) - $11,402.32; Marriott Food Service (School Dept.) - $35,485.66; Total - $222,157.64; ?Balance $130,000 in Reserve Fund. ?$16,016 Community Center, April 1.
28. Ira Miller: Household throwaway day--66 more than previous year. Approximately 500 people participated.
29. Other Business:
30. There will be no Finance Committee meeting June 29.
31. Next meeting July 12, 2004, 7:30 p.m. Ben Puritz to attend.
32. MOVED & SECONDED to adjourn. 7-0-0. Meeting adjourned at 10:35 p.m.
ACTION: Paul copy Finance Committee Handbook
ACTION: email memos and items for perusal.