Finance Committee Meeting
Minutes – September 13, 2004
Town Hall – 7:30 P.M.
Members Present: Brian Fitzgerald, Kenneth Goldberg, Charles Goodman, David
Hearne, Jonathan Hitter, Ira Miller, Paul Pietal, Gloria Rose, Gregory
Sydney (late) (Hamilton)
1. Deliberations on Warrant Articles for Fall Town Meeting.
2. ARTICLE 7. Peg Arguimbau of the Conservation Commission talked to Town Counsel re Rattlesnake Hill. Summarized discussion with Town Counsel: Initial Article as it appears —what will be in warrant is not correct. Portion proposed to be deleted in warrant will remain. REASONING: land is only for sale in its entirety. If Town does not make full amount, cannot buy property. If Town appropriated in bond bill for $12,000,000—no guarantee that State would come up with money. Definitely no guarantee if Town didn’t come up with money. If State does not contribute, the property would be annexed to Conservation Commission property not to State park. The only one that developer will consider is Conservation Commission to purchase. No other owners willing to sell. Add to open space. Insert “a substantial portion, if not the total acreage of,” in the Warrant. Substantial portion part further clarified in REASONING portion. Trust for Public Land may help with money to purchase as a private land. Nine or ten acres cannot be subdivided. Would be open space, but would technically not belong to Town. If this Trust is to give money, must be able to say yes. Flexibility to do estate lot financing. If somebody agrees to do this.
3. Goldberg: The term substantial—there is a difference between saying a substantial portion of the land, say 30%-40%, and substantially all the land, which suggests 70%-80%-90%.
4. Pietal: Dealing with fixing Warrant Article. Add enough flexibility in to get message across so substantially all can mean 70%-80%-90%. Relying on interpretation of words and good will of Boards in Town.
5. Arguimbau: Final point is approaching. Need to exhaust all options. Do not want to come back to Town Meeting for this again. Trying another plan. All land organizations contacted. Sell lots off to get money. Need to have Town Meeting vote. Another approach to get some money—flexibility.
6. Arguimbau: Sen. Sprague, Representative Kafka, and Sen. Joyce sent letter to come up with money originally. I wrote back that they at least recommit to the $12,000,000. Haven’t heard from State. If State gives money, we only need $5,500,000 for whole 339 acres of Rattlesnake Hill.
7. Goldberg: Instead of insertion that is there, add (for substantially all the acreage thereof).
8. ARTICLE 3. Joel Wolk, Chair, Standing Building Committee, and Arnold Kublin, Chair, Council on Aging. An Article before the Town for a free-standing Sr. Center at Deborah Sampson Park. It passed Town Meeting for design money in the winter of 2000, came up at annual election in spring of 2001and lost for the full amount.
9. Wolk: Schematic design gave enough information to give figures April ’01. May ’01 went before Town Meeting for $3,267,000. The override lost—Town Meeting didn’t get 2/3. Then went to Wilber. What is next step?
10. Kublin: Instead of going for the complete design documents at October meeting, would go for complete money in spring of ’05. How much additional money for architect for updated schematic for Standing Building Committee to give estimate of amount?
11. Wolk: Chapter 193 of the General Laws of Massachusetts, Construction Reform Law, going into effect immediately that any town for design that is in excess of $1,000,000+, required to retain a project manager from design and is to select designer. We can go forward with same designer in 2001. Inspector General says must have Project Manager. $80-115 per hour. Also says in law: if someone on staff has required qualifications, can use. Administrative Assistant, Maureen Doherty, has qualifications for $30 per hour. Responsible to coordinate all work, back up estimates. Work with all Town Agencies, etc. Advising COA on what they should and shouldn’t be doing. Need a full time Clerk of the Works. Fee is less because no benefits, no overhead, and part time.
12. Discussion regarding using previous architect and cost to update.
13. Hearne: Is the $15,000 reasonable—need to confirm. What monies are currently available and where would it come from?
14. Wolk: All monies transferred to Wilber. $13,000 left of unexpended funds.
15. Hearne: Nothing left from free-standing Sr. Center? $52,602 and $13,582. Is that enough to get this going?
16. Wolk: It would have to be reallocated. Need information from architect, estimate from Maureen for feasibility study. Do not need Project Manager for feasibility study. Joe Riser at architect firm. Update program with architect.
17. Need fee structure to make motion at Town Meeting. Get back to Spring Town Meeting 2001. Do you want to fund this project? Cost to design and build free standing building at Deborah Sampson. Cannot do recommendation without firm figure. There is something in Warrant about getting figures.
18. Motion within Article 3, $13,000. From Article 4, $2,000.
19. HEALTH INSURANCE: Presenters: Rob Uytterbroek, Treasurer; Ben Puritz, Town Administrator; Peter Kenney, President, Cook & Company, Health plan Management Group
20. Puritz: Preliminary, for example., provided in August was on the cusp of reversing transferred health insurance. What was a deficit in a trust account crossed over into a positive balance in trust. Not all equal with respect to withholding relative to expenses on a month to month basis. Turned corner of what had been a shortfall.
21. Pietal: $48,293 on June 30. Has 12 months been paid?
22. Puritz: November, ’03. Paid 13 months FY ’04. Trend analysis for positive.
23. Kenney: Did pay 13 months of costs because at an early point in June deferred to next fiscal year—were able to pay one time additional 13th month. Bodes well for future predictions. Rates are where they should be. Looking at trend 10% and 15% increases on a year to year basis for next two+ years. Using more services. Doing more routine testing. This budget item everywhere is a tough item. Still 10% of the number. Costs are high. Common concern in budgeting enough. New procedures being done by employees. MRI is more often used and new procedures.
24. Blue Cross requires money to keep in reserve—two months behind in billing. Need to build reserve back up. Rates are in line with other municipalities. Private rates are 20% below—municipalities have older participants, private have younger. Co-pay amounts are different.
25. Met with Insurance Advisory Committee. Raised issue a number of times about amount of co-pay. Could have been a 4% savings in rate with heavy user paying more out-of-pocket. More proactive in pursuing this matter of heavy users paying more out-of-pocket. Public sector health insurance governed by different statute. Emphasis on preservation of status quo. May save some money if co-pay increased. Concerned someone with large family would have a significant increase for heavier utilizer. 80% employer, 20% employee.
26. Flex spending account, no health savings account but for costs of medical plans. Requires legislative action amendment for 32b. For many pretax. Close to 600 in plan. Shared costs. $5 and $10 co-pay. 50% have $5 and $10. Amounts $5, $10 and $25. Municipals were changing drug co-pay. Unions wouldn’t allow unless they have say in changing co-pay.
27. HMO Blue, Sr. Plan, and Medex. Most in HMO. Majority in lowest cost plan.
28. Town offers retiree benefits. Still have to offer Blue Care, PPO, and Medicare offers Medex.
29. How do you know what’s being held from employees and what from Town? Calculates from head count, 20% from employee, and 80% from Town. Deducted from employee. How does Town match Town’s share? Done through MUNIS. Automatically takes 20%. $824.80 from Town; $206.20 from employees, calculated by MUNIS. Head count. At beginning of year positive balance—July 1, ’03, $403,000. July ’04 decreased $400,000.
30. Goodman: An analysis of what money went in and what goes out. Need on monthly basis. Paid out more than took in. Short two months. Balance $450,000, liability $501,000. Didn’t pay—no money accrued in June. Month to month payment if paid 13 months. Paid over $1,100,000, July ’04; $1,000,000 July ’03.
31. Budget for year ’04. Spent less than what was budgeted. Excess is swept—becomes free cash. Cannot go into trust account because not proportionate. Balance in account as of July 1, ’03, $450,616.73. Outstanding liabilities, $501,562.41. Was one month’s claims. Bill had not been paid. As of July 1, ’03, two months in arrears. Accrual basis. Liabilities were closer to $1,000,000. July 1, ’03, bills due May 1, June 1, July 1--$1,333,000. Fund balance July 1, ‘03--$450,000. Encumbrances against $450,000 were closer to 1,333,000+. May and June claims.
32. Between July 1, ’03, and June 30, ’04, the entire fiscal “04 year, what were liabilities incurred—claims submitted, administrative fees?
33. June ’04 paid July 1--$6,664,908 total cost; $4,701,603 budget; $1,568,494.65 contract employees.
34. $600,000 in debt rather than positive $450,000.
35. $48,000 positive—may not be no liabilities.
36. July 1, 2003, for June claims goal positive trust fund balance. When balance was going negative, subsidized employee contributions were not paying full 20%. Two months bills to have positive appropriation is function of head count. $100,000 left in appropriation is matching Town funds. Excess appropriation is swept into free cash. $48,000 not swept.
37. Still have month of May and June coming in. Working deposit, held by Blue Cross, used to pay for those accounts. 15% calculated of claims. 15% of cost in reserve--$600,000--$700,000--$800,000 in reserve. No interest on money because it is always being paid to vendors. A small percentage not paid out.
38. Cash flow summary: 4,700,000; $1,568,000—75%-25%; $6,270; $6,270,000; contributions $4,700,000.
39. Coming budget cycle is on track by 10% or 15% increase. Should priorities get number before they reconvene?
40. Running on projected amount. Trending positive 5% if medical trend is 15%--looking to increase of 10%.
41. Goldberg: If we are trending positive, why do the revised projections for the current fiscal year ’05 show a deficit of $64,666? Also, is there any seasonality to the numbers?
42. Kenney: No seasonality. The deficit shown on the Cash Flow Summary Review for fiscal year ’05 must be a computer glitch. I will look into it.
43. OTHER BUSINESS
44. Regarding language at community meetings. We will not tolerate foul language. We treat our guests appropriately. Public discourse should be civil.
45. Recommendation from Kenneth Goldberg about Teen Center article regarding allocating public money for private use. If there had been a precedent, wouldn’t have been a good precedent. A bad cash idea. Give non-monetary like fields for games. Fee charged to outside use. Public and private—did talk about groups. Vote was 7-3. Can add other comments. Money funneled through Recreation Department, not going directly to Teen Center.
46. There is a need going unfulfilled in the Town. No one will say it’s a bad idea. Consider School Department and Recreation Center by Town.
47. ARTICLE 1: Do not have enough information to have Stabilization Fund with $550,000. Standby mode. Discussion whether whole $550,000 to go back to community. Soft number of $550,000 would be maximum. Options whether if a Stabilization Fund is supported by each department. A little jump start if supported by entirety of departments. Here’s $200,000 to put in fund and then don’t fund any more. (1) Option are tax relief—don’t raise on tax rate come November. (2) Option take all and put in Stabilization Fund which would add to it significantly. (3) Have something called an underride. A Spring issue for the Selectmen where you would actually reduce tax. We made an effort to insure that schools were funded. The capacity was there and didn’t need to go for the $550,000.
48. The concept of a Stabilization Fund, but the manner in which it should be built up was the challenge. Build Stabilization Fund into budget process. Although we see positive attributes to Stabilization Fund, this is not the way to do this. Stabilization Fund would flatten out tax.
49. MOTION by Ira Miller for indefinite postponement.
50. SECONDED by Gloria Rose.
51. Discussion: School said they will not need money. If process is that whatever is left went back to School Department, confusing how they get the detail. Precedent they get whatever comes back. It could be changed. Priorities—nothing came up that they would get it back. If the number is greater than $550,000, would stay with School Department. Number could be greater than $550,000. Does this motion accomplish what we want? It would fall to the Selectmen and Assessors not to raise this money.
52. School Department and community. New revenue and what is voted is expenditure—motion substitute funding source. How much money comes into Town is separate issue. We only vote on expenditures in revenues. If their budget is reduced by $550,000? Still spending money but receiving it from State. Don’t have to raise from taxes. If budget $28,550,000—taxes—state aid. Money from State, not from free cash. Not going to transfer to Stabilization Fund, not going to be used until needed by Town. Could make motion at Town Meeting to put in Stabilization Fund, not to raise taxes. What was voted was appropriated.
53. Reduce total amount raised by $550,000 at May Town Meeting. Intent not to be raised on taxes. Validate if this is allowed to be done by Counsel. Reconsider vote on School budget by $550,000. If not appropriated, will not have to be raised.
54. Reduce reimbursement: Amount of appropriation funding to support Special Ed is appropriately reduced. Amount funded directly by Town. Reduce $275,000 from School Department. Transfer to Stabilization Fund. Net increase to appropriation of $275,000, reduce School budget $550,000. Intention of Finance Committee to give tax relief.
55. First motion withdrawn.
56. Moved to reduce School appropriation voted on at May Town Meeting in an amount not to exceed $550,000
57. MOTION by Ira Miller to reduce the appropriation to the School Department account by the amount received from the State for Special Education reimbursement up to $550,000.
58. SECONDED by Gloria Rose.
59. The budget was based on a certain percentage of reimbursement. $550,000 the amount of its reimbursement from 65%-75%. School budget based on certain amount of increase which is 35%, a percentage up to 75% up to $550,000.
60. VOTED: 9-0-0
61. ARTICLE 2: Community Center. Expect status report on September 24.
62. ARTICLE 3: Sr. Center: Soft number $15,000 to get to a point to Spring Town Meeting with construction number. Hearne will write recommendation—summarize history of last efforts coming for design money.
63. MOTION by Jonathan Hitter to appropriate an amount not to exceed $15,000 for the preparation of design plans for a free standing Sr. Center by the COA.
64. SECONDED by David Hearne.
65. VOTED: 9-0-0
66. ARTICLE 4: MOTION by Jonathan Hitter to reconsider the vote of two weeks ago in the amount of $40,000.
67. VOTED: 6-3-0 Fitzgerald, Hearne , Hitter, Miller, Pietal, Rose, for; Goodman, Goldberg, Sydney, against.
68. MOTION by Jonathan Hitter to allocate an amount up to $52,000 for a feasibility study for the Wilber School. SECONDED
69. VOTED: 6-3-0 Fitzgerald, Hearne , Hitter, Miller, Pietal, Rose; for. Goodman, Goldberg, Sydney, against.
70. ARTICLE 5: MOTION by David Hearne for an indefinite postponement.
71. SECONDED by Greg Sydney.
72. VOTED: 9-0-0
73. ARTICLE 7: MOTION by David Hearne to amend Article 1 of 2003 Special Town Meeting with language that will not be written in warrant.
74. SECONDED by Gloria Rose.
75. VOTED: 8-0-1 Fitzgerald, Goldberg, Goodman, Hearne, Hitter, Miller, Pietal, Rose, for; Sydney abstained.
76. ARTICLE 8: Changing language of demolition of historical buildings. Now have to give 6 months notice, wants 12 months.
77. MOTION by David Hearne for indefinite postponement.
78. SECONDED by Ira Miller.
79. VOTED: 7-2-0 Fitzgerald, Goldberg, Goodman, Hearne, Miller, Rose, Sydney, for; Pietal, Hitter, against.
80. ARTICLE 9: Gordon Gladstone getting additional information into Spring warrant. No. 3 to be removed. Recommendation for 1, 2, 4. Could have School Department add some information on their own. Already being provided in State form.
81. MOTION by Jonathan Hitter and SECONDED that Finance Committee prepare 1, 2, and 4 in Article 9.
82. VOTED: 8-0-1 Goldberg, Goodman, Hearne, Hitter, Miller, Pietal, Rose, Sydney, for; Fitzgerald, abstained.
83. School Department should make presentation at Town Meeting, a brief summary of budget.
84. ARTICLE 10: Illicit Discharge mandated by EPA
85. MOTION by Ira Miller to amend by-law.
86. SECONDED by David Hearne.
87. VOTED: 9-0-0
88. ARTICLE 11: Storm Water. Need clarification of posting bond.
89. ARTICLE 12: No vote
90. ARTICLE 13: No vote
91. ARTICLE 14: No vote
92. ARTICLE 15: MOTION by Ira Miller to approve.
93. SECONDED by Jonathan Hitter.
94. VOTED: 8-0-0 Fitzgerald, Goldberg, Goodman, Hearne, Hitter, Miller Pietal, Rose, for
95. ARTICLE 16: Paul Pietal will call Ben Puritz.
96. Budget memo needs to go out. Did not have a plus budget. Level funding is primary plus 10%, then –5%. Successful approach last year for level funding bumping up several budgets because they needed more. A minus budget would not be beneficial. Contract driven is not level funded budget. Solicit a level funded budget.
97. Level funded; level funded + contractual; level funded + 2 ˝% overall; level funded-5—minus amount for larger department.
98. The next meeting will be September 20 at Town Hall.
99. MOVED and SECONDED to adjourn.
100. VOTED: 9-0-0
101. Meeting adjourned at 12:05 A.M.
102. ACTION: Robert Uyttebroek to get final three months of FY ’04 re health insurance.
103. ACTION: Deficiency of $64,666 by Robert Uyttebroek and Peter Kenney. Presented on MUNIS. Should be current in the month that action took place.