Priorities Committee Meeting

Minutes – March 26, 2009

School Administration Building – 7:45 P.M.

Members Present:  Glenn Allen, School Committee; Mitch Blaustein, School Committee;

                               Charles Goodman, Finance Committee; William Heitin, Selectman;

                               Ira Miller, Finance Committee, Chair; Richard Powell, Selectman;

                               (Hamilton)

Other Attendees:    Linda Callan, Barbara Dunham, Bill Fowler, Barbra Nadler, Ben Puritz, Joe Roach, Alison Rutley

1. Ira Miller stated that after the Finance Committee reviewed all budgets, some questions arose on Revenue estimates.  Some of this early discussion will involve salaries.

2. A MOTION was made by Bill Heitin and SECONDED by Rich Powell to enter into Executive Session for the purpose of discussing strategies for collective bargaining, and at the conclusion of Executive Session to return to regular session.

3. VOTED:  6-0-0.

4. Entered into Executive Session – 8:00 P.M.

5. Continued Regular Session at 8:30 P.M.

6. The agenda was a review of the Revenue Forecast.  New information had come to light from Bill Fowler, Finance Director.

7. Bill Heitin commented on problems with cash reconciliations.  Funds were reimbursed on Cottage and East schools in October 2007.  A wire transfer went directly into bank account in the amount of $2.4 million.  Notification was faxed and filed, but not booked.  Problems in accounting department due to transition from old to new people and reconciliations not done previously. New methods now in place.  $2.4 million to be certified as free cash for this Town Meeting.  Suggested using $1.2 million and not raise taxes in FY’10 and put remaining $1.2 million in Stabilization Fund.

8. There was considerable discussion regarding the “found” money as to how it was to be used.  One proposal was to eliminate 2.5% tax increase and raise no taxes for FY’10.  Reallocate to free cash, put in Reserve Fund.  There was a suggestion to use some portion for direct purchase of capital items instead of borrowing.  There was some concern for FY’11 and FY’12.  Keep for free cash.  State revenues have been decreasing.  Some projected revenues may not come in.

9. A MOTION was made by Bill Heitin and SECONDED by Glenn Allen to recommend to sectors to not raise taxes of 2.5% in the upcoming year, not make changes to the bottom line allocations.

10. There was discussion on the motion.

11. There was a suggestion by the Finance Committee on reducing the salary increases in the sectors because of the economy.  Selectmen feel it is a responsible budget.  Gives ability to negotiate in good faith.

12. There was a suggestion to defer the discussion regarding the distribution of the free cash before Fall Town Meeting.

13. VOTED:  6-0-0.

14. It was MOVED and SECONDED to adjourn.

15. VOTED:  6-0-0.

16. The meeting adjourned at 9:45 p.m.