PRIORITIES COMMITTEE             Corrected 4/9/13

                                                 February 7, 2012

                                                      MINUTES

The meeting of the Priorities Committee was held at 8:30 pm in the Selectmen's Meeting room

and was called to order at 8:40 p.m. by Chair Ira Miller.

Members Present:

Chair:                          Ira Miller

Board of Selectmen:   Richard Powell and Walter Joe Roach

Finance Committee:   Charles Goodman

School Committee:     John Hitter and Glenn Allen

Others Present:

William Fowler and Benjamin E. Puritz

I.  Continue First Draft of First Priorities Worksheet FY’13

    Finance Director, Bill Fowler, began by saying if we look at the estimate taxes FY’13 

    it is 3.18% not the 6.88%.  This has been corrected.  As requested from the Committee,  

    we reduced under local receipts $51,000 from the fees to $185,000.

 FY’13 Estimate:   Revenue Sources – Taxation:

                           FY levy base                                 52,443,011

                           2 ½% increase                                 1,311,075

                           New Growth                                                  400,000

                           Override;

                           Net Debt Exclusion                        3,099,504

                           Levy Limit                                    57,253,590

                           Excess Levy Capacity                   (3,136,264)

Net Tax Revenue                        54,117,326

                           Supplemental tax Revenue

Total Tax Revenue                     54,117,326

                           Assesses Valuation                  2,614,685,513

                           Tax Rate                                                 20.70

                           Levy Ceiling                                 65,367,138

                           % increase in tax levy                        3.18%

            The Allocation of projected net operating budgets changed to 2.10% from 2.24%?

INSURANCE BUDGET:

            FY’12 total $7,651,840          FY’13 total $7,527,185          down ($124,655)

1: Insurance Budget	FY12	FY13
Health Insurance	6,991,634	6,724,867.00	(266,767)
Worker's Compensation	250,000	325,000	75,000
Group Life Insurance & Disability	25,000	25,000	0
Group Life Insurance (Stat. Plan)	4,835	4,835	0
Group Accident (Fire, Police & Civil Defense)	45,000	87,000	42,000
Automobile	56,000	59,000	3,000
Property	136,000	183,000	47,000
Boiler & Machinery	10,000	14,000	4,000
General Libility	55,000	55,000	0
Vacant Property (Wilbur School)	0	0	0
Vacant Property (Horizons for Youth)	0	0	0
Public Officials	33,000	30,000	(3,000)
Boat-Hull	3,400	3,400	0
Umbrella	36,000	22,000	(14,000)
Less Water Department Share	(25,029)	(37,917)	(12,888)
Sub-Total	7,620,840	7,495,185	(125,655)
School Liability	15,000	15,000	0
School Vehicles	16,000	17,000	1,000
Total	7,651,840	7,527,185	(124,655)
2: Assessment of $2,665,364 less Water's share ($122,923)

Discussed were the following:

• Use of Health Claims Trust Fund amounts to $500,000 – Did not have to access this money last year – will access this amount for next year.  $3.2 million is currently in the Trust Fund.  Expect higher value in Trust Fund this year.  There will be more out-of-pocket expenses and rates will probably go down.  Have not hit Trust Fund in past three years. 
• Health Insurance rates have not gone up for three years.  (Costs have gone higher - reason being more subscribers and more retirees.
• New Insurance will have an impact of the budget. 
• Town Administrator, Ben Puritz, said the first meeting of the Insurance Advisory Committee (IAC) will be on February 15, 2012 at 4:00 p.m. in the Selectmen’s meeting room.  This is a public meeting.  Mr. Puritz said that within 7-10 days the Public Employee Committee (PEC) is convened and the 30-day negotiations period commences.  Mr. Puritz said we cannot supply a specific amount for the budget until the aforementioned has been completed.  We do not expect the amount to go up but to go down.  Budgets are going to the Selectmen on February 14, 2012 at their BOS meeting.
• Mr. Puritz reported that Property insurance had a significant increase in the Group Accident (Fire, Police) due to a new provider not being familiar with the peculiarity of Massachusetts Law.  Major part in increase in non-health insurance.
• How did we get to the 3.18% levy?   2.5% bump to prior year levy $1,311,000 and $400,000 in New Growth (residential).
• The projected median house-hold value for next year is $414,285 for a tax bill of $8,575.  (average tax payer)  Not much difference from last year.
• Free Cash – Should know in a month or so.
• Insurance – Should know potential savings in a week and actual amount in March.
• Sharon Commons – Should know status of Commons in November and what the Chief will need for additional police officers.
• Leave door open to discuss Stabilization Fund.

II.  Vote Preliminary Sector Allocation

MOTION made by Powell and seconded by Roach to adopt allocation as presented in the FY’13 Revenue Forecast of 2.1%.  We further move any additional increases in revenue incurred will be used to offset any tax rate levy.  VOTED: 4-2-0

MOTION:  To adjourn the meeting at 10:30 p.m. 6-0-0