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HomeMy WebLinkAbout2003-03-26 Finance Committee Minutes;;_CEIVED., T01 V'!Vd CLERK Finance Committee Meeting Minutes f 7 (G , A S S . March 26, 2003 ZOO] JUL 21 P 4: 01 7:35 P.M. Call to Order: Finance Committee Members: Cathy Martin, Richard McDonald, Hal Torman, Chuck Robinson, Andrew Grimes, Karen Epstein. Town Manager: Peter Hechenbleilmer. The Department of Public Works, Employee Benefits and Community Services budgets were presented. Department of Public Works: Peter Hechenbleikner provided an overview. Presented a 4 year (1989 thru 2004 proposed) overview of cumulative reductions in Public Works expenditures. Assuming that the override is successful, expenses will be level funded with the exception of where there is a specific requirement i.e. contracts, 2.5% cola. The 3 year contract will be ending in 2004. In certain circumstances there may be a step increase and an extra 2 days in the pay period. The pay and class study was not implemented in 2003, to be fully implemented in 2004. This may mean that an increase in grade may correspond with a step back. Overall the DPW budget will be up 1.4%. Regarding the Cemetery budget, in past year's seasonal labor has been difficult to hire. Now are using a temporary employment agency. Costs the department a little more, however no need to pay unemployment costs, etc... Bob Keating added that this has worked out well for the Town overall. Regarding Parks and Forestry. Ted McIntire said that many cuts were made in the 2003 budget and that 74 acres, all ball fields and tot lots will be maintained by 2 workers. Andrew Grimes asked about the degradation of services at level services funding. Ted McIntire responded that degradation is happening, in the past there were 6 laborers and now there are 2. Peter Hechenbleikner added that mulching around buildings and turf treatment has been eliminated. Ted McIntire said that if the override passes, services would be equal to what we have now, for example, no maintenance of fences or park benches. Can only take care of safety problems. Peter Hechenbleikner added that not doing capital goes hand in hand with maintenance of the parks. And as tot lot safety issues arise then may need to demolish. Ted Mcintire commented that irrigation systems mean more mowing and need repair. Dick McDonald commented about the money that was put into Parker's fields and now are not maintaining. Peter Hechenbleikner noted that the artificial fields slated for the High School will help Ted McIntire said that rubbish is a huge problem in the parks and at the schools. The seasonal laborers are important in addressing this. Bob Keating noted that there are 45 barrels in the parks and schools. Carry in and carry will be the case, won't be grooming the ball fields without the override. Hal Torman noted that a new standard is being set going into the budget for 2005. Peter Hechenbleikner added that the override gets us what there is now pretty much. Andrew Grimes asked about capital. Peter Hechenbleikner responded that between $60,000 and $85,000 is going for capital, while noting that the State budget is still uncertain and the Voke School may be underfunded. ( Ted McIntire noted that all budgets from 01 to 04, that the guidelines have been for level funding. Just in 01 to 03 reductions totaled about $1,000,000. Recreation Department's budget was discussed. Peter Hechenbleikner said that the revolving fund process was adopted about 10 years ago under an article and motion authorizing $450,000/$500,000 to be spent. A chart showed estimated receipts and programmatic expenses for 2004. Will need to come back to Town Meeting each year for another authorization. Accounting for recreation system; budget for salaries, the revolving fund holds the rest. This new approach allows for the allocation of fixed salary into the fund. This is the first year of the 3 year model and helps other services that support recreation. Peter also noted that David Lee is retiring. Discussion of the Engineering department's budget; Peter Hechenbleilmer gave a brief overview saying that this department designs new construction projects for the Town, does water and sewer pipe locating, surveying for the Light Department, marks water and sewer lines. Joe Delaney noted that the department charges the Light Department for street opening permits. i Chuck Robinson asked about the Engineering Department's overtime. Joe Delaney responded that those funds are for attending hearings and line painting at night. Discussion moved on to the Highway Department. Peter Hechenbleikner noted that a successful override would mean new funds for roads totaling $300,000. He added while not enough that it would still be a big help. Ted Mcintire noted that there are 90 miles of roads, 85 to 95 miles of sidewalks and only $28,000 to maintain them and that there are no funds for school lots and parking lots. Mike deBrigard added that the street sweeper is 11 years old and that typically would be replaced in 7 years. There is only 1 in town, and that it has been out for 3 days and in for 2, and no money in the budget for repairs. Peter Hechenbleikner said that used to have 2 units in town to handle the street sweeping. And noted that capital funding priorities are the dispatch center (originally purchased in 1990) for $250,000, street sweeper for $135,000 and a dump truck for $75,000. Peter added that Street Lighting is level funded in this budget. Are in the process of converting lights from mercury vapor to sodium vapor, should save about $2,000 once finished. Trash; Peter Hechenbleikner advised that the contract was extended and $60,000 moved out over the next 2 years; there will still be no leaf, bulls waste or Christmas tree collections. Ted Mcintire questioned the differential between rubbish at $96/ton and recycling at $77/ton. Peter Hechenbleikner said that it is expected that snow and ice removal may total about $560,000 for this year. Will get some funds from the Federal Government thru FEMA, however will not receive these funds this year. Water and Sewer Departments; Peter Hechenbleikner noted that the new debt service for the Water Department was up by $127,000. Chuck Robinson asked about the increase in the Water Department's Supervisor's position. Peter Hechenbleikner responded that this is one of the re-classified positions. It moved up a grade 15 to a 17, and noted that the pay and class study looks every other year at 12 comparable communities. Hal Torman noted an increase in funding for treatment plant operators. Peter Hechenbleiker said that this has to do with the attainment of the required licenses. It was also noted that the MWRA water buy in is still being worked on along with new improvements to the Water Treatment Plant. Andrew Grimes asked if reserves are accumulated. Ted McIntire said yes and noted that there are over $1,000,000 reserves in the Water and Sewer accounts. Peter Hechenbleikner added that reserves help to offset some of the debt services costs in the water distribution program, water storage tank, MWRA buy-in, conservation program and water treatment. Also noted was that any move to more frequent billing would require a full understanding of all the costs that would be associated with it. Ted McIntire said that the present staffing cannot maintain infrastructure that is in place now. Drainage system, roads, sidewalks are not being maintained due to lack of staffing and funds. Have not had capital for drainage in many, many years. Noted the frustration that cannot do the job that needs to be done. Andrew Grimes said that this is not being financially responsible in the long run and that drainage has been in the capital plan for a long, long time. 1 Ted McIntire responded that now are putting out fires and cannot do the preventative maintenance. Andrew Grimes asked what do we need to spend to maintain pavement system, sidewalks and drainage at their current levels? Ted McIntire added that meanwhile roads, siedwalks, parks and schools are being added. Andrew Grimes asked to see a target to work towards, rather than just operating on a year to year basis. Also asked what is the right level of staffing needed to get there? Peter Hechenbleiker noted that need to get through this budget, then will broad-brush what need to do. Employee Benefits; Peter Hechenbleiker presented that the Contributory Retirement is up 1.5%, this year (2004) will do a full actuarial study and then in 2005 will see the effect of the stock market. Have taken the compressed schedule to 2021 for full funding, can go out as far as 2028. Group Health is up 11% this year. Due to changes made this year, expecting next year's increase to be lower. One of the drivers of the increase is the lack of funding of Medicare, in 1992 Medicare covered 96/95%, and now is down to 80%. Providers get the differential from the insurers. Workers Compensation costs are up and Police and Fire Indemnification will be around $40,000 for 03. General Services; Peter Hechenbleikner noted that Town Counsel costs are tracking to the $110,000. $10,000 is being transferred and was needed for RMLD issues. This is the 3rd year with this town counsel, go out and solicit bids every 3 years. Labor Counsel will be up next year because contracts are expiring. The School Department and Town use the same Labor Counsel. Cathy Martin asked why insurance was up so much? Peter Hechenbleikner noted that September 11 is the drive behind these costs. At 10:30 a motion was made to adjourn, it was seconded and passed 6-0-0. tcre ec 1 u bmitted, ta