2004-11-17-AC-min - Laserfiche WebLink

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November 17, 2004 She further stated that it is important for the Town to end FY05 with a surplus to help build cash reserves. Collective bargaining is an issue, especially since some contract negotiations will settle FY05 retroactively and likely impact the FY06 budget with the retroactive payments. Peter Kelley suggested having every department reduce its spending in the current fiscal year to generate a surplus that can support the Aaa bond rating. The budget process was discussed. Supt. Hurley stated that he was preparing a level service budget w/ some growth to cover increases in student population. TM Vine noted that she would prepare a level staff budget as well as a needs-based budget. AL stated the Committee position that we would like to see level staff budgets all around with deltas (identified and costed) as the pieces that make up the recommended budgets. This was acceptable to Supt. Hurley. There was also discussion of why we are in a difficult situation this year - our reserves are low and we have few means of maintaining services even though the Town just passed an override. Bill Kennedy suggested combining school and municipal departments to achieve savings. The next Budget Collaboration Meeting was set for Jan. 5, 2005 at 6:30 PM. The Budget Collaboration Meeting ended at about 8:40 PM. The meeting of the Appropriation Committee continued at a table at the other end of the room. David Kanter went to the CEC meeting to hear a presentation from the DPW on their budget needs. There was general discussion of free cash, local receipts, and the concept of a structurally balanced budget. There was debate over whether the increase in free cash from the previous year should be considered off limits or not, and whether it is fundamentally different from other forms of revenue. The suggestions ranged from using no free cash to balance the FY06 budget to using up to half of the increase. There was general discussion on how to approach Moody's. The Finance Director would like our Committee to take a leadership role. We agreed to try to bring ideas on financial policies to the next meeting. There was a brief discussion about meeting with the Board of Assessors and the Assessor. One of the issues for us is whether there are surplus overlay account funds that could be released to the General Fund and thereby improve the appearance of the Town's reserves. Paul and Rod agreed to attend their meeting on Nov. 19. We agreed to put approved minutes on the web (through the TMMA). Respectfully submitted, Alan M. Levine Approved December 9, 2004