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Home My WebLink About2005-06-22-AC-min June 22, 2005 Minutes Town of Lexington Appropriation Committee June 22, 2005 Place and time: Room 111, Town Office Building, 7:30 p.m. Members present: Al Levine (Chair), Deborah Brown (Vice Chair), Rod Cole, David Kanter, Ron Pawliczek, Eric Michelson, John Bartenstein, Paul Hamburger Others present: Linda Vine (Acting Town Manager), Chief Middlemiss (Town Fire Chief), Michael Young (Town Budget Officer), Jeanne Krieger (Chairman, Board of Selectmen), Dawn McKenna (Town Meeting member), Lorraine Fournier (citizen) Al Levine called the meeting to order at 7:35 p.m. 1. Minutes: Deborah Brown agreed to take minutes of this meeting. 2. Year-end settling of accounts. Linda Vine presented three memos: a. “Year-End Municipal Salary Adjustments (FY 2005)” from Linda Vine to the Board of Selectmen, dated 6/21/2005. Details requested transfers for approval by BOS from Line 2320 (Municipal Salary Adjustments) to individual departments; total of $50,000. *Fire: $21,150 (overtime total of $155,500; see other two memos) *Town Manager: $23,850 (20 days of sick leave and vacation for departing Town Manager plus $2,500 salary differential for Acting Town Manager; approximately $20,000 representing 2 more months of departing Town Manager’s salary will be paid in FY2006 but was not budgeted.) *Town Clerk: $5,000 b. Year-End Reserve Fund Transfers (FY2005)” from Linda Vine to the Appropriation Committee. Details requested Reserve Fund Transfers (Line item 2310) for approval by the Appropriation Committee; total of $300,000. *Fire: $55,600 (of a total of $155,500) *Cary Memorial Library $77,300 (utilities) *Board of Selectmen $167,100 (legal; additional monies have been appropriated for FY 2006) c. “Year-End Closeouts – Special Fire Appropriation (FY 2005)” from Linda Vine to the Board of Selectmen and Appropriation Committee. Requests $78,750 transfer to the Fire appropriation as allowed under Special Legislation Section 123, requiring both BOS and AC approval. This is the remainder of the $155,500 of unanticipated overtime and expenses related to payroll estimation issues and medical vacancies. Discussion ensued regarding fire staffing levels and cost containment efforts. Sense of Jeanne Krieger and Chief Middlemiss that this has been looked at and - 1 - June 22, 2005 keeps leading to same conclusion – current staffing is sound but this year was unusual. Inquiry was made about expected snow budget deficit. Linda Vine responded that they were still completing budget closeouts but expected something in the range of $400,000 - $500,000. Some possibility of additional money from the state to offset this, perhaps as much as $450,000/$500,000. This would be in addition to the $153,000 already received for blizzard relief. Paul Hamburger pointed out that this will all affect how much money flows to free cash after closeouts complete. Will we have an idea of free cash balance at time of Selectmen’s goal setting? Linda Vine replied that they will try to do this, and reminded the committee that much effort had been made to freeze spending where possible in light of the tough budget year. Al Levine questioned whether enough additional money appropriated for FY2006 for library utilities. Linda Vine acknowledged that this will continue to be a challenge. Both Jeanne Krieger and Linda Vine agreed that perhaps a re- energized energy committee should look at this. ACTIONS TAKEN: Motion passed 8-0 to approve all requested reserve fund transfers. Motion passed 8-0 to approve the $78,750 of special transfer requests under Section 123 of the Municipal Relief Act of 2003. (Subject to BOS approval, as well.) 3. Reports of other meetings and events: John Bartenstein suggested that AC members do email write-ups of other meetings attended and circulate in advance of scheduled committee discussion. He will do this for the TMMA wrap-up meeting and the Division of Local Services meeting. He did mention one item from TMMA session regarding TM start time. There were significant concerns raised, especially by finance committees, so Marge intends to survey the TMMA on this issue. 4. Minutes: A review of the minutes and status of minutes was undertaken. The following actions were taken on minutes: 2/9/2005 approved 8-0 2/24/2005 to be fixed off-line and brought back to next meeting 3/3/2005 approved 8-0 with minor edits 3/10/2005 approved 7-0-1 (DK abstaining) with edits 3/15/2005 approved 7-0-1 (DK abstaining) with Al’s edits 3/28/2005 approved 7-0-1 (DK abstaining) with Al’s edits 4/11/2005 to be taken up at next meeting - 2 - June 22, 2005 4/13/2005 approved 7-0-1 (DB abstaining) with minor edits 4/25/2005 approved 7-0-2 (DB and DK abstaining) with change 5/2/2005 approved 8-0 6/8/2005 to be taken up next meeting 5. Committee organization, membership: Al Levine reported that he hasn’t heard anything yet from Marge Battin regarding a new member. ACTIONS TAKEN: Motion approved 8-0 calling for Al Levine and Deborah Brown to continue as chair and vice chair, respectively. Motion approved 8-0 electing John Bartenstein as secretary. 6. Auditors’ Report: a. Special W/S audit: Al Levine requested meeting with Candy McLaughlin regarding the special water/sewer audit as directed by the AC at its last meeting. Since BOS is scheduled to hear from auditors’ at next Monday’s meeting, Linda Vine (through Candy) suggested that AC attend that meeting for its update. Michael Young indicated that he hasn’t seen a report of the status of the special water/sewer audit. b. Regular audit: AC continued its discussion from last meeting regarding the management letter. Discussed how to follow up on issues raised. Michael Young agreed to obtain additional information for us. John Bartenstein and Deborah Brown are researching other towns’ audit committees and will report back to the AC with a recommendation. Dawn McKenna recommended reviewing the Selectman-Town Manager Act to see what it has to say about audits. 7. Health Benefits Review Committee Report: Paul Hamburger distributed a memo discussing possible next steps. As a first step, he suggested focusing on pharmacy savings by encouraging the use of mail order and generic drugs. Al Levine raised process issue – Town Manager negotiates with employees, so there will be a handoff process between BOS as policy group and the Town Manager as implementer. ACTION TAKEN: Motion approved 8-0 authorizing Paul Hamburger to begin discussions with Selectmen individually regarding his memo. General discussion continued around other savings possibilities: ?? Negotiating higher premiums/co-pays: AC members agreed this should be on the table, but negotiated as part of a total compensation package. ?? Claims and enrollment audits: AC members commented that since this is probably not subject to negotiation with employees, this should be investigated and some cost/benefit data collected ?? Benefits for part-time employees: Deborah Brown suggested that the town has some obligation to pursue this and reach some closure on this issue. - 3 - June 22, 2005 Comment was made that Town Manager should also be consulted to see what he things is possible and/or worth pursuing. 8. Fiscal policy development: Al Levine and Deborah reported on a meeting they attended with Jeanne Krieger, and Richard Pagett. It is clear that the BOS are moving forward with the appointing an ad hoc financial policy review committee, but with a high degree of coordination among and input from the Budget Collaboration Group participants. David Kanter expressed continued concern that this task might best be carried out by the finance committees. Deborah Brown expressed some optimism that the ad hoc committee could be effective if the Appropriation Committee has input and there is clear communication between the ad hoc committee and the AC throughout the process. Eric Michelson suggested that the AC build upon the memo drafted by Deborah Brown and Paul Hamburger and make this available to the ad hoc committee. Al Levine feels that regardless of the process undertaken by the BOS, the AC should work on this in parallel. Eric Michelson suggested that the AC create a straw-man proposal as a starting point for the ad hoc committee. Deborah Brown expressed interest in being the AC’s liaison to the ad hoc committee and she agreed that the AC should do some preliminary work to have some early input for the ad hoc group. 9. Good-bye and thanks to a valuable and respected colleague: All in attendance thanked Ron Pawliczek for his years of service to the AC. Michael Young extended his own thanks and those of John Ryan. 10. Other business: Al Levine reminded the committee of tasks to complete before the next meeting. ACTION ITEMS: Before next meeting, review Al Levine’s memo on fiscal policy development. Before next meeting, review Paul Hamburger’s task matrix and respond with own interests. 11. Al Levine received a unanimous vote to adjourn at 10:15 PM Respectfully submitted, Deborah Brown Approved October 6, 2005 - 4 -