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HomeMy WebLinkAbout2005-07-21-AC-min July 21, 2005 Minutes Town of Lexington Appropriation Committee July 21, 2005 Members Present: A. Levine (Chair), D. Brown (Vice Chair), D. Kanter, R. Eurich, P. Hamburger, R. Cole, J. Bartenstein. Additional attendees: C. Valente (Town Manager), T. Griffiths (School Committee), T. Diaz (School Committee), L. Fournier. The meeting was called to order at 7:36 PM by Al Levine in Town Office Bldg. Rm. 105. 1. It was announced that we had a new member, Pam Hoffman, who could not attend due to prior commitments. 2. We held a wide ranging discussion with Carl V., the new Town Manager. The first topic was the role of the AC, and its charter to give advice on budget and financial matters. The AC follows the budget process, the warrant comes out, and we write a report on the warrant articles. We make recommendations and work up budget projections. Carl V. stated that the issue of transparency is very important. If the AC is not comfortable with the information it has, we should feel free to give him a call. He stated he was willing to come to the AC meetings anytime we would like him to do so. Al L. said that normally the Comptroller/Finance Director, who is an ex officio, non- voting member of the AC, comes to the AC meetings, and in the past has acted as secretary and advisor, but did not help produce reports. For the last year or so, in the absence of a full-time Comptroller/Finance Director, Budget Officer Michael Young has handled the chore of attending the AC meetings. Carl V. asked to be added to the AC email list, at least until the Comptroller position is filled. He followed with a discussion of the short staffing in town over the last couple of years, and how it will take some time to dig out and address all the issues in the audit. Rick E. asked how many more staff are needed. Carl V. answered that we could use an assessor, two people in the revenue office, and that there were some issues to be addressed in Purchasing, and it could be a few months to fill the Comptroller/Finance Director position. Carl V. was asked about his thoughts on the water/sewer problems and the idea to hire a business manager for the enterprise fund. Carl V. gave his “nine day out” reaction: we need such a person, but they should have broader responsibilities than just rate setting. John B. noted that the water/sewer rate committee would agree with the broader view. Carl V. continued that there was the possibility for this person to play some sort of advocacy role. The problem is too many people have a piece of the enterprise fund and they need to be pulled together. Reserves policy belongs at a higher level. Perhaps there is room for more than one person and it could be a team effort. - 1 - July 21, 2005 Carl V. said this was the first town he has worked in with separate Capital Expenditure Committee (CEC) and AC, and he asked how that worked. Al L. replied that we have so many articles with multiple aspects that it would be very hard for one committee to handle all the details in both financial and capital articles. So we tend to rely on the CEC to help us understand capital issues, although we make our own recommendations. We often have joint meetings on capital issues. Tom G. noted that a chief difference is CEC works with a five year plan. Paul H. added that the AC feels it should not just duplicate CEC work, but we do review their work, and we look at how capital fits within the rest of the town budget, for example balancing capital needs vs. operation needs. Tom D. noted the AC is more neutral regarding capital than the CEC which has more of a policy agenda. Deborah B. noted that in fairness, the CEC may feel like the only advocates for capital needs. 4. Paul H. discussed the work of the Health Benefits Review Committee. We are fortunate there are people in town who are experts on the issues and willing to help with studies. Al L. noted that retiree health care costs and other future expenses are looming. Carl V. noted that a subcommittee on GASB 43 and 45 (government accounting statements that will be effective next year requiring the disclosure in financial statements of accrued non-pension employee retirement benefits) would be useful, but water/sewer issues are perhaps a higher priority. 5. Notes on Meetings: a) Paul H. attended a meeting with selectmen Norman Cohen and Jeanne Krieger on July 8: Jeanne said Assistant Town Manager Linda Vine nearly had in place a “carve out” for drugs. Health Benefits Review Committee Chair Richard Dougherty would check out remaining legal issues. b) Deborah B. discussed the Finance Director Search Committee. The committee met a few times in groups with Carl V. We are not being overwhelmed with applications. The salary range may need to be increased. The issue of dual reporting role (to BOS and Town Manager) and lack of clarity on how that works may also be a problem. Tom G. also noted that Dana Hamm is leaving as Facilities Director for the Lexington Public Schools. th c) We agreed to meet every two weeks in the fall, starting September 8, with no th meetings in August after the 4. 6. There was a brief discussion of the need to understand the issues around the CPA. The meeting was adjourned at approximately 10 p.m. Respectfully submitted, Rod Cole Approved October 20, 2005 - 2 -