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HomeMy WebLinkAbout2009-02-05-AC-minMinutes Town of Lexington Appropriation Committee February 5, 2009 Place and time: Room G -15, Town Office Building, 7:30 PM Members present: Alan Levine (Chair), John Bartenstein, Richard Eurich, Mollie Garberg, Susan McLeish, Eric Michelson, Glenn Parker, Pam Hoffman, Rob Addelson (ex officio, non - voting) Also present: Carl Valente The meeting was called to order at 7:38 PM. 1. Busa Farm. The Busa family is looking to sell approximately 8 acres and 2 homes off Lowell St. near the Arlington line. Home currently not a requirement of sale. Landowners have benefited from a chapter 61A tax break. As a result, on sale of the property, town gets first right of refusal and a sale to the town avoids the landowners incurring rollback taxes. Discussions have occurred with Conservation Committee, Recreation Committee and LexHab to ascertain interest in property. Recreation and LexHab have both expressed interest. There is a need for an appropriation of $15,000 to cover: a) An appraisal of the property ($7500) b) A concept plan at $7500 for recreation and affordable housing usage. CPA funds cannot be used to reimburse these costs. At the spring Town meeting, we will be able to appropriate funds for administration and studies. Eric Michelson moved to approve a $15,000 transfer from the Reserve Fund and Pam Hoffman seconded. Current Reserve Fund balance was estimated at $533,OOO.Discussion reinforced that sufficient funds were available in reserve to cover snow and ice spending. Unanimous vote to approve appropriation of $15,000 Reserve Fund transfer to contractual services for expenses in relation to Busa property. 2. Budget a) Health Insurance Adjustment The budgeted increase in health insurance was 12 %. Blue Cross underwriters have revised and are recommending a new estimate of 9.5 %. This will free $420,000 ($300,000 for the schools and $120,000 for municipal). Budget will be amended once town has evaluated recommendation. Town will proceed to work with an independent consultant, Group Benefit Strategies, to get an independent recommendation and will factor in the analysis from Blue Cross. Work to be completed by February 23 However, the two analyses and recommendations are not expected to differ given standards in actuarial methodology used by both. Discussion ensued regarding the structure of health insurance funding in the town budget. Health insurance expenses are funded via a transfer from the general fund to a trust each month. Share of claims are posted and paid against the trust each month. Any surplus remains in the trust. Amount will vary depending on number of employees, plan and rates. Trust includes a cushion to cover a run of expenses. Cushion is typically 3 months and electronic billing has made claims estimation more accurate. Also, Blue Cross Blue Shield runs a regular claims report. Town has also been increasing stop -loss insurance for extraordinary claims. b) Minuteman Tech Adjustment The estimate of the Minuteman assessment will be adjusted from $1.8 million to $1.711 million freeing $89,000. c) Gas and Diesel Prices Gas and Diesel prices were locked in for next year 2010 and affects fire, DPW and police vehicle expenses. d) Partial Gap Closure in the Municipal Budget Gap has been reduced by $241,000. New gap is $144,000. Fee adjustments and reductions by various departments have yielded the savings. Cuts will be made at the margin. $80,000 is material in that it is in hold for salary increases. Schools vote their cut list on February 28 The committee voted unanimously by roll call to go into executive session to discuss collective bargaining strategy at 8:56pm Meeting returned from executive session at 10:05pm AC members asked to submit preferences for article write -up responsibility. Future tentative meeting schedule discussed as follows: Feb 11 7:30pm Feb 25' 6:00pm March 4 th 7:30pm 2 March 10 7:30pm March 16 7:30pm March 18 7:30pm March 23 6:30pm in advance of Town Meeting The meeting was adjourned at 10:30 PM. Respectfully submitted, Mollie Garberg Approved July 6, 2009