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HomeMy WebLinkAbout2011-04-20-AC-minApril 20, 2011 Minutes Town of Lexington Appropriation Committee Meeting April 20, 2011 Time and Location: Town Office Building, Room 111, 7:3 0 p.m. Members Present: Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Joe Pato, Vice Chair; Robert Cohen; Alan Levine; Eric Michelson; Susan McLeish; Rob Addelson (non- voting, ex officio) Not in attendance: Mollie Garberg; Richard Neumeier The meeting was called to order at 7:37 p.m. There were no announcements. 1. Minutes. Minutes of the 3/30/11 and 4/4/11 meetings were approved by a vote of 7 -0 -0. 2. Liaison Reports by Staff and Members. • Health Care Benefits Study (Joe Pato). Mr. Pato and Mr. Levine will be meeting with Denise Casey, Human Resources Director, and Carl Valente, Town Manager, regarding health benefits. There was a discussion regarding prioritizing questions for this meeting. Changes at the state level should be finalized in June and will not impact current contracts but will set the stage for next year. Coalition bargaining is set up under state law and will continue to govern contract negotiations unless it is negotiated away. The Committee discussed the financial implications of Clause 13 of the Memorandum of Agreement between the Town of Lexington and the Public Employee Committee, which provides that the current 80 -20 split between the Town and employees for payment of health benefit costs will revert to 85 -15 if the Town unilaterally implements plan design changes without collective bargaining. The Committee also discussed the implications of the new state law for retired employees, Medicare, and other plan possibilities, including an HRA (Health Reimbursement Account used for premium and funded by the employer at time of need) versus an FSA (Flexible Spending Account which is lost if not used). Bi- monthly reports include utilization and enrollment rates, not eligibility rates. There was a discussion regarding objectives, data collection and future enrollment possibilities to assist in strategizing for the current 92% enrollment rate. • Revolving Funds (Rob Addelson). Mr. Addelson distributed a Summary of Revolving Funds updated as of 4/19/11 showing the FYI spending ceiling for each fund. Mr. Addelson went over the summary and there was a discussion of the trends affecting each fund. The funds are monitored throughout the year, and if spending exceeds revenue the General Fund will absorb some of the costs. 3. Review of Actions at 2011 Annual Town Meeting. The Committee discussed improving coordination with other boards and committees, including the Board of Selectmen, the Capital Expenditures Committee (CEC) and the School Committee. Budget Summits were addressed as a possible setting for these types of discussions in the future. Setting a schedule to April 20, 2011 begin work on the report to the Annual Town Meeting earlier in the year will help the Committee address issues before the warrant is finalized. Town meeting procedures for reconsideration were discussed as well as making a record of Committee votes that were not included in the Committee's written report or that were changed during the Town Meeting. Report printing invoices were sent to Mr. Addelson and they are being processed. 4. House Ways &Means FY 2012 Budget Proposal. The Governor's budget was endorsed by Ways &Means and there will be a reduction in state aid of about $60k. The Committee discussed the snow and ice deficit ($560k) and financing options to include the following: • AC reserve or other internal transfers • FY12 budget surplus ($650k -- the snow and ice deficit could carry forward into FY12) • Revenue ($300k) from next year set aside to cover any anticipated shortfall • Free cash ($4.8m) • Ch. 90 funds (to include an additional $200k more than planned, or a total of $900k) 5. Future Projects and Meeting Topics. The following were identified as potential future projects and meeting topics: • Annual appropriation for design tasks at DPF. This should be planned as a joint meeting with the CEC and Pat Goddard. • Water and wastewater enterprise funds. Mr. Bartenstein will look into the possibility of combining these funds over the summer with the goal of addressing the issue at a September meeting. • Retiree Health Benefits (OPEB). A list of issues and analysis needs to be prepared. • Demographic data /analysis foN Lexington. Cyclical growth patterns and population growth that will impact town revenue and resources need to be evaluated. • Snow and ice removal procedures. Mr. Neumeier and Mr. Michelson will explore cost issues and possible innovations with DPW director Bill Hadley. • Assessments. Review issues brought to light at Town Meeting and meet with the Board of Assessors to address questions. This should not be scheduled before the fall when a new Assessor is expected to be hired. The meeting was adjourned at 9:40 p.m. A list of documents and other exhibits used at the meeting is attached. Respectfully submitted, Andrea Yepez Recording Secretary Approved October 27, 2011 2 April 20, 2011 Exhibits Town of Lexington Appropriation Committee Meeting April 20, 2011 1. Meeting Agenda, posted by Glenn Parker, Chair. 2. Summary of Revolving Funds updated as of 4/19/11, distributed by Rob Addelson. 3