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HomeMy Public PortalAbout20100310 - Appropriations Committee - Meeting MinutesTown ofHopkinton Appropriation Committee (AC) Rtc~Minutes ofMeeting on Wednesday, March 10,2010 TOWN OF HOPKltHONFirst Floor, Town Hall, Hopkinton, Massachusetts 20\0 M~R 2\..1 A U: 3b In attendance: TOWN CLERK'S OFFlCE Stuart Cowart Norman Khumalo, Town Manager Ron Eldridge Mary Lou Haroian Chairman Eldridge called the meeting to order at 7:00 pm. Stuart moved and Ron seconded a motion to accept the minutes ofour meeting on Wednesday, March 3, 2010. The motion passed unanimously. Ron informed the AC that the Board of Selectmen (BOS) would be forwarding their proposed fiscal year 2011 budget to our committee after their next meeting, which is scheduled for Monday, March 15. The School Committee (SC) and the Appropriation Committee have both been invited to that meeting. Ron filled the AC in on his recent discussions with representatives ofthe BOS and the Sc. He informed the BOS that AC members had differing opinions on the issue of increases to the reserve fund and the stabilization fund, but were in agreement about their concern surrounding the budgeted payroll increases at the school department. The concerns are two-fold: 1. from a strategic standpoint, including increases in any budget when negotiations are in process seems likely to impact the negotiations in a way that will not be favorable to taxpayers and 2. increasing any payroll expenses given the current economic environment does not seem to be a fiscally responsible thing to do. Ron also informed the Committee that as a result of his recent discussions with the SC Chairman, it was determined that there does not appear to be a provision in the current contract with the collective bargaining units at the school requiring the Town to provide for step and lane increases in FY 2011, in the event a contract has not been signed before 6/30/2010. Rather, this policy has been dictated by past practices and case law. The AC agreed that it would extend an invitation to the SC to present to us the reasons it considers the $550K step and lane increases in the current budget to be contractual obligations. Norman informed the AC that he has met with all ofthe other non-school collective bargaining units in the Town and requested that they reopen their contract negotiations with the Town and consider taking a 0% increase in fiscal year 2011 (despite having previously negotiated a 3% increase). Norman noted that this is a highly unusual step he has taken, but that we are experiencing highly unusual financial times and he therefore considers it appropriate. Ron requested that Norman provide the AC with the dollar value of all contractual salary dollars and increases in the fiscal year 2011 budget. Ron reported on a meeting with Bob Bushway of the Assessors office. Bob confirmed that given the current FY 2011 budget, total tax revenues next year will be increasing by approximately $900,000 or 2%. However, $500,000 ofthat amount is new growth, and therefore will not impact individual taxpayers. Current taxpayers will be assessed an increase of approximately $392,000 or .87% to pay for the currently proposed FY 2011 budget. Discussion ensued about the likelihood of the existing state aid line item in the budget reflecting reality in fiscal year 2011. The current budget leaves Chapter 70 monies (approx $5M) the same as in FY 2010, and reduces local aid (approx $1.6M) by 10% from 2010 levels. It was noted that it's impossible to forecast these numbers at this date. Ron requested that Heidi restate fiscal year 2010 appropriated amounts to reflect recent organizational changes. We would like to see a column added to the Town Meeting Booklet entitled "2010 Budget, Restated Per 2011 Reorganization." This will enable citizens to easily compare FY 2011 budgeted amounts to FY 2010 appropriated amounts. Norman suggested one article on the Annual Town Meeting Warrant to accommodate all operating expenses of the town. In the past, the budget has been presented to Town Meeting in multiple articles. The AC will consider this proposition. Norman expressed his desire to create a permanent Building Committee in town, having members with expertise in engineering, architecture, construction, finance, and legal matters. The Committee would also include a citizen-at-large and a representative ofthe department for whom the building is being constructed. Norman noted that a permanent building committee would satisfy all requirements of Massachusetts General Laws requiring Town Manager oversight of capital projects. Norman also brought up the subject ofthe Town's substantial unfunded pension liability. According to GASB # 45, towns are required to quantify their existing pension liabilities, but are not yet required to accrue for them. Norman suspects that some time in the not too distant future, towns will have to start accruing for their pension liabilities. At 8: 10 pm, Stuart moved and Ron seconded a motion to adjourn. The motion passed unanimously.