Shutesbury Finance Committee

Minutes from 3/4/03 meeting at Town Hall

APPROVED MINUTES

 

 

Present:  Chair, Eric Stocker, members Al Beswick, Narda Wakoluk, Rita Farrell, Nancy Beswick (recording minutes).  Guest:  David Ames.

Absent Steve Hasbrouck.

 

We started the meeting at 7:05 PM.

 

The minutes of the February 4, 2003 were missing due to Steve’s absence.

 

The Capital Planning Committee meeting is March 18th at 6:00 in Town Hall.  The FinCom’s representatives to this committee are Rita Farrell and Eric Stocker.  Al Beswick had submitted his written report of the School Committee, and there were no questions about the report.  The “small towns”, Pelham, Leverett and Shutesbury, selectboards and finance committees are going to meet to discuss the Regional School budget on March 5th at 7:00 in the Pelham fire station.  There will be an all towns meeting on March 8th at 9:00 in the high school to discuss the same subject.  The vote for the Regional School budget is March 11th.  Narda Wakoluk had distributed the correspondence about the health benefits question for the retiring teachers and municipal employees.  A fact sheet is being drawn up for everyone’s approval before the fact sheet is discussed at a public hearing sometime in April.  David Ames is planning on putting figures together this week showing the cost to the town using the “worst case” scenario.  Nancy Beswick will be the FinCom representative to the Police Union contract talks.  David Kielson submitted the expense report as of 2/28/03 for our review.  The expenses to date are fairly well in line with expectations except for the unemployment line which is over budget. 

 

There was a lengthy discussion and review of the FY04 budget.  David Ames told us that the Governor’s budget is very hard to interpret since the numbers are grouped differently than previous budgets.  The Shutesbury elementary Chapter 70 money is lumped together with the Regional money, and it is very difficult to determine the separate amounts.  It appears that the Regional district will be $1,903,124 less that last year.  This is a 20.2% reduction.  Shutesbury will be receiving $290,117 less or a 34.35% reduction.  Our reduction is less than Leverett (71%) and Pelham (66.98%).  Amherst has a 10.91% reduction.  Since the changes are so dramatic and so uncertain there is no basis on which towns can make any financial plans.  We should expect 10-20% reductions.  The FY04 budget is in $466,777 deficit at this time.  There will be discussion at the March 5th meeting about drawing up a warrant article for all the town meetings to vote on about the Regional Budget.  The generalized warrant article will be sent out approximately two weeks before the Annual Town Meeting.  It will be an insert into the newsletter. 

 

The Finance Committee continues to ask for all employees to agree to a level funded salary line.  This will be even more important now that the regional teachers union has decided not to go without raises.  David Ames will be meeting with the Shutesbury School Committee in executive session on March 12th.  At this time the school principal, the town administrator, and the highway superintendent have existing contracts.  The teachers union, the police chief and the police union are in the process of being negotiated.  Currently the salaries with steps and raises will cost $80,000.  With just 3% raises the salaries will cost $60,000.  Of this $60,000, $20,000 is municipal and $40,000 teachers’ salaries.  David Ames suggested that we put aside in the budget an amount for unemployment every year under foreseen expenses.  It can than be used to pay the town back for the unpredictable costs of unemployment.  There was also a discussion about using “free cash” in areas that don’t impact next year. 

 

The meeting was adjourned at 8:30.  Our next meeting will be March 18th at 7:00 in Town Hall.

 

 

Respectfully submitted,

 

 

 

Nancy D. Beswick

(Acting secretary)