Shutesbury Board of Selectmen March 3, 2009 Meeting Minutes Members present: Chairman Rebecca “Becky” Torres, Ralph Armstrong and Al Springer. Also Present: Town Administrator David C. Dann and Leslie Bracebridge, recording. Meeting opened at 7:12 P.M. Appointments At 7:30 PM Selectmen met with Town Accountant Gail Weis, Town Treasurer Gabriele “Gabe” Voelker, Town Collector Ellen McKay, Board of Assessors Chairman Amanda Alix and member Stephen Schmidt, Finance Committee Chairman Eric Stocker and members Elaine Puleo, Lori Tuominen and F. “Rus” Wilson, School Committee Chairman Michael DeChiara and Regional School Committee representative Marianne Jorgensen to review budget draft #7: Revenues: Significant reductions are anticipated in revenues: Chapter 70 is level funded; lottery aid has a 28% reduction. The FY 10 budget is up $4,000 from FY 09. It is not known when the state budget process will be complete. The FY 10 budget is conservative yet realistic. Expenses: The FY 10 budget reflects the Select Board and Finance Committee vote to not award any cost of living adjustments (COLA) even though some contracts have not been voted or re-opened yet. * The Finance Committee reserve budget has been increased for unforeseen soil contamination costs at the Fire Station and to cover snow removal overdrafts. * Current Finance Committee reserves are approximately $52,000. * Veterans’ expenses will increase a small amount for the remainder of this year and we have instruction to budget $10,000 more for next year. * The hours for the Assistant Town Clerk and the Assessors Clerk were restored. A reduction of hours would only happen after discussion with the Personnel Board and the appropriate supervisors. * A decision as to whether to appoint a Police Sergeant will be made with the Police Chief. Current Police Department staffing is: a full time chief, a full time patrol officer, and one part time officer at 20 hours and two part time officer doing one shift each week. * There is no change to the education component: which is o Still at a 2.75% increase at the elementary level. and o A zero assessment to the Amherst-Pelham region for the Town of Shutesbury. Amherst is very likely looking at more cuts. * The Selectmen and Finance Committee created a new budget line this year for energy efficiency projects funded by the difference between the 2.75% budget increase instead of 3%. * The unemployment line was increased by $10,000. * Recent years’ more accurate projections of revenues and expenses have resulted in less free cash. It is doubtful that FY 09 or FY 10 will generate any extra free cash. * Presently the budget has a $45,517.00 gap. * The salary line showing a 3.15% increase for the new Town Administrator was questioned. Shouldn’t that salary start lower than the current salary? David responded that department heads in contracted positions have an opportunity to negotiate a salary at the time of hire. The salary range selected is from $47,000 to $52,000. * Town Treasurer Voelker: Every year the budget runs tighter and tighter. Free cash is vitally important to running the town. If free cash goes any lower, she will have to borrow just to pay bills. Borrowing costs will be $10,000 to 15,000/year just to run the budget. If free cash is kept at the current level, we will “make it.” If we use it, then we will need additional funds for borrowing. * Town Accountant Gail Weiss: Suggests that a letter be sent to town departments requesting they don’t do extra end of year spending just to empty their accounts. o Collector McKay explains that historically budgets get cut when extra funds remain in the previous year. She needs to order her postage (a big expense for the Collector) and if she doesn’t buy it, she looses the funds in the next year. o Finance Committee member Elaine Puleo: Recommends the letter state that the Finance Committee will not cut the next years’ budgets of departments that leave some funds behind. * Assessor Steve Schmidt sees the $45,000 hole and asks, “Where are the big increases?” o Line 92 shows a $44,560 increase for the elementary school. o Monday, March 9 is the first teacher salary negotiation meeting. o The first elementary school FY 10 budget started at a 3.4% increase. At the Finance Committee request they came back at a 2.75% increase. o Even though the School Committee is autonomous, the committee has made its budget available. o How would a 0% salary increase impact the 2.75% increase in the school budget? * The school based their budget on the town parameter. * It’s within the school’s prerogative to give raises. * The School Committee can also choose to put forth its own budget and let the town vote on it. * School Committee Chairman Michael DeChiara: The School Committee is cognizant that the whole town has to work together; the Committee also must budget for the quality and integrity of the school. * If the school does give the 3% COLA will the town employees still not get a COLA? COLA is only one piece of the teachers’ raises. Answer: The School Committee negotiates separately and in good faith; the town cannot dictate teacher salaries. * How does the town run a budget within shrinking limits? * Town Administrator David Dan spoke with Auditor Tom Scanlon who agreed to do a 3-year audit for only $1,000 more than the $14,000 previously budgeted for a 2-year audit. * This budget still has the regional school at a zero % increase. Shutesbury’s number should go down by $20,000 or more (1.4% reduction) with the region’s best case scenario. o The towns are waiting for another meeting of the 4 towns. o Without a Superintendent in place, the regional schools are in a “holding pattern.” * Give Amherst a chance to get it out and grapple with it. The regional meetings are televised. We made our point. * The Amherst Finance Committee collected email addresses to share information with all the towns. So, Marianne will speak in support of the budget. * Leverett’s town meeting is the first of the four towns, April 25th. * Review of the future hardware and software issues among the financial departments: o We’re way too small for the costs of a server. o Back-up hard drives, memory sticks, and emailing information to oneself are still the most cost effective, practical methods for preserving information in our size town. There could be confidentiality problems with putting the information online. * Michael DeChiara: The lunch program historically runs a deficit. The Principal has been tasked to look at it. Changes have been made. Gas and food prices are up. We need to consider raising the price of the meals. The commodities are not covering the cost of food anymore. The manager is qualified for a higher wage. * Continued discussion of wages/school budgets: o Michael: The school is such a big part of the budget we want to do away with town versus school. The problem with across the board 0% COLA is “good faith bargaining.” To know what the outcome is going to be is not “good faith.” We’re trying to think creatively. o Elaine suggests 2 options: We could determine how much more we want to cut the elementary school budget; then it’s up to you. Or, we could postpone the discussion of the budget at town meeting until we’re finished with contract negotiations. o Michael saw the first option to be the most acceptable to the school. After further discussion, and with the Finance Committee’s understanding that the fuel bids for the elementary school came in at $22,000 less than had been budgeted, the Finance Committee unanimously voted to cut $21,000 from the regional budget and $23,000 from the elementary school budget, leaving the proposed FY 10 town total budget balanced. Further, they discussed having a special town meeting in the new fiscal year to change the salary lines for all town employees to match any COLA achieved by the teachers, to be financed by Finance Comm reserve funds. A draft letter requesting school and Union 28 personnel to accept zero COLA’s was discarded. The Finance Committee unanimously voted the expenditures from Finance Committee reserves of: 1. $574.65 for short term borrowing, and 2. $6298.000 for veterans benefits (about 75% of which will be reimbursed in about 12 months) Before the Finance Committee adjourned, Eric announced: The next Finance Committee meeting is on March 24. The next Regionalization Study Committee meeting is March 7. Elaine will go. Topics 1. Town Administrator Search Committee: not discussed. 2. FY 10 Budget Cuts: Becky reported from the Saturday 4-town regional meeting that all of this time Shutesbury and surrounding towns have been budgeting for level 1 cuts to the regional school budget, the Amherst Finance Committee has actually been looking at level 3 cuts. 3. Farmers Market: David will put an announcement on the town website to buy seeds for this summer’s Farmer’s Market. Posters will be made for the town hall, post office and library. A meeting of the farmers will be called for Saturday, April 25 at 9 AM to plan for the summer events. Non-profit groups will be invited to host a coffee bar where donations will be gladly accepted for fund-raising. Select Board Action Items 1. Selectmen did not discuss previous meeting minutes. Selectmen signed vendor warrants totaling $53,313.56 and payroll warrants totaling $78,934.58. Selectmen unanimously voted to sign a Personnel Action Form (PAF) for Police Officer Nick Chandler who resigned to go to work in Amherst. 2. Selectmen received an up-dated Town Administrator job description put forth by the Personnel Board. 3. Ralph agreed to do the Highway contract negotiation, Becky agreed to do the Fire Chief contract negotiation (and Ralph will back her up if she isn’t available) and Al will do the Police Chief contract negotiation. New Topics 1. Selectmen welcomed the good news that Ralph’s son is safely back from Iraq. 2. Becky announced that she is resigning from the Board of Selectmen effective March 3, 2009 in keeping with Ethics Commission advisory 96.01 to free herself up to throw herself into the pool of applicants for the Town Administrator position. She regrets the timing because it comes at the most challenging time in one of the worst budget years. While the timing is a terrible problem there is no certainty of what will happen but there is certainty that if she does not resign at this time she cannot throw her hat into the ring. So with a nervous stomach she leaves her chair knowing that those assembled will make the best decisions for the town on the budget and how to work with the other towns moving into the future. It’s been a privilege to work with so many gifted and wonderful people. (Becky has been advised that she must have clear separation from the Board of Selectmen in order to apply for the Town Administrator position. She has been advised that she can work on something for the town as long as the position is clearly separated from the work of the Select Board.) In response to the announced resignation, the remaining Selectmen called a special meeting for Friday, March 6 at 7 AM. A motion was made, seconded and unanimously voted to adjourn at 10:40 P.M. Respectfully submitted, Leslie Bracebridge Administrative Secretary