FINANCE COMMITTEE MEETING
The Finance Committee met Saturday, February 18 at the Town Hall for their first 2006 budget meeting. The Committee members are John D’Alessandro, Allen Carlow, Sue McGrath, Thomas Marshall and John Tynan. John Tynan was not able to attend this meeting. The Select Board; Emile Mazur, Chad Wagenknecht and Joe Bettis were in attendance as observers. They were cooperative when questions came up that they could provide information. Sue explained there has to be a secretary to record the minutes. With the absence of John Tynan, the committee members decided to wait to elect a chair person and secretary until the full committee is in attendance. Sue explained to the Committee when requests for budget increases involved her positions, she would step aside on the budget vote so there would be no conflict.
What are the duties of the Finance Committee? The committee was provided a sheet with the duties of the committee which I am providing for information.
"The main responsibility of the committee is to be a resource body on budgeting and finance procedures.
Purpose: The board is responsible for consulting with the Select Board on the annual budget process, for reviewing and making recommendations.
The Finance Committee members, each of whom shall be free from any relationship that, in the opinion of the Select Board, would interfere with the exercise of his or her independent judgment as a member of the committee.
Scope: In accomplishing its assigned responsibilities, the Finance Committee will undertake the following listed duties and such matters within its responsibilities as may warrant its attention.
1. Assist the Select Board in carrying out his or her responsibilities under Article XI, section 4 of the bylaws with respect to preparation and presentation of the annual budget to the Select Board.
2. Facilitate the annual budget process, including recommendations to the Select Board on appointment of the consultative budget group.
3. In consultation with the Select Board, establish such budget tracking and reporting standards as are appropriate to the needs of the Committee and the Select Board.
4. Review the annual budget and make specific recommendations to the Select Board on its adoption, including where desirable, comments on expense levels, revenue structures, fees and charges, adequacy of proposed funding levels of programs, and adequacy of provision of reserves.
5. Undertake a review, at least annually, of the long range financial objectives of the corporation and their ability to sustain the corporation and the accomplishments of its stated mission and programs. Report to the Select Board annually on such objectives, including recommendations for revision as appropriate.
What does all this mean to the Finance Committee members? They make recommendations for a final budget to present to the Select Board. The Select Board does not have to accept their recommendations and can send the budget back with their changes. If the Finance Committee and the Select Board reach an agreement, there is a finalized budget. No agreement, the Select Board can present their budget at the annual town meeting. Although this has happened before, the Finance Committee and the Select Board seem to be cooperative at their first meeting. The Finance Committee members can answer questions at the Annual Town Meeting. All budget items must be approved by a majority vote by the finance committee members."
Since John Tynan was absent and there was no secretary, the Finance Committee and Select Board discussed general items; where the town monies come from for the budget, how to use free cash, the state of the stabilization fund and the general fund.
Thomas Marshall talked about ‘volunteerism’. He questioned why citizens could not volunteer to help the highway department plow the roads. He felt the town should be seeking ways to cut costs and needs to be innovative with coming up with new and unexplored ideas. (At a previous Select Board meeting, this issue was brought up for discussion. The question of the town’s liability was one of the primary concerns. The Select Board didn’t think the town could afford to have residents out on the roads doing the highway department’s job because of liability.)
The largest expense for the town is always the school and highway department. This year, the fire department’s account will be a challenge for the Finance Committee and Select Board. The State has mandated that all Fire Departments have their insurance increased to $500,000.00. Mr. Marshall suggested the town actively seek bids from insurance companies.
The Select Board is seeking a 4% wage increase for the highway department union employees . They are concerned about the stabilization fund and the small amount left in the account. When FEMA reimburses the town for monies spent repairing roads from the October rains, these monies will need to go to the emergency account for repairing roads. Once the road repairs are completed, the remaining money, if any, would go back to the stabilization fund. The stabilization account should provide money for emergency funding. Mr. Mazur said when he started the account had $300,000.00. There is $60,000.00 left in the account now after funding repairs for the road repairs in October. Mr. Wagenknecht said he considers the Stabilization Account to be a ‘rainy day fund’ to be used for unexpected purchases to keep the town running.
There was a brief discussion about taking wages out of the ‘snow and ice’ account. Mr. Wagenknecht explained the highway department union employees cannot receive "compensation" time and overtime. He said it is against the law.
The Select Board believes moving wages from the snow and ice account will provide a better understanding of the financial picture of the town. Mr. Wagenknecht further explained the town can never go to the State when a ‘State of Emergency’ occurs for reimbursement on these occasions since the wages are rolled into the snow and ice account. The town can be reimbursed if all wages for the highway department are in the line item wages.
Mr. Mazur explained to the members that the Select Board has to go to the town every year for transfer of funds to cover the overdrawn the snow and ice account. The price for sand and salt continually increases. Mr. Marshall asked if there was a better way to get lower prices for sand and salt. Mr. Mazur responded it was a county bid. The town was purchasing the sand and salt at prices as low as the town could purchase.
The next Finance Committee meeting will be held Saturday, March 4, at 10 A.M. Residents of the town are encouraged to attend these meetings to find out prior to the Annual Town Meeting how the budget is developed.

(My personal reflection from attending Select Board meetings and the first Finance Committee meeting. I understand the town employees needing a raise. Trying to balance what the town needs in tax increases and what income I have to support the town is a balancing act that each of us faces. When I receive a 2% wage increase before taxes, I have to ask myself if my portion of the tax burden equals my 2% after taxes. If not, where will I come up with the money. All of us have a ‘rainy day fund’. My ‘rainy day fund’ is my savings account. I don’t know about you, but I have had to tap my ‘rainy day fund’ just to keep up with the increase in electricity, heating fuel, and gas prices for my vehicle. The select board has these same concerns for keeping the town viable. Having come from a union background like many of the residents, I know each of us knows and understands the importance of being paid for the work we perform. I, also, know that unions can make wage demands that will cause the residents to ask what is fair. I expect the Select Board to represent me in their negotiations and demand a fair wage increase. It will be difficult to reach an increase percentage that will please all of us, but compromises are what the union and Select Board are all about. The Select Board has to balance what the union requests and the townspeople can afford without dipping into the Stabilization Fund. Last year the tax rate went down and the valuation of our homes went up. Did you see an increase in you property tax?
If you have issues about the budget, don’t wait until the Annual Town Meeting; attend a Select Board meeting or Finance Committee Meeting to see how the budget is being formulated. I have been surprised to attend ATMs and see support for overrides and then have the proposition voted down when we go to the ballot box. The vote at the ATM is not for the override, but to get the issue to a ballot vote. It takes a two-thirds majority to pass an override and get it to a ballot . At the ballot vote, we vote for or against the override. It is expensive to have a special vote and have it turned down. I understand attendees not wanting to vote against an override ballot at the ATM. I am also reluctant because I don’t want fellow residents and the Select Board to see my hand go up against an override ballot. I do have mixed feelings, just as you, because all residents should have a vote on this critical issue. If more residents attended the ATM, maybe we would all feel comfortable expressing our concern and standing up when we voted. At the very least if we voted for an override ballot, we would all have a better indication of how the ballot vote would turn out. Mr. Mazur is not running for another term. He will complete his current term in May. I would like to offer this blog as an opportunity for anyone considering running for Mr. Mazur’s position and any vacancy to write information about yourself. Why you want the position; what qualifies you for the position; and why the residents should vote for you.
There are a number of new residents in town. We don’t know you. The usual way to get elected to a position in town is to get your family, friends and their friends; to vote for you. Give us all a chance to make a decision as to who is best to represent the town. This town is in a serious situation. We don’t want to be taken over by the State by being put into receivership. There are towns in this State that have been put in this position because they do not have sufficient funds to operate.
Chad Wagenknecht and Joe Bettis have been diligent in learning their position as Select Board members. With Mr. Mazur leaving, they will need the townspeople support. Hopefully, the person who runs for Mr. Mazur’s vacancy will complement them.
If you are interested in learning more about either Savoy or other towns, check out the following web site www.Mass.gov. After you have gotten on the site, go to the section for Online Services (orange heading) and select (More). Scroll down until you come to the heading Local Government, scroll under Local Government and select DLS Municipal DataBank. You select the town you want to research. I have to thank my co-worker for making me aware of this information. by Brenda Smith