2/2/1999 FINANCE COMMITTEE Minutes

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BUDGET DISCUSSIONS BOB WHMTE OU , EXECUTIVE-S CREMA Y DIANE ROMMELMEYER., TOWNACCOUNTANT: M;Ekb-whritenmr; -Secfetary, r M an - ori m imeyer,Town-Accountant, were present to discuss the Town of Mahpee,Fiscal Year 2000 Budget. Mr: Whritenour-thanked-the Finan Committm for ng.him the opportunity-to review the budget with the Finance Committee and give an update on what has been done so far. H noted-that they-a still arac-fairly pr li -nar uncftmin-the budget process_ Nor, Whritenour stated that after receiving and reviewing the budget requests from the departments, there is a shortfall of-apprwd nately$3-P00,000. Mr. Whritenour compared the Fiscal Year 2000 Budget to the Fiscal Year 1999 Budget: He con ncnt d that abourthis time last-year,there was-a$3;000;000 shortfall: However, he noted that there are some differences this year— Last year,there was a$1,000,000+in the Stabilization Fund. fast year, $950,000 was used from the Stabilization Fund in order to avoid an ovede for the School Department. He added-that there is-about$400,000,in this year's Stabilization Fund. i In addition,Mr Whritenour,stated that this year in the budget you will see n increase that is pretty significant on some overhead nexus. He added that, opposed W last year, theoz tr ctuaa ary�increa es-are in the budget.- There is a fixed overhead item that is several hundred thousand dollars in order to meet those contractual"obligations. Some of'the overhead items were noted as$200,000 in County Retirement alone that is an increase as a result of the way the-formulas-work- There-is-an-enormous-problem-that-they are facing-with.the health insurance. The health insurance costs are not for the insurance,but for the cost,o 'the services. Mr. Whritenour stated-that,they may see an increas o 10-15%in health insurance. The reason for this is that the actual dollar cost of fi ing-peopte., prescriptions-along-with-th -costofd for and-hospitals are going up significantly. There was discussion between ll . Whritenour and the Finance ConYmite members concerning the costs associated with the health care plans and pmm"es. Mr. Whritenour rotthat they are wording on the overall plan design and- v to use the benefits of the puns. He noted that they are trying to introduce more managed care alternatives. He noted they have the HMO Platz and the Blue Cress Blue Shield Plan and Mated that they are trying to get some additional alternatives. Chairwoman G ul rt questioned Nor. Whritenour whether they pay the.same arno nt 4 of money for each employee. Mr. Whritenour stated that they do not pay the same for each employee. He noted that it depends on what program they sign up for and whether they have the family plan, individual plan,or single plan. The Town � contributes 75%o the plea cost.