03/21/2019 FINANCE COMMITTEE Minutes

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5 Finance Committee Minutes March 21, 2019 OLD BUSINESS Continued Review&Approval of MU 2019 Annual Town Meeting Warrant: (continued) The exercise of reviewing the budget in detail is a part of the directive of the Finance Committee in conducting its deliberations for the Annual Town Meeting warrant. For disclosure, and responding to discussions conveyed at the last Finance Committee meeting, it was assumed that members of the Finance Committee would meet with the Town Manager to review the proposed FY2020 Town Manager's budget in detail to allow adequate response to any questions and indecisive matters. For the record, Town Manager Rodney C. Collins prepared a written response to the findings of the Finance Committee working group dated March 21, 2019. For disclosure, the information was read aloud into the record. (enclosure) In his memorandum to the Finance Committee, Town Manager Rodney C. Collins responded to the comments initiated by the working group regarding potential findings in their memorandum of March 18, 2019. (enclosure) The summary of potential opportunities listed the Town Insurance category of the FY20 operating budget, recommend a$125,000 reduction. Findings of the Finance Committee in assessing this category state the 2020 budget request of$869.8 is reflective of a 4.5% increase, and the insurance budget represents 43% increase over 2018 actuals. Town Manager Collins indicated the proposed Town Insurance reduction does not factor in MITA Reward Credits, and the work of staff members taking advantage of opportunities to reduce premiums. The Town has been able to reduce substantial costs through the rewards program and with the proper management of claims to reduce liability and limit exposure. The working group recommended potential opportunities by proposing a reduction in Medical Insurance by $200,000 to $400,000. In response to this proposal Town Manager Rodney C. Collins indicated there is little control over enrollments. In 2018,the Town received 12 new and unanticipated enrollments from the Schools. The budget as presented adequately addresses unforeseen expenditures in this category. The Finance Committee in their review provided potential opportunities proposed a reduction of $40,000 in Library spending. If the budget was reduced positions would be reduced and certification would be at risk. The $4 million in grant funds for the Library construction is contingent upon the retaining of certification.