01/09/2020 FINANCE COMMITTEE Minutes

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6 Finance Committee Minutes January 9, 2020 NEW BUSINESS FY2021 Budget Review& Schedule: The Finance Committee continued their review of the FY2021 budget, the FY2020 budget and FY2018 and FY2019 budget actuals as it relates to growth and increases. In FY2019 YOY growth increased by 3.9%. In FY2020 the increase was 9.9%. The projected FY2021 YOY growth rate is 3.2%. The Selectmen's budget in FY19 was $695,440. The 11.9% increase grew by 17.6% in FY2020 to $817,859. A 1.2% increase is projected in FY2021. It was noted the budget increase is reflective of surges in the Legal and Engineering Account. Information Technology is seeing a 19.0% escalation in FY2021. At the budget meeting there were no discussions regarding offset potentials. It was noted that projects adding to the increase include cyber security, monitoring services and software. The School Department is projecting a 3.5% increase in their $22,954,314 budget, most of which is contractual. The YOY- FY2019 budget increased by 2.1%. In FY2020 there was a 4.3% expansion in the School budget. Discussion followed regarding turn-backs estimated at 3.1% in the $60 m. budget. If the projection subtracted the school (-$22 m.), the turn back estimation would result in a higher percentage. As noted Town Manager Rodney C. Collins has previously stated his Department Heads are requested to submit a budget based upon mission critical and operational needs in order to provide essential services. Expense items are required to be justified and practices to reduce costs are explored. In past Finance Committee discussions Town Manager Rodney C. Collins has indicated his employees are not penalized for returning funds. As the Finance Committee continued their review of the budget medical Insurance was noted to be one of the largest contributors to free cash flow. In considering costs associated to the respective medical and insurance line items it was determined this is a logical method of budgeting, and with unknown expenses, it is easier to budget at a higher rate. This process is well worth sound planning to strengthen medical projections. It was noted that 3-year contract negotiations are ongoing and forthcoming for all (9) collective bargaining units.