Thursday, January 15, 2009

Live reporting - Financial Planning Committee

Attending: Roche, Bartlett, Cameron, Hardesty, Nutting, Wilschek, Kelly, Ogden, Trahan, Zollo
Absent: Whalen

Meeting opens

Working listing of action items to pull the presentation together (numbered listing that follows)

add self-help items - average person working in lieu of taxes provides about 8000 hours of labor to help the DPW, library, etc.

Report Category
1 - Assumptions (Cameron)
wrote out from the budget draft that Jeff had put together earlier

Outline format to tell the story so those who won't be able to read and understand the table of numbers will get the gist of what is occurring.

Rationalization will be key, a range of 3-5% on one number may not have the same effect on the budget that another number could have a range of 2 - 2.5% and have a significant effect.

Justification for the numbers, i.e. what is the driving factor, health insurance, or lane changes per contract.

Formatting is not important at this time, it is more important to get the content section down.

2 - Benchmarking component (Whalen)
comparison of Franklin to other towns, comparison of Franklin within, i.e. trends
looking to identify the appropriate peer group for Franklin
explain why some towns that some would think would be comparable are not in the report
need good rational for what is included and what is excluded

simply need to demonstrate that the town is responsible, that there is no obvious low hanging fruit

3 - Financial Model/Sensitivity Analysis (Hardesty)
doesn't want to re-do the numbers just yet as the numbers are so much influx at this time, the approach will be the same, will just update with the actual numbers when they become available.

How to enhance revenue or reduce costs with things that can be done easily
For the gap beyond that, this would then list out the choices
taking a layered approach, baseline (level 1) plus (level 2) listing the assumptions that drive the changes

4 - HR Matters (Trahan)
Done with Wayne and Jeff, handout provided with summary
85-90% of the town employees are unionized
the unions have been cooperative in negotiations, the raises have been very reasonable

include the post retirement underfunded liability as an assumption and foot note, unless legislation changing this, it is reportable but would not effect the planning for our time line

5 - Revenue/Expense Enhancements (Zollo)
Will have something formal for the committee next time, a top ten list or a growing total and show the growth over the past and going forward. How far back do we want to go? For credibility, go back at least as far as Jeff. Current management is striving to be efficient. Proposed to go back as afar as 2001. Maybe not the full ten or fifteen, show at least the significant ones.

Appendix listing can show them all, but the top list would cover the 80/20 rule. Factor in the inflation and show what it could have been versus what it is today.

There are two kinds of savings, cuts and efficiencies. Trying to color each to show how they contributed.

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