Minutes of the Finance Committee Meeting, March 25, 2003

Judge Welsh Hearing Room, Town Hall, Provincetown, MA 02657

Present: Chair Sue Buerkel, Ruth Gilbert, Ann Maguire, Matthew Clark, Tom Thurston, Gail Enos and Rick Holland.

Meeting called to order at 4:04PM

Also present: Town Manager, Keith Bergman

Minutes of March 18, 2003 meeting were reviewed. Motion to accept with the following change: page 1 bottom- insert STM-10 instead of land use issues.

Moved: Rick Holland, Second: Tom Thurston. Accepted as amended 5:0:2.

Minutes of March 19, 2003 meeting were reviewed. Motion to accept with the following change: title should be Wednesday instead of Tuesday.

Moved: Tom Thurston, Second: Gail Enos. Accepted as amended 5:0:2.

Continued Review of Special and Annual Town Meeting Articles

STM-17 Accept MGL C.59, 5 clause 41C for Adjustments to Eligibility Requirements. This article is being revisited as Fin Com previously voted to reserve recommendation until Dana Faris, Town Assessor met with Board of Assessors. The Board voted to amend the article to only include changes to the proposed income limits. From $13,000 to $20,000 for singles and $15,000 to $30,000 for married. Concern was raised if this would exclude domestic partners. Dana Faris said that it is up to the Board of Assessors to determine that and they have always included domestic partner relationships in marriage eligibility matters.

Jennifer Bedard arrived at 4:17PM

Motion to accept amended article. Moved: Rick Holland, Second: Gail Enos and it passed unanimously. 8:0:0. (Rick Holland)

Cape End Manor Discussion and Article Review

Present: Dennis Anderson, CEO, Eileen Thomas, Administrator, Brian Shay, Shop Steward and Marilyn Downey, Board of Directors.

Cutbacks in Medicaid and Medicare reimbursement pose a danger to quality of care and continued favorable ratings. Cuts at the bedside have to be made. (Keith Bergman reported that the Board of Selectman requested a meeting with the Governor in February to discuss the Manor. Lt. Governor will be on the Cape on Friday, March 28, 2003 to meet with local officials and Keith will confirm the promised meeting for sometime in the future).

Last few years deficits have been around $300,000 and rising. Projected deficit for FY2003 is $700,000. 70% of funding comes from Mass Health which is down 10% from 6 years ago. The Governor’s budget calls fore cuts of $170,000 but the legislature is expected to make it even larger. Medicare will be reduced 5%.

Dennis Anderson explained that a plan of 5 rounds of cost reduction was designed and implemented and they are currently operating at round 3; reduced care at bedside, no expectation of deficiency free status anymore, cutback in staff hours, activity programs reduced 50% and removal of all corporate compliance actions.

Rick Holland left the meeting at 4:55PM.

Ann Maguire asked what the first rounds were. Round 1 occurred in September with a target of 3% reduction, actual was 2%. Round 2 occurred in December with a target of 6% reduction, actual was 4%. Round 3 occurred in January with a target of 7% reduction. Ruth Gilbert asked what would happen in Round 4. That would require the layoffs of 6 full time employees.

Budget is based on census projection. 2003 was 49, 2004 is 46.

Marilyn Downey talked about Inter-Governmental Transfer (IGT) funds from the tobacco fund which the Manor has applied for and expects to receive. Last year the MA State Attorney General received $70 million dollars in IGT funds to distribute for health issues. She has also discovered that there is something called Rural Health Access money available and which Provincetown meets the criteria. She made a plea for more time-recommendation of STM-5- to try to find additional funding sources like the above. Brian Shay spoke in favor of STM-5 as well, in light of overwhelming support for the Manor at previous Town Meetings and in hopes of finding other options.

Cape End Manor FY2004 Budget Review

Sue Buerkel questioned clerical overtime in A budget. In prior cost cutting measures a full time position was cut resulting in 1 employee doing 2 jobs. She also questioned laundry expensed in both A & B budgets which totals $128,000 asked if they have considered sending laundry out. The answer was yes, but many laundry services won’t do BioMed, would require increase in inventory and issues with Provincetown being so far away. Was reported that most facilities do it in house.

Dennis Anderson was asked to provide a roster of current staff and validation of indirect costs of health insurance-which he agreed to do.

Motion to accept budget as written. Moved: Ann Maguire, Second: Tom Thurston and it passed unanimously. 7:0:0.

STM-3 Fund AFSCME Cape End Manor Unit Collective Bargaining Agreement-$94,648

Motion to accept as written. Moved: Ruth Gilbert, Second: Ann Maguire and it passed. 6:0:1. (Rick Holland)

STM-4 Cape End Manor FY2003 Supplemental Appropriation-$210,678

Dennis Anderson reported that this should be covered with anticipated additional revenue. Motion to accept as written. Moved: Ann Maguire, Second: Matthew Clark and it passed unanimously. 7:0:0. (Rick Holland)

Ruth Gilbert requested that the Finance Committee have the total figures spent in pursuing Site Y.

STM-5 Future of Cape End Manor-Options-$40,000

Ruth Gilbert wants to make sure that voters at Town Meeting know that this article is meant to buy time to figure out options and get IGT funds.

Motion to accept as written. Moved: Ann Maguire, Second: Matthew Clark and it passed unanimously. 7:0:0. (Ruth Gilbert)

Fin Com message to Town Meeting due ASAP.

Next meeting is Tuesday, April 1, 2003 at 4PM

Ann Maguire left meeting at 6:30PM

Motion was made to reserve recommendation on the following articles:

STM-8, 9, 10, 19 and ATM- 32 and 15 if there is a quorum.

Moved: Ruth Gilbert, Second: Gail Enos and it passed unanimously. 6:0:0.

Discussion of hot topics to be included in message to voters.

Motion was made to continue this meeting on Thursday, March 27, 2003 at 3PM to finalize message for Town Meeting. Moved: Ruth Gilbert, Second: Gail Enos and it passed unanimously. 6:0:0.

Continuation of March 25, 2003 meeting began at 3PM in

the Caucus Hall on Thursday, March 27, 2003

Present: Chair Sue Buerkel, Ruth Gilbert, Gail Enos and Rick Holland

Discussion and final drafting of Finance Committee message to Town Meeting voters.

Motion to adjourn meeting. Moved: Rick Holland, Second: Gail Enos, passed unanimously. 4:0:0.

Meeting adjourned at 4:35PM

Respectfully submitted,

Phyllis Lutsky

Recording Secretary