40:30The meeting’s most discussion centered around the town’s health insurance plans offered through the Massachusetts Interlocal Insurance Association (Maya). It was clarified that Danvers is not self-insuring but relies on a managed plan with Blue Cross Blue Shield of New England, benefiting from lower administrative fees due to the cooperative nature of Maya. However, rising costs remain an issue, influenced by factors such as increased mental health service utilization and new medications. To address these concerns, there was an emphasis on educating employees about their health plans through sessions organized by the Employee Advisory Committee. This education is seen as crucial, given the inevitability of rate increases, although potentially smaller than in previous years. The board also discussed options for cost savings, including adjustments to co-pays and employee contributions, and considered the potential benefits of a more robust opt-out incentive for employees who choose not to utilize the town’s health insurance.

08:23Another topic was the budget review for various town departments. The town manager’s budget was presented with a 7.94% increase, attributed to rising postage costs and a potential need for a larger leasing machine. Meanwhile, the budget for legal counsel, primarily allocated to Murphy Hessie, remained level funded. The legislative budgets showed a slight increase in the Select Board budget due to an annual fee for the Massachusetts Municipal Association, and the Finance Committee reserve budget was recognized as level funded at $125,000.

20:31The meeting also addressed the upcoming local elections, with preparations underway for implementing vote-by-mail options and early in-person voting. Early voting is scheduled for one day only, from 10 a.m. to 4 p.m. on the upcoming Saturday. Renovations to the election office were discussed, aimed at improving the workspace for managing elections, with changes made following the less effective configuration used during COVID-19.

23:42In addition to these discussions, the board reviewed the accounting budget, which saw a 4.5% increase mainly due to contractual salary increases. The assessing budget highlighted a reorganization that included creating a data analyst position to better control cyclical inspections. The treasure collector’s budget was presented, noting an increase in bill printing and software maintenance costs. A member inquired about these costs in light of decreased demand for printed bills, which was explained by the need for motor vehicle bill mailings.

27:50Furthermore, the debt service budget revealed a decline due to some debts falling off the schedule, while a new addition involved financing a $750,000 acquisition of a preservation restriction at the Rebecca Nurse Homestead. This acquisition is part of an open space plan and includes infrastructure work on the property. Discussions also touched on the town’s bond rating and its independence from the current debt service structure, with potential interest rate impacts for future borrowing being considered.

29:52The Danvers Retirement System was addressed, revealing it is currently 64.5% funded with an adjusted assumed rate of return to 7%. Legal services costs have increased due to hourly rate hikes and outstanding bills. The total assets in the retirement fund were noted to be approximately $160 million, with projections indicating an increase in capacity for funding that could reach $14 million by 2035.

34:27Lastly, the benefits and insurance budget was presented, focusing on a level funding strategy for various transfers. The main driver for increases was a 10.9% renewal rate for employee insurance, fueled by higher utilization rates and increasing prescription drug costs. The loss ratio for the plan stood at 96.49%, adding further financial strain.