Laserfiche WebLink
Minutes of the Joint Board of Selectmen/RMLD/FinCom Meeting <br /> February 24, 1992 <br /> The meeting was convened at 7:35 p.m. in the Cafetorium at Killam <br /> School. The respective bodies were called to order by their <br /> chairmen. Present were the following: RMLD - Chairman James <br /> O'Leary, David Swyter, Allan Ames, Bill Hughes, General Manager <br /> Len Rucker, Division Managers Vin Cameron, Richard Murch, Paul <br /> Carson, Counsel Ken Barna; Board of Selectmen - Chairman Eugene <br /> Nigro, Vice Chairman Dan Ensminger, Selectmen George Hines and <br /> Russ Graham, Town Manager Peter I. Hechenbleikner; FinCom - <br /> Chairman Bill Burditt, Vice Chairman Fred Van Magness, FinCom <br /> Members Nate White, Pete Dahl, Richard Coco, Carroll McMillan, <br /> Gerry MacDonald. Also present were the following list of inter- <br /> ested parties: Ron Wood, Linda Bernat, Steve Thomases, Maria <br /> Silvaggi, Anthony Rickley, William Brown, Jim Keigley, Gloria <br /> Hulse, Harold Hulse, Stuart LeClaire, and Adele Blunt. <br /> Chairman Jim O'Leary of the RMLD welcomed the members of the <br /> Board of Selectmen and the Finance Committee, and outlined the <br /> proposed procedures for the evening. <br /> Chairman Eugene Nigro thanked the RMLD for meeting with us. He <br /> expressed the need to explore all possible sources of additional <br /> revenue since the Town is exhausted its financial reserves. At a <br /> previous joint meeting of the FinCom and the RMLD, the issue of <br /> increasing the payment from the RMLD to the Town for the earnings <br /> distribution came up. This would required bonding authority for <br /> the RMLD. The Board hopes to explore that alternative in the <br /> spirit of cooperation. <br /> Bill Burditt, Chairman of the FinCom, also expressed appreciation <br /> to the RMLD for meeting and hoped that we would be able to gener- <br /> ate additional revenue for the Town as a result of this meeting. <br /> Len Rucker made a presentation to the assembled group, assisted <br /> by overhead viewgraphs. He indicated that the Reading voters <br /> elect the Light Board, and that Reading Town Meeting approval is <br /> needed for most types of bonding. The Town Treasurer and Town <br /> Accountant assist the RMLD with bill paying and payroll, the cost <br /> of which are reimbursed by the RMLD. The State Department of <br /> Public Utilities has oversight over all aspects of the operation, <br /> and a four-town citizen advisory board has also been established. <br /> Mr. Rucker reviewed the history of earnings distribution from the <br /> RMLD to the Town. The level has been stable since FY86, except <br /> that in FY91, there was an additional payment in lieu of taxes, <br /> pursuant to the twenty-year agreement. The amounts have fluc- <br /> tuated from $600, 000 in 1980 to the current high of $1.25 mil- <br /> lion. <br /> Capital expenses for the Light Department are around $2. 1 million <br /> _ per year plus extraordinary capital costs. Sources of funding <br /> include, the annual gross plant depreciation which yields ap- <br /> proximately $1. 125 million, uncommitted depreciation cash fund <br /> which in FY91 yielded $0. 375 million, but which will be ex- <br /> hausted, and the remainder comes from the eight percent rate of <br /> return. The $1.25 million to the Town of Reading also comes from <br />