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HomeMy WebLinkAbout2006-10-25 Finance Committee Minutes Joint Finance Committee/Board of Selectmen Meeting November 28, 2006 The meeting convened at xxx p.m. in the Conference Room at 16 Lowell St, Reading, Massachusetts. Present were FINCOM Chairman Andrew Grimes, Vice Chairman Charles Robinson, FINCOM members Harold Torman, Paul Bolger, Michele Williams, George Hines and David Greenfield; Board of Selectmen Chairman Ben Tafoya, Vice Chairman James Bonazoli, Selectmen Camille Anthony, Rick Shubert and Steve Goldy; as well as Town Manager Peter Hechenbleikner, Russ Graham, Paul Feely. Assistant Town Manager/Finance Director Bob LeLacheur joined the meeting at 7:45pm. Resident Jay Lenox joined the meeting at 7:50pm. Gail LaPointe started the meeting discussing Article 4. She was asking the Committee to appropriate funds for unpaid bills totaling $160,760 related to the severe flooding that occurred in May 2006. Gail noted that FEMA and our insurance company will reimburse 100% - FEMA will reimburse 75% and our insurance company will reimburse the remainder. David Greenfield requested that we get something in writing from our insurance company indicating that they will pay the remaining amount. A motion by Williams, seconded by Torman to recommend Article 4 was approved by a vote of 8-0-0. Gail LaPointe also discussed Article 9. She noted that in January 2003, the Town signed a contract with DEP establishing a “Closure Account” to fund necessary activities to achieve closure of the Landfill should the developer fail to complete by DEP requirements. March 2006 we received notification from DEP they issued a Closure Certificate for the Landfill. According to the agreement the Town is allowed to transfer the remaining funds in the Closure Account to the Sale of Real Estate account. The amount with interest is $2,415,420. A motion by Hines, seconded by Greenfield to recommend Article 9 was approved by a vote of 8-0-0. Cash Reserves Bob LeLacheur reviewed the current status of the cash reserves and reviewed the proposed policy on cash reserves. A motion by Robinson, seconded by Torman that the Finance Committee establish a policy on cash reserves be a minimum of 5% of net revenue was discussed. A motion by Grimes seconded by Greenfield to amend the last sentence in the first paragraph to: “FINCOM recognizes that circumstances may occur which would increase the need to raise or lower this minimum from time to time,” was approved by a vote of 8-0-0. A motion by Hines seconded by Powell to require two votes – a preliminary vote and a final vote was approved by a vote of 8-0-0. The main motion as amended was approved by a vote of 8-0-0. Article 5 Bob LeLacheur reviewed Article 5. He noted that the first four items pertain to moving the Town Clerk to the Finance Department. The shade trees used to be in capital, but we are now transferring it to the operating budget. George Hines noted that the adjustments in November should be unforeseen; otherwise it should be done in the annual budget. A motion by Robinson seconded Grimes to recommend the subject matter of Article 5 was discussed. A motion by Hines seconded by Williams to amend the motion to reduce Line F12 by $3750 failed by a vote of 3-5-0 with Grimes, Robinson Torman, Greenfield and Bolger opposed. The main motion was approved by a vote of 6-2-0 with Powell and Williams opposed. Article #3 Bob LeLacheur noted that he recommends a 5% minimum policy on capital. He noted that the Board of Selectmen decided on $305,500. It was noted that 5% is just a maintenance plan, it does not provide for any new items i.e. two new miles of sidewalks or new play fields. A motion by Torman seconded Hines to accept Article 3 as written was approved by a vote of 8-0-0. Article #11- Playground at Wood End School Tina Brezenski was guest speaker and was asking for $42,600 for rubberizing 2/3 of the playground. An actual quote will be received by next week. Donations of $84,000 have been received so far and with a grant and fund raising they are hoping for less monies to be asked by the town. Chuck Robinson asked how the Town and Schools have been involved. Ms. Brezenski noted that Richard Davidson has been very involved, but the Schools feel its Town land. Recreation Administrator John Feudo has been involved. The Town fixed and helped prepare the area. A motion by Powell, seconded by Williams to recommend the subject matter of Article 11 in the amount o f$42,600 was approved by a vote of 8-0-0. Harold Torman requested that if the $42,600 is not needed it goes back to the Town. Bob LeLacheur noted he will add that to the background material. Article #5 Bob LeLacheur reviewed the proposed amendments to the FY2007 Capital Improvement Plan. There was much discussion regarding money budgeted for handguns. Bob LeLacheur was noting this money is for replacing the handguns, since the springs were failing. Harold Torman was questioning what the monies in the past budgets were designated for on the handguns. Police Chief Jim Cormier arrived at10:10 p.m. He noted that all of the guns were purchased at the same time and are used to the same degree. Some need overhauls or replacement. The annual budget is for all types of equipment, not just revolvers. They need 45 – 50 revolvers plus a few spares. The leather holsters also need replacing. New leather gear lasts about 10 years. George Hines asked the Chief if he will start on a replacement program and Chief Cormier noted that he wants to get the useful life out of the equipment. When all of the guns are purchased at the same time, they will all be in the same condition. Bob LeLacheur noted that the Finance Committee needed to approve the water portion of Article 5. He noted that all of the changes are due to the closing of the Water Treatment Plant. A motion by Greenfield seconded by Torman to accept Article 5 was approved by a vote of 7-1-0 with Hines opposed. Approval of Minutes A motion by Powell seconded by Williams to approve the minutes of September 20, 2006 was approved by a vote of 7-0-1 with Greenfield abstaining. A motion by Torman seconded by Williams to adjourn the meeting at 10:35 p.m. was approved by a vote of 8-0-0. Respectfully submitted, Secretary