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HomeMy WebLinkAbout2009-06-24 Finance Committee Minutes Finance Committee Meeting June 24, 2009 Conference Room, Reading Town Hall The meeting convened at 7:35 PM in the Conference Room, 16 Lowell Street, Reading, MA. Members Present : Chair George Hines, Vice Chair David Greenfield, Andrew Grimes, Matthew Wilson, Bryan Walsh and Marsie West. Also Present: Town Manager Peter Hechenbleikner and Assistant Town Manager/Finance Director Bob LeLacheur, Kevin Leyne. Members absent : Thomas White, Hal Torman, Barry Berman There being a quorum the Chair called the meeting to order at 7:35 PM. 1.Reserve Fund Transfers: Mr. Hechenbleikner recommended a reserve fund transfer request for $2,816 for handicap improvements to the crosswalk on Birch Meadow Drive. Page 6 of the provided handout shows the cost estimates for the concrete handicap ramp, granite curb, cost of removing the curb corner, loam and seed and cost of a police detail. The Architectural Access Board (AAB) will be notified immediately if FinCom approves the transfer and construction will begin as soon as possible. Mr. Hechenbleikner recommended a second reserve fund transfer to install a guard rail on Summer Avenue. Two recent accidents have occurred at this location in front of and near number 66 Summer Avenue at the bottom of the hill. The estimated cost for the guard rail is $3,800 and would be installed on the tree lawn. Mr. Hines asked if abutters agree or are aware of the proposed guard rail. Mr. Hechenbleikner said the abutters are aware and are in agreement. Mr. Hines asked if the Town does the installation for the guard rail and crosswalk improvements. Mr. Hechenbleikner responded that these projects would be contracted out because of liability issues. Mr. Greenfield asked when the work would begin. Mr. Hechenbleikner said work could begin as early as stst next week by July 1. Ms. West asked if FINCOM had to wait until July 1 to make the transfer. Mr. Greenfield said since we have the money in reserves now the Committee should make the transfer st before July 1 instead of creating a shortage at the beginning of the year. Mr. Hechenbleikner explained that the Birch Meadow Drive crosswalk is subject to AAB requirements because it is fairly new while the old ones in Town are not held to the same standards. He also explained that this improvement is a result of a resident complaint directly to the state AAB. Mr. Grimes moved to accept the transfers as proposed for a crosswalk and guard rail at a cost of $3,800 for the guard rail and $2,816 for the crosswalk improvements, seconded by Mr. Walsh was approved by a vote of 6-0-0. 1 2.Other Business: FY10 State Budget Update: Mr. LeLacheur directed the Committee to pages 13 and 14 in the handout. The chart on page 13 shows what the Town pays back to the state, the MBTA expense being the most substantial item. The FY10 revenue figures shown on page 14 include slightly more money than the Town had assumed; however nearly $1 million is one-time (or at least short-term) federal funding. The column on the right shows the Joint House and Senate budgets Mr. Hechenbleikner noted that the health insurance reduction helped but there should be a financial forum held early in the fall. Mr. LeLacheur noted that the federal money will probably have specific rules to follow, which may vary from the typical budget process in Reading. Ms. West asked for clarification on the extra money that the Town has in the budget since what was passed at Town Meeting. Mr. LeLacheur replied that yes, the Town may have about $144,698 more than what was approved by Town Meeting and was approved by the legislature. The Governor now has approximately ten days to vote on the budget. Mission Statement/Guiding Principals: The mission statement drafted by Ms. West is on page 15 and 16 in the packets. Mr. LeLacheur recommended the Committee vote on the mission statement and principals for new members. Mr. Hines asked if the Selectmen were working on any other policies. Mr. Hechenbleikner said the Code of Conduct was recently approved. Mr. Hines said he reviewed the code of conduct and emphasized that minority opinions should be shared and are welcomed especially when reviewing the budget. Attendance: Mr. Hines briefly reviewed the attendance list with committee members and encouraged members to attend regularly. Mr. Hechenbleikner also noted that there is a policy in the Town Charter that allows members to remove a member who has not attended for three consecutive meetings. Reorganization of FinCom: Mr. LeLacheur announced the call for nomination for the committee Chair position. Ms. West nominated Mr. Hines for Chair of the Finance Committee, nomination seconded by Mr. Grimes. Mr. LeLacheur moved to close the nomination, seconded by Ms. West. Vote 6-0-0 to approve Mr. Hines as Chairman. Mr. Wilson moved to nominate Mr. Greenfield as the Vice Chair, seconded by Ms. West. Ms. West moved to close the nomination, seconded by Mr. Wilson. Vote 6-0-0 to approve Mr. Greenfield as the Vice Chairman. Liaison Assignments: Ms. West noted that she is interested in serving as the Library liaison. Mr. Hines asked members to review the assigned liaison committees and to email him any interests and will be placed on the next meeting agenda for discussion. Mr. Hechenbleikner pointed out that the Audit Committee is a formal body and members must be voted on because FINCOM members are official members of the Audit Committee. Mr. Grimes nominated Mr. Greenfield and Mr. Hines to serve on the Audit Committee, motion seconded my Mr. Walsh to approve by a vote of 6-0-0. Mary DeLai (Director of Finance and Human Resources of Schools) joined the meeting at 8:00 PM. 2 FY10 Meeting Schedule: FinCom meetings are generally held on the second Wednesday of each month. Members discussed th meeting availability for July 8 after the holiday weekend. Mr. Hines said he would email members thth asking July 8 availability. Mr. LeLacheur noted that July 8 would be ideal if a reserve fund transfer th is needed because they are due before 5:00 pm on July 15. Chuck Robinson (School Committee) joined the meeting at 8:15 PM. Performance Contracting Update: Ms. DeLai explained that once the audit is finalized, the school committee reviews and requests changes if needed then they officially accept the audit. The schools received the audit on April 22, 2009 and discussions followed. During the discussions some issues brought up were the mechanical work and equipment and they had asked for more work on those specific items which increased the cost. Additional energy management savings were incorporated into the scope which also added to the final cost. The project financing is shown on page 21 of the handout. Mr. LeLacheur explained that the Town will borrow money at the middle to end of July to fund the expected cashflows of Performance Contracting. Ms. West asked who would decide to borrow the money for debt service. Mr. LeLacheur said that $5 million that was approved by Town Meeting would be required to fund the final scope of the project. If there is additional work needed, the School Committee would be involved to determine a source of funding; if there is any savings (such as grant funds) along the way, the School Committee would decide between additional work (such as windows) or to offset debt service. Mr. Greenfield asked if work or construction has started yet. Ms. DeLai said th that there is a kick-off meeting tomorrow night (Thursday June 25) and the notice to proceed will be thst issued with work beginning sometime between July 15 and August 1. Mr. Hines asked if building maintenance was included in the Town or the School Budget. Ms. DeLai reported that it comes from the School budget. Other Items not on the Agenda: Mr. Wilson asked about the School budget process and emphasized the importance of being transparent so people are aware of the upcoming cuts. He acknowledged that the School Committee may not be aware of exactly which positions would be eliminated but suggested having a list of the likely positions. Mr. Robinson explained that budget discussions about the School budget began in September and that they usually don’t know in advance exactly which positions are going to be cut. Mr. Greenfield pointed out that this is really a PTA and School Committee issue not one for the FINCOM. Ms. DeLai informed FINCOM that they look at all the student enrollment numbers, class sizes, positions eliminated through attrition and many other factors throughout the budget process. Mr. Hechenbleikner pointed out that the School committee has a budget that deals with the whole school district not for each school individually. Mr. Robinson also let the Committee know that they have guidelines for class size to keep them relatively small when compared to other communities. Ms. DeLai reiterated that cuts start as far away from the class room as possible to maintain a manageable classroom size and specific positions aren’t subject to elimination until after Annual Town Meeting. 3 Minutes: A motion by Ms. West seconded by Mr. Walsh to approve the Minutes of March 18, 2009 as written was approved by a vote of 6-0-0. th A motion by Mr. Greenfield seconded by Mr. Wilson to approve the Minutes of March 25, 2009 was approved by a 6-0-0 vote. th A motion by Mr. Grimes seconded by Ms. West to approve the minutes for April 15 2009 was approved by a vote of 6-0-0. th A motion by Mr. Grimes seconded by Mr. Greenfield to approve the Minutes of May 13, 2009 was approved as amended by a vote of 6-0-0. Mr. Hines recognized and thanked Mr. Grimes for his nine years of service on the FINCOM and thanked him for serving on the Committee. A motion by Mr. Grimes seconded by Ms. West to adjourn the meeting of June 24, 2009 at 8:50 PM was approved by a vote of 6-0-0. Respectfully, Secretary 4