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HomeMy WebLinkAbout2009-09-30 Finance Committee Minutes Finance Committee Meeting September 30, 2009 Conference Room, Reading Town Hall The meeting convened at 7:30 PM in the Conference Room of Town Hall. FINCOM Members Present : Committee Chair George Hines, Matthew Wilson, Bryan Walsh, Marsie Members Absent: West, David Greenfield, Tom White, Barry Berman and Kevin Leyne. Harold Torman Also Present: Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur There being a quorum the Chair called the meeting to order at 7:30 pm. Other Business: Bollard Replacement Cost The Town Manager stated that about 8 -10 total bollards have been knocked down and replacements have been paid for by the auto insurance companies of the responsible parties. The Board of Selectmen has recently instructed staff to stop replacing bollards as they are knocked down. Town Counsel is reviewing if the Town is able to continue to collect insurance monies and set it aside for other downtown improvements. Municipal Building Committee A draft policy establishing a Municipal Building Committee (MBC) was provided on page two of FINCOM’s meeting packet. The MBC would be composed of seven members who would determine what significant municipal improvements or projects may be needed within the next ten years and to also identify potential funding sources. Some of the projects the MBC might consider investigating are the library, the possibility of all-day kindergarten for the schools, space for the cemetery division’s equipment or possibly a community center. The MBC would be an ad-hoc committee which would allow for a member of FINCOM to join. This is a draft policy and is on the Selectmen’s agenda for one of the October meetings for discussion and then they may go through the formal adoption process. Local Meals Tax Option th The Town Manager informed the committee that this is on the Selectmen’s agenda for October 20 and is also on the Town Meeting Warrant for November (Article 11). Information and estimates of a 1% meals tax was included in the meeting packet. Mr. LeLacheur explained that the State Department of Revenue’s (DOR) estimates based on a 1% increase in the local meals tax is provided in the packet but pointed out that these estimates may not be accurate because the DOR data includes addresses for meals tax returns but businesses that operate in more than one location, such as chain restaurants, only file a single meals tax return instead of filing one for each location. DOR’s findings are also based on 2007 data and Reading has had several new restaurants open and some have closed since that time. Based on the DOR’s 2007 data, Reading would collect approximately $175,898 but this number may be high because of the large number of chain restaurants in town. Mr. Greenfield believed the local meals tax is an appropriate option at this point in time and would support it if the tax included an end date or a date at which the Town would reconsider whether to 1 continue or discontinue the tax. Mr. White would like to further investigate other options before implementing a meals tax. A couple members did not realize this was on the Town Meeting Warrant and asked if they should be voting on this article. Mr. LeLacheur said FINCOM will be expected to th vote on this Article but it can be at the next meeting, after the Financial Forum on October 14. Ms. West reminded the Committee that this was not a pure tax on everyone but only for people who make the choice to eat out. Mr. Wilson believes the committee should be looking at this as a revenue opportunity. Mr. Walsh asked if the neighboring Town’s have a meal tax and asked for this information before making a decision. Further discussion continued about the local meals tax. Mr. Hechenbleikner and Mr. LeLacheur will look into the neighboring town’s and see if they have a meals tax and will have that information for the next meeting. Mr. Hines also asked for information as to what exactly gets taxed, at what level does the meals tax kick in? The Town Manager said he would also check with Town Counsel to see if the meals tax can have a sunset clause. The discussion and vote will continue to the next meeting after the financial forum. FY11 Budget Process Page 18 of the handout shows proposed November Town Meeting budget amendments for FY2010. There is a decrease in the health insurance costs due to the policy change, an increase in community services wages budget due to the change in Town Planner, and an increase in the Veteran’s Benefits in the community services expenses budget. Town Meeting will also vote a new School Department budget to reflect the change of a federal grant that replaces the state aid. Accommodated costs are shown on page 16. It is very hard to make an accurate estimate for projected Health Insurance because we don’t know these exact numbers until late January. Unemployment benefits for FY2010 and FY2011 have increased to $100,000 and $105,000 which is more accurate than the $55,000 initially projected for FY2010. th Mr. LeLacheur said the Town Accountant plans to have a free-cash estimate for the October 14 Financial Forum. One member asked if it has been considered to reduce the capital budget. The Town Manager explained that it usually takes 4-8 years for things to change during economic downturns and emphasized the importance of keeping the capital levels in check. The capital and operating budgets will be reviewed in detail during the budget process. th The financial forum is scheduled for October 14 at the Senior Center. November Town Meeting Warrant The Town Manager and Assistant Town Manager summarized each Warrant Article. Mr. LeLacheur th recommended voting on each article on October 14 after the Financial Forum. He also noted that the Board of Assessors is also considering updating the Town’s software program and hiring a new assessor who would be experienced in the new software. Ideally, the Board of Assessor’s would like st to hire someone by January 1. Other The Town Manager informed the group that there will be discussion about the Coordinator of Volunteers position that was voted back into the FY10 budget at Annual Town Meeting and discussion about the Town’s practice of plowing church parking lots will be on the Board of Selectmen’s agenda th for next Tuesday October 6. 2 Approval of Minutes On a motion by Mr. Wilson, seconded by Mr. Greenfield, to accept the minutes for the meeting dated June 24, 2009, as written. FINCOM voted 5-0-1 (Mr. Berman abstained). On a motion by Mr. Leyne, seconded by Mr. Greenfiled, to approve the minutes for the meeting dated August 12, 2009, as amended. FINCOM voted 5-0-1 (Mr. Hines abstained). On a motion by Mr. Walsh, seconded by Mr. Berman, to approve the minutes of the meeting dated September 9, 2009, as written. FINCOM voted 6-0-0 to approve. Mr. LeLacheur told FINCOM that they would be discussing the capital budget at their next meeting or during the Financial Forum. Mr. Berman made a motion, seconded by Mr. Wilson, to adjourn the meeting at 9:25 PM. FINCOM 6-0-0 to adjourn. Respectfully submitted, Recording Secretary 3