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HomeMy WebLinkAbout2010-05-19 Finance Committee Minutes Finance Committee Meeting May 19, 2010 Conference Room, Reading Town Hall The meeting convened at 7:30 PM in the Conference Room of Town Hall. FINCOM Members Present : Chair George Hines, Vice Chair David Greenfield, members Barry Berman, Kevin Leyne, Bryan Walsh, Marsie West and Mathew Wilson. Members Absent: Tom White and Harold Torman Also Present: Assistant Town Manager/Finance Director Bob LeLacheur; Board of Assessors Chair Bob Nordstrand, Vice Chair Ralph Colorusso, and Secretary Fred McGrane, Appraiser Bill Boatwright and Assistant Appraiser Pat Sullivan. There being a quorum the Chair called the meeting to order at 7:35 pm. Public Comment: No comments. Board of Assessors: Chair Bob Nordstrand presented the FINCOM a letter requesting a reserve fund transfer of $9,000 in order to use an outside consultant to data-check in preparation for the upcoming triennial revaluation. Bob reviewed the financial status of the Assessing division for FY10 and projected FY11. Vice Chair Ralph Colorusso indicated that the Board had requested a one-year delay of the revaluation from the DOR. New DOR requirements coupled with the Town’s desire to change software systems and newly hired Appraiser seemed in conflict. The DOR denied the extension request, and indicated the software conversion should be delayed. Ralph reviewed the consequences of not setting the tax rate on time next fall, which worse case was no further quarterly tax revenues until the issue was resolved. He noted that the DOR was losing staff, and this may make it more difficult for communities to meet the usual state deadlines. Barry Berman asked about the software, and Bob Nordstrand indicated they now hoped to do the RFP next fall and the conversion to a new system next winter. He added that the state told them early last winter – after Town Meeting funds were secured – that they would discourage a triennial year data conversion. On a motion by Mr. Walsh, seconded by Mr. Greenfield, FINCOM voted to transfer $9,000 from the FINCOM reserve funds to the Assessors (Finance) FY10 expenses by a vote of 7-0-0. Barry Berman asked the Board of Assessors how they plan to educate the public about the recently approved additional tax benefits for senior tax payers. Bob LeLacheur indicated they would use the Town’s Elder/Human Services contacts, and that Assessing staff over the years also had many similar contacts in Town. Next fall – when this change first takes effect - news stories will also be published. Special Election: Bob LeLacheur reviewed the timeline since Town Meeting approved the Local Option Meals Tax through the Board of Selectmen setting Wednesday June 23, 2010 as the date for the Special Election based on a successful voter referendum petition. He requested a FINCOM Reserve Fund transfer of $17,500 for the wage & expense costs of this unanticipated cost. 1 On a motion by Mr. Greenfield, seconded by Mr. Berman, FINCOM voted to transfer $17,500 from the FINCOM reserve funds as follows: $10,000 to the Elections (Finance) FY10 wages and $7,500 to the Elections (Finance) expenses by a vote of 7-0-0. FINCOM had a discussion about their role in the upcoming Special Election. Kevin Leyne indicated his support for a letter to the editor, using materials presented to the Town Meeting. He asked about using the Town’s website. Marsie West noted many Town Meeting members changed their vote since the November Town Meeting because of new budget information as well as the fact many other communities had now adopted the local option tax. George Hines mentioned there were some members from his Precinct that now supported the meals tax instead of a possible Prop 2.5 override. David Greenfield said that overrides generally fail before the need for them is clearly evident – which is to say one or two very difficult budgets are adopted and the residents see the consequences. George Hines noted that a meals tax hardly solves all of the Town’s needs. FINCOM expressed a desire to ndth meet on June 2 or 9 to further discuss advocacy for the Meals Tax. Bob LeLacheur said he would check with Town Counsel to see what if any activities the FINCOM could undertake for a referendum. He pointed out FINCOM members as individuals had no restrictions, but a body of the Town may not be able to play any role. Soliciting private funds: David Greenfield responded to some comments at the recent Town Meeting. He said the Town already aggressively seeks alternative revenues – such as grants – and has gone through a couple of difficult budgets that have pared expenses. FINCOM discussed creating a presentation for Town Meeting that included all sources of funding, not simply the general fund which is typically seen as ‘the budget’. Matt Wilson cautioned against relying on fundraising to sustain essential expenses. Bryan Walsh agreed, indicating that no operating procedures should change, but documentation of what is being done would be helpful. Bob LeLacheur mentioned that this was discussed by staff three years ago when designing the MUNIS infrastructure, and the biggest challenge will be identifying funding that does not pass through the Town, such as PTOs. Oakland Road: FINCOM discussed the Town-owned land on Oakland Road, and reviewed the schedule of the newly formed Municipal Building Committee. They asked the Assessing division to express an opinion of the valuation of the land at a future FINCOM meeting. Matt Wilson left the meeting. Revenue Options : Bob LeLacheur reviewed the Selectmen’s January budget discussions on raising additional revenues through a combination of the community access sticker, license fees, smoke detector fees, underground storage tank fees, a site plan waiver fee, and broader re-inspection fees. In total about $35,000 in annual revenues were considered. RMLD: Bob LeLacheur asked if FINCOM would like to see the RMLD general manager on a regular basis to review their budget, as is described in the Charter. FINCOM agreed that they would. MWRA water issue: Bob LeLacheur reviewed the water leak from a financial standpoint. The Town spent about $49,000 which will be paid for by the water enterprise fund. Any future reimbursements will be directed there. 2 In addition, the Town is exploring a new R-911 communication system that will likely have a broader community-wide use. The cost will be in the $20-25,000 per year area, with $5-10,000 in startup costs. Minutes: On a motion by Ms. West, seconded by Mr. Greenfield, FINCOM voted to approve the minutes of March 17 by a vote of 6-0-0. On a motion by Mr. Greenfield, seconded by Ms. West, FINCOM voted to approve the minutes of March 24 by a vote of 6-0-0. On a motion by Mr. Walsh, seconded by Mr. Leyne, FINCOM voted to approve the minutes of April 26 by a vote of 6-0-0. Bob LeLacheur discussed the FINCOM meeting posting situation, and the tentative new open meeting st laws scheduled to take effect on July 1. On a motion by Mr. Berman, seconded by Ms. West, FINCOM voted to adjourn at 9:35pm by a vote of 6-0-0. 3