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HomeMy WebLinkAbout2011-03-02 Finance Committee Minutes OF RFgO'l Finance Committee Meeting March 2, 2011 Fp w0 ,sco Conference Room, Reading Municipal Light Department The meeting convened at 7:00 PM in the Conference Room at RMLD. FINCOM Members Present: Chair Marsie West, Vice Chair David Greenfield, Hal Torman, Bryan Walsh, Barry Berman, Kevin Leyne and Paula Perry. Members Absent: Francis Fardy and Mark Dockser. Also Present: Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Town Accountant Gail LaPointe, Fire Chief Greg Burns, Police Chief Jim Cormier, Police Business Manager Andrew Scribner, Community Services Director/Town Planner Jean Delios, DPW Director Jeff Zager, Town Meeting members Kara Fratto, John Arena and Karl Weld, and recording secretary Abby McCabe. There being a quorum the Chair called the FINCOM meeting to order at 7:05 PM. The Finance Director/Assistant Town Manager gave a brief overview of the FY12 budget summary and the Town Accountant presented a revenue update. Revenues are similar to last year in that they have stayed relatively flat with a slight increase due to the local meals tax. The Town Manager explained that the proposed budget includes using $1.5 million dollars in cash reserve funds. This budget also assumes a 10% reduction in state aid ($1.2 million dollars). Legislative actions that contribute to the overall economic recovery of Reading are also presented in conjunction with the budget. A focus on customer service, partnerships, sustainability, equity, and common practices were some of the guiding principles that led to the final budget before FINCOM. A grant was recently submitted for Reading to share health services with neighboring communities but Reading did not meet the grant program's eligibility requirements. Tax assessments, elder services, public health and conservation are areas under consideration to be shared with other towns. Some of the proposed legislative actions include rescinding the local wetlands by-law, reducing the time requirements stated in the demolition delay general by-law, a by-law requiring property owners to clear snow and ice from the sidewalks, adopt expedited permit procedures in the industrial area of Ash Street and zoning changes to the site plan review requirements. Several proposed administrative actions were also reviewed such as a "carry in— carry out" policy for rubbish at the parks and schools and the new CAMA system to be implemented in the Assessor's office. The Town Accountant reviewed the major revenue sources in FYI and the projections for the next two fiscal years. Estimates for new growth do not include projects such as the former Atlantic Super Market or Addison Wesley sites because they are still in the planning stages. Revenue generated from the motor vehicle excise tax is slightly higher than expected and the local meals tax has contributed to an increase in local revenue where it has been flat for the last few years. A 10% decrease in state aid is projected in the revenue estimates for intergovernmental revenue. Total transfers and available funds are also down in FY12 due to appropriations at Subsequent Town Meeting in November. Ms. LaPointe reviewed the cash reserves; this budget uses $1.5 million dollars in reserves and used $1.25 million thus far in FYI 1. The Town Manager answered questions relative to the three payments from the RMLD and the Reading Ice Arena. Mr. LeLacheur summarized the total spending from the general fund for each department shown in a chart on page 13 of the meeting packet. The school department is the largest part of the budget at 48%. Benefits 1 account for 10% (approximately $13 million dollars) of the budget which is lower when compared with some of the neighboring communities. The Finance Committee will be meeting every Wednesday in March beginning at 7:00 PM in the conference room at RMLD. A Monday meeting will be held on March 28th to allow time for the FINCOM to vote on the budget and the March 3oth meeting will focus on the Town Meeting Warrant Articles. Annual Town Meeting will likely be at least three nights. Mr. LeLacheur reviewed the alternative budgets initially discussed before arriving at the final version and highlighted the major changes. The history of FTE (Full Time Employees) was also reviewed. A Committee member asked about performance based step increases opposed to the step increases included in the proposed budget for all employees. The Town Manager explained that no increases were provided to employees last year and that this option was not recommended because it is not sustainable over time. Another Committee member asked if the salaries could be shown over the last few years. Town Administration Mr. LeLacheur reviewed the Town Administration budget in detail. The Administrative Secretary position is eliminated with this budget and the work load will be shared with the Community Services Administrative Assistant. Postage and legal expenses are reduced in this budget but legal expenses are often difficult to predict. Accounting Department The Accounting department includes 1 full time Town Accountant, a 30 hour per week Accounts Payable clerk, 20 hour per week Administrative Clerk and a 3.75 hour per week Assistant Accountant (the Retirement Board Administrator) for a total of 2.45 employees. Overtime and postage are the major reductions in this department made possible by using electronic invoices. Finance Department (Assessors, Finance, Human Resources, Technology, Town Clerk, Elections) The total Finance Department budget is reduced by a total of 6.3% for FY12 largely due to technology improvements and staff rearrangements. The Seasonal Appraiser position is eliminated, a reduction of 5.5 hours per week for a part time clerical position and the elimination of the Database Administrator. A lower level technician position is also budgeted to handle the workload. Professional development funds have been significantly reduced across all departments but this expectation is not sustainable long term. Police Department Overtime is increased in the police department budget because the department is not fully staffed currently due to injury or officers serving in the military. There was a brief discussion about the consequences of reducing personnel versus the cost of overtime. The Police Chief stated that crime has increased for all types of crime particularly felonies in response to a question about the crime statistics in Reading. Fire & Emergency Management Department Salaries have been increased because of existing contractual agreements. Ambulance billing services was discussed and $25,000 is included in the budget. Presently, ambulance billing is done in-house but the department is considering outside companies to perform this function. The Fire Chief is interviewing private ambulance companies that may be able to get bills out faster and keep the cash flow coming in. This is still under review at this time. 2 Public Comment: The Town Manager further explained the proposed by-law requiring property owners to clear the sidewalks of snow and ice in response to a question from the audience. The Town typically plows 43 miles of sidewalk in areas that are well used such as surrounding the schools and parks. A member from the audience suggested adding more discussions and text about projections for FY13 in the budget summary for Town Meeting members. When asked about benefits, Mr. LeLacheur explained that the Town contributed 71%to health insurance, which is a slightly contribution low for municipal governments. Employees and retirees contribute the remaining 29%. On a motion by Mr. Berman, seconded by Mr. Greenfield, FINCOM voted 8-0-0 to adiourn at 9:18 PM. Respectfully submitted, Recording Secretary 3