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HomeMy WebLinkAbout2010-12-08 Finance Committee Minutes OF RFgO'l Finance Committee Meeting December 8, 2010 Conference Room, Reading Town Hall 163'9'tNCOR40¢P The meeting convened at 7:30 PM in the Conference Room at Town Hall. FINCOM Members Present: Chair Marsie West, Vice Chair David Greenfield, Mark Dockser, Bryan Walsh, Barry Berman, Kevin Leyne, Francis Fardy and Paula Perry. Members Absent: Hal Torman Also Present: Assistant Town Manager/Finance Director Bob LeLacheur, and recording secretary Abby McCabe. Town Manager Peter Hechenbleikner joined the meeting at 8:45 PM. There being a quorum the FINCOM Chair called the meeting to order at 7:35 pm. Budget Process: The Committee discussed ideas on how to present the budget to Town Meeting members and the community. It was recommended that a summary of the budget and a simplistic approach would be most valuable. It was also suggested to look at more than a position's funding source when reviewing cuts such as the function of the position and its importance to the Town. Mr. LeLacheur pointed out that all positions funded by the general fund are listed at the back of the annual town warrant. The Board of Selectmen will be having at least two meetings to discuss the budget in early January. Mr. Greenfield asked if there were any updates from the state. Mr. LeLacheur responded that the state appears to have less of a deficit than what was originally projected but there is still a significant shortfall. There will likely be a reduction in state aid but the amount is unknown until the Governor's budget is announced in early January. The health insurance costs are another major variable that will not be known until February. The Town is expecting to have a -1.75% change in the operating budget assuming a—10% change in state aid. The Town Manager provides his recommended budget to FINCOM in mid February after the health insurance rates and the Governor's budget have been confirmed. One member suggested collecting an email list of all Town Meeting members to distribute information before Annual Town Meeting. It was also suggested to include the meeting topics on the budget meeting calendar in advance. Mr. LeLacheur explained that department heads and boards give their recommendations for the budget but it is ultimately the Town Manager's recommended budget that will be before FINCOM and Town Meeting. Review of the Expenses Financial Forum: A chart has been created listing all of the suggestions brought up at the financial forum in October that focused on expenses and costs savings. Page 3 through 5 of the meeting handout shows the number of votes each suggestion received during the forum. A FINCOM member asked how likely it is that regionalization of certain positions and departments is possible. Mr. LeLacheur explained that many regionalization options are currently being discussed and considered but it is not likely that they'll be implemented at this point. Regionalization works best when there is a weakness in a service or particular area so that can be shared with another community. A recent dispatch study with surrounding towns found that there would be no cost savings for Reading. The veteran's services department is currently shared with Wilmington. 1 Review updated version of the Revenue info with Town Departments: The Committee reviewed a few examples for following up on the revenue financial forum suggestions to expand cell tower leases, the sale of surplus town own land, and billing for at fault accidents. FINCOM discussed ways to follow-up from the financial forum by adding information to the website that includes research for each suggested revenue source, an explanation for why or why it is not being considered and the next steps to be taken. Mr. LeLacheur will be in contact with the appropriate departments needed to look into the revenue and cost savings recommendations. FINCOM recommended that the next step, the responsible party and the final recommendation be clearly stated. Discussion continued on the format of how the information should be displayed on the website. Any further comments should be directed to Mr. LeLacheur. FINCOM discussed including the suggestions and the updates as an item to be reviewed regularly at the Committee meetings. Ratings Amu view of cash position: In response to a recent Boston Globe article about the accuracy of the figures in a study by Moody's Investors Service, Mr. LeLacheur contacted Moody's for clarification on the figures. Moody's responded that they did not know where the Globe got the data and provided further information on how Moody's determines the ratings. Debt Issue: A chart detailing debt levels was also recently published based on 2008 data from the Department of Revenue. The chart shows Reading with a very high debt level when compared to surrounding communities. However, comparing communities over a year or a short period of time is not reliable because it can be misleading by including one time payments. For Reading, there was a one time payoff to the MSBA in 2008 which altered the results seen in this chart. Licenses & Permit Assessment: Mr. LeLacheur summarized the findings of the consultant hired to perform an inventory and needs assessment for Reading's permitting and licensing. The consultant was responsible for performing the inventory while the Town will make a recommendation for the permitting software that to be selected. The permitting software vendor has not yet been determined. The new software would also need to be implemented over time and most likely phased throughout different departments. January Financial Forum Planning: FINCOM would like to have the Capital Plan on the agenda at the financial forum in January. The Committee will also provide and update and follow up to the last two financial forums with the updated summary spreadsheets for the potential revenue and expense ideas will be on the website. The next regularly scheduled FINCOM meeting is set tentatively for January 12th but will be cancelled if the meeting is not needed. The next financial forum is schedule for January 261h Approval of Minutes: On a motion by Mr. Greenfield, seconded by Mr. Berman, FINCOM voted 7-0-1 (Ms. Perry abstaining to approve the minutes for October 27 2010 as written. Mr. Fardy summarized the liaison meeting he recently attended with the Board of Library Trustees about the new library building project. The next library meeting will be on January 41h On a motion by Mr. Walsh, seconded by Mr. Dockser, FINCOM voted 8-0-0 to adjourn at 9:20 PM. Respectfully submitted, Recording Secretary 2