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HomeMy WebLinkAbout2013-02-13 Finance Committee Minutes' Joint Meeting of the Finance Committee, Board of Selectmen, and School Committee February 13, 2013 The meeting convened at the Pleasant Street Center, 49 Pleasant Street, Reading, Massachusetts. The Finance Committee called to order at 7:07 p.m. Present were Selectmen Ben Tafoya, Richard Schubert, John Arena, James Bonazoli; Finance Committee members David Greenfield, Barry Berman, Jeanne Borowski, Hal Torman, Paula Perry, Karen Herrick, Jeffrey Perkins, and Paul McNeice; School Committee members Karen Janowski, Rob Spadsfom, Chuck Robinson, and Harold Croft; Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Superintendent of Schools John Doherty, Assistant Superintendent of Schools Mary Delai, Town Accountant Sharon Angstrom, Town Planner Jean Delios, Public Works Director Jeff Zager, Fire Chief Greg Bums, Public Works Business Administrator Jane Kinsella, Office Manager Paula Schena, Town Meeting member Stephen Crook. Financial Update FY13 Budgets — Bob LeLacheur noted that the weekend storm cost $240,000 and that leaves a balance of $50K - $70K. Mr. LeLacheur reviewed the projected changes to the FY13 budget at the Annual Town Meeting and he noted that the use of free cash is close to zero. ' FY14 Budget Process and Updates — Bob LeLacheur noted that the result of the October Financial Forum resulted in FY14 budgets of 2.5% and using $1 million in free cash. Cuts to some accommodated costs in December resulted in a 3% budget using $1 million in free cash. In January there was a decrease in the health insurance premium and that allows a 3.75% operating budget. Cash Reserves — Bob LeLacheur noted that free cash is $7 million plus or 9% of net income. One time events that saved us money put us in good shape but we can't count on that every year. Discussion about FY14 Budgets The Town has developed a list of over $300K of desired additions. The Superintendent's school budget was $556,797 over the 3% guideline and the School Committee's school budget was $756,797 over the 3% guideline. The facilities budget is $45,018 below the 3.75 %. Bob LeLacheur reviewed the potential budget changes ranked by staff and Selectmen. The Town Manager noted that the zoning bylaws really need to be done and $75,000 is a one time cost. It has not been ranked but it should be a priority. - John Arena asked what we will be at two to three years from now if we do 3.75% and Bob LeLacheur indicated probably 2.50 %. ' The Town Manager noted that all labor contracts expire in 2014. If state aid comes in higher than predicted then we will reduce the use of free cash. Board of Selectmen, School Committee and Finance Committee — February 13 2013 — .paage 3 David Greenfield asked why Police and Fire overtime isn't being funded and Bob LeLacheur is ' noted there already an increase built into the base budget. Barry Berman noted that an additional Crossing Guard got high rankings but didn't get funded. The Town Manager noted it is not needed because there is one within 250 feet. Karen Herrick asked what benefit we would see by updating the zoning bylaws and the Town Manager noted it will be easier for residents, developers, and staff. Jean Delios noted that people are requesting a redo of the off premise sign section of the bylaws. Karen Janowski called the School Committee to order at 7:40 p.m. Ben Tafoya called the Board of Selectmen to order at 7:40 p.m. David Greenfield asked what the drivers are in the school budget increase. John Doherty noted that $310,000 is curriculum material which is a one time cost and others are increase in number of positions due to enrollment. John Arena asked if the FTE's are a recurring cost that will persist and Mr. Doherty indicated that is correct. David Greenfield noted that he is not concerned about free cash this year but feels we will be setting ourselves up for trouble in future years. Barry Berman noted that free cash has never been healthier and is okay with using it as long as we don't go crazy. ' Hal Torman indicated he is concerned with an increase in headcounts. He asked if enrollment dropped will the headcount drop and John Doherty noted it was hard to say, but enrollment numbers are strong. Karen Herrick noted that she's comfortable spending now because it's like an investment in our future. The Town Manager noted that $1 million in free cash works out to be $118,000 for the Town and $756,797 for the Schools. Richard Schubert asked how many 8" graders are moving to the 9" grade and John Doherty indicated he did not know but it usually is 5 %. Chuck Robinson noted that 5% equals 60 students. John Doherty noted that over the past years we have had 100 additional students and no increase in staff. John Arena asked about the $400,000 for full day kindergarten and the Town Manager noted that the School Department is using a portion of that to explore other options. John Doherty noted that he anticipates that the most they will use of the $400,000 is $150,000. Board of Selectmen School Committee and Finance Committee — February 13, 2013 — nape 3 ' David Greenfield indicated that next year he wants to discuss how to balance out the 1/3 and 2/3 split between the Town and School because when you keep adding to one the amount gets out of whack. Draft Library Building Committee Policy — The Town Manager noted this is scheduled for a hearing on February 26, 2013. The Library made changes at 6:45 p.m. today so there might be changes to it. The proposal is to have one Finance Committee member on the Committee along with two Library Trustees, two Library staff, one Historic Commission member, two Town Meeting members and two residents with professional construction expertise. A motion by Berman seconded by McNeice that the Finance Committee go into Executive Session to consider the purchase exchange lease or value of real property and that the ' Chair declares that an open meeting may have a detrimental effect on the negotiating osition of the bod and not to reconvene in Open Session was approved on a roll call vote with all eight members voting in the affirmative.