HomeMy WebLinkAbout2013-05-22 Finance Committee MinutesFinance Committee Meeting
May 22, 2013
The meeting convened at 7:30 p.m. in the Conference Room, 16 Lowell Street, Reading,
Massachusetts. Present were Chairman David Greenfield, Vice Chairman Barry
Berman, FinCom members Jeanne Borawski, Jeffrey Perkins, Karen Herrick,
Mark Dockser, Paula Perry and Paul McNeice, Assistant Town Manager/Finance
Director Bob LeLacheur, and HR Director Carol Roberts. Absent was FINCOM member
Hal Torman.
Peer Communities
Ms. Borowski mentioned the financial data available on all MA communities that is
found on the DOR's website. Mr. LeLacheur reviewed the Town's recent efforts to
Participate in national and local statistical comparisons, stating that while it is helpful to
gather and compare broad data nationally, for pure relevance the local data is better. Ms.
Perry noted the previous discussion on snow and ice budgeting and spending
comparisons.
Mr. Greenfield assigned the Committee homework in the form of asking what types of
comparisons they would like to measure Reading versus other MA communities.
HR Director Carol Roberts reviewed material done by Stone Consulting in December
2008 whereby 21 MA communities were identified by various statistical comparisons as
comparable to Reading. They included Andover, Bedford, Belmont, Burlington, Canton,
Danvers, Dedham, Lynnfield, Mansfield, Marshfield, Milton, Natick, North Andover,
North Reading, Shrewsbury, Stoneham, Tewksbury, Walpole, Westborough, Westford,
and Wilmington.
Mr. Dockser said he would like to compare School, DPW and Public Safety data with
other communities. Mr. Berman added technology to see if we are spending sufficient
amounts. Mr. Perkins said we should address the outliers in whatever data we find. Mr.
Greenfield said we should we should start with the `big' categories. Mr. LeLacheur said
that the DOR and MMA are places where data might be found.
FINCOM Policies
Mr. LeLacheur reviewed FINCOM's two standing formal policies: Cash Reserves and
Debt & Capital. Mr. Greenfield said that an OPEB policy would serve two purposes: (1)
set aside a reserve for premium increases above those budgeted; and (2) a discipline to
follow to begin funding the liability.
Ms. Perry asked if the FINCOM policies had discipline, and Mr. Berman cited adherence
to the 5% debt & capital policy during recent difficult budget years. Mr. Greenfield said
he understood the challenges posed by looming Federal government reductions and the
expected impact on local goverments. He asked if town staff could gather comparative
data on OPEB obligations, health care trends and other FINCOM policies. Mr.
Finance Committee Minutes — May 22, 2013 — page 2
LeLacheur stated that would not be ready for the fiscal year end meeting in June but
would be ready for the following meeting.
Library Building Committee (LBC)
Ms. Herrick updated the Committee on the status of the Library building project. She
mentioned the various Open Meeting questions that had arisen during the Owner's
Project Manager search process, and that staff would post all such meetings in case
members of the LBC. Mr. LeLacheur said that an OPM contract would be signed in June
and the searches for an Architect and for Temporary Space would begin thereafter. It was
estimated that the Library would move during the winter 2013 -2014.
Approval of Minutes
A motion by Mr. Greenfield seconded by Mr. Dockser to approve the minutes of
March 27, 2013 as amended was approved by a vote of 5 -0 -0.
A motion by Mr. Greenfield seconded by Mr. Berman to adioum the meeting at
9:25D. was approved by a vote of 5 -0 -0.
Respectfully submitted,
Secretary 0 ) L y