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HomeMy WebLinkAbout2013-03-13 Finance Committee MinutesFinance Committee Meeting March 13, 2013 The meeting convened at 7:31 p.m. in the Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman David Greenfield, Vice Chairman Barry Berman, FinCom members Mark Dockser, Jeanne Borawski, Karen Herrick, Jeffrey Perkins, Hal Torman, Paul McNeice, Assistant Town Manager/Finance Director Bob LeLacheur, Town Manager Peter Hechenbleikner (arrived at 8:30) and Office Manager Paula Schena. Review Annual Town Meeting Warrant Article 4 — Mr. LeLacheur noted that this Article is to amend the Capital Improvement Program. There was one item included in the plan that is in the big budget but wasn't listed and that is $80,000 for bathrooms in FY15. The $50,000 for radios will pass through the insurance claim; $250,000 is the remainder of what is left of the $400,000 for space needs; we are taking $45,000 out of roads and putting it in sidewalks; we are moving the water main in as a higher priority in FY14 at $550,000. We are also removing the loops because that is part of the water main project. Article 5 — Mr. LeLacheur noted that this Article will transfer money into the Sick Leave Stabilization Fund. Mr. LeLacheur noted that it is impossible to project retirements and this would prevent the budgets from going up and down. Sick leave has been phased out and he suggests $100,000 per year for 3 years or at least $60,000 which is what we need this year. We don't have to have a stabilization fund if we don't want and the authorization will come from Town Meeting either way. Mr. Berman asked if there is a downside to the stabilization fund and Mr. LeLacheur noted if the money is not needed it just sits there because it can only be used on sick leave buyback. We don't have to put the whole $100,000 we can just put in what is needed now. Article 6 — Mr. LeLacheur reviewed the budget amendments in Article 6. He noted that money will be moved to a line item for OPEB and then into the trust in a later Article. We need to fully fund two special elections; put money into the sick leave buy back; fund some small DPW items; add $150,000 to snow and ice (the Town Manager wrote a letter regarding funding snow and ice and is attached to these minutes); we also need to fund Finance Committee Minutes — March 13, 2013 — paee 2 Police Academy tuitions which will be reimbursed by the employees afterwards. The bottom line is we will be using $228,000 out of free cash. A motion by Torman seconded by Berman to recommend the subject matter of Article 6 of the 2013 Annual Town Meetine Warrant was approved by a vote of 9 -0- 0. Article 8 — Mr. LeLacheur reviewed the summary of the FY14 — FY23 Capital Improvement Plan. A motion by Perkins seconded by Berman to recommend the subiect matter of Article 8 of the 2013 Annual Town Meeting Warrant was approved by a vote of 9 -0- 0. Article 9 — The Town Manager reviewed the Revolving Funds. He noted that the Conservation consulting fund has $25,000 and that is for consultant to the Conservation Commission, not the applicant. The Inspections revolving fund is for when projects are spread out over years and he will keep Oaktree in because we have not finished with the appraisal yet. The Town Manager noted that the Library replaces lost books with their fund; the Matters fund is in the black; the Town Forest harvesting has not begun yet but is scheduled for 2014 so we will keep that in place. A motion by Greenfield seconded by Herrick to recommend the subtect matter of Article 9 of the 2013 Annual Town Meeting Warrant was approved by a vote of 9 -0- 0. Article 10 — Mr. LeLacheur noted that Article 10 authorizes the disposal of surplus items. A motion by Berman seconded by Perry to recommend the subject matter of Article 10 of the 2013 Annual Town Meeting Warrant as written was approved by a vote of 9 -0 -0. Article 12 — Mr. LeLacheur noted this puts $800,000 in the irrevocable trust for Other Post Employment Benefits which is half of one year's liability. Mr. Berman asked if this trust is governed the same as pensions and Mr. LeLacheur noted it is a little different and he will talk about this more in the summer. A motion by Dockser seconded by Jeanne Borowski to recommend the subtect matter of Article 12 of the 2013 Annual Town Meeting Warrant was approved by a vote of 9 -0 -0. Article 14 — Mr. LeLacheur noted that Article 14 appropriates Chapter 90 funds. The only problem is we won't know what the sum is until right before Town Meeting so the Finance Committee can vote to accept whatever is offered. Finance Committee Minutes — March 13, 2013 — page 3 Article 15 — Mr. LeLacheur noted that Article 15 allows us to take 1/1 money from the MWRA for sewer repairs. A motion by Greenfield seconded by Perry to recommend the subject matter of Article 15 of the 2013 Annual Town Meeting Warrant was approved by a vote of 9- 0-0. Article 16 — The Town Manager noted this Article authorizes debt for water main work. Some work needs to be done before paving. He hopes to get a local match from downtown for Phase 2. Mr. Berman noted that there was not a lot of enthusiastic support for the downtown project and asked why we should do it. The Town Manager indicated we still have to do the water main work and this would give us credit towards 40b. Mr. Greenfield suggested that the Finance Committee have ajoint discussion with the Board of Selectmen this summer on this. A motion by Perry seconded by Berman to recommend the sub iect matter of Article 16 of the 2013 Annual Town Meetina Warrant was approved by a vote of 9 -0 -0. Article 20 — The Town Manager noted that the balance in the Affordable Housing Trust Fund is $259,077. The second piece of the Planned Production Plan is allocation of the trust fund. That has not been presented to the Board of Selectmen yet so he used the same language as last year except he changed to $10,000 or a maximum of 5% for administration of the affordable housing. The regional effort could cost approximately $10,000. A motion by Torman seconded by Herrick to recommend the subiect matter of Article 20 of the 2013 Annual Town Meeting Warrant was approved by a vote of 9- 0-0. Snow and Ice Ap.Rroval — The Town Manager noted that pursuant to Chapter 44 Section 31d of the MGL he needs the Finance Committee to concur with his incurring of liability and making expenditures in excess of available appropriations for snow and ice removal. Finance Committee Minutes — March 13, 2013 — page 4 A motion by Torman seconded by Dockser to approve the minutes of February 27, 2013 as amended was approved by a vote of 7 -0 -2 with Berman and Perkins abstaining. A motion by Greenfield seconded by Dockser to adioum the meeting at 9:40 p.m. was approved by a vote of 9 -0 -0. Respectfully submitted, Secretary 10 ed