Loading...
HomeMy WebLinkAbout2013-02-27 Finance Committee MinutesFinance Committee Meeting February 27, 2013 The meeting convened at 7:35 p.m. in the Town Hall Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman David Greenfield and members Jeanne Borowski, Mark Dockser, Karen Herrick, Paul McNeice, Paula Perry and Hal Torman. Also present was Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Town Accountant Sharon Angstrom, Fire Chief Greg Bums, Community Services Director/Town Planner Jean Delius, DPW Business Manager Jane Kinsella, DPW Director Jeff Zager, Town Engineer George Zambouras and resident Jeff Struble; FINCOM Vice Chairman Barry Berman and member Jeff Perkins were absent. Mr. Greenfield called the meeting to order. Comments from Town Meetine member Mr. Greenfield highlighted emails sent between Town Meeting member Jeff Struble and himself, and the fact he invited Mr. Struble in to further the discussion on the role of FINCOM with the entire committee. Mr. Struble began by introducing himself as a Town Meeting member and also the fact that as a structural engineer he was involved in the volunteer effort to respond to FINCOM's inquiry about a cost of an alternative library project plan. He disagreed that FINCOM should have requested such information on the project so late in the process, and that it had never before stepped in front of an elected board (in this case the Library Trustees) to question their decision. He stated his concern as for future projects that Reading might undertake and the role that FINCOM might play. Ms. Perry stated that she did disagree with some of the tone in the FINCOM report at Town Meeting that Mr. Greenfield presented, and did not believe that tone accurately reflected the opinion of a majority of FINCOM. Mr. Struble asked why the FINCOM liaison did not get involved earlier in the library project process. Mr. Greenfield remarked that anytime a project or major decision is in front of the FINCOM or the entire community, it is important to have altematives. Ms. Perry agreed and that FINCOM had been asking the cost of not doing the library project — a so- called `do- nothing' decision — for a few months. Mr. McNeice agreed that FINCOM purposefully did not ask for a full alternative plan, just a cost estimate so they had some basis for comparison and they could answer that question in public. Mr. Dockser stated that the big change in the updated project cost estimate did play a role, because it brought the financial aspect of the project under more scrutiny, and that FINCOM's role was to be able to fully understand the situation before making a decision. Mr. Greenfield said that he expects groups to come fully prepared when they present information to FINCOM, and that he would support any effort to improve the process of a fuller discussion along the way before reaching FINCOM. Library Buildina Committee Mr. LeLacheur reviewed the Board of Selectmen's policy to establish a Library Building Committee, and asked that FINCOM appoint one member. Ms. Herrick volunteered for that role. On a motion by Mr. Dockser seconded by Ms Perry , FINCOM appointed Ms Herrick as their representative to the Library Building Committee by a vote of 7 -0 -0. FY14 Town Manager's Budget Mr. LeLacheur reviewed the agendas for the next several FINCOM meetings through the end of March, including discussions of the FY14 budget and Articles at the upcoming Annual Town Meeting. Mr. Hechenbleikner presented an overview of the FY14 budget, which includes the use of just over $1 million in free cash. The budget fully funds the School Committee's budget and over the next two weeks Town department heads will review each of their FYI 4 budgets with FINCOM. Mr. LeLacheur reviewed the changes between the October Financial Forum and the March budget meetings. This year there is a $0.8 million improvement and most of those funds are being used in ongoing operating budgets; last year there was a $2 million improvement and about half of those funds were directed towards operating budgets, with a large share towards substance abuse prevention efforts. Ms. Angstrom reviewed the projected FY14 revenues in detail. She spoke about historical patterns, and changes in those patterns that should be considered going forward. She also reviewed the current levels of reserves and how after the proposed use of free cash in the FY14 budget the remaining balance was just under $7 million, or 9.1% of net available revenue — a figure well in excess of FINCOM's minimum 5% policy. Ms. Angstrom responded to an advance question from Ms. Borawski by describing the regeneration of reserves back to 2000. The level of reserves has grown substantially over that time because the town has spent large one -time revenues sparingly. Mr. LeLacheur reviewed the FY14 operating budgets — both the Town and Schools have +3.75% increase, plus the schools received additional funding of over $180,000 and the Town received over $30,000. Town Facilities did not need the full 3.75 %, so $50,000 less free cash was used to balance the overall budget. Among Town departments the budget changes were mixed, ranging from +11.4% in Community Services (due to a one -time $75,000 expense on a zoning bylaw project) to +0.1% for Accounting. Mr. LeLacheur then switched to total department budgets which will be the focus of the remaining FINCOM budget meetings. These ranged from +9.0% for Community Services to -1.8% for Town Administration. He also showed the employment of the various Town departments, which show a 2.7% increase from FY09 /10 for Public Safety, but a 5% decrease in all other departments combined. Public Works Mr. Zager reviewed the +2.9% DPW budget, which included the restoration of four seasonal laborers and the addition of one part-time clerk. Ms. Perry asked about the $10,000 expense for watering downtown flowers provided by the Economic Development Committee. Mr. Zager reviewed the history and the options. Mr. Greenfield asked what the EDC spends towards flowers, and if they could chip in more so the DPW share was less for watering. Mr. Tonnan cited the success of the Fall Street Faire as generating funds for EDC activities, including the downtown flowers project. Mr. Zager reviewed the rubbish, snow & ice and street lights budgets — all of which showed modest changes for next year. He reminded FINCOM about the success of the changes to the rubbish program, and that Reading won an award for the changes. Mr. Torman asked a question about the year -to -date rubbish budget, and Ms. Kinsella replied that funds were set aside to pay expected costs for the rest of the year, but those funds had not yet been spent. This would lead to a surplus in this budget by year -end. Enterprise Funds Mr. LeLacheur discussed the overview of water & sewer reserves, and described W &S Enterprise fund costs as MWRA assessments (55 0/6) that have been projected to increase at 6.1% annually from FY12 -17; and local costs (45 %) that have been planned to increase at 0.8% annually over that same time period. He described that both the large -scale water main repair project and the complete sewer station upgrade project had been placed into the capital plans. Mr. LeLacheur showed a combination of expenses and use of reserves that lead to a 2% net budget increase for the water fund and a 5.6% increase for the sewer fund. The Storm Water fund was about unchanged for FYI 4, leaving the $40/household basic fee structure intact. Town Administration Mr. Hechenbleikner reviewed the 1.8% Town Administration budget, which aside from removing town manager transition costs had very little changed. Mr. Greenfield asked if the property & casualty rate from MIIA was competitive, and Mr. Hechenbleikner replied that as MIIA was non - profit that it was for both P &C and Worker's Comp insurance. He also mentioned that MIIA gave excellent customer service, which was important because those filing claims were often residents of the Town. Accounting Ms. Angstrom reviewed the +0.1% Accounting budget, which had few changes. The Assistant Accountant position was reduced but a stipend was put in it's place. Additional professional development funds were added since she was new to the public sector. Finance Mr. LeLacheur reviewed the -0.1% Finance budget, which included regionalization in the Assessing division and the restoration of hours to a part time general clerical position. He reviewed in detail the Assessing function and all the changes that had happened since last June. He stated that the changes were very positive and things were going along very Well now. On motion by Mr. Torman seconded by Ms. Perry the FINCOM voted to adjourn it's meetine at 10:05 o.m. by a vote of 7 -0 -0. Respectfully submitted, O Secretary � T'rpl yU'�