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HomeMy WebLinkAbout2000-01-19 School Committee Minutes Financial ForumREADING SCHOOL COMMITTEE Reading, Massachusetts Financial Forum January 19, 2000 Chair Grimm called the Financial Forum to order at 7:40 p.m. at the RMLD Meeting Room. Present were School Committee Members Dahl, Keigley, Twomey and Williams. Superintendent Harutunian Selectmen Anthony, Cummings, Hines, Hoyt, Town Manager Hechenbleikner, Assistant Town Manager Dean, Finance Committee Members Grimm, Grimmer, McDonald, Francis, Robinson, LeLacheur, Kurker, Martin, Deidre Hanley, Maria Silvaggi from the library board. Ms. D'Antona arrived at 7:55 p.m. Review of Revenue Forecasts Chair Grimm advised that there is an updated agenda available for all members at the tables. The Town Manager discussed revenue forecasts. He also discussed a special education reimbursement bill that may be filed. He then reviewed state aid history FY95- FY00. Review of Expense Budget The Town Manager reviewed the expense budget including items such as rubbish removal, which had to increase. He stated that there were no new positions and no new programs included. The Town Manager advised that the Board of Selectmen voted to provide a more realistic figure for snow and ice. The Town Manager advised that the Board of Selectmen did vote $12,354,658 for the municipal budget last night. Ms. Klepeis arrived at 8:05 p.m. The Town Manager reviewed different scenarios for the override, style and amount. Financial Forum 2 January 19, 2000 Ms. Anthony asked from input from the other Boards and Committees regarding a proposed override. Mr. Keigley stated that he believed we should be going for a significant override, in the area of $4 million, to get the town through the next five years. He stated that he did not want to have to go back to the community in another two years and ask for another override. Mr. Cummings stated that the proposed $1.9 million override assumes that we will not have to cap the landfill. Chair Dahl stated that the $1.9 million would only get us through one year. Mr. Francis stated that since the Selectmen and the School Committee have voted they now need to look to increasing fees, including trash fee. Mr. Cummings stated that it is impractical to ask for an override of $1 million and implement trash fees of $1,000,000. He also stated that the process of going for an override and then implementing a trash fee if the override did not pass would not be a viable process. Chair Dahl stated his concern about going for an override this early in the year. He stated that since we received additional state aid late in the year last year people may assume that we will again receive additional aid. The Town Manager stated that Chair Dahl's point was valid but that we could get the message out that if additional aid comes in the Town will not "tax to the max ". Mr. McDonald asked how you explain to the general public that we have $1 million in free cash and we are asking for an override. Chair Grimm stated that we would be using $500,000 in free cash leaving a balance of $600,000. Mr. LeLacheur stated that he can't support any override until someone does a better job explaining how we got here and how we will handle future needs. Mr. Hines stated that that it is due to lower state aid coming into the town. The Town Manager advised that the state aid increase is the lowest increase in 7 years. Financial Forum 3 January 19, 2000 The Town Manager stated that 61 % of our revenue comes for an area that we can't increase more than 2 ' /z% per year and we have no control over state aid. Ms. Silvaggi asked if any thought had been given to selling RMLD. The Town Manager stated that the Board of Selectmen discussed that but in order to do that consultant help is needed and we are looking at what the cost of the consultants would be. Ms. Grimmer stated that we need to be able to explain to the community what we are doing to increase revenues and keep a handle on expenses so that we are not going back for an override in the near future. The Town Manager advised that he is working with Lincoln Properties, the second bidder on the landfill and will keep the forum posted on information. Ms. Anthony stated that she feels that the town needs to focus and get involved in possible alternatives for special education funding. Dr. Harutunian advised that he has been working with various groups regarding changing the funding for special education. He stated his concern that it is unlikely in light of the governor's race that anything will get passed in the next 18 months. He also stated his concern that any change in special education funding may just be aid that we already receive from the state just being repackaged and presented as special education funding with no overall increase to the towns. At 9:20 p.m. Chair Grimm advised that the Forum would take a short recess. Dr. Harutunian stated that he had no agenda items for Monday's School Committee meeting. It was the consensus of the Committee to cancel Monday's School Committee meeting. Dr. Harutunian advised the Committee that the warrant will be closing in the next few days and he needs the consensus of the Committee to put an article on the warrant to move the Barrows project forward. It was the consensus of the Committee to direct the superintendent to put an article on the warrant to move Barrows forward. Dr. Harutunian advised the Committee that there are three candidates for School Committee, Tim Twomey, Bill Griset and Ray Porter. Financial Forum 4 January 19, 2000 At 9:45 p.m. Chair Grimm called the Financial Forum back to order. Mr. Hines stated that it was the consensus of the Selectmen to consider $1.9 million for override plus fully funding building maintenance. In terms of reaching final deliberations the Selectmen had the following questions for the School Committee: If override is successful how do you feel about the potential to cut next year what you have added this year? 2. What would the School Committee be reducing from their budget if override does not pass? In order to get realistic we need to understand what the School Committee would be reducing from their budget. Will the schools be able to hold future increases to 5 %? The Selectmen have asked Peter and Beth to do an analysis and long term financial planning and we can no longer add 8% to school department budget each year increases will have to be closer to 5 %. Dr. Harutunian advised that on December 28"' he had met with administrators to discuss possible reductions. He stated that the School Committee has not had an opportunity to review the reductions yet. He also stated that increases of 5% to the school department budget would result in lay offs. The 5% increase will only cover salaries. Chair Dahl stated that the Board of Selectmen must realize that when they say hold the school budget to a 5% increase that the School Committee has no control of the special education costs. Pete Hechenbleikner advised that the demand for services on the municipal side increases 2% also. Chair Grimm stated that the information would need to be available for the Selectmen for their meeting on Tuesday evening. The Selectmen requested that representatives from the Finance Committee and the School Committee attend Tuesday's meeting. At 10:20 p.m. the Finance Committee and the Board of Selectmen adjourned. The School Committee discussed the magnitude of potential budget reductions. Financial Forum 5 January 19, 2000 ADJOURN At 10:30 p.m. Mr. Twomey made a motion to adjourn. Mr. Keigley seconded the motion. The vote was 5 -0 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Keigley, Mr. Twomey and Ms. Williams. spectfully submitted, / r / Harry . Harutunian, Ph.D. Superintendent of Schools