Loading...
HomeMy WebLinkAbout2003-10-09 School Committee Minutes - Financial ForumTown of Reading Financial Forum Regular Session October 9, 2003 CALL TO ORDER At 7:30 p.m. at the RMLD AudioNisual Room, Mr. Spadafora called the School Committee to order, Mr. Hines called the Board of Selectmen to Order and Ms. Martin called the Finance Committee to order. Present were School Committee Members Carpenter, Russo, Spadafora and Webb, Board of Selectmen Anthony, Cummings, Shubert and Hines, Finance Committee Members Bolger, Grimes, McDonald, Martin, LeLacheur, Robinson, Torman and West. Also present were Superintendent Schettini, Associate Superintendent Richards, Town Manager Hechenbleikner, Town Treasurer Klepeis and Town Accountant Foley. Town Manager Hechenbleikner reviewed the projected general fund revenues FY05 through FY09. He asked that the group pay careful attention to the footnotes. He discussed property taxes, local revenues from sources other than property taxes and intergovernmental revenue. Mr. Hines stated that he had a problem including anything from Pearson and the Landfill Phase 2 and Moore Phase 2. He stated that if we are not already in the permit process, projected revenues should not be included. Mr. Cummings agreed with Mr. Hines regarding not including any revenue from projects not in the permit process. Ms. Martin agreed with Mr. Hines and Mr. Cummings and stated her opinion that we should be conservative in our estimates. She confirmed with the Town Manager that he did not take into consideration there would be more money to invest because of the school projects. Mr. Hechenbleikner confirmed that he did not take into account money for the school projects. He stated that he level funded state aid to estimate revenue for the next five years. Mr. Cummings stated that he would not assume for at least FY05 flat state aid and he recommended a decrease be assumed. After discussion, it was decided that state aid would be on the agenda for the meeting with the legislators that will be scheduled for sometime November. Regular Session 2 October 9, 2003 Mr. Hechenbleikner discussed free cash. He stated that the only way to estimate free cash is historically. Ms Anthony asked what figure was used for RMLD for modeling purposes. Mr. Hechenbleikner stated he used the increase of 2% CPI. Mr. Russo asked why there was no figure in the stabilization fund. Mr. Hechenbleikner stated that would be established this fall at Town Meeting. Mr. Hechenbleikner stated that the goal for cash reserves is 5% of the operating budget. Mr. Hechenbleikner reviewed the projected expenses. He again asked the group to pay special attention to the footnotes. He stated that for the model he used 4% salary increase for town employees which included salary and step increases and he increased expenses by 2.5% all five years. He stated that the school side used 6.5 %. He stated that the 6.5% was determined by taking the average increase in the school department budget over the last ten years. He noted that the operating costs for the new school were not included in the projections. Mr. Hechenbleikner discussed the rising cost for health benefits. Superintendent Schettini discussed the estimated operating costs for the new school for FY05 and for FY06. He noted that the impact on the FY05 budget is estimated at $280,000 for additional bussing of Barrows students to the new elementary school. Superintendent Schettini distributed a chart showing operating expenses he noted that there would be one year where maintenance contracts are not required because of the warranties. Ms. Anthony asked if there would be any cost for Barrows utilities during construction. Superintendent Schettini stated that utilities would be taken over by the contractor during construction. Superintendent Schettini stated that the number of busses needed for FY05 was not a firm number. He stated that the school department is doing a detailed route analysis and that the school department would need to go out to bid for the transportation services. Mr. Cummings asked if the increase after FY05 was still projected at approximately $145,000. Superintendent Schettini stated that the School Committee needs to have additional discussion on the operation of the new school but that he is estimating personnel costs at $325,000. He stated that personnel and other operating costs would total $438,453. Regular Session 3 October 9, 2003 Mr. Spadafora noted that the previous administration presented a net cost which deducted the cost of maintenance to the portables, a decrease in bussing and electrical expenses. Ms. Anthony stated that the Selectmen should move forward on getting assistance from RMLD on electrical rates. She stated that with the increase in operating costs for next year for the schools the projected deficit is $1.2 million. Mr. McDonald stated that the school department should be looking at 4% to 4.5% rather than 6.5% Mr. Cummings agreed with Mr. McDonald. He stated that the increase in operating costs for the new school should be taken back to the voters. Mr. Spadafora stated that the voters have affirmed the decision for the fifth elementary school on three different occasions and that he thought it was clear that there would be an increase in the budget to operate an additional school. Mr. Cummings stated that the funds have to come from somewhere and that the school department may have to pare back its budget. Mr. Russo requested that a more liberal estimation be done by the Town Manager. Mr. Hines disagreed with Mr. Russo. He indicated that the conservative estimate is closer to reality. Ms. Anthony stated that during negotiations Selectmen and School Committee members must be cognizant of what the Town can afford. Mr. Bolger stated that we need a strategy to keep expenses at what we estimate. He stated that we might need to look at independently funding some programs like Hamilton Wenham did. Mr. Carpenter noted his concern over the increase in expenses such as health insurance and over the prospect of cutting more programs. Mr. Hechenbleikner stated that he would spend more time solidifying the numbers based on what the boards indicated this evening and come back to the boards with an outline for them to review. Ms. Webb noted a misprint in the local paper regarding the district's MCAS score and per pupil spending. She stated that Reading is rated 20th in the state on the MCAS scores while its per pupil spending is ranked 227 th Regular Session 4 October 9, 2003 Ms. Martin stated that the Finance Committee would discuss the warrant article on the stabilization fund at the next Finance Committee meeting. The Committees agreed that the next Financial Forum meeting would be November 20'h Mr. McDonald moved to adjourn the meeting at 8:45 p.m. Mr. Robinson seconded, all in favor. Mr. Spadafora moved to adjourn the meeting at 8:45 p.m. Mr. Carpenter seconded, all in favor. Mr. Cummings moved to adjourn the meeting at 8:45 p.m. Mr. Schubert seconded, all in favor. IN Superintendent of Schools