HomeMy WebLinkAbout1999-10-07 School Committee Minutes - Financial ForumREADING SCHOOL COMMITTEE
Reading, Massachusetts
Financial Forum Meeting October 7, 1999
CALL TO ORDER
At 7:35 p.m. Chair Dahl called the School Committee to order at the Senior Center.
Present were School Committee members Cavicchi, Dahl, D'Antona, Twomey and
Williams. Also present was Superintendent Harutunian.
At 7:35 p.m. Chair Grimm called the Finance Committee to order.
At 7:35 p.m. Chair Hoyt called the Board of Selectmen to order.
The Library Board of Trustees did not call to order as they did not have a quorum
present.
Beth Klepeis advised that there was still no budget from the state. She went through the
projected revenues and explained how projected revenue estimates are determined. She
stated that property tax accounts for approximately 60% of revenue, local revenues
from sources other than property tax account for approximately 10% of revenue, state
aid accounts for approximately 21% of revenue and operating transfers account for
approximately 7% of revenues. Beth informed the group that the state no longer
considered Reading over burdened under the education reform formula and that is why
aid has dropped. She stated that the state is working on a revised formula
Dr. Harutunian noted that Reading's tax burden rating dropped form 36th to 47th in the
state.
Richard Foley discussed how the FY99 free cash number was determined. He
presented graphs on certified free cash for the last 17 fiscal years, statement of
revenues, expenditures and changes in fund balance for the last 10 fiscal years and the
ratio of unrestricted state aid to total general fund revenues and other financing sources
for the last 10 fiscal years.
Beth Klepeis presented a chart on outstanding property taxes for the last ten fiscal years.
She stated that delinquent taxes have decreased.
Chair Grimm stated that delinquent taxes do not appear in the revenue forecast but are
put toward free cash when received.
Town Manager Hechenbleikner discussed 1999 Subsequent Town Meeting decisions.
Financial Forum Meeting -2- October 7, 1999
• Symon's Way - $50,000
• Landfill marketing - $135,000
• Landfill closure plans - $56,000
• Acquisition of 75 Pleasant Street - $220,000
• Authorize Chapter 90 Funding - $0
• Saugus River Improvements - $75,000
• Sec 100B Retired Fire /Police — cost unknown
• Sunset Rock - $0
• Land fill performance bond - $0
• Dividence Elementary School - $9.1 million
FY00 Deferred Capital Projects
30,000 Design of DPW Expansion
225,000 Fire truck
215,000 Downtown Parking
470,000
FY01 Capital Improvements Program
$1,600,000 in appropriations requested including the $470,000 which is $200,00 more
than anticipated for FY01 in the FY00 Capital Improvement Plan.
FY01 Operating Budget
The Town Manager stated that it is too premature to decide what reasonable requests
will be for the FY01 budget. He stated that $1,277,665 is available for FY01 budget
increase.
Dr. Harutunian stated that contractual costs for schools are estimated at $650,000 to
$725,000 for FY01. He also stated that because of enrollment at next year's
kindergarten level and stn grade level an additional six teachers minimum would be
required to open schools next year.
Mr. Cummings asked about classroom space.
Dr. Harutunian advised that the school department is looking at renting space at St.
Athanasius for kindergarten classrooms. He also clarified that if a new school is built
teachers will not need to be hired to fill every classroom. He stated that currently art
Financial Forum Meeting -3- October 7 1999
and music do not have separate classrooms and some special education services are not
in classrooms but other areas in schools have been converted to classrooms.
The question was asked whether next year's jump in kindergarten enrollment was a one
time issue because of the change of enrollment date.
Mr. Twomey stated that this is a not a one time issue. He stated that this year's
kindergarten class would be a smaller class because only nine months of students were
eligible to attend kindergarten because of the date change. He stated that the following
years would have 12 months of students and enrollment would be as projected.
Dr. Harutunian advised that he had checked with the Town Clerk's office and the birth
rate for 1999 so far is consistent with the 1995 birth rate.
Chair Dahl explained that birth rates are looked at in determining enrollment but also
cohort survival is brought into the formula which adds children into the school cycle
over the years for families that will move into town or have previously had children in
private kindergarten.
Town Manager Hechenbleikner stated that the major uncertainty in the budget is this
year's state aid. He stated that the simple answer to the budget issue is that either
expenditures have to be cut or revenues raised. He stated that an override is one way
and that all options will need to be looked at.
Mr. Brown questioned the water supply advisory rate because the cost for that increase
would also impact people.
Mr. Hechenbleikner stated that there will be a presentation on the water supply advisory
rate status at Town Meeting
Mr. Brown asked if Corporex had decreased the size of their proposed complex.
Mr. Hechenbleikner stated that Corporex has changed from two tower office space to a
one tower office space but the square footage has not been significantly lowered.
After discussion, it was decided that Town Manager Hechenbleikner and Dr.
Harutunian would work to determine a date for the financial forum to meet again prior
to Town Meeting.
ADJOURN FINANCE COMMITTEE & BOARD OF SELECTMEN
At 9:30 p.m. the Finance Committee and the Board of Selectmen adjourned.
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The School Committee requested that Dr. Harutunian work with the Town Manager to
confirm with the Selectmen that the School Committee would retain their status as
Special Town Employees.
ADJOURN SCHOOL COMMITTEE
At 9:35 p.m. Mr. Twomey made a motion to adjourn. Ms. D'Antona seconded the
motion. The vote was 5 -0 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Twomey
Ms. Williams.
Res ectfully submitted,
Harry K. Harutunian, Ph.D.
Superintendent of Schools