HomeMy WebLinkAbout1998-01-28 School Committee MinutesBUDGET COUNCIL
Reading, Massachusetts
REGULAR SESSION 28 January 1998
Call to Order
Selectman Chairwoman Anthony called the Budget Council Meeting to order at 7:35 p.m. at the
Senior Citizen Center. Present were School Committee Members Cavicchi, D'Antona,
Spadafora, Stohlman, Twomey and Williams, Selectmen Members Hoyt, Anthony and Hines,
FinCom Members, Brown, MacDonald, McDonald, Kurker, Grimm and Keigley. The Library
Trustees present were Hanley, Silvaggi, Dubois, Redford.
REVIEW OF MEMBERSHIP IN BUDGET COUNCIL
Selectwoman Anthony explained that Town Council was sought to review the Library Board of
Trustee membership issue. She reported that Town Council stated that the Budget Council is a
non - entity. It is just an umbrella under which we all meet. It is a forum in which we get
together, ask questions, exchange ideas and make suggestions. Any one is welcome.
REVIEW REVENUE PROJECTIONS
Mr. Foley, Town Accountant, gave a review of revenue projections. He stated that there were
only a few changes since the last meeting. The FY99 Chapter 70 revenue would be $ 4,140,673.
He noted that there would be a 2% increase in non - property tax local revenue. The total
proposed projected revenue for FY99 would be $ 44,012,595.
Ms. Grimm asked about excise taxes. Mr. Foley responded that they had just received the excise
tax commitment that afternoon.
Mr. Twomey asked if a 2% increase in non property tax local revenue was used in prior years.
Mr. Foley stated that you cannot project an increase of any more than 2% at this time. It is too
early to state. It gets easier to determine as time goes on. Mr. Twomey stated that 2 1/2% would
make more sense. Mr. Foley responded that 2 1/2 % or even 3% would not make that much of a
difference over all.
Mr. Foley stated that the projected FY99 "free cash" would be $ 560,000. Ms. Grimm stated
that Mr. Blewitt, former FinCom member, always suggested that at this point in the budget
process that "free cash" should be stated at zero. This would better state our revenues, thus
giving us a clearer picture of where we stand.
Mr. Hechenbleikner gave an overview of the FY99 Town Budget. He stated that the large
increase in the Northeast Regional Vocational Assessment was due to the fact that last year we
had 14 students attend the vocational school and this year we have 25 students attending.
REGULAR SESSION -2- 28 JANUARY 1998
Ms. Grimm stated that we were 1.2 million dollars apart on the budget this time last year. We do
not have to use "free cash" at this time. When we meet here again in March we will make a
recommendation for a balanced budget.
There was discussion regarding budget deficits. Mr. Stohlman stated that we can cover a deficit
with the sale of real estate, free cash funds, an override or by cutting the bottom line. Mr.
Hechebleikner said it concerned him to speak of balancing a budget using sale of real estate
funds. He will submit a balanced budget to the FinCom. The Capital Plan balances are one tenth
of one percent of the budget over ten years. Compressed into five years, you have more capital
funds and less operating funds.
The landfill closure will cost 4 million dollars. Any money from the sale of the landfill will be
used to offset the cost to close or cap the landfill. The Town Manager is accepting bids on the
landfill and proceeding on the conservative side. He has more information and knowledge now
on the landfill than he did two years ago when this all started. Mr. Hines added that through
negotiations with a prospective developer costs could go up or down depending what the plans
are. The developer may have a better plan or way to proceed. The proceeds could be less
depending on the circumstances. Mr. Hechenbleikner stated that this is a neutral way of looking
at the issue. When we are negotiations with the highest bidder they may be able to cap the site
cheaper than we could. They will not have to pay the prevailing wage. We would be happy to
break even. All of our estimates are conservative.
Mr. Stohlman thought the proceeds from the landfill would go towards the new high school.
The Town Manager said the proceeds from the landfill would go towards getting the landfill
ready to sell. There will be no proceeds.
Once developed, the land may generate property tax. We have the lowest commercial tax rate of
all the surrounding towns. This may attract potential developers.
Dr. Harutunian stated that he had, this afternoon, receive a preliminary report from Peat Marwick
which will have major financial implication on the FY99 budget pertinent to personnel issues.
He will forward the report the School Committee, FinCom and Selectmen.
Mrs. Anthony asked if there were any more questions. There were none, so the discussion
moved on to the schedule of up coming meetings. Mr. Hechenbleikner asked everyone to mark
their calendars. The next Budget Council Meeting is March 18, 1998.
Mrs. Anthony asked if any of the three boards had to move to Executive Session. The response
from the three boards was no.
Each board made a motion to adjourn The vote was unanimous. The meeting was adjourned.
Mr. Twomey Mrs Williams Mr. Stohlman, Mrs Cavicchi Mrs. D'Antona and Mr. Spadafora
Respectfully submitted,
Harry K. Harutunian, Ph.D.
Superintendent