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HomeMy WebLinkAbout1998-09-10 School Committee Minutes - Financial ForumI READING SCHOOL COMMITTEE Reading, Massachusetts BUDGET COUNCIL September 10, 1998 CALL TO ORDER Chair D'Antona called the School Committee to order at 7:35 p.m. Present were School Committee members Cavicchi, Dahl, D'Antona, Stohlman, Twomey and Williams. Also present was Superintendent Harutunian. SUPERINTENDENT'S REPORT Dr. Harutunian advised the Committee that the Finance Committee voted 8 -1 last night in favor of Article 5 — Special Town Meeting. Dr. Harutunian advised the Committee that he had spoken to the principals again about priorities for the surplus funds and there was a clear consensus that moving forward with a pilot program of four elementary assistant principals would be advantageous. If the Committee did not feel they could support the assistant principals, the principals would petition for the $120,000 to be placed back in the 20% hold account. Mr. Stohlman stated that he had looked through the cut list and thought that if we plan to make a commitment to implement the Peat Marwick report the Committee should consider restoring the original cut of $33,000 made to building maintenance. Dr. Harutunian advised that the cut of $33,000 was a cut out of the maintenance budget not an additional custodian. Dr. Harutunian also advised that the principals feel that moving forward on funding the Peat Marwick recommendations without a long -term plan will place a burden on the School Department. Mr. Stohlman asked if an addition to the maintenance staff would be a supervisor, a custodian or clerical. Dr. Harutunian advised that at this time he is not prepared to make a commitment as to what type of staff would be added first. He stated that if there is support for implementing the Peat Marwick recommendations he would meet with Jeff Griffin to discuss this issue. Mr. Stohlman asked how much the per pupil allocation was increased. Dr. Harutunian advised approximately $20.00 Mr. Twomey stated that he thinks there is some weight to the administrators' current expression of priorities even thought it has changed since the budget process. The Committee has had a number of discussions about the elementary school enrollment BUDGET COUNCIL -2- September 10, 1998 growing and getting additional administrative support. He stated that two major scenarios for resolving enrollment issues are the continuation of four elementary schools with a renovation and addition or adding a fifth elementary. Mr. Twomey stated his concern that if we go to a fifth elementary school and spread out the enrollment the need for assistant elementary principals will drop. Mr. Twomey stated that if the Committee takes action now on the assistant elementary principals it might be difficult to back off on that commitment if, in the future, the decision is made to go with a fifth elementary school. Ms. Cavicchi stated that at the School Committee meeting on September 8t ", she asked if the Committee decided to support adding assistant principals would the Administration make it very clear to the potential employees that these were temporary position and the answer from the Administration was yes. Ms. Cavicchi stated her belief that with the current enrollment numbers this would be a good time to pilot assistant elementary principals. Mr. Twomey stated that he also felt it was important that the potential employees were clear that the positions were temporary. He also stated that he felt it was equally important that the FinCom, Board of Selectmen and the community as a whole understand that if the fifth school scenario is the recommended solution to the increasing enrollment issue then the assistant principal positions may be eliminated once the fifth school is completed and the enrollment spread. Ms. Cavicchi asked about the possibility of hiring only two assistant principals and sharing them among the four schools. Dr. Harutunian advised that he had discussed hiring only two assistant principals with the administrators. The consensus was that if we can't move forward with a full commitment then they prefer to wait until a full commitment can be made. Ms. Williams made a motion to request funding for the Superintendent's recommendation of four technology /computer assistants, 1 LAN administrator, 4 regular elementary ed assistants and restoring $120,000 back into the principals 20% hold account. Ms. Cavicchi seconded the motion. The vote was 5 -0 -1 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Stohlman and Ms. Williams voted yes, Mr. Twomey abstained. Mr. Twomey stated that he was not opposed to the motion but felt that more weight should be given to what the principals are saying and there should be more discussion on where the School Department is headed. At 8:05 p.m. Chairman MacDonald called the Board of Selectmen to order. At 8:05 p.m. Chairman Keigly called the Finance Committee to order. BUDGET COUNCIL -3- September 10, 1998 Status of Free and Cash Reserves Richard Foley spoke to the Council regarding Analysis of Changes in Certified "Free Cash, Statement of Revenues and Expenditures, Analysis of Reserves and Projected Revenues. Finance Committee Member Grimm stated that the budget March 1998 shows that $89,000 was spent but in fact $150,000 was spent and lottery receipts were used to offset. Selectman Anthony asked if the money had not been spent would it have gone into free cash. Mr. Foley stated that the money would have gone into free cash but the funds were spent. Town Manager Hechenbleikner distributed information on the potential uses of "surplus" funds for FY99. He discussed each of the items on the list and stated that he was looking for direction for modifying the FY99 budget in November. The list of items included: ♦ FY99 budget changes already committed to, i.e. Bacigalupo retirement, etc. ♦ Tax relief ♦ Additional savings ♦ Restore capital items eliminated from FY99 budget used to balance the school budget, fences $20,000 and School Technology $75,000. ♦ School Expenses (to be discussed by Dr. Harutunian) ♦ Building Maintenance — to begin to implement the Peat Marwick Study. ♦ Town priority needs, part time clerical in the police department, human services department and community development department. ♦ Additional capital needs. Dr. Harutunian advised the Council of the School Department's recommendations for using the "surplus" funds for FY99. These recommendations included: ♦ Returning $120,000 to the principals' hold accounts ♦ Adding four Technology /Computer Assistants ♦ Adding four Regular Elementary Ed Assistants ♦ Adding one LAN Administrator K -12 Chairman MacDonald asked whether these were new positions. Dr. Harutunian advised that they were new positions but were requested in the FY99 budget and cut. BUDGET COUNCIL -4- September 10, 1998 Chair D'Antona reminded the Council that $800,000 of the requested School Committee budget increase was cut last year. Chairman MacDonald stated that the School Department budget was not cut but the amount of the requested increase was cut. Chair D'Antona stated that was what she had said. Mr. Dahl stated that if extra funding is available it is important to restore the $120,000 to the principals' hold account as this represented important items. Town Manager Hechenbleikner stated that a study was done that showed that the police department needed additional clerical help in order to free up people who should be on the street as working officers rather than being inside doing paperwork. He stated similar concerns for the community development office and human services office. Mr. Stohlman question what Article 5 — Special Town Meeting was and why it was already taken off of the $355,000 "surplus" and not in for discussion with the other items. Town Manager Hechenbleikner stated that it was for property on Brandy Court. He stated that the Atlantic Market had purchased the property and donated it to the town with the stipulation that the town add parking spaces in that area. He stated that the article is already on for town meeting. The Town Manager stated that he was looking for direction from the Budget Council. He stated he believed that some of this money should be put towards the Peat Marwick recommendations, perhaps starting with 1/3 of what is recommended. He also stated that the Council needs to remember when discussing the Peat Marwick recommendations that square footage is being added to different town and school buildings and the staffing levels will need to reflect that. Chair D'Antona stated that if the Council is serious about implementing the Peat Marwick recommendations then she believes a plan should be drawn up and we should not back into the funding. Town Manager Hechenbleikner agreed with Chair D'Antona but stated that if it was decided to go ahead with the Peat Marwick recommendations, the money to fund it this year would have to be taken from the "surplus" funds. BUDGET COUNCIL -5- September 10, 1998 Finance Committee Member Grimm stated that she believed the Board of Selectmen would be pushing for the condo trash pick up and that amount should be taken off the "surplus" funds. Town Manager Hechenbleikner stated that he included that under item number one FY99 budget changes already committed. Mr. Twomey stated that he would like to see all the specifics that fall under the town's priorities for spending the "surplus" funds. Selectman Hines stated that the condo trash vote was in response to a vote at town meeting to add a warrant as an article for town meeting. Chair MacDonald stated that the cost is $38,000 annualized and there is no alternative funding available. Selectman Hines stated that the $38,000 could come from reserves. Mr. Dahl stated that at the FinCom meeting it was indicated that the "surplus" funds should be used for one -time items, not personnel. He stated his priority would be to put together a model for implementing the Peat Marwick report and returning money to the principals' hold back account. Library Member Steve Conner stated that the Peat Marwick report would be adding personnel. Mr. Dahl stated that yes it would but the additional personnel would be included in a long term funding plan for the consolidation of maintenance. Chair Keigley stated that the FinCom is serious about the 5% cash reserves and he would campaign to hold the 5 %. Library Member Steve Conner stated that he would support use of the money for building maintenance but believed $50,000 was a low number. Mr. MacDonald asked if everyone agreed that the "surplus" total was $189,000. Mr. Stohlman stated that he was not in agreement. The $48,000 was being viewed as a done deal and should not be. That $48,000 could be used to fund maintenance items. Finance Committee Member Grimm stated that the number may actually be lower. She stated that local revenues may come in lower than noted and did not think that the $60,000 figure should be on the table in September. Mr. Twomey stated that the Council agreed last spring that they would revisit the number in August or September. BUDGET COUNCIL -6- September 10, 1998 Finance Committee Member Francis stated that his opinion was that we had a large amount of unsettled union contracts and the money should be held to cover what may be an overage on settlement estimates. Selectman Anthony questioned the urgency of deciding how to spend "surplus ". She stated that it was early in the year and felt it would be better to hold off. Ms. Williams stated that every day that we hold off is one less day that an Ed Assistant will be available to the children in a classroom. Town Manager Hechenbleikner stated that if the Council wants to save the money they need to put an article on for town meeting requesting a stabilization fund before the article closes or the "surplus" funds would lower the tax rate. Dr. Harutunian suggested that each Committee caucus for 15 minutes and return with recommendations. Mr. Twomey moved for a 15- minute break. Selectman Anthony stated that she would like the information on the Peat Marwick report before the boards caucus. Dr. Harutunian distributed a memorandum regarding the School Committee's concerns on the Peat Marwick Report. He stated that the School Committee was looking for consensus from the Council on the following items: ♦ Should the maintenance departments be consolidated? ♦ Should the maintenance department be under the control of the town or the schools? ♦ Is there a long -term financial commitment, 2 -4 year plan? Dr. Harutunian stated that the School Committee did not recommend using surplus funds for the Peat Marwick report because there was not a long -term plan in place. Chair D'Antona stated the School Committee's concern that some funding mechanism be put in place so that the School Committee would not be faced with a deciding between maintenance needs and school department needs. Ms. Cavicchi agreed and stated that she saw some type of funding mechanism similar to the capital plan. Town Manager Hechenbleikner stated that his recommendation is that we consolidate maintenance. He stated that the cost will be the same whether the department is under the town or under the school department. He stated that the major questions are: BUDGET COUNCIL -7- September 10, 1998 ♦ Will the budget council support consolidation? ♦ Should the maintenance department be under the control of the town or the schools? ♦ Is the budget council going to give financial support that is needed to implement a consolidation? Finance Committee Member Franics asked whether there were any comments on the study itself. He stated that he did not think the study was that good. He stated that the report ignored that fact the maintenance labor is union. Dr. Harutunian stated that both he and the Town Manger agreed that the report wasn't as specific as they may have liked but the recommendations are on target. Selectman Anthony stated that the Budget Council needs to commit to a level of funding for building maintenance. Chairman Keigley stated that building maintenance should be a line item. He stated that the maintenance has been so bad that the buildings deteriorate to the point where we knock buildings down and build new ones. Library Member Steve Conner asked for a show of hands for support. After discussion, it was decided rather than a show of hands the Committees would break and caucus for 15 minutes. The School Committee broke to caucus at 9:55 p.m. Mr. Twomey moved that the School Committee support the concept of combined building /custodial maintenance with the town. Mr. Stohlman seconded the motion. The vote was 6 -0 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Stohlman, Mr. Twomey and Ms. Williams. After discussion, the consensus of the Committee was 4 members, Ms. Cavicchi, Mr. Dahl, Ms. D'Antona and Mr. Twomey believed maintenance belonged under the control of the school department and 2 members, Mr. Stohlman and Ms. Williams were indifferent about who should control the department. Mr. Dahl made a motion that the School Committee support the conceptual framework of the Peat Marwick report. Ms. Williams seconded the motion. The vote was 6 -0 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Stohlman, Mr. Twomey and Ms. Williams. After discussion, the consensus of the Committee was that the Committee ask Dr. Harutunian and Town Manager Hechenbleikner to come back to the Committee with a detailed plan for implementing and funding the Peat Marwick recommendations. BUDGET COUNCIL -8- September 10, 1998 Mr. Stohlman moved that the School Committee support the expenditures for additional state and county assessments, restoring the 5% cash reserves and the Bacigalupo retirement. Ms. Cavicchi seconded the motion. The vote was 6 -0 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Stohlman, Mr. Twomey and Ms. Williams. Mr. Twomey made a motion to recommend the following as the School Committee's priorities for expenditures of additional funds. Priority one to restore $120,000 to the principals' 20% hold back account, priority two add four regular ed elementga assistants, priority three add four technology /computer assistants, priority four add one LAN assistant and priority five any remaining funds should be used to begin to fund the Peat Marwick recommendations. Ms. Cavicchi seconded the motion. The vote was 6 -0 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Stohlman, Mr. Twomey and Ms. Williams. The Budget Council returned from caucusing at 10:12 p.m. Chairman MacDonald advised the Council that the Board of Selectmen agreed that they would support a joint maintenance department and they would prefer that the town run the department or that it be jointly administered. They advised that their priorities were $48,000 for Brandy Court, $70,000 minimum investment in maintenance but contingent upon approving a maintenance plan and they agreed that no personnel should be funded. Chairman Keigley stated that the FinCom agreed 7 -0 -0 to support joint maintenance under a separate line item. Chairman Keigley also clarified that the FinCom never voted not to fund personnel with the "surplus" funds. Chairman Keigley advised that the FinCom agreed 4 -1 -2 to use the Peat Marwick Report as a guide. The FinCom agreed 7 -0 -0 to put an article on the warrant for a stabilization fund for the November Town Meeting. Mr. Stohlman questioned whether the Finance Committee would reconsider their vote regarding article 5 — special town meeting. Ms. Williams stated that the FinCom was given only a snapshot of the town's needs when they had voted for the $48,000 for article 5 — special town meeting. Chair Keigley stated that he stood behind the vote and believed it was a good vote. Chair D'Antona reviewed the School Committee's votes with the Budget Council. She stated that the School Committee supported the concept of the joint maintenance venture within the school department. She stated that the School Committee requested that Dr. Harutunian and Town Manager Hechenbleikner come back to the Committee with a detailed plan including funding. She stated that the School Committee accepts the conceptual framework of the Peat Marwick study. She stated the School Committee priorities for the surplus funds are as follows: BUDGET COUNCIL -9- September 10, 1998 ♦ Payment of state and county assessments ♦ Bring cash reserves up to 5% and fund Bacigalupo retirement ♦ Restore $120,000 to the principals hold back account ♦ Hire 4 regular education assistants ♦ Hire 4 technology /computer assistants ♦ Hire 1 LAN Administrator ♦ Any remaining funds should go towards funding Peat Marwick recommendations. Mr. Stohlman stated the consensus of the School Committee regarding who should have control over the maintenance department was four members agreed it should be under the school department and two members were indifferent about whether the town or schools should have control over the maintenance department. Chair MacDonald stated that the Board of Selectmen would request some type of legal or quasi -legal document regarding the use of maintenance funds and how they would be jointly administered. Dr. Harutunian advised that he and the Town Manger would work out a plan, check with the Town Attorney and return to the Committee with the information. Library Board Member Steve Conner stated that the Library Board agreed that the maintenance departments should be consolidated, the maintenance department should be under the control of the town and the Peat Marwick guidelines are adequate. The Library Board priorities for spending the surplus funds are: ♦ Some money, more than $50,000, should go to funding the Peat Marwick recommendations. ♦ Four educational assistants should be hired. Mr. Twomey stated that he had not attended the last Budget Council meeting and he was unsure whether the Library Board is a full participant in the Budget Council or an advisory member to the Council. Mr. Twomey stated that he would like to know whether the Library Board's votes carry as much weight as the other boards or is it an advisory board. Selectman Hines stated that the Board of Selectmen's discussion was held under the understanding that the FinCom had voted for hiring no new personnel with the surplus funds. He stated that since Chair Keigley stated that the FinCom did not vote on that issues, the Board of Selectmen may want the opportunity to review their priorities. BUDGET COUNCIL -10- September 10, 1998 Chair MacDonald stated he believed that the Budget Council had determined the following things: ♦ The Council supports consolidating the maintenance department. ♦ The Council has agreed that Dr. Harutunian and Town Manager Hechenbleikner will come back to the Budget Council with a detailed plan regarding how the maintenance funds will be jointly administered. ♦ The Council is in agreement that some amount of funding should go towards implementing the Peat Marwick recommendations. Chair D'Antona stated that she wanted it on the record that at this point funding the Peat Marwick recommendations is the School Committee's lowest priority. Selectman Nestor stated that in fact if town meeting votes in favor of article 5 then the School Committee has voted $0 for funding the Peat Marwick recommendations. Mr. Twomey stated that the Peat Marwick funding was placed as the lowest priority because there is no detailed plan. He stated that when the Committee receives a detailed plan they will reconsider the priority. Mr. Dahl made a strong statement regarding the decision to hold a special town meeting and incur the expense for one $48,000 article. He stated that he believed that the issue could have waited until the November town meeting. Selectman Anthony stated that it was because of the nature of the article that the Board of Selectmen decided to handle it as quickly as possible and called for the special town meeting. At 10:55 the Board of Selectmen voted to adjourn. At 10:57 the Finance Committee voted to adjourn. Mr. Twomey moved to direct the Superintendent to put an article on the warrant prior to September 22 "d for the November Town Meeting for the possible purchase of real property. Ms. Cavicchi seconded the motion. The vote was 6 -0 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Stohlman, Mr. Twomey and Ms. Williams. ADJOURN At 11:00 Ms. Cavicchi made a motion to adjourn. Mr. Dahl seconded the motion. The vote was 6 -0 Ms. Cavicchi Mr. Dahl Ms. D'Antona Mr. Stohlman Mr. Twomey and Ms. Williams. spectfully itted, < arry . Haru unian, Ph.D. Superintendent of Schools