HomeMy WebLinkAbout2013-10-30 Finance Committee MinutesOF R
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Town of Reading
Meeting Minutes
Board - Committee - Commission - Council:
Finance Committee
Date: 2013 -10 -30
Building: Pleasant Street Senior Center
Address: 49 Pleasant Street
Purpose: Financial Forum
Attendees: Members - Present:
Time: 7:30 PM
Location: Great Room
Chair Barry Berman, Vice Chair Mark Dockser, Karen Herrick, Varlarie Perry,
David Greenfield, Jeffrey Perkins, Paul McNiece and Paula Perry
Members - Not Present:
Others Present:
Town Manager Bob LeLacheur, Selectmen Ben Tafoya, Daniel Ensminger and
Marsie West; Superintendent of Schools John Doherty, Assistant Superintent
of Schools Mary DeLai, School Committee members Chuck Robinson, Hal
Croft and Jean Borawski; Community Services Director /Town Planner Jean
Delios, Police Chief James Cormier, Fire Chief Greg Burns, Library Director
Ruth Urell, Public Works Director Jeff Zager, DPW Business Administrator
Jane Kinsella, Library Trustees Alice Collins and Vicki Yablonsky
Minutes Respectfully Submitted By: Bob LeLacheur
Topics of Discussion:
Discussion /Action Items
Update on Final FY13 Financials - The Town Manager noted that we had a good year. The
FY13 budget was under $1.2 million. Reserves are at an all -time high at $9.1 million.
Projected FY15 Revenues - There are no big surprises in FY15. The local revenue is flat but
the wildcard is State aid. He budgeted 2.50% for State aid and revenues at an increase of
1.6 %.
Projected FY15 Accommodated Costs - Spending is less in capital and debt. His estimate
for health insurance is an increase of 7 %. As a side note, a Proposition 2.50% override
every 10 years is overdue.
Projected FY15 Operating Budget - The Town Manager noted that if we use $0 reserves in
FY15 then the reserves will be at 11 %. If we use $1 million in reserves that gives us an
operating budget of 2.1% and leaves us with 9.6% in reserves. Using $1.25 million gives
us an operating budget of 2.50% and leaves us with 9.3% in reserves. Using $1.5 million in
reserves gives us 3% operating budget and leaves us with 9% in reserves. Using $2 million
gives us an operating budget of 4% and leaves 8.4% in reserves.
Mr. Berman noted that we could put back some things that were cut, but we also have to
look forward to union negotiations.
Mr. Greenfield asked about the time of the health insurance renewal numbers and the Town
Manager indicated we usually get that around the end of January - beginning of February.
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If we have an unhappy surprise he would like to use free cash. Mr. Greenfield noted he
supports using $1.5 million to start.
Mr. Perkins noted he had concerns about using $1.50 million in reserves.
Ms. West noted that we are giving back each year and she would support going with $1.5
million in reserves. The Town Manager noted it seems like we are returning an extra $1
million each year and the revenues do not always come from the same place.
Mr. Robinson suggested using $1.5 million but if benefits come in high use $1.25 million.
Ms. Perry recommended using $1.25 as a starting point and any downside use free cash.
Mr. Greenfield indicated he wouldn't leave it open ended.
Ms. West indicated she is comfortable at $1.5 million because reserves are so high.
Mr. Berman asked the Town Manager about a 3% operating budget and the Town Manager
noted it is easier to add things than to cut. The question is whether we can keep squeezing
the same level of service at 2.50 %.
Mr. McNeice noted he is comfortable using $1.50 million.
A motion by Greenfield seconded by Dockser to use $1.50 million in free cash for
the FY15 budget was approved by a vote of 7 -1 -0 with Perkins opposed.
Library Update - Library Director Ruth Urell handed out website information where all of the
reports are available. She noted the Library Building Committee has been meeting. The
schedule is to do the design through the winter and move to the temp space in the spring.
She suggested people go to the website for more information.
Superintendent John Doherty noted that a working group has been formed to look at space
needs. They have come with 15 options and they are cutting those down and looking at the
feasibility of each. He also noted that the School Department applied for MSBA money for
Killam with no luck so the projects are in the Capital Plan.
Mr. Berman asked when they will have recommendations on space and Dr. Doherty
indicated within two months and they will not be doing a full day kindergarten next year.
A motion by West seconded by Ensminger for the Board of Selectmen to adiourn at
8:05 p.m. was approved by a vote of 3 -0 -0.
Town Meeting Warrant - Mr. LeLacheur reviewed Articles 10 and 11 with FINCOM, who had
deferred voting on Article 11 until the Selectmen had voted on Articles 10 and 11. Mr.
LeLacheur noted some changes from what is printed in the Warrant: H91 is $178,630 and
I91 is $480,430. This change allows a $20,000 FINCOM reserve fund transfer from last
summer to move from Accounting to Finance, as the rest of the department is proposed to
do. Also for the Enterprise Funds, the motion will read $750,000 from Water Reserves and
the other totals ($14,625 in Water and $9,611 in Sewer) will come from revenues /charges.
A motion by Berman seconded by Perkins to recommend Article 11 as amended
was approved by a vote of 8 -0 -0.
A motion by Berman seconded by Herrick to adiourn at 8:25Rm and root the Red
Sox to a World Series victory was approved by a vote of 8 -0 -0.
Respectfully submitted,
Secretary
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