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HomeMy WebLinkAbout2014-02-26 Finance Committee MinutesOF R r I^' •11i ,6�9alNCORPO� Town of Reading Meeting Minutes Board - Committee - Commission - Council: Finance Committee Date: 2014 -02 -26 Building: Reading Town Hall Address: 16 Lowell Street Purpose: General Business Attendees: Members - Present: ►DECEIVED 'OWN CLERK '1J ING, M SS. �lUMAR 12 A 941 Time: 7:30 PM Location: Conference Room Chairman Barry Berman, Vice Chairman Mark Dockser, David Greenfield, Karen Herrick, Paula Perry, Jeffrey Perkins, Paul McNeice, Craig Merry and PeterLydecker Members - Not Present: Others Present: Town Manager Bob LeLacheur, Assistant Town Manager Jean Delios, Town Accountant Sharon Angstrom, Public Works Director Jeff Zager, Business Administrator Jane Kinsella, John Halsey Minutes Respectfully Submitted By: Robert LeLacheur Topics of Discussion: Discussion /Action Items FY2015 Budget Overview - Chairman Barry Berman introduced the two new members Peter Lydecker and Craig Merry. He also suggested that members submit questions on the School Budget to John Doherty ahead of time. The Town Manager reviewed the budget process. He noted that this year's operating budget is the lowest in years. Revenues before free cash are at $80,653,678. An additional $1,500,000 from free cash gives net available revenues of $82,153,678. We will do transfers at the Annual Town Meeting to make up for snow and ice so there won't be much surplus. Mr. Greenfield asked at what point do we worry about regeneration of free cash and the Town Manager indicated the Committee can discuss that this summer. We will have free cash certification in September. Mr. Greenfield noted that they will have to watch how much is returned and whether it is going in a downward trend. Mr. Berman noted that the Schools are coming in with requests. Administrative Services - The Town Manager noted that the creation of Administrative Services worked out well. The budget is $2 plus million with an increase of 5.6% over last year. There are a lot of centralized functions and communications, technology and Town Clerk all fit together. Human Resources covers Town, Schools and RMLD. The Town Manager noted that there are three elections next year. The pay and classification is funded at $75,000. There will be $40,000 returning to free cash because the pay and class study won't be done in FY14. There is a change in the classification which is to downgrade one Business Administrator to a Business Analyst. We have hired the Page 1 1 Finance Committee Minutes - February 26, 2014 - page 2 former Town Accountant for one year for technology projects. The Munis upgrade alone is very intense. The Human Resource Administrator is retiring in June and it will be hard to replace her with one person. Staffing for technology is difficult because we don't get many kids with new technical skills working for the town. Mr. Berman asked if Gail LaPointe will give us a report at the end and the Town Manager indicated she will give us a replacement plan for capital and staffing. Finance - Town Accountant Sharon Angstrom noted that the reorganization joins Accounting, Assessing and Finance. The decrease in accounting wages is due the end of maternity leave. A clerk position previously shared with Accounting and Finance is now shown in just Accounting. There is a reduction in Assessing revaluation because it is not needed in FY15. Professional development for staff and Board members is increased. There is an increase in overtime for Finance for scanning. The Town Manager noted that he has reviewed the tentative agreement for regional assessing. The Board of Assessors is very happy with the results of regionalizing. The results are outstanding and Vinnie Santaniello does a great job. Public Works - Public Works Director Jeff Zager and Business Administrator Jane Kinsella were present. Jeff Zager noted that the DPW budget shows an increase of 2.6 %. Snow and ice did not increase because the state funded deficits in previous years. Trash and recycling is going great. Ninety eight percent of the residents are at three bags or less. In the future, food establishments will have to recycle organics. There are a lot of projects coming up so they will have some co -ops to cover the office. Jeff Zager noted that the $15K for gravel crushing at the Compost Center might not be needed so if not they will use it for pothole repair. There have been a number of personnel changes due to retirements. They have hired 17 people over five years. There are three major retirements this year and they have advertised for the Assistant Public Works Director. Mr. Berman asked how 17 new hires affect the budget and Jeff Zager indicated it decreased the wages because they were hired at a lower grade. Enterprise Funds - Jeff Zager noted that the MWRA projection is 4.2% for water and sewer expenses. Sewer expenses have decreased and storm water stays at the $40 flat fee. The Town Manager noted that the Board of Selectmen will set rates at approximately 2% for both water and sewer. He also noted that some of the water debt could be moved onto the tax rate as an exclusion, but it's really not viable because there would be some big winners and some big losers. Benefits, Debt and Capital - The Town Manager noted that the Retirement Board budget increased 4.50 %. The OPEB line increased 5.6 %. Health insurance enrollment has decreased slightly for the Town and increased slightly for the schools. Capital is funded at $2,030,000. Mr. Berman asked what will happen if the Library doesn't pass and the Town Manager indicated we would have to cut $450,000 out of capital. We could cut recreation and roads but then we will have lousy roads and will not be able to do turf field replacement. Mr. Berman asked if the Town has considered facility fees and John Halsey indicated the sports organizations are paying fees but the question is whether the money is going back into field maintenance. The Town Manager noted there is $2.338 million in the Capital Improvement Plan over many years for the Birch Meadow complex and roof replacements have sometimes been split over two fiscal years. The Voke School wants to do a 5 or 10 year capital plan and that Page 1 2 Finance Committee Minutes - February 26, 2014 - page 3 will cost us more at some point. The Voke School people want to avoid losing students to the Minuteman Voke School. Annual Town Meeting Warrant - The Town Manager reviewed the Warrant Articles. He noted that a report should be made to Town Meeting on the success of performance contracting. Mr. Berman asked about the role of the Finance Committee dispersing information on the Library project. The Town Manager noted there are severe restrictions between now and Town Meeting on what we as employees can say. This will be discussed next week when the Library comes in for their budget review. Mr. Berman suggested that the Finance Committee members get their School budget questions to the School Department ahead of time. A motion by Herrick seconded by Perry to adiourn the meeting at 9:50 a.m. was approved by a vote of 9 -0 -0. Respec Ily submitt d, � �w Secretary Page 1 3