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HomeMy WebLinkAbout2016-06-29 Finance Committee MinutesOFgi uc '639P INCORQO�� Town of Reading Meeting Minutes Board - Committee - Commission - Council: Finance Committee Date: 2016-06-29 Time: 7:30 PM Building: Reading Town Hall Location: Address: 16 Lowell Street Session: Purpose: General Business Version: Attendees: Members - Present: RFCEI'4 CEE t!WN RK :;G1NG, MASS. 1011 jAN -9 P 4: 311, Chair Mark Dockser, Paul McNeice, Marc Moll, Vanessa Alvarado, Peter Lydecker, Paula Perry, David Neshat, Anne Landry Members - Not Present: Craig Merry Others Present: Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, Superintendent of Schools John Doherty, Administrative Assistant Caitlin Saunders, Selectmen Dan Ensminger, Jeanne Borawski (School Committee) Dave Doneski, Nancy Docktor Minutes Respectfully Submitted By: Topics of Discussion: Chair Mark Dockser called the meeting to order. Mr. McNeice Move to go into Executive Session to discuss strategy with respect to litigation and that the Chair declare that an open meeting may have a detrimental effect on the bargaining position of the body, and to reconvene in Open Session at approximately 8:15pm. Mr. Dockser so declares that an open meeting may have a detrimental effect on the bargaining position of the body The motion passed with a roll call vote as follows: Marc Moll — Yes Vanessa Alvarado — Yes Peter Lydecker — Yes Paula Perry — Yes David Neshat — Yes Anne Landry — Yes Paul McNeice — Yes Mark Dockser — Yes The Committee reconvened in open session at 8:40 PM. FY16 Reserve Fund Transfer Request There was a reserve fund transfer request for the committee to look at. The total requested amount is $65,500. There is a request from the Fire Department for $10,000 for salaries because of long term injuries. There is a $5,500 request from the Library for salary shortfall Page 1 1 Finance Committee Minutes - June 29, 2016 - Daae 2 due to a vacation buyout. The remaining $50,000 request is for the TLT account that is overdrawn. Ms. Perry asked how much vacation time can an employee roll-over and Mr. LeLacheur noted it depends on the person's contract, union or employee policy. Mr. McNeice made a motion to approve the transfer of $65,000 from reserve funds, second by Mr. Moll and aDDroved with an 8-0-0 vote. Proposed Fund Balance Policy Town Accountant Sharon Angstrom explained the auditors wanted a fund balance policy after GASB 54. The committee currently has a 5% policy but the auditors would like to see a document stating this and the committee may want to consider making it 7% which is what bond rating agencies typically look for. The Board of Selectmen have seen this but wanted to get FINCOMs approval. Mr. McNeice asked what happens if we fall below our target percentage and Ms. Angstrom said technically nothing. It is an internal policy to keep ourselves in check. Mr. Moll noted he like the idea of having a range like Dedham who has a 5-10% range. Mr. McNeice expressed concerns about capping ourselves off at a max. Ms. Angstrom explained the auditors just want us to put to paper how we execute our decisions. Mr. Neshat noted he liked the idea of a 7-10% range. Ms. Perry noted she liked the idea of a 5-10% range so the committee doesn't have to change their policy all the time. Ms. Landry expressed concerns for having a maximum. Mr. LeLacheur noted it is okay to go above that top number but the top number basically becomes your new target. Mr. Dockser expressed if the committee went with just doing a minimum number he likes 7%. Mr. Lydecker noted if we have an override we may want to revisit this. Review of Debt Sale Mr. LeLacheur noted the lighting project was cancelled. All our debt was issued between .4 - 1.6% which is amazing. We have a very good debt policy in place. The Town recently saved half a million dollars on the MWRA buy in. Review of Public Listening Sessions Mr. Dockser noted most people in Town aren't aware of things going on around Town and are not aware of how a budget works. Ms. Landry felt most of the information that was presented was the first time a lot of people were hearing it and learning the financial facts of the Town. She noted it may be difficult for people to vote for an override if they do not understand the budget. Page 1 2 Finance Committee Minutes - June 29, 2016 - page 3 Mr. Moll felt people wanted a bottom line. They wanted to know how much it was going to cost them and what they would be getting from it. He thinks it is important people are aware of our good bond rating so they know the Town is being run well. Ms. Alvarado noted commercial tax rate came up a lot and the concept seemed hard for people to grasp. She thinks people don't realize it does not generate more revenue. She also noted the chatter about building a new library when we need an override. Nancy Docktor expressed her concern for people ready for this vote in the fall. She noted too many people do not understand she doesn't think the vote will pass. Mr. LeLacheur noted he saw a lot of new faces in the crowd recently. Ms. Perry suggested the Board of Selectmen do a one page summary sheet about the split tax rate to educate people. Mr. LeLacheur commented that residents are going to want to know what they will get with an override and what they will lose without one. Mr. Dockser suggested having some meetings this summer and maybe sitting with other boards' chairs. Mr. Moll suggested having another financial forum this summer to answer questions and get more information out to the residents. He also noted putting a number on the override will get more people talking. Mr. LeLacheur suggested doing informal meetings over the summer due to busy schedules. Reorganization Mr. McNeice nominated Mr. Dockser for Chair, second by Ms. Perry and approved with an 8-0-0 vote. Ms. Perry nominated Mr. McNeice for Vice Chair, second by Mr. Moll and approved with an 8-0-0 vote. Mr. Lydecker noted the RMLD wanted to mention to FINCOM again the subject of solar panels on the high school roof. Also, they have a new rate if you sign up to use electricity during 'non peak' hours. Ms. Perry made a motion to accept the minutes from March 30th, 2016, second by Mr. Lydecker and approved with an 8-0-0 vote. Ms. Alvarado made a motion to adiourn at 10:37 PM, second by Mr. Neshat and approved with an 8-0-0 vote. A Respectfully sub 'tted, i Secretary i Page 1 3