HomeMy WebLinkAbout2016-08-10 Finance Committee Minutesjj OFR
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Town of Reading
Meeting Minutes
9,
Board - Committee - Commission - Council:
Finance Committee
Date: 2016-08-10
Building: Reading Town Hall
Address: 16 Lowell Street
Purpose: General Business
Attendees: Members - Present:
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Time: 7:30 PM
Location: Conference Room
Session:
Version:
Chair Mark Dockser, Paul McNeice, Peter Lydecker, Marc Moll, Anne Landry,
Paula Perry, Eric Burkhart
Members - Not Present:
Vanessa Alvarado, David Neshat
Others Present:
Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom,
Selectmen Barry Berman, Administrative Assistant Caitlin Saunders
Minutes Respectfully Submitted By:
Topics of Discussion:
Chair Mark Dockser called the meeting to order.
Mr. Dockser introduced FINCOM's newest member Eric Burkhart.
Review Reserve Policy
Mr. Burkhart asked what percent other towns around us have. Mr. Dockser noted they are
similar to ours depending on their policy but all are over 5%. Ms. Angstrom suggested
striving for a minimum of 7% but having 5% be a cause for concern level.
Mr. Berman thought that some people may ask why we're increasing our reserve level when
were about to ask for an override. Ms. Angstrom commented it shows good business and we
are not raising it tremendously. Mr. McNeice noted this will show people we have a long
term plan in mind.
Mr. Moll explained he looks at them completely unrelated because it is FINCOM's job to look
at this whether we are having an override or not.
Ms. Angstrom noted the wording of the policy needs to be worded so it is clear our target is
7%.
A suggestion was made to simply change the 5% to 7%.
Mr. LeLacheur suggested wording that would imply if we dropped below 5% it would trigger
a formal review.
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Finance Committee Minutes - Auaust 10, 2016 - Daae 2
Mr. LeLacheur informed the group that the Selectmen called for Special Town Meeting last
night at their meeting. They will call for a Special Election soon. Town Counsel is currently
drawing up the senior tax relief articles.
Mr. LeLacheur explained the factors going into coming up with a number for the override.
There is the baseline operating budget amount plus additions like health insurance. We need
to be more prudent with the pension. We are doing better than most towns with OPEB but
we still could be doing better in general. Additions above the baseline can generally go
dollar for dollar. We're looking at a $6 - $9 Million dollar override. Six million would not
really be enough. The last override we had would be comparable to asking for $8.5 Million
today.
Residents need to know what they will get if they pay and what they will lose if they do not.
The schools cannot make any more cuts without cutting personnel now and the Town will be
in that position next year if the override does not go through.
Mr. Berman suggested telling the residents the reason the number is so high is because we
have not had an override in over 10 years and this is what is needed to carry us through.
Mr. LeLacheur suggested showing Reading's tax bills compared to our surrounding
communities. Reading's are lower.
Mr. Moll noted the Town did not get here from mismanagement. Our last override lasted
much longer than it should have.
Mr. McNeice made a motion to adiourn at 9:50 PM, second by Mr. Lvdecker and
aDDroved with a 7-0-0 vote.
Respectfully submitted,
Secretary
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