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HomeMy WebLinkAbout2017-06-28 Finance Committee MinutesTown of Reading Meeting Minutes iC "i'LERK. Board - Committee - Commission - Council: Finance Committee 1011 JUL 2l A Date: 2017-06-28 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Session: Purpose: General Business Version: Attendees: Members - Present: Chair Mark Dockser, Vice Chair Paul McNeice, Paula Perry, Anne Landry, Vanessa Alvarado, Marc Moll, Peter Lydecker, Eric Burkhart Members - Not Present: David Neshat Others Present: Administrative Assistant Brendan Sweeney, Finance Director/Town Accountant Sharon Angstrom, Fire Chief Greg Burns, Superintendent of Schools John Doherty, School Committee Member Elaine Webb, Director of Finance for the Reading Public Schools Gail Dowd, Selectmen: John Arena, Barry Berman, Dan Ensminger, Andrew Friedmann Minutes Respectfully Submitted By: Brendan Sweeney Topics of Discussion: The meeting convened at 7:30 PM in the Conference Room with the purpose of discussing the agenda items, including: FY17 Reserve Fund Transfers, FY19 Draft Budget Schedule, Finance Committee Reorganization, and Finance Committee Liaison assignments. Mr. Dockser called the joint meeting (both Finance Committee and Board of Selectmen) to order at 7:38 PM. Ms. Angstrom began the meeting by introducing the reasons behind the need for reserve fund transfers. She noted that the two pressing needs are for Chief Burns and the Fire Department in the amount of $150,000 and for $25,000 to pay for the school custodians. Ms. Angstrom noted that this combined $175,000 exceeds the $150,000 that is currently in the FY17 reserve fund. Because of this the additional $25,000 needed is to be transferred out of the health insurance premiums account. Mr. Dockser noted that we are two days from the end of the fiscal year, and asked Ms. Angstrom if there are any other transfer requests likely to come. Ms. Angstrom noted that there are no additional transfer requests at the moment; however, transfers for FY17 can be made up until July 15tH Mr. Dockser then called upon Chief Burns and asked him to walk the committee through his request for the additional $150,000. Chief Burns then began describing the current situation in the Fire Department. Recent retirements have been taking a toll on the department; so far three firefighters have retired in the last year, with one position still yet to be replaced. The two new firefighter candidates will begin the Massachusetts Firefighting Academy training in September, finishing in late November, and will be unable to contribute to the department until they finish this training. As this creates an understaffed department injuries during this time, which unfortunately have plagued the department as of late, Page 1 1 A present a magnified effect on the department. Mr. Dockser inquired whether injuries have been higher in the department this year as compared to others, to which Chief Burns noted that although they have trended higher than usual injuries are still very common in the field as the firefighters engage in dangerous activity, heavy lifting, and oftentimes work in areas with low visibility. Mr. Dockser then noted how it is counterintuitive if the town cuts one firefighter and ends up paying for it in overtime, to which Chief Burns agreed and noted how they had increased the overtime account due to the expectations that came with being understaffed, however, one cannot anticipate injury. Chief Burns also noted that the retirements came on short notice, which only increased the magnitude of problems created from being understaffed. (At this point in the meeting, approximately 7:45 PM, Paul McNeice arrived to the meeting). Mr. Arena then introduced the discussion of what overtime would look like for a 10 man staffed department instead of 11. Chief Burns noted that there is minimal flexibility with overtime if the department is understaffed due to vacations and other unforeseen circumstances, to which Mr. Arena eluded to the potential need to factor in these concerns with the fire department in any budget override discussions. Mr. Moll, in trying to inquire about why the department had such a high injury rate this past year, asked whether or not increasing age of the firefighters was a factor. Chief Burns stated that injuries can be different, with some being freak accidents and others being medical, such as sickness, and thus age may not play a factor. Because of this it is tough to look into. Mr. Friedmann then asked about the plan for how to deal with the recent retirements in the fire department. Chief Burns noted the two recent hires to fill two-thirds of the retirements. However, another firefighter is expected to retire in November, leaving two vacancies that need to be addressed. Mr. McNeice noted how even if we add the additional two firefighters to make it to the full level of staffing we will never be able to eliminate the need for overtime. He then posed the question: if we were able to get to that full level of staffing, what would overtime look like? Chief Burns stated that at his ideal staffing level, in which 12 firefighters could be dispersed throughout four different scheduled groups, around $300,000 would be needed for overtime. Chief Burns continued by noting how overtime not only covers additional shift payments, but also covers paramedic training and other departmental training needs. Mr. Berman noted how at the current run rate the problem will continue into the next fiscal year, which Chief Burns confirmed. Chief Burns did note that two of the firefighters currently on medical leave will return soon, one of them is expected to be back in September. Ms. Perry asked whether or not in-house training would cut down on overtime, to which Chief Burns responded that most training requires full engagement and thus cannot take place when a firefighter is on -duty. Ms. Perry followed up from her previous question by asking what the usual delay is between the start of training for a firefighter and when they are fully up -to -speed within the department. Chief Burns stated that training usually takes around a quarter of a year, however, departmental training brings the entire timeframe closer to six months. Ms. Webb clarified whether the requested $141,000 was needed to cover the totality of the overtime expenses, to which Chief Burns noted that the $141,000 was needed in addition to the already budgeted amount for overtime. Chief Burns also spoke of how it is tough to budget for overtime expenses as they fluctuate based on injuries and retirements that are tough to anticipate. Page 1 2 Mr. Burkhart then inquired about the regulations set on overtime in the fire department. Chief Burns stated that the department does have overtime regulations, such as an hour limit and a mandatory rest period between shifts. Mr. Arena identified how in the past the Selectmen (and Finance Committee) took a risk in FY17 by trimming the amount budgeted for overtime to lower levels than it had been in previous years. Mr. McNeice noted the tough transition spot the Fire Department is in, stating that the best course of action would be to transfer the money in order to solve the short term problem while also planning ahead so that an issue like this does not happen again. Mr. Dockser then called upon Mr. Doherty to speak about the requested $25,000 for the schools' custodial staff. In explaining the situation Mr. Doherty spoke of how the schools' custodial staff is currently under the school's collective bargaining agreement (CBA). As of right now the town is working to negotiate the CBA for both the school and town custodians. Currently the schools' custodial CBA includes a sunset clause for longevity, in which those hired before 1995 were grandfathered into the CBA with regards to the longevity payouts that had been previously agreed upon. To clarify what these longevity payouts were, at the request of Ms. Perry, Mr. Doherty explained that under this agreement bonus payments were given to custodial employees when they hit milestones, such as 10, 20, 30 years of employment. These bonus payments were separate from retirement. The $25,000 comes into play for an agreed buyout in which the custodial union will drop longevity payouts from the new CBA for that agreed upon price. This would be a smart maneuver as it would reduce the financial liabilities that come with longevity payouts. Additionally Ms. Dowd noted how the longevity payouts could potentially drag out to cost more than the $25,000 required for the buyout. Mr. Doherty stated that as a buyout was not anticipated going into the fiscal year a reserve fund transfer would be required to cover the cost. Ms. Perry asked if there are any other longevity -type provisions in other CBA's, which Mr. Doherty responded that there are, but they all have sunset clauses. Mr. Doherty continued that we will not be buying the other ones out, but in this case the $25,000 for the buyout was a reasonable amount. On a motion by Mr. Ensminaer, seconded by Mr. Arena, the Board of Selectmen voted to approve the transfer of $25.000 from health insurance premiums account 19145574-574000 to account 12203511-515000 to cover the unforeseen or extraordinary expense of a Fire Department overtime shortfall by a vote of 4-0-0. Ms. Perry then asked Ms. Angstrom why this transfer came from the health insurance premiums account. Ms. Angstrom explained how the health insurance premiums account has a surplus, due to a regular budget buffer in benefits spending, that otherwise would have closed to the free cash account. Had the health insurance premiums account not been an option for a transfer the only other availability would have been to draw from the free cash fund, which would have had to take place during Town Meeting. On a motion by Mr. McNeice seconded by Ms. Perry, the Finance Committee voted to approve the transfer of $25,000 from health insurance premiums account 19145574-574000 to account 12203511-515000 to cover the unforeseen or extraordinary expense of a Fire Department overtime shortfall by a vote of 7-0-0. On a motion by Mr. McNeice seconded by Mr. Moll, the Finance Committee voted to approve the transfer of $125.000 from the Reserve Fund to account 12203511- 515000 to cover the unforeseen or extraordinary expense of a Fire Department overtime shortfall by a vote of 7-0-0. On a motion by Mr. McNeice seconded by Ms. Alvarado, the Finance Committee voted to approve the transfer of $25.000 from the Reserve Fund to account Page 1 3 03403411-514302 to cover the unforeseen or extraordinary expense of a custodian longevity buyout by a vote of 7-0-0. Mr. Dockser then moved the topic of conversation to the draft of the FY19 budget schedule. In commenting on that draft Mr. Arena noted that the required data will be in the public's hands sooner through this revised schedule. Ms. Webb additionally stated that the timeline is an improvement from years past as it will give way for discussion of both a baseline budget as well as an enhanced budget if necessary, giving time for careful consideration of a budget override. As the budget schedule was being discussed the conversation was centered on which dates make the most sense for voting deadlines of the various boards. Points that were brought up included whether or not setting a budget too early would only allow for a vague summarization of anticipated expenses, which dates make sense for discussion of a potential budget override, and where the Board of Selectmen will play into the timeline. Ms. Alvarado brought up the point that the Finance Committee and the Board of Selectmen should attend the School Committee Budget Meetings in January in order to facilitate a cohesive approach between the Schools, the Finance Committee, and the Board of Selectmen on what to expect. Mr. Berman also noted that the Board of Selectmen can vote on the budget once they receive the Town Manager's budget, scheduled to be submitted on February 5th Mr. Dockser stated the key importance of joint budget meetings, as they allow for more feedback from the public. In order to facilitate more of a public dialogue Ms. Alvarado recommended that the Finance Committee hold public forums for questions and comments at the end of January. Mr. Moll raised the concern that the audience will leave meetings if the committee tries to cram too much into each of these meetings and they end up becoming prolonged. (Anne Landry entered the meeting at this point, at approximately 8:55 PM). Mr. Friedmann noted that in order for the budget message to truly reach the public the budget numbers should start being disseminated in February. Ms. Alvarado stated that posting highlights of the discussed budget proposals on the town website would be a great way to aid in this process. Mr. Berman additionally put forth the idea of a public survey to gauge the public's response as well as identify particular concerns. On a motion by Mr. Ensminger, seconded by Mr. Arena, the Board of Selectmen voted 4-0-0 to adjourn the Selectmen portion of the ioint meeting at 9:17 PM. Mr. Dockser then turned the discussion to finding a new chair for the Finance Committee. Mr. Dockser himself stated that he has been in the position of chair for three terms and feels it best to pass the role along to someone new. Initially most members were reluctant to volunteer for the role, citing the worry of time commitment as their full time jobs were demanding most of their time already. Ms. Alvarado asked Mr. Dockser what the chair would expect to see for a time commitment, to which he responded that the commitment was hours not days. Additionally Mr. Dockser noted that the role primarily consisted of leading and organizing, with the heaviest commitment coming during budget time. Eventually Mr. Lydecker volunteered to take on the responsibility, with Ms. Perry agreeing to take on the role of vice -chair. Ms Perry nominated Peter Lydecker for the position of Chair of the Finance Committee seconded by Mr. Dockser. On a vote of 8-0-0 Peter Lydecker was appointed as Chair of the Finance Committee for the coming fiscal year. Mr. McNeice nominated Paula Perry for the position of Vice -Chair of the Finance Committee, seconded by Mr. Moll On a vote of 8-0-0 Paula Perry was appointed as Vice -Chair of the Finance Committee for the coming fiscal year. Page 1 4 Mr. Dockser then moved the conversation to the assignment of liaisons to the various boards, committees, and town departments. Most of the liaison assignments remained the same, with a few changes due to trading of responsibilities between members. The Finance Committee then agreed on the need to meet again in July, deciding on the tentative date of July 26th at 7:30 PM (subject to approval). Potential agenda items discussed for that meeting were the role of various revolving funds in the budget, the transfer of free cash into a stabilization fund, the location of capital and the 5% policy, the town's debt policy, the discussion of town pensions, and the Reading Municipal Light Department. On a motion by Mr. McNeice seconded by Ms. Alvarado, the Finance Committee voted 8-0-0 to adiourn the meeting at 10:10 PM. The meeting was adjourned by Mr. Dockser at 10:10 PM. Respectfully Submitted, Secretary Page 1 5