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HomeMy WebLinkAbout2018-09-26 Finance Committee Minutes Town of Reading Meeting Minutes Fi=��;;'ibcU R E,,- 11, �y q` eoard - Committee-Commission - Council: 2111 OCT I I AM 10: 37 Finance Committee Date: 2018-09-26 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Session: Purpose: General Business Version: Attendees: Members - Present: Chair Eric Burkhart, Vice-Chair Mark Dockser, Daniel Dewar, Paula Perry, Shawn Brandt, Anne Landry Members - Not Present: - Marc Moll, Paul McNeice, Karen Herrick Others Present: Town Manager Bob LeLacheur, Select Board Member Barry Berman, Administrative Assistant Brendan Sweeney Minutes Respectfully Submitted By: Brendan Sweeney Topics of Discussion: Chair Eric Burkhart called the meeting to order at 7:30 PM. Mr. Burkhart briefly laid out the agenda for the evening, Identifying planning for October's Financial Forum as the key objective. Town Manager Bob LeLacheur went through the tentative schedule for that meeting, which will include an update on the closing out of the previous fiscal year, a free cash and reserve fund update, revenue projections for FY19, an examination of the town's accommodated costs, updates on public safety staffing levels, and a debt &capital discussion. Mr. Dockser recommended that a status update on the allocation of funds from the recent operational override be presented. Mr. LeLacheur then brought forth a memo that was discussed at the last Select Board meeting, which outlined 5 prominent capital projects for the town to tackle in the near future (School and Town Building Security, Elementary School Space Study, Community Center, Recreation/Athletic Repairs and Needs, and a new Department of Public Works Facility). It was mentioned by the committee that an analysis of how funding from the recent operational override plays into capital spending should be presented. Mr. Berman mentioned that it may be prudent to explain the concept of free cash at the forum, given the recent override, so that all citizens are on the same page as town officials. Ms. Perry outlined the Importance of explaining the "buffer" concept. Additionally, Mr. LeLacheur suggested that the Financial Forum may be a good time for the conversation on funding for the Stabilization Fund. Mr. Dockser wondered if FINCOM should have a definitive stance beforehand, and Mr. Burkhart recommended that the topic be tabled until FINCOM has had a chance to discuss it at a regular meeting. Going into further detail on the five potential capital projects, Mr. LeLacheur explained that a more definitive plan will be put forth at November Town Meeting. Mr. LeLacheur clarified Page 1 1 some of the funding numbers, but cautioned that the forecasting process can be complex due to the difficulty in predicting the level of state funding. In diving into detail on a few of the projects, Mr. LeLacheur noted that money was being moved from the Permanent Building Committee to the School Committee to kick-start the process, which is otherwise behind in comparison to the other four projects. The Community Center will need to be addressed due to space constraints at the current Pleasant Street Center, and this project may be an area where the Town can get creative and address multiple needs, such as a youth center or town function hall. Ms. Perry recommended that the town look at partnering with community organizations to address space needs as well. The turf field replacements are a high priority project due to the potentially unsafe conditions that patch-work replacements can cause, as well as the damage that harsh weather conditions have caused recently. In response to Ms. Landry's question, Mr. LeLacheur outlined that 5% of the operational override has been worked into debt & capital planning, and that the town goes into the planning process in advance of immediate need to avoid acquiring too much simultaneous debt service obligations. Mr. LeLacheur noted the capital plan numbers included in the FINCOM packet, and highlighted further specifics regarding those projects. Mr. Dockser added as well that the recent High School and Library projects will be coming off the books soon. Mr. LeLacheur mentioned how new growth in town could work favorably towards these numbers also. Mr. LeLacheur stressed how important a collective approach from the town will be in order to avoid a mentality of competing interests, and Mr. Berman highlighted how important it will be for all of the boards and committees to collaborate going forward in order to ensure this. Mr. LeLacheur then went into detail about the FEMA grant that the fire department was just awarded, which will help fund staffing levels in the department over a three year period. This was an area addressed by the override, however, and thus presents a scenario where extra funding exists (a good problem to have). Multiple ideas were Floated on how to move forward, with moving the funding to another program such as RCASA, and returning the money to the taxpayers suggested. Mr. LeLacheur explained the Intricacies of how such a maneuver by the town would affect the tax levy, and he mentioned that he would speak to the Assessor and then get back to the committee. When discussing final suggestions on the coming Financial Forum, Mr. Dockser noted how important It Is that citizens show up so that they can remain informed and up-to-date on the Issues affecting the town. On a motion by Mr. Dockser, seconded by Ms. Perry. the meeting minutes from Auaust a 2018 were approved by a vote of 6-0-0. On a motion by Mr. Dockser. seconded by Ms. Landry. the Finance Committee voted 6-0-0 to adiourn the meeting at 8:59 I.M. Chair Burkhart adjourned the meeting at 6:59 PM. Respectfully submitted, Secretary Page 1 2