HomeMy WebLinkAbout2011-03-30 Finance Committee Minutes *wi
Finance Committee Meeting RECEIVED
March 30 2011 TOWN CLERK
READING, MA.
Conference Room, Reading Town Hall
2919 FEB 21 PM 4. 33
The meeting convened at 7:00 PM in the Conference Room at Town Hall.
FINCOM Members Present: Chair Marsie West,Vice Chair David Greenfield,Hal Torman,Mark
Dockser, Bryan Walsh, Kevin Leyne,Francis Fardy,Barry Berman and Paula Perry.
Members Absent:None.
Also Present: Assistant Town Manager/Finance Director Bob LeLacheur, Superintendant of Schools John
Doherty,Director of Finance and Operations Mary DeLai, School Committee Chair Chris Caruso,Vice
Chair Chuck Robinson and member Karen Janowski,Town Engineer George Zambowas,Town Meeting
member John Arena,Kara Deyermenjian(Reading Patch),and recording secretary Abby McCabe.
There being a quorum the FINCOM meeting was called to order at 7:06 PM.
The FINCOM Chair explained that this was the final meeting in the budget process for the Committee to
vote on the remaining budget items and warrant articles.The Superintendant and School Committee are here
tonight to update the Committee on the vocational school application process.
Budeet:
Dr. Doherty explained that there are freshmen students interested in attending the Minuteman Regional
Vocational school next year for majors not offered by the Northeast Regional Vocational school. Four
students will most likely be the maximum number of new students enrolled next year but there is an
application process and the students must be accepted to enroll. Transportation to the regional schools may
need to be paid for by the Town.Mr.LeLacheur explained that the Northeast Regional's budget was recently
submitted to the Town Manager and it is lower than what we had expected.
On a motion by Mr. Walsh, seconded by Mr. Dockser,FINCOM recommended$369.343 in line E99 of
the FY12 budget for Vocational Education by a vote of 9-0-0.
On a motion by Mr.Torman, seconded by Mr. Berman,FINCOM recommended $35,902,307 in line
U99 of the FY12 budget for School Department and Facilities by a vote of 9-0-0.
Discussion on line U99 School Department&Facilities:
The School Committee explained that 2.4 teachers would be lost without the$103,000 that was originally
included in the School Committee's approved budget but is not included in the Town Manager's budget.Mr.
LeLacheur explained that returning money to the school department would be a staff recommendation if
State Aid comes in higher than expected.FINCOM discussed the possibility of using free-cash to cover the
difference but Mr.LeLacheur explained that FINCOM can only spend FINCOM's reserve funds and Town
Meeting needs to approve the use of the Town's free-cash reserves. Mr.LeLacheur recommended not using
free-cash until after the State Aid figures are finalized.Moving Town Meeting to a date later in the spring
wouldn't necessarily make much of a difference because the State does not always have a budget by June
and there are often time sensitive items on the April Annual Town Meeting Warrant.
On a motion by Mr. Levne,seconded by Mr.Torman,FINCOM recommended $699,877 in line V99
for Town Facilities in the FY12 budget by a vote of 9-0-0.
Mr.LeLacheur explained that the M WRA water and sewer charges have increased as shown on page 5 of the
meeting handout. The assumptions for the FY13—FY16 budgets are that wages are up 2%and expenses up
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8%which is higher than usual while the net water fund will likely increase by 3%.The $40 storm water fee
for a single family house will likely stay at the$40 until the two river drainage projects begin.Mr.
LeLacheur also noted that the street sweeper purchase was moved from the FY12 budget to the FYI l budget
because the Town can get a good deal if purchased this fiscal year.
On a motion by Mr. Dockser,seconded by Mr.Fardv.FINCOM recommended $377,826 in line Y99
for the Storm Water Fund by a vote of 9-0-0.
Water Enterprise Fund:
Mr. LeLacheur explained that the Selectmen haven't set the water rates yet and will not do this until after
Town Meeting in May.
On a motion by Mr.Torman seconded by Mr.Walsh,FINCOM recommended $5,295.343 in line W99
for the Water Enterprise Fund by a vote of 9-0-0.
On a motion by Mr. Greenfield seconded by Mr. Berman,FINCOM recommended $5.147,890 in line
X99 for the Sewer Water Enterprise Fund by a vote of 9-0-0.
Warrant Articles:
Mr. Fardy volunteered to write the report for Article 4 that was voted on during Monday's meeting.
Article 5:
Mr. LeLacheur reviewed the General Fund Wages and Expenses on page 18 of the handout and explained
that Article 5 pertains to FYI l budget amendments such as the street sweeper that was taken out of the initial
FY12 budget to be purchased this fiscal year for a lower price.There is a decrease in the school department's
energy costs because of the performance contracting.Mr. LeLacheur noted that public safety(fire)wages are
often unpredictable and Mr. Greenfield suggested reviewing overtime and regular pay after Town Meeting is
over.
On a motion by Mr.Berman,seconded by Mr.Dockser,FINCOM voted to recommend Article 5 as
written by a vote of 9-0-0. Ms. Perry to prepare the report.
Article to:
The FINCOM reviewed the list of surplus vehicles that are scheduled to be disposed of in FY12. One
member asked why the 2007 Crown Victoria was on the list and Mr. LeLacheur expected it was because of
high mileage.
On a motion by Mr. Torman,seconded by Mr. Walsh,FINCOM voted to recommend Article 10 as
written by a vote of 9-0-0.Mr. Leyne to prepare the report.
Article 11:
The Committee reviewed the Capital Improvement Program detailed on page 23 of the meeting handout.The
total capital budget for FY12 is$948,000.
On a motion by Mr. Fardv,seconded by Mr. Dockser.FINCOM voted to recommend the Capital
Improvements Program as presented in Article 11 by a vote of 9-0-0. Mr. Torman to prepare the report.
Article 15:
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Ms.DeLai explained that Article 15 authorizes the School Committee to enter into school bus transportation
contracts that would allow extensions of up to 5 years as opposed to the current contracts of 3 years.They
believe this would allow more competitive bids to be received. In response to a question about how many
proposals are typically received Ms. DeLai responded that the School Committee usually gets about 2 bids
but believes the option of an additional 2 year extension will attract more companies.
On a motion by Mr.Greenfield seconded by Mr.Dockser.FINCOM voted to recommend Article 15
as written by a vote of 9-0-0.Mr. Berman to prepare the report.
Article 16:
Ms. DeLai explained that this Article authorizes additional debt under the Massachusetts School Building
Authority's(MSBA)"Green Repair"program that was approved by Subsequent Town Meeting in November
2010. In November,Town Meeting approved an amount not to exceed$2,000,000 for roof replacement for
Killam Elementary and new windows at Killam and Birch Meadow Elementary schools and now the
projected cost has increased. The increased cost accounts for an upgrade from an EPDM to a PVC roofing
system and hazardous materials abatement costs.The roof upgrade also provides for an increased warranty
from 15 to 25 years. Mr.Torman asked when the construction is expected to begin and Ms. DeLai responded
that work can't begin until the appropriations are approved by Town Meeting.The Committee discussed the
durability of the PVC roof and Ms. DeLai felt it would have a longer life span than the EPDM.Ms. DeLai
explained that 47%of the cost is eligible for reimbursement form the MSBA.
On a motion by Mr. Walsh seconded by Mr.Greenfield.FINCOM voted to recommend Article 16 as
written by a vote of 9-0-0. Mr. Greenfield to prepare the report.
Article 24:
Article 24 is to allocate money from Reading's Affordable Housing Trust Fund to subsidize the affordable
housing units planned for 30 Haven Street.A memo from the Town Planner is provided in the meeting
packet further explaining Oaktree Development's request for the funds. Several members of FINCOM did
not feel they had enough information to vote on this Article.Mr.Greenfield was not supportive of spending
the fund this way. FINCOM wanted to know more details about why Oaktree needed this money and have
assurances that these funds will be protected. Mr.LeLacheur explained that a detailed project prn-forma
from the developer is expected by the Town Manager tomorrow morning. An email from a resident was also
included in the packet suggesting certain language that could be included that would require the developer to
repay funds if the project is later converted to condos.Town Meeting member John Arena also expressed
concern about making special arrangements for the developer.
On a motion by Mr.Berman,seconded by Mr.Dockser.FINCOM voted 0-1-8(Mr. Greenfield
opposed) for Article 24 as written. Mr. Berman to prepare the report.
Article 29:
On a motion by Mr.Berman,seconded by Mr.Greenfield,FINCOM approved Article 29 as written
by a vote of 9-0-0. Mr. Walsh to prepare the report.
Update on Meals Tax:
Mr.LeLacheur informed the Committee that the payment from the local meals tax covering December,
January and February came in at$72,000 which was double the first quarter payment from October and
November.The Town projected$150,000 annually in the FYI budget but at this rate the Town is on track
for$300,000 for the year. FINCOM suggested a press release for this news.
Instructional Motion:
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Page 33 of the meeting handout is an instructional motion drafted by Mr. Dockser from the Finance
Committee for Annual Town Meeting.The motion asks the Board of Selectmen,Town Manager and School
Committee to look into specific revenue enhancement ideas recommended during the September 2010
financial forums.The motion includes only the revenue suggestions and not the expenses.Mr. Dockser will
make changes to the motion to ask for a specific deadline instead of the monthly updates.The Committee
will further review this at the April 13th regularly schedule F WCOM meeting.
Key Points for FY12 Budeet Messaee:
The Committee reviewed the draft budget message prepared by a few members of the FINCOM. Mr.Arena
suggested making the message more quantitative.It was also suggested to include the instructional motion
and a summary of projections for FY13 that might need to experience cuts to the schools, library and public
safety.Mr.LeLacheur recommended showing a level funded budget over time and the impacts that it will
have.
Auuroval of Minutes:
On a motion by Mr. Torman seconded by Mr. Walsh FINCOM voted to aoorove the minutes from
March 28 2011 as amended by a vote of 8-0-1 (Mr. Berman abstained).
On a motion by Ms Perry,seconded by Mr. Walsh,FINCOM voted to approve the minutes from
February 9'2011 as written by a vote of 9-0-0.
On a motion by Mr. Berman seconded by Mr. Walsh,FINCOM voted to approve the minutes from
March 2 2011 as amended by a vote of 7-0-2 (Mr.Dockser and Mr. Fardv abstained).
On a motion by Mr. Berman seconded by Mr.Turman,FINCOM voted to approve the minutes from
March 9" 2011 as written by a vote of 6-0-3 (Mr. Levne.Mr. Dockser,Mr.Walsh abstained).
Ona motion by Mr. Leone.seconded b Mr.Dockser,FINCOM voted to aoorove the minutes from
March 16.,2011 as amended by a vote of 9-0-0.
On a motion by Ms Perry seconded by Mr.Fardv.FINCOM voted to approve the minutes from
March 23 2011 as written by a vote of 7-0-2(Mr. Berman & Mr. Fardv abstained).
On a motion by Mr. Berman seconded Mr Leyne FINCOM voted 9-0-0 to adiourn at 10:17 PM.
Respectfully submitted,
Recording Secretary
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