HomeMy WebLinkAbout2011-10-12 Finance Committee Minutes - Draft Finance Committee Meeting
k October 12, 2011 SEC EiV ED
Conference Room, Reading Town Hall Mc.TOWN CLERK(/�
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DRAFT Minutes RE,&,glNG, MA.
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The meeting convened at 7:40 p.m. at the Senior Center, 49 Pleasant Street, Reading, Massachusetts.
Present were Finance Committee members Marsie West,Marie Ferrari,Hal Torman,Paula Perry,Mark
Dockser, David Greenfield, Barry Berman, and John Arena; Selectmen Camille Anthony, Ben Tafoya
and James Bonazoli; School Committee members Chuck Robinson and Chris Caruso, Town Manager Peter
Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Superintendent of Schools John
Doherty, Mary Delai, Town Accountant Gail LaPointe, Fire Chief Greg Burns, Police Chief James Cormier,
Town Planner Jean Delios, Public Works Director Jeff Zager, Public Works Business Manager Jane
Kinsella, Library Director Ruth Urell, office Manager Paula Schena, Bill Brown, and Dick Curtis.
Review of Revenue Ideas from Instructional Motion - The Town Manager noted that the process for selling
land parcels and selling timber in the Town Forest has been started. Rental of existing spaces is ongoing and
the School Committee approved a policy for naming rights.
Moving at a slower pace are potential cell towers, advertising/billboards because there are no town owned
places in Reading that qualify. The Board of Selectmen decided to leave parking fees at the depot
unchanged. The possibility of offering ambulance to other towns will have to be studied.
_ Ideas that have been discarded include preferred parking at the high school; gas tax on the Town; raising
parking tickets/parking meters.
Music West asked the Selectmen about their decision not to increase parking rates at the depot. Camille
Anthony noted that James Bonazoli put forth a motion to raise puking/compost to $50 and then have a
separate stickerjust for the compost center at $25. The concern was they don't want to discourage the use of
public transportation.
Ben Tafoya noted that the depot stickers are only for residents, not out-of-towners who park in the
neighborhoods. When the MBTA raised fees they lost 28%of the parkers.
Marie Ferrari asked if on streets with parking with a sticker only if residents will be ticketed if they park in
front of their homes. Chief Cormier noted that people who have restricted parking in front of their home can
get a sticker for free,but it does not include the compost center.
School Committee member Chris Caruso indicated this is outside the purview of the Finance Committee and
suggested moving on.
Proiect Updates and Financial Tools for Economic Development — Town Planner Jean Delios updated the
Committee on the current status of developments throughout town. She noted that financial tools include
work smart permitting, simplifying regulations, public/private partnerships, and a request to increase the
threshold for site plan review that is going to Town Meeting. She also noted that an Alternate Building
Inspector has been hired for one day a week to help out the Building Inspector.
Barry Berman asked what will happen to the Calareso's old site. Jean Delius indicated she is encouraging a
high end use. Ben Tafoya noted that the Selectmen are pushing the state hard to signalize that intersection.
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The Town Manager noted that Pulte is putting up $50,000 for the intersection design and then MassDOT will
install the signal.
Jean Delios noted that MF Charles is focusing on the ground level rst and ultimately there will be
residential units upstairs.
Recap of Free Cash and Reserves — Town Accountant Gail LaPoin noted that the total reserve is
$7,079,462 which equals 9% of the total revenues. She noted that the Fit ance Committee policy is to keep
5%for reserves. FINCOM Reserve money was used for building safety at d that will be replenished at Town
Meeting.
Projected FY13 Revenues— Gail LaPointe noted that many revenues are 4 ver the estimates including excise
taxes, property taxes, refunds from prior years expenses, MIIA credits e ad FEMA reimbursement. There
was also an increase in meals tax and one time state aid.
Update on Capital— The Town Manager noted that we are receiving one ime revenues from Smart Growth,
one time state aid and reprogrammed debt. He proposes to use $1.25 in Ilion us follows: $50,000 into the
Housing Trust; $50,000 for a school building study; $50,000 for pedestriai improvements; $250,000 for road
improvements in neighborhoods and$55,000 for the West Street 100%deign.
Library Project- Ruth Urell noted that the Library is 116 years old. The ibrary Board reviewed their needs
and decided to update and add on to the current Library was best. Re ng is on the list for grant funding
and if it is granted it will need Town Meeting vote and a special election.
Killam Elementary School— Superintendent John Doherty and Mary Del,6 were present. Mary DeLai noted
that when we did the Green Repair that we would be required to be DA compliant if we spent over a
certain amount of money so we just replaced the roof at Killam. We Ed over $2 million in repairs and
improvements. We can't do any major repairs for three years unless m c do the ADA upgrades too. The
majority of the work is in the bathrooms with an estimated cost of$1.6 n illion with a 10% contingency. To
do everything would be $4.9 million. The main office alone would cost $1.3 million and MSBA might not
reimburse for that.
Preliminary FYI Accommodated Costs - Bob LeLachem noted that accommodated costs include health
insurance, Medicare, debt and capital and education. The operating budgets are 1% in the negative. The
revenues are not enough to cover accommodated costs. Mr. LeLachem noted there are three scenarios
including#1 —no use of reserves; #2—operating budget plus 1%; and#3 —target use of free cash.
Bob LeLacheur noted that if no reserves are used in FY13 we will have to cut 1.5%. If we use +1%
operating budgets then we run out of free cash in FY16. He prefers that free cash be used to address health
insurance cost because that is an unknown until the last minute and then the departments we cutting at the
last minute.
Camille Anthony noted she would prefer the expense discussion first. She is not ready to talk about free
cash right now.
Bob LeLacheur also noted that some level of free cash should be kept for the bond rating.
Chuck Robinson noted that every year money goes back to the Town. He feels we cannot keep dismantling
the budgets. He feels some free cash should be used to keep things going. Bob LeLacheur noted that due to
the line item discipline of the Town budget there will always be a surplus.
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Ben Tafoya noted we are not using free cash to increase our operations. He also noted that$1 million in free
cash is only 0.7%and he would rather do that.
Bary Berman asked about the level of new growth. The Town Manager noted that approximately 1%.
There was much discussion among the Finance Committee members regarding the amount of free cash to
use.
A motion by Berman seconded by Greenfield to use up to $1.5 million in free cash to create the FY13
budget was approved by a vote of 7-1-0 with Arena voting in the negative.
A motion by Bonazoli seconded by Tafoya that the Board of Selectmen adjourn their meeting at 10:20
p.m.was approved by a vote of 3-0-0.
Reserve Fund Transfer
Mr. LeLacheur explained the problem at the Police station with leakage getting into the electrical panel, and
that is was urgent to repair even before the upcoming November Town Meeting which could provide funds.
Chief Cormier explained several of the attempted remedies by Mr. Huggins from the facilities department,
and how none had completely fixed the problem. A memo from Mr. Huggins also gave further background,
and suggested that a $50,000 solution involving digging up underground cables and completely rebuilding
the connection above ground was the best permanent solution at this point.
On a motion by Mr. Dockser seconded by Mr. Torman, FINCOM voted 8-0-0 to approve a Reserve
Fund transfer in the amount of$50,000 to account#03923460-524306 School Department S390.
RMLD Agreement
Ms. West reviewed the long-tern payment agreement with RMLD that is set annually based on changes to a
local CPI. She reported that the Audit Committee had discussed this because a recent year had seen a
decrease in the CPI and therefore the payment declined slightly.
November Town Meeting Warrant
Mr. LeLacheur reviewed several items that FINCOM would be voting at their next meeting. Ms. West asked
to add Article 29 (a proposed Charter amendment about the role of the Board of Selectmen in the annual
budget process)to the list of material to review. Hr. Hechenbleikner asked that all write-ups be back to Town
Hall by noon on October 25`s.
On a motion by Mr. Berman seconded by Mr. Greenfield, FINCOM voted 8-0-0 to adjourn at 11:00
Respectfully submitted,
Recording Secretary
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