Loading...
HomeMy WebLinkAbout2011-10-19 Finance Committee Minutes - Draft Finance Committee Meeting October 19, 2011 Conference Room, Reading Town Hall( VE 0 00Ni NE( L E R K0— DRAFT Minutes REAMNG, MA. The meeting convened at 7:30 PM in the Conference Room at Town Hall. 2019 JUN 10 PM 4: 35 FINCOM Members Present: Chair Music West, John Arena, Barry Berman, Mark Dockser, Marie Ferrari, Paula Perry and Hal Torman Members Absent: Vice Chair David Greenfield (one position is open). Also Present: Town Manager Peter Hechenbleikner and Assistant Town Manager/Finance Director Bob LeLacheur. There being a quorum the FINCOM meeting was called to order at 7:30 PM in order to review the Warrant for the upcoming November Town Meeting. Article 3 Mr. LeLacheur explained that items had to be formally placed on the capital plan before they could be considered by Town Meeting,but the funding of items was a separate decision. Mr. Arena asked if listing projects as debt exclusion implied any decision, and Mr. LeLacheur said it was merely an illustration of a funding method—as all items are required to have. On a motion by Ms Perry seconded by Mr. Dockser,FINCOM voted 7-0-0 to recommend the subiect material of Article 3. Mr. Dockser will provide the write-up and report this vote to Town Meeting. Article 4 Mr. LeLacheur explained that four projects sold debt that was surplus to the final needs of the projects. Three of the four were small amounts, while there was a$46k balance left in the Parker turf field project. Mr. Hechenbleikner noted that the only way to avoid this was to wait to sell permanent financing until the projects were done, and take on interest rate risk while waiting. Mr. LeLacheur noted that in MA there were formal maximum terms(years)that various debt could be sold for, and balances could be transfers to projects that had similar(or shorter) limits, and did not need to be related to the purpose of the debt. The unused balance will be put towards 100% design for the West Street project, so that it is `shovel-ready' when the state has grant funding available. On a motion by Mr. Torman seconded by Mr. Berman FINCOM voted 7-0-0 to recommend the subiect material of Article 4. Ms. Ferrari will provide the write-up and report this vote to Town Meeting. Article 8 Mr. LeLacheur reviewed Article 8 and mentioned it would be taken out of order ahead of parts (or all)of Article 5. Due to a water main bid (Haverhill St.)well below estimates, another project(Howard St.)is able to be advanced and qualify for a no-interest MWRA loan. However some costs for Howard St. must be paid for from the water reserves fund. This Article authorizes the Howard St. project to be included in the MWRA debt authorization for Haverhill St. On a motion by Mr. Dockser seconded by Mr. Torman FINCOM voted 7-0-0 to recommend the subject material of Article 8. Ms. Perry will provide the write-up and report this vote to Town Meeting. Article 5 Mr. LeLacheur reviewed the proposed FY12 budget changes to the general fund in two groups: one will proceed in any event, and the other relies on a building permit being issued to one of two current projects (Oaktree and Pulte Homes). The first group will be paid for by realizing an additional $250k in revenue, while the second group would be funded by taking $281 k from the 40R Stabilization Fund. Mr. Hechenbleikner explained that while demolition, footing& foundations permits have been issued and there is obvious progress on each 40R project,a building permit is the gating item for the funds belonging to 1 Reading. On the proposed expenses, Mr. Berman said this might be a good opportunity to review the status of the Veteran's assistance efforts by the town. On a motion by Mr. Torman seconded by Mr. Berman FINCOM voted 7-0-0 to recommend the general fund items paid for by the$250k increased revenues and $50k decrease in the cost for street lights. These items are$50k school facilities study $24k Birch Meadow carpeting: $luk Dish equipment; $109k for FINCOM Reserve fund; $7k for additional hours for Alternate Budden¢ Inspector• $100k for additional Veteran's benefits. On a motion by Mr. Berman seconded by Mr. Dockser, FINCOM voted 0-7-0 to not recommend the general fund items __id for b the Soar k use of the 40R Stabuizatiou Fund,including$50k for pedestrian improvements and $231k for road repairs. On a motion by Ms. Ferrari seconded by Mr. Berman FINCOM voted 7-0A to recommend the enterprise funds additional water main project for$250k to be funded by water reserves. Mr. Berman will provide the write-up and report these votes to Town Meeting. Article 6 Mr. LeLacheur reviewed two outstanding bills from the previous year, including Assessor's mileage and a refund to the Massachusetts Emergency Management Agency. This will require a 9/10 vote at Town Meeting. On a motion by Ms Ferrari seconded by Mr. Dockser, FINCOM voted 7-0-0 to recommend the subject matter of Article 6. Ms. Ferrari will provide the write-up and report these votes to Town Meeting. Article 7 Mr. LeLacheur reviewed authorized but unused debt amounts for past completed projects. In some cases the unused amounts were expected because grants or donations funded a portion, in some cases the projects came in below estimates prior to selling the debt These changes have no financial impact but are a good practice. On a motion by Mr. Arena seconded by Mr. Berman FINCOM voted 7-0-0 to recommend the subject matter of Article 7. Mr. Arena will provide the write-up and report these votes to Town Meeting. Article 9 Mr. Hechenbleikner reviewed the proposed transfer of$50k from the 40R Stabilization Fund to the Affordable Housing Trust Fund(AHTF), in order to begin to replenish it after$200k was voted to be used for the Oaktree project (if needed). He mentioned that the $200k may not be needed due to lower than anticipated construction bids. Mr. Arena asked if there was a time limit on the use of these funds and Mr. Hechenbleikner said that there was, in the 2-3 year range. Mr. Arena asked if the funds could be removed from the AHTF and put back into the 40R Fund, and Mr. Hechenbleikner said they could not—AHTF funds must be spent towards affordable housing in the community. He mentioned that Peter Sanborn had an informal inquiry as to funds being available. Ms. West asked if there was a formal policy in place yet for the distribution of these funds, and Mr. Hechenbleikner said there was not, but one is planned as soon as possible. Ms. West asked to confirm that the 40R funds were not yet available because a building permit has not been issued and Mr. Hechenbleikner confirmed that this was the case. Ms. West also mentioned that there was no immediate need for the $50k. She stated that due to the source of funds not being available coupled with the lack of a formal policy or immediate need, she would oppose this Article. On a motion by Mr. Dockser seconded by Mr. Berman FINCOM voted 0-7-0 to not recommend the subject matter of Article 9. Mr. Arena will provide the write-up and report these votes to Town Meeting. 2 Article 10 Mr. Hechenbleikner reviewed the request from the Commissioners of Trust Funds that due to the low interest-rate environment a change is needed to allow both principal and interest to be used for the annual costs of flowers for the Veteran's graves. This Article would become effective only with future donations beginning on January 1, 2012. On a motion by Mr. Berman seconded by Mr.Torman. FINCOM voted 7-0-0 to recommend the subject matter of Article 10. Ms. Perry will provide the write-up and report these votes to Town Meeting. Article 11 Mr. Hechenbleikner reviewed the creation of a new revolving fund to be funded with the sale of timber from the Town Forest, and proceeds to be used for planning and improvements to the Town Forest. Ms. West asked why this new fund was needed, and Mr. Hechenbleikner replied that a stewardship plan had been completed that suggested pruning and selling timber over a ten-year period, and that a master plan for the Town Forest was the next step. Mr. Torman asked why the $l0k limit and Mr. Hechenbleikner said that through experience that figure might need to be adjusted. FINCOM had some discussion about the scope of the use of funds. On a motion by Mr.Torman seconded by Ms. Perry. FINCOM voted 7-0-0 to recommend the subject matter of Article 11. Mr. Torman will provide the write-up and report these votes to Town Meeting. Article 12 Mr. Hechenbleikner reviewed proposed betterments near the Barrows school as requested by the neighborhood,to be paid by the neighborhood. He mentioned that for smaller projects the Town usually suggests that homeowners use sub-contractors for this type of granite curb work and pay them directly, but since this was a larger project the Town would do the work and be repaid through the betterments process. On a motion by Mr. Berman seconded by Mr. Dockser, FINCOM voted 7-0-0 to recommend the sub led matter of Article 12. Mr. Greenfield will provide the write-up and report these votes to Town Meeting. Articles 25-26-30 Mr. LeLachew reviewed these Articles that were put on the Warrant by FINCOM and therefore already voted,but there was one suggested update on Article 26. Ms. West reviewed the change that she preferred in that section 3.3.2.4 is stricken as not necessary, and the following sections be renumbered accordingly. She also reviewed the changes suggested by Town Counsel which were incorporated into the Warrant as closed by the Selectmen, as there were some conflicts between the Town Charter and Town Bylaws. The details are noted in the background for Article 26. On a motion by Mr. Dockser seconded by Ms. Perry, FINCOM voted 7-0-0 to recommend the subject matter of Article 26, including the above revisions Proposed by Ms.West to strike 3.3.2.4 and renumber as needed. Ms. West will provide the write-up and report these votes to Town Meeting. Article 29 Ms. West asked if FINCOM was interested in taking a vote on the proposed change to the role of the Selectmen in the budget process. Mr. Hechenbleikner explained that this change reflected past practice in that he has always consulted the Selectmen before creating the final Town Manager budget. Mr. Berman stated that he did not believe this was a FINCOM issue. On a motion by Mr. Berman seconded by Mr. Dockser.FINCOM voted 6-0-1 (Mr.Berman abstained) to recommend the subject matter of Article 29. Ms. West will provide the write-up and report these votes to Town Meeting. 3 Minutes On a motion by Ms.Perry seconded by Mr.Torman, FINCOM voted 5-0-0 to accept the minutes for July 25,2011 as written. On a motion by Ms.Ferrari seconded by Ms. Perry, FINCOM voted 6-0-0 to accept the minutes for September 14,2011 as written. Ms. West asked that FINCOM be posted at 7pm on the first night of Town Meeting to reconsider any of their positions in case additional information becomes available. On a motion by Mr. Berman seconded by Mr. Torman,FINCOM voted 7-0-0 to adjourn at 9:35 pm. Respectfully submitted, Recording Secretary 4