Loading...
HomeMy WebLinkAbout2019-07-01 Finance Committee Minutes OF R Town of Reading Meeting Minutes RECEIVED TOWN CLERK READING, MA. Board - Committee - Commission - council: 2113 AUG - I AM 9: 03 Finance Committee Date: 2019-07-01 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Session: Open Session Purpose: General Business Version: Final Attendees: Members - Present: Chair Eric Burkhart, Daniel Dewar, Karen Herrick, Shawn Brandt, Andrew Mclauchlan Members - Not Present: Paula Perry, Edward Ross Others Present: Town Manager Bob LeLacheur, Sean Jacobs (newly appointed, not yet sworn in) Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: Chair Eric Burkhart called the meeting to order at 7:38pm. He welcomed new members Andrew Mclauchlan and Sean Jacobs and noted that new member Edward Ross was also appointed, but not present this evening. Mr. Burkhart addressed reorganization and said the Committee could either vote to reorganize this evening, or schedule a meeting for later in July when more members could be present and provide input. The Committee agreed to wait until the next meeting. FINCOM Reserve Fund Transfers for FY19 Mr. LeLacheur stated that the Library had a lot of retirements in FY19. As a result, there were several retirement buybacks for vacation and sick time. The Library is requesting $5,000 to be transferred from the FINCOM reserve fund to the Library wage account due to retirements. On a motion by Mr. Brandt, seconded by Ms. Herrick, the Finance Committee approved the transfer of$9,000 from the FINCOM Reserve Fund to the Library wages fund by a vote of 5-0-0. FY20 Meeting Schedule Mr. LeLacheur noted that while the State Aid figures he provided are not yet final, assessments were higher than the budgeted 2%, and state aid was lower than anticipated. Overall, there is an estimated $200,000 deficit that will need to be accounted for, and some budget adjustments will be needed at the November Town Meeting. Mr. Burkhart explained the sequence of meetings throughout the year for the new members and asked continuing members for their feedback on last year's schedule, and the proposed Page i 1 FY20 schedule. Mr. Brandt noted that the second financial forum is a week later than last year and asked if it would be possible to get a free cash estimate sooner. Mr. LeLacheur explained that he will ask Sharon Angstrom, Town Accountant, though she may only be able to provide an estimate because the state might not certify free cash before the financial forum. Mr. Brandt also suggested that the Committee have a discussion on what the right amount of free cash is, and whether an increased tax rate could be phased in and supplemented with free cash. Mr. Brandt recalled a discussion with the School Committee in which they noted that things that would promote long-term fiscal sustainability are cut in order to deliver a balanced budget for the year, and noted that it would be helpful to hear about those things. Ms. Herrick felt that the School Committee meetings were very long with the public input and asked if they might be able to address the financial topics first. Mr. LeLacheur stated that he would pass along the feedback. Mr. Burkhart suggested a more strategic approach where one FINCOM member attends those meetings, then reports back. Aside from the addition of a meeting in late July, there were no other changes to the proposed FY20 meeting schedule. Liaison Assignments Mr. Burkhart explained the roles of liaisons for the new members, and how the FINCOM members support Town Departments, Boards, and Committees from a financial perspective, attend those meetings whenever possible, and report back to the Finance Committee. Mr. Brandt suggested that the Committee receive a list of all the liaison assignments with their meeting times to help FINCOM members decide which departments and boards they are interested in working with, and If they are available during their meeting times. The Committee agreed that would be helpful, especially for the new members. Mr. LeLacheur stated that he would compile the list and provide It ahead of the next meeting. Future Meeting Topics Ms. Herrick stated that she has been attending RMLD meetings since January and suggested having representatives from RMLD attend a FINCOM Meeting and provide information on how RMLD operates. Mr. LeLacheur noted that the General Manager has offered to attend FINCOM Meetings and he will work with her as well to schedule RMLD for the November meeting. Mr. Burkhart proposed other topics including: reviewing FINCOM policies; and the unpredictability of budgeting for state aid, health care costs, and special education needs. He suggested a discussion on managing the volatility. Following a brief discussion on future pension contributions and health care costs, the Committee agreed that an overview of pension liabilities and OPEB at the next meeting would be beneficial. Minutes On a motion by Ms. Herrick, seconded by Mr. Brandt, the Finance Committee approved the meeting minutes of March 13, 2019 and April 25, 2019 by a vote of 5-0-0. On a motion by Mr. Brandt, seconded by Mr. Dewar, the Finance Committee voted to adjourn at 8:34pm. Page 1 2