HomeMy WebLinkAbout1994-01-12 Finance Committee Minutes lei+avev
Finance Committee Meeting I � �y
January 12, 1994
The meeting convened at 7:30 p.m. in the conference room at 16 Lowell
Street, Reading, MA. Present were Chairman Richard Coco; Vice Chairman
Fred Van Magness; FinCom members Jim Keigley, Gerry MacDonald, Nate
White, Carol Grimm; Town Manager Peter Hechenbleikner; Superintendent
of Schools Dr. Munnelly; Robin D'Antona from the School Committee, Maria
Silvaggi from the Chronicle and Ron Wood.
On motion by Fred Van Magness seconded by Gerry MacDonald the
committee voted to approve the November 15, 1993 Minutes. The motion
was approved with a vote of 5-0-1 with Carol Grimm abst ining.
On motion by Fred Van Magness seconded by o b Gerry MacDonald
the committee voted to approve the December 1, Minutes. The
motion was approved with corrections: change Carol Quinn to Carol
Grimm, and the fourth paragraph should read; The Chairman asked to
attend a town by-law committee meeting to discuss a by-law that
members from the Finance Committee are able to be members on various
town sub-committees. The motion was approved with a vote of 5-0-1
with Carol Grimm abstaining.
The Chairman opened the meeting by welcoming Carol Grimm to the
committee.
After the December 1 , 1993 meeting and discussion of FinCom's role as a
committee, Richard Coco requested that the town by-laws be sent to
every committee member to describe FinCom's role in the town charter.
The Town Manager asked for volunteers to join town sub-committees.
Carol Grimm volunteered for the Arts Center Task Force, Fred Van Magness
volunteered for the Reading Light Department's Building Use Task Force,
and Richard Coco volunteered for the Mineral Street Bridge Task Force.
The budget package will be completed and distributed on February 14,
1994. FinCom will continue to meet on February 17, 24, and 28. In March
the dates are set at the 3, 7, 10, 14, 17, and 21 , 1994.
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January 12, 1994
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Fred Van Magness suggested that the town meeting preview to the budget
scheduled for Saturday, April 9, 1994 be changed to Thursday, April 7,
1994 at 7:00 p.m.
The School Committee is proposing $380,000 compared to the $300,000
that has been spent in the past years for maintenance. There has been a
25% increase per pupil, for supplies, textbooks, graduation monies, etc.
Dr. Munnelly stated, "We cut that budget 5 years ago and now we're
destitute."
Electric Contractors are an expense for the school department which are
currently being used, therefore they are considering hiring an electrician
to cut costs.
Boilers are still a major problem and the school department is requesting
in their budget between $40,000 and $50,000 for repairs.
With the school enrollment increasing next year Dr. Munnelly stated that
there are 4 new teachers positions and 1 special education teacher
position added to the budget for FY95.
The school budget will increase overall 5% more than last year.
FinCom will meet with the School Committee on February 17, and 24,
1994 to review the School Departments' Budget.
Chairman Richard Coco left the meeting to attend a ByLaw Committee
meeting and turned the meeting over to Vice Chairman Fred Van Magness.
Debt Service payments have to be paid, but will be lower than anticipated
due to the lower interest rate of 2.7%.
On motion by Nate White seconded by Gerry MacDonald, the committee
voted to approve the general fund debt service in the amount of
$1,533,967.00. The motion was approved with a vote of 5-0-0.
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January 12,1994
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The Town Manager suggested to retain the current level of pension
spending so not to have problems of increase in 5 years.
On motion by Nate White seconded by Gerry MacDonald, the committee
voted to approve line item L-2 Non-Contributory Pensions in the amount of
$115,579.00. The motion was approved with a voted of 5-0-0.
Chairman Richard Coco returned to the meeting but left the gavel with
Fred Van Magness.
On motion by Nate White seconded by Gerry MacDonald, the committe voted
to approve line item L-1 Contributory Retirement in the amount of
$1,737,297.00. The motion was approved with a vote of 5-0-1 with
Richard Coco abstaining.
On motion by Gerry MacDonald seconded by Richard Coco, the committee
voted to approve line item L-3 Unemployment Benefits in the amount of
$20,000.00. The motion was approved with a vote of 6-0-0.
The Insurance Committee will meet on January 19, 1994 to make a
decision on whether or not to change the medical plan.
There is an increase in FY95 for Medicare and Social Security due to
additional town employees who were hired after 1986. If school teachers
retire early there will be a severe impact.
There is a deficit in Workers' Compensation. The Town Manager is going
over what is owed at this time.
On motion by Gerry MacDonald seconded by Nate White, the committee
voted to approve line item L-6 Workers' Compensation, in the amount of
$300,000.00. The motion was approved with a vote of 6-0-0.
On motion by Gerry MacDonald seconded by Jim Keigley, the committee
voted to approve line item L-7 Police/Fire Indemnification, in the amount
r
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January 12, 1994
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of $20,000. The motion was approved with a vote of 6-0-0.
The Finance Committee would like a report from the Capital Improvement
Advisory Sub-Committee on January 31 , 1994, with a final report due on
February 15, 1994.
Fred Van Magness questioned, "What are we looking for as annual
appropriations of bonded indebtness in a twenty year period for schools?"
Richard Coco thanked Mark Hube , Jim Keigley, Bill Murphy, Victor Petri,
and George Thompson for all their work in preparing the Capital
Improvement Advisory Sub-Committee Report.
The Finance Committee Meeting adjorned at 9:20 p.m.
Respectfully submitted,
Lisa Zanni
Secretary