HomeMy WebLinkAbout1944-06-22 Finance Committee Minutes Finance Committee Meeting
June 22, 1994
The meeting convened at 7:30 p.m. in the Selectmen's Meeting Room at 16
Lowell Street, Reading, MA. Present were Chairman Richard Coco; Vice
Chairman Fred Van Magness; FinCom Members Jim Keigley, Steve Blewitt,
Gerry MacDonald, Nate White, Carol Grimm, Bill Murphy and Liz Greene.
Chairman of the School Committee Robin D'Antona; School Committee
Members Matt Cummings, Tim Twoomey, Assistant Superintendent of
Schools Dennis Richards, Town Manager Peter Hechenbleikner and from the
Chronicle Maria Silvaggi.
On motion by Fred Van Magness seconded by Jim Keigley the committee
voted to approve the May 25, 1994 Minutes as amended. The motion was
approved with a vote of 7-0-2 with Bill Murphy and Nate White abstaining.
On motion by Fred Van Magness seconded by Jim Keigley the committee
voted to approve the May 25, 1994 short form Minutes. The motion was
approved with a vote of 7-0-1 with Nate White abstaining.
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On motion by Fred Van Magness seconded by Gerry MacDonald the
committee voted to approve the June 9, 1994 Minutes. The motion was
approved with a vote of 9-0-0.
Richard Coco wanted a sense of the committee as to whether or not they
should rejoin the Massachusetts Association of Finance Committee's. The
consensus of the committee was not to rejoin, because we are getting a
sufficient amount of information presently.
Chairman Richard Coco announced that tonights meeting would be the last
one for Liz Greene. Liz has served 3 terms with the Finance Committee
for a total of 9 years and will be greatly missed. The Chairman presented
Liz with a commemorative plate.
Liz Greene responded in serving her 9 years with the Finance Committee
she has learned a great deal and she wouldn't trade the experience for
anything.
On motion by Fred Van Magness seconded by Gerry MacDonald the
committee voted to begin executive session at 7:40 p.m. for the purpose of
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June 22, 1994
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a litigation discussion, with the intent to return to an open session at
approximately 8:00 p.m.
In response to a roll call vote the committee members voted as follows:
Richard Coco yes, Fred Van Magness yes, Gerry MacDonald yes, Nate White
yes, Jim Keigley yes, Steve Blewitt yes, Liz Greene yes, Carol Grimm yes
and Bill Murphy yes.
The committee adjourned executive session at approximately 7:58 p.m.
The Town Manager presented to FinCom a list of overexpended accounts
which needs a reserve fund transfer totaling $20,561 .
Fred Van Magness stated that whatever the town spent for police
assistance during the 350th Celebration was definitely worth it,
everything went flawlessly.
Bill Murphy questioned "if there was any money left from the 350th
Celebration, what would be done with it?" The Town Manager responded
the money would probably go to the preservation of celebration items or
go into a trust fund for the 400th Celebration. He also stated that it was
a private corporation and not under town government.
Carol Grimm questioned, "is it unusual to end the year with $435.26?"
The response was, yes it is more than the usual.
On motion by Liz Greene seconded by Gerry MacDonald the committee voted
to approve the reserve fund transfer in the amount of $20,561 .26 for the
described accounts listed. The motion was approved with a vote of 9-0-0.
The next item on the agenda is a presentation with the School Committee
to discuss 2 major areas, School Choice and the Early Retirement
Incentive Program.
Robin D'Antona stated that due to scheduling conflicts Dr. Munnelly was
unable to attend tonights meeting.
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Assistant Superintendent Dennis Richards explained to the Finance
Committee that the School Committee will not participate in School
Choice because educationally it wasn't the best thing and there could be a
shortfall of approximately $50,000. Also, after the Early Retirement
Incentive Program was accepted by Town Meeting the state changed the
formula and it had new actuarial calculations. Early on the state gave a
projection of about $48,000, but now with the changes the new projection
is $6,840.
The School Committee has put a hold on alot of expenditures totaling
$100,000 until this issue is resolved.
Fred Van Magness questioned, "why are you going to eliminate the
to,
electrician when you told us during the FY95 budget review that hiring the
electrician would increase the school budget?"
Robin D'Antona stated, "the notion of this hiring is a definitive
commitment and needs to be put on hold, we will have to put it on hold
until there is some level of funding."
Fred Van Magness questioned, "how many teachers have applied for the
Early Retirement Incentive Program?" The response was nine teachers
have applied.
According to her notes, Carol Grimm stated, "at the very beginning of the
budget discussion the School Committee's number they came in with was
$16,511 ,000.00 then the return number was $16,411,000.00, FinCom then
found a $20,000.00 error which brought it down to $16,390,000.00, then
with $50,000.00 with Early Retirement and $50,000.00 in maintenance
cuts added to a $100,000.00 in savings.
Richard Coco stated that he agreed with Carol's recollection in that
School Choice was taken off of the table entirely due to the fact that the
School Committee hadn't voted it.
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The Town Manager stated, "if they did get $50,000.00 back from School
Choice it would be added back to maintenance and that $20,000.00 -
$25,000.00 would be added back to professional development.
Robin D'Antona stated, "the School Committee needs to look and see where
the $50,000.00 will come from. They are already being criticized for its
reduction of building maintenance and we are at a critical state now and
we can't afford to keep cutting the maintenance budget."
The Town Manager stated, the state borrowed an actuary to provide
numbers and those were the numbers used by communities. Then in May
the state informed municipalities, there was a mistake. Although we have
adopted the law and people will go out of the system, it's conceivable we
won't be billed in FY95.
Matt Cummings stated, "everyone spent a lot of time reviewing this issue,
which included a lot of scenarios and we did conservative projections
based upon the information that was provided to us. We aren't the only
community going through this right now, we are in an embarrassing
position because we sold this to you and now we are upset with this
outcome. The reason why we are here is to alert you, we need to work
together to have a method for the shortfall."
Nate White stated, "we won't know until August 31 , 1994 who will get
accepted into this program, so it's a little premature to say that
$54,000.00 is the shortfall."
Fred Van Magness requested the School Committee to search out creative
ways to close the budget gap. "In any business there are opportunities
that arise which allow you to live within what you have," he stated.
Robin D'Antona stated, "I understand this as long as it doesn't negatively
affect the education policy."
Gerry MacDonald stated, "I won't vote on anything until there are accurate
figures from the state and the finance people from Town Hall approve it."
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Meanwhile, I expect the School Committee to make the budget work, you
owe that to the taxpayers."
"The School Committee has come to us on a good faith basis and are asking
us to be aware," stated Steve Blewitt.
Jim Keigley commented that he didn't like to see the School Committee
cut back on maintenance. Just look at the need for renovations at Parker
Middle School, we need to face the reality of an override.
Richard Coco stated, "the shortfall projection is $106,00.00 and he
suggested to the School Committee to look at the budget closely
throughout the next few weeks."
The School Committee agreed with this and will come back with firm
figures.
Liz Greene, voiced her opinion for the last time with the Finance
Committee regarding the subject of business practice in regards to the
public sector. "I think it's important to take what we can from business
and apply it to the public sector. The public sector is not a business and
the private sectors methods are not totally transferrable because there
are other factors that are involved of the work of the public sector and it
is important not to loose sight of that."
The next item on the agenda is the reorganization for Chairman and Vice-
Chairman for the Finance Committee for FY95.
Fred Van Magness nominated Richard Coco for Chairman of the Finance
Committee for his third term.
On motion by Fred Van Magness seconded by Gerry MacDonald the
Committee voted to nominate Richard Coco as Chairman of the Finance
Committee. The motion was approved with a vote of 8-0-0.
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Bill Murphy nominated Fred Van Magness for Vice Chairman for the Finance
Committee for FY95.
On motion by Bill Murphy seconded by Steve Blewitt the Committee voted
to nominate Fred Van Magness as Vice Chairman of the Finance Committee.
The motion was approved with a vote of 8-0-0.
The next meeting is scheduled for Wednesday, August 31, 1994 at 7:30 pm
for the discussion of the budget process for the FY96 budget.
Richard Coco stated that he would like Finance Committee members to
rotate in covering Selectmen and School Committee meetings. He also
requested an agenda for the Selectmens' meeting to be sent to him and
Fred Van Magness.
Bill Murphy proposed not to review anything unless they obtain a prior
copy.
On motion by Gerry MacDonald seconded by Bill Murphy the Committee
voted to adjourn the meeting at 9:55pm with a vote of 9-0-0.
Respe tfully submitted,
Lisa 2anni