HomeMy WebLinkAbout1994-10-26 Finance Committee Minutes 2F7EJYE0
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Finance Committee,Board of Selectmen, School Committee Meeting
October 26, 1994 SEP Z8
12 os PM 95
The meeting was convened at 7:30 p.m. at the Reading Municipal Light Department, 230 Ash
Street, Reading, Massachusetts.
Present from the Finance Committee were Chairman Dick Coco, Vice Chairman Fred Van
Magness, FinCom members Nathan White, Gerry Vitale, Jim Keigley, Carol Grimm (Steve
Blewitt came late).
Present from the School Committee were Chairman Tim Twomey, School Committee members
Matthew Cummings, Susan Cavicchi, Tom Stohlman, Robin D'Antona (George Shannon came
late). Also in attendance were Superintendent Bob Munnelly and Assistant Superintendent
Dennis Richards.
Present from the Board of Selectmen were Chairman Dan Ensminger, Vice Chairman Bill Burditt,
Secretary Sally Hoyt, Selectmen Camille Anthony and George Hines. Also present were Town
Manager Peter Hechenbleikner,Finance Director Beth Klepeis.
Labor Counsel Allan Drachman was present.
On motion by Nate White seconded by Carol Grimm the Finance Committee voted to go into
Executive Session for the purpose of discussing labor negotiations, to come back into Open
Session at approximately 9:00 p.m. On a role call vote all FinCom members present voted in the
affirmative and the motion was carried.
On motion by Stohlman seconded by Cummings the School Committee voted to go into
Executive Session for the purpose of discussion of labor negotiations not to come back into Open
Session. The motion was approved on a role call vote with all present voting in the affirmative.
The Board of Selectmen voted to go into Executive Session. On motion by Burditt seconded by
Anthony the Board of Selectmen voted to go into Executive Session for the purpose of discussion
of labor negotiations not to come back into Open Session. On a role call vote, all members
present voted in the affirmative and the motion was carried.
Respectfully submitted,
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Finance Committee Meeting
k; October 26, 1994 SEP 18 1105 Ph '9S
At 9:20 p.m., the Finance Committee reconvened in Open Session. Russ Graham and Roger
Sanstad from the School Building Committee, and architect David Finney were in attendance.
The Finance Committee reviewed Article 12 - the construction of a new Parker School. Beth
Klepeis reviewed the financing plan and how bond anticipation notes and bonds work. It was
noted that the Treasurer and the Board of Selectmen determine the final sale of bonds, and
Charman Richard Coco asked for a copy of the state statute. Carol Grimm noted that the
financing plans before the Finance Committee were examples of how this financing could work,
but was not a commitment to sell the bonds in exactly this manner. She suggested that the
Finance Director come back to the FinCom periodically and up date them on the status of bonds
prior to their sale.
Fred Van Magness noted that the five year financial plan discussed earlier this fall showed a $5.4
million accumulative deficit over the next five years, and the Capital Improvements financing plan
shows a$1.2 million deficit during that same period for a total of$6.6 million. He asked how the
Town was going to address these deficits and noted a number of areas where resources may be
available, or assumptions may be very conservative and that that gap could be closed. These
include the use of$2.1 - $2.5 million from the sale of real estate; additional new growth through
the redevelopment of the Pearl Street School site, the RMLD building site, and the Bear Hill site
that could yield $250,000 per year in additional tax revenues; employee benefits may be
overstated because of past history; state aid may be understated; and certain projects projected for
debt service could be deferred. Van Magness felt comfortable that it is within Town's control to
trim that projected deficit significantly.
On motion by Van Magness seconded by Grimm the Finance Committee recommended the
subject matter of Article 12 - reconstruction of the Parker Middle School - in the amount of
$13,928,000 by a vote of 7-0-0.
On motion by Grimm seconded by Van Magness the Board voted to recommend the subject
matter of Article 3 - amendment to the Capital Improvement Program to move the Parker Middle
School Project to FY95 and increase the amount to $13.928,000, by a vote of 7-0-0. Jim Keigley
noted that the Capital Improvement Advisory Subcommittee is a little bit nervous about the
financing, but we cannot afford not to do this project.
The Town Manager filled the Finance Committee in on the likely motions under Article 4 of the
Subsequent Town Meeting, the details were not yet available.
The Board went on to Article 4 of the Special Town Meeting, and voted as follows: on motion
by Grimm seconded by Keigley the Board voted to increase line B 1 by $709 by a vote of 7-0-0.
Finance Committee Meeting-October 26, 1994-page 2
On motion by Van Magness seconded by Vitale the Committee voted to recommend the increase
of line B9 Community Development expenses in the amount of$250 by a vote of 7-0-0.
On motion by Van Magness seconded by White the Committee voted to recommend the increase
of line C9 Finance Personal services in the amount of$2,500 by a vote of 7-0-0.
On motion by White seconded by Grimm the Committee voted to increase line El Health
Personal Services by the amount of $3,152 by a vote of 5-2-0. This is needed because the
Smoking Grant was reduced.
On motion by Van Magness seconded by Keigley the Committee voted to increase line E8
Recreation Personal Services in the amount of$1,515 by a vote of 7-0-0. These monies will be
reimbursed by the Recreation Revolving Fund.
On motion by Van Magness seconded by Grimm the Board voted to increase line E9 Recreation
Expenses by the amount of$500 by a vote of 7-0-0.
On motion by Van Magness seconded by Keigley the Committee voted to recommend the
increase of line E10 Human Services Personal Services by the amount of $2,419 by a vote of
7-0-0.
On motion by Grimm seconded by Keigley the Committee voted to recommend an increase in line
G5 Fire Personal Services by $79,873 in order to finance the Fire Fighters contract settlement.
This motion was approved by a vote of 7-0-0, and Fire Chief Donald Wood spoke on this issue.
On motion by Van Magness seconded by Grimm the Committee voted to recommend the increase
of line J2 Vocational School Assessment by the amount of$3,927 by a vote of 7-0-0. Finance
Director Beth Klepeis noted that if this was not done then the tax rate could not be set.
On motion by Van Magness seconded by Grimm the Committee voted to increase line KI Debt
Service for School bond anticipation notes by the amount of$55,381. This motion was approved
by a vote of 7-0-0.
Based on the above action and the funding of the new fire truck through the tax levy, there is
virtually no money available to put into a stabilization fund, and this issue was tabled.
The Finance Committee noted that its meetings will need to be posted for 7:00 prior to each of
the Town Meeting sessions. Their next regular meeting is on November 30, 1994.
On motion by Van Magness seconded by Grimm the Committee voted to transfer the amount of
$2,100 in the Reserve Fund to Health Expenses by a vote of 7-0-0. The confirming paper work
will be done later.
Finance Committee Meeting- October 26, 1994 - page 3
On motion by Keigley seconded by Grimm the Committee voted to adjourn at 10:50 p.m. by a
vote of 7-0-0.
Respectfully submitted,
1
Secretary NU