HomeMy WebLinkAbout1996-11-25 Finance Committee Minutes 4 Finance Committee -
November 25, 1996
The meeting came to order at 7:30 pm in the Reading Municipal Light Department's Ash Street building.
In attendance were Steve Blewitt, Jim Keigley, Carol Grimm, Tom Green, Rocco Nenarella, Gerry
MacDonald,Dick McDonald,and Nate White from the Finance Committee. Also present were members of
the Board of Selectmen,RMLD Board of Commissioners,staff of the RMLD,and Peter 1.Hechenbleikner.
Len Rucker made a presentation to the Finance Conarnivee, Board of Selectmen, and RMLD Board of
Commissioners regarding deregulation of the electric utility industry.
After Len Rucker's presentation,the Finance Committee continued its meeting in a separate room.
Minutes from the October 9, 1996 meeting, as amended, were approved 7-0-1. Jim Keigley made the
motion and Gerry MacDonald seconded the motion.
Minutes from the October 22, 1996 meeting were approved 6-0-2. Gerry MacDonald made the motion and
Jim Keigley seconded the motion.
Minutes from the November 7, 1996 meeting were approved 7-0-1. Gerry MacDonald made the motion
and Dick McDonald seconded the motion.
Dick McDonald reported that the next meeting of the Reading Business Park Task Force is scheduled for
December 12, 1996.
l Steve Blewitt discussed a spreadsheet that he prepared showing Fiscal Year 1998 Revenue and Expense
estimates. The spreadsheet,which used a number of assumptions(including a$2 million increase in school
expenditures and no use of free cash), projects a net deficit of$900,000 that must be addressed. After a
discussion of the size of the projected deficit and possible ways to close the gap, Steve Blewitt agreed to
write a letter to Budget Council members summarizing the Finance Committee's discussions. In particular,
the Finance Committee discussed use of free cash, reducing funding for the pension liability, and limiting
growth in the school budget.
Carol Grimm and Tom Green discussed the status of the capital improvement program, including the school
department's new ten yew plan. The Finance Conuniuce also discussed developing a policy on capital
expenditures. The idea of spending on capital the amount that the Town's assets depreciates each year was
raised, and was modified by the idea of building flexibility into the spending level. No final decision was
reached.
The meeting adjourned at approximately 10:30 pm.
Respectfully submitted,
Stephen J.Blewitt
Chaimnan