HomeMy WebLinkAbout1989-01-05 Finance Committee Minutes L
FINFNI_E U!'MMITTEE MEETING, .;FH 5,
ABS-ENT G'RF_EHE, F`ORTER.
PIEETIFIG CALLED TO ORDER AT 735
SIFTER. THE USUAL OISTR:IEUTION OF t•1INUTES, ARTICLE AND ITEMS
O1= INTEREST i PEAT MARWICK: MANAGEMENT LETTER. FOR F,/V RP)
THE MEETING GOT DOWN TO WORKING OH THE GLIOGET FIGIJRES FOR
FISI-:AL 19510.
A S:UE:COMMITTE WAS FOF.NEO, MAIiE UFOF PAUL OEVLIN AND OEAHE
HRSK:ELL TO INVESTII::RTF_ THE F'OSS;:DLE DALE_ OF READING
M.UHICIPAI_ ELECT=:L:: OEF'T.
WHEH THE (DECEMPEIR STATUS I.:F_F'O@T4: HF:F_ AVAILABLE THE
LIASOII GROUPS FOR THE SELECTMEN d: THE :='CH7OL COtMMITTEE WILL
GG Ci','ER THOSE REPGR.TS. THEY FIFE UJLIK:IHG FDF'. F'OSS15LE 13'-.'EF:
BLIEIGETIN6 IH 1553 WHICH WILL RESULT IN RECIUCTIONS IH
REIJI.tESTED BUDGETS F—OR 13140. FILSO WILL I_UOK: FOR A14Y OTHER
IHHAM'1!_IEf'. WHICH TI-IL Y C'.FIN SPOT THAT COLIED MEFIhI TROUBLE THIS:
YEAF. I u:1SIE1 F Fk S. FUND TF:FIHI FERS FICI E-'AI•IF'LE' AHD RNYTHIHG
WHICH MIGHT HAVE A !SEAF'.INO OH THE 1,95'0 ELJI'JGET.
IHE1-HAIR ILF'OF:TED THAT A Ir' 5,mOri. PLaWIrO REDUCTION IN THE
I,-OST OF ,IF FOF ' 3s0 WILL F40T OCI_IJF. THIS
R.EDLICTi0H WiFv EASED OH THE AMI IIHT REPORTED E):FENDED III 1925
TO DATE. THE TOWN RCCOUNTAHT HAS REPORTED A POSTING ERROR ON
THE H I'VENDFR STATHS RF1='CIRTS WHICH WHEN iIORR.EICTED WILL
III :: „ cII .1fiEJ T-'9, 4ICna NE-1-FI- 11!-:E III EUFu?ET FDF. 1990_
VEp; U TC: TLE Fth!Cull FL'DGET
it=l T. Ii D11i1='il. I:IF WI-Ili II III:IL. A 1 -11v PIED I TI-IE !'III11.JTEE'.
1'II[ ! 2 "-l-t ':`II" HEET ! 111.' ':1-IE : Irt - [ ' E!E UL"[-.1!'EO HJT TO FIJHD
PY FIF "I-!F_ DEFICIT WI ' 'i P h;Cl IIL '" h]71l ..:ALE OF FEI-11_ ESTATE
MHOS. IN 'FFiEE LE
.RST METIHC Wt HHO F'F'i:F'OSED USIhlG X550, 000 FROM
THIS _'OURCE TO RALRHC;E THE E:UDGE:T. THIS P1F_AN3 THAT WE ONCE
AGAIN HAVE A $jSO . 000. OEFF_CIT_ THE COMMITTEE ALSO DECIDED
TO OFFER TO FIHAHCE i,_SIFa,Gv A OF THI_: DEFECIT LJITH FREE CASH
IF NCI OTHER RE'c'ENUES OR BUDGET FEOUCTIONS CAH BE FOUND. THIS
SI-!DULL. STILL LEAVE FREE CADH AT 7, ...'90 AT APPF"IDX.
•1 , SOI-a , I- - -
A f-IUMJ IEP IF ! 1;SIB1_E VLI IT IOli'.:- WERE :JI_I I DTECI TO THE BUDGET
DEFLCITS LIHICH FIRE L."ISTED I EL_OIJ- THEY FIFE :EEGRE:GATED INTO
U:11JG TIEPt RHD £HOF'T TERM SOL.0"I"IOII'S C:E:Ot•IE iIVER.LAP.,
'__HFIRT TEFII'I : .
H HIRING, FtEE_E, FLE:<Atlllll GE HI-.F.:AI_ I ISUF:AHCE: FDF'.
:A'c'1111 5, II'ISIF t113F_ FE:Ed WHERE Pf:[-,..'IE:LE. ELIHINATICIH OF TOWN
FIHAIll: I IG OF' UDSP-H FTFI IF FI ::>IOEIiT.; FAY FOR IT � .
04VFIRII 1111,( TI -0 FPO I IIII Altl4=1L IS <F_NRBLE US Tt, SEE
4 YALTLY IiFir FHI H RHO TI-II NEED FOF'. AIJD
BEHEFITE: OF THAT PPOOFIAM.. WE __MILD THEN{ PRIORITIZE AHY
OIJ"I"E HII I-1 T10T MAY F.'E III L --DAF" . C'.;AMTHE I_ULLECTIOH OF
` AMBULANCE FEES.
LONG TERM :
PROGRAM EUD,SETING (OVEF.LAP . REAL ESTATE TR::
CLASS IF IJ]ATION. SALE OF F.:EADIHG MUNPOIPAL LIGHT DEPT. .
PROP 2 1:`2 O'JERIOES. EXAMINE HEALTH INSLIF:Fit'ICE. EMPLOYEE
ATTRITION <:CONTIHUATION OF HIRING FREEZE::,. El-ANNUAL _
LEVEL FUNDING OF EXPENSE BUDGETS iBI-AHHUAL SQJJEEZEi.
HAVE TREASURER RE EXAMINE THE TOWN' INVESTMENT POLICIES
WITH AN EVE Ti j FI GREATER. RETUFN.
THE NEXT MEETING WILL BE ON 1 %12;'09 AT THE SCHOOL
ADMIN. OFFICES AT GOULD ST. THE SELECTMEN AND THE
SCHOOL COMMITTEE HAVE BEEN INVITED FOR BUDGET
DISCUSSIOH AND AS OF THIS Oril"E IT -Outs; AS IF SOME
FROM EACH BOARD WILL ATTEND. WE WILL EE ATTEMPTIHG TO
REACH A CONSF_SUS ON FINANCIAL MRTTEIFS. NOT MANY DECISIONS
ARIE EkIPECTED FROM THIS MEETING STJT EACH BOARD WILL GET
A CHANCE TO AIR THESE: OPINIONS AND THEIR FEARS AND THE
IUSTIFU,ATbON FOR THEM. I HOPE FOR AT LEAST ONE MORE
MEETING WITH THESE BOARDS EEFC)RE. ANYTHING CONCRETE
IS DOHE ABOUT THE 1=+9O BUDGET.
DON ALLEN
W.iF.DPROCE:SSOR.
fir CHA I PI9117iFIA
4
4
DONALD
2-,11 FOREST ST.
CEO 29, 1988
0" ROBERT MUMELU,'
FEAD1040 SCHOOL OFFICES
01 LOULO ST.
READDE. MA 01267
DR. NlAiHELLY
RE:SEFiRCH IN ORDEF.. TO NAKF� OUR DATA BASE MORE ACCURATE.
I ill-ULD AFFIREC- 11-ITE IT IF 1,11DU COULD GET THE
6 ~ { \I HUMBER �`��(BOTH ��\ AND
PER01"D SCHOOL STIMENT PORMATIM4 WAS AT ITS LARGEST.
FROM THE SOHOOL BIJINLTS FOR EFi-H OF THE YEARS ABOVE WOULD
311,1E U!3 THE NUMBER OF PCISTTIOI,K� IH1,21OLVED. YOUR OFFICE COULD
1-1-ICH JUST NOTE THE STUDEHT ASSOCIATED WITH THOSE
I' ALL PluHT WITH IJi,�.
INCWDE 0HY ATHLETICS OSUCH AS THE SWIM TEAM IN RODUI04 TO
' �. Is:w
CRA BE � THIS
VERY a c,
Reading Finance Committee
Town Hall
Reading, Ma 01867
December 29, 1988
Municipal Light Board
Attn: Phil Pacino, Chairman
Town Hadd,
Reading, Ma. 01867
Phil:
Enclosed is Fincoms' preliminary Budget estimates
for Fiscal 1990, and a Ten Year Forecast based on
those figures.
As you can see we are facing deficits in every
future year. The forecast indicates that if Real Estate
Funds were used to Finance those deficits the Town would
exhaust the Sale of Real Estate Fund in 1994 or 1995.
That is assuming that most of Fincom recommendations for
curtailing the growth in Municipal & School Budgets are
accepted. If those recommendation: are not followed the
Sale of Real Estate Fund will be totally used-up even earlier.
In light of the above the Finance Committee has requested
that I contact you and ask that you explore the possibility
that the Municipal Light Dept increase it's $1, 250, 000. 00
distribution to the Town. Please discuss this matter with
your Board and contact me at any time.
Phil, I also want to alert you to another item which
Fincom has been asked to investigate. Several Town Fleeting
Members (led by Bill Brown) have requested that we do a
study of the effects of the saled of the Municipal Light
Department by Town Meeting. We will probably form a sub-
committee for that purpose. We would appreciate, it if'you
and your staff give whatever assistance that subcommittee
requires. I would assume that there is a lot of material
prepared relative to the Wilmington problem,which would
be helpful in any study of the possible sale of Reading
Municipal Electric.
Please understand that the Finance Committee has no
position relative to that sale and is acting as the Charter
and By-Laws require.
As you can see, Fincom hasn't changed much since you
were a member (and Chairman) . Never a dull moment.
Donald C. Allen
Reading FinCom.