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HomeMy WebLinkAbout1989-10-12 Finance Committee Minutes MINUTES OF Tee R E A D I N G F I N A N C E C O M M I T T E E O C T 0 B E R 1 2 , 1 9 8 9 This meeting of the Reading Finance Committee was held at the Pearl Street School and was called to order by Chairman gill Burditt at 7:30 PN on October 12, 1989. Members Present: Bill Burditt, Chairman Liz Greene, Vice Chairman Nick Agneta Dick Coco (arrived late) Don Allen Gerry MacDonald (arrived late) Nate White Also Present: Richard Foley, Town Accountant Beth Klepeis, Town Treasurer Nils Nordberg, Assessors Office Yano Tine, Assessors Office Maria Silvaggi, Reporter, CHRONICLE I. BUSINESS A. Transfer from Reserve Fund/Assessors Non-Personal Expenses a Nils Nordberg addressed the Committee in explanation of the need for a Reserve Fund Transfer. Mr. Nordberg announced that Bill Locke had resigned from the Board of Assessors. This leaves only one Board Manager with experience in revaluation hearings. a In order to complete the hearings in a timely fashion, the Board feels that outside, experienced consultants should be contacted to assist in conducting the hearings. (The Board being the Board of Assessors). It is extremely important, according to Mr. Nordberg, to have the hearings completed with dispatch. a By having the work done properly, Mr. Nordberg suggests that a savings can be realized in reducing abatements and consequent payments from the overlay. a Mr. Nordberg spoke in recommendation of a transfer of $16,000 to be made from the Reserve Fund into the account of "Assessors Non- Personal Expenses". a Mr. Nordberg spoke in recommendation of a transfer of $2,114.00 from the Reserve Fund into the account of "Interest on Property Tax Abatements". a Mr. Nordberg announced that Yano Tine is now Division Head. -1- 2/ Minutes of Reading Finance Committee, October 12, 1989 6 s Questions and answers were exchanged by Committee members and the members representing Board of Assessors. o Liz Greene questioned impact of estimate on just 5 days a week, eliminating Saturdays. Motion: Liz Greene moved to approve the Reserve Fund transfer of $16,000 to Assessors Won-Personal Expenses Account. Don Allen seconded this motion. Motion: Don Allen moved to amend the amount to $12,000 from the Reserve Fund to Assessors Won-Personal Expenses Account. Nick Agneta seconded this motion. Vote: 5 - O - 0 approved (Mr. Coco and Mr. MacDonald absent) Motion: Nate white moved to approve the Reserve Fund transfer of $2,114 to the Interest on .Property Tax Abatements Account. Gerry MacDonald seconded this motion. Vote: 6 - 0 - O approved (Mr. MacDonald present at this vote) a Members of the Board of Assessors adjourned from this meting at 8:15 PM. B. COMMUNICATIONS s Bill Burditt- received notification in the mail that a room tax is now available for hotels, motels and bed and breakfasts. a Departmental Payable bills were cited by Chairman Burditt for sig- nature of Finance Committee. a Millman and Robertson (actuarial study plan) had a fee of $5118.51. This document was signed by members of the Committee for payment. a Peat, Marwick, Main and Company (audits) had a fee of $12,000. This document was signed by members of the Committee for payment. a Richard Foley, Town Accountant announced that the Three-Year Cycle is now at an end for Audit Services. (chairman and vice-chairman of Finance Committee are members of the Audit Committee). • Mr. Foley presented suggested fees for next Three-Year Cycle. • Fees: $37,000, $38,500, $40,000. • Don Allen would like to see some more competitive prices come in. -2- 3/ Minutes of Reading Finance Committee Meeting, October 12, 1989 • Nate White was in agreement with Doo Allen in requesting competitive pricing before making a decision for the peace of mind of the Finance Committee, who are representatives of the Community. C. PRESENTATION A. Summary of Pension Reform Bill, Chapter 697 • Beth Klepeis took the floor in explanation of this bill to the Committee Members. Beth is Reading's Town Treasurer. • Beth cited a great many local option possibilities in this bill. This must be accepted by the time Town Meeting meets. (All the major Boards in the Tow are addressed, i.e., Municipal Light Board, Water/Sever Department, All Town Employees,other than teachers). • Tow employees do not participate in Social Security. This fact was brought up by Tow Accountant to remind Fincom. a Explanations were given by Ns Klepeis in the following areas of regard and concern: • Supplemental Dependent's Allowance • Service Period for Ordinary Disability • Contributions After Age 70 • Removal of the $30,000 Salary Cap • Fitness and Well Program Option • Mr. Foley received the Actuarial Study this day, but must send back for corrections . • Here, Don Allen contributed to the pro and con discussion. D. ARTICLE 3/AMENDING CAPITAL IMPROVEMENT PROGRAM • Bill Burditt make the announcement that Superintendent Munnally of the School Department would like to speak before the Finance Committee before the 23rd. • Bill distributed Revenues and Expenses sheets at this time to the Committee to peruse. • In Bill's literature, he had taken figures for FY 91 Revenues and-came up with the fact that all Free Cash is consumed. Figures were broken down in projections without override — then projections with override. —3— 4/ Minutes of Beading Finance Committee, October 12, 1989 • Bill made some facts more known to the Committee. One noted fact mentioned was that in order to keep all Personnel now held by the Town, the Community could be facing a 21. million override. General override then gets into tax base. • Nate White claims that someone needs to take a definite stand in the situation - override or no override . a Override/no-override discussions followed the presentation of pro- jections offered by Chairman Bill Burditt. . • Bill made mention of the fact that the date of January 29, 1990 is the date the budget shall be presented to the Finance Committee. (This is six weeks before Town Meeting, April 9, 1990). a All Committee members agreed that the budget season approaching will be intense and most Community dwellers do not really compre- hend what is necessary to balance-cut. This will not be as intense a budget year as was last year if the Finance Committee and Board of Selectmen inform the Community, the Voters ahead of time what they should expect. II. ADJOURNMENT m This meeting of the Finance Committee was adjourned at 10:05 P.M. J ally subm' d, /Finne Cary, ING FINANCE COMMITTEE sf Aw -4-