HomeMy WebLinkAbout1987-02-19 Finance Committee Minutes ' FINANCE COMMITTEE MEETING
February 19, 1987
46
The meeting was called to order at 7:40 p.m. by Chairman O'Leary
in Room 16 of the Town Hall. Members present were Allen, Catalfamo,
Greene, Harrison, Lynch and McMenamin.
The Chairman informed the Committee that there will be a meeting on
Tuesday, 2/24 with the Board of Selectmen, the School Committee,
and the Town Manager to discuss the proposed budget and where the
revenues will come from to fund the budget.
Chairman O'Leary asked for the Committee's thoughts on the meeting
held on 2/16 and how they felt the budget review process should be
approached. He noted that he still sees the Finance Committee's
major role as that of being an advisor to Town Meeting, and still
sees the Board of Selectmen as the major policy makers of the Town.
A discussion followed reviewing some of what was said at the 2/16
meeting. Most members felt that the Finance Committee should set
some policy, i.e. , free cash, pension liability, and other fiscal
matters, particularly long-term financial planning. Chairman O'Leary
reminded the Committee that the Fin Com isalready involved in
some fiscal policy via the Audit Committee which reviews the manage-
ment letter prepared by Arthur Andersen. Regarding pension liability,
an actuarial study should be done to determine the amount of liability
to be funded. Regarding clerical salaries, a classification study
will soon be underway to resolve the clerical salaries and job descrip-
tions disparities.
According to the Charter, Chairman O'Leary told the Committee that, the
Fin Com still has all the powers entrusted to it by the Commonwealth.
While some people would still like to see the Fin Com recommend exact
percentages for budgeting guidelines, the Chairman does not see that
as the Fin Com' s role. The Fin Com should tell the Town Manager how
much they see being available for the budget and let him determine
where it is to be spent. The Chairman reminded the Committee that
the Fin Com has previously gone on record as being against using the
sale of real estate funds for any operational type items.
Regarding the FY 88 budget, Chairman O'Leary sees a modest shortfall
for revenues since the state aid will be less than the expected $520,000.
He then reviewed some of the components of local aid, how the lottery
funds are distributed to towns, which programs have been deleted this
year, such as reimbursement for state owned lands, flood control, etc.
Also, the Chairman noted that the revenues for water and sewer will
have to be adjusted to make it a fully enterprised account.
The discussion then turned to the Voke School budget. Jim read a
letter from a Mr. Caetano, a former School Committee member from Woburn
who urged the Fin Com to closely examine and vote down the Voke budget.
He urged Reading to join the bandwagon with the other 11 towns served
by the Voke to expose their "flagrant wasteof money. "
Fin Com page two February 19, 1987
Regarding a schedule for meetings and budget hearings, Chairman
O'Leary told the Committee he will make up a schedule to be available
by Tuesday, 2/24. He would like to have all budgets at least one
week in advance of the hearings. A .couple of members suggested that we
schedule hearings only for those departments for whom the Fin Com has
questions. Most members felt that the ..Town Manager should be able to
answer the majority of the budget questions.
Regarding setting a policy on free cash, Member Brian McMenamin sug-
gested that the Committee have Beth Klepeis and/or Richard Foley appear
to give the Committee more background on free cash prior to setting
a policy on it.
On Tuesday, 2/24, the Town Manager will present his first cut of the
FY 88 budget. The Committee may be asked to recommend what, if any,
funds could be used to balance the budget. Or, if not in agreement
with the budget,what could be changed. The Chairman will ask Peter
if members could have the material in advance of Tuesday' s meeting.
For FY 88 salary budgeting, the question was posed whether or not 1988
was one of those years with 53 pay periods. The Chairman will check
with Beth Klepeis.
It was moved and seconded to adjourn at 9 :45 p.m.
Respectfully submitted,
Ann D. Hale, Clerk
BOARD OF SELEG N"'
FEB? z,: 1987
TIME