HomeMy WebLinkAbout1987-12-10 Finance Committee Minutes FINANCE COMMOTTEE MEETING, 12/10,'87 JOINT MEETING WITH
BUDGET FORMAT COMMITTEE
CHAIRED BY PEG RUSSELL
MEETING CALLED TO ORDER AT 7:30 Pm ABSENT : GREENE, LYNCH.
THE MEMBERS OF THE TWO COMMITTEES INTRODUCED EACH OTHER AND
THEN GOT DOIJIJ TO BUSINESS: . THE BUDGER FORMAT REVIEW
COMMITTEE PRESENTED ITS RECOMMENDATIONS TO DATE AND THESE
ARE LISTED BELOW:
1. SCHOOL COMMITTEE REINSTATE ITS BUDGET SUMMARY
PRESENTATION GIVEN TO TOWN MEETING IN PREVIOUS YEARS>
2. THE FINCOM WARRANT CONTAIN BRIEF EXPLANATION OF EACH
ARTICLE AND FINCOMS RATIONALE FOR RECOMMENDING OR NOT
RECOMMENDING.
3. FINCOM MAKE MINORITY REPORTS AND WRITTEN MINORITY REPORTS
ON ITEMS OF SIGNIFICANCE (IN FINCOMS OPINION). •
4. THE TOWN MANAGERS MESSAGE INCLUDE DISCUSSION OF PROGRAM
IMPLICATIONS, STAFFING CHANGES ( INCLUDING CLASSIFICATION &
PAY CHANGES), ETC.
5. THE FOLLOWING COLUMN HEADINGS BE USED IN THE BUDGET
PRESENTATIONS: APPROPIATED LAST FULL FISCAL YEAR / EXPENDED
LAST FULL FISCAL YEAR / APPROPIHTED CURRENT YEAR / TOWN
MANAGERS RECOMMENDATION / FINCOM RECOMMENDATION / FINCOM
VOTE / BLANK COLUMN FOR NOTES ETC.
E. CAPITAL IMPROVEMENT PROGRAM RETURN TO 2 PAGE SPREADSHEET
FORMAT USED IN PAST WITH FOOTNOTES INDICATING FUNDING
SOURCES. ALSO THAT A GRAND TOTAL BE SHOWN FOR EACH YEAR AND
BREAKDOWN OF EACH METHOD OF FUNDING FOR. EACH YEAR..
THE FORMAT COMMITTEE HAS NOT YET DECIDED ON THE FOLLOWING,
sPecifir_ line item brea.Kouts (how Mich to lump together>.
How to Present Fincom Ra.tiona.le on specific budget items.
Ca-n all the above be implemented.
c .
'rHE ABOVE ITEMS WERE DISCUSSED AND MOST DEBATE INVOLVED
ITEM NO S. MEMBERS WERE NOT SURE WHICH OF THE T014N MANAGERS
RECOMMENDED BUDGET FIGURES SHOULD BE SHOWN ON BUDGET
PRESENTATION ( HIS "FIRST CUT" FIGURES OR FIGURES PRESENTED
FURTHER IN THE REVIEW PROCESS).
FINCOM AGREED THAT THE REST OF THE ITEMS WERE DESIREABLE AND
RAISED NO SERIOUS OBJECTIONS.
PEG RUSSELL THEN INFORMED THE FINCOM THAT THE TOWN MANAGER
MIGHT WANT TO CHANGE THE WAY BUDGETS WERE VOTED . HE WANTS
TO EL111INATE THE MANY LINE ITEMS VOTED IN EACH MAJOR
DEPARTMENT AND HAVE TOWN MEETING VOTE ONLY THE FOLLOWING
LINES. "PERSONAL COSTS". "EXPENSE". "CRPITRL". "OUT OF STATE
TRAVEL% THIS WOULD REDUCE THE LINE ITEMS VOTED BY TOWN
MEETING FROM 150 LINES TO 30 LINES.
THE TOWN MANAGER CLAIMS HE NEEDS THE FLEXIBILITY OF BEING
ABLE TO SPEND FUNDS IN WAYS OTHER THAN AUTHORIZED BY TOWN
MEETING IN ORDER TO MORE EFFICIENTLY RUN THE TOWN.
FINC011 DISCUSSED THIS ALONG WITH THE BUDGET FORMAT
COMMITTEE FOR A FAIRLY LONG TIME. THERE WERE SEVERAL
OPINIONS EXPRESSED BOTH PRO AND CON
TO SUMMAR.IZE,SOME MEMBERS FEEL THAT THIS {JILL GIVE HIM THE
FLEXIBILITY HE WANTS TO OPERATE AND FEEL IT IS A LOGICAL
EXTENSION OF CHARTER: REFORM. HE SHOULD BE ALLOWED TO
TRANSFER FUNDS FROM LINE TO LINE AS EXPEDIENT . HE NOW HAS
TO COME TO FINCOM OF: TOWN MEETING IF HE HAS BUDGETED
INCORRECTLY, AND CANNOT COVER AN OVEREXPENDITURE FROM OTHER
ITEMS ON THAT LINE, THIS IS TIMECONSUMING & INEFFEFICIENT.
ANOTHER GROUP OF MEMBERS FEEL THAT THIS REMOVES TOWN
MEETING CONTROL OF THE BUDGET ( WHICH HAS ALREADY BEEN
REDUCED FROM 250 LINE ITES TO 150) . THEY FEEL THAT TOWN
MEETING VIA THE BUDGET STILL SETS THE DIRECTIONS THE TOWN
WILL MOVE IN AND THAT READING SHOULD NOT HAVE A "CITY STYLE"
BUDGET ARID SPENDING PROCESS. THEY FEEL THAT THE MANAGER
SHOULD BUDGET PROPERLY AND IF HE DOES NOT THEN IT BECOMES
APPARENT THAT HE HAS MADE MANY ERRORS FAIRLY EASILY RATHER
THAN BUDGETING ERRORS BECOMING LOST IN LARGE TOTAL LINE
ITEMS. THEY FEEL THAT GOOD BUDGETING IS PART OF THE MEASURE
OF THE MANAGEMENT OF THE TOWN THAT THE LINE ITEMS SHOULD
REMAIN ABOUT AS THEY ARE, IN ORDER TO RECOGNIZE PROBLEMS
BEFORE THEY ARE OUT OF CONTROL.
NOTE : THE TOWN ACCOUNTANT CALLED CHAIRMAN ALLEN THE
NEXT DAV TO STATE THAT HE IS TOTALLY AGAINST THE REDUCTION
OF LINE ITEMS AND FROM HIS EXPERIENCE IN OTHER TOWNS FEELS
THAT IF TOWN MEETING RELEASES FINANCIAL CONTROL, IT USUALLY
LOSES MUCH OF ITS CONTROL OF THE TOWNS DIRECTION
AND QPERATIONS.
BOTH GROUPS AGREED THAT INFORMATION IS THE KEY TO
CONTROLLING THE BUDGET. THE FIF:ST GROUP FEELS THAT IT WILL
CONTINUE TO RECEIVE ACCURATE INFO.SY WHICH TO JUDGE
PERFORMANCE, WHILE THE LATTER GROUP FEELS THAT THE QUALITY
AND ACCURACY OF INFORMATION WILL DETERIORATE BADLY AND
FINCOM &: TOWN MEETING WILL LOSE CONTROL.
AT THIS POINT THE BUDGET FORMAT COMMITTEE BADE THE FINCOM A
FOND ADEIU AND DEPARTED.
THE CHAIRMAN THEN COMPLETED THE AGENDA WHICH CONSISTED OF
THE FOLLOWING ' DISTRIBUTION OF PRIOR MEETINGS MINUTES
COPIES OF MOODYS CREDIT REPORTS ON THE TOWN OF READING;
If
FINCOM HAND BOOP: FOLLOW UP PUBLICATION , COPIES OF TOWN
MANAGERS BUDGET REQUESTS OF TOWN DEPT. MANAGERS. INFORMING
MEMBERS OF ITEMS OF INTEREST SINCE LAST MEETING - BUDGET
STATUS FIGURES AT 11/30/£7 (.INCLUDING FINCOM BUDGET?
LIST OF CHANGED REQUIREMENTS FOR PROP 2 1:'2 OVERIDE
MAJOR CHANGES IN LAW WHICH AFFECT FINCOM OR READING
VARIOUS F40TICES FROM TOWN HALL (JOBS AVAIL. MEETINGS ETC?
COPIES OF LETTER WHICH ALLOWED SCHOOL DEPT TO SPEND 10.000
FOP OIL BURNER REPAIRS AFTER SCHOOL FIRE.
WARNING OF A POSSIBLE RESERVE FUND TRANS> TO COVER PORTION
OF THE PENSION SYSTEM ACTURIAL STUDY. ItEPeiRic
REPORT OF THE STATUS OF REAL ESTATE TAY. CLASSIFICATION
REVEALED THAT THE BOARD OF ASSESORS SUPPORT CLASSIFICATION
BUT THAT THE BOARD OF SELECTMEN DO NOT WANT TO IMPLEMENT
UNTIL THE SALE OF LANDFILL IS COMPLETE. CLASSIFICATION WOULD
YIELD CONSIDERABLE R../E TAY. REVENUE ON NEW COMMERCIAL
CONSTRUCTION AND FINCOM WILL CONTINUE TO FOLLOW UP.
REPORTED STATUS OF SCHOOL TRANSFORMERS WHICH ARE LEAKING
PCBs PF40 WILL REQUIRE REPLACEMENT AT COST OF 250.000 SOON.
DEANE HASKELL PRESENTED THE LETTER FINCOM VOTED TO MAIL TO
OUR ELECTED REPRESENTATIVES ON BEACON HILL EXPRESSING OUR
OPPOSITION) TO CURRENT LEGLISLATION TO REINSTATE MANDATORY
POLICE 6: FIRE ARBITRATION. THE CHAIRMAN WILL MAIL NEXT WEEK.
THE FINAL DRAFT OF THE PEAT MARWICK AUDIT OF YEAR ENDED
6r'30/£? WAS PRESENTED ALONG WITH A LIST OF POSSIBLE EXPENSE
TO THE TOWN DUE TO LEGAL ACTIONS STILL IN PROCESS.
MEETING ADJOURNED AT 10 ,40
Ser_reta.rY (for now)
DON ALLEN!
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