HomeMy WebLinkAbout1988-02-09 Finance Committee Minutes FINANCE COMMITTEE MEETING FEB. 9, 1988
RBSENT1 MUCCI, HARRISON
THE MEETING WAS CALLED TO ORDER AT 7,45
TED MCINTYRE FROM DPW WAS PRESENT TO REQUEST A RESERVE FUND
TRANSFER -TO SNOW AND ICE OF $80,000.00 .THAT ACCOUNT
REFLECTS A NEGATIVE BALANCE OF $46,000. IF ALL BILLS WERE
PAID AS OF TODAY.
MOTION MADE TO TRANS $50,000. FROM RES FUND TO SNOW & ICE.
R DISCUSSION ENSUED WHICH REVEALED THAT ' IF ALL THE PROPOSED
RESERVE FUND TRANSFERS REQUESTED WERE ALLOWED BY FINCOM THE
RESERVE FUND WOULD HAVA A BALANCE OF $34,000.
PRESENT BALANCE 304000
REQUEST-SNO &: ICE 80000-
SPECIAL NEEDS 90000-
POLICE/FIRE O.T. 25000-
CLERICAL PAY RAISE 50000-
TRAFFIC STUDY 10000-
ELECTI13NS 5000-
OTHER SMALL ITEMS 10000-
REMRIF41NO BALANCE $34,000.
THE FACT THAT SF40W & ICE CAN BE PAID THIS YEAR & CHARGED
AGAINST NEXT YEARS TAX FATE WAS ALSO NOTED>
MOTION! TO AMMEND TRANSFER TO 70,000. PASSED BY 5-1-1
MAIN MOTION TO TRANSFER $70000. TO SNOW & ICE PASSED 5-1-1.
THE CHAIRMAN THEN PASSED OUT THE FOLLOWING ITEMS+
THE TOWN MANAGERS FIRST CUT BUDGET EXPENDITURES SCHEDULE
AN ABBREVIATED DRAFT #3 OF READING SCHOOL BUDGET
2 MEMOS RE: NEW EMPLOYEE RETIREMENT LAW RECENTLY PASSED
ONE FROM SEN. BRENNAN & ONE FROM COMM OF MASS RETIREMENT
ADMINISTRATION>
R SUMMARY OF LOCAL AID , HOW ITS COMPUTED ETC.
A MEMO WARNING OF POSSIBLE NEED FOR RES FUND TRANS. TO
ELECTIONS.
THE CHAIRMAN THEN PRESENTED THE MOST RECENT ESTIMATED BUDGET
FIGURES FOR ' 1989. ALONG WITH A DEPARTMENTAL WORKSHEET. AT
THIS TIME THE DEFECIT LOOKS TO BE APPROXIMATLY $1,025,000.
HE RECOMMENDED FUNDING THIS DEFECIT IN SEVERAL WAYS. ALREADY
INCLUDED IH THE FIGURES WAS THE USE OF $800,000 FREE CASH
COMPUTED AS FOLLOWS :
PRESENT BALANCE OF FREE CASH $1,770,000
LOTTERY FUNDS DUE SOON 70,000
FREE CASH EXPECTED FROM Y!E 630/88 450,000
AVAILABLE FREE CASH 2,290 000
Retain Per Fincom Policy .5% of oPerate
budget (less Sew & Wit,Prov for abater )
30mill at .5% 11500,000.
----------- -- --------------------------------- ----------------
availa.ble for oPeratin9 exP/rounded) 500.000.
60
IF WE USE THE DEFINITION OF FREE CASH AS BEING THE REAL
FREE CASH FLUS THE RESERVE FUND WE COULD APPLY $150.000 MORE
TO THE BUDGET.
THE RECOMMENDATION WAS TO THEN! FUND APPROXIMATLY $800,000
OF THE $1,025,000 DEFECIT BY BORROWING ( BONDING,), AND
REQUESTING THE REDUCTION OF EXPENDITURES BY THE TOWN OF
$225,000. IN ORDER TO BALANCE THE BUDGET.
THE CHAIRMAN THEN DISTRIBUTED A CHART OF THE COST OF
BONDING AT 7?: OVER 10 YEARS ON 1 MILLION DOLLARS ALONG WITH -
A PREVIOUS FORCAST WHICH DISPLAYED THE FUTURE COST OF DEBT
SERVICE TO WHICH THE TOWN IS ALREADY COMMITTED.
THE OUEST2ONS POSED TO THE COMMITTEE WERE.
1. HOW MUCH FREE CASH DID THEY FEEL WAS APPROPRIATE
TO USE IN FORCASTS.
2. AT WHAT LEVEL DID THE COMMITTEE FEEL WE COULD BOND,
KEEPING IN MIND THE WE WILL PROBABLY BE BUILDING A
NEW FIRE STATION (2,500,000 ?) ,EITHER TOWN HALL ADD,
REPAIRS, PEARL ST. OPTION 423,500,000?) AND VARIOUS
OTHER LARGE CAP. EXPENDITURES OVER NEXT 5 YEARS (NEW
LADDER TRUCK, NEW TRAFFIC LITES IN CENTER, ADDIT.
SCHOOL ROOFS, POLICE STRT. UPGRADE. PURCH NEW
CEMETERY LAND ETC).
THE MEMBERS WILL LOOK OVER THE FIGURES AND TRY TO COME UP
WITH A COHERENT PLAN OR POLICY ON BORROWING IN THE NEXT
SEVERAL MEETING'S.
THE FOLLOWING IS AN EDITORIAL
-----------------------------
IT WAS NOTED THAT THE TOWN MEETING AND VARIOUS TOWN
OFFICIALS HAVE ASKED FOR MORE FINANCIAL PLANNING FOR SEVERAL
YEARS,SUT WHEN THEY ARE PRESENTED WITH SCENERIDS WHICH HAVE .
BEEN CONSTRUCTED BY FIN-COM, THE TOWN ACCOUNTANT &
TREASURER, AND EVEN THE TOWN MANAGER, THOSE SAME PEOPLE WILL
NOT ACKNOWLEDGE THE EXISTANCE OF SUCH PLANS OR THE
DISCIPLINES REQUIRED BY THOSE PLANS. THEY INSTEAD ASI( ONCE
AGAIN FOR FINANCIAL PLANNING AND BLUE RIBBON COMMITTEES ETC. .
IT BECOMES. OBVIOUS THAT WHAT IS REALLY BEING REQUESTED IS A
FINANCIAL PLAN THAT WILL ALLOW SPENDING AS WANTED RATHER
THAN SPENDING WITHIN THE CONSTRAINTS. OF AVAILABLE PRESENT
AND FUTURE RESOURCES.
THE CHAIRMAN WOULD LIKE AS MUCH INPUT AS POSSIBLE FROM
MEMBERS AND AS MANY CREATIVE FINANCIAL IDEAS AS WE CAN
MUSTER IN ORDER TO PERFORM OUR DUTY TO TOWN MEETING.
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