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HomeMy WebLinkAbout2020-03-04 Finance Committee Minutes Fq� Town of Reading Meeting Minutes Board - Committee - Commission - Council: Rk 2020 HAe 19 Ar 8: 2! Finance Committee Date: 2020-03-04 Time: 7:30 PM Building: Reading Town Hall Location: Select Board Meeting Room Address: 16 Lowell Street Session: Open Session Purpose: Budget Meeting Version: Final Attendees: Members - Present: Vice Chair Paula Perry, Dan Dewar, Karen Herrick, Andrew Mclauchlan, Shawn Brandt, Ed Ross Members - Not Present: Chair Eric Burkhart, Marc Moll, Sean Jacobs Others Present: Town Manager Bob LeLacheur, Finance Director Sharon Angstrom, Facilities Director Joe Huggins, Fire Chief Greg Burns, Administrative Services Director Matt Kraunelis,. Town Treasurer/Assistant Finance Director Endri Kume, Police Chief David Clark, DPW Director Jane Kinsella, Assistant DPW Director Chris Cole Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: Ms. Perry called the meeting to order at 7:30pm. IFY21. Budget Overview: Town Manager Bob LeLacheur provided a summary of the Town budget for FY21. Revenues Increased 3.5%. An additional $1.25 million In free cash was used to augment the operating budget. Accommodated costs increased just under 3%, which includes a 32% increase in retirement funding, made possible by health insurance premiums coming in at a reasonable number. The total Increase of the Town and Schools General Fund is 3.2%. Shared casts increased 4%. A proposed Benefits Coordinator position is added under the Finance Department to help keep up with tracking health insurance auditing, as MIIA, Blue Cross, and the state have shifted a lot of the work onto Town employees, work which is currently handled by Human Resources. This position will catch discrepancies in Insurance and billing before the Town becomes liable for a mistake. Mr. LeLacheur stated that he would be open to spending less than 5% in Capital at the start of the year if the RMLD dividend is cut. The Capital Plan is balanced, but some community requests, such as the Killam School or a new Senior Center, are not affordable with just capital funds and would require borrowing. It is fine to adjust for one-time costs, but to hire additional people would need to be part of the operating budget. When needed in the past, Finance Committee has opted to use free rash and find other ways to free up $250,000-$500,000 In the budget. Page I I Mr. LeLacheur continued to review the individual department budgets, which were consistent overall, but highlighted some notable changes. Town department budgets have increased 2%. The biggest factor driving up costs is three scheduled elections next year, Instead of just one, Increasing the Administrative Services wages. Public Services has maintained the number of FTEs, but shifted some roles by eliminating a vacant administrative position and restoring a Community Services Director position. Technology expenses continue to increase, mostly due to the cost of software licensing. An additional $10,000 is requested for the Town Manager Reserve Fund, which will be used to take a closer look at Public Safety Dispatch staffing, function, policies and procedures, and enable the Police Chief to explore community outreach opportunities. Mr. Brandt asked how Town Counsel expenditures were tracking for this year. Mr. LeLacheur stated that in the next couple of weeks, he will be requesting another $50,000 to cover Town Counsel expenses for this year. An influx of public records requests, many of which require Town or Labor Counsel review, and unanticipated legal matters, such as the proposed use for the former Daniels House, were unplanned expenses which could not be predicted. Mr. LeLacheur stated that he increased the Town Counsel budget as little as possible for next year, but legal expenses are not easy to predict. Mr. LeLacheur updated the Committee on the current recycling situation which has become complicated and difficult. The Town's vendor, JRM, Is under a long-term contract. However, changes in what is acceptable for recycling is changing every day based on market condition. IRM is looking to more tightly control what is put Into recycling and will begin stickering the week of April 1, 2020 if a bin includes material that is not acceptable. DPW Director, Jane Kinsella will be meeting with the Climate Advisory Committee to discuss how to communicate the changes to residents. For the Facilities budget, $40,000 for a 30-hour position, and $50,000 for a locks and maintenance agreement were removed from the budget because the security project is out to bid right now. Mr. LeLacheur stated that the project is not yet advanced enough to justify those expenses. Total energy expenses are down 3%, reflecting energy savings of recent capital projects. Ms. Perry asked if the Finance Committee could receive an update about the RMLD payment to the Town at the next meeting. Mr. LeLacheur explained that there are two Select Board members working on the Issue, but it looks like the payment could be reduced $700,000- $800,000. He will not have an update until after the Select Board meets on March 17th. If the payment is reduced, it would first impact the FY22 budget. Snow & Ice Spending Vote: Mr. LeLacheur asked for authorization for deficit spending for snow and ice as a proactive measure, though he does not expect that it has been overspent. If snow and Ice is overspent, the deficit can be covered by asking for additional funds, transferring funds, or rolled into next year's budget. On a motion by Mr. Brandt. and seconded by Mr. Ross. the Finance Committee voted to authorize deficit spending for snow and Ice removal according to MGL Chaster 44 Section 31D by a vote of 6-0. Reserve Fund Discussion re: COVID-19 Emergency Preparedness: Mr. LeLacheur stated that he would like to ask the Finance Committee to transfer$50,000 out of the FINCOM Reserve Fund and into the Town Manager's Reserve Fund in the event the Town needs to respond to a coronavirus outbreak. While there is no plan to spend any money right now, if needed for a real crisis, it would be used for things like facilities supplies, or technology equipment to allow more remote access. Minutes: Page 12 Mr. Brandt clarified his proposal to amend the Capital and debt policy from 3.25% to 4.5- 4.75%. Ms. Herrick requested that arrival times be verified. On a motion by Ms. Merrick, and seconded by Mr. Brandt. the Finance Committee voted to aoorove the meeting minutes of February 26. 2020 as amended by a vote of 6-0. Capital Discussion Review: Mr. Mclauchlan noted that it would be advantageous to free up funds, even if it Is only $250,000, from capital to support the operating budget. Mr. Brandt noted that the question stemmed from discussions in the fall about items that do not get included In the budget that would have medium to long term benefits. He expressed his interest in lowering the Floor from 5% to foster those conversations. Mr. LeLacheur agreed that it can be more difficult to settle on an operating budget and there is more Flexibility in the Capital Plan. He advised that if a change in the Floor were to be made, it would be best to do it no later than October so it can be planned for the upcoming budget year. On a motion by Mr. Brandt, and seconded by Ms. Perry, the Finance Committee voted to adjourn at 9:38om by a vote of 6-0. Page 13