The URL can be used to link to this page

Home My WebLink About2020-02-26 Finance Committee Minutes ora w" Town of Reading rl Meeting Minutes kcct: I'vc TCtNN CLERK �Qa, as RFADINC, `AA. Board - Committee - Commission - Council: 2 k Finance Committee 028 MAR -5 AH 8' 34 Date: 2020-02-26 Time: 7:30 PM Building: School - Memorial High Location: School Library Address: 62 Oakland Road Session: Open Session Purpose: Budget Meeting Version: Final Attendees: Members - Present: Vice Chair Paula Perry, Karen Herrick, Andrew Mclauchlan, Dan Dewar, Ed Ross, Shawn Brandt, Sean Jacobs, Marc Moll Members - Not Present: Chair Eric Burkhart Others Present: School Superintendent John Doherty, School CFO Gall Dowd, Assistant Superintendent Christine Kelley, Director of Student Services Jennifer Stys, School Committee: Chuck Robinson, Patricia Calley, Tom Wise, Linda Snow Dockser, John Parks Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: Ms. Perry called the Finance Committee meeting to order at 7:34pm. FY21 School Committee Budget Review: Gail Dowd provided a high-level summary of the FY21 School Budget by cost center. The School Committee unanimously voted to approve the budget as presented at their January 27th meeting. Mr. Robinson arrived at 7:38pm and called the School Committee to order. The School Committee was able to provide a balanced budget with a 3.5% increase. The Administration Cost Center increased 10.2% due to an added $60,000 for a 1.0 FTE HR/Payroll Administrative Assistant. A breakdown of the general fund by category shows that 69.2% of the General Fund is salary-based. The increase in salaries reflects the cost of living adjustment for all represented employees. Drivers for budgetary increases Include: all contractual increases; known out-of-district needs and placeholders for trending items that are not yet certain to be out-of-district; and funding for curriculum upgrades such as social studies, foreign language, and algebra. Patricia Calley arrived at 7:42pm. Revolving funds are frequently assessed to look at enrollment and revenues coming in. Each revolving fund is setup for a specific purpose based on revenues In the programs being run. Karen Herrick arrived at 7:53pm. For some funds, such as athletics or theatre, ticket sales support the programs. For other revolving funds, the money received should equal the money expended. Each fund is very specific by program, and the funds cannot be comingled. Ms. Dowd provided some project updates. The turf 2 project is complete and the field will be opening on March 16th for spring sports. The project came in $402,000 under budget and the excess capital money was turned back into free cash. Page 1 1 For modular classrooms at Birch Meadow, the bids went out, site visits with potential bidders were hosted, and School and Facilities staff met with Town Staff for a Design Review meeting with no issues. Bids are due on March 5" . Mr. Mclauchlan asked where the School Committee expects the budget to be in ten years. Ms. Dowd stated that is very difficult to predict because the bus contract and all CBAs expire this year, and ten years Is three to four contracts in the future. Additional factors include special education and out-of-district costs which can fluctuate significantly year over year. Mr. Wise later calculated based on an average increase of 3.97%, the FY30 budget could be estimated at $68.37 million. The state Is targeting to reimburse Circuit Breaker funds for special education costs at 75%. It will also start to reimburse transportation. The reimbursements are paid a year in arrears and RPS is fortunate to have a year in reserve. Mr. Mclauchlan noted that sped costs have increased while Individual education plans (IEPs) have decreased and asked what efforts are being taken to ensure the budget is sustainable. Mr. Wise explained that while IEPs have gone down, some costs have gone up, and some of that is mandated by services and what is required for those students. Ms. Perry expressed appreciation for everything RPS Is doing to control sped costs and noted that the Finance Committee would support any programs to Identify sped concerns in early education. Ms. Dowd noted that 82% of the sped budget is salary driven. Staffing needs are assessed and the cohorts are tracked as the students are advancing. Tracking students from pre-K through grade 12 is looked at when budgeting. Ms. Herrick asked if there is a way to predict future space Issues. Ms. Dowd stated that in addition to the enrollment study, they track live births, and try to track move-in rates in districts that have an aging population moving out and a younger population moving in. The tougher part to predict is the level of student needs. Dr. Doherty noted three big drivers are special education, pre-school, and all-day kindergarten. 90% of kindergarteners are In all-day kindergarten. It Is something the community needs and wants and is taking up classroom space. Dr. Stys stated that this year, they began working closely with early childhood partners, meeting monthly with pre-schools, and conducting outreach to try and Implement prevention measures to avoid the sped process. Ms. Herrick asked whether they use a classroom utilization matrix and how often classrooms are available. Ms. Kelley stated that building principals already do that because programs such as English Language Learning often takes place In avallable classrooms, which further emphasizes space constraints. Ms. Perry asked what the next milestone for the elementary space study Is. Dr. Doherty stated that they will be hosting more community Information sessions to present different options suggested by the consultant and gather community feedback. The next window for MSBA is not until next January. Mr. Brandt asked whether the salary line item to replace Ms. Dowd, who will unfortunately be leaving, could be reduced. Dr. Doherty stated that the position was originally posted as a business manager with a lower salary, but there were no viable applications received. The title and salary range were changed, and while a new employee may come In at a lower salary, the district may still be required to provide a mentor. He recommended the School Committee keep the salary budgeted as is. Mr. Brandt asked about the status of Chapter 70 funds. Ms. Dowd explained that they did not receive great news at a meeting with Senator Jason Lewis. The Chapter 70 formula gets recalculated each year. Those communities that are not at the foundation need increases to their funding each year to reach the foundation. Reading Is above the foundation and will only receive the"hold harmless" funds of $30 per student. Mr. Brandt asked what the priorities are in the three-year plan, and what Investments or budgeting can be done in anticipation of that plan. Dr. Doherty stated that the best long-term Investments to make are in professional development, and continue to Invest in teachers, curriculum, and technology. The better they can prepare teachers, the better they can address student needs. Other valuable investments would be in counseling, tutoring, and guidance. On a motion by Mr. Wise, seconded by Mr. Parks, the School Committee voted 5-0 to adjourn at 8:48pm. Page 12 Debt &Capital Policy: Ms. Perry reviewed the current Finance Committee policy for Debt &Capital, which devotes 5% of revenue each year to fund the Capital Improvement Plan. Mr. Brandt explained that while the policy was established to save money on maintenance every year, and 5% may have been appropriate when the policy was established in 2004, it now seems to be too much, as 5% is higher than the average 3.25% annual budget growth rate and the average 2.4% price Index growth rate. So much money has been devoted that now the Town Is looking for projects. He proposed to revise the policy to 4.5%-4.75% with a review every 5 years to determine if the threshold is still appropriate. The Committee agreed that a review of the polity may be appropriate but would prefer to address this topic when the Town Manager is present to provide more advice. Minutes: On a motion by Mr. Brandt, seconded by Mr. Moll the Finance Committee voted to approve the meeting minutes of November 6 2019 by a vote of -0 On a motion by Ms Perry, seconded by Mg. Herrick the Finance Committee voted to adjourn by a vote of 8-0 at 9.22pm Page 13