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HomeMy WebLinkAbout2020-05-18 Finance Committee Minutes Town of Reading k t C �,- ^ - i Meeting Minutes cRK ry "1G Stl Board - Committee - Commission - Council: �� jb 9: 09 Finance Committee Date: 2020-05-18 Time: 7:00 PM Building: Location: Address: Session: Open Session Purpose: Public Meeting Version: Final Attendees: Members - Present: Chair Eric Burkhart, Vice Chair Paula Perry, Nick Boivin, Jeanne Borawski, Dan Dewar, Sean Jacobs, Andrew Mclauchlan, Ed Ross Members - Not Present: Marc Moll Others Present: Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, School Superintendent John Doherty, School CFO Gail Dowd, Facilities Director Joe Huggins, DPW Director Jane Kinsella; Mark Zarrow, Marianne Downing, Phil Rushworth Select Board Members: Chair Mark Dockser, Vanessa Alvarado, Anne Landry; School Committee Members: Chair Chuck Robinson, Shawn Brandt, Erin Gaffen, Carla Nazzaro, John Parks, Tom Wise Minutes Respectfully submitted By: Jacquelyn LaVerde Topics of Discussion: This meeting was held remotely via Zoom. Mr. Burkhart called the Finance Committee to order at 7:01 pm. Mark Dockser called the Select Board to order and Chuck Robinson called the School Committee to order at the same time. Mr. Burkhart reviewed the presentation from the last meeting discussing the anticipated temporary and permanent cuts in revenue stemming from the COVID-19 pandemic. Mr. Robinson reviewed the discussion the School Committee had at their meeting following the revised budget presentation. At that meeting, Dr. Doherty and Ms. Dowd were asked if they could add one thing back in, what it would be. Their answer was the HR/Payroll Administrative Assistant. Mr. Robinson also expressed concern at the 1% COLA cut for non- represented employees and requested that the Finance Committee consider using Free Cash to reinstate the School HR/Payroll Admin position and the COLA increase for non- represented employees. Following a lengthy discussion, many members from all three committees agreed on the importance of restoring the HR/Payroll position for the schools. The Finance Committee continued the discussion on the use of free cash and the Finance Committee Reserve Fund. The current level of the Reserve Fund is $200,000. The Committee agreed that it should be increased by $100,000, at least temporarily, as there are still many unknown expenses that may arise. Page 1 1 Members agreed on using free cash to add $100,000 to the Finance Committee Reserve Fund, and $80,000 to restore the School HR Admin position and Town full time HR position. Though some members were still uncertain on restoring $88,000 for the 1% COLA increase. The Committee discussed the many arguments for maintaining the 1% COLA increase, and for keeping the 1% COLA cut, and the possible effect it may have on employee retention. Mr. LeLacheur clarified that Department Heads had a clear preference to not cut any positions, and it was a practical matter that non-union salaries was the only place to make cuts. Even if it is not reinstated at this time, it can be revisited at Town Meeting in the fall. On a motion by Ms. Perry, and seconded by Mr. Mclauchlan, the Finance Committee voted to approve Revised FY 21 budget line items B99 to F99 as presented, by a roll call vote of 8-0-0. On a motion by Ms. Borawski, and seconded by Ms. Perry, to approve budget line Items G91-141191, including restoration of the HR position and 1% COLA increase, the Finance Committee voted 4-4-0 as follows: Ms. Perry-Yes, Mr. Ross-No, Mr. Dewar-No, Mr. Jacobs-Yes, Ms. Borawski-Yes, Mr. Boivin-Yes, Mr. Mclauchlan-No, Mr. Burkhart-No. Mr. Ross made a motion, which was seconded by Mr. Mciauchlan, to approve the revised FY21 budget line items G91-M92 with the restoration of the HR position, but not the 1% COLA increase. The Committee continued their discussion. Some members voiced concern about the precedent being set by cutting the COLA for one group, but not others, and the effect on employee retention. Some members expressed concern at the unprecedented times and flexibility to address unknown expenses. Ultimately, the Committee came to a consensus to consider labor costs together. On a motion by Ms. Perry, seconded by Ms. Borawski, to amend the motion to restore the 1% COLA increase, the Finance Committee voted to accept the amendment by a roll call vote of 6-2-0, with Mr. Boivin and Mr. Mclauchlan not in favor, and to approve G91-M92 as amended by a roll call vote of 8-0-0. On a motion by Mr. Ross, and seconded by Mr. Boldin, the Finance Committee approved budget line item U99 as presented, with the 1% COLA and HR position as presented by a roll call vote of 8-0-0. On a motion by Ms. Perry, and seconded by Mr. Ross, the Finance Committee approved the revised W99 and X99 budget line items as shown by a roll call vote of 8-0-0. Mr. LeLacheur explained that the revised Article 4 shows a $935,000 reduction in Capital in FY21 that was moved out one year. On a motion by Ms. Perry, and seconded by Mr. Mclauchlan, the Finance Committee voted to accept Article 4 as shown by a roll call vote of 8-0-0. Mr. LeLacheur explained that Article 5 reflects a $20,000 decrease in Capital that is not needed, and a $35,000 increase for the Vocational School, which is needed. On a motion by Mr. Ross, and seconded by Mr. Dewar, the Finance Committee voted to accept Article 5 as presented by a roll call vote of 8-0-0. Minutes: On a motion by Ms. Perry, and seconded by Mr. Mclauchlan, the Finance Committee voted to approve the meeting minutes of March 18, 2020 by a roll call vote of 6-0- 2, with Mr. Boivin and Ms. Borawski abstaining, as they had not attended the meeting and were not yet members of the Committee on that date. Free Cash Vote: Page 12 Mr. LeLacheur ensured the Committee understood that all changes to the proposed revised budget will be funded by Free Cash, and asked them to vote on the new number of $2,018,000. On a motion by Mr. Ross, and seconded by Ms. Perry, the Finance Committee voted to use $2.018 million in Free Cash to support the FY 21 operating budget by a roll call vote of 8-0-0. On a motion by Ms. Gaffen, and seconded by Mr. Brandt, the School Committee voted by roll call vote of 5-0-0 to adjourn at 10:31 pm. Because members of the Select Board left the meeting at an undetermined time, the Select Board was effectively adjourned. On a motion by Ms. Perry, and seconded by Mr. Dewar, the Finance Committee voted to adjourn by a roll call vote of 8-0-0 at 10:33 pm. Page 1 3