HomeMy WebLinkAbout2020-10-21 Finance Committee Minutes KEGLIVED
TOWN CLERK
Town of Reading R : ^-, 0 ! ":G, MA.
Meeting Minutes 0-
0 2421 NOV -5 AM 5: 21
Board - Committee - Commission - Council:
Finance Committee
Date: 2020-10-21 Time: 7:00 PM
Building: Location:
Address: Session:
Purpose: Financial Forum Version: Final
Attendees: Members - Present:
Chair Ed Ross, Vice Chair Dan Dewar, Nick Boivin, Eric Burkhart, Marianne
Downing, Sean Jacobs, Andrew Mclauchlan, Mark Zarrow
Members - Not Present:
Jeanne Borawski
Others Present:
Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, Fire
Chief Greg Burns, Police Chief David Clark, DPW Director Jane Kinsella,
Facilities Director Joe Huggins, School Superintendent John Doherty, School
CFO Gail Dowd; Angela Binda; Select Board Members: Chair Mark Dockser,
Vanessa Alvarado, Carlo bacci, Karen Herrick; School Committee Members:
Chair Chuck Robinson, Shawn Brandt, Erin Gallen, Carla Nazzaro, John
Parks, Tom Wise
Minutes Respectfully Submitted By: Jacquelyn LaVerde
Topics of Discussion:
This meeting was held remotely via Zoom.
Chair Ed Ross called the Finance Committee to order at 7:01 pm. Chuck Robinson called
the School Committee to order at 7:01 pm. Mark Dockser called the Select Board to order
when a quorum was reached at 7:04 pm.
Revenue Update:
Mr. LeLacheur briefly reviewed projected FY21-FY22 revenues. Property taxes still include
new growth. The Governor finally filed a budget last week that includes $10,834,809 for
School aid Chapter 70 and $3,442,525 for local aid. Circuit Breaker was in the budget with
$145,000 in SPED costs for Reading. There is a projected 3% increase in revenue for FY 21
and a 0.9% projected increase for FY22.
Accommodated Costs:
Accommodated costs are projected to increase 3.9%. The Retirement Board voted to
decrease their assessment this year, with future increases pegged at 6.5% per year until
the full retirement obligation is met. OPEB was decreased $100,000 to balance the budget
this year. MIIA has provided a one-time premium reduction because the Town's use of
health services has decreased due to COVID. Unemployment Insurance is impossible to
predict and there has been a lot of unemployment fraud. Any Unemployment Insurance
above the typical payments will be covered by the CARES Act. Health insurance for next
year is not yet known.
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Debt and Capital is projected to increase 9% from FY21 to FY22. Capital was cut to 4.2%
this year, but could come back to 4.6% at Town Meeting. FY22 Capital requests are
currently budgeted at $3.2 million, which is in accordance with the FINCOM policy of 5%.
Members of the assembled Committees offered their opinions on different priorities for
Capital Projects.
Operating Budgets under different Free Cash Scenarios and Discussion about Free
Cash and Proiected FY22 Budgets:
Mr. LeLacheur explained that it would be helpful for the Finance Committee to choose a
target amount of Free Cash to use as it would provide guidance in the next few weeks to
develop the operating budget, and help with upcoming negotiations with unions.
The assembled Committees discussed the use of Free Cash in the upcoming budgets. The
Finance Committee agreed that they would like to see different projections centered around
using $2.25 million of Free Cash and the impact it will have on future operating budgets.
On a motion by Mr. Bacci, and seconded by Ms. Herrick, the Select Board voted 4-
0-0 to adjourn at 8:40 pm.
Roll call vote: Carlo Bacci-Yes, Karen Herrick-Yes, Vanessa Alvarado-Yes, Mark
Dockser-Yes.
On a motion by Mr. Wise, and seconded by Mr. Brandt, the School Committee voted
6-0-0 to adjourn at 8:40 pm.
Roll call vote: Shawn Brandt-Yes, Carla Nazzaro-Yes, John Parks-Yes, Erin Gaffen-
Yes, Tom Wise-Yes, Chuck Robinson-Yes.
Topics for the next scheduled meeting on November 4th, 2020 will include a discussion on
free cash and the operating budget.
Meeting Minutes:
On a motion by Mr. Dewar, and seconded by Mr. Mclauchlan, the Finance
Committee voted to accept the meeting minutes of October 7, 2020 by a roll call
vote of 8-0-0.
Roll call vote: Dan Dewar-Yes, Andrew Mclauchlan-Yes, Nick Boivin-Yes, Marianne
Downing-Yes, Mark Zarrow-Yes, Eric Burkhart-Yes, Sean Jacobs-Yes, Ed Ross-Yes.
On a motion by Mr. Mclauchlan and seconded by Mr. Dewar, the Finance
Committee voted 8-0-0 to adjourn at 8:48 pm.
Roll call vote: Dan Dewar-Yes, Andrew Mclauchlan-Yes, Nick Boivin-Yes, Mark
Zarrow-Yes, Marianne Downing-Yes, Eric Burkhart-Yes, Sean Jacobs-Yes, Ed Ross-
Yes.
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