HomeMy WebLinkAbout2023-03-01 Finance Committee MinutesRECEIVED
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Board - committee - Commission - Council:
Finance Committee
Date: 2023-03-01 Time: 7:00 PM
Building: Reading Town Hall Location: Select Board Meeting Room
Address: 16 Lowell Street Session: Open Session
Purpose: General Business Version: Final
Attendees: Members - Present:
Vice Chair Jeanne Borawski, Joe Carnahan, Geoffrey Coram, Marianne
Downing, Joe McDonagh, Emily Sisson, Mark Zarrow
Members - Not Present:
Chair Ed Ross
Others Present:
Town Accountant Sharon Angstrom, Town Manager Fidel Maltez, School
Superintendent Thomas Milaschewski, School Finance Director Susan Bottan,
School Committee Chair Shawn Brandt, School Committee Member Tom
Wise, Karen Gately Herrick (remote)
Minutes Respectfully submitted By: Jacquelyn LaVerde
Topics of Discussion:
This meeting was held in-person in the Select Board Meeting Room of Town Hall and
remotely via Zoom.
Acting Chair Jeanne Borawski called the meeting to order at 7:01 pm.
Liaison Reports:
There were no liaison reports.
Discussion on Protected Use of Free Cash:
Town Accountant Sharon Angstrom reviewed the late adjustment made to the FY24
proposed budget. Funds were reallocated from gas usage to fund Full Day Kindergarten, as
the known gas Increase will not be in effect until the last two months of the fiscal year. Ms.
Angstrom led a discussion on the projected use of free cash and revenue regeneration. The
free cash usage for FY24 is 4%, but currently projected for 2.75% In FY25, then 2.8% in
FY26. The reserve policy is 7% of the operating budget, but members of the Committee
agreed that it should be 10%.
Budget Presentation: FY24 school Committee Recommended Budget:
Director of Finance Susan Bottan, Superintendent Thomas Milaschewskl, School Committee
Chair Shawn Brandt, and School Committee Member Thomas Wise were present to review
and discuss the proposed FY24 School Department budget, including financial summary,
budget development process and timeline, Investment priorities, and strategic Investments
and objectives.
Back in October, the Finance Committee provided a guideline of a 3.75% increase over
FY23. But the Town Manager and staff Identified savings in utilities, accommodated costs,
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and community priorities to absorb some of the cost of Full -Day Kindergarten, which
resulted In the Finance Committee revising their budget guidelines to 4.29% for FY24.
The total FY24 School Department proposed budget is $54,006,623. Considerations in
developing the budget include aligning investment priorities with strategic objectives;
meeting all personnel, non -personnel, contractual obligations, and legal mandates; and
rearranging funds to support priorities and maximize resources.
Ms. Bottan reviewed the proposed budget broken down by cost center: Administration
$1,311,157; Regular Day $31,954,246; Special Education $16,716,166; Districtwide
Services (Athletics, Extracurricular, Health Services, Technology) $2,380,272; and School
Facilities $1,644,782.
Dr. Milaschewski noted future opportunities in the budget including full day kindergarten,
elementary school building project, and Innovative High School pathways, such as computer
science, digital media, and engineering. The goal is to ensure sustainability by creating a
strategic multi-year financial plan, anticipating expenses, leveraging other sources of
funding, ensuring the personnel budget is most effectively allocated entering into contract
negotiations next year, and Investing in staff development that ultimately results in future
savings.
Financials are assessed during the school year to determine savings as early as possible
which are deployed to shift student outcomes in the short term.
Future Meetina Agendas:
The next meetings are scheduled for March 8th, March 15th, and March 22"d, If needed.
Town Departments will make their presentations on the 8th and 15th. If there is time on the
15th, the Committee will vote on the FY24 Budget and Annual Town Meeting Warrant
Articles.
Meeting Minutes:
On a motion by Mark Zarrow, and seconded by Emily Sisson, the Finance
Committee voted 7-0-0 to approve the meeting minutes of January 18, 2023, as
presented.
On a motion by Mark Zarrow, and seconded by Emily Sisson, the Finance
Committee voted 7-0-0 to adjourn at 9:07 pm.