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HomeMy WebLinkAbout2008-01-23 Board of Selectmen Minutes Board of Selectmen Meeting Financial Forum January 23,2008 The meeting convened at 7:10 p.m. at the Senior Center, 49 Pleasant Street, Reading, Massachusetts. Present were Chairman James Bonazoli, Vice Chairman Stephen Goldy, Secretary Ben Tafoya, Selectmen Camille Anthony and Rick Shubert, Town Manager Peter Hechenbleikner and Assistant Town Manager/Finance Director Bob LeLacheur. Also present were Finance Committee Chairman Andrew Grimes, Finance Committee Members Tom White, Barry Berman, Hal Torman, Matthew Wilson, George Hines and David Greenfield, Town Accountant Gail LaPointe, Police Chief James.Cormier, Police Business Manager Andrew Scribner-MacLean, DPW Director Ted McIntire, DPW Business Administrator Jane Kinsella, Superintendent of Schools Pat Schettini, Associate Superintendent John -Doherty, School Director of Finance and Human Resources Mary DeLai, Special Ed. Director Colleen Dolan, School Principals Joseph Finigan, Richard Davidson, Karen Callan, Catherine Giles, Craig Martin, School Committee Members Lisa Gibbs, Elaine Webb, Chris Caruso, David Michaud and Chuck Robinson, School Budget parents Gary DeRusha, Michelle Hopkinson, Christine Parks, Priscilla Hollenbeck and Robert Kraft, Library Director Ruth Urell, Library Board of Trustee Members Suzy Axelson and Karyn Storti, Reading residents Bill'Brown, Dick McDonald, Sheila Smith and Karen Janowski, and Advocate reporter Steve Vittorioso. Finance Committee Chairman Andrew Grimes called the Finance Committee Meeting to order at 7:10 p.m. The School Committee called their meeting to order at 7:10 p.m. Town Accountant Gail LaPointe began her presentation discussing the Cash Reserve policy of trying to keep 5% of net available revenue in the cash reserves for unforeseen events. She reviewed the Town of Reading's.Reserves reporting that Free Cash is approximately $3.7 million, Stabilization Fund $1.4 million. She reviewed the Budgeted Revenue amounts, and explained the increase in funds from the October Financial Forum. Major changes were Property Taxes and Other Available Funds which came in higher. Assistant Town Manager Bob LeLacheur began his presentation discussing Accommodated Costs. He reported that Accommodated Costs are $1.2 million lower than they were in October. Everyone received a handout explaining what the reasons were. He went over a few of the changes, Health Insurance, Debt & Capital, Energy Costs and Out of District Special Education. At this time, we have approximately $1.5 million more to send to the Operating Budget. It now works out that we can afford a 3.83% increase in the operating budgets. Municipal Government $ 13.504 million +3.74% School Department $ 28.247 million +3.75% Building Maintenance $ 2.482 million +5.23% Board of Selectmen Meeting—Financial Forum—January 23, 2008 —Page 2 Town Manager Peter Hechenbleikner reported that these are pretty much the final figures. He spoke of the proposed State Aid to the Town and,based on the Governor's Budget, could be about $290,000 more and another $300,000 if casino gambling goes through. He talked about using the $290,000,or should it be banked for upcoming years. Andrew Grimes discussed if the $290,000 should be included in the budget. The Town Manager explained at this time that no impacts of the proposed Addison-Wesley project are anticipated in this budget. He feels that this is a sustainable budget. The Assistant Town Manager reported that the extra State Aid gives us a modest surplus above the baseline budgets for the operating budgets, raising the 3.75%increase to just under 4.5%for the Town and schools. Selectman Camille Anthony asked about Health Insurance for retirees. The Assistant Town Manager explained the Health Insurance obligation. Reading is looking at approximately $100 million OPEB liability. An actuarial study will identify that liability later this Spring. The Pension Fund is not fully funded but is on a reasonable path. School Committee Members discussed level funding and salaries increased by 3.4%, and how that compared to the Town salaries. The Assistant Town Manager reviewed an Excel worksheet and explained the increases on the Town side. Mr. Grimes discussed whether the Town should spend the additional $290,000 from the Governor's Budget. The. floor gave their opinions regarding the additional money. Some were against using the money while others thought the money should be used especially for school issues. Mr. Grimes explained that the Town and school have to submit a balanced budget to the Finance Committee by mid-February, and it is either going to include the State Aid or not. A question was asked if the $290,000 is a guaranteed amount. The Town Manager explained that in past years, the State Aid to the Town has met or exceeded what was in the Governor's Budget. Discussions continued regarding the use of the State Aid. The Town Manager's recommendation is to utilize what is in the Governor's Budget. Next order of business was for the Finance Committee to make its recommendations. Finance Committee Members Hal Torman are in favor of putting it in the Budget, David Greenfield will support it, and Barry Berman and Matt Wilson will also support it. A suggestion was made to take a few minutes so each committee can discuss the State Aid amongst themselves. After the break Mr. Grimes asked each committee their decision. The School Committee unanimously supports using the$290,000 in the Budget. The Board of Selectmen caucused on whether the additional $290,000 available from the Governor's proposed budget, not including revenues from casino gambling, should be used to balance the FY 2009 Budget. They unanimously agreed that this should be included, and this advice would be given to the Finance Committee. Board of Selectmen Meeting—Financial Forum—January 23 2008—Page 3 Mr. Grimes understands everyone's concerns and is in favor of including the State Aid in the Budget. Finance Committee Member George Hines expressed his view that the additional aid should NOT be recognized. The relationship between the current Governor and the legislature does not suggest that the Governor's Budget will be a reliable indicator. Using a 5% increase (which is a long-term historical average) will be seen as aggressive whenever the actual number is lower, and the Town is forced to use Free Cash to balance the budget. On motion by Grimes, the Finance Committee voted 6-1-0 to use the State Aid and the model as shown as recommendations for the Town and the School, with Hines opposed. At this time,the School Committee adjourned the meeting of January 23,2608 at 8:15 p.m. A_motion by Anthony seconded by Schubert to adiourn the meeting of January 23, 2008 at 8.10 p.m. was approved by a vote of 5-0-0. Respectfully submitted, Aecretary