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HomeMy WebLinkAbout2007-10-17 Board of Selectmen Minutes Financial Forum Board of Selectmen Meeting October 17, 2007 The meeting convened at 7:20 p.m. at the Senior Center, 49 Pleasant Street, Reading, Massachusetts. Present were Board of Selectmen Chairman James Bonazon and Selectmen Camille Anthony and Ben Tafoya, Finance Committee Chairman Andrew Grimes, Vice Chairman Marsie West, Finance Committee Members Tom White,.Barry Berman, Hal Torman and David Greenfield. Also present were Town Manager Peter. Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Town Accountant Gail LaPointe, Fire Chief Greg Burns, DPW Director Ted McIntire and Jane Kinsella, Superintendent of Schools Pat Schettini, Associate Superintendent John Doherty, Human Resources Director and Business .Director Mary DeLai, School Committee Members Lisa Gibbs, Elaine Webb, David Michaud and Chuck Robinson, and Chronicle reporter Melissa Russell. The meeting began with Warrant Article 11 (a $4.5 million sidewalk and curbing debt exclusion). The Town Manager explained that he receives several calls per year for sidewalks and curbs. He reported that the Board of Selectmen thought this was a good idea but it needs more discussion, and they did not vote on Article 11. Some examples for the need of sidewalks and curbing are Hunt Park, Washington Park and Sturges Park where there is a need for safety. The cost would be $450,000 per year for 10 years. The cost for the average owner would be approximately$50 per year. Finance Committee Member Hal Torman asked if there was a prioritized list. The Town Manager explained that a plan is being worked on and will be fine tuned over the Winter. They would start with the schools,parks and the high traffic areas. Finance Committee Vice Chairman Marsie West mentioned that sidewalks were once done with a betterment. The Town Manager explained that betterments for sidewalks have not been done in 20 years. He expressed how pleased he was with the Franklin 'Street project. Franklin Street residents are very happy with the completed project. Finance Committee Member Barry Berman asked if the Town would. consider a betterment. The Town Manager explained that it would have to be a forced betterment, and the community does not like to do that. He thinks the community would be receptive to this, and it will have a huge positive impact. The School Committee called their.meeting to order at 7:35 p.m., and the Board of Selectmen called their meeting to order at 7:35 p.m. The Assistant Town Manager reviewed the budget process FY 2008 goals that are listed on the hand out. He reported that they have accomplished most of the goals. He reviewed the FY 2009 budget calendar as well as the FINCOM 5% reserves policy and the FINCOM 5% net debt and capital policy. He noted that the latter was strongly complemented by many members of the community over the past year. Financial Forum—Board of Selectmen Meeting—October 17, 2007—Page 2 Town Accountant Gail LaPointe gave a summary of Revenues. ■ Property Tax L —built on last years levy plus new growth. ■ New Growth — What has been the average for the last 10 years, took out the big projects; i.e., Walkers Brook. Fiscal 2008 not finalized. ■ Abatements and Exemptions - a 2.5%increase as per a previous agreement. School Committee Member Chuck Robinson asked where the 2.5% increase for abatements and exemptions came from, and Gail LaPointe reported that was an agreement with the Assessors. Local Receipts - Excise, charges for Services, and Investments are the largest components of local receipts. Gail LaPointe explained that the 5% formula increase for the 2009 Budget would be unwise for local receipts. A five year average was used instead. This resulted in a 1.3%increase from FY 2008 to FY 2009. Gail LaPointe gave a summary of State Aid and MSBA School Construction Reimbursement. She reported that there is an increase in funds for the FY 2009 Budget of$1,959,959. The Assistant Town Manager reviewed the estimated Accommodated costs as listed in the hand-out. Benefits - 9%-Health(12% includes enrollment increase) Capital ­ 5%increase—modest Net Debt- 5%'-modest Energy- 10%-may be too low Financial - No change Sp. Ed. - 10 %net Vocational - 5%- conservative—increased enrollment Misc. - Rubbish—fixed contract for 3-4 years Snow & lee- $50,000 This totaled a$1,8 million increase, leaving less than $200,000 for the operating budgets, or a 0.375%increase. Moving on to the budget process, Finance Committee Chairman Andrew Grimes explained the procedure. They are going to follow essentially the same policy as last year: 1. The Baseline Budget is defined as the exact same work force as today, rolled forward to FY 2009. If there are unsettled labor contracts, the assumptions used should be explained.,In addition, expenses for the three functional departments (Municipal Government, School Department, Facilities) should be mechanically allowed to increase 2% each for purposes of this budget. Individual line items may increase or decrease as needed, until a 2% total is achieved across the functional departments. Financial Forum—Board of Selectmen Meeting—October 17, 2007—Page 3 2. After the Baseline Budget is built, Budget Lists should be made that explain differences from this budget. The first list should be one that balances the budget against available revenues — this figure is +0.375% as of today. Other Budget Lists may be made to explain other scenarios. For example, one list may attempt to explain level service - the functional department should be prepared to explain this meaning in detail. Selectman Camille Anthony asked about health care. She mentioned that two years ago, health care went out to bid and we did very well, and she wanted to know what happened last year. The Town Manager explained that last year, our 6.4%increase was very good compared to the range of MIIA communities (which varied from +6% to +16%). He explained that when the new State GIC Program has been awarded, the Town will study it in detail to see if there are advantages. Selectman Anthony also mentioned that .she was impressed with Human Resources Director and Business Director Mary DeLai's presentation. Mary DeLai spoke in support of the new software program, MUNIs, for the budget format for the School Department. She mentioned that she will also be able to more easily report to the DOR and the DOE, and that the budget format may change as a result. Andrew Grimes moved on to Policy Discussion and opened the discussion to the floor. The following items were discussed: ■ Accommodated Cost—Health Insurance - This year, we are at 12%because of an increase in enrollment forecast to be+3%plus 9%price inflation. ■ Sidewalks - How much control will there be over the exact projects? If approved at Town Meeting,then it is up to the residents at a Town-wide vote. ■ The Town may need to have a Prop 2 1/2 override within a couple of years. A suggestion was made to move Town Meeting to the end of May to have more accurate budget numbers. The Town Manager noted that there is not much of an advantage and at this time;it is too late to change the dates of Town Meeting for this .year. Another suggestion was to move the January Financial Forum to the end of the month so everyone will have more time to get their budgets together, and the schools will have a better idea of enrollment. This was agreed upon so the January Financial Forum will take place on the 23rd of the month. On a roll call vote, the School Committee Members voted to 14o into Executive Session at 9:00 p.m. Article 6 - On a motion by Grimes seconded by West, the Finance Committee voted to recommend adding$500,000 to the stabilization fund by a vote of 6-0-0. Financial Forum—Board of Selectmen Meeting—October 17,2007—Page 4 At this time, there was a discussion between Finance Committee Members and the Board of Selectmen regarding Article 11 — Sidewalks, and Article 12 - CPA. Some issues that were brought up were: Is this the right time to go to residents for more funds, and are we asking for too much-the overview needs more discussion. Members from both committees feel that the community ,deserves a certain level of service, and a method to get Town Meeting Members more involved. A suggestion was to use the new website to put out more information, and also inform members of meetings to attend. The Town Manager feels that the Selectmen think Article 11 and Article 12 are good ideas but have to be put in concept to the big picture. Article 11 - On a motion by Greenfield seconded by West, the Finance Committee voted to recommend the subiect matter of.Article 11. The motion failed by a vote of 2-4-0. Tennis Courts — There are three Articles related to the tennis courts: Article 4, Article 8 and Article 9. This is on hold until the November 5th Finance Committee Meeting. At that time, they will have a full cost estimate and recap of how much non-Town money there is available. The following assignments were handed out: Article 12 Marsie West Article 11 Andrew Grimes Article 3 Hal Torman Article 4 Barry Berman Article 6 David Greenfield Article 8 Tom White Article 9 Tom White Article 10 Marsie West On a motion by West seconded by Grimes, the Finance Committee voted to adjourn their.meetinIZ of October 17, 2007 at 10:00 p.m. by a vote of 6-0-0, and the Board of Selectmen ended their session by a vote of 3-0-0. Respectfully submitted, 'S'ecretary