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HomeMy WebLinkAbout2004-10-21 Board of Selectmen Minutes Meeting of the Finance Committee, Board of Selectmen and School Committee October 21, 2004 For ease of archiving, the order that items appear in these Minutes reflects the order in which the items appeared on the agenda for that meeting, and are not necessarily the order in which any item was taken up by the Board. The meeting convened at 7:37 p.m. in the Multi-Purpose Room at Coolidge Middle School, 89 Birch Meadow Drive, Reading, Massachusetts. Present were Finance Committee Members Jim Francis, Hal Torman, Michelle Williams, Bob LeLacheur, Richard McDonald, Paul Bolger, Andrew Grimes, Marsie West and Chuck Robinson. Also present were Selectmen Richard Schubert, Camille Anthony, Gail Wood and George Hines, Town Manager Peter Hechenbleikner and Paula Schena, School Committee Members Carl McFadden, Pete Dahl, Lisa Gibbs and Rob Spadafora, Superintendent of Schools Pat Schettini, Assistant Superintendent of Schools Dennis Richards, Business Manager Mary DeLai, Town Accountant Richard Foley, Town Treasurer Beth Klepeis and Bill Brown. Review Status of SBA Changes and the Effect on Debt Sales — Town Treasurer Beth Klepeis noted that the State Treasurer's Office is overseeing the SBA now. They have formed a Board that will meet over the next two to three months. All projects on the priority list will receive funding at the expected percentage reimbursement. The waiting period will be eliminated—once the project is approved,we will get funding. The only problem with that is that an audit needs to be done in order to be reimbursed at the proper rate. The State is five years behind in audits and they don't even have an office yet. The reimbursement will be 3/4 of the percentage that the Town is supposed to receive and then after the audit, the Town will receive the remaining 25%. Towns will not be reimbursed interest incurred after receiving the grant. If bonds are issued after July 1, 2004, then the State will not reimburse interest. If the bonds were issued before July 1, 2004, the interest will be reimbursed. Beth Klepeis noted that the plan to address the debt issues in January, 2005 are to rollover the BANS for the State's 66% share of the elementary schools, and to bond for the Town's share of the elementary schools. Rollover the BANS for the $650,000 in the High School debt is not bonded. Don't issue BANS on the remaining High School debt until we see what happens with the State, Finance Committee Member Bob LeLacheur asked about the status of the older projects. Beth Klepeis noted that the State indicated that they will pay but might make a new plan. The State might have towns hire auditors under the State's auspice. Beth Klepeis noted that the reimbursement rate will be dropping for new projects in the future. Status of Building Projects — Superintendent of Schools Pat Schettini reviewed the status of school projects. He noted that the Wood End School will be complete as of January 1, 2005. A total of $11.7 million was allocated and $634,154 of that was transferred into the Barrows' project. The playground and sprinkler system will be installed. Finance Committee,Board of Selectmen and School Committee Meeting—October 21 2004—Page 2 The Barrows' project completion date is July 2005. He noted that $7.1 million was allocated for this project and after the transfer into it, the total is $7.9 million. Pat Schettim noted that $54.3 million has been allocated for the High School project.and we will be reimbursed $53 million. The new math/science building is under construction along with the locker room addition to the field house and the artificial turf. Selectman Gail Wood asked about the money that was transferred into the Barrows' project. Pat Schettini noted that it was Circuit Breaker money that went into Special Ed, and that freed up money that went to free cash. School Committee Member Rob Spadafora noted that the Town has put the question of sidewalks for the Wood End School to the voters twice and it has failed twice. He feels that this is a safety issue and requested to discuss some solutions with the Town Officials. Selectman .Richard Schubert noted that there are issues of access to that site and that area is being looked at. He also noted that if it goes on the ballot and fails, then we would have to take the money from somewhere else. The Town Manager noted that there are fire trucks and ambulances in the Capital Improvements Program per the direction of the Finance Committee. Finance Committee Member Dick McDonald noted that the Town used to have sidewalks and curbs in the Capital Improvements Program and it needs to be put back in. Selectman Camille .Anthony noted that the one time amount from the State was supposed to go into the Stabilization Fund and some of that money should be used for sidewalks. The Town Manager indicated that money was used to balance this year's budget. School Committee Member Pete Dahl noted that sidewalks are a safety issue and perhaps the Town should look at grants. Finance Committee Member Jim Francis asked if sidewalks are a higher priority than putting the money back into the schools, and Pete Dahl indicated that it was not. Bill Brown noted that there is a law on the books that allows abutters to build a sidewalk. Rob Spadafora asked if there was a way to fund the sidewalks, and the Town Manager noted that there isn't enough money for the requests that we already have. He also noted that we will be getting a check for $250,000 from the Inwood project for traffic mitigation. Chapter 90 monies can be used for sidewalks if the road is being reconstructed. Selectman Richard Schubert noted that the South Street residents want sidewalks too. This is a bigger issue than just for Wood End. Jim Francis noted that the School Department should look at sidewalks when doing redistricting and arrive at a correct number. Finance Committee,Board of Selectmen and School Committee Meeting—October 21,2004—Page 3 Revenues Town Accountant Richard Foley noted that the $200,000 increase over the original supplemental aid was a one time payment. He reduced the local revenues by $100,000 to balance with Town Meeting votes. School Committee Member Carl McFadden noted that the Medicaid reimbursements amount of $75,000 is low. Pat Schettini noted that the schools get reimbursed by Medicaid if they give therapy, etc. It generated $74,000 last year in a short amount of time and they hope to double it this year. Beth Klepeis noted that we generate free cash by being conservative in estimates. Jim Francis indicated that he would like to see the results of redistricting and get all the information before deciding on the sidewalks. Town Meeting The Town Manager noted that the first night of Town Meeting will be at the IMAX Theater at Jordan's. He asked if the Finance Committee wanted the next Financial Forum in January, and Jim Francis indicated that March would be better. Selectman Camille Anthony asked if there were any issues with the Charter and building maintenance, and if building maintenance has to be under the schools for Ed Reform. Carl McFadden noted that Gary Brackett was supposed to get back to him but he never did. Jim Francis noted that T-TAC was on the agenda for tonight. The Town Manager noted that they are not ready yet. They are looking at the network over the power lines and Verizon is also doing fiber optic. A motion by Anthony seconded by Wood to adjourn the meeting of October 21, 2004 at 9:25 p.m. was approved by a vote of 4-0-0, and the Board of Selectmen adjourned. Res ectfully submitted, Secretary