HomeMy WebLinkAbout2003-10-09 Board of Selectmen Minutes Joint Meeting of Board of Selectmen,Finance Committee
and School Committee
October 9,2003
The meeting convened at 7:30 p.m. at the RMLD Audio/Visual Room, 230 Ash Street,
Reading, Massachusetts. School Committee Member Robert Spadafora called the School
Committee to order, Board of Selectmen Chairman George Hines called the Board of
Selectmen to order, and Finance Committee Member Catherine Martin called the Finance
Committee to order. Present were School Committee Members John Carpenter, John
Russo, Robert Spadafora and Elaine Webb, Board of Selectman Chairman George Hines,
Vice Chairman Richard Schubert, Members, Camille Anthony and Matthew Cummings,
Finance Committee Chairman Richard McDonald, Members Paul Bolger, Andrew
Grimes, Catherine Martin, Robert LeLacheur, Charles Robinson, Harold Torman and
Marcie West. Also present were Superintendent of Schools Pat Schettini, Assistant
Superintendent Dennis Richards, Town Manager Peter Hechenbleikner, Town Treasurer
Beth Klepeis and Town Accountant Richard Foley.
Town Manager Peter Hechenbleikner reviewed the projected general fund revenues for
FY 2005 through FY 2009. He asked that the group pay careful attention to the
footnotes. He discussed property taxes, local revenues from sources other than property
taxes and intergovernmental revenue.
George Hines stated that he had a problem including anything from Pearson and the
Landfill Phase 2 and Moore Phase 2. He stated that if we are not already in the permit
process,projected revenues should not be included.
Matthew Cummings agreed with George Hines regarding not including any revenue from
projects not in the permit process.
Catherine Martin agreed with George Hines and Matthew Cummings and stated her
opinion that we should be conservative in our estimates. She confirmed with the Town
Manager that he did not take into consideration there would be more money to invest
because of the school projects.
The Town Manager confirmed that he did not take into account money for the school
projects. He stated that he level funded State Aid to estimate revenue for the next five
years.
Matthew Cummings stated that he would not assume for at least FY 2005 flat State Aid
and he recommended a decrease be assumed.
After discussion, it was decided that State Aid would be on the agenda for the meeting
with the legislators that will be scheduled for some time in November.
Board of Selectmen Meeting—October 9, 2003 -Page 2
The Town Manager discussed free cash. He stated that the only way to estimate free cash
is historically.
Camille Anthony asked what figure was used for RMLD for modeling purposes, and the
Town Manager stated that he used the increase of 2% CPI.
John Russo asked why there was no figure in the Stabilization Fund. The Town Manager
stated that would be established this Fall at Town Meeting, and the goal for cash reserves
is 5%of the operating budget.
The Town Manager reviewed the projected expenses. He again asked the group to pay
special attention to the footnotes. He stated that for the model, he used 4% salary
increase for Town employees which included salary and step increases and he increased
expenses by 2.5% all five years -- the school side used 6.5%. He also stated that the
6.5% was determined by taking the average increase in the School Department budget
over the last ten years. He noted that the operating costs for the new school were not
included in the projections. He discussed the rising cost for health benefits.
Superintendent of Schools Pat Schettini discussed the estimated operating costs for the
new school for FY 2005 and FY 2006. .He noted that the impact on the FY 2005 Budget
is estimated at $280,000 for additional bussing of Barrows' students to the new
elementary school. He distributed a chart showing operating expenses, and noted that
there would be one year where maintenance contracts are not required because of the
warranties.
Camille Anthony asked if there would be any cost for Barrows' utilities during
construction. Pat Schettini stated that utilities would be taken over by the contractor
during construction.
Pat Schettini stated that the number of busses needed for FY 2005 was not a firm number.
He also stated that the School Department is doing a detailed route analysis, and the
School Department would need to go out to bid for the transportation services.
Matthew Cummings asked if the increase after FY 2005 was still projected at
approximately $145,000. Pat Schettini stated that the School Committee needs to have
additional discussion on the operation of the new school but he is estimating personnel
costs at $325,000. He also stated that personnel and other operating costs would total
$438,453.
Robert Spadafora noted that the previous administration presented a net cost which
deducted the cost of maintenance to the portables, a decrease in bussing and electrical
expenses.
Camille Anthony stated that the Selectmen should move forward on getting assistance
from RMLD on electrical rates. She also stated that with the increase in operating costs
for next year for the schools,the projected deficit is $1.2 million.
Board of Selectmen Meeting—October 9, 2003 -Page 3
Richard McDonald stated that the School Department should be looking at 4%to 4.5%
rather than 6.5%
Matthew Cummings agreed with Richard McDonald. He stated that the increase in
operating costs for the new school should be taken back to the voters.
Robert Spadafora stated that the voters have affirmed the decision for the fifth elementary
school on three different occasions, and he thought that it was clear there would be an
increase in the budget to operate an additional school.
Matthew Cummings stated that the funds have to come from somewhere, and the School
Department may have to pare back its budget.
John Russo requested that a more liberal estimation be done by the Town Manager.
George Hines disagreed with John Russo. He indicated that the conservative estimate is
closer to reality.
Camille Anthony stated that during negotiations, the Selectmen and School Committee
members must be cognizant of what the Town can afford.
Paul Bolger stated that we need a strategy to keep expenses at what we estimate. He also
stated that we might need to look at independently funding some programs like Hamilton
Wenham did.
John Carpenter noted his concern over the increase in expenses such as health insurance
and over the prospect of cutting more programs.
The Town.Manager stated that he would spend more time solidifying the numbers based
on what the Boards indicated this evening and come back to the Boards with an outline
for them to review.
Elaine Webb noted a misprint in the local paper regarding the district's MCAS score and
per pupil spending. She stated that Reading is rated 20th in the State on the MCAS scores
while its per pupil spending is ranked 227th.
Catherine Martin stated that the Finance Committee would discuss the Warrant Article on
the Stabilization Fund at the next Finance Committee Meeting.
The Committees agreed that the next Financial Forum Meeting would be November 20th
On motion by McDonald seconded by Robinson, the Finance Committee voted to
adjourn the meeting of October 9,2003 at 8:45 p.m. by a vote of 8-0-0
t
On motion by padafora seconded by Carpenter, the School Committee voted to
adjourn the meeting of October 9,2003 at 8:45 p.m. by a vote of 4-0-0
Board of Selectmen Meeting—October 9, 2003 -Pam
On motion by Cummings seconded by Schubert, the Board of Selectmen voted
adjourn the meeting of October 9,2003 at 8:45a m. by a vote of 4-0-0.
R ppectfully submitted,
ti'Jet `
Secretary