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HomeMy WebLinkAbout2001-01-16 Board of Selectmen Minutes Board of Selectmen Meeting January 16, 2001 The meeting convened at 9:10 p.m. in the Reading Municipal Light Department Conference Room, 230 Ash Street, Reading, Massachusetts. Present were Chairman Matthew Nestor, Vice Chairman George Hines, Secretary Camille Anthony, Selectman Matthew Cummings, Town Manager Peter Hechenbleikner, Assistant Town Manager Russell Dean, and the following list of interested parties: Bill Brown, Robert LeLacheur. Discussion/Action Items Budget Discussion - The Town Manager reviewed the latest budget model. The latest version shows debt savings and deferral of debt service on the new elementary school based on a revised construction schedule. This savings is $856,571. We now have a shortfall estimated at $2,112,564. Based on the FY 2002 budget as proposed, the Town Departments make up 30.8% of the total, Building Maintenance is 7.4% of the total and Schools are 61.8%. This is the make- up of the "discretionary"portion of the budget. Selectman Matthew Cummings asked about the $12,000 in the school SPED budget for "retirement plus." Is this included in the school budget going forward? The Town Manager stated that it was in the budget-- it had to be projected forward. The Town Manager reviewed budget options for the Selectmen. Option 1 includes a debt exclusion for $1.243 million. There still would be a shortfall using this model. We have designed a model that reduces budgets to meet that shortfall. Option 2 provides for an override that does not pass. Under Option 1, capital would be reduced proportionately. Under Option 2, capital would be reduced by an additional $300,000. Selectman Matthew Cummings pointed out that these are not the only options. Agreement has not been reached by the Selectmen on anything. The Town Manager suggested that if there were other models that the Board would like to see, we can do it. Selectman Matthew Cummings stated that when the process is done, we'll make a decision. Chairman Matthew Nestor asked if the model assumes the sale of the new school debt is put off? The Town Manager indicated that it was. Selectman Matthew Cummings asked if we had a read on expenditures to date for snow and ice. The Town Manager stated that he would get the latest figures. Vice Chairman George Hines asked if we are still assuming use of$600,000 in free cash. The Town Manager stated that the budget models provide for that. Selectman Matthew Cummings asked if Richard Foley had concerns about Chapter 70 aid and the way it was projected. The Town Manager stated that we projected at an increase of$175 per pupil, the MMA has models showing Reading receiving $208 per pupil additional. Based on our conversations with Representatives Brad Jones and Paul Casey and Senator Richard Tisei, it was indicated that $175 was a good figure to use. That and additional lottery aid were used as the State aid projection. Board of Selectmen Meeting—January 16, 2001 —Page 2 Selectman Matthew Cummings stated that he was concerned about losing revenue because of the State income tax cut. The Town Manager stated that there are two sides to the issue. The State is sitting on a big surplus. Selectman Matthew Cummings asked about capital spending two years ago. What did we spend and wasn't there a reduction in capital spending? The Town Manager stated that he wasn't sure. We will check on this --he's pretty sure something was deferred. The Town Manager reviewed the guidelines of the capital plan. Work will be done in the coming days but the capital appropriation for FY 2002 is balanced. Other information in the Selectmen's packet is the Superintendent of School's proposed reductions. The Town Manager reviewed cuts of Town Departments. These came from the Department Heads. We can go over these --they are Option 1 and Option 2 cuts. Selectman Camille Anthony asked about the Saugus River Drainage project. Is this planned to be funded as an appropriation? The Town Manager indicated that this would be funded by a capital exclusion, as would all larger capital projects. Selectman Matthew Cummings asked about road work on Grove, Haverhill and Washington Streets. Are we planning an overlay and what is the extent of the work? We will get information on the extent of the projects. Selectman Matthew Cummings asked about Chapter 90 funds. The Town Manager stated that they would be used for Franklin, Pearl and other streets. Selectman Matthew Cummings asked about Fire headquarters and the flooring replacement. The Town Manager described the project. Selectman Matthew Cummings asked about capital maintenance in the schools. Are window replacement, carpeting, etc. going to be done? The Town Manager described the capital plan and how it has evolved over time. There is money for major reconstruction of the schools in the Town's plan but not of the things that Selectman Matthew Cummings described. The School Department has not developed a plan for such items yet. Selectman Matthew Cummings stated that capital needs will be there for the schools. The Town Manager stated that we are deferring a lot of projects to get the capital program under the $800,000 per year guideline for expenditure from appropriations. Requests from appropriation for capital in FY 2002 were $1,800,000. There is no money for GIS for a couple of years. We are, however, funding the Pavement Management Program. Selectman Camille Anthony asked if we purchase used vehicles from RMLD? The Town Manager indicated that we have three right now. Selectman Matthew Cummings stated that if we want to do the full CIP, we're talking $12-14 million in capital overrides to accomplish this. Board of Selectmen Meeting—January 16, 2001 —Page 3 Selectman Matthew Cummings asked if there has been discussion as to why 2003 is not a good idea for Killam. The High School is $67 million. The Town Manager stated that an investment in roads of$850,000 per year is not inappropriate. We are looking at$107 million over 10 years. Vice Chairman George Hines asked if the streets selected for an overlay or reconstruction are already on a_priority list? The Town Manager reviewed the list of priorities for roads. This is what staff has pulled out as high priority projects. Vice Chairman George Hines stated that Howard Street should be a priority. He has driven on it and it is in bad shape. Selectman Matthew Cummings stated that parts of South Street are a problem too. The Town Manager stated that the projects have contingencies built into them. He will look at what is being used as inflators in the outgoing years. Chairman Matthew Nestor asked about the total amount for overlay/reconstruction? The Town Manager looked and stated that he thought it was $281,000 of annual appropriation and $310,000 of Chapter 90 funds. Selectman Matthew Cummings asked about the MWRA buy-in. Is this a gross number or less expected developer contributions? The Town Manager stated that it was the gross number -- we'd get a revised number for the Board. Chairman Matthew Nestor indicated that some groups had suggested dropping the capital of $758,200 altogether from the budget in order to balance it for FY 2002. The Town Manager stated that there are two groups, drama parents and band parents, who have looked to add to the capital plan. These requests aren't entirely capital, and portions of the drama request could be funded as part of the High School renovation project. Chairman Matthew Nestor asked what the Board was supposed to accomplish tomorrow night? The Town Manager stated to finish the budget with the different models. He needs a decision to prepare a presentation to the Finance Committee. Options that need to be considered tomorrow night should be determined. Selectman Matthew Cummings asked about decisions tomorrow night. The Town Manager stated that there would need to be 4 votes from the 5 Member Board of Selectmen to include a debt exclusion or a capital exclusion on the ballot. Selectman Matthew Cummings asked if the School Committee would be done with their budget process? Chairman Matthew Nestor asked under Option 1 reductions, would we get there? The Town Manager stated yes we could balance with those reductions and a debt exclusion. Chairman Matthew Nestor asked if the fire options have considered contracts. The Town Manager stated that they have. Selectman Matthew Cummings asked about Pay-As-You-Throw. The Town Manager stated that the Public Works Director has suggested three options: Pay-As-You-Throw, reducing capital and pavement management reductions. Selectman Matthew Cummings stated that all cuts are capital from Public Works. The Town Manager stated yes but he hasn't gotten into a detailed process with Department Heads. Board of Selectmen Meeting_—January 16, 2001 —Page 4 Chairman Matthew Nestor asked about Option 1, and how do we lock in that scenario? The Town Manager stated that he wasn't sure --he would look at ways to do this. Selectman Matthew Cummings asked about raising fees. Vice Chairman George Hines stated that there should be another column including an operating override. The Town Manager stated that the 10 year debt exclusion was modeled by a Selectman's request. Vice Chairman George Hines asked if we could look at another debt figure? Chairman Matthew Nestor stated that he would like to see two models -- one with a $2.1 million operating override and one with a $2.1 million debt exclusion override. Selectman Matthew Cummings asked for detail on the free cash situation. Selectman Camille Anthony asked for a year-to-date budget report. The Town Manager stated that the cut list needs to be finalized on January 30th Selectman Matthew Cummings stated that he doesn't think we can come to closure. Closure means actual votes on the budget. Chairman Matthew Nestor stated that the Board can vote on the budget tomorrow night. Selectman Matthew Cummings stated that he will make a motion on the enterprise items. Resident Bill Brown stated that he wants the effect of the $280,000 house for the different models. This would be helpful. Finance Committee Member Bob LeLacheur was in attendance and stated that the school list reflects priority items. Selectman Matthew Cummings asked about the first cuts in the school budget being SPED after those budgets having shortfalls in prior years? Bob LeLacheur stated that the message he got was the department would be run more efficiently. The Assistant Town Manager asked about additional models. There are two more plus what we already have. Chairman Matthew Nestor indicated a third additional model would be no new revenues. Bob LeLacheur asked about the 157K in BAN savings and the school debt and is it clean. The answer was yes. Bill Brown thanked Chairman Matthew Nestor for his years of service on the Board of Selectmen. A motion by Hines seconded by Anthony to adjourn their meeting of January 16, 2001 at 10:15 p.m. was approved by a vote of 4-0-0. Respectfully submitted, w� Secretary .