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HomeMy WebLinkAbout2001-01-17 Board of Selectmen Minutes Board of Selectmen Meeting January 17,2001 The meeting convened at 7:40 p.m. in the Community Room at the Parker Middle School, 45 Temple 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, Superintendent of Schools Dr. Harry Harutunian, Finance Committee Chairman Carol Grimm, Board of Assessors Chairman Bob Nordstrand,Paula Schena and the following list of interested parties: Bill Brown, Tim Twomey, Bob LeLacheur, Dick McDonald, Thomas Ryan, Alex McRae, Linda Phillips, John Carpenter, Gerry MacDonald, Steve Conner, Chuck Robinson, Mary Grimmer, Jim Keigley, Neil Cohen, Jim Francis, Catherine Martin,Kimberly Lynn. Finance Committee Chairman Carol Grimm called the Finance Committee to order. Board of Assessors Chairman Bob Nordstrand called the Board of Assessors to order. The Town Manager gave an update on free cash. He noted that we are approximately $126 over the budget for snow and ice as of this date, and the plan is to use $600,000 in free cash for the FY 2002 budget. A motion by Cummings seconded by Anthony to change the funding of D2 by $5703 and remove the allocation of the enterprise fund was not approved by a vote of 1-3-0, with Anthony, Nestor and Hines opposed. Selectman Matthew Cummings noted that he has a problem with using the enterprise fund to balance the budget. Vice Chairman George Hines noted that was a legitimate change that was made last year. Selectman Camille Anthony noted that she feels it is a proper allocation. Selectman Matthew Cummings noted that he supports the budget with the reservation that he gets additional information on the capital plan. Superintendent of Schools Dr. Harry Harutunian noted that the School Committee approved a reduction list in the vicinity of$1 million. Chairman Matthew Nestor reviewed the models and noted that Model 1 is a debt exclusion for 10 years; Model 2 is a debt exclusion for 20 years; Model 3 is a debt exclusion and operating override; Model 4 is an operating override and Model 5 is an additional revenue. The Town Manager noted that for the average home assessed at $280,000, Model 1 would cost the tax payer$153/year for 10 years; Model 2 would cost $263/year for 20 years; Model 3 would cost $153/year for 10 years plus $109 permanent; Model 4 would be $263 permanent and Model 5 is no increase. Board of Selectmen Meeting—January 17, 2001 —Page2 Vice Chairman George Hines noted that Model 3 mirrors the consensus of opinion of the people at the Financial Forum in October, and he advocates for the hybrid approach. Selectman Matthew Cummings asked the Finance Committee for their recommendation on using $600,000 from the reserve fund in FY 2002. Finance Committee Chairman Carol Grimm noted that the reserve fund was as low as $300,000 at one time, and the Finance Committee wants to see an override put in its best light. Selectman Matthew Cummings noted that if an override passes, it is not going to change the amount that is used out of the reserve fund. Finance Committee Chairman Carol Grimm noted that the reserve fund can be rebuilt. The Town Manager noted that it would be shortsighted to put capital out as a sacrificial lamb. Selectman Camille Anthony agreed, and noted we went down that road before and it was penny wise and dollar foolish. Vice Chairman George Hines noted that our operating problem is partly due to the way we financed our debt. He favors the hybrid approach. Selectman Matthew Cummings noted that this is an operating problem, and it should be addressed as an operating override. He has a problem taking projects that were approved to come out of the operating budget and make them a debt exclusion, and is also concerned about the use of free cash. School Committee Member Jim Keigley noted that the entire Town is down to a bare budget. He is advocating for an operating override. Vice Chairman George Hines noted that everybody has to give a little bit. He is asking the Finance Committee to compromise on the use of the reserve fund. He noted that the Town has compromised and laid off people last year. School Committee Member Robin D'Antona noted that we cannot hold the capital budget as a sacred cow, and also noted that everything is for the operation of the community. Finance Committee Chairman Carol Grimm noted that the Finance Committee has not seen the capital plan yet, and the Committee made recommendations to defer some capital last year. The Town Manager noted that the $1.8 million in requests this year have been cut back to $800,000. Chairman Matthew Nestor noted that in a non-override budget, everything is on the table. Selectman Matthew Cummings noted that the Selectmen have made changes to the capital plan by adding the pavement management to it. He also noted that it is more realistic to discuss what will happen if it doesn't pass. School Committee Member Tim Twomey noted that if we put two numbers addressing the same issues on the ballot, then people will go for the lesser number. He feels we should do a debt exclusion for$1.2 million. Board of Selectmen Meeting—January 17, 2001 =Page 3 Selectman Camille Anthony noted that she didn't have a problem with a debt exclusion because the voters will know what they are buying into. Selectman Matthew Cummings noted that if the debt exclusion doesn't pass, then we still have to pay for the Police Station. School Committee Member Robin D'Antona noted that people will want to know how much and for how long. She also noted that if people didn't understand a menu before, they won't understand it now and that Option 1 had the lowest impact on the voters. Hines moved and Cummings seconded to put an operational override question in the amount of $2,112,564 on the ballot. Selectman Camille Anthony noted that she wanted to wait for the fifth member - Sally Hoyt. Superintendent of Schools Dr. Harry Harutunian suggested tabling the motion and waiting for the fifth member. Chairman Matthew Nestor noted that he didn't think the fifth member would be available for quite some time. School Committee Member Tim Twomey noted that when the electors see $2.1 million on the ballot when it could have been half of that, they will say no. Finance Committee Member Jim Francis noted that we have a shortfall greater than $2.2 million. If we go with the $1.2 million, then we still have$900,000 to cut. Chairman Matthew Nestor noted that the message has already gone out that we can live with $1.2 million so we can't ask for$2.2 million. Finance Committee Member Dick McDonald indicated that he felt a$2.1 million override would not pass, and urged the Board to go with a$1.2 million override. Superintendent of Schools Dr. Harry Harutunian noted that if a $1.2 million override has a better chance of passing, then the School Committee can go back and look at the budget again. School Committee Member Tim Twomey noted that his personal opinion is that the $1.2 number is right but he feels it should be a debt exclusion. Selectman Camille Anthony asked that the motion be tabled or withdrawn until there is a fifth member. She indicated that if the Board is thinking of $1.2 million, the School Committee should be given the time to go back and look at their budget. Vice Chairman George Hines noted that the Board has been criticized for not making a decision by now. He noted that we have not added exorbitantly to the budget and he will not withdraw the motion. Board of Selectmen Meeting—January 17, 2001 —Page 4 Finance Committee Chairman Carol Grimm noted that even with a$1.2 million override,we still need to go back and cut $900,000. She indicated that people need to know that fees will be increasing, the Library hours will be cut, liquor fees will increase and capital items will be cut. Vice Chairman George Hines noted that the cut list was extremely preliminary. Vice Chairman George Hines' motion for a $2,112,564 operational override question on the ballot failed by a vote of 2-2-0,with Anthony and Nestor opposed. Chairman Matthew Nestor noted that he voted no because of the amount. He feels it would be doomed to fail because we have already made it known we can live with a lower number. Finance Committee Member Mary Grimmer noted that there will be nothing left of free cash with a$1.2 million override. Vice Chairman George Hines noted that he will not support a debt exclusion override. Finance Committee Member Jim Francis requested that the Finance Committee receive a budget that reflects a non-override. Finance Committee Chairman Carol Grimm noted that the $1.2 million number happened by accident because the debt added up to $1.2 million. She is concerned that number is meaningless. School Committee Member Tim Twomey noted that he never said he could live with $1.2 million -- he said he thought it was more likely to succeed, and feels $1.2 million is more practical than nothing. A motion by Anthony seconded by Cummings to adjourn their meeting of January 17, 2001 at 9:50 p.m. was approved by a vote of 4-0-0. Respectfully submitted, cn, Secretary------------' ecretary-- -------''