Loading...
HomeMy WebLinkAbout2000-09-18 Board of Selectmen Minutes Board of Selectmen Meeting Financial Forum - September 18, 2000 The meeting convened at 7:40 p.m. at the Senior Center, 49 Pleasant Street, Reading, Massachusetts. Present were Finance Committee Chairman, Carol Grimm, Finance Committee Members James Francis, Mary Grimmer, Richard McDonald, Robert LeLacheur, Board of Selectmen Members Camille Anthony, George Hines, Matthew Cummings, School Committee Chairman Susan Cavicchi, School Committee Members Harvey Dahl, William Griset, James Keigley, Roberta D'Antona, Timothy Twomey, Board of Library Trustees Chairman Maria Silvaggi, Board of I.,ibrary Trustees Members Stephen Conner, Donna Indelicato. Also present were Town Manager Peter Hechenbleikner, Superintendent of Schools Harry Harutunian, Town Accountant Richard Foley, Treasurer Beth Klepeis. Discussion/Action Items FY 2001 Budizet Status — Additional Chapter 70 Funds as Available Funds — There is $424,000 in additional Chapter 70 Funds available. Superintendent of Schools Harry Harutunian presented the school budget shortfalls for - FY 2001. There is a $310,000 shortfall in the Special Education budget, and a total school budget shortfall of$609,000.' The Town Manager reviewed the Town's FY 2001 budget shortfalls totaling $702,600. This total includes the $310,000 shortfall in the Special Education budget. Between the school's budget and the Town's budget, there is a total shortfall of$961,600. When the $424,000 Chapter 70 aid is applied, there will still be a shortfall of$537,600. Town Accountant Richard Foley stated that the Chapter 70 money should be directed to the school budget. The State will survey the Town in the Spring to see if it was given to the School Department. This could determine how much future money is given to the Town. School Committee Member Peter Dahl stated that it could be embarrassing if the Town doesn't use the money for the School Department, At 8:15 p.m., the School Committee requested a five minute recess to vote on how they would like the money appropriated. At 8:20 p.m., Finance Committee Chairman Carol Grimm called the meeting back to order. On motion by Dahl seconded by D'Antona, the School Committee voted to approve $424,000 Chapter 70 funds be used as stated on Sheet 4A and any deviation of that would need to be revoted by the School Committee. The motion was approved by a vote of 6-0-0. Board of Selectmen Meeting—Financial Forum—September 18, 2000—Page 2 Superintendent of Schools Harry Harutunian requested that the Chapter 70 funds be used as stated on Sheet 4A. On motion by McDonald seconded by Grimmer, the Finance Committee voted to appropriate the Chapter 70 funds to the School Department as outlined on Sheet 4A. The motion was approved by a vote of 5-0-0. The Board of Selectmen stated that they would not take any action on this at this time. Review of FY 2002 Revenue Forecasts — Status of Reserves—Town Accountant Richard Foley reviewed the FY 2002 projected revenues for the General Fund. Superintendent of Schools Harry Harutunian stated that an athletic fee is expected to go through to help with the shortage. The Town Manager stated that a combined annual Town fee for use of the compost and parking will be implemented in January 2001. Finance Committee Chairman Carol Grimm stated that they anticipate $1,460,000 in free cash. FY 2002 Expense Forecasts — Superintendent of Schools Harry Harutunian reviewed the FY 2002 expense forecasts. He presented at FY 2002 budget proposal with a successful override. The personnel requests totaled $668,000. Dr. Harutunian also presented 4 different budget scenarios with budget increases of 3.5%, 6.9%, 8.0% and 10.5%. The budget scenario with a 3,.5% increase had a shortfall of$887,723. The Town Manager presented a FY 2002 budget model that doesn't advance any services, and there is a deficit of$2,409,211. Identification/Discussion of FY 2002 Shortfall — The Town Manager presented a 5 year "Heads Up" on factors that will affect the Town of Reading's financial future. He reviewed strategies to address the shortfalls and a budget schedule. Selectman Camille Anthony asked if there is any five year projections? She stated that the Town cannot afford l l%-12% health insurance increases. The Town Manager suggested that they review this information for a couple of weeks. He suggested that a facilitator might help the three Boards review their options. The next Financial Forum Meeting is Saturday, October 21, 2000. On motion by Keigley seconded by D'Antona, the School Committee voted to adjourn their meeting of September 18, 2000 at 9:40 p.m. The motion was approved by a vote of 6-0-0. Board of Selectmen Meeting—Financial Forum—September 18, 2000 —Page 3 Approval of Minutes On motion by Francis seconded by McDonald, the Finance Committee voted to approve the minutes of their meeting of August 9, 2000. The motion was approved by a vote of 5-0-0. The Finance Committee unanimously voted to adjourn their meeting of September 18, 2000 at 9:45 p.m. Respectfully,,submitted, Secretary Financial Forum September 18,2000 Senior Center—49 Pleasant Street CALL TO ORDER Finance Committee Chair Carol Grimm called the meeting to order at 7:40 p.m. Present were Finance Committee members James Francis,Mary Grimmer,Richard McDonald, and Robert LeLacheur. Board of Selectmen members present were Camille Anthony, George Hines and Matt Cummings. School Committee members present were Chair Sue Cavicchi, Pete Dahl,Bill Griset, Jim Keigley,Robin D'Antona, and Tim Twomey. Library Board of Trustees present were Steve Connors,Marie Silviggi, and Donna Indelicato. Also present were Town Manager Peter Hechenbleikner, Superintendent of Schools Dr. Harutunian, Town Accountant Richard Foley and Treasurer Beth Klepeis. Chapter 70 Funds There is $424,000 in additional Chapter 70 Funds available. Dr. Harutunian presented the school budget shortfalls for FY 01. There is a $310,000 shortfall in the Special Education budget and a total school budget shortfall of$609,000. Peter Hechenbleikner reviewed the Town's FY 2001 budget shortfalls totaling $702,600. i This total includes the$310,000 shortfall in the Special Education budget. Between the School's Budget and the Town's Budget there is a total shortfall of$961,600. When the $424,000 Chapter 70 aid is applied there will still be a shortfall of$537,600. Richard Foley stated the Chapter 70 money should be directed to the school budget. The State will survey the Town in the spring to see if it was given to the school department. This could determine how much future money is given to the Town. Pete Dahl stated it could be embarrassing if the Town doesn't use the money for the school department. At 8:15 p.m. the School Committee requested a five minute recess to vote on how they would like the money appropriated. At 8:20 p.m. Carol Grimm called the meeting back to order. On a motion by Pete Dahl, seconded by Robin D'Antona,the School Committee voted the$424,000 Chapter 70 Funds be used as stated on sheet 4A and any deviation of that would need to be revoted by the School Committee. The motion was approved by a vote of 6-0-0. Dr.Harutunian requested the Chapter 70 Funds be used as stated on sheet 4A. Financial Forum September 18,2000 page 2 On a motion by Richard McDonald, seconded by Mary Grimmer,the Finance Committee voted to appropriate the Chapter 70 Funds to the school department as outlined on sheet 4A. The motion was approved by a vote of 5-0-0. The Board of Selectmen stated they would not take any action on this at this time. Review of FY2002 Revenue Forecasts Richard Foley reviewed the FY2002 projected revenues for the General Fund. Dr. Harutunian stated an athletic fee is expected to go through to help with the shortage. Peter Hechenbleikner stated a combined annual Town fee for use of the compost and parking will be implemented in January 2001. Carol Grimm stated they anticipate$1,460,000 in free cash. FY2002 Expense Forecasts Dr. Harutunian reviewed the FY2002 expense forecasts. He presented a FY02 budget proposal, with a successful override. The personnel requests totaled $668,000. Dr. Harutunian also presented 4 different budget scenarios,with budget increases of 3.5%, 6.9%, 8.01/o and 10.5%. The budget scenario with a 3.5%increase had a shortfall of -- $887,723. Peter Hechenbleikner presented a FY2002 budget model,that doesn't advance any services, and there is a deficit of$2,409,211. Identification/Discussion of FY2002 Shortfall Peter Hechenbleikner presented a 5 year"Heads Up" on factors that will affect the Town of Reading's financial future. He reviewed strategies to address the shortfalls and a budget schedule. Camille Anthony asked if there is anyfive year projections? She stated the Town can not afford U%- 12%health insurance increases. Peter Hechenbleikner suggested they review this information for a couple of weeks. He suggested a facilitator might help the three boards review their options. The next Financial Forum meeting is Saturday, October 21, 2000. On a motion by Jim Keigley, seconded by Robin D'Antona,the School Committee voted to adjourn their meeting at 9:40 p.m. The motion was approved by a vote of 6-0-0. Financial Forum September 18,2000 page 3 On a motion by James Francis, seconded by Dick McDonald,the Finance Committee voted to approve the minutes of August 9, 2000. The motion was approved by a vote of 5-0-0. The Finance Committee unanimously voted to adjourn at 9:45 p.m. Respectfully submitted, Joy ohr Recording Secretary