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HomeMy WebLinkAbout1993-02-09 Board of Selectmen Minutes Minutes of Board ofSelectmen Meeting February 9, 1993 The meeting was covened at 7 : 30 p.m in the Selectmen's Meeting Room, 16 Lowell Street, Reading, MA. Present were Chairman Dan Ensminger, Vice Chairman George Hines, Secretary Sally Hoyt, Selectman Bill Burditt, and Town Manager, Peter Hechenbleikner, six members of the Finance Committee and five School Committee members. Present also were the following list of interested parties: Gary Demopolus, Steve Thomases, Bill Murphy, Stephen Blewitt, Tim Twomey, Barbara Philbrick, Ronald Daddario, Pat Sud- bay, Robin D'Antona, Susan Cavicchi, Matthew Cummings, Carroll McMillan, Jim Keigley, Deirdre Hanley, Robert Munnelly, Elia Mar- nik, Tom Stohlman. The Town Manager presented a packet of material which outlined the current revenue considerations, extensive reductions that have been made in municipal services over the last five years, and outlined where we are going for the FY94 Budget. Richard Coco indicated that he agreed with the chart which out- lined the process for a Proposition 2 1/2 Override at a special ` election after the Finance Committee had a chance to review the Budget. School Department - Matt Cummings indicated that in addition to the municipal reductions in service, the school has lost 40 full-time equivalent positions, eliminated the gifted and talented program, reduced fine arts, and physical education programs, reduced directors positions and custodians, reduced busing, reduced instructional equipment 25%, eliminated middle school intramurals, and increased class sizes. Of the requested increases in the School Budget, $125, 000 is because of increase in enrollment, $343 , 000 is because of increased costs of special needs, and $363 , 000 is to replace the things that were added back when state aid was increased in FY93 . Step increases equal $120,000. Steve Thomases read a letter and presented a petition to the Board of Selectmen requesting an Article for Town Meeting to provide level services to the schools. Dan Ensminger made sure that everybody present understood the difference between level service and level funded. Jim Keigley indicated that there is a need for an override and it should be done in June. Tim Twomey spoke regarding a petition. He indicated that people are aware of the difference between level service and level funded. He feels that the Board of Selectmen is ignoring the elected School Committee and the majority of Town Meeting Members who signed the petition. He felt that this was indicative of the credence that the .Selectmen place on the Town Manager and his budget. He feels that the Town Manager's budget does not reflect what the School Department needs. ar.e. _ He would like to see the Town come up with-a priority process using the MMA model. He ft , Selectmens' Minutes 2/9/93 - page 2 noted that the Town Manager's recommended budget versus the re- quest of $620, 000 shortfall plus salaries and a portable building that is needed. He felt that we could not afford to put all of our eggs into the education reform or override basket. Either one may not happen. The longer the override issue "sits out there" the harder it is to deliver educational services. Bill Burditt asked rhetorically what proponents of the petition would like to do in order to fund the $620, 000 shortfall in the School budget. The entire Accounting budget is only $92, 000, the entire Community Development budget is only $138,000, the entire Finance Department budget is $625, 000. Where do they feel that $700:,000 would come from? Tim Twomey indicated that we don't have the luxury of doing strategic planning, looking at the relative value of services provided. He requested that the Town Manager be directed to put together a budget reduction on the municipal side to fund the schools needs. Dr. Munnelly spoke on the School Department budget process and feels that the Town and School have run up against the wall. Linda Malloy signed the petition; she feels that parents are in despair and that Reading can't compete with other school systems. She feels that we have lost residents to other communities. Ron Daddario signed the petition and feels that the Town should develop what it needs to do to provide level services and we should go for an override. Carrol McMillan from the Reading Taxpayers Association indicated that the rubbish enterprise system could include recycling and would like us to go to a per bag system. He feels that level funding the budget would cost $1, 000, 000 and that we would be doing disservice to Town Meeting if we don't also include a salary increase. He encourages an attempt to conduct an over- ride. Jim Keigley felt that we should not push an override too quickly; that we should 'do it intelligently and have an override in June. Sue Cavicchi felt that we should do it sooner rather than later so we will not spend extra dollars for an override election. Schools don't have supplies, have poor maintenance and she would rather see an override for the entire Town, not just schools. Tom Stohlman reiterated that everyone seems to say that there should be an override. We need to decide on the amount. Dan Ensminger expressed concern that there are too many unknowns out there. An envelope with preprinted "petitions" was presented to the Board of Selectmen - these were from the Killam PTO. Selectmens' Minutes 2/9/93 -: page 3 The Town Manager was asked to set up a meeting with Senators Tisei and Buell and Representative Krekorian for next week rela- tive to education reform. Cemetery - Joyce Miller, Chairman of the Board of Cemetery Trustees, and Bob Keating were present. They are concerned about the Town Manager's suggested level of funding from the bequest fund because of reduced interest rates. They also feel that the backhoe needs to be replaced. They talked about pooled vehicles for the Cemetery Director's use. George Hines indicated that he would like to interrupt the budget discussions with some good news. The Town has received cor- respondence from the Army Corp of Engineers that the Nike Base cleanup is approved and funded. The Town Manager is ready to sign the Right of Entry. He expressed gratitude to Congressman Markey. CPDC & Conservation - Jonathan Barnes, Nancy Shipes, Bill Goodrich, Tom Stohlman from CPDC and Jim Biller from the Conser- vation Commission were present. They talked about the. Community Development Department budget and endorsed Mr. Biller's conclu- sions. They felt that reductions in the clerical support are not acceptable. They also felt that it was important for the Planner to retain the Department Head role. Nancy Shipes expressed concern about the budget process and ex- clusions of the Commissions. The Town Manager indicated that it is the Department Head's role to keep the Commissions involved in the process, but that he would set up quarterly meetings with the Commissions. Bill Goodrich suggested that we should look at other towns and see how they are set up organizationally. Public Safety - Chief Wood was present and talked about the need for EMT Training. On motion by Hines seconded by Hoyt the Board voted not to reduce the replacement of police vehicles to two, by a vote of 1-3-0 with Hines voting in favor. On motion by Hines seconded by Ensminger the Board voted to reduce line item G2 by $3000 representing actual FY93 costs of police vehicle replacement, the motion was approved by a vote of 4-0-0. On motion by Hines seconded by Burditt the Board voted to in- crease line item G7 - Dispatchers Training - by $3000. The mo- tion was approved by 4-0-0. On motion by Burditt seconded by Hoyt the Board voted to recon- sider line item G7 by a vote of 3-1-0 with Hines against. Selectmen's Minutes - 2/9/93 - page 4 On motion by Burditt seconded by Hoyt the Board voted to increase line G7 - Dispatchers Training - by $2500. The motion was ap- proved by a vote of 3-1-0. On motion by Burditt seconded by Hines the Board voted to in- crease line G6 - Fire Department expenses for EMT Training - by $500. The motion was approved by a vote of 3-1-0 with Hines voting against. Line item B8 - Community Development - salaries were approved as presented by a vote of 4-0-0. On motion by Hines seconded by Burditt the Board voted not to reduce line item D4 - Town Counsel - by $2500. The vote was 2-2-0 and the motion was not approved. On motion by Hines seconded by Burditt the Board voted to approve the remainder of the line items and all line items as amended by ;a vote of 4-0-0. On motion by Hines seconded by Burditt the Board voted to adjourn at 11:30 p.m. by a vote of 4-0-0. Rspe tfully submitted: Secreta y i OFRFgIj F �° Town of Reading 16 Lowell Street `ted ��wo Reading, MA 01867-2685 639-INCOR40¢P TOWN MANAGER FAX: (617) 942-9070 (617) 942-9043 FY 1994 BUDGET MESSAGE GENERAL COMMENTS - The FY 1994 budget as presented is inadequate to meet the need for services to the residents of the Town of Reading. The municipal component of the budget will only permit reduced levels of service in every department. The School com- ponent of the budget has identified a need for $768, 000 more than was budgeted in FY 1993, and the budget that I have recommended only increases the budget for schools by $ 148, 000. Addition- ally, the budget as presented only identifies funding for a 1.50 salary increase for municipal employees, employees who have had no salary increase for two complete fiscal years. The suggestion has been made that we need to prioritize services and make reductions in order to properly fund one par- ticular element of services or another. On the surface of it, such a suggestion sounds worthy of review, and it in fact builds on the process that has been ongoing for the last 5 years. The Town has, in fact, placed a priority on public education by con- sciously shifting discretionary funds (expenses except for employee benefits, debt service, and other shared expenses) towards the schools. Since FY 1990, 4.5% more of the discretion- ary budget (now 65.55%) goes into schools, with a current annual value of $ 953 , 000. That shift is not enough, however, to meet the needs of the schools which have growing enrollments and rising fixed expenses, especially in the Special Needs area. Similarly, demand is grow- ing in every area of municipal government for mandated services. The amount of streets to be maintained is increasing, the re- quirement that the police respond to domestic disputes (209A cases) is on the rise, the public library has the largest cir- culation and use of the facilities that it has ever had, and the number of elderly residents is continuously growing. Significant reductions have been made over the past 5 years in services, both school and municipal. Additional sources of revenue have been sought. Together, the schools and the municipal services of this community are seriously underfunded, and responsible public officials on the School and Municipal sides of government all agree on this shortfall. The choices are few: -Hope that an education reform bill with meaningful reform - and appropriate funding is passed by the legislature and signed by the Governor as soon as possible; -Place before the voters of the Town a proposition 2 1/2 override to increase funding to minimum but acceptable levels; -Further reduce services to the residents of Reading to un- acceptable levels, and in some instances in direct con- tradiction to State and/or Federal mandates, and in every case contrary to common sense. REVENUE PROJECTIONS - Projected revenues for FY 1994 are little changed from FY 1993 levels, except in two areas: property tax receipts, and rubbish fee. The property tax levy is projected to increase at the rate permitted by the Proposition 2 1/2 laws that allow the total levy to increase by 2 1/2 percent per year, plus an allowance for new growth. For FY 1994 , this source of revenue is projected to in- crease by approximately $ 620, 000. On especial disturbing trend over the past 5 years since the State has begun disinvesting in Local government, has been the growing reliance on the property tax to fund local services including the schools. In 1990, 57.4% of the local expenses (Except for water and sewer) came from the property tax revenue. In 1994, that figure is over 68%. The to- tal state aid available to Reading has dropped from $5. 7 million dollars to $4. 3 million in that same 5 year time span. To offset some of the loss of State Aid, the Town went to a rubbish collection and disposal fee in 1992, and that fee is ex- pected to increase from 1993 levels of $618, 000 to $971, 000 in FY 1994 in order to cover the costs of the RESCO "pass through" for retrofitting the incinerator' s acid scrubbers. That will result in an increase in the fee per household of approximately $63/year. All other sources of revenue are projected to decrease or remain the same. Free cash and the sale of real estate monies are diminished or spent. Other revenues are not increasing be- cause of a still stagnant economy. The current balance in Free Cash is $143 ,482 , and it is estimated that the $99,000 projected to be used in the FY 1994 budget will be replenished in August. Water fees are projected to increase approximately 5% to cover reduced availability of water reserves (the budget projects using $229,185 of water reserves, leaving a balance of $200, 000 for unforeseen needs) . —fewer fees are projected to increase approximately 18% to cover increased costs of the MWRA assessment for sewage treat- ment, and to reflect the reduced amount of sewer reserves avail- able to be appropriated (the budget proposes the use of $47,433 of sewer reserves, leaving a balance of $200, 000 for unforeseen needs) . PROPOSED EXPENDITURES - The FY 1994 budget as recommended by the Town Manager represents a $1, 382,455 increase from the previous fiscal year, or a 3 . 85 % increase. That increase is accounted for in large part by increases in two major accounts the RESCO pass through cost is projected to increase by $ 341, 000; and the MWRA costs are projected to increase by $447, 500. Both of these increases are not proposed to increase the property tax burden, however, as they are both enterprise systems that establish the rubbish collection and disposal system, and the sewer and water systems on a self funded basis. The following is an analysis of the major budget categories and their changes from the FY 1993 budget as adopted. Budget Account Proposed $ Change FY 93 % Change FY 93 FY 1994 to FY 94 to FY 94 --- Town Services Accounting $ 92,795 $ 0 0 Comm. Devel. 138,327 - 5, 176 - 3.6% Finance 619,288 + 10,089 + 1.7% General Serv. 612,408 14,915 - 2 .4% Human Serv. 271,164 + 2, 039 + .8% Library 459,314 - 1,749 - .4% Public Safety 3,849,266 58,767 - 1.5% Public Works 2,751, 142 + 330,789 + 13 .7% Bld. Maint. 325,696 - 6, 600 - 2.0% Sal. inc. fund 85,773 + 85,773 0 % Town Total 9,205, 173 + 341,483 + 3 .85% School (Town) 14,571,263 + 148,736 + 1. 0% School (Voke) 122,966 + 10, 101 + 8.9% Debt 1,563,522 + 95,490 + 6.5% Employee Benefits 4,557,037 + 257,028 + 6. 0% State/Cnty Assess. 681,732 + 34,848 + 5.4% Water Enterprise 1,776, 606 + 39,704 + 2. 3% Sewer Enterprise 3 ,406,424 + 455,065 + 15.4% Total $ 35,884,723 + 1, 382,455 + 3 .85 The following are the main changes proposed for FY 1994 by Department: Community Development - The focus of the Planning Division of the Department is proposed to be shifted away from ad- ministrative efforts and more towards Master Plan and other implementation, especially in the area of land sales and economic development. The Department of Public Works will be asked to work with the Community Development Department in certain administrative areas. Finance - The following changes are proposed in the Depart- ment of Finance: slightly increase the funding for tax lien work which results in improved collections; fund the appraisal work for the Assessment division of the department to enable the Town to defend against tax appeals; - fund the actuarial study through the retirement part of the employee benefits budget, rather than through the Fincom budget. - the personnel division will need additional funding for medical expenses related to obligations to conduct medical exams for new employees and in certain cases for active employees. General Services - There are fewer elections in FY 1994 than in FY 1993, and therefore election costs will decrease. All other aspects of the Department will remain the same. Human Services - The department operations will remain the same. The increase is related to funding the nurses posi- tion. Library - The Library budget shows a small decrease which is entirely related to shifting postage funds to the Department of General Services since the Library uses the postage meter in Town Hall for most mailings. A high priority would be additional funding for books. Public Safety - This Department shows a decrease from FY 1993 . That is because in FY 1993 several single year mat- ters were funded. These included a shortfall in the salary budget for the Fire Department because of a change in the Chief's position, and because of heavy injury related over- time. It also included a one time upgrade of the computer in the Police Headquarters. The budget includes increased overtime for training of dispatchers. High priorities for additional funding include two additional dispatchers and additional fuel for police vehicles. Public Works - The DPW budget is increased by about $330,000 in total. The budget is actually reduced for general operations, but the estimated RESCO "pass through" cost is increased by $3„41,000. The budget reflects the salary of a new Director, the reclassification of the former Assistant Director's position, and the shift of part of a clerk's time from Community Development. It also reflects not filling a position in the Parks/Forestry Division that is vacant be- cause of Workers Comp. , and filling in that reduction with seasonal employees. Salary Adjustment Fund - A fund in the amount of $86,500, or about 1. 5% of total Town salaries is proposed to be funded and distributed once union contracts are settled. Town employees have had no salary increases in 2 years, and many have lost salary and/or benefits. During that same time have had to absorb more of their health and life insurance costs. A 1. 5% increase is minimal, but will at least start to reverse that trend. School - The School Department has requested an increase in their budget of approximately $768, 000 above what was ap- propriated by Town Meeting in FY 1993. The School Depart- ment received an additional $363 , 000 in State funds for FY 93 which was available without appropriation. The proposed budget reflects an increase of $148, 000 for FY 1994 from the appropriated FY 1993 levels. In addition, $25, 000 of the FY 1993 appropriation was for architectural services, a one time expenditure. The proposed school reform bills being discussed on a State level will, if passed, have a sig- nificant effect on the funding of Reading's schools, poten- tially at the expense of other municipal services. This is an unknown at this time, and the proposed budget is based on no additional State funding for Schools. Vocational School - The Vocational School assessment to <Reading reflects an increase of over $10 , 000 from last year's level. This is because the same number of Vocational School students from Reading constitutes a greater percent- age of the declining enrollment of the Vocational School. The Vocational School budget is level funded from FY 1993 , even though the enrollment and several key areas of expendi- ture have declined substantially. Debt Service - The debt service currently committed by the Town reflects an increase of $95,000. Employee Benefits - Increases in pensions, health insurance, and social security/medicare account for an increase of $257,000. State/County Assessment - These assessments are projected to go up 2 1/2 % from last year's actual expense after adjust- ment. This reflects a 5. 4% increase from last year' s es- timate. Water - The Water Division budget will increase by 2 . 3%, but since there is less money available in the reserve than in FY 1993 to offset part of the rate, rates are likely to in- crease by 5. 6% Sewer - Sewer costs will increase by $455, 000, all of which is attributable to the estimated increase in MWRA expenses related to the clean-up of Boston Harbor. There is one new program proposed, which is the Household Hazardous Waste Collection program. This program was run last year with an MWRA one time grant, and was very well utilized by Reading Residents. The purpose of the program is to give residents an alternative to disposing of household hazardous wastes on the ground, in the rubbish, or in the sewers (all of which are illegal disposal methods) . While it appears unlikely that such a program will be pos- sible, the following are proposed priorities for expenditures in the Municipal government if additional funding becomes available: Program cost cum.cost 1) Fire Dept. Train. 2 ,500 2,500 2) Pub. Safe.Disp. (inc. Ben. ) 24,265 26,765 3) Library books 15, 000 41, 765 4) Reclassification Salary adjustments 10, 000 51,765 5) 2nd Pub.Safe.Disp. 24,265 76, 030 6) Add.veh. fuel-Police 5, 000 81, 030 ATTACHMENTS - Attached are the following items related to this budget presentation: - FY 1994 Budget Schedule - Town of Reading, Massachusetts, Revenues and other Resources. - Pages 1 through 8 of Town of Reading Budget Summary - School Special Revenue Funds (Revolving Accounts) year en- ding June 30, 1992 Other Special Revenue Funds (Revolving Accounts) year en- ding June 30, 1992 List of encumbrances - 5 Year history of budget reductions - FY 1990-FY 1994, R ctfuil S mit,�ted P ter I. Hechenbleikner Town Manager 2-11-93 FY94 BUDGET SCHEDULE Jan. 26 Tuesday BOS Budget Jan. 27 Wednesday FinCom w/School Feb. 9 Tuesday BOS Final Budget Feb. 11 Thursday T. Mgr. Budget Hearing Budget to FinCom Feb. 16 Tuesday Warrant Closes ATM Feb. 17 Wednesday FinCom Budget Session - School 22 Monday is School 24 Wednesday VIAcc/Fin/Lib/H. Serv. Mar. 1 Monday IfCom. Dev/Fire 3 Wednesday Public Works 8 Monday Public Works/W&S 10 Wednesday Police, Animal Control, Gen. P. Safety/Gen. Serv. 15 Monday Articles/Cap. Imp. Program 17 Wednesday Finish 18 Thursday All Material to Town Mgr. Office for printing Mar. 26 Friday Budget available to T. Meeting Mar. 27 Saturday T. Meetings Budget Preview Apr. 12 Monday 1st Session of T. M 15'" Thursday 2nd n 20 Tuesday 3rd 22 Thursday 4th " 26 Monday Budget Session T.M. 29 Thursday i I Town of Reading, Massachusetts Revenues and Other Resources Actual Budget -- (Budget Basis) (Revised) Projected FY - 1992 FY - 1993 FY - 1994 Property taxes: Total tax levy 20,689,604 21,332,832 Less: Provision for abatements and exemptions (377,663) (400,000) 19,141,031 20,311,941 20,932,832 Local revenues from sources other than property taxes: Motor vehicle excise 1,356,823 1,350,000 1,350,000 Penalties and interest on taxes 160,827 160,000 160,000 Payments in lieu of taxes 72,666 65,000 65,000 Payment in lieu of taxes- elect 69,502 75,000 75,000 Urban redevelopment excise 81,014 80,000 80,000 Charges for services 479,910 480,000 480,000 Licenses and permits 58,220 55,000 55,000 Special assessments 28,465 15,000 15,000 Fines 117,617 115,000 115,000 Interest earnings 528,093 400,000 400,000 Trash fee 362,258 618,334 971,094 3,315,395 3,413,334 3,766,094 Intergovernmental revenue: State aid 5,024,961 5,024,961 Less: State aid - offset items (677,714) (677,714) 4,451,371 4,347,247 4,347,247 Operating transfers / available funds: Cemetery perpetual care 77,000 77,000 77,000 Cemetery sale of lots 53,270 43,073 39,995 Wetland protection filing fees 3,000 2,492 1 ,500 Earnings distributions - electric 1,250,000 1 ,400,000 1,400,000 Abatement surplus 65,000 38,000 38,000 Certified "free cash" 800,200 176,207 99,025 Sale of real estate (special act) 484,000 4,199 Sale of real estate fund 82,000 514 Other 153,719 2,968,189 1,741,485 1,655,520 29,875,986 29,814,007 30,701 ,693 5 YEAR HISTORY OF BUDGET REDUCTIONS - FY 1990- FY 1994 TOWN OF READING, MASSACHUSETTS Maior changes - More cost accounting to enterprise funds, resulting in some shift of expenses from general government expense to Water and/or Sewer expenses. - All municipal fees have been reviewed and increased. - A rubbish fee has been instituted. - The school/municipal agreement has shifted business serv- ices (and potentially building maintenance services) to the Town. -An early retirement incentive funded from available funds created an initial $98, 000 per year salary savings in the School Department. -There have been no salary increases for any municipal employee for 2 years to date. Accounting Department — Took on a major part of the School busi- ness function with slight increase in staff. Community Development Department Total staff reduced 23 .8% ; reduction in hours the office is open to the public; reduc- tion of hours for the plumbing/gas and wiring inspectors; trial of regionalization of inspection services. Finance Department Slight increase in staff; new respon- sibilities for personnel, workers compensation administra- tion, unemployment administration for Town and Schools; all revaluation done in house saving triennial cost of $180, 000; reduced clerical staff; took on quarterly tax billing to improve cash flow; took on rubbish billing to increase revenue; eliminated capital expenses in Data Processing. Department of General Services - Eliminated personnel ad- ministrator position; reduced elections expenses ; con- solidated sealer of weights and measures with health inspec- tion; eliminated receptionist position with installation of new phone system; reduced cost of p&c insurance through careful management and bidding; reduced total staff by 23.4%. Human Services IDepartment - Reduced/eliminated nurse position, consolidated sealer of weights and measures with health in- spection, reduced health inspection to bare minimum, reduced available vane services for senior citizens (since restored) , reduced the time available of the Veterans Agent, established a Recreation revolving fund which makes recrea- tion programs almost self supporting, placed the shopping assistance program on a donation supported program, reduced staff 10.4%. Library - Eliminated Friday evening hours of operation; eliminated 9 - 10 am hours of operation; reduced total hours by 13 . 9%; reduced purchase of materials 19% ; eliminated adult programs; eliminated children' s programs, eliminated publications ; eliminated cultural trips ; eliminated fines and overdue notices; eliminated support for AV equipment; 'eliminated part of custodial help; closed card catalogue; reduced staff by 13.7%. Town of Reading, Massachusetts Enterprise Funds Revenues and Other Resources Month Ending January 31: 1993 Variance Favorable % Actual to Sudget Actual jUn#ayoYableBudgg ..................................... . .. .... ...... . ......................................... .......... ... . . ................. :.. ater::fund:..: S S S Charges for Services 1,185,901 666,069 (519,832) 56.17% Earnings on Investments 20,000 (20,000) 0.00% Special Assessments 0 Intergovernmental 54,923 54,923 Other 0 S S S 1,205,901 720,992 (484 909) 59,79% ..................... _.. .-.. ..................... .. .........._ --- --- -.- - ;::Sewer::Fund S S S Charges for Services 2,824,359 1,381,514 (1,442,845) 48.91% Earnings on Investments 10,000 (10,000) 0.00% Special Assessments 4,000 3,967 (33) 99.18% Conection Fee 0 S S S -- 2,838 359 1,-,385,481 (1,452,878) 48.81%