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HomeMy WebLinkAbout1995-06-19 Special Town Meeting Warrant ReportTown of beading Massachusetts Report on the Warrant Special Town Meetings June 19, 1995 SPECIAL TOWN MEETING t (Seal) COMMONWEALTH OF MASSACHUSETTS June 19, 1995 Middlesex, ss. To any of the constables of the Town of Reading, Greetings: In the name of the Commonwealth of Massachusetts, you are hereby required to notify and warn the inhabitants of the Town of Reading, qualified to vote in elections and Town affairs, to meet at the Reading Memorial High School Auditorium, 62 Oakland Road, in said Reading on June 19, 1995 at seven-thirty o'clock in the evening, at which time and place the following articles are to be acted upon and determined exclusively by Town Meeting Members in accordance with the provisions of the Reading Home Rule Charter. ARTICLE 1 To hear and act on the reports of the Board of Selectmen, Town Accountant, Treasurer-Collector, Board of Assessors, Director of Public Works, Town Clerk, Tree Warden, Board of Health, School Committee, Contributory Retirement Board, Library Trustees, Municipal Light Board, Finance Committee, Cemetery Trustees, Community Planning & Development Commission, Town Manager and any other Board or Special Committee. Board of Selectmen Background Article 1 appears on all Town Meeting Warrants, and is the article under which reports are made to Town Meeting members. There are no reports to be made under this article that are known at this time, and this article is therefore likely to be tabled. Bylaw Committee Report No Report Finance Committee Report No Report ARTICLE 2 To choose all other necessary Town Officers and Special Committees and determine what instructions shall be given Town Officers and Special Committees, and to see what sum the Town will raise by borrowing or transfer from available funds, or otherwise, and appropriate for the purpose of funding Town Officers and Special Committees to carry out the instructions given to them, or take. any other action with respect thereto. Board of Selectmen Background Article 2 appears on all Town Meeting Warrants, and provides for Town Meeting members to make instructions to Town Officers and special committees. These are often instructions that come up as a result of other business on the Town Meeting warrant, and they are not known ahead of time. Bylaw Committee Report No Report Finance Committee Report No Report C ARTICLE 3 To see if the Town will vote to amend the FY 95 - FY 2004 Capital Improvement Program as provided for in Section 7-7 of the Reading Home Rule Charter and as previously amended, or take any other action with respect thereto. Board of Selectmen Background This article appears on all Town Meeting Warrants, and amends the current year's capital improvement program. There are no known amendments to the program, and this article may be tabled. Bylaw Committee Report No Report Finance Committee Report No Report ARTICLE 4 To see if the Town will vote to amend the votes taken under Article 26 of the Warrant of the Annual Town Meeting of April 11, 1994 as amended under Article 4 of the Warrant of the Special Town Meeting of November 14, 1994; and as amended under Article 5' of the Warrant of the Annual Town Meeting of April 10, 1995, relating to the Fiscal Year 1995 Municipal Budget, as follows, and to see what sum the. Town will raise by borrowing or transferring from available funds, or otherwise and appropriate as a result of any such amended votes for the operation of the Town and its government, or take any other action with respect thereto. Board of Selectmen Background This article will amend three lines of the FY 1995 budget. The major amendment is to add $250,000 to line J-1, which is the School Department budget. This is necessary in order for the School Department to pay the outstanding bills for the remainder of this fiscal year which ends June 30, 1995. A complete explanation is included at the end of this report. Additionally a transfer form Line M-2 (Water Division expenses) to Line M-1 (Water Division salaries) is required. The Town budgets for the Water Division assuming a certain portion of the salaries in each year will be paid for "regular time" snow plowing and sanding. With the mild winter this year, that was not done. In many years this shortfall could be covered by using salary moneys from employees out on Worker's Compensation, but there were few cases this year. Bylaw Committee Report No Report Finance Committee Report The Finance Committee recommends by a vote of 6-0-0 to 'approve an increase to Line Jl of the FY 1995 budget in the amount of $250,000. The `source of funding will be from free cash. We understand thatif the actual shortfall within this line is less than $250,000, based on current spending; plans and emergencX expenditures, the difference will return to free cash. 2 The Finance Committee is deeply concerned by the lack of adequate financial controls at the - School Department which led to such a large shortfall. The potential for a significant shortfall was first raised with the School Department in January, 1995 and was not acted upon due to inadequate oversight The size of the shortfall could have been reduced at that time by reducing discretionary expenditures and a special town meeting could have been avoided by adjusting the budget at Town Meeting in April In response to this situation, the School Committee School Department and members of the Town's Accounting and Finance staffs have worked diligently to create a plan to address the problem The Finance Committee believes that the proposed plan includes measures of control and oversight which should prevent shortfalls from occurring without notice again. In addition, the Finance Committee anticipates that the Audit Committee will instruct KPMG Peat Marwick to focus on invoice tracking within the School Department as part of its FY 1995 audit process. Finally, due to significant increases in projected revenue receipts, the Town will be able to maintain adequate levels of free cash despite this transfer. The Finance Committee also recommends by a vote of 6-0-0 to approve an increase to Line M1 (Water Salaries) by $34,000, and a decrease to Line M2 (Water Expenses) by $34,000. ARTICLE 5 To see if the Town will vote to amend the votes taken under Article 14 of the Warrant of the Annual Town Meeting of April 10, 1995, relating to the Fiscal Year 1996 Municipal Budget , and to see what sum the Town will raise by borrowing or transferring from available funds, or otherwise and appropriate as a result of any such amended votes for the operation of the Town and its government, or take any other action with respect thereto. Board of Selectmen Background This article was placed on the warrant in the event that the Finance Committee felt that it was needed to deal with the financial impacts of the transfers needed under Article 5. The Finance Committee has determined that such action will not be needed, and has recommended that this article be tabled. Bylaw Committee Report No report Finance Committee Report Recommends tabling by vote of 6-0-0 ARTICLE 6 To see what sum the Town will raise by borrowing, or from the tax levy, or transfer from available funds, or otherwise, and appropriate for the purpose of developing plans, specifications, and all other things required for the closure of the former Reading landfill site on Walkers Brook Drive on property known as plat 57 lots 20-26 and plat 68 lots 7 and 8 on the Tax Assessors' map, such appropriation to include all planning, engineering, testing, and other preparation costs required to complete the purpose of this article, all moneys to be expended under the direction of the Board of Selectmen or take any other action with respect thereto. Board of Selectmen Back-ground article was included on the Annual Town Meeting Warrant but was tabled. The Commonwealth of Massachusetts supplemental FY 1995 budget included, funding for RESCO communities to reimburse them for some of the costs of retrofitting the scrubbers. It is expected that Reading's share of these funds will amount to approximately $190,000. If the supplemental budget is adopted and signed before Town Meeting convenes on ; June 19, the Town would recommend appropriating these fund to begin the planning and design process for the formal "closure" of the landfill site. The estimated cost of the full design is $320,000, but the moneys available will allow significant progress to be made. Bylaw Committee Report No Report Finance Committee Report Finance'Committee recommends by a vote of 6-0-0, the subject matter of Article 6, subject to receiving state funding. and you are directed to serve this Warrant by posting an attested copy thereof in at least one (1) public place in each precinct of the Town not less than fourteen (14) days prior to June 19, 1995 the date set for the meeting in said Warrant, and to; publish this Warrant in a newspaper published in the Town, or by mailing an attested copy of said Warrant to each Town Meeting Member at least fourteen (14) days prior to the time of holding said meeting. Hereof fail not and make due return of this Warrant with your doings thereon to the Town Clerk at or before the time appointed for said meeting. Given under our hands this 23rd day of May, 1995. Daniel A. Ensminger, Chairman A true copy. Attest: Sally M. Hoyt, Vice Chairman Camille W. Anthony, Secretary Catherine A. Quimby Town Clerk George V. Hines Signature of Constable Bruce MacDonald SELECTMEN OF READING 4 SPECIAL TOWN MEETING (Seal) COMMONWEALTH OF MASSACHUSETTS June 19, 1995 Middlesex, ss. To any of the constables of the Town of Reading, Greetings: In the name of the Commonwealth of Massachusetts, you are hereby required to notify and warn the inhabitants of the Town of Reading, qualified to vote in elections and Town affairs, to meet at the Reading Memorial High School Auditorium, 62 Oakland Road, in said Reading on June 19, 1995 at eight-thirty o'clock in the evening, at which time and place the following article to be acted upon and determined exclusively by Town Meeting Members in accordance with the provisions of the Reading Home Rule Charter. ARTICLE 1 To see what sum the Town will raise by borrowing, whether in anticipation of reimbursement from the State under Chapter 444, Section 6, Massachusetts General Laws, or pursuant to any other enabling authority or from the tax levy, or transfer from available funds, or otherwise, for highway projects in accordance with Chapter 90, Massachusetts General Laws, or take any other action with respect thereto. Board of Selectmen ( 1 Background The Town has struggled over the past two years over how to make Chapter 90 funds for street improvements available during the regular Town Meeting schedule, and have the moneys available to do construction projects during the coming construction season. The problem has been that the State does not certify that the funds are "available" until August. This year, with the help of the Town's State Representative and the coordination of Town Counsel and the Town Accountant, this article is proposed. This article will authorize debt in the amount of $437,855 for road improvements. The Town has committed that this debt will never be incurred. Instead, when the State gives us written notification of the "availability" of funds in August, the debt authorization will automatically extinguish. The funds have already been voted by the state legislature, but have not been certified as "available funds" and will not be certified until August. There is one project especially that the Town would like to have into construction this summer - the construction of "Upper Pearl Street" from Franklin to Main Street. All design hearings have been held, and residents of the street are anxious for the Town to proceed. Bylaw Committee Report No Report Finance Committee The Finance Committee recommends, by a vote of 6-0-0 the subject matter of Article 1 in the amount of $437,855. ~ i and you are directed to serve this Warrant by posting an attested copy thereof in at least one (1) public place in each precinct of the Town not less than fourteen (14) days prior to the June 19, 1995 date and time set for the meeting in said Warrant, and to publish this Warrant in a newspaper published in the Town, or by mailing an attested copy of said Warrant to each Town Meeting Member at least fourteen (14) days prior to the time of holding said meeting. Hereof fail not and make due return of this Warrant with your doings thereon to the Town Clerk at or before the time appointed for said meeting. Given under our hands this fifth day of June, 1995. Daniel A. Ensminger, Chairman A true copy. Attest: Sally M. Hoyt, Vice Chairman .-Catherine A. Quimby Town Clerk Camille. W. Anthony, Secretary Signature of Constable George V. Hines Bruce MacDonald SELECTMEN OF READING i 6 BASIS FOR FISCAL 1995 SCHOOL BUDGET SHORTFALL WHAT HAPPENED • Fiscal 1995 bottom line budget as adopted in April, 1994 and amended in November, 1994, could not support pattern of expenditures entered into in September, 1994. • Bottom line over expenditure: Approximately $250,000, or a 1.5% increase over current budget. HOW THE BUDGET SHORTFALL HAPPENED • Unlike in past years, major expenditures over budget were too great to be handled within the school budget. Funds normally expected to be used are: • unallocated funds initially in the budget for new positions & raises • savings such as those from teacher turnovers • transfers from revolving.. funds such as the Rise, Athletics, Cafeteria, and Use of-Property Funds • transfers within the school budget from areas over budget Reasons why the normal methods failed: • FY 1995 budget was not adjusted throughout the year to reflect changes in staffing and updated expense forecasts in building maintenance, special needs, and permanent substitutes. • Large sums were left unallocated in the budget, giving a false sense of an ability to cover line item shortfalls. • Over expended line items were allowed to go unaddressed. • Department heads' responsibility for budgets was not clearly defined. The twelve departments within the School Department are: 7 Schools (Principals are dept. heads), Athletics, Cafeteria, Special Needs, Central Office, and Building Maintenance. 7 Examples of expenditures exceeding budget allocations: SPECIAL EDUCATION ($197,000) 1. School transportation of special needs students 2. Tuitions of special needs students 3. Physical therapy of special needs students 4. SEEM assessment and SPED computers 5. Independent psychological examinations BUILDING MAINTENANCE ($42,000) 1. Seaming Birch Meadow School roof 2. Water and Sewer Bills 3. Door Replacement ADMINISTRATION ($25,000) 1. Tuition reimbursements . $86,000 46,000 40,000 15,000 10,000 20,000 12,000 10,000 12,000 2. Contracted Services (Labor Counsel, Search Comm. Advertising) 13,000 SALARIES (Approximately $105,000) 1. Permanent Substitutes (Approx. 10 Maternity leaves) 40,000 2. Bldg. Maint. (Not properly budgeted vis a vis end of FY 1994) 30,000 3. Other Staff (Not properly budgeted vis a vis September reality) 35,060 TOTAL OF MAJOR ITEMS $369, 000 OFFSETS OF SAVINGS & UNALLOCATED FUNDS -119,000 TOTAL 'SHORTFALL 250,000 8 PROPOSED PLAN TO ADDRESS PROBLEM • Entire budget adopted by Town Meeting to be broken down into specific budgeted areas. • Transfers of funds between accounts to be done in September and monthly thereafter to accurately reflect staffing levels and unbudgeted items. • No staff which have not been included in the budget are to be employed without the expressed consent of School Committee. Exceptions are those needed to carry out emergency Individual Educational Plans OEP's). • Department Heads and Principals of Schools to check status of appropriations monthly for problems & to notify Superintendent of any problems and/or negative items. • Shortfalls will require the Superintendent to place items from a prioritized list on hold, pending School Committee decisions on a course of action. Problem items to include such areas as : IEP's, turnovers & staff replacements, budgetary coding areas, and unforeseen & discretionary building maintenance. • Department Heads and Principals will be accountable for budgets. • School Committee and Finance Committee to be presented quarterly budget projections to year end. • Direct communication between the Finance & Accounting Departments, and the Schools, the Administration, and the School Committee will be encouraged. • The budget agreements between The Reading Board of Selectmen and The Reading School Committee, adopted for five years as of July, 1991, will be fully implemented. 9 WHAT WILL HAPPEN IF WE DON'T TRANSFER THE FUNDS AT TOWN MEETING 1. Bills for services rendered which are being held and bills committed, but not yet submitted for payment (approximately $215,000) will not be able to be paid in Fiscal 1995. 2. The School Department will furlough all employees (administration and other non teachers) for the remainder of the Fiscal Year and not pay salaries. (approximately $35,000). Teachers will not be affected, either because they have been paid for the summer already, or the funds will be encumbered for summer pay. 3. The Town cannot pay vendors for services rendered until another special town meeting. (Chapter 44 Section 63 of the General Laws). Therefore these bills held will not be able to C be paid out of the Fiscal 1996 school budget. 4. When vendors and/or employees are not paid for services rendered, legal action could ensue. Court orders are required to be paid by the Town. 10