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HomeMy WebLinkAbout2008-05-14 Finance Committee Minutesc~ OF&-, Finance Committee Meetin g E May 14, 2008. REAM; P i QJy+7NGOP40a -251 ThP rnPPtina cnnvPnPrl at 715 n_m_ in the Conference Roo 1. ►i1: ell 'S root Readina, Massachusetts. Present were Chairman Andrew Grimes, Finance Committee members George Hines, Tom White, Barry Berman, Matt Wilson and David Greenfield. Also present were Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, DPW Director Ted McIntire, Facility Director Joe Huggins and DJ Cacciapuoti. i The meeting was called to order at 7:15 PM by Chairman Andrew Grimes. The first order of business was the Town Building Maintenance. Facility Director Joe Huggins spoke to the committee regarding the budget shortfall. He reported there is a $35,000 deficit in electricity and natural gas with key driver being the increase in rate and $10,000 in overtime due to painting projects for all town buildings. Joe Huggins reported that the town is working 'on steps to conserve energy i.e. the delay start of the cooling system for Town Hall. He also reported that by the Special Town Meeting on June 30 the deficit may only be $28,000 as the final numbers come in. It is up to the committee to decide how to handle this, the reserve fund or the budget. There was concern amongst the committee members regarding the shortfall. Joe Huggins explained that the rate increases did not come in until after the 08 budget was formed. A rate increase is included in the 09 budget. Peter Hechenbleikner reported that the new software will help keep better track. Peter Hechenbleikner spoke to the committee regarding performance contracts how that might help with energy savings. Joe Huggins also reported that they are looking into the rental fees of Town buildings to help recoup the costs. After some discussion, FINCOM decided this issue should be brought before June Town Meeting, and not be addressed by a Reserve Fund transfer. On page 4 of the agenda Bob LeLacheur reviewed why the bids were rejected for the Parker Field Synthetic Turf. George Zambouras reported that bidding will begin again on June 6 and that the state grant received for the project received an extension. Peter Hechenbleikner reported that there will be an Article at Town Meeting to address any increases. The state grant is $200,000 and private donations of $75,000. George Zambouras reviewed and discussed with the committee the Pavement Improvement Plan as outlined on pages 5-25 of the agenda. Peter Hechenbleikner reported that our first pavement plan was done 10 years ago. It has been updated. twice since then. The last time was December 2006. Bob LeLacheur reviewed the Reserve fund on page 28 of the agenda. There are two requests for a Reserve Fund Transfer. The first request is for $20,500 in debt service costs. At Annual Town Meeting, $47,000 was transferred out of this account. However, a recent private placement was determined to require more FY08 general fund money (for issuance costs) - and the same amount less over the period FY09-FY12. The second request is for a bill for $8,700 for advertising the full Special Town Meeting warrant for 4 days because of the Addison Wesley Project. On motion by Andrew Grimes seconded by David Greenfield to approve the transfer of $20,500 from the reserve fund to account # 01-710-5319 for the purpose of Debt Service Issuance costs. Fincom voted 6-0-0 On motion by David Greenfield seconded by Matt Wilson to approve the transfer of $8,700 from the reserve fund to account # 01-052-5301-055 for the purpose of Special Town Meeting advertising costs. Fincom voted 6-0-0 The next item on the Agenda is the role of the Finance Committee. Bob LeLacheur included in the agenda a few pages that he extracted from 3 different sources; Association of Town Finance Committee, Reading Home Rule Charter and the General Bylaws. A discussion ensued amongst the committee members, Peter Hechenbleikner and Bob LeLacheur regarding the Finance Committee's role and the working relationship with other boards and the budget process. Peter also spoke about Health insurance and Medicare. Bob LeLacheur discussed the investing policies. On page 54 of the agenda he reviewed where the Town currently invests money. Peter Hechenbleikner discussed the role of the Audit Committee. A discussion ensued about the process of bidding out the health insurance. Bob LeLacheur suggested that it is helpful to get comments from different parties in the budget process such as the Selectman and the School Committee and if you put your own thoughts in writing is helpful. On page 42 and 43 of the agenda, Bob reviewed and discussed the Health insurance trends. Moving on to the preliminary calendar, on page 43, for the Finance Committee for the upcoming year and the suggested dates for the Financial Forums, this is open for discussion. Some miscellaneous items for review: Letters from Mr. Pat Schettini regarding Medicare; a memo from David Greenfield regarding Reading Youth Baseball and the fees for maintaining the fields. Approve Minutes On motion by George Hines seconded by Tom White to approve the change requested by the School Committee to the minutes of the meeting dated March 12, 2008. Fincom voted 6-0-0 On motion by George Hines seconded by David Greenfield to approve the minutes of the meeting date April 9, 2008. Fincom voted 6-0-0 On motion by Barry Berman seconded by David Greenfield to approve the minutes of the meeting date April 28, 2008. Fincom voted 5-0-1. Tom White did not vote. Before the meeting adjourns Bob LeLacheur asked Fincom is they are going to schedule any meetings for July and August. At this time a decision has not been made. On motion by Andrew Grimes seconded by David Greenfield the meeting was adioutned at 10:10 PM on a vote of 6-0-0 Respectfully submitted, Secretary