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Home My WebLink About2008-03-26 Finance Committee Minutesy ` Boa 0eR Finance Committee Meeting March 26, 2008 all The meeting convened at 7:05 p.m. in the Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were FINCOM Chairman Andrew Grimes, Vice Chairman Marsie West and members Tom White, George Hines, David Greenfield, Hal Torman, Barry Berman and Matt Wilson. Also present were, Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Fire Chief Greg Burns, Police Chief Jim Cormier, DPW Director Ted McIntire, Library Information Services division head Lorraine Barry, Library Children's Services division head Corinne Fisher, Board of Library Trustees Chairman Karyn Storti, Vice Chair Suzy Axelson, and members Dick Curtis, Victoria Yablonsky, David Hutchinson, and Cherrie Dubois. Present were Assistant Superintendent of Schools John Doherty, School Director of Finance and Human Resources Mary DeLai, School Principals Joe Finigan, Karen Callan and Catherine Giles, School Budget Parents Patty de Garavilla, Paula Perry, Gary DeRusha, School Committee Chair Lisa Gibbs and members Chuck Robinson, Chris Caruso, Elaine Webb, Karen Janowski and David Michaud. Superintendent of Schools Pat Schettini joined the meeting in progress. Andrew Grimes called the meeting to order at 7:05 PM. Bob LeLacheur reviewed answers to previous FINCOM questions about the DPW and some minor accommodated costs. He handed out a revised Budget Summary which classified all budget items in the manner that FINCOM and Town Meeting would vote ( budget authority. He suggested that first FINCOM have a discussion about additional State Aid, then vote the budget line items, and wrap up by voting the Annual Town Meeting Warrant Articles. Bob LeLacheur reminded the FINCOM about his concern about the FY09 revenue assumptions on both excise tax collections and interest earnings. He showed FINCOM a bulletin from the MA DOR that cautioned communities on over-estimating these two items in their FY09 budgets. Peter Hechenbleikner spoke about how relatively healthy the Town of Reading's FY09 budget is when compared to virtually all other communities, and that the fortuitous extra state aid should not be spent as. it was needed to supplement existing revenue assumptions. He told the FINCOM that on March 25, 2008 the Board of Selectmen voted unanimously (5-0) not add any more funding to the FY09 operating budgets because of this revenue concern. Andrew Grimes spoke of his desire to use as much as $280,000 of the additional $330,000 in state aid for the operating budget in FY09, saying it was time to reward ourselves and try to move several budget initiatives forward. He said our conservative practices in the past had worked well, and it was time to reap some immediate benefits. Several FINCOM members voiced varying degrees of support. Matt Wilson expressed a desire to use all of the state aid, and some free cash to fully fund all of the school requests. He acknowledged that this was rolling the dice, and stated that the Town would need to support an operating override in the near term if things did not work out with revenues. George Hines spoke of using none of the additional state aid, since the full amount may be needed to supplement the shortfalls in revenue. He did not think the community would embrace an override given the current economy. David Greenfield moved to recognize the additional $330,000 in FY09 state aid in the budget, and to use $200,000 in the operating budgets and $130,000 to reduce interest earnings, seconded by Marsie West. Further discussion ensued. Barry Berman moved to amend the amount used in the operating budgets to $110,000, seconded by Tom White. George Hines again spoke out against using any funding for the operating budgets. Matt Wilson again spoke in favor of using the full amount. The amendment was not passed by a 2-6 vote, with only Berman and White supporting it. On the main motion, FINCOM voted 5-3 in favor, with Hines, Berman and White opposed. Andrew Grimes said that they would divide the $200,000 according to the FINCOM budget model, so that the schools would get $128,000, the municipal government would get $61,000, and the Buildings Maintenance would get $11,000. A discussion ensued about what new or restored services would be included in each budget. Pat Schettini agreed that the top item (HS Health & Wellness Teacher) on the school priorities would be honored. After a discussion about benefits, the FINCOM agreed that the schools should set aside $25,000 of the $128,000 to pay for benefits for new hires, an allocation only 75% as high as the municipal government would pay, since the Town does not fund teacher's retirement. The remaining $103,000 would go into the overall school budget for FY09. The first $2,008 on the Municipal government portion of the budget was agreed to be 1 added to the Fire Department wages, to correct a previous clerical error. On the municipal government side, a motion by Hines, seconded by Marsie West to add the so-called option B for Library Sunday hours at a cost of $38,679 passed 8-0. A motion by Berman, seconded by Grimes, to restore $20,313 for curbside leaf collection passed 6-2 (Greenfield & Hines voting against). A motion by Grimes, seconded by West, for line B99 Benefits in the amount of $10,885,903 was passed 8-0. This figure included the $25,000 from the schools and a previous $39,000 from the municipal government for new hires in FY09. A motion by Hines, seconded by Greenfield for line C99 Capital in the amount of $650,816 was passed 8-0. A motion by Grimes, seconded by Hines for line D99 Debt Service in the amount of $6,959,654 was passed 8-0. Matt Wilson asked School Committee member Chuck Robinson to address some other concerns from the Schools. A discussion about an FY07 overcharge of $75,000 on water billing ensued. Since the refund was issued in FY08 - a different fiscal year - the schools must let the refund flow back into free cash. After some debate, the FINCOM agreed to vote line U99 Schools out of order. A motion by Grimes, seconded by Greenfield for line U99 Schools in the amount of $35,796,170. This figure is $113,000 ($103, 000 for schools and $10,000 for school. buildings) higher than the number submitted by the Town Manager's budget, as previously discussed. Matt Wilson moved to amend this figure, seconded by Hal _Torman, by an additional $75,000 to be funded by free cash. The amendment passed 7-1, with Hines voting against. FINCOM restated for the record their intention that this $75,000 in funding was not to be included in the base budget for FY10, that it was a one-time refund. The main motion was restated as $35,871_,170 and passed 8-0. A motion by Grimes, seconded by ]Hines for line V99 Town Buildings in the amount of $708,156 was passed 8-0. This figure is $1,000 higher than that submitted by the Town Manager. A motion by West, seconded by Hines for line H99 Vocational Schools in the amount of $424,113 was passed 8-0. A motion by Hines, seconded by Greenfield for lines M1 and M2 Accounting in the amount of $124,189 was passed 8-0. A motion by White, seconded by West for lines N15 and N16 Finance in the amount of $1,372,459 was passed 8-0. A motion by Greenfield seconded b_y Torman for lines P1 and P2 Library in the amount of $1,203,906 was passed 8-0. This figure is $38,679 higher in line P1 than that submitted by the Town Manager, as discussed for restored Sunday hours of operation. A motion by Torman seconded by White for lines 06 and 07 Town Manager's Office in the amount of $692,818 was passed 8-0. A motion by Grimes seconded by Hines for lines R14 and R15 Community Services in the amount of $927,231 was passed 8-0. A motion by Wilson seconded by West for lines S19 and S20 Public Works in the amount of $2,663,649 was passed 8-0. A motion by Wilson seconded by West for line S16 Street Lightine in the amount of $226,505 was passed 8-0. A motion by Berman seconded by Torman for line S17 Rubbish in the amount of $1,468,276 was passed 8-0. This figure is $20,313 higher than that submitted by the Town Manager, as previously discussed for curbside leaf collections. A motion by Berman seconded by West for line S18 Snow & Ice in the amount of $450,000 was passed 8-0. A motion by West seconded by Wilson for lines T7 and T8 Public Safety in the amount of $7,622,882 was passed 8-0. A motion by Hines seconded by White for line W5 Water in the amount of $5,348,472 was passed 7-0 (West absent). A motion by Grimes seconded by White for line X5 Sewer in the amount of $5,049,535 was passed 7-0 (West absent). A motion by Greenfield seconded by Torman for line Y5 Storm Water in the amount of $315,514 was passed 8-0. FINCOM next discussed the Warrant for Annual Town Meeting. A motion by Hines seconded by Torman to support Article 4 Amend the Capital Improvements Program passed 8-0. Greenfield will do the report at Town Meeting. A motion by Grimes seconded by Torman to support Article 5 Amend the FY08 budget for General Fund Wages & Expenses passed 8-0. Hines will do the report at Town Meeting. A motion by Torman seconded by Greenfield to support Article 5 Amend the FY08 budget for General Fund Capital passed 8-0. Hines will do the report at Town Meeting. A motion by Grimes seconded by Torman to support Article 5 Amend the FY08 budget for Enterprise Funds passed 8-0. Hines will do the. report at Town Meeting. A motion by Grimes seconded by West to support Article 7 Approve the FY09 - FY18 Capital Improvements Program passed 8-0. Berman will do the report at Town Meeting. ( Article 8 Chapter 90 funds will be action pending. Article 9 Tangible Property trade-in will be action pending. A motion by Hines seconded by West to support Article 10 Revolving Funds passed 88=0. Torman will do the report at Town Meeting. The dollar figure for the Inspections revolving fund was clarified to be a maximum of $250,000. On motion by Andrew Grimes seconded by George Hines the meeting was adjourned at 10:40 PM on a vote of 8-0. Respectfully submitted, Secretary Finance Committee Meeting March 26, 2008 Suggested FY09 Budget Motions Move to support line item B99 Benefits in the amount of $10,821,903 Move to support line item C99 Capital in the amount of $650,816 Move to support line item D99 Debt in the amount of $6,959,654 Move to support line item F4 Stabilization Fund in the amount of $0 Move to support line item H99 Vocational Education in the amount of $424,113 Move to support line items: M1 Accounting Salaries and Wages in the amount of $122,917 M2 Accounting Expenses in the amount of $1,272 Move to support line items: N15 Finance Salaries and Wages in the amount of $848,496 N16 Finance Expenses in the amount of $523,963 Move to support line items: P1 Library Salaries and Wages in the amount of $905,376 P2 Library Expenses in the amount of $259,851 Move to support line items: Q6 Town Manager’s Office Salaries and Wages in the amount of $180,643 Q7 Town Manager’s Office Expenses in the amount of $512,175 Move to support line items: R14 Community Services Salaries and Wages in the amount of $777,956 R15 Community Services Expenses in the amount of $149,275 Move to support line items: S19 Public Works Salaries and Wages in the amount of $1,981,924 S20 Public Works Expenses in the amount of $681,725 S16 Public Works – Street Lighting Expenses in the amount of $226,505 S17 Public Works – Rubbish Expenses in the amount of $1,447,963 S18 Public Works – Snow & Ice Control Expenses in the amount of $450,000 Move to support line items: T7 Public Safety Salaries and Wages in the amount of $7,264,027 T8 Community Services Expenses in the amount of $358,855 Move to support line items: U99 Schools in the amount of $35,683,170 V99 Town Buildings in the amount of $707,156 Move to support line items: W5 Water in the amount of $5,348,472 X5 Sewer in the amount of $5,049,535 Y5 Storm Water in the amount of $315,514