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HomeMy WebLinkAbout2008-03-19 Finance Committee MinutesK t s'~s+~xcoue°~! Finance Committee Meeting March 19, 2008 1 VET x RE, Tai VEADING, HA S' 2004 AUG -1: P 12-410, The meeting convened at 7:10 p.m. in the Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Andrew Grimes, Committee members Hal Torman, George Hines, Barry Berman, Tom White, Matt Wilson and David Greenfield. Also present were Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Town Accountant Gail LaPointe, Director of Public Works, Ted McIntire, DPW Supervisor Bob Keating, DPW Business Administrator Jane Kinsella, Town Engineer George Zambouras, School Committee member Chuck Robinson and Bill Brown. Andrew Grimes called the meeting to order at 7:10 PM. The first order of business is the Department of Public Works FY09 budget. Ted McIntire with the support of Bob Keating began reviewing the budget of Parks & Forestry. Salary - Bob Keating's salary is split with the Cemetery Budget 8 Full Time employees Season Laborers Increases were per union negotiated salaries. Ted explained the process to the FINCOM, cost of Living and a step program. 1 Laborers get increases every 6 months per contract. This contract ends 6/30/10. Electricity - 15% increase, recommended by RMLD Bob Keating spoke about the fuel prices. They are not reflected here but will be in items such as stump grinding. This is done once a year now to keep costs down. Anything that has to do with petroleum products we will see affected. Upcoming projects include: the High School grounds will be turned over to the DPW soon, the Water Treatment plant when demolished, may be an additional field. In the next year or so will be looking to add a seasonal laborer to help with the added impact. The $17,000 is for the maintenance of the fields. The DPW is still short 4 positions. The Other category line item, $7,705, is for unforeseen work that needs to be contracted out. Cemetery No changes Hires long term seasonal laborers. Increases in salaries are union negotiated. Bob Keating discussed the line items with 0% increases. He explained that salaries and expenses are funded through sale of lots. 30% goes into a sale of lots fund and 70% goes into professional care fund and only the interest of that fund can be used. Bob Keating discussed the costs of the lots with the board. The Perpetual Care fund is the retirement fund for the cemetery for the time you have no more lots to sell. Administration Office - The DPW Administration Office has 4 non union positions. The expenses are maintained at 2%. Ted made a comment about Munis how it will be very helpful to his department, but will need additional help for the transition, does not know if this will be needed permanently. Will go forward with the staff they have but overtime might go up. The study that is going on identified that training is needed, do not have the details as of yet will be available the end of the week. Engineering - Salaries increases based on contract negotiations. They are fully staffed. The expense part is 2% increase. George Zambouras explained that the large expense is for maintaining the Auto CAD program. They have 2 licenses now would like to get 1 more at a cost of $8,000. George Zambouras explained they have a heavy work load with the upcoming projects but will get them all done with the current staff. Highway & Equipment - Salaries have the same guidelines, 5.3% increase is partly the cost of the fuel. Equipment maintenance for supplies and outsourcing are still not there, another $50,000 to $100,000 may be needed. They need to keep equipment out on the road. Part of this deficit is due to the age of the equipment, which will improve with recent capital spending. Money is spent where it is needed i.e. sidewalks, patching of the roads. In the November town meeting Equipment maintenance for outsourcing was bumped up by $50,000. With the new equipment this year does not know if this will be needed next year. They are also not fully staffed. There were only 3 mechanics for 6 months. A question was asked regarding the Labor under the mechanics it had a 20% increase. One issue was the step increases and the other Ted will get back to the FINCOM. The On-call premium is for 1 person in highway and 1 person in water to be on call for nights and weekends. This is a requirement under federal law. 1 Storm Water - 2 full time positions, others are portions of employees who work for the highway. Street Sweeping is funded here. Outsourced sweeping is reduced; most of the time DPW is doing the main streets. Recreation - 3 employees all non union workers. 2 + 2 increase. Programs are funded by user fees. Temp. salaries are people who teach the programs, coaches and referees. School rental is $25,000, this is a 2 year average of what has been spent in the past. A drop in contract service is due to running a particular program in house. Street Lighting - Actual cost in 2007 increased 10% in FY08 and 15% in FY09. Street lighting is contracted with RMLD. Peter explained the type of lighting that they use and what will be installed for the Downtown project. These bulbs will last longer than the lights being used now. A $50,000 grant was received to change the traffic signals to LED with a 7 year pay back. Bob LeLacheur reminded the board that for Town meeting we are going to roll the traffic light cost that is in the police budget into this one. Traffic light repair will still be in the Police budget. Peter explained to the board how they cut out 5% of the lights a few years back to balance the budget, have restored quite a few for safety issues. The new downtown street lights will be owned by the Town and we will only be paying energy costs and maintenance. Rubbish - Reduction in Collection. Collection is based on a bid. There is a.transfer from FY08 because tonnage is down. Up almost 18% in recycling. Looked into a pay as you throw program a few years back but the Selectman decided not to go with this due to . an override years ago. The overview notes mention 5 curbside leaf collections for $25,000 if approved. Under the contracts there is a provision for fuel surcharges but does not know what it is going to be. Bulk stickers and CRT removal is not listed here but should be mentioned here before Town Meeting. This is recorded under Local Receipts. A grant was received for 8 park recycling trash cans, will supply the board with the percentage of recycling. Disposal contract ends 2012. Snow & lee - Increased by $50,000. This year as of March 19 we are over by $492,000. Peter explained to the board how this is will be paid. Target budget amount is $500,000. Ted explained how the weather service helps determine how many crews are needed and how long they will be needed. Salt and sanding are done in house. A question was asked regarding the when the street signs will be done. Primary streets are completed. This has to be completed by 2012. Peter explained the street sign lottery and the adopt-a-sign program. Water - 2 areas - supply and distribution. The supervisor for supplies is reported under here. The distribution supervisor is listed '/Z in water and Y2 in sewer along with the water & sewer clerk. 2 seasonal laborers hired in the summer months. Salaries are contractual. Employees that are assigned to water & sewer and storm water plow snow are charged to snow & ice. Electricity up 15% recommended by the RMLD because of higher costs. Heating costs have gone from 0 last year to $6,000 this year because they thought the water treatment plant was going to be demolished last year. The $6,000 is for maintaining the water treatment plant... employees, heating costs. Ted explained how MWRA bills the Town for water. Sewer - Salaries based on the guidelines of the negotiations. On the expense side the MWRA assessment does not actually get voted until the end of June, this number was the most recent number given. The MWRA suggest we continue the water rebate program. It was suggested that the rebate program needs to be looked at. Peter will look at the program and its costs. The Liability in worker's comp is part of the Town budget. A hazardous waste program is budgeted under water & sewer. The surcharge for storm water is being used to replace drainage ditches. There is a schedule but they repair as needed. Vacuum truck rental, $7,800. Pension assessment is for 2 employees. Bob LeLacheur reviewed the final allocation for the enterprise fund. A handout was passed out. Objective is to do as much with capital as we can and avoid debt as long as we can. Reviewed the Sewer on page 2 & 4 of the handout, storm water on page 4. Peter Hechenbleikner and George Zamborous explained what the work entails for the Saugus and Ipswich River drainage improvements. Capital - Bob LeLacheur explained the two columns for capital, both a Spring and Fall 2008 allocation, as in the past. The Spring capital is funded in the budget, the Fall capital may be funded next November. The next items on the agenda were responses to previous FINCOM requests. Professional development was reviewed, as were other unfunded Municipal government requests. The Town Manager reviewed his prioritized list. Bob LeLacheur reviewed suggested budget revisions. State Aid may increase by $330,000; however both interest earnings and excise tax collections may now be overstated. Bob suggested to use the full $330,000 as replacement revenue for these two areas, and Peter Hechenbleikner agreed. FINCOM asked if we could bid out the property & casualty insurance - Peter estimated the cost would be $20,000. For the Annual Town Meeting Warrant, both Peter & Bob reviewed the articles. George Hines moved to recommend the cost to rebid insurance in the FY)( budget, seconded by Matt Wilson. The FINCOM discussed this matter further. FINCOM voted 7-0 to support this suggestion to the Board of Selectmen. FINCOM decided to review prior minutes presented at their next meeting. Hal Torman moved to adiourn the meeting at 10:20pm , seconded by George Hines, and passed 7-0. Respectfully submitted, Secretary