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Finance Committee Meeting
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March 5, 20080- r1
The meeting convened at 7:05 p.m. in the Conference Room, 16 Lowell Street, Reading,
Massachusetts. Present were Vice Chairman Marsie West, Finance Committee
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, Town Accountant Gail LaPointe, Fire
Chief Greg Burns, Board of Assessors members Robert Nordstrand and Ralph Colorusso
and School Committ ee members Elaine Webb, Karen Janowski and Chuck Robinson.
Marsie West called the meeting to order at 7:05 PM.
Bob LeLacheur reviewed tonight's agenda and had the members of the Board of
Assessors begin the meeting.
Assessors
Board of Assessors members Robert Nordstrand and Ralph Colorusso spoke to the
Finance Committee regarding the departure of Town Appraiser Dave Billard. They
reported that they are actively looking for a replacement but there is not too much of a
response. They feel the salary being offered fails in comparison with other communities;
they also mentioned that the appraisal software (CAMA) is not widely used in this area.
Dave Billard was recruited by the Town of Andover with a 20% increase in pay. The
Board of Assessors' feels they need a salary in the high $80,000s to be competitive. At
this time the position is graded at $62,000 - $72,000. A counter offer was considered but
1 that entailed going to the Board of Selectman for a classification change. Mr. Billard did
not want to go through that process. Any increase in pay is not included in the FY09
budget, but the Board wanted to give the Finance Committee a heads up to what is
happening at this time because they foresee coming back to the Finance Committee to get
an increase in salary. Bob LeLacheur referred the members to the section. of the
Assessor's budget. Robert Nordstrand outlined the quality of work Dave Billard had
performed for the Town. A question was asked regarding the uniqueness of the CAMA
software. Ralph Colorusso stated that the software is not outdated but perhaps there is
better software. The upkeep of this software was relatively inexpensive for the Town
because Mr. Billard was an intricate part of the software. Ralph Colorusso gave an
explanation to the Board as to how the CAMA software and the other available software
deal with data collection. The software is used mostly in the western part of the state
malting it harder to hire someone in this area. Peter Hechenbleikner stated that the Town
can not look into another system at this time; they need to find an assessor first. There are
a lot of variables involved. Robert Nordstrand feels we may be forced to change if we
can not find a person who can use CAMA. The Board of Assessor's are looking for
someone with at least 3 years of experience with assessing and also someone who has
been before the Appellate Tax Board. Peter Hechenbleikner informed the Finance
Committee that they are about to enter a contract for a pay classification study. Robert
Nordstrand reported to the Finance Committee that Dave Billard left them in a good
working position and will be available to them for consulting.
Fire Department Budget
Fire Chief Burns reviewed the Fire Dept. Budget. He reported that the fire department is
responsible for fire suppression, fire prevention, emergency medical service and
management. Last year brought in $590,000 in ambulance fees. One significant change
in this year's budget has been a firefighter position has been added to address the increase
demand in emergency service. On average every ten years ambulance calls have gone up
10%. In the FY09 budget there have been increases in Captain and Lieutenants line
items due to contractual changes, new firefighters going to through the step systems,
firefighter clothing and flag maintenance. Chief Burns spoke about replacing a 1986 fire
engine. They have received the new fire engine that was authorized last year and will be
in service at the end of this month. They will be able to take out a 1986 engine and put in
a 1995 engine in reserve. The last 1986 engine is having repairs right now and the trade
in value is $1,000. Peter Hechenbleikner stated that the intent is to have a warrant article
in the fall 2008 Town Meeting to replace the last 1986 .engine. Peter commented on the
new firefighter position which is considered part of the base budget. This will decrease
the overtime. George Hines mentioned that the revenue has gone down; Chief Burns
explained that Medicare is introducing a.fee schedule. Chief Burns explained the fees
charged to outside carriers. Peter stated that Reading is unusual in the level of support
that we supply to the community. We supply quicker and cheaper service to our residents.
The new engine is designed to carry advanced life support supplies. Chief Burns
reviewed why the training expense has decreased. Peter explained the hiring and training
process. Chief Burns explained the increase of calls are due to people are going home
from hospitals sooner, people call 911 more whether or not they need to be transported to
a hospital. Overtime budget drivers are injuries, open positions or back filling for
someone who is attending the academy and transfers. Another driver is paramedic
training. Overtime expense is under 10% of the wage budget. Chief Burns thinks a
transfer of at least $40,000 is needed this year. There are 2 firefighters going to the
academy, 2 firefighters are out with knee injuries and 1 is out with a hand injury. Peter
Hechenbleikner explained to the FINCOM that they are trying to budget as realistically
as possible. They have had decent years without injuries and transfers and bad years like
last year and this year. A question was asked regarding a wellness and loss prevention
program in town. Peter explained that these programs are with Worker's Comp and that
the Firefighters are not covered by Workers Comp, they are self insured. There are some
programs not covered by Workers' Comp but scheduling is hard due to work demands.
Moving on to maintenance repairs, it was explained that the $2,600 budgeted is for other
repairs besides the fire engines. The fire engine repairs are done by the DPW. Chief
Burns stated it is a tight budget.
Accounting Budget
Gail LaPointe reviewed the salary budget and the number of employees. Gail LaPointe
mentioned to the board that the transfer back in October to hire a new person because of a
pending retirement has worked out well. For FY09 overtime has changed, some of the
overtime money is due to a part time person doing training on her off days. Also they are
instituting a whole encumbrance system on how things are reported. She expects the
clerks in her department to be the trainers for the other departments. Expenses are pretty
simple, would like to send the new clerk to an accounting class.
Finance Budget
Bob LeLacheur began with the Elections & Registrations budget. This has increased
because we are going from 1 election to 3 elections next year. The Town Clerk gave a
summary of the cost of this year's election which was just under $26,000. A budget of
$75,000 for 3 elections next year is reasonable. Peter explained the staffing at elections,
which is required by the state. George Hines asked if the school is going to be opened
during the elections. A decision has not been made but at the last election a late start for
students was put in place relatively close to the election date. A question was asked
regarding the Equipment and Supplies, money was budgeted in FY07 but there is nothing
budgeted in FY09. It was explained that FY07 had expenses because the voting was
done at different locations and residents needed to be notified. Also a trailer was
purchased in anticipation of keeping it at the field house. Peter explained what the
outsource expense comprised of... mailings, printing of ballots, advertising. Regarding
equipment, in November Town Meeting approved $22,000 for new equipment so we
should be set for a while. The only changes might be in the handicap accessible
machines. The next item in the Finance Committee budget the driver is a bid that still has
a couple years to run with the current auditor for $52,000. Professional development
money, sometimes you spend. Tonight's handout has a copy of information that is
distributed by the Association of Town Finance Committees. The Assessing budget has
already been discussed. The HR is a fairly simple budget. Two most obvious changes
are the pay in class study expense in FY08 is not repeated in FY09, and the Board of
Selectman decided to put about $25,000 into professional development that will be split
across the whole municipal government. A discussion ensued amongst the board
regarding the distribution of this money. Bob LeLacheur will have more detail on all
professional development. A question was asked why medical services are driven by
employee turnover. Peter explained that pre-employment physicals for new employees
cost. Fire and police department are more expensive. As of February the town has spent
$5,600 on advertising and $5,000 on medical. Bob LeLacheur moved on to the
Technology budget, expenses have gone down a bit, salaries are pretty straight forward.
The overtime is mostly due to MUNIS. Bob LeLacheur and Peter Hechenbleikner
discussed with the FINCOM the new data center, the wide area network and some
features they would like to see in the future to make it easier for customers interface with
Town Hall. The next area is the Town Clerk budget. He reported that the new Assistant
Town clerk has worked out very well. The last section of the Finance budget is the
`catch- all' which is the general finance budget. There is an expected reduction in
overtime. Bob and Peter discussed with the FINCOM how the steps and grades work. A
question was asked regarding the postage. Peter explained that this is just for the Finance
department. The majority of the cost is the mailings for the bills, water & sewer and real
estate. There is interest among residents in increasing the frequency of real estate tax bills
from twice/year to four times, which will be possible when MUNIS is fully operational.
Town Manager's Budget
Peter Hechenbleikner reviewed the Town Manager's Budget. The total budget is up
3.5%. The Town Managers salary was approved by the Board of Selectman. The office
includes the Office Manager, a part time assistant, and a High School assistant. Overtime
is for the Office Manager to attend the Board of Selectman meetings. Photocopy
Equipment is for all departments and it includes paper. Maintenance of Equipment is for
the typewriters. Postage is down. Printing and Stationary are envelopes for all of Town
Hall (excluding Finance). Professional Development - MMA dues & ICMA dues. The
Department Head Retreat includes all department heads in Town & Schools. The Flexible
Account - used to be capital - is for departments to do unanticipated things that no one
has in their budget, ex. Flag pole for West Street Fire Station, chairs for the office. The
Selectman budget - 0% increase. The Law budgets include Town Counsel, Finance Tax
Title, and Schools for special needs. Labor counsel is going up due to negotiations. A
question was asked what happens if the Town is sued. Peter explained that would be a
reserve fund transfer. Property & Casualty Insurance - This has increased due to an error
in the FY08 budget, an item was misclassified. The Town receives a discount for having
health, workers and Property & Casualty insurance with MIAA. This is estimated the
actual numbers will be out the end of April early May.
Community Services Budget
Peter continued reviewing the Community Service Budget.
Planning Division - 2 positions will be filled, a new staff planner to help the
Town Planner and a junior, planner funded by the inspection revolving fund.
Permits Coordinator
Conservation
Zoning Board of Appeals - we do not fund anything. This is used for a recording
secretary.
Inspections- full time bldg inspector, full time assistant inspector, part time gas,
wiring inspector and a replacement inspector to fill in. The assistant inspector's
salary and benefits are paid out of the inspection revolving fund.
Health - Health Service Admin salary is down due to a new employee; public
health nurse has increased hours. Health inspector was increased last year to 1.1
FTE; is okay for this year may change next year. Sealer of weights and measure
no change. Nurses are part of the clinic revolving fund. On the expense side
supplies has increased due to testing. Clinics no change. EMARC has increased.
Mosquito Larvae control has increased.
Elder/Human Services - Staff levels same, change is a nurse advocate that was
hired in 2008. Small increase in van driver. Some offsets from MVES and
Hospital Trust Fund. On the expense side things are pretty stable.
Veterans - Part of a district with Wilmington. Frank salary is only shown on the
budget. The unknown is the Veteran's assistance, budgeted $60,000. The Town
will get back 75 cents on the dollar. in the cherry sheet from the state. Peter
explained to the board how the assistance program works. He explained how they
reached the $60,000 budget figure and how they will fund this budget if more
money is needed. A discussion ensued at this time amongst the board members
( regarding how much should be budgeted, how this amount was reached and what
will happen if it is underfunded. George Hines at this time wanted to make it
clear he was not comparing Veterans with snow and ice and resents the
implication. Tom White apologized because that was not his intent at all.
General Department - overtime is related to the recording secretary for the
planning, conservation and zoning appeal committees. On the expense side
substance abuse is not in this budget. The Town is doing a lot of other things for
substance abuse through the Coalition against Substance Abuse and grants.
Bob LeLacheur reviewed with the FINCOM the answers to the questions that were asked
at previous meetings from the Police, Library, RMLD Pension Fund, and Town
Accountant regarding grants. Bob LeLacheur reviewed the upcoming meetings and
wanted to discuss if this was an adequate number of meetings. FINCOM decided to also
meet Thursday, March 27. Chuck Robinson and Elaine Webb told the board if they have
any questions for next weeks' meeting to get them in by Friday, March 7.
On motion by Hall Torman seconded by George Hines the meeting was adjourned
at 10:10 PM on a vote of 7-0-0
Respectfully submitted,
Secretary