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HomeMy WebLinkAbout2008-02-13 Finance Committee MinutesVIE ° "moo Finance Committee M ~ j . KIN February 13, 2008 a' . Tlie meeting convened at 7:10 p.m. in the Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Andrew Grimes, Finance Committee members Tom White, George Hines, David Greenfield, and Matt Wilson. Also present were Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Police Chief James Cormier, Andrew Scribner, Fire Chief Greg Burns, DPW Director Ted McIntire, School HR Director and Finance Director Mary DeLai and School Committee members Elaine Webb, David Michaud and Chuck Robinson. Andrew Grimes called the meeting to order at 7:10 PM to begin the first Budget session for Fiscal Year 2009, the order of business being an overview, then Police, Dispatch and Capital. Peter Hechenbleikner reviewed the FY2009 Town Manager's Budget Message that was handed out in tonight's package. He thinks it has been a very good collaborative budget process to date this year. The budget that everyone has in front of them is the Town Manager's Budget, which is a balance budget based on the guidelines the Finance Committee has given. The budget presented is fiscally sound and it keeps our cash reserves at reasonable levels. It uses State Aid numbers from the Governor's budget (except for casino revenue); it represents a lot of hard work by School and Town Officials, with a special note of thanks to both Mary Delai's efforts in Energy and the School Department's efforts to contain out-of-district special education costs . Bob LeLacheur gave a summary of the budget. He explained that the additional State Aid that was voted on at the Financial Forum to use in this budget allowed the operating budgets to increase to a healthy 4.48%. This includes increases in Municipal Government (4.39%), Schools (4.40%) and Facilities (5.88%), according to the model used by FINCOM. The Municipal government budget includes the addition of 2 public safety officers, one each for Fire and Police. Police Chief James Cormier reviewed the Public Safety budget with the Finance Committee. He had anticipated hiring two new officers, but is in the process of hiring four due to a retirement and a transfer. In the future he would like to increase staff to 41 from 39. There have been increases in calls and services, at such locations as Archstone and Walker's Brook. Peter Hechenbleikner reported that a few years ago a staffing survey was done and the recommendation was 41 officers. We will need to look at Addison Wesley impact, but it is not included in the FY09 budget. Chief Cormier explained some other activities that have increased the number of calls, such as increased traffic and property crimes. The department has become more proactive, but this is limited due to staffing. In 1983 staffed at 44 or 45 now at 39, the lowest has been 37. Chief Cormier requested $3,500 as a one time purchase for lights and lasers. Chief Cormier explained the need for additional training that the department would like to increase. Police training is budgeted at $21,000. Not in this budget but Peter Hechenbleikner explained that at the Board of Selectman meeting they have taken $25,000 and put it in the Human Resource Budget for training professional development for the entire Municipal government. Police Chief Cormier was asked to gather information from other Towns to compare trends to see if we can do anything to help improve. 1 Chief Cormier spoke about the Dispatch budget. One difference from last year's budget to this years regarding the salary increase was that last years budget did not include night differential. Since adding a new dispatcher they have saved on overtime. Peter Hechenbleikner spoke about trying to have 9 full time dispatchers, we are at 8 now. Ideally this would give us 2 dispatchers on every shift. Chief Cormier explained to the FINCOM the drivers for the Police overtime... vacation, sick, holidays. Training is generally done on an overtime bases. Investigations increase overtime. He explained the process of hiring a new police officer takes approximately one year. Peter Hechenbleikner explained the purpose of hiring new police officers is not to reduce overtime but to handle the increased workload. A staffing employment study had a statistic that if your overtime budget is less than 10% of your salary budget you are doing an excellent job managing your overtime. We are approximately at 7%. Chief Cormier was asked if he ever hangs a help wanted sign for experienced officers. He explained that they do that regularly, but there is just not enough movement. You see movement in bigger cities because they may offer more opportunities for advancement and /or pay. There does not seem to be a direct correlation between staffing and overtime. Chief Cormier explained that the Business Administrator has been a huge help. He has helped in the areas of technology; organizing & analyzing the budget; and in helping to secure grants. Peter Hechenbleikner has gotten two training grants for dispatch that is very helpful. Chief Cormier reported that they received a grant from Homeland Security to help upgrade their radio systems for both fire and police. Chief Cormier discussed the increases of activities in the Town and what has fueled the increases, and that they are very active with the Coalition Against Substance Abuse. Bob LeLacheur reviewed the summary of debt service. There are three types of debt: existing debt, new debt that has been approved but not yet issued; and debt that is not yet approved. Not yet issued are the ladder truck, Munis and the tennis courts. New and not approved by Town Meeting, but in the capital plan, are Public Safety technology, fire engine, cemetery garage and Imagination Station. The debt approach is not to extend debt very long. Shorter term debt improves our bond rating, and is cheaper. On page 2 of the budget summary, Bob LeLacheur reviewed the refinancing three of the, schools previous debt issues. The MSBA has agreed to make a lump sum payment of over $7 million in exchange not to take any more money for the three schools involved. This would free up $140,000 in FY09 that is currently being used for debt that can now be used for capital. This is the only debt that we can refinance now. We will have to re- issue just under $ 3 mil in debt instead of $11.4mil we have now. On Page 3 Bob reviewed the Capital plan. In the spring there are 2 items to ask Town Meeting for funding for FY 08, $115,000 for firefighter protective gear and $40,000 for the flag pole. The Schools are reviewing their needs and may add some roof repairs to this list. Bob LeLacheur continued reviewing the summary with the FINCOM for FY 09. At this time discussion took place regarding capital and the use of free cash. There is more work to do with Capital. A question was asked regarding Snow and Ice, it was reported that it is $200,000 over budget. Bob LeLacheur moved on to the Benefits summary and explained the health insurance budget, the impact of enrollment and the addition of new public safety officers (from the Municipal government's share of operating budget funding). Peter Hechenbleikner discussed the GIC. Bob LeLacheur reviewed the Worker's Comp budget, the Police/Fire indemnification (it is the least predictable), and the Contributory Retirement budget. The Towns pension fund is approximately 70% funded. On page 10 and l l Bob LeLacheur reviewed the Non-Contributory Pensions and Medicare and Social Security, including the recent change where part time employees are no longer eligible for Social Security. They have to set aside their own money for retirement funds. The Unemployment budget has been bumped up, running at a rate of about $40,000. The schools have requested a reserve fund transfer for the work on,the Library elevator. Last fall we transferred $30,000 for the repair. The final bill came in higher approximately $3,000 more. On motion by GeorIze Hines seconded by Andrew Grimes to approve the request of a $3,000 transfer from the reserve fund. Fincom voted 5-0-0 The school department will be resubmitting their budget due to some changes on the Superintendent's budget after the School Committee voted on this. It will be available after the February school vacation. Andrew Grimes discussed the Audit Committee meeting, reported that it went very well, and that it shows we are in very good shape. Next item is a reminder to pass out the document describing the Reading Retirement distributed by the Commonwealth of Massachusetts Retirement Administration Commission. The last item on the agenda is the minutes. The website will post upcoming meetings and information for all the committees. The Finance committee discussed the procedures for reviewing the Town Managers budget with the Budgets from the other departments. At this time the Finance Committee reviewed the minute of the meetings on December 5, 2007 and January 23, 2008 On motion by David Greenfield seconded by Tom White to approve the minutes of the meeting date December 5, 2007. Fincom voted 5-0-0 The minutes of the meeting dated January 23, 2008 have been tabled. There was concerned that the motion regarding the additional $290,000 from the Governor's budget did not reflect the statement George Hines made why he was against voting for this to be included in the FY 09 budget. Bob LeLacheur will make the correction. The next meeting is scheduled for Thursday February 28, 2008. On motion by Andrew Grimes seconded by George Hines the rneetin2 was adiourned at 9:30 PM on a vote of 5-0-0 Respectfully submitted, Secretary