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HomeMy WebLinkAbout2006-07-12 Finance Committee MinutescD Finance Committee Meeting ; i V- i 1 CLERK July 12, 2006 t^; DI G, MASS. Z006 AUG 31 P S: 01 The meeting convened at 7:33 p.m. in the Town Hall Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Chuck Robinson, Finance Coimnittee Members Paul Bolger, David Greenfield, Hal Torman and Michele Williams, Town Manager Peter Hechenbleilmer, Assistant Town Manager/Finance Director Bob LeLacheur, Superintendent of Schools Pat Schettini, School Department Human Resource and Finance Director Mary DeLai, School Committee Member Pete Dahl, Town Accountant Gail. LaPointe and Paula Schena. Chairman Chuck Robinson suggested holding off on reorganization and liaison assigrnnents until the full committee is present. Budget Process Review Comments - Chuck Robinson noted that everyone needs to agree on definitions. Paul Bolger referred to level budgeting as an example. Michele Williams noted risky items that are most volatile need to be identified. Pat Schettini asked what they are trying to fix - he needs to know what the problem is and what the task is. Hal Torman asked about full costing. The Assistant Town Manager noted that if a new position is added, all the costs, i.e., benefits will be included. He also suggested showing the total to run the Library including donations, etc. The Town Manager suggested showing how positions are charged, i.e., enterprise related, grants, etc. Draft Calendar - The Assistant Town Manager reviewed the draft calendar. A meeting in late June would be to establish meeting dates. Review the Subsequent Town Meeting Warrant and get an update on revenue estimates in September. A Financial Forum will be held in October to review certified free cash and all reserves. At this time, the Finance Committee will identify the amount of free cash to use in the current budget process, and that will be reduced when State Aid is known in January. The Finance Committee will then issue the process guidance to build lists. He suggests building the budget at the higher amount and then cut if needed - we don't want to cut jobs in October and then put them back in the budget in January. The Assistant Town Manager noted that we will have to use State Aid assumption and free cash and buffer with free cash the first year. Chuck Robinson noted that we are using free cash every year to balance the budget, and we have to keep our reserves at 5%. Gail LaPointe noted that we will know our free cash amount as soon as'possible - the deadline is September 15th. Finance Committee Meeting - July 12, 2006 - Page 2 l The Assistant Town Manager suggested submitting the preliminary budget in December, and then have a Financial Forum in January. Chuck Robinson asked for a history of projected revenues. Gail LaPointe noted that she can do a five year history. The Town Manager noted that the Finance Committee will meet on September 13th, October 4th, December 20`h, and then begin the budget review in February and finish by April 4, 2007. Pat Schettini suggested meeting in June to review the previous year's process. Presentation - The Assistant Town Manager reviewed a new format for presenting the budget. He noted that revenues will be first and that he will take away money from debt exclusion and MSBA because it distorts the revenues. Other revenues are earmarked for certain expenses. He added a section for accommodated costs that are shared by all. He also added a Section "I" - Community Priorities. This is where we would list services to be restored or new services. Substance Abuse Prevention could be a community priority. This is a way to focus on something fairly urgent. He has also added a % line that shows trends. Hal Torman noted that energy was being pulled out of the budgets and combined into one. David Greenfield noted this helps separate out the uncontrollable costs. Pat Schettini noted that the SPED and utilities will be ballpark numbers early in the process. The Town Manager noted that the debt service and capital should stay level. Chuck Robinson suggested taking out the details in capital so people don't pick and choose -just put in a number. The next meeting of the Finance Committee will be on August 2, 2006. Chuck Robinson requested that our legislators be at the meeting in October. A motion by Torman seconded by Williams to adjourn the meeting at 10:00 p.m. was approved by a vote of 5-0-0. Respectfully submitted, Secretary VU, , {