HomeMy WebLinkAbout2005-12-07 Finance Committee MinutesJoint Meeting of Finance Committee, Board of Selectmen, f V L
School Committee and Board of Library Trustees
:i C L E Ei K
December 7, 2005 i s, I l I h~ Ci , MA S S.
Z0 0b FEB I r A 11: 0 2
The Finance Committee and Board of Selectmen called the meeting to order at 7:45 p.m. in the
Coolidge Middle School Community Room, 89 Birch Meadow Drive, Reading, Massachusetts.
Present were Finance Committee Chairman Chuck Robinson, Finance Committee Members
David Greenfield, George Hines, Marsie West, Michele Williams and Andrew Grimes;
Selectmen Chairman Camille Anthony, Vice Chairman Richard Schubert, Secretary Joseph
Duffy, Selectmen James Bonazoli and Ben Tafoya; School Committee Chairman Rob Spadafora,
School Committee Members John Carpenter, Pete Dahl and Carl McFadden and Board of
Library Trustee Members Vicki Yablonsky, David Hutchinson and Susan Axelson. Also present
were Assistant Town Manager Bob LeLacheur, Town Accountant Gail LaPointe, Superintendent
of Schools Pat Schettini, Assistant Superintendent of Schools John Doherty, Director of Human
Resources and Finance for the Schools Mary Delai, Library Director Ruth Urell and Paula
Schena.
Cash Reserves and FY07 Revenue Forecast - Town Accountant Gail LaPointe noted that the
Town's policy is to have 5% of the operating budget in reserves, and that has been reduced by
the amount used at Town Meeting. The sale of real estate fund is at $2,477,777, and the Board
of Assessors is reviewing the overlay reserves. The sale of cemetery lots is at $48,516, and the
Cemetery Board voted to use $39,000 in the FY07 budget.
Gail LaPointe noted that property taxes increase 2%, and the new developments add more value
anticipated at $500,000. Provisions are made for abatements for people who challenge the value
of their property. Interest is increasing on local receipts. Regarding State Aid, the school
building money is separate. Two school projects are complete but not audited yet. Payments
have been too high so payments will be decreased now and in the future. State Aid has been
level funded. In the Operating transfers/available funds category, $1.5 million is available.
Chuck Robinson asked why the property tax abatements have decreased. Gail LaPointe noted
that it started at $500,000 and increased 2.50%. Pete Dahl asked what the actual numbers in the
past year were. Gail LaPointe noted that $200,000 - $250,000 and the Board of Assessors will
release what is left over. Camille Anthony noted that the Assessors felt that there was not
enough cushion with the big developments. Assessor Tom Ryan noted that they had $400,000
but had 80 requests last year. The prior years were 50-60 and they don't know how many they
will get this year.
FY 2007 Major Budget Issues - Bob LeLacheur noted that the School Resource Officer has been
funded for half of this year and all of FY07. Health insurance has a 15% increase - we have
bids out and should know more in January. Energy costs are increased $350,000 over FY06.
The rubbish contract is out to bid to start in July and we are predicting a 10% increase. Snow
and ice has increased 12.50%. The Nurse Advocacy Program has no money budgeted. There is
no change in the Stormwater Enterprise Fund.
Joint Meeting of Finance Committee Board of Selectmen, School Committee and Board of
Library Trustees - December 7, 2005 - Page 2
Chuck Robinson asked where the 12.50% increase in snow and ice came from, and Bob
LeLacheur noted that was a historical figure.
Rob Spadafora asked if the 15% increase in health insurance is the worse case scenario, and Bob
LeLacheur noted that our consultant is comfortable with a 15% increase. Selectman Ben Tafoya
noted that we will know more in the beginning of the year.and we hope to negotiate. The claims
history drives the premium up and he feels that 15% is a safe figure to use. Pete Dahl asked if
we will save money by bidding versus staying with MIIA, and Ben Tafoya noted that MIIA is
included in the bid process. Bob LeLacheur noted that we are not taking the lowest bid but will
take the best deal. Pete Dahl noted that the Town should seriously consider looking at the lowest
bidder because a lot of companies are changing their plans to save money.
Bob LeLacheur noted that expenses have increased 6.85% which is rather high but nothing
extravagant. Included in that is projecting to hire 4.6 seasonal laborers permanently. He also
applied a 6.85% increase to the school budget. Building Maintenance has an increase of 8% due
to fuel costs.
Bob LeLacheur noted that the debt service will creep down. The capital plan has a lot of items.
We are short $2.5 million in revenue. We can trim some expenses but it is a modest wish list.
The Town needs to invest in technology. If revenues don't change, then we would have to cut
approximately 5% off salaries.
(1
Camille Anthony asked what percent increase in salaries was used, and Bob LeLacheur noted
that it was 4%. Bob LeLacheur also noted that there are no debatable items. There are two new
positions in the Police Department. Camille Anthony asked about the Building Maintenance
Director position, and Pat Schettini indicated that he hopes to hire before the holiday break.
Bob LeLacheur noted that the Library budget has an increase of $150,000 to restore four hours.
Community Services has increased $160,000 due to three Elections. The Finance Department
has increased $70,000 and due to add a new Assessor. Department of Public Works has
increased $260,000 for the new hires in Highway. Public Safety increased $230,000, Dispatch
$10,000 and the Accounting Department budget is down.
Bob LeLacheur noted that he plans on presenting the budget to the Finance Committee on
February 15, 2006.
Rob Spadafora called the School Committee to order at 8:30 p.m.
School Building Projects - MSBA - Gail LaPointe noted that all of the paperwork for Parker and
Coolidge were sent to the State in March 2004. Our auditors are qualified to audit our projects.
We will be reimbursed for Parker and Coolidge. The State's new process will pay in a lump sum
and the Town only borrowed their share. We received a lump sum payment for Wood End.
Barrows will be audited in the Spring. The Town will start getting money for the High School
project in FY08.
Joint Meeting of Finance Committee Board of Selectmen, School Committee and Board of
Library Trustees - December 7, 2005 - Page 3
Bob LeLacheur noted that we have borrowed $35 million for the High School but were allowed
up to $58 million. We keep borrowing short term to hopefully get paid sooner.
Gail LaPointe noted that the audits are going smoothly. Michele Williams asked how long the
audit takes, and Gail LaPointe noted that Wood End is almost done. It takes about two weeks for
each project to be audited.
A motion by Williams seconded by Grimes for the Finance Committee to adjourn the
December 7, 2005 meetine at 9:00 p.m. was approved by a vote of 6-0-0.
A motion by Tafoya seconded by Duffy for the Board of Selectmen to adjourn the
December 7, 2005 meetinjZ at 9:00 p.m. was approved by a vote of 4-0-0 (Richard Schubert
left early).
vecr ec s ubmitted,
etary