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HomeMy WebLinkAbout2005-03-09 Finance Committee MinutesFinance Committee Meeting R E E I V E D March 9, 2005 0` I N CLERK DING., MASS. The meeting convened at 7:30 p.m. in the Town Hall Conference Rfflp4iAfi62Yw611 c~lft, Reading, Massachusetts. Present were Chairman Chuck Robinson, Finance orninittee Members Dick McDonald, Bob LeLacheur, Hal Torman, Michele Williams, Marsie West and Andrew Grimes. Also present were Finance Director Beth Klepeis, Town Accountant Richard Foley, Town Manager Peter Hechenbleikner and Paula Schena. Approval of Minutes A motion by LeLacheur seconded by McDonald to approve the Minutes of March 2, 2005, as amended, were approved by a vote of 6-0-0. (Andrew Grimes had not arrived yet.) The Town Manager reviewed the Committee's handout. He noted that the Meals on Wheels information and insurance information that was requested are in the handout. Discussion/Action Items Budget Review Accounting - Town Accountant Richard Foley was present. The Town Manager noted that Richard Foley is retiring at the end of September. There will be a three week overlap of the new Town Accountant. A portion of the Town Accountant's salary is charged to. water and sewer and electric. The $10,000 overlap includes accrued vacation time. Marsie West asked if this salary amount will be enough, and the Town Manager noted that it may not because we might have to hire someone at the same rate. Chuck Robinson asked the Town Accountant if he had less work due to the new position at the School Department. Richard Foley noted that the workload has shifted and he is now able to do other things. Hal Torman asked the Town Manager if he will be able to find a' replacement by September 151, and the Town Manager indicated that he is confident he will - a Screening Committee is being set up. Finance - Finance Director Beth Klepeis was present. The Town Manager noted that the changes in the Finance Department are a model for replacing Beth Klepeis. It will call for an additional 1/z FTE. The Town Manager noted that the audit is part of the budget. Jim Francis has resigned from the Audit Committee and the Finance Committee needs to make a recommendation. Finance Committee Meeting - March 9, 2005 - Page 2 - In the Assessment area, there is a consulting expense. All exempt buildings need to be appraised this year. The Assessors are concerned that they won't be able to keep up the inspections. They are asking for a full-time person, and he suggests a consulting service. Beth Klepeis noted that we also have to assess personal property this year. Marsie West asked if the increase in the Appraiser's salary is normal, and the Town Manager indicated that it is not. The Appraiser had an offer from another town so we moved him to the top step to keep him. Technology - The Town Manager noted that we hired a GIS Coordinator last year and she has been very valuable. Michele Williams asked if technology is responsible for back up. Beth Klepeis indicated that they are, and she also noted that the Fire Chief is working with the GIS Coordinator for better mapping to lower the insurance rates for residents. Chuck Robinson asked if we have the new phones yet, and the Town Manager noted that we do not. We are having a problem with Verizon in getting the line that we need. Hal Torman asked if the telephones affect any of the schools, and the Town Manager noted that it does for the Wood End, RMHS and Barrows Schools. Human Resources - The Town Manager noted that the advertising account is always short. The medical services account covers drug testing for CDL, physical exams, etc. Finance - The Town Manager noted that the plan is to have a Finance Director/Assistant Town Manager. Michele Willams asked what banking services are, and Beth Klepeis noted that it is for checks, direct deposits, etc. She also noted that we went out to bid for banking services and did very well. Debt - Beth Klepeis handed out revised debt budget due to changes in the water projects. She noted that there are three major water projects that are going to take place - the Water Treatment Plant, West Street and Franklin Street. Bob LeLacheur asked if the storm water management was reflected in this budget. The Town Manager indicated that it is not .because the Board of Selectmen decided to wait until the Fall Town Meeting. Chuck Robinson asked what is the next step for the Water Treatment Plant. The Town Manager noted that the Water Treatment Plant is at 66% design. There will be a presentation on water projects to the Board of Selectmen on April 12th, and it would be good for the Finance Committee to attend. The Town Manager noted that the projects will be bid, and then we will have a Special Town Meeting within 30 days of the bid openings. Beth Klepeis noted that the SBA paid $6,180,000 this year so we didn't have to borrow that much money. When the schools are finished, we will get the rest of the money. Finance Committee Meeting - March 9, 2005 - Page 3 Contributory Retirement - The Town Manager noted that we have a defined benefit plan and the Board Administrator is very busy. RMLD is part of the pension system. Chuck Robinson noted that the Administrator's FTE has increased, and asked if that is because she is so busy. The Town Manager noted that the full-time person is also paid as the Assistant Town Accountant. The Town Manager noted that the non-contributory pension is for-employees who worked for the Town prior to 1936. Unemployment costs are due to School Crossing Guards who are allowed to file for unemployment during vacation time. The Town is self insured for unemployment and we are not looking at reducing positions. Health and Life Insurance - Beth Klepeis noted that our health plan is very attractive. The co- pays have been increased to help reduce the cost. Worker's Comp and Property and Casualty - The Town Manager noted that we do not have those numbers yet. He also noted that we did not have any DPW Worker's Comp cases this year or last year. Police and Fire Indemnification - The Town Manager noted that Worker's Comp pays 60% of salary and medical costs. Police and Fire employees get. full base pay and medical expenses. Bob LeLacheur asked if this is a bargaining item so that if someone gets injured, they can do light duty. The Town Manager indicated that we have it in the Police Department but not in the Fire Department. Vocational School - The Town Manager noted that we received an assessment that is tentatively $40,000 more than what we budgeted. Beth Klepeis noted that the only way the Vocational School can raise money is through assessment. There is an increase of one student from Reading. The Town Manager noted that the Vocational School Administrator has offered to come out and explain the budget if the Finance Committee wants. The consensus of the Committee was to have the Vocational School come out to their March 30`h meeting. The Town Manager noted that the cost of mailing the Charter to all residents will be around 'DI 0,000, and he will be asking for a reserve fund transfer for this. He also noted that Verizon is coming in as a provider and we might need to hire Special Counsel. A motion by Grimes seconded by West to adjourn the meeting of March 9, 2005 at 9:25 p.m. was approved by a vote of 7-0-0. espectfully sub itted, ecr to