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HomeMy WebLinkAbout2004-03-24 Finance Committee Minutesc_ 1\1 E i Y,,"Cl CLERK Finance Committee Meeting March 24, 2004 Zaat, G,~ . 5 P 4: S S The meeting convened at 7:30 p.m. in the Town Hall Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Jim Francis, Vice Chairman Richard McDonald, FinCom Members Catherine Martin, Chuck Robinson, Marsie West, Hal Torman, Robert LeLacheur, Paul Bolger and Andrew Grimes. Also present were School Committee Members Pete Dahl, John Carpenter, Elaine Webb, Lisa Gibbs and Rob Spadafora as well as Superintendent of Schools Pat Schettini. In addition, Finance Director Beth Kiepeis, Assessor Ralph Colorusso and Board of Selectmen Chairman George Hines were present as well as Town Manager Peter Hechenbleikner. The School Committee called themselves to order as they also had a posted meeting. Approval of Minutes On motion by McDonald seconded by Torman, the Minutes of February 26, 2004 were approved as submitted by a vote of 9-0-0. On motion by McDonald seconded by Torman, the Minutes of March 10, 2004 were approved as amended by a vote of 9-0-0. Discussion/Action Items Reserve Fund Transfer - A reserve fund transfer request in the amount of $6500 for appraisals related to Appelate Tax Board cases was presented to the Finance Committee. Following questions to Beth Klepeis and Ralph Colorusso, on motion by Martin seconded by McDonald, the Finance Committee approved the reserve fund transfer in the amount of $6500 to Account No. 01-031 by a vote of 9-0-0. Liaison Reports Questionnaire - Finance Committee Chairman Jim Francis reported on the status of the survey compilation. About 700-800 surveys out of 3400 completed have been compiled. The Reading Memorial High School students have done as much as they can. Jim Francis asked if Finance Committee Members and their families would each take a portion of the remaining surveys and enter the data. He will e-mail them a spreadsheet to use. There was general consensus that they would do this. Final results should be done within two weeks and e-mailed to Jim Francis who will then do a presentation to Town Meeting. Light Department Earnings Distribution Survey - The Town Manager briefly reviewed the Light Department Earnings Distribution Survey. The Finance Committee find the information very useful. One question that was raised was what the portion of the Town's borrowing capacity that was used by the Light Department was in each case. This information had not been requested as part of the survey. Finance Committee Meeting - March 24, 2004 - Page 2 FY 2005 Budget Review - In light of the School Committee being present, the Finance Committee went to Article 13 which is an Article to rescind debt authorization for the new elementary school and increase debt authorization for the Barrows School. Town Manager Peter Hechenbleikner noted that the bids have not been received for the Barrows School project yet, and will not be received until April 30, 2004 when Town Meeting is in session. The School Committee's intent is to take the bids on April 30, 2004, evaluate them immediately, and then meet with the Finance Committee with regard to Article 13. Finance Committee Member Chuck Robinson asked what happened with the bidding that was suppose to take place in December. Superintendent of Schools Pat Schettini noted that the School Department didn't want to compete with the bidding on the High School. They've also been working to reduce the scope of the project. Therefore, they decided to delay the bid until this Spring., Finance Committee Vice Chairman Dick McDonald noted that the new school project came in under bid. Why did the School Committee think that the Barrows School would be higher? It was noted that the price of steel was high and the current cost estimates are right about at the maximum available funding. The Finance Committee and School Committee Members then talked about the schedule. The bids are due April 30, 2004 which is a Friday. The School Committee will meet immediately to accept the bids. Perhaps the Finance Committee could meet on Saturday. School Committee Member Pete Dahl suggested that the School Committee could make a presentation in advance of the bids being received so that the Finance Committee will understand the new school finances and the projected finances for the Barrows School. That way, once the bids are in, the Finance Committee will be educated on that aspect of the issue. Jim Francis asked when construction would begin, and Pat Schettini noted within 30 days after the acceptance of bids. Construction should begin in the Simmer on the new portions of the building, leaving a window of opportunity to. continue school at Barrows School if the new school is not available at the end of August to move the Barrows School students into. Jim Francis wondered if we should schedule a Special Town Meeting for mid-May. School Committee Member Elaine Webb noted that all of the bidders are pre-qualified and references will not need to be checked after the bids - that's being done now. Finance Committee Member Paul Bolger wanted to know who was saying that the bids on Barrows will come in higher. Pat Schettini noted that the architects and the Project Manager are concerned about available funds for this project. Finance Committee Member Catherine Martin agreed with Jim Francis that we should have a Special Town Meeting in mid-May. The consensus was that we would hold Towne Meeting in session until May 6, 2004 and do Article 13 at that time. The consensus was also to have a joint Finance Committee Meeting - March 24, 2004 - Page 3 meeting between the Finance Committee and the School Committee on April 12th at a School Committee Meeting. We will also post a Finance Committee Meeting for May 3, 2004 at 7:00 p.m. and post a Finance Committee Meeting for May 5, 2004 at 7:30 p.m. The Finance Committee then went back to the FY 2005 proposed operating budget and voted the sections as follows: Section A - Accounting - On motion by Grimes seconded by West, the Finance Committee voted to recommend Lines Al and A2 in the total amount of $117,608 by a vote of 9-0-0. On motion by McDonald seconded by Martin, the Finance Committee voted to recommend Lines B26 and B27 Community Services in the total amount of $1,444,202 by a vote of 9-0-0. On motion by West seconded by Torman, the Finance Committee voted to recommend Lines C12 and C13 Finance Department in the total amount of $939,633 by a vote of 9-0-0. On motion by Martin seconded by McDonald, the Finance Committee voted to recommend Line Items D1 and D2 for the Library in the total amount of $905,074 by a vote of 9-0-0. On motion by Torman seconded by Bolter, the Finance Committee voted to recommend Lines E9 and E10 for the Public Safety Budget in a total amount of $6,559,149 by a vote of 9-0-0. j i On motion by Grimes seconded by West, the Finance Committee voted to recommend Line Items Fll and F12 F13 F14 F15 F16 and F17 Public Works in the total amount of $3,868,509, with the source of funding as noted, by a vote of 9-0-0. On motion by McDonald seconded by Torman, the Finance Committee voted to recommend the Building Maintenance Budget Lines GI-G4 in the total amount of $3,445,066 by a vote of 9-0-0. On motion by West seconded by Martin, the Finance Committee voted to recommend Line H Schools in the amount of $27,946,916 by a vote of 9-0-0. On motion by Martin seconded by West, the Finance Committee voted to reconsider the motion on Line 6. The motion to reconsider was approved by a vote of 9-0-0. On motion by Robinson seconded by LeLacheur, the Finance Committee voted to recommend for the School Budget Line H the sum of $27,921,916 by a vote of 9-0-0. The $25,000 difference will be added to the debt service and capital section as a separate line for School Technology. On motion by Martin seconded by Grimes to recommend Line I Vocational Schools in the amount of $214,650 was approved by a vote of 9-0-0. Finance Committee Meeting - March 24, 2004 - Page 4 Line Jl Debt Service, on motion by McDonald seconded by Bolger, was recommended in the amount of $6,790,140 with funding as noted by a vote of 9-0-0. Line Jll was added to the debt service for School Technology in the amount of $25,000. On motion by Robinson seconded by Torman, the Lines J2 - Jll in the amount of $757,500 was recommended by a vote of 9-0-0. Line K8 Employee Benefits - On motion by LeLacheur seconded by Martin, the Finance Committee voted to recommend the sum of $8,044,049 for Employee Benefits by a vote of 9-0-0. On motion by Martin seconded by West, the Finance Committee voted to recommend Line Ll Stabilization Fund in the amount of $100,000 with the source of funding as noted by a, vote of 9-0-0. On motion by Bolger seconded by Torman, the Finance Committee voted to recommend Lines Ml-M4 Water Fund in the total amount of $2,909,732 by a vote of 9-0-0. On motion by McDonald seconded by Robinson, the Finance Committee voted to recommend Lines NI-N4 Sewer Fund in the total amount of $4,066,823 by a vote of 9-0-0. Review Town Meeting Warrant - The Finance Committee then reviewed the Town Meeting Warrant Articles as follows: j i Article 4 - No action is required. Article 5 - Disposal of surplus tangible,property. On motion by Grimes seconded by West, the Finance Committee voted to recommend the subject matter of this Article by a vote of 9-0-0. Article 6 - Approval of prior year's bills will be indefinitely postponed so no action is required. Article 7 - Amend the FY 2004 Budget. On motion by McDonald seconded by Torman to amend the FY 2004 Budget as proposed was recommended by a vote of 8-1-0, with Martin opposed. She indicated that she felt we should use more of the reserve fund to balance the budget. Article 8 - Approval of the FY2005-FY2014 Capital Improvements Program - Action pending on this Article, it will be reviewed by the Finance Committee following their meeting with the School Committee on April 12, 2004 regarding Article 13. Article 9 - Approving revolving- funds. On motion by Martin seconded by Robinson, the Finance Committee voted to recommend the subject matter of this Article by a vote of 9-0-0. Finance Committee Meeting - March 24, 2004 - Page 5 Article 10 - Franklin Street sidewalks will be indefinitely postponed and no action was required. Article 12 - MWRA Grant/Loan. On motion by Torman seconded by Grimes, the subject matter of Article 12 was recommended by a vote of 9-0-0. Article 14 - Pay for Active Duty Reserves and National Guard. On motion by Martin seconded by McDonald, the subject matter of Article 14 was recommended by a vote of 9-0-0. Article 15 - Acceptance of Gifts. On motion by West seconded by Grimes, this Article was recommended by a vote of 9-0-0. There was discussion on putting together the final reports of Town Meeting. Assignments of each Article were made to FinCom Members. The Finance Committee will meet on April 12th jointly with the School Committee and then to finish up any final Articles. The Finance Committee will also be posted for Town Meeting on May 3, 2004 at 7:00 p.m. and separately posted for a meeting on May 5, 2004 at 7:30 p.m. Either the May 3rd or the May 5th meeting would not be needed but are set aside to discuss Article 13. The Finance Committee asked the Town Manager to review Article 7, the amendments to the FY 2004 Budget, to see if any of these transfers could be reduced. They also asked to review the requirement that the Town pay for the tuition for the student at Minuteman Vocational School District, and why that would not come out of the School Committee Budget. On motion by Torman seconded by Martin, the Finance Committee voted to adjourn their meeting of March 24, 2004 at 10:30 p.m. on a vote of 9-0-0. pectfully bmitted, P reta