HomeMy WebLinkAbout2004-02-26 Finance Committee Minutes--f --b C 140-
Finance Committee Meeting Minutes
February 26, 2004
Call to Order:
~CEIVED
rol CLERK
MASS.
2GD14 M AIR 30 P 4: 30
The meeting convened at 7:30 p.m. in the Berger Room Town Hall, 16 Lowell Street,
Reading, Massachusetts. Present were Chairman Jim Francis, Vice Chairman Cathy
Martin, Finance Committee Members Richard McDonald, Charles Robinson, Robert
LeLacheur, Harold Torman, and Paul Bolger. Also present were Finance Director Beth
Klepeis and Town Accountant Richard Foley.
Approval of Minutes:
A motion was made by Robert LeLacheur to approve the minutes of January 14, 2004.
Paul Bolger seconded it. Vote to approve was 6-0-1.
Liaison Reports
Richard McDonald commented on the various school committee budget meetings. He
highlighted the budget requests for a business manager, nurse, 3 new teachers and a
lacrosse team. He stated that the school committee passed the superintendent's
recommended budget by a vote of 5-0-1.
James Francis stated that 3,200 surveys were returned with the census. Currently High
School students are tabulating them. We expect to have this back to make a report on the
findings at Town Meeting.
FY 2005 Budget Review
Accounting
Richard Foley stated that staffing would be level and funding will be utilizing the same
formula of water, sewer, and electric.
Robert LeLacheur asked if the business manger for the schools would change any duties.
Richard said no. This would be the same for maintenance.
Finance /Assessment
Beth Klepeis went over the Finance budget. She stated that the Assistant Treasurer was
left off last year's budget in error and that the increase was actually in the budget. The
appraisal fees are up because and expert appraisal service will be used for the landfill. It
will be approximately $21,000. She stated that 2005 would be the triennial evaluation,
which also requires an increase in costs.
Technology
Beth Klepeis stated that the '04 telephone budget was underfunded by $4,000 for a bill
that was not paid. The contract with Centrex is up in '04 and an RFP is out for the phone
system. We are looking for a new system because Centrex is expensive.
Beth noted that the process is behind schedule and that as a result there will be some
additional costs.
Robert LeLacheur asked Beth Klepeis to grade technology and she gave it an A-.
Human Resources
This level funded but Beth Klepeis noted that there has been some trouble pinpointing
job-advertising costs.
8:50 p.m. Finance Committee Member Marsie West arrives at the meeting.
Debt Service
Beth Klepeis noted that large increase due to the School Debt. $35 Million has been sold.
The Debt exclusion allows you to raise taxes to cover this increase.
The water and Sewer Debt is to be paid from the water and sewer fund.
Employee Benefits
Richard Foley passed out a recent actuarial evaluation. The committee felt that some of
the assumptions were ambitious, but Richard stated that this was not the year to tinker
with the assumptions.
We are 70% funded in Contributory Retirement. Non-contributory going down slightly
due to participation. There are 6 people in the program.
Unemployment
Beth Klepeis noted that this was over budget, but hope to cover it through the decrease in
health. This is mostly related to schools as teachers are having more difficulty finding
jobs.
Group Health
Beth Klepeis noted good news in that this is up 6.7% down from the estimate of 9%.
Also down from last year which was 7.2%.
Medicare / Social Security
Beth Klepeis noted that it goes up as you replace employees who don't have retirement.
Present employees can use the 457 Plan.
Workers' Compensation
Beth Klepeis noted the increase of 5% is good based on what is going on in the insurance
industry. We are on a fully insured program.
Police and Fire Indemnification
Richard Foley noted that this budget was based on actual in '02 and '03.
At 9:50 p.m. Cathy Martin made a motion to adjourn and Paul Bolger seconded it.
Motion was approved by a vote of 8-0.
i
spectfully submitted,
ecretary