HomeMy WebLinkAbout2003-09-17 Finance Committee MinutesFinance Committee Meeting
September 17, 2003
RECEIVED
TOWN CLERK
READING, mASS.
2004 JUL b P 4: 4 8
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 Dick
McDonald, Finance Committee Members Paul Bolger, Andrew Grimes, Chuck Robinson,
Hal Torman (Marsie West arrived late). Also present were School Committee Member John
Carpenter and Rob Spadafora and Town Manager Peter Hechenbleilmer.
Approval of Minutes
On motion by McDonald seconded by Grimes, the Finance Committee Minutes of August
27, 2003 were approved by a vote of 5-0-0.
Discussion/Action Items
The Town Manager reviewed the material that was submitted this evening with the Fincom
packet. It includes information on a national citizens survey, spreadsheets put together by the
Finance Director showing the total cost to the average taxpayer of options A, B and C for
financing Reading Memorial High School, a memo from the Finance Director regarding reasons
to support a Stabilization Fund, and a copy of a draft outline of the Subsequent Town Meeting
Warrant. Also enclosed was a copy of the Press Release announcing the Master Plan update
meeting on the economic development forum for October 15, 2003, a copy of a report on the
proposed sale of the Reading Municipal Light Department done by Paul Devlin in 1987, and a
copy of materials on the Hospital Trust Funds including the original language and the CY PR.ES
agreement on this fund.
Follow Up from Financial Forum - The Finance Committee reviewed the follow up from the
Financial Forum. Paul Bolger indicated that he had talked to Dana Hennigar from the Trust
Fund Commissioners, and suggested that representatives from FinCom meet with the Trust Fund
Commissioners. He also indicated that he is meeting with somebody who is expert in valuing
energy utilities and businesses. John Carpenter indicated that the School Department had
reviewed the potential of establishing a public clinic at the High School as part of the High
School project, and had directed their architect to move forward accordingly. Paul Bolger noted
that the Superintendent of Schools Pat Schettini is tallcing with three colleges - Salem State,
Merrimac and Middlesex Community College about possibly using the new Reading Memorial
High School for a satellite facility.
There was discussion about naming rights and the Town Manager suggested that the first steps
would be for the School Committee to decide whether or not it was interested in this and, if so,
for what particular facilities. All agreed that the Town had no expertise in this area but that this
potentially had a lot of bang for the buck. They also tallced about advertising at various town and
school facilities.
Finance Committee Meeting - September 17, 2003 - Page 2
Reading Taxpayer Survey - There was discussion about the survey. The Board of Selectmen and
the School Committee have been asked for comments about the survey. The Town Manager
indicated that he didn't have any particular comments but would remind the Chairman of the
Board of Selectmen about this. The survey needs to be done by the Financial Forum on October
9th so it can go in the Census.
Stabilization Fund - There was discussion about the Stabilization Fund. The Town Manager
reviewed Beth Klepeis' memo with the Finance Committee. The following questions were
asked:
Is the Stabilization Fund the only item identified by Moody's in the downgrade
that we have not yet addressed?
2. Using an assumption on the effect of not getting an upgraded Moody's rating,
what would the cost for the High School project be over and above what it
would be if the rating was upgraded?
3. Is this upgrade a one year issue or multi-year issue?
Further discussion ensued on the Stabilization Fund. It was noted that the reason we have a
"surplus" in revenues is that the Town developed the budget based on the Governor's proposed
budget, and the State came up with additional revenues. There was discussion as to whether or
not this is likely to happen again.
On motion by Grimes seconded by Torman, the Finance Committee voted to include
Article 6 establishing a Stabilization Fund on the Warrant for the Subsequent Town
Meeting as drafted. The motion was approved by a vote of 7-0-0.
It was noted that this is not necessarily a Fincom recommendation in support of the Stabilization
Fund but is intended to get this matter before Town Meeting.
Review of Draft Warrant - Subsequent Town Meeting - The Town Manager reviewed the
Warrant as it is currently drafted with the Finance Committee. There was discussion on the
proposed Article 10, that would in effect transfer some debt authorization from the new school
project to the Barrows school project. John Carpenter and Rob Spadafora noted that this was for
flexibility purposes so that when the Barrows school bids were taken, we would be sure to have
adequate funding for the project.
The Finance Committee talked about a presentation to Town Meeting on the "brainstorming."
Participants will get material emailed to the Town Manager's Office to be included in the report.
Andrew Grimes will do a sheet on the statistics, Paul Bolger will update his sheet on resource
utilization, Chuck Robinson will do the same on surveys, we will use whatever forecast
information we have as a result of the Financial Forum on October 9, 2003, and Jim Francis will
do a cover memo.
Finance Committee Meeting - September 17, 2003 - Page 3
Schedule - The Finance Committee talked about their schedule and agreed to meet on October
16, 2003 to review the Warrant.
On motion by McDonald seconded by Torman, the Finance Committee voted to adjourn