HomeMy WebLinkAbout2003-07-23 Finance Committee Minutes~~;~=~EI~'ED
0 1`/ CLERK , 1-1 Finance Committee Meeting 'DING, MASS.
July 23, 2003
,0 3~UL 31 P 2:38
The meeting convened at 7:43 p.m. in the Conference Room, 16 Lowe treet, Reading,
Massachusetts. Present were Chairman Jim Francis, FinCom members Paul Bolger, Robert
LeLacheur, Hal Torman and Andrew Grimes and newly appointed FinCom member Marsie
West who has not yet been sworn in. Also present were Selectmen Camille Anthony, George
Hines and Gail Wood, School Committee members Pete Dahl and John Carpenter, Library
Director Kimberly Lynn, Library Trustees Vicky Yablonsky and Karyn Storti, and Town
Manager Peter Hechenbleilrner.
Jim Francis opened the meeting and indicated that the purpose is to get a head start on the
FY2005 budget process by doing some brainstorming with regard to how we can continue to
provide essential services in the community within the resources available. As such, we need to
do long range planning, think outside of the box with regard to revenues and reduction of
expenses.
He turned the meeting over to Camille Anthony who facilitated the meeting.
The first matter was to identify where we can go to seek out ideas for increasing revenues or
containing expenses. The following were suggested:
♦ the Massachusetts Municipal Association,
( ♦ statewide business councils (particularly with respect to marketing the Addison Wesley
property),
♦ tallc to local towns,
♦ national league of cities,
♦ International City and County Management Association,
♦ Massachusetts Association of School Committees,
♦ Massachusetts Association of Superintendent of Schools,
♦ Suburban Coalition,
♦ existing collaboratives,
♦ local citizens,
♦ employees,
♦ service providers such as the auditor and the Town's financial advisors
The group then identified investments to yield future cost savings. The following were
identified:
♦ investment in technology to save money in the long run,
♦ utilizing assets which are underutilized - like school buildings (there had been some
discussion about renting out part of the Reading Memorial High School for evening college,
and with a newly built school that might be possible),
♦ investing in grants writers to acquire grants that are consistent with the goals and values of
the community.
Finance Committee Meeting - July 23, 2003 - -page 2
The group then identified potential additional sources of revenue. These include:
♦ revenue from neighboring communities for providing services such as SPED
♦ charging more for services we provide - like snowplowing on private ways
♦ selling naming rights to schools, stadiums, etc.
♦ selling advertising rights on mailings, vehicles, etc.
♦ improving economic development such as redevelopment of Frugal Fannies (how was
Centennial Drive in Peabody developed?)
♦ hiring additional help for this, reviewing regulations, perhaps developing the Pearson site for
a hotel and casino
♦ working with the RMLD to modify the earnings distribution formula
♦ Library generate some revenue for some of the services that they provide
Discussion then went to cost savings and the following were identified:
♦ Working with the State to reduce mandates, particularly in the construction area like filed
sub-bid law and prevailing wage.
♦ Utilizing volunteer efforts such as the band parents do to supplement efforts of regular
employees.
♦ Go to a volunteer Fire Department
The following items were then discussed as general topic:
1. Debt service - we need a financing plan on debt service and capital.
( 2. We need to do a long-term financial forecast. The Town Manager noted that these are
especially difficult because things are subject to change, but there are some areas like
property taxes in the revenue area and labor costs in the expense area which can be
projected with some level of certainty.
3. We need to look at ways of becoming less dependent on state aid.
4. We're coming up on collective bargaining and need to try to reduce or contain salary
costs.
5. We need to look at our benefits and whether or not the amount that we are paying for
benefits is appropriate.
6. We need to look at the idea of how we do things. For example, we are using a 19th
century model for teaching, and we should perhaps explore better use of technology,
district zoning, etc. for education.
7. FinCom needs a better feedback loop on what has been spent. The Town Manager will
copy for the Finance Committee our "historical" analysis of expenses. It would be good
to have these going back for full business cycles if possible.
8. We need to understand what in the future is predictable, what is unpredictable, and what
is in between. We need to have a process that will allow us to address the unexpected or
the unpredictable.
Finance Committee Meeting - July 23, 2003 - -page 3
9. We need to have a budget overview - maybe a dozen or dozen and one half of the major
categories of where we expend our budgets and what the history has been.
10. We need to discuss the issue of building maintenance and how it will be managed and
who will be responsible for managing it.
11. The Town Manager agreed that he would prepare minutes from this meeting and at the
first part of the July 30th FinCom meeting we will discuss handing out assignments on
who would do what.
The brainstorming session ended and the FinCom stayed in session for other business. They
agreed to see if a Financial Forum on September 3, 2003 was feasible with the other Boards,
Committees and Commissions. Major topics would be how to address the $746,000 additional
State aid; how to finance the Reading Memorial High School project; and to update the bodies on
the brainstorming process.
The group agreed to meet on August 6, 2003 for additional brainstorming, and set aside August
13, 2003 also.
The Town Manager noted that we closed out FY2003 very well, and in FY2004 we have about
$115,000 extra budgeted in the Vocation School District, but our property and casualty insurance
will cost more than budgeted.
The Town Manager noted that the Killam School boiler replacement project is being done
cooperatively with the Town and the School Department working on it.
The Town Manager noted that policy books for FinCom had been handed out this evening and
they can be added to as FinCom desires.
On motion by LeLacheur seconded by Torman the Finance Committee voted to adjourn at 9:25
p.m. on a vote of 5-0-0.
Respectfully submitted,
ec eta