HomeMy WebLinkAbout2003-04-23 Finance Committee Minutes"'FCEIVED
Finance Committee Meeting 0 4` ` ( C L E R
April 23, 2003 A D i r ? G , MASS.
0003 JUL 2 ! P 4: 01
The meeting convened at 7:40 p.m. in the Berger Room, 16 Lowell Street, Reading,
Massachusetts. Present were Chairman Catherine Martin, Finance Committee Members
Jim Francis, Hal Torman, Bob LeLacheur, Chuck Robinson, Town Manager Peter
Hechenbleilmer, Paula Schena and the following list of interested parties: Pete Dahl.
Approval of Minutes
A motion by Francis seconded by Torman to approve the minutes of February 12, 2003 was
approved by a vote of 5-0-0.
A motion by LeLacheur seconded by Robinson to approve the minutes of February 26,
2003 was approved by a vote of 5-0-0.
A motion by Francis seconded by Torman to approve the minutes of March 12, 2003 was
approved by a vote of 5-0-0.
A motion by Robinson seconded by LeLacheur to approve the minutes of April 9, 2003 as
amended was approved by a vote of 5-0-0.
Reports and Comments
Liaison Reports and Assignments - Bob LeLacheur noted that he attended a meeting of the
Stormwater Management Advisory Committee, and there will be no impact on free, cash. The
work could be assigned to the water revolving fund.
Jim Francis noted that the Reading Municipal Light Board and Citizens Advisory Board have
discussed Warrant Article 7 and both are against it. The Town Manager noted that the RMLB
voted to support the Article without 30B.
Finance Committee Chairman Catherine Martin noted that the House numbers came in $600,000
to the good but it is not definite yet.
School Committee Member Pete Dahl noted that we are committed to level service.
The Town Manager noted that we are moving forward with the Governor's worst case budget for
FY 2004. If we do get an extra $600,000, we could not tax the levy limit for FY 2004 or take
some or all of it and put it away for a rainy day. He suggests holding a Town Meeting when the
budget is finally approved by the State. He also noted that the August tax bill will be at the new
tax rate.
Bob LeLacheur asked if we could apply some of the extra money to paying down debt service.
The Town Manager noted that we could pay off the RMHS schematics, or Marion Woods in the
amount of $70,000 - $80,000, or we could pay some unfunded pension liability although it would
be drop in the bucket.
Finance Committee Meeting - April 23, 2003 - Page 2
Pete Dahl noted that when the Boards and Committees discussed the override, the rationale was
that if we got more money from State aid, then we wouldn't levy the tax limit.
Bob LeLacheur indicated that he felt money in the bank is more important and it would be better
to wait a couple of years.
Discussion/Action Items
Review and Vote - Annual Town Meeting Warrant
Article 3 - The Town Manager noted that there will be an instructional motion asking the State
to allow us to borrow money for 30 year bonds. This would give us a level payment of
$422/year and when the SBA kicks in, it will be less. If the Town bonds for 20 years, the
payments go up to $800/year. He also noted that he has received at least 12 phone calls
regarding SBA and he explained the 30 year scenario. They all agreed with it.
Pete Dahl noted that there is also the fear that the interest rates are going to increase.
Article 8 - The Town Manager noted that there is a person leaving the Water Treatment Plant so
that gives us an extra $5,000.
A motion by Francis seconded by LeLacheur to recommend the subject matter of Article 8,
as submitted on April 23, 2003 with an increase in line M1 of $5,000 and a decrease in line
M2 of $5,000, was approved by a vote of 5-0-0.
Article 9 - The Town Manager noted the FY 2004 CIP will be ready on Monday.
Article 11 - The Town Manager noted that Article 11- Water Treatment Plant Design Funding -
will be indefinitely postponed at this time. It is a $14 million project and we are working on
different models.
Article 13 - FY 2004 Budget - The Town Manager reviewed the changes that have been made.
He noted that the Conservation salary line increased by $3,000. Health salaries decreased $1,000
and expenses decreased $478. There is a decrease in water expenses of $10,000 and a decrease
in sewer expenses of $271. The State assessments can be reduced by $5,000.
A motion by LeLacheur seconded by Francis to recommend Line B1 of the FY 2004 Budget
in the amount of $29,660 was approved by a vote of 5-0-0.
A motion by LeLacheur seconded by Robinson to recommend Line B6 of the FY 2004
Budget in the amount of $111,246 was approved by a vote of 5-0-0.
A motion by LeLacheur seconded by Torman to recommend Line M2 of the FY 2004
Budget in the amount of $1,261,410 was approved by a vote of 5-0-0.
A motion by LeLacheur seconded by Torman to recommend Line N2 of the FY 2004
Budget in the amount of $3,318,413 was approved by a vote of 5-0-0.
Finance Committee Meeting- April 23, 2003 - Page 3
Approving "Make Up" of the Audit Committee - The Town Manager noted that the Attorney
General has approved the Town Bylaw modifying the Audit Committee. This modification will
increase the membership on the Audit Committee. He also noted that the Finance Committee
has two representatives with their terms expiring in 2004 and 2005. The School Committee has
one representative with a term expiring in 2005. The Selectmen have one representative with a
term expiring in 2003. The Moderator has one representative with a term expiring in 2004. He
proposes changing the Moderator representative to a Selectmen representative and adding a
RMLB representative with a term expiring in 2005 and a School Committee representative with
a term expiring in 2006.
Bob LeLacheur noted that there will be three terms expiring in 2005 and suggested making the
RMLB term expire in 2006. .
A motion by Francis seconded by Robinson to approve the makeup of the Audit Committee
as represented was approved by a vote of 5-0-0.
A motion by Francis seconded by LeLacheur to adjourn the meeting of April 23, 2003 at