HomeMy WebLinkAbout2003-04-09 Finance Committee MinutesFinance Committee Meeting i'; <<! CLERK
April 9, 2003 c G I I°°1 G . MASS.
2003 0 13 P 4* 4 q
The meeting convened at 7:30 p.m. in the Town Hall Berger Room, 16 Lowell Street,
Reading, Massachusetts. Present from the Finance Committee were Chairman
Catherine Martin, Vice Chairman Richard McDonald, Members Karen Epstein,
James Francis, Charles Robinson, Robert LeLacheur and Andrew Grimes. Also
present were Superintendent of Schools Dr. Harry Harutunian, School Committee Vice
Chairman Pete Dahl, Finance Director Beth Klepeis, Town Accountant Richard Foley
and Town Manager Peter Hechenbleikner.
Finance Committee Chairman Catherine Martin expressed congratulations to Reading
Pride on the success of the Prop 2%2 override vote on April 8th
On motion by McDonald seconded by Francis, the Finance Committee voted to go
into Executive Session for the purpose of discussion of strategy with respect to sale
of real estate to come back into Open Session in approximately five minutes. On a
roll call vote, all seven members voted in the affirmative and the motion was
carried.
The Finance Committee reconvened in Open Session.
Discussion/Action Items
Review and Vote - Annual Town Meeting Warrant - Article 14 - REAP Lease
On motion by McDonald seconded by Grimes, the Finance Committee voted to
recommend the subject matter of Article 14, as presented, by a vote of 7-0-0. Bob
LeLacheur will do the presentation at Town Meeting.
In response to a question, the Superintendent of Schools noted that REAP was late with
their lease payment in the month of July - it was posted on August 16th
Article 15 - Out of District Tuition - The Superintendent of Schools Dr. Harry
Harutunian and the Town Accountant Richard Foley gave the background on Article 15..
For FY 2002, the sum of $140,000 was received in SPED tuition. In FY 2003, the
amount was $84,000 although the estimate had been $150,000.
On motion by Francis seconded by Robinson, the Finance Committee voted to
recommend the subject matter of Article 15 by a vote of 7-0-0. Chuck Robinson will
do the presentation at Town Meeting.
Article 16 - Rental of School Property - The presentation was made on Article 16.
Catherine Martin noted that this was the housekeeping article. Dr. Harutunian noted that
these funds can only be used for building maintenance.
Finance Committee Meeting - April 9, 2003 - Page 2
At the end of last year, they had $70,000 in balance, and the School Budget for the
following year built in the use of $50,000. For FY 2004, the proposed budget used
$60,000.
The Town Accountant noted that three of the last five years, there was a surplus left in
this account, the biggest being $70,000.
On motion by McDonald seconded by Grimes, the Finance Committee voted to
recommend the subject matter of Article 16, as presented, by a vote of 7-0-0.
Richard McDonald will do the presentation at Town Meeting.
Jim Francis asked if there was any further information pursuant to his request on the
cafeteria fund. Dr. Harutunian agreed that he would get a summary.
On motion by Francis seconded by Epstein, the Finance Committee requested the
School Department to provide the Finance Committee with the March statements
for the School Lunch Program, and an additional summary of the cafeteria's
finances, and how they purchase capital equipment The motion was approved by a
vote of 7-0-0.
The Finance Committee discussed the school budgets. It was noted that the shortfall
between the requested budget and what was included in the override vote was $193,000.
All Day Kindergarten is expected to bring in $250,000 to address that shortfall. It was
noted that there is still an uncertainty with regard to State Aid.
Catherine Martin asked when the Finance Committee could see the list of cuts as State
Aid is further reduced. Dr. Harutunian noted that they would be able to have them in
June. They do not have a current priority list because of the override passing. Pete Dahl
noted that any reductions were still in a state of flux but the School 'Committee will be
working on them.
Chuck Robinson asked about the Kindergarten Program and the procedure for collecting
money. Do we need a revolving fund? It was noted that there is a revolving fund. The
School Department has accepted interest from kindergarten parents. For three elementary
schools, the interest is slightly below what the program can handle. For one elementary
school, it is above. The next step will be to have parents submit a non-refundable
$400.00 deposit which would be a one month "tuition" for all day kindergarten.
Catherine Martin asked what happens if people drop out of the program for the three
elementary schools which do not have enough people signed up yet. Would parents from
the other elementary school be able to send their child to that school? Dr. Haratunian
noted that this was still being worked out.
Karen Epstein indicated that she thought the understanding the handicapped program is
not going to be funded. Pete Dahl noted that if additional budget reductions are made,
that is a program that they would be considering.
Finance Committee Meeting - April 9, 2003 - Page 3
Bob LeLacheur asked if the School Department had to make further reductions because
of the State Aid reductions, whether or not the School Department would be able to
handle it after June 30th. The Superintendent and School Committee Vice Chairman
indicated that they would. Jim Francis reminded all that the Finance Committee votes
the bottom line for the schools.
Article 8 - Amending FY 2003 Budget - The Town Manager presented Article 8. The
Town Accountant explained how the reduction in revenue was going to be offset.
On motion by Grimes seconded by McDonald, the Finance Committee voted to
recommend the subject matter of Article 8, as presented, and the closing of the
Workers' Comp Trust Fund The source of funds will be from Free Cash and
Water Reserves as noted The motion was approved by a vote of 7-0-0. Andrew
Grimes will do the presentation at Town Meeting.
The Finance Committee reviewed Section K2 - K15, and had considerable discussion on
the capital improvements. The Finance Committee agreed that the money included in the
capital program for the Advance Life Support and for the roads was specifically part of
the override. The Town Manager noted that, when the Board of Selectmen agreed to the
$1.1 million number, he had agreed that anything over and above what was required for
operating expenses would be used for capital. Therefore, an additional $9,000 in fire,
$65,000 for a dump truck, and $10,000 in the flexible account was included in the capital
section of the budget.
On motion by McDonald seconded by Grimes, the Finance Committee voted to
recommend Articles K2-K15 capital, as presented, by a vote of 7-0-0.
The Town Manager noted that the Board of Selectmen would be discussing the method of
financing the debt for the High School project at their meeting on April 15th at 7:05 p.m.
Finance Committee Members should attend.
Catherine Martin asked if we should use the same methodology for the Barrows and new
school too, and Beth Klepeis felt that we should not because they are already on an
existing list.
Article 13 - FY 2004 Budget - The Finance Committee reviewed Article 13.
On motion by Francis seconded by Robinson, the Finance Committee voted to
recommend Section 7 - Building Maintenance in the amount of $3,239,861, as
presented, by a vote of 7-0-0.
On motion by McDonald seconded by LeLacheur, the Finance Committee voted to
recommend Section I - Public Schools in the amount of $26,492,645 by a vote of
7-0-0.
Finance Committee Meeting,_ April 9, 2003 - Page 4
On motion by Robinson seconded by Francis, the Finance Committee voted to
recommend Section A - Accounting, as presented, in the total amount of $114,580
by a vote of 7-0-0.
On motion by McDonald seconded by Epstein, the Finance Committee voted to
recommend Section B - Community Services in the total amount of $1,308,343 by a
vote of 7-0-0.
On motion by Grimes seconded by Robinson, the Finance Committee voted to
recommend Section C - Finance Department in the total amount of $841,086 by a
vote of 7-0-0.
On motion by Francis seconded by LeLacheur, the Finance Committee voted to
recommend Section E - Libraries in the amount of $869,000 by a vote of 7-0-0.
On motion by Epstein seconded by McDonald, the Finance Committee voted to
recommend Section F - Public Safes in the total amount of $6,325,738 by a vote of
7-0-0.
On motion by LeLacheur seconded by Francis, the Finance Committee voted to
recommend Section G - DPW Lines G11-G18 in the total amount of $3,405,194 by a
vote of 7-0-0.
On motion by Grimes seconded by Epstein, the Finance Committee voted to
recommend Section J - Vocational Schools in the amount of $312,111 by a vote of
7-0-0. The Town Manager noted that the large increase was due in large part to the fact
that the Governor's Budget recommended its Chapter 70 money be given to the towns
and then the towns can distribute the regional school district share of that as part of their
assessment.
On motion by Robinson seconded by Francis, the Finance Committee voted to
recommend Section K - Debt Service in the amount of $3,873,200 by a vote of
7-0-0.
On motion by McDonald seconded by Grimes, the Finance Committee voted to
recommend Line L8 - Employee Benefits in the amount of $7,458,422 by a vote
of 7-0-0.
On motion by Epstein seconded by Francis, the Finance Committee voted to
recommend Section M - Public Works Water in the amount of $2,812,582 by a vote
of 7-0-0. The capital improvements were discussed and are part of this program.
On motion by Grimes seconded by Robinson, the Finance Committee voted to
recommend Lines NI-N4 - Public Works Sewer in the amount of $4,002,106 by a
vote of 7-0-0.
Finance Committee Meeting - April 9, 2003 - Page 5
Article 5 - Disposal of Surplus Equipment
On motion by Grimes seconded by Robinson, the Finance Committee voted to
recommend the subject matter of Article 5, as presented, by a vote of 7-0-0. Robert
LeLacheur will do the presentation at Town Meeting.
Article 11 - WTP Design. Funding - Public Works Director Ted McIntire presented the
subject matter of Article 11. The Town Manager noted that the Water and Sewer
Advisory Committee is meeting next Wednesday on this capital project which is the
renovation of the Water Treatment Plant. Part of what they will be reviewing is the effect
of the debt service on the capital project on. water and sewer rates and on the debt
structure and until that review is done, the Town Manager will not recommend action by
the Finance Conunittee or Town Meeting at this point.
The Finance Committee agreed to review this matter at a special meeting on April 23rd at
which time they would look at the rest of the Capital Improvements Program also.
Therefore, the report will show this Article is action pending.
On motion by Francis seconded by Robinson, the Finance Committee voted to
recommend the proposed language under Article 6 addressing Charter changes for
the RMLD by a vote of 7-0-0. Jim Francis will do the presentation at Town Meeting.
The Town Manager had not shown this as an item for the Finance Committee to review
but the Finance Committee felt that there were financial issues including the use of the
Uniform Procurement Act by the Light Department and, therefore, they felt that they
should make a recommendation.
Article 12 - Revolving Funds
On motion by McDonald seconded by Grimes, the Finance Committee voted to
recommend the subject matter of Article 12 by a vote of 7-0-0. Karen Epstein will do
the presentation at Town Meeting.
Article 19 - Petition Charter Amendment requiring Board of Selectmen to Sign. Warrants
The Finance Committee reviewed the subject matter of Article 19. The Finance
Committee felt that this was redundant, and the checks and balances that they needed
were in place because the Board of Selectmen directly appointed the Town Manager and
the Town Accountant.
On motion by Robinson seconded by LeLacheur, on a motion to recommend Article
19, the Finance Committee voted 0-7-0 to not recommend this Article. Jim Francis
will do the presentation at Town Meeting.
The Finance Committee agreed to meet on April 23rd to review the Capital
Improvements Program (the Warrant Report will show action pending), and the Water
Treatment Plant project.
Finance Committee Meeting=April 9, 2003 - Page 6
On motion by McDonald seconded by Robinson, the Finance Committee voted to
adjourn their meeting of April 9, 2003 at 10.45 p.m. by a vote of 7-0-0.
Respectfully submitted,
retarA