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HomeMy WebLinkAbout2003-03-12 Finance Committee Minutes'ECEI`dED Finance Committee Meeting Minutes 0 AI IH CLERK March 12, 2003 MASS.' 2003 Mhy 13 P 4' 5Q 7:30 P.M. Call to Order: Finance Committee Members: Cathy Martin, Jim Francis, Karen Epstein, Dick McDonald, Chuck Robinson, Randy Mason, Hal Torman, Bob LeLacheur and Andrew Grimes. Town Manager: Peter Hechenbleikmer. The School Budget is on the agenda tonight, but they will not be joining the meeting until 8:10 P.M. Peter Hechenbleikner provided the following updates. Landfill Project: Peter provided the numbers associated with Pre-Closure, Post Closure and Payment in lieu of taxes. He also stated that there would be weekly updates of the landfill project on the website. Cathy Martin asked when we start to draw money from the project. Peter stated that it is based on performance. First payment is expected in about six months (phase one work). This will be about $750,000 to go into the Sale of Real Estate Fund. The second phase at approximately July 15, 2004 (Home Depot) would put $2,250,000 into the Sale of Real Estate Fund. Bob LeLacheur asked if we could get a member from the development team to give a progress report at our June meeting. Snow & Ice: As of today we are $276,000 over the budgeted amount of $250,000. Peter stated that FEMA declared Middlesex County a disaster for the Presidents Day snowstorm. Reading will be getting some federal relief funds, but we will probably not know how much until Town Meeting time. Peter provided a memo to the Finance Committee requesting a deferral of expenditures in excess of available appropriations, to the FY 2004 tax rate. Jim Francis made a Motion to defer Snow & Ice costs in excess of the annual appropriation to the FY 2004 tax rate. The Motion was seconded by Dick McDonald. The Motion was approved by a Vote of 9-0. Progress Report on FY 2003 Budget: Peter went over revisions to the FY 2003 budget reductions (revised 1/31/03). They were as follows: Bond Issuance: $9,100 -Charge to projects Social Worker: $8,358 - COA approved transfer from Burbank Trust Wetland Fees: $5,000 - Conservation approved the charging of more wetland fees Rubbish re-neg.: $60,000 - Revised contract approved and signed Total Approved as of 1/31/03: $362,525 (Detail was provided in page 9 of packet) Overview of FY 2004 Budget: Peter went over the projected FY 2004 Budget reductions by department (if override does not pass). Details were provided by department in pages 10-20 of the packet. Analysis Of Impact On Tax Levy Of Projected Major Real Estate Developments: Peter went over a chart (page 21 packet) detailing the projected revenue stream of the Following: Landfill Land Sale, Landfill Phase 1, Landfill Phase 2, Archstone (Spence Farm) Moore (Longwood Farm) Phase 1, Moore (Longwood Farm) Phase 2, Pearson Development. The chart outlines "New Growth" and the amount to be available for Capital. Jim Francis asked what the additional costs to services would be. Peter said DPW would be minimal, as the roads are private. Jim Francis stated that condo trash should be put back on the docket. It should be put to the Selectmen's attention. Budget Schedule: Peter went over the rest of the budget schedule. Regional School Districts: Page 33 of the packet is a memo outlining the Appropriations for FY04 Regional School District Assessments. 8:10 P.M.: School Committee arrives: Committee: Pete Dahl, Carl McFadden, John Russo, Tim Twoomey, Bill Griset. Administration: Dr. Harutunian, Dennis Richards. School Committee candidates: Linda Phillips, John Carpenter Citizen: Bill Brown Harry started the meeting by informing the Finance Committee on savings obtained with energy costs. The amount saved was $116,670. He provided a memo from Domenic Cacciapuoti. The savings were achieved by locking in natural gas prices for a 2-year period. Bob LeLacheur asked if there were any regional efforts towards bidding. Bill Griset said that other towns were not interested last year. There was nothing to be gained. Harry commented on Monday nights meeting with Reading's state reps and how productive and informative it was. He stated the Gov. Budget is the floor and most likely would be the best. He feels the budget will be delivered close to July lst Harry mentioned that they would start meeting with architects for the high school next Monday night the 17th. Harry stated that they will have their proposal to SBA by 6/1/ even thought they had been given an additional 30 days. Harry went over additional costs for FY 2004 budget to keep level services. He went over regular day, special education and building maintenance. He also went over additional fees including all day kindergarten, which would generate tuition of $250,000. Bob LeLacheur asked if the revenue target was real. Was there any contingency plan? Harry stated that there is already 96 applicants of which 10-15 are dual enrolled with REAP or "Y". There will be lottery slots on April 8th Chuck Robinson asked what controls were in place for collecting tuition and who is going to collect. Harry stated that all of those details have not been worked out yet. Chuck stated that it needs to be addressed as we have had problems with these types of issues in the past. Jim Francis asked if there were any SPED revenue enhancements? Harry said they were already built into the budget. He said SPED was at the minimum legal requirement. Harry said the budget presented (with an override) is a level service budget. Chuck Robinson asked if the Admin salaries contemplated a "new" superintendent. Harry said no. Pete Dahl said it would be the mid-point in the middlesex communities 120-135K. Harry noted that our substitute pay is much lower than other towns and the firm we use has a 100% fill rate. Bob LeLacheur asked Harry to evaluate a sub v. a full time teacher. Harry said it's a better education for who come to school with a teacher there v. a sub or nothing. Jim Francis asked why SPED goes up when other things are cut. Harry said state mandates. These would be hurt most by the cuts. These children need to be protected. Bob LeLacheur asked where we were v. other towns. Harry said about the same. Chuck Robinson asked why tuition was down. Harry said towns are keeping the kids. Dick McDonald asked if the SPED Director was looking to take outplacements back. Harry said there is no more rooms. Bob LeLacheur asked if towns have gotten together to make SPED more efficient. Harry said yes the collaborative. Harry said fund the circuit breaker and we are all set. Harry said he would go over the cuts (if no override) at our next meeting. Cathy Martin asked when the school committee is going vote the cuts. Pete Dahl said at the March 20th meeting. Liaison Reports Dick McDonald said the Audit Committee has chosen Melanson and Heath to be the new audit firm. There were two bids. Andrew Grimes stated that Reading Pride (override committee) has kicked off and they are looking for support and volunteers. Bob LeLacheur stated that Stormwater has three more meeting, but they have not reached the significant financial discussions yet. Adjourn: 10:45 Jim Francis made a motion to adjourn. Seconded by Andrew Grimes. Motion passed 9-0.