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HomeMy WebLinkAbout2003-02-26 Finance Committee MinutesL.✓ ,;--f,EiVED Reading Finance Committee/ Financial Forum C 01~J t'4 CLERK( Minutes of February 26, 2003 MASS. an I'm 13 P 4*- 41 The meeting was called to order by FinCom Chair Cathy Martin at 7:35 p.m. in the Community Room at Parker Middle School, Reading Massachusetts. Present were Vice Chair Dick McDonald and Finance Committee members Chuck Robinson, Jim Francis, Karen Epstein, Andrew Grimes and Hal Torman. School Committee Chair Bill Griset called the School Committee to order. School Committee members present were Sue Cavicchi, Pete Dahl, Tim Twomey, Carl McFadden, and John Russo. Board of Selectmen Chair Camille Anthony called the Board of Selectmen to order. Selectmen present were Matt Cummings, Rick Schubert and Gail Wood. Others present at the Financial Forum included Town Manager Peter Hechenbleikner, Treasurer Beth Klepeis, Town Accountant Richard Foley, Police Chief Robert Silva, Fire Chief Greg Burns, Library Director Kimberly Lynn, and Superintendent of Schools Dr. Harry Harutunian. Town Manager Peter Hechenbleikner began the meeting with the state of the 2004 budget that featured a shortfall of $1,654,000 based on the current governor's budget. Dr. Harutunian reported that the new budget requires about $2.5 million in reductions, not $3.6 million as they had anticipated. Dr. Harutunian went on to say that he had spoken to state officials, and according to them the governor's budget has "no inside money" and that there is new language in the governor's budget asking the legislature for unilateral control of the SBAB list. Dr. Harutunian added that he did not think that this would fly with the legislature. Peter Hechenbleikner then identified cuts to the budget, and that the finished budget should be available to FinCom once the Selectmen have reviewed it, which should be Feb. 28. The next topic of discussion concerned the various options for a Proposition 2'/2 override. The town manager went through the various options, which included (but are not limited to): single question, a menu approach, multiple departmental purposes with allocation, single departmental budget, a menu approach, and a pyramid approach. Another option would be an underride, in which the levy limit is actually lowered. A summary description of each was handed out to all attendees. Beth Klepeis stated that for every $1 million in an override, the average home in Reading would be taxed an additional $125 annually. Peter H. explained that if the language in an override breaks down the allocation by usage, that language is only binding for the first year. After the first year, the money can be allocated any way the Town sees fit. There was additional discussion from the boards about the pyramid override approach, where the voters are given several override amounts to choose from. Peter H. explained that with a pyramid approach, the highest dollar amount with a majority vote is accepted. There was also discussion about a multiple pyramid approach, where different departments are mentioned on the ballot with different funding levels. Again the allocation would only hold for the first fiscal year then could be re-allocated thereafter. At 8:10 p.m., the boards broke into two groups (Selectmen & School Committee with FinCom divided between the two) to discuss override options. The meeting reconvened at 8:30 p.m. as a single body to discuss the results of the breakout session. Camille Anthony suggested removing the pyramid approach, the capital exclusion, the pre-proposition 2 Y2 override, and the underride as viable options. Rob Spadafora of spoke on behalf of P.E.P., stating that P.E.P. supports the general override approach and would volunteer to help with a campaign if that were the option chosen by the Board of Selectmen. Bill Brown stated that he supports a debt or capital exclusion, but not a general override because of fears about having to cap the landfill. He also would not support a menu approach, as it could be reallocated after the first year. Mike Slezak urged the Boards to move forward with a general override as long as they also educate the residents about the realignment of savings from the State. His point was that it is finally time for residents to pay back the savings they have enjoyed from the recent tax reductions. Selectman Gail Wood asked Bill Brown about the present shortfall, and how would a debt exclusion be effective, as this would not cover the entire shortfall. Bill Brown responded that a combination of a debt exclusion and a small general override on the same ballot might be a solution. At 8:40 the boards broke out into five small mixed groups to come to some consensus on the approach to an override. At 9:00 the meeting reconvened with discussion from each of the five groups. The results were as follows: Group 1: Andrew Grimes reported that his group supports a general override for $2.4 million. Group 2: Rick Schubert reported that his group agreed to keep the override simple (general override, one question) and make it an amount that solves the problem for more than one year. Group 3: Peter Hechenbleikner reported that his group preferred a single override with a debt exclusion, and that he would talk to the MA Dept. of Revenue about the option of having a general override with a description "to preserve existing services". This group also felt that the override amount should be enough to cover the shortfall without requiring additional cutting. Group 4: Carl McFadden reported that his group supports the idea of 2 ballot questions: a general override for $1.8 million and a debt exclusion for $1.8 million. Group 5: Dr. Harutunian reported that his group supports a general override that lists the affected departments, but without amounts attached to each. A discussion continued regarding the upcoming schedule: March 5: Warrant closes for April election Feb. 27: Selectmen meet and discuss (and hopefully vote) 2004 budget March 1: Selectmen could meet to finalize vote on budget March 3: Special Town Meeting At 9:15 p.m., the Boards broke out into the original two groups to finalize a consensus on override options. The meeting reconvened at 9:45 with the results of the breakout session. Bill Griset stated that the School Committee voted 5-1 for a general override that would give $3.1 million for schools. This number did not include the Town side. Camille Anthony stated that the Selectmen did not take a vote, but they did have a discussion on the community's ability to afford the tax increase and the psychological implications of the various options. Dick McDonald noted that would be a psychological impact of an override if the dollar amount were greater than $4 million. Gail Wood added that if the School Committee wants $3.1 million, then that would place the entire amount of the increase at about $5 million and that would be difficult for voters to accept. Peter H. stated that the number that is needed for the 2004 budget is $4,254,000 ($1 million town side, $3.254 million school side). On a motion by Francis, seconded by McDonald, the FinCom voted to adjourn at 10:15 PM. The motion was approved by a vote of 7-0-0. Respectfully submitted, , ret i"~"