HomeMy WebLinkAbout2003-02-05 Finance Committee MinutesJoint Meeting of Finance Committee, E C E I d E D
Board of Selectmen and School Committee TOWN CLERK
February 5, 2003 i'tEADING, MASS.
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The meeting convened at 7:35 p.m. in the Community Room at Parker Middle School, 45
Temple Street, Reading, Massachusetts. Present from the Finance Committee were Chairman
Catherine Martin, Members Richard McDonald, Karen Epstein, Harold Torman, Randy Mason,
Chuck Robinson, Robert LeLacheur and.Andrew Grimes. From the School Committee were
Chairman Bill Grisset, Members Tim Twomey, John Russo, Susan Cavicchi, Pete Dahl and Carl
McFadden. From the Board of Selectmen were Chairman Camille Anthony, Vice Chairman
Matthew Cummings, Selectmen Richard Schubert, George Hines and Gail Wood. Also present
were Town Manager Peter Hechenbleikner, Superintendent of Schools Harry Harutunian, Town
Accountant Richard Foley, Town Treasurer Beth Klepeis, Paula Schena and the following list of
interested parties: Holly Baczek, Bonnie Face, Elaine Sharkey, Linda Phillips, Tom Clark,
Elaine Webb, Jackie Mandell, Sandy Michaud, David Lee.
Discussion/Action Items
Review Overall Financial Condition - Town Accountant Richard Foley reviewed how free cash
is generated. He noted that when actual revenues are in excess of budgeted revenues that
generates free cash. He also noted that not spending all appropriations adds to free cash, and
that the lottery distribution and additional assistance has also been cut.
( I Town Treasurer Beth Klepeis noted that the Town's bond rating has dropped. This will have an
affect on future debt sale. When the bond rating drops, then we will get fewer bidders and
probably end up paying more.
Review Status of FY 2003 Budget - Finance Committee Chairman Catherine Martin reviewed
the fourth scenario for balancing the FY03 budget. She noted the total cuts and transfers total
$1,163,110. The Selectmen have approved cuts in the amount of $302,525. There are 40%
principal holdbacks, internal reductions in benefits of $66,000, renegotiated the rubbish for
$60,000 diversion until FY'05. There will be a reserve fund transfer of $110,000 for workers
comp which will leave a balance of $100,000 in the reserve fund and $183,585 in free cash.
The Town Manager noted that the Town Accountant suggest using $200,000 from free cash and
reduce the reserves by the difference.
Board of Selectman Vice Chairman Matthew Cummings noted that the School Committee
indicated on Monday night that they will be requesting $285,000 from the reserve fund.
Superintendent of Schools Harry Harutunian noted that won't be needed because he has frozen
the entire School Department budget. He can make up $45,000 and get the rest from
maintenance.
Vice Chairman Matthew Cummings asked if there is a list of cuts because we need to explain to
the community what is not being provided. School Committee Member Pete Dahl noted that
Joint Meeting of Finance Committee, Board of Selectmen and School Committee - February 5,
2003. - Page 2
services are being provided and they are just moving the flmding around. Vice Chairman
Matthew Cummings noted that if they need $200,000, then something's not being done.
Harry Harutunian noted that his Secretary keeps a list. He is concerned about fuel costs. He is
looking at hiring at a lower level and not filling positions right away.
Finance Committee Member Chuck Robinson asked about the rubbish negotiations. The Town
Manager noted that we signed an additional three-year contract, and they will let us defer
$60,000 of FY'03 and $60,000 of FY'04 payments until FY'05 and FY'06.
A motion by McDonald seconded by LeLacheur to present to the Town the fourth scenario
as presented with the adjustments suggested by the Town Accountant of $200,000 in free
cash and $83,585 in the reserve fund was approved by a vote of 8-0-0.
Review Revenue Forecast for FY 2004 - Finance Committee Member Robert LeLacheur noted
that the Town is bearing most of the cuts in FY'03 and that will have to be balanced in the FY'04
Budget.
The Town Manager reviewed the Governor's municipal relief package that offers little or no
relief to the Town of Reading. He noted that we are looking at a problem of $4,922,000 for
FY'04. The Town share would be $1,640,667 and the School's share would be $3,281,333.
School Committee Member Carl McFadden suggested asking the RMLD to prepay their revenue
to the Town. Vice Chairman Matthew Cummings noted that probably wouldn't happen because
the CAB would have to advise and that won't happen.
Harry Harutunian asked for the deadline for putting an override question on the ballot. The
Town Manager noted that the Warrant closes on March 4, 2003.
Chairman Camille Anthony suggested that the Selectmen meet on Saturday morning to discuss
the FY'04 Budget.
A motion by Robinson seconded by LeLacheur to adjourn the meeting of February 5, 2003
at 9:10 p.m. was approved by a vote of 8-0-0.
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