HomeMy WebLinkAbout2003-01-29 Finance Committee MinutesRECEIVED
Financial Committee Meeting TOWN CLERK
January 29, 2003 IM F A D I ICI G . MASS.
The meeting convened at 7:30 p.m. in the Conference Room, at Town Hall149 A&dii P 2: 5b
Street, Reading Massachusetts.. Present were Finance Committee members Catherine
Martin, Richard McDonald, Karen Epstein, Andrew Grimes, Robert LeLacheur, James
Francis, Chuck Robinson and Town Manager Peter Hechenbleikner.
Fred Van Magness presented his report on the RMLD. He is one of five people advising
the RMLD. He reviewed their FY2003 capital plan totaling $6.1 million and stated they
are working on capitalization guidelines. The total Operating Budget is approximately
$64.2 million. This includes a $44.3 million cost to purchase power. The Operating
Budget excluding the power is $15.8 million. He recommended the RMLD terminate all
non-RMLD street lighting contracts.
On a motion by James Francis, seconded by Richard McDonald, the Finance Committee
voted to approve the minutes of their December 17, 2002 meeting, as amended.
The motion was approved by a vote of 7-0-0.
On a motion by Richard McDonald, seconded by James Francis, the Finance Committee
voted to approve the minutes of their December 23, 2002 meeting, as amended.
The motion was approved by a vote of 7-0-0.
Liaison Reports:
Robert LeLacheur stated the State is trying to create a uniform storm water system. They
are in the process of surveying the various towns to see what they are doing. He does not
expect to hear from the State for at least a year.
James Francis stated Dan Ensminger presented his recommendations to the Selectmen on
the Ad hoc committee of the RMLD.
Richard McDonald stated the Superintendent presented his budget reduction
recommendations to the School Committee for next year. They are also discussing
reductions for this year including the $485,000 "hold baclc" for the principals.
Status report on the Landfill Sale:
Peter Hechenbleikner stated the Board of Selectmen signed all of the documentation on
January 28, 2003. The closing has not taken place, but he expects it will be soon.
Status Report on FY 2003 Budget:
Peter Hechenbleikner stated there is a $500,000 shortfall in the FY 2003 budget due to
the State's anticipated $500,000 reduction in state aid. He listed the following reserves to
address the revenue shortfall:
Free Cash
$250,000
Reserve Fund
100,000
Worker's Comp Trust Fund
80,000
Total
$430,000
The Town's shortfall is $405,904 and the School's shortfall is $485,400. There is an
estimated Snow and Ice shortfall of $275,000.
Peter Hechenbleikner reviewed a list of FY 2003 budget reductions. Some of the
reductions listed were in the Fire Department The Fire Department's reductions will
impact their over time. They must have nine people on a shift or the ladder truck can not
be used. Then they will need to request help from other communities.
Peter Hechenbleikner stated they are renegotiating the rubbish contract and hope to save
$60,000.
Catherine Martin reviewed a letter from Dr. Harutunian, dated January 6, 2003, regarding
the School Department's budget shortfall. He anticipates a $485,000 shortfall. She stated
they would review this further at the Financial Forum on February 5, 2003.
Schedule:
Financial Forum February 5, 2003
FinCom Meeting February 12, 2003
FinCom Meeting February 26, 2003
March meeting on every Wednesday:
3/5/03
3/12/03
3/19/03
3/26/03
4/3/03
On a motion by James Francis, seconded by Karen Epstein, the Finance Committee voted
to adjourn at 10:35 p.m.
The motion was approved by a vote of 7-0-0.
pectfull ubmitted,
Secretary
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