HomeMy WebLinkAbout2002-08-07 Finance Committee MinutesFiCCEIVED
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CLERK
Finance Committee Meeting G, MASS.
August 7, 2002
1003 JUL i p p I. S b
The meeting convened at 7:3.0 p.m. in the Arnold Berger Room, 16 Lowell Street,
Reading, Massachusetts. Present were the following: Chairman Catherine Martin, Vice
Chairman Richard McDonald, Finance Committee Members James Francis, Charles
Robinson, Robert LeLacheur, Randy Mason, Mary Grimmer and Andrew Grimes. Also
present were Siobhan Ford from the Chronicle, Pete Dahl from the School Committee,
Finance Director Beth Klepeis, Ralph Colorusso and Thomas Ryan from the Board of
Assessors and Town Manager Peter Hechenbleikner.
Reports and Comments
Finance Committee Liaison Reports - Jim Francis noted that the Ad Hoc RMLD
Governance Advisory Committee met for their first time on Monday. Among other
things, they will be developing a questionnaire to get information about the 40 plus or
minus other Municipal Light Departments in the State.Andrew Grimes noted that the
School Building Committee is meeting every other Wednesday, and an architectural
timeline has been developed which will have preliminary concepts available fairly early
in the Fall. The architects will be developing different options with different price tags.
The School Building Committee will decide on the best course of action. They held a
joint meeting with the School Committee last week to get an update on the process, and
for the School Committee to give input. They will be meeting on August 21St with the
Board of Selectmen, and Town staff will be developing their input in meeting with the
School Building Committee soon after that.
Jim Francis asked about the status of the Dividence Road for the school project. Pete
Dahl noted that it is still on appeal. The Town Manager noted that the Barrows School
required approximately $35,000 for boiler repair which would not have been needed if
that building project had been allowed to proceed.
Discussion/Action Items
Approval of Reserve Fund Transfer - The Finance Committee considered the Reserve
Fund Transfer in the amount of $1,000 for appraisals for tax appeals. On motion by
Francis seconded by McDonald, the Finance Committee approved the transfer of $1,000
to the Assessor's expense budget by a vote of 8-0-0.
Update on State Budget and its Imbact on Reading FY 2003 Revenues - The Town
Manager gave an update on the FY 2003 Budget resulting from approval of the State
Budget. The Budget as approved by Town Meeting has a shortfall of approximately
$53,000. $30,000 of that shortfall was the increase cost of Property and Casualty
Insurance when the Budget was adopted. The Town is going to be looking at whether or
not revenues generated this year can be utilized to increase the revenue estimates for next
year.
Finance Committee Meeting - August 7, 2002 - Page 2
The Town Manager did note that the Finance Director feels that the interest income is
overstated by approximately $150,000 for FY 2003. Therefore, we will be looking for
approximately $200,000 in additional revenue or additional reductions in expenses.
The Town Manager reviewed the year end closeout and noted that the numbers are still
preliminary. It appears that we have closed out over $600,000 in revenues greater than
anticipated, and over $300,000 in unexpended budgets for a total of a little bit over
$1,000,000. Additionally, we have about $160,000 in unused free cash from FY 2002.
At the next Finance Committee Meeting, we will have a plan of action to address the
shortfall.
The Town Manager also noted that some of the State Budget cuts affect Town
Departments even though the moneys are not available to the Town for the general
budget. This includes a number of school areas and specifically for the Town, it includes
elimination of the smoking cessation program, reductions in the DARE Program, the
SAFE Program and Library aid. On the plus side, there is approximately $6,000 that can
be reduced from the Vocational School District budget because they have now adopted
their final budget.
Staff Changes - Town of Reading - The Town Manager reviewed the staff changes that
are taking place. During the past month, seven positions have become vacant including
the Assistant Library Director, Town Planner and Network Technician. The Town
Manager indicated his intent to move forward to fill the positions. and the Finance
Committee consented.
FY 2004 Budget Process - The Finance Committee began to discuss the FY 2004 Budget
process. The Town Manager suggested that two of the issues raised need further
discussion when the Town Accountant and Superintendent can be present. These include
providing an additional column of actual budget (for FY 2001 in the FY 2003 Budget),
and putting more detailed information particularly on salaries. The Finance Committee
agreed to have a working session with all involved staff at a later date.
There was discussion about wanting information on specific salaries such as the
Superintendent's salary (right now, it is humped in with at least one other administrative
salary), providing information on legal services, etc. It was also suggested that some
summary reports would be helpful for example, for the Town Departments, a summary
report on wages, benefits (if you could break these out), vehicle fuel and professional
development. This will also be part of the working session discussion.
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Finance Committee Meeting - August 7, 2002 - Page 3
As part of that working session, the Town Accountant can bring in some of the forms
used to develop the School Department Budget. The Town Manager noted that the base
information for the Town Budgets is exactly what the Finance Committee and Town
Meeting get for the Town Budgets.
The Finance Committee agreed to meet on Thursday, September 5th, for their next
meeting, and Catherine Martin will have a discussion with the other Chairs about a
Financial Forum Meeting.
The Finance Committee discussed the issue of informing citizens of the community about
the Town's financial issues. Ideas were a "Selectmen's Newsletter," a series of coffees to
provide one on one information to the community, additional information in the
newspaper, on cable TV, on the web page, flyers, utility bills, etc. Further discussion will
also take place on this item on September 5tn
PUment of Bill - KPMG - KPMG's first progress payment is due when they start work.
The bill in the amount of $14,750 was presented to the Finance Committee.
On motion by Francis seconded by Robinson, the Finance Committee approved the first
progress payment for KPMG's audit in the amount of $14,750 by a vote of 8-0-0. The
Town Manager noted that we would be out to bid for auditing services for the next fiscal
year, and that KPMG probably would not bid.
Approval of Minutes
On motion by McDonald seconded by Mason, the minutes of June 26, 2002 were
approved as submitted by a vote of 8-0-0.
On motion by McDonald seconded by Francis, the Finance Committee voted to adjourn
their meeting of August 7, 2002 at 9:15 p.m. by a vote of 8-0-0.
Respectfully submitted,
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