HomeMy WebLinkAbout2002-03-21 Finance Committee Minutes1 !E0
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0""V CLERK
Finance Committee Meeting D I i',! G, PI A S S.
Financial Forum
March 21, 2002 2002 MAR 21 P 2: 4u
The meeting was convened at 7:30 p.m. in the Multi-Purpose Room, at Parker Middle School, 45
Temple Street, Reading, Massachusetts. Present were Chairman Richard McDonald, Vice
Chairman Catherine Martin, Jim Francis, Karen Epstein, Randy Mason, Andrew Grimes, Mary
Grimmer, Robert LeLacheur, Selectmen George Hines, Matthew Cummings, Richard Schubert,
Gail Wood, School Committee members Sue Cavicchi, Pete Dahl, Jim Keigley, John Russo and
Bill Griset, Town Manager Peter Hechenbleikner, Town Accountant Richard Foley,
Superintendent of Schools Harry Harutunian, Emerson Tucker, Bill Brown, Gerry MacDonald,
Tom Carmody, Linda Phillips, Jackie Mandell and Paula Schena. .
REAP Lease
Superintendent Harry Harutunian noted that the Town Appraiser investigated the cost to lease
space at the High School. He recommended increasing from $8.50 per square foot to $8.73 per
square foot. Bill Griset negotiated with REAP. REAP has approved the increase and the School
Committee has endorsed the increase of the lease. He has a letter from the principal of the High
School that states there is room for REAP.
A motion by Francis seconded by Martin to recommend Article 13 authorizing an annual lease of
space at the Reading Memorial High School to REAP was approved by a vote of 7-0-0.
Review of Revenue Forecast for FY2003
Town Accountant Richard Foley updated the committee on State Aid. He noted that additional
assistance will be reduced by $193,000 and we will lose $87,000 in Chapter 70 money.
Harry Harutunian noted that the class size reduction funds are being eliminated. We will lose
one teacher at the cost of approximately $30,000. The smoking cessation program has been cut,
so the Health Coordinator position has been cut.
Review of Expenses for FY2003
The Town Manager noted that the Finance Committee has reviewed all of the budgets. There is
one change in the Voke School amount that is a $9,000 increase.
The Town Manager noted that from. FY02 to FY03 there has been a net increase of 2.81 % in the
Town's budget. Richard Schubert noted that most of the increase is employee benefits. The
Town Manager noted that employee benefits has increased $695,000.
Emerson Tucker asked if the Town has gone out to bid for insurance and the Town Manager
noted that we went out to bid two years ago and only received one bid.
Updates
The Town Manager noted that the landfill closure is on target. The target date to pass papers is
July 1, 2002. This will trigger construction of Jordans, Home Depot and Chilis. There will be an
18 month construction time.
George Hines noted that when the revenue analysis was done on this project, the tax from the
hotel and office is what gave us the maximum return from this project and these being deferred
will have an impact on revenues.
The Town Manager noted that Spence Farm has been sold to Archstone. They are proposing
luxury apartments. All of the units will be rentals so the Town will get 100% affordable housing
credit.
The Town Manager noted that Longwood has been sold. The proposal is for 70 empty nester
cottages and 80 -90 condo's. We will not get 100% credit for affordable housing on this project.
The Town Manager noted that the Town should be spending $850,000 per year on roads. We
were getting $465,000 from Chapter 90 and that has been cut to $153,000 per year. There is a
debt exclusion question on the ballot to spend up to $750,000 per year on roads.
Richard McDonald asked the Board of Selectmen for an update on the RMLD situation. George
Hines noted that the Selectmen met with other Boards of Selectmen and they were receptive to
evaluating our request for RMLD paying for the audit.
Harry Harutunian updated the boards. He noted that there have been no changes since the last
meeting. He will be asking for a transfer for litigation at Town Meeting.
Jackie Mandell noted that she received a flyer in the mail and it states that modern technology is
virtually nonexistent at the High School. Harry Hatutunian noted that is true, it has been three
years since new computers have been bought.
Richard McDonald noted that the Finance Committee will be meeting on March 25 to vote on
the budget and review the Warrant Articles.
On motion by Francis seconded by Grimes the Finance Committee voted to adjourn at 8:50 p.m.
by a vote of 8-0-0.
submitted,