HomeMy WebLinkAbout2002-01-02 Finance Committee Minutes,r_t;~IVkD.
101;; fw CLERK(
Finance Committee Meeting., ; n WIG, MASS-
January 2, 2002
1 %21, The meeting convened at 7:30 p.m. in the Conference RoonJOW ~IU oLwn 116 Lowell Street,
Reading, Massachusetts. Present were Chairman Richard McDonald, Vice Chairman Catherine
Martin, FinCom members James Francis, Andrew Grimes, Chuck Robinson, Robert LeLacheur
and Randy Mason. Also present was Town Manager Peter Hechenbleikner.
The Town Manager presented a reserve fund transfer in the amount of $40,000 to provide for a
forensic audit for the Reading Municipal Light Department relative to travel, expenses, credit
card use, and petty cash. The Town Manager noted that it has been difficult to contact all parties
because of the holidays. He anticipates we will be able to work something out with the Light
Department and Town Counsel so that the Light Department can pay for the cost of the forensic
audit to the Town. However, the concern was not to have the Light Department be the contract
authority since they are the ones being audited.
On motion by Francis seconded by Martin the Finance Committee voted to approve a reserve
fund transfer in the amount of $40,000 to account 01-011-5780 contingent upon the Light
Department not making payment to the Town prior to the first bill being due. The motion was
approved by a vote of 7-0-0.
The Town Manager reviewed the status of the Task Force's work with regard to the Light
Department. Melanson Heath and Company has been selected as the auditor. They have
submitted a draft scope. Task Force members James Francis and Richard McDonald will review
the material and ask the Town Manager to makes copies of material that the Finance Committee
would find helpful at this time. The Town Manager will send copies of the Task Force minutes
to the Finance Committee, along with the results of the Finance Committee's discussion on
micro/macro issues, a list of earnings for Light Department employees for 1998, 1999 and 2000
based on W2's and audited financials when they are available.
The Finance Committee discussed the broader scope of work on the RMLD, and talked about
having somebody begin the process by talking to them about the interrelationship between
municipal light departments in Massachusetts and their towns. As a first effort, we should try to
get somebody who is familiar with the same type of relationship (i.e. elected board for the Light
Department) as we have in Reading. FinCom members expressed interest in also learning about
some of the other optional interrelationships. The Town Manager will try to set up the first
session for some type in late January.
The Finance Committee discussed the general budget process.
On motion by Grimes seconded by Francis the Finance Committee voted to adjourn at 8:40 p.m.
by a vote of 7-0-0.
Respectfully submitted,
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