HomeMy WebLinkAbout2001-10-24 Finance Committee Minutesl Financial Committee Meeting
October 24, 2001 Fr E CE I V E 0
CLERK
ROIi~G. MASS.
The meeting convened at 7:30 p.m. in the Conference Room, at the Town Hall, 16
Lowell Street, Reading Massachusetts. Present were Finance Commit WnV e$s A 10: 13
Richard McDonald, Catherine Martin, James Francis, Randy Mason, Mary Grimmer,
Chuck Robinson, Karen Epstein, and Robert LeLacheur. School Committee members
present were Pete Dahl, William Griset, John Russo and Tim Twomey. Also present were
Town Manager Peter Hechenbleikner and Superintendent of Schools Dr. Harutunian.
FY2002 Budget Reductions
Based on the Governor's budget there is a $834,912 shortfall in the FY 2002 budget. The
Town has also incurred additional expenses bringing the total shortfall to $928,412. The
Town's share (1/3) of this reduction is $309,471. The School Department's share (2/3) of
this reduction is $618,941.
The additional expenses incurred included repairing the roof at the Joshua Eaton School
to replace the synthetic slate shingles that were falling off. There was in increase of 15%
in the property and casualty insurance. The third expense was the Town hall elevator.
Dr. Harutunian stated the school department was able to replace the $85,000 boiler at the
j Killiam School from the school budget. They are going out to bid October 30, 2001 for
the fuel. The SPED needed an addition $50,000 in July 2001. They had $100,000. The
additional money enabled them to add the nurse back on. Dr. Harutunian also stated the
State used a new formula to calculate the Chapter 70 money and Reading did not receive
what was anticipated.
Dr. Harutunian submitted a new FY 2002 school budget. The new budget includes the
$618,941 reductions. 80% of the budget is salaries. There is $3.2 million in SPED
expenses and $1.4 million for custodial/maintenance expenses. There is a total increase of
$1.8%. The increase is due to a larger school system and ever increasing state mandates.
They are building a budget for FY 2003 with zero increases.
Peter Hechenbleikner reviewed the Town's budget reductions of $309,471. The
reductions included $178,775 from Capital, $2,800 from Community Development, and
$11,825 from the Finance Department. The only variable is the state aid, because the
state hasn't completed their budget.
On a motion by Catherine Martin, seconded by James Francis, the Finance Committee
voted to approve Article 4 and the reduced FY 2002 budget, as presented.
The motion was approved by a vote of 7-0-1.
Finance Committee - October 24, 2001 page 2
Funding for the RIVLHS plans
Russ Graham spoke in support of the proposed Reading Memorial High School plans.
They requested the Finance Committee approve a debt exclusion of $500,000 for the
plans. They are seeking SBAB funding and do not have a plan that would meet the
educational needs of the high school. They need a professional architect to answer the
questions of the SBAB. The SBAB sent a letter, October 1, 2001, recognizing the need
for structural and programmatic improvements, but they have reservations on some of the
improvements. The plans are schematics that would take the construction to within 15%
of completion.
On a motion by James Francis, seconded by Mary Grimmer, the Finance Committee
voted to approve Article 7, Authorizing Funding for Reading Memorial High School
Plans.
The motion was approved by a vote of 8-0-0.
Community Preservation Act
Paul Dustin spoke in support of the acceptance of the Community Preservation Act. The
act would allow the town to tax itself up to 3%. This money would be distributed for
open space, historic resources and affordable housing. The State matches a percentage of
the money. The cost to the Reading taxpayers for $280,000 would be $24 per year. The
total income generated per year would be $193,000. The Town could only purchase 2
j properties in the past 25 years, due to lack of funds. The Town meeting would
appropriate the distribution between the three areas.
Thomas Ryan read a letter in opposition to the Community Preservation Act. He objected
to the surcharge - tax increase. He stated the property surcharge is not tax deductible.
On a motion by James Francis, seconded by Catherine Martin, the finance Committee
voted to accept Article 9 - Acceptance of the Community Preservation Act.
The motion was not approved by a vote of 2-5-1.
On a motion by Mary Grimmer, seconded by Charles Robinson, the Finance Committee
voted to accept Article 5 - Acceptance of Gifts.
The motion was approved by a vote of 8-0-0.
On a motion by James Francis, seconded by Catherine Martin, the Finance Committee
voted to accept Article 6 - Rescinding Debt Authorization for the Eaton Street Sewer.
The motion was approved by a vote of 8-0-0.
On a motion by Catherine Martin, seconded by Mary Grimmer, the Finance Committee
voted to accept Article 8 - Amending Fees Schedule.
The motion was approved by a vote of 8-0-0.
Finance Committee - October 24, 2001
page 3
On a motion by Robert LeLacheur, seconded by Charles Robinson, the Finance
Committee voted to accept Article 19 - Granting an Easement of Property at Killam
School to Verizon.
The motion was approved by a vote of 8-0-0.
On a motion by James Francis, seconded by Charles Robinson, the Finance Committee
voted to approve the Reserve Fund Transfer of $14,084 to account #01-021-5308,
KPMG, LLP.
The motion was approved by a vote of 8-0-0.
On a motion by Catherine Martin, seconded by Mary Grimmer, the Finance Committee
voted to appoint Richard McDonald to the Audit Committee, expiring June 30, 2004.
The motion was approved by a vote of 8-0-0.
On a motion by James Francis, seconded by Charles Robinson, the Finance Committee
voted to adjourn at 11:30 p.m.
The motion was approved by a vote of 8-0-0.
Respectfully submitted,
dvll-c~
Joy Mohr
Recording Secretary