HomeMy WebLinkAbout2000-01-06 Finance Committee Minutesu
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inance Committee Meeting GU,
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January 6, 2000 I't1ASca.
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The meeting convened at 7:30 p.m. in the Conference Room, 16 Lowell Street, Reading,
Massachusetts. Present were Chairman Carol Grimm, Vice Chairman Dick McDonald, FinCom
Members Robert LeLacheur, James Francis, Catherine Martin, Neil Cohen, Chuck Robinson.
Mary Grimmer came to the meeting late. Also in attendance were Town Manager Peter
Hechenbleikner, Assistant Town Manager Russell Dean and School Committee Chairman Peter
Dahl.
Approval of Minutes
There were no minutes to approve.
Liaison Reports
Audit Report - There was brief discussion on the Audit Report and Management Letter. It was
noted that the two comments were follow-up on the school building rental process, and a
"warning" that auditing and accounting costs would increase because of new regulations. The
Town is currently out to bid for auditors for a three year contract but it is likely we will only get
proposals for two years because of the new auditing requirements.
Action Items
Up-date - Reading Business Park - Assistant Town Manager Russell Dean reviewed the status
of the deal with Corporex, and noted that we have had strong interest from several other bidders
including the number two and number three bidders. We are meeting with Lincoln Properties
next week, and will work towards a conclusion as quickly as we can. The Town Manager also
noted that Addison-Wesley redevelopment is a possibility, and that there is a meeting on
Monday evening with the Planning Commission relative to redevelopment options.
Updated Revenue Projections - The Town Manager reviewed a package of material with a cover
memo dated January 5, 2000 following up on a number of items requested at previous FinCom
and/or Selectmen's meetings. The question was raised as to whether the Reading Ice Arena
Authority funding schedule beginning in 2002 is realistic, or whether it can be moved to 2001.
The Town Manager will review this.
Overview of Tentative FY2001 Municipal Budget - Assistant Town Manager Russell Dean
reviewed the FY 2001 Municipal Budget. He went through the assumptions that were made to
develop the municipal budgets including meeting contractual salary increases, implementing the
non-union Pay and Classification Plan, providing zero increases in expenses except where
contractual requirements were present. The total increase is 3.01%. We reviewed the capital and
debt service and employee benefits lines. The following information was requested by the
Finance Committee for when the budgets go through their full review:
1. An analysis of the enterprise expenses by department and by enterprise - as a
single chart.
Finance Committee Meeting - January 6, 2000 - Page 2
2: A list of positions where there is an additional grade increase because of the
pay and classification study.
3. An analysis of the traffic control budget in the Police Department, the holiday
pay and a general review of the salary budget.
4. The status of the Engineering salary budget and increases.
5. What has the level of turnover been in Town employment over the past couple
of years.
6. An analysis of crime rates in Reading compared to other communities in our area.
7. A single copy of the Staffing and Deployment Study to be circulated among the
newest members of the Finance Committee.
8. Some information on fire run statistics and their purpose.
9. Does the Fire Department require carbon monoxide detectors on all homes that are
transferred.
10. The debt service numbers don't balance between the Capital Improvements Program
( and the proposed budget.
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11. The commentary on the health insurance needs to be revised - it talks about a 10%
increase.
12. Schedule for FY 2001 budget The following dates were noted:
School budget hearing -1/18/00
Board of Selectmen review and vote of municipal budget -1/18/00
Financial Forum -1/19/00
Follow-up on Financial forum and decision on Prop 21/Z override -1/20/00 ?
Town Meeting Election Warrant closes - 2/1/00
Finance Committee review sessions - 2/2/00, 2/9/00, 2/16/00, 2/23/00
The review sessions will be as follows: One session for the School budget; one session for
Public Safety; one session for Public Works and one session for all other departments and
budgets.
It was suggested that a date for an additional Financial Forum should be included.
There was discussion as to whether or not we should be developing a FY 2001 budget assuming
the override does not pass. The Town Manager strongly recommended developing a detailed
budget but noted that, of course, we would need to talk about what kinds of changes would be
made based on the reductions that would be required.
Finance Committee Meeting - January 6, 2000 - Page 3
r On motion by Francis seconded by Martin, the Finance Committee adjourned their meeting of
January 6, 2000 at 9:45 p.m. by a vote of 8-0-0.
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