HomeMy WebLinkAbout1993-12-15 Finance Committee MinutesJoint Meeting Board of Selectmen, School Committee, Finance Committee
December 15, 1993
The meeting was convened at 7:04 P.M. in the large meeting-room, Reading Public Library.
Present were the following: from the Board of Selectmen - Chairman George Hines, Vice
Chairman Eugene Nigro, Secretary Sally Hoyt, Selectmen Dan Ensminger and Bill Burditt; from
the School Committee - Chairman Robin D'Antona, School Committee members Tim Twomey,
Thomas Stohlman, Matt Cummings; from the Finance Committee - Chairman Richard. Coco,
Vice Chairman Fred VanMagness, Committee members Nate White, Jim Keigley, and Gerry
MacDonald; from staff - Finance Director Elizabeth Klepeis, Town Accountant Richard Foley,
Assistant Superintendent of Schools Dennis Richards, Town Manager Peter Hechenbleikner.
Superintendent Robert Munnelly came late. Ken Maguire represented the press.
Chairman George Hines reviewed the purpose of the meeting which was to bring everybody up
to date on where we are and to get any questions, comments or suggestions from the
collective body as to the process.
Town Manager Peter Hechenbleikner reviewed the FY95 revenue projections. Goals are to
maintain conservative but realistic revenue estimates; to plan on retaining a significant level of
unused taxing capacity for FY96 and beyond - $500,000; to develop a long-term five-year
budget past FY96; and to establish that this revenue projection is a guide at this point and may
be modified as the budget process continues.
Town Accountant Richard. Foley reviewed the early retirement incentive program for teachers
and administrators. He noted that the analysis shows that the program is relatively financially
neutral and therefore whether or not to proceed with the early retirement incentive program is a
matter of educational policy not financial policy. He noted that all costs or savings would be
part of the School Department budget, and that a five-year amortization of the costs of the
early retirement incentive are strongly recommended.
Town Manager Peter Hechenbleikner reviewed the budget guidelines. He noted that the
guidelines provide for increases and/or decreases in shared budget items including employee
benefits, debt service, capital programs, rubbish collection and disposal, vocational school
expenses, state and county assessments, legal expenses, property and casualty insurance,
street lighting etc. He noted then that the School Department and the Town would travel
parallel courses. The School Department would: 1) understand the foundation budget per
school reform; 2) develop a budget that comes within the foundation budget or which keeps
the status quo in the Department including salary increases whichever is greater; 3) develop a
list of prioritized and fully costed additions to the budget over and above the base budget.
The Town will: 1) develop a foundation budget which will provide the same services as FY94
including salary increases but not including new programs; 2) develop a list of prioritized and
fully costed additions to the budget over and above the foundation budget.
The Town Manager then proposed that the fully costed additional programs for School and
Municipal Departments be co-mingled on a priority basis through a consensus process in the
Budget Committee. The Budget Committee members will report back to the members of their
constituent bodies. The priority setting in this manner is advisory to the Town Manager who is
responsible under the Charter for the development and presentation of the budget.
Joint Meeting Minutes - December 15, 1993 - page 2
The Town Manager then reviewed the time table. The Town Manager's budget reviews with
Departments will be completed by 1/7/94. The capital budget will be transmitted to the Board
of selectmen, School Committee, Finance Committee, and RMLD Board for review and
comment by 1/31/94; FinCom will be meeting on 1/12/94 and will hope to review draft priorities
for the School and Town; the Town Manager will be reviewing the budget with the Board of
Selectmen from 1/4/94 through 1/31/94 and establish Town priorities. The School Department
budget and priority programs will go to the Town Manager on 1/19/94.
The establishment of the full budget including priorities with Budget Committee input and
feedback will be ongoing. The full budget will go to the Finance Comm;ttee on 2/16/94
although it is the intent that FinCom be briefed throughout the process and, to the extent
practical, early drafts and early action items may be submitted to them.
It was suggested by several parties that the Town and School Department take a hard look at
a consolidated building maintenance program. The School Committee indicated that they are
willing to explore this and other efficiencies. George Hines for the Board of Selectmen
expressed an interest in doing the same. Dan Ensminger noted that this budget does not
include any effective health reform.
The question was raised as to what FinCom felt would be appropriate for free cash levels. The
Town Manager noted that their previously adopted policy indicates that 5% of the budget
should be in "reserves" which includes the reserve fund, sale of real estate, stabilization fund,
I and free cash. For FY95 that means a goal of $1,666,000. The level of free cash currently is
$780,000, and it is anticipated that the budget would not use free cash.
The foundation enrollment in figuring the minimum state aid required from school reform was
discussed. It was noted that this is a weighted enrollment and does not include METCO
students and also does not include kindergarten students as "full time equivalent students."
The fiscal year 1994 factor for foundation enrollment is $50 per student, so that any
inaccuracies are not going to reflect greatly on state aid.d
On motion by VanMagness seconded by MacDonald the FinCom voted to adjourn at 8:30 p.m.
by vote of 5-0-0.
On motion by Burditt seconded by Nigro the Board of Selectmen voted to adjourn at 8:30 p.m.
by vote of 5-0-0.
On ti on by Cummings
8: pm. by . vote of "
es Vubmi Re:
ecreta ry
seconded by Stohlman the School Committee voted to adjourn at