HomeMy WebLinkAbout1993-12-01 Finance Committee MinutesFinance Committee Meeting
December 1, 1993
The meeting convened at 7:30 p.m. in the conference room at 16
Lowell Street, Reading,: MA... Present were Chairman Richard Coco;
Vice Chairman Fred Van Magness; FinCom members Jim Keigley,
Steve Blewitt, Nate White, Liz Greene, Bill Murphy; Town Manager
Peter Hechenbleikner; Superintendent of Schools Dr. Munnelly;
School Committee Members Matt Cummings, Tom Stohlman, George
Shannon. Also-in attendance Richard Foley, Beth Klepeis, and
from the Chronicle Maria Silvaggi.
On motion by Steve Blewitt seconded by Jim Keigley the committtee
voted to approve the November 3, 1993 Minutes. The motion was
approved with a vote of 5-0-1 with Fred Van Magness abstaining.
Mrs. Carol Quinn was appointed to the Finance Committee and will
begin as soon as she is she is sworn in. She has-a.banking background
and is currently teaching' at Northeastern University.
Richard Coco stated that he felt that someone from FinCom should
automatically be invited to attend the power of town by-law meetings.
There will be a joint meeting with the Board of Selectmen, School
Committee and FinCom at the Library Meeting Room on December
15, 1993. On December 7, 1993 the RMLD, Board of Selectmen and
FinCom will meet at Killam School at 7:30 p..m.
Richard Foley and Beth Klepeis stated that we are moving in the
right direction as far as the unfunded pension fund goes. The
towns obligation is to be 100% fully funded by the year 2028.
The law states we have to do the cost of benefits until the year
1997, then it is up to the town how it should be funded. if
we use cost of benefits it could increase contributions 10.
Percent of payroll we would be using 4.5%. Beth Klepeis stated
that increasing 1% seems to be the best approach which works
out to be about 5.10 of payroll.
In December the town will decide whether-or not to stay with
PRIT. The target has not been met, we are at 9.2% and the target
was 12%. Richard Coco stated to maybe divide the amount leaving
half with PRIT and invest the remaining amount elsewhere.
Dr. Munnelly and the School Committee attended this meeting for
the purpose of discussing the school budget. They invited FinCom
to attend their budget meetings to better understand the numbers
for the budget meetings to come.
Each principal reports every service person, staffing and programs,
number of pupils and teachers to justify every expense which
all begins.at a -0- base.
Things are needed to be done, and the School Committee needs
to make choices. For example; building projects as opposed to
additional teachers or making investments in keeping necessities
up to'date.
Finance Committee Meeting
December 1, 1993
Page #2
The town school related expenses are adequate according to the
Education Reform Act, but Dr. Munnelly stated that even with
the overide and Education Reform money it still won't meet their
needs.
Right now the target number required net school spending is
$18,1.91,144.
Fred Van Magness asked for a copy of the agenda to have prior
to the meetings. Everything will be made available to FinCom
as well as the School Committee.
The FY95 budget is projected to increase 1 million dollars.
$500,000 will be reserved for the following fiscal year.
"Now that there is a Budget Committee, what is our role?" asked
Fred Van Magness. That question began a debate on whether the
FinCom had lost its power with the budget. The Town Manager
established the committee for the purpose of obtaining information
in many areas to present a better budget package.
Jim Kei.gley stated he felt that FinCom may be becoming a rubber
stamp committee.
- Steve Blewitt questioned the decision made to keep $500,000 in
unspent money when $1.4 million was available, without even discussiing
it with FinCom.
Both Liz Greene and Maria Silvaggi stated that FinCom's role
is to advise on the budget, not develop it, with the town's best
interest at hand.
The members of the committee stated that they did not mean to
offend the Town Manager, they just felt that-their mole as a committee
was changing.
Nate White stated that the document was the responsibility of
the Town Manager and our job is to advise on it.
On motion by Fred Van Magness seconded by Steve Blewitt the committee
voted to approve $12,340.00 to be payable to Peat Marwick for
audit purposes. The motion was approved with a vote of 7-0-0.
The Finance Committee will meet on January 12, 1994 at 7:30 p.m.
The meeting adjorned at 10:25 p.m.
Respectfully submitted,
Lisa Z ni
Secretary
Firanc~ Committee Appointment Committee
I i}r, Gl_f~~;t1
P l: December 1, 1993
The mee :ngi coreredUgat 6:30 p.m. in the Conference Room, 16
Lowell Street, Reading, MA. Present were Town Moderator Paul
Dustin, Chairman of the Committee; Selectmen Chairman George
Hines; Finance'Committee Chairman Richard Coco.
Also present were Selectmen Bill Burditt and Dan Ensminger, Town
Manager Peter I. Hechenbleikner, and FinCom candidates Carol
Grimm and Lee Selzer.
Ms. Grimm was interviewed. Priorities that she felt were needed
in Reading are to make sure that School money is being spent
properly, and to deal with Police issues. She is relatively con-
servative fiscally. She feels that the best tax value is local
taxes where there is local control over expeditures. She indi-
cates that she has no conflicts of interest.
Lee Selzer was interviewed. He feels the Town is in good finan-
cial shape, but needs to do more long range planning. He feels
that real education reform is needed. This means not necessarily
more money, but a different focus especially in the information
age. He feels that local community taxes are the best tax value
and that functions should be performed at the lowest level of
government possible.
Both names were placed in nomination, and in a role call vote all
three members of the Appointment Committee voted for Carol Grimm
for a.term on the Finance Committee expiring June 30, 1994. On
motion by Coco seconded by Hines the meeting was adjourned at
7~5 p.m. i
Tes ect 1 submitted,
S cretary
i