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HomeMy WebLinkAbout1993-03-17 Finance Committee Minutes_ C! Finance Committee Meeting March 17, 1993 The meeting convened at 7:30 p.m. in the conference room, at 16 Lowell Street, Reading, MA. The following members were present: Chairman Richard Coco, Fred Van Magness, Jim Keigley, Bill Murphy, Steve Blewitt, Bill Albro, Nate White, Liz Greene and Gerry MacDonald. Also in attendance were Town Manager Peter Hechenbleikner, Mark Huber, George Thompson, Gail Wood and from the Chronicle Maria Silvaggi. Tonights agenda consists of a presentation from the Capital Improvement Advisory Sub-Committee, a review and approvement of articles and balancing the budget. On April 13,1992 a vote was taken to establish the Capital Improvement Advisory Sub-Committee. This.committee is to most effectively advise the Finance Committee on capital spending and will be reviewing all of the past years budgets to determine our history of capital spending. In reviewing projects the committee takes five things into consideration: necessity, replacement, cost savings, performance, and safety, before recommending that an item is of high priority. Capital Improvements Advisory Sub-Committee stated that there is a need for renovations at the Police Station. The town is going to try to get a grant. The towns revenue projections are intentionally conservative right now, the only increases are property tax, up 2Z% and new growth increase of $120,000. Financial advisors met with the Town Manager to discuss changing short term bonds to long term bonds. The town would be able to sell bonds at 20 years and have a call feature, or the town could structure debt repayment to defer interest payments until the end with a 4% premium. Additional funding within the town are the sale of real estate. The town has requested proposals to sell Bear Hill and it will hopefully be closing in about a year. With a real estate sale it is proposed that an amount of $1,000,000 be set aside as a reserve for capital expenses, and any amount exceeding that would be used to fund the unfunded pension liability. The Town Manager stated that 10 years ago all the town debt was in schools, now it has reversed. He also stated that 5.75% of the operating budget is needed to fund the CIP. Instead of bonding project costs less thatt. $100,000 they are to be paid for in cash or short term notes. Also, the CIP should not rely on outside funding. Finance Committee Meeting March 17, 1993 Page 2 Jim Keigley states the town has neglected maintenance to schools. In the next five years, buildings will be lost if the renovation project doesn't start. The next 3-5 years will be very tight, but if we put it off any longer it could increase even more. There was an extensive discussion pertaining to the drastic increase in cost for the school renovations. Steve Blewitt stated that new heating systems and electrical updating should have been known 2 years ago when the project was first reviewed. Bill Murphy commented he has interfaced with the School Building Committee and he has great confidence that they have done what needs to be done for what they have proposed. There was-some discussion pertaining to the landfill. The town may propose to get a grant to close it. The Capital Improvement Advisory Sub-Committee's current focus is evaluating the school projects and its affordability. The committee has committed to identify all capital expenses and programming them in order not to have any surprises. On motion by Fred Van Magness seconded by Gerry MacDonald the Finance Committee accepts the'Capital Improvement Advisory Committee's report by a vote of 9-0-0. On motion by Fred Van Magness seconded by Gerry MacDonald the Finance Committee voted with intent to allow bonding in the amount of $6,526,465 for the renovations at Birch Meadow and Joshua Eaton which is article 13. The motion was passed with a vote of 5-4-0. On motion by Fred Van Magness seconded by Bill Murphy the Finance Committee voted to approve article 14, bonding $60,000 for a portable classroom at Birch Meadow. The motion was approved with a vote of 9-0-0. On motion by Fred Van Magness seconded by Bill Murphy the board voted to approve article 15. $70,000 will be bonded for the roof repair of 5 sections at the high school. The motion was approved with a vote of 9-0-0. On motion by Fred.Van Magness seconded by Bill Murphy the board voted to approve article 16. $30,000 will be spent to refurbish the track at the high school. The motion was approved with a vote of 6-3-0. Article 17, Gas conversion/oil tank replacement in all Reading schools, action is pending. Additional information is needed, including fuel, cost, boiler replacement, gas operating expenses, tank removal/replacement. These expenses need to be reviewed. Finance Committee Meeting March 17, 1993 ;Page 3 At 9:15 p.m. the Finance Committee adjorned for a 5 minute recess. The Town Manager stated that the Building Maintenance budget will now be moved to the Department of Public Works. Fred Van Magness moved that line item H-11, Parks and Forestry. be reduced from $5,000. to 0 with Gerry MacDonald seconding. The motion was approved with a vote of 6-1-2, with Nate White and Jim Keigley abstaining. Jim Keigley expresses his disagreement with the fact that the School Committee requests a level service budget. He doesn't think it is fair to demand their budget and take from other budgets. On motion by Bill Albro seconded by Gerry MacDonald the board voted to reduce form B, page 79 of the original budget, item teacher's aides $48,000. The vote was approved 7-0-2 with Liz Greene and Bill Murphy abstaining. Fred Van Magness expressed his concern for the monies tied up in workman's compensation. Fred Van Magness motioned to reduce line item L-6 by $50,000 out of the general fund, with Gerry MacDonald seconding the motion is approved with a vote of 5-3-1 with Steve Blewitt abstaining. Brief-discussions were made regarding whether or not the town should fund the athletic program. Also discussed was the poss- ibility of reducing the library hours and services. On_met-i-en~~ Fred Van Magness se~e by Gerry MacDonald t-he to reduce the personal services at the library $50,000. The motion did not pass with a vote of 0-9-0. On motion by Gerry MacDonald seconded by Jim Keigley the board voted to eliminate the assistant superintendent's position. The motion did not pass with a vote of 3-5-1 with Liz Greene abstaining. Steve Blewitt moved to reduce the salary adjustment fund by $85,773, Gerry MacDonald seconded. The motion did not pass with a vote of 2-7-0. On motion by Fred Van Magness seconded by Gerry MacDonald the committee voted to reduce the school administration clerical position in the amount of $18,782. The motion is approved with a vote of 6-2-1 with Liz Greene abstaining. Gerry MacDonald moved to reduce school building maintenance from $237,000 to $137,000, Bill Albro,,seconded. The motion Finance Committee Meeting March 17, 1993 Page 4 did not pass with a vote of 1-7-1 with Liz Greene abstaining. Fred Van Magness moved to amend that the budget be reduced just $20,000, Bill Murphy seconded. The motion did not pass with a vote of 3-5-1 with Liz Greene abstaining. Fred Van Magness moved to reduce the high school library budget by $40,154 which involves elimination of aides and supplies. Bill Murphy seconded, the motion is approved by a vote of 8-0-1. Fred Van Magness states that the overbudgeted amount of $136,058 should be allocated over the town budget on a percentage basis between schools and town budgets. On motion by Nate White seconded by Gerry MacDonald the board voted to fund engineering salaries amount of $36,058 from . . Chapter 90 funds. The motion was appoved with a vote of 5-4-0. Nate White moved a $100,000 blanket reduction to be arrived at by the school board with Jim Keigley seconding. The motion did not pass with a vote of 2-6-1 with Liz Greene abstaining. On motion by Fred Van Magness seconded by Gerry MacDonald the )board voted to eliminate the replacement of Assistant Director of Public Works, the reduction would be $40,000. The motion did not pass with a vote of 2-7-0. On motion by Steve.Blewi.tt seconded by Bill Murphy the board voted to reduce town counsel from $97,500 to $95,000. The motion was approved with a vote of 8-1-0. Steve Blewitt moved to reduce line C-11 tax title services from $20,000 to $15,000 with Gerry MacDonald seconding. The motion was approved with a vote of 7-2-0. Bill Murphy's amendment to reduce it by $1,000 with Bill Albro seconding, did not pass with a vote of 4-5-0. On motion by Gerry MacDonald seconded by Fred Van Magness, the board voted to reduce the athletic director's salary $9,960. The motion was approved with a vote of 8-0-1 with Liz Greene abstaining. On motion by Bill Albro seconded by Gerry MacDonald the board voted to reduce school tuition $78,500. The motion did not pass with a vote of 2-6-1 with Liz Greene abstaining. On motion by Fred Van Magness seconded by Jim Keigley the board voted to take $20,000 out of free cash, $40,000 from provisions )for abatement, and increase motor vehicle excise tax to $22,540. The motion was approved with a vote of 7-2-0. Finance Committee Meeting March 17, 1993 Page 5 On motion by Gerry MacDonald seconded by Bill Murphy the board voted to approve the budget as amended by line item. The motion was approved with a vote of 9-0-0. The Finance Committee meeting was adjorned at 11:15 p.m.