HomeMy WebLinkAbout1992-05-04 Finance Committee MinutesTp;'tqR
MINUTES OF THE
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READING FINANCE COMMITTEE
MAY 4, 1992
This meeting of the Reading Finance Committee was held in the Conference
Room, Reading Town Hall. Chairman Dick Coco called this meeting to order
at 7:45 PM.
MEMBERS PRESENT: Dick Coco, Chairman
Fred Van Magness, Vice Chairman
Bill Albro
Pete Dahl
Liz Greene
Gerry MacDonald
Bill Murphy
Nate White
OTHERS PRESENT: Peter Hechenbleikner, Town Manager
Joyce Miller, Board of Trustees, Cemetery
Maria Silvaggi, Reporter, READING CHRONICLE
BUSINESS
*Chairman Dick Coco introduced Bill Albro as the newest member of
the Reading Finance Committee, to fill the seat vacated by Bill Burditt.
ll. OLD BUSINESS
A. Audits of Departments
*Peter Hechenbleikner indicated to the Board that it is legal to hold an
audit of R M L D for investigatory purposes and discussed this with Town
Counsel.
*It was discussed that the School Committee has been more than
cooperative in their books being available to the Finance Committee.
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*Chairman Coco suggested some deliberance on the departments that
have been discussed for possible auditing. Accomplishing this now and
within the next couple of months, first as a Committee leveled audit, is the
strong endorsement of the Chairman. Financial help can be obtained at a
later date, but the first level should be the level of the Committee.
*Carroll MacMillan is the petitioner for these audits for the Finance
Committee.
*Liz Greene asked the Committee for some clarification of exactly what
is to be done in these audits.
*Peter Hechenbleikner advised eliminating Payroll in all the Department
auditing, as it is contractual.
*Mr. Coco indicated that W2's would have this information.
*Liz Greene asked for scope of this auditing, and its intent.
*Gerry MacDonald recommended that a representative from the
Reading Taxpayers Association come to speak to the Reading Finance
Committee.
*BN Murphy spoke of an agenda being necessary or that this audit
should be a very light investigation.
*Mr. Coco suggested that books, accounts, records and management
files in R M L D should be audited. Focus here is very important, according
to Mr. Coco.
*Pete Dahl requested an annual audit report of RMLD.
MOTION: Gerry MacDonald moved to approve postponement action of
auditing until after Town Meeting and Bill Murphy seconded.
VOTE: 6 - 0 - 0 APPROVED
DISCUSSION:
*BN Murphy indicated that being as little disruptive as possible is key.
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Keeping dialogue open with the Committees is the answer.
*Peter Hechenbleikner has some concerns because the busiest time
for the Town Accountant is this time period coming up.
*Peter suggests having the Town Auditors, Peat Marwick, active in this.
*Pete Dahl requests work papers of the audit first before asking for the
auditors to be at a meeting.
B. Regularly Scheduled Finance Committee Meetings
*Dick Coco brought up the scheduling for Finance Committee
meetings and this was discussed with the Committee.
*Peter Hechenbleikner announced that Wednesdays seemed to be the
night that the Finance Committee met regularly.
*Chairman Coco discussed the night of the fourth Wednesday of each
month as being the night for Finance Committee regular meetings.
*The first month to start this fourth Wednesday meeting will be the
month of May.
C. Capital Planning
*Dick Coco talked of Town Meeting member and former Finance
Committee Chairman, Don Allen, helping this Finance Committee with regard
to capital planning.
*Maria Silvaggi, Reporter for the CHRONICLE, suggested waiting for
the Town Meeting instructional notice.
*Fred Van Magness indicated establishing a subcommittee to look at
Capital Planning.
*Dick Coco told the Committee that having Don Allen come to speak
i before this Committee will be of great help.
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*Peter Hechenbleikner interjected that there is a problem in that the
Town cannot do all of the things anymore that need doing. Capital plan
should consider Schools/Municipality as a total package.
*Pete Dahl talks of possible change of by-laws may be necessary and
that a separate committee of non-Finance Committee people needs to look
independently at numbers.
*State Finance Committee outlines are discussed and the Finance
Committee Manual.
N. BUDGET/BOARD OF ASSESSORS
A. Appeals Monies
*Town Manager discussed the Division of Assessment budget and his
suggestion of the balance of the appeals money encumbered for tax appeals
for revaluation hearings next year. Hearings will be taking place in
September and the Finance Committee needs to be aware that the Finance
Committee will need to be ready to transfer funds from the Reserve Fund to
the Board of Assessors for tax appeal cases.
*Peter told the Committee that the goal is to have the process done so
well that money is not taken out of overlay - less money in abatements, more
money for Towns. Hearings are worthwhile. Encumber money for three
years. Money for legal help is very important and necessary to be able to be
firm with abatements.
*Discussion ensued about pending issues and new cycles of valuation
and appeals.
*Nate White asks questions on final rates and dates of billing.
*Pete Dahl asks how much money is usually spend on appeals and the
sum of $9700 was given.
*Pete Dahl would rather see this budgeted appropriately other than
from the Reserve Fund.
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*Town Manager indicated that the Town of Reading may have no
appeals, may have some appeals; no way of knowing this.
MOTION: Fred Van Magness moved to go along with the Board of
Assessors spending down their current encumbered funds during 1993 and
any shortfall would come forward to the Finance Committee and Gerry
MacDonald seconded this move to approve.
DISCUSSION: *BN Murphy would like to see $3300 put somewhere so
that Finance Committee does not have to worry about this expense.
*Dick Coco talked of open-ended request and would like
to see some sense of limits to this.
*Peter Hechenbleikner indicated that the Board of
Assessors does not know how many appeals the Town could have in volume.
*Fred Van Magness suggests giving the Assessors some
support here.
*Pete Dahl reminds the Committee that the Reserve Fund
may have heavy needs and may not be able to give necessary funds to the
Assessors from the Reserve Fund.
*Mr. Dahl would like access as needed, and suggested
transferring $5,000 and encumbering $15,000.
MOTION: Nate White moved the question.
VOTE: 6 - 0 - 0 APPROVED TO MOVE THE QUESTION
ORIGINAL MOTION VOTE. 7 - 0 - 0 APPROVED
IV. BUDGETZ1993
*The Town Manager presented changes to the Budget of 1993.
*Fred Van Magness had a question of Joyce Miller of the Board of
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Trustees, Cemetery.
MOTION: Fred Van Magness moved to reconsider line items and new
information from the Town Manager and Gerry MacDonald seconded this
move to reconsider.
DISCUSSION: Bill Murphy indicated that he would prefer more time for
these types of changes.
VOTE: 7 - 0 - 0 APPROVED
MOTION: Fred Van Magness moved to approve Line B10 in the amount of
$59,371 and Gerry MacDonald seconded this move to approve.
VOTE: 7 - 0 - 0 APPROVED
MOTION: Fred Van Magness moved to approve Line C12 in the amount of
$246,768 and Bill Murphy seconded this move to approve.
VOTE: 7 - 0 - 0 APPROVED
MOTION: Fred Van Magness moved to approve Line G7 in the amount of
$73,805 and Gerry MacDonald seconded this move to approve.
VOTE: 7 - 0 - 0 APPROVED
MOTION: Fred Van Magness moved to approve Rubbish Disposal
Collection budget in the amount of $800,634 and Bill Murphy seconded this
move to approve.
DISCUSSION: Fred had a question on the pass-through cost and Peter
Hechenbleikner explained what this meant. Until RESCO case is concluded,
this will stay exactly the same at pass through money.
Nate White went over the line items with the Town Manager
and admitted to being lost in understanding some things.
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Liz Greene had comments on trash fee.
VOTE: 7 - 0 - 0 APPROVED
MOTION. Fred Van Magness moved to approve the next line item and
Gerry MacDonald seconded this move to approve.
VOTE: 7 - 0 - 0 APPROVED
MOTION: Fred Van Magness moved to approve the next line item in
the amount of $230,950 and Gerry MacDonald seconded this move to
approve.
VOTE: 7 - 0 - 0 APPROVED
MOTION: Fred Van Magness moved to approve Line H23 in the
amount of $969,573 and Gerry MacDonald seconded this move to approve.
1 VOTE: 7 - 0 - 0 APPROVED
MOTION: Fred Van Magness moved to approve line H24 Cemetery
Expense/Mileage in the amount of $39,450 and Gerry MacDonald seconded
this move to approve.
VOTE: 7 - 0 - 0 APPROVED
DISCUSSION: There was a brief discussion by Pete Dahl with regard to
the mileage being in line with the Town of Reading's requirements.
MOTION: Fred Van Magness moved to approve Line N2 in the
amount of $2million, 736,074 and Gerry MacDonald seconded this move to
approve.
VOTE: 7 - 0 - 0 APPROVED
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V. OTHER OLD BUSINESS
*The Town Manager discussed Labor Council needs and the necessity
for a Reserve Fund transfer.
*Chairman Coco discussed the issue of no Finance Committee being
held on the evening of May 13.
*Discussion ensued regarding having an open discussion about the
School Budget money for the elevator. Peter will ask the Superintendent to
clarify this for the Finance Committee.
*School Department personnel will be present with the Finance
Committee at the Lecture Hall the evening of May 14.
Vl. ADJOURNMENT
MOTION: Liz Greene moved to adjourn this meeting at 10:45 PM and Gerry
MacDonald seconded this move to approve adjournment of this meeting.
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VOTE: 7 - 0 - 0 APPROVED FOR ADJOURNMENT
*This meeting of the Reading Finance Committee was adjourned at
10:45 PM. A&MA
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Note: Please make note that no voting privileges were bestowed the newest
member of Reading Finance Committee, Mr. William Albro, until he is
officially sworn in as a member of the Committee.
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Reading Finance Committee