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HomeMy WebLinkAbout1992-05-04 Finance Committee MinutesTp;'tqR MINUTES OF THE X1,19 5 3 s` 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. -1- *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. .2. 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. -3- *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. -4- *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 -5- 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. .6_ 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 -7- 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. j VOTE: 7 - 0 - 0 APPROVED FOR ADJOURNMENT *This meeting of the Reading Finance Committee was adjourned at 10:45 PM. A&MA Sue 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. -s- Reading Finance Committee