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HomeMy WebLinkAbout1992-02-26 Finance Committee Minutesj MINUTES OF THE READING FINANCE COMMITTEE FEBRUARY 26, 1992 This meeting of the Reading Finance Committee was held in the Conference Room of Town Hall and was called to order by the Chairman, Bill Burditt, at 7:30 PM. Members Present: Bill Burditt, Chairman Fred Van Magness, Vice Chairman Dick Coco Gerry MacDonald Carroll MacMillan Bill Murphy Nate White Others Present: Peter Hechenbleikner, Town Manager ( Beth Klepeis, Town Treasurer Maria Silvagi, Reporter, READING CHRONICLE 1. FINCOM BUSINESS DISCUSSION *Bill Burditt opened this evening's meeting in discussing his concern regarding revenues for the Town of Reading. Bill talked of assessments and taxes and fines and discussed the Selectmen's meeting that had just occurred. Bill feels strongly that projections for revenues are overstated and he has some deep concerns that he is bringing forth to the Committee. *Indicating that State Aid will be a problem, Bill stated that he assumes the Town of Reading will lose funds. *With current numbers being used, Free Cash is being used less. Bill feels the need to address what is necessary as a target for FY93 and questioned the Committee for input in this as to what the sense of the Committee is concerning this issue. 1 *Bill asked if the Committee wanted to continue to review the Budget as is being done and then come back and make cuts, or do we suspend the Budget process until later. *Again, Bill needs feedback from Fincom as to which way to go from here, and also asks the thoughts of the Town Manager on revenue projections. *Peter Hechenbleikner spoke at this time and expressed his feelings in proposing to include projections as held currently. *Peter indicated following very closely each month to use figures to get the best projections. Peter stated that the end of January looked pretty good with regard to revenue, but that all of the bills have not come in as yet. Peter understands the concern of the Finance Committee, but the recommendation from Town Manager to Fincom was not to modify the projections of revenue except for RMLD. *At this time in the meeting, Committeeman Nate White indicated that the members were all assembled here this evening to discuss the budget i and there was a lot of information to go through now, and to proceed with budget items. *The Chairman told the Committee that he felt the Selectmen are getting into areas going against budget numbers that may be potentially inflated, and bill was concerned about getting "pieces and pieces". *Here, the Town Manager told the Committee that he was prepared to do as they wished and either present the Budget that has been voted on already or hold off until next week and present the full Budget. *Fred Van Magness indicated that he was in agreement with the data supplied by Bill Burditt and also sees the shortfall. However, Fred suggested to the Committee that the Town Manager recognizes things are pretty tight and that his message to all departments is "watch spending". V was then suggested by Mr. Van Magness to begin where the Committee suggested they would start tonight and get on with things and get the process going now. *Beth Klepeis, Town Treasurer delivered the news to the Committee that the Town has received the reimbursement from Hurricane Bob. At this point, Beth indicated that keeping Fincom updated was planned through all of this waiting. *Bill Burditt asked about property taxes and receivables and what was expected in revenues. *Bill Murphy asked about the Reserve Fund and Fred Van Magness told the group that he felt that the Town Manager was doing a wonderful job in not coming to Fincom for Reserve Fund Transfers; no requests have come from the Town Manager. *Nate mentioned that there would be no certified Free Cash until after July. *Peter mentioned that Workers Compensation is in a Trust Fund and now and that new administrators have made the difference here. . *Peter did not forecast problems in salaries of the Police Department and the Fire Department budgets. *Carroll MacMillan has issue on the refund money to go back to the Townspeople of Reading. He asked about the trash fee and giving the money back to the people if the Town is not in the trash business. *The Chairman discussed using a private contractor and how this system would work for the Town. *Fred interrupted here and asked the Committee to get on with the business at hand and discuss the budget items. U. BUDGET A. PERSONNEL *Peter presented this budget to the Committee in discussion of each of the line items. He mentioned consolidation of Clerical Staff and Advertising and Medical Services. 3 *The Employee Assistance Program was valuable to the employees but now has to be eliminated in this proposed budget. The total is down from last year because of in-state travel, which has -been reduced. *Programs and Memberships that are in this budget are important, and the Town Manager feels that keeping updated in these areas is important to the Town for consistency in the Personnel operations. Peter indicated doing pretty well in this area, as a whole. *Fred Van Magness questioned Professional Development budget and a special conference listed. The Town Manager explained that the State of Massachusetts will be running this conference. However, Mr. Van Magness feels that there may be no merit in attending some of these special conferences. *Mr. Coco, who has been avidly opposed to voting for Professional Development monies, brought forward the news in the READING CHRONICLE that textbooks were being purchased by handouts from the Town. Mr. Coco feels stronger than ever the need for priority spending and some cuts in this particular budget. *Dick Coco would like to see Professional Development cut in these tough economic times when we need to take handouts to purchase books for our school children. *Beth Klepeis took the floor in explanation to both Mr. Coco and Mr. Van Magness of some of the spending in these areas. Spoke of distinct breakthroughs in the Professional Development budget. *During the course of explanation, Mr. Coco interjected that cuts are made continually in the private sector and that no monies for Professional Development is available in business. Mr. Coco also questions a good return of money spent here on Professional Development. *Mr. White spoke of many top management people participating in these Professional Development meetings to learn things that are directly related to their jobs. *Bill Burditt did mention that the State of Massachusetts Finance Committee meetings have been in this particular budget and that the 4 Chairman has gone to the meetings and come away from them learning many things. Absorption can easily happen in these meeting environments, and the meetings can pay off handsomely. *Bill Murphy had a question of Beth as to how much actual money would be saved in banking fees and Beth indicated that she had just begun receiving quotes and would have to get back to the Finance Committee with actual figures. *The Town Manager told the group present that the Budget is sharply reduced in this area. *Bill Murphy could not imagine how some of the arrival of figures was established, as they seemed relatively low in comparison to what he had been accustomed to in his own business travel expenses. *Both Beth and Peter indicated that expense monies were minimal. MOTION: Bill Murphy moved to approve Budget in the amount of $23,720. and Gerry MacDonald seconded this motion. AMENDMENT. Fred Van Magness moved to approve line item C11 for Non- Personal Expense in the amount of $17,400. and Gerry Mac Donald seconded this motion to approve. DISCUSSION: Fred explained reductions for this budget in areas such as Special Conferences, Human Services, Police and Safety, Public Safety, Public Works; a 25% reduction in the amount that was requested for this Budget. Fred finds it very difficult to support much in this budget when times are so tough. He mentioned keeping Dues and Membership Fees in the budget so people could be members of organizations of worth, but take out Professional Development side of the Budget. The Chairman mentioned that the list of items on this Budget had been well reviewed before it was even presented to the Finance I j 5 Committee and that Bill does not think he will vote for the amendment. AMENDMENT VOTE: 3 - 4 - 0 defeated in the amount of $17,400. MAIN MOTION VOTE: 4 - 3 - 0 approved in the amount of $23,720. Ill. FINANCE.ZGENERAL BUDGET ral A. Gene *The Town Manager again took the floor here in presentation of the Finance Budget to the Committee. *Peter pointed out reductions again in Clerical Staff and Legal services. The Budget was taken into explanation line by line by the Town Manager and by the Town Treasurer. *Question from Bill Murphy regarding cost of sending out bi- monthly bills. *Fred Van Magness asked questions about the Clerical Staff and how each is paid. Fred asked for help from Beth to define this area of the Budget. *Ms. Klepeis explained that there are two full-time clerical employees in the Assessor's Office, one Administrative Assistant and one Clerk. *Ms. Klepeis explained that there are four full-time clerical employees in the Collector's Office, one Administrative Assistant and three Clerks. s_ *Ms. Klepeis explained that there are two full-time clerical employees in the Treasurer's Office, one Administrative Assistant and one Clerk. *Mr. White interjected his feelings about these areas being so "nit-picked". Nate feels that it is absurd to go through this kind of exercise at this time. Nate believes it is not prudent to begin "second guessing". Nit- picking the allocations is not necessary, as this kind of a thing kills all of our time at this meeting. *Here, Mr. Van Magness exclaimed that he was simply asking questions of concern and that if Mr. White did not want any more questions, he should have stated such. At this time Mr. Van Magness took his budget paperwork off the meeting table in preparation for departure. *The Chairman reinforced his feelings that all at this meeting are a Committee, all are from various backgrounds, all have valuable input, all are entitled to their own opinions. *Carroll MacMillan stated that bi-monthly billing was already i addressed and that the Finance Committee, as a Committee, preferred monthly billing. Currently, we are presented with a Budget with the Town Manager's recommendation. MOTION: Nate White moved to approve the Finance General Personal Services Budget in the amount of $24,598 and Chairman Bill Burditt seconded this motion to approve. DISCUSSION:BN Murphy asked for some clarification of the vote and received it at this time. VOTE: 6 - 0 - 1 approved, with Mr. Van Magness abstaining MOTION: Nate White moved to approve the Finance General Non- Personal Budget in the amount of $42,979 and Bill Burditt seconded this motion to approve. VOTE: 5 - 0 - 2 approved, Mr. Van Magness,Mr. MacDonald abstained I 7 IV. ADJOURNMENT *At this time, Carroll MacMillan discussed adjourning in lieu of the ill health of the Town Manager this evening. MOTION: Carroll MacMillan moved to adjourn the meeting of the Reading Finance Committee with Mr. Coco seconding the motion. VOTE: 7 - 0 - 0 approved for adjournment *The meeting was adjourned at 9:30 pm. I /sf 8