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HomeMy WebLinkAbout1992-02-12 Finance Committee Minutes~MINUTES OF THE READING FINANCE COMMITEE FEBRUARY 12, 1 992 Members Present: Willard Burditt, Chairman Frederick VanMagness, Vice Chairman Pete Dahl (arrival at 9 P.M.) Liz Greene Gerald MacDonald Carroll MacMillan William Murphy Nathan White _ Others Present: Peter Hechenbleikner, Town Manager ~Beth Klepeis, Town Treasurer Richard Foley, Town Accountant Maria Silvagi, Reporter, READING CHRONICLE This meeting of the Reading Finance Committee was held in the Conference Room of Reading Town Hall. The meeting was called to order at 7:32 P.M. by Chairman Bill Burditt. I. BUDGET A. Budget Liaison Report from Bill Burditt *The Chairman opened up the meeting this evening stating that after some discussion, it was established that a 10:30 P.M. target adjournment time would be set for each Finance Committee meeting. *There was some discussion pertaining to other Town i meetings and members of the Finance Committee's attendance at other 1 meetings in the Town. *Bill Burditt has attempted to either attend or watch on Cable TV the Selectmen meetings and those meetings of the School Committee to be "up-to-the-minute" informed. *Bill mentioned that he had some major concerns after watching the Selectmen at their meeting last evening. Bill has some concerns of some potential budget problems before the Selectmen go further with the trash issue. Bill's main concerns were about Town money being used in the analysis of rubbish collection/disposal options. *Nate White reminded the Finance Committee that the Selectmen have not made up their minds as yet. *Fred VanMagness spoke here about the revenue picture being still "up in the air", and that the Finance Committee really needs to take line item by line item through. *Carroll MacMillan discussed contract issues in the Town of Reading. Mr. MacMillan would like to be able to see any and all contracts so that knowledge of standing will be understood. Mr. MacMillan feels that everyone on the Finance Committee should have pertinent financial contracts to peruse. B. Accounting Department Budget *Peter Hechenbleikner discussed the Accounting Department and explained the work here is to ensure that financial transactions are in compliance with legal requirements and that these are properly recorded on a timely basis. *Accounting Department also maintains financial records that facilitate the preparation of financial reports and schedules that provide meaningful, accurate information for comparability and for management's decision-making process. *Beth Klepeis and Richard Foley were both representative of f the Accounting Department at this time and gave an overview of the work 2 involved in the department. The major elements provided are as follows: *prepare and review financial transactions *prepare payroll and bill warrants *reconcile detailed information to control (cash, receivables) *maintain Town's financial records for: *general ledger *subsidiary ledgers *general journal *prepare financial statements for: *annual financial statements *State reports (schedule A, tax recap) *special topics (bond disclosure) *provide financial information for: *Town officers and departments *Federal, State or other governmental jurisdictions *investment bankers and bond rating agencies *educational or research organizations *taxpayers and citizens *auditors *administration of retirement system as follows: *maintaining general ledger *maintaining member information *investment decisions (Retirement Board) *policy decisions (Retirement Board) *Fred VanMagness asked what the Accounting Department provided for the Electric Company and Richard Foley explained the assistance in processing bills and payroll. *Richard Foley explained a formula which worked with the Electric Company and Beth also gave explanation. *Bill Burditt suggested voting as each item is discussed for the sake of being concerned about forgetting important information. *Fred asked about the clerical help in the Accounting Department and asked just what types of activities have been taken out of the budget so that downsizing of Staff could possibly occur. Question was 3 regarding efficiency. *Peter Hechenbleikner explained prioritization in the Accounting Department. Maintaining a strong financial system is its primary function. *Peter explained moves to eliminate increases in Staff. Accounting department is heavily dependant on the Data Processing Department and in terms of accounting and financial work and there is, not a thing being done that should be shed, in terms of workload. *Fred VanMagness asked about a reduction of one person and does not think this is an unreasonable request. *Beth explained the duties of the Administrative Assistant position and all that is handled in her job since taking on more work in billings, etc. *Mr. VanMagness appreciated the explanation of the position but needs to see headcount reductions for the Town. *Classifications of positions were offered by the Town Manager at this time. *Beth told the Finance Committee of the large volume of work now being done by Accounting for the School Department and the increase of workload since the Business Manager position was eliminated. There are twelve new departments being served. *Beth begins an explanation of the Data Processing functions. *Nate White asked if Accounting and Finance could be included as one. *Ms. Klepeis answered this would be not feasible. *Chairman Burditt asked for a sense of the Finance Committee here as to how the Committee would like to treat each budget that would be presented this evening. Bill would prefer to vote the budget tonight without waiting, and asks the Committee which way they would prefer to go. MOTION: Nate White moved to approve the gross budget of the Accounting Department in the amount of $105,450. DISCUSSION: Liz Greene made a suggestion to vote Personal Services Non-Personal Services budget separately. Fred has procedural questions now and asks if Nate should add something to his motion. Bill Burditt seconded the motion of Mr. White to approve the gross budget of the Accounting Department in the amount of $105,450. DISCUSSION: Bill mentioned that the areas of the budget of non- controversy should have action taken tonight. The more "non-controversial" budget items seem to be on tonight's agenda and Bill requests some action. AMENDMENT TO MOTION: Fred VanMagness moved to approve Line Al in Personal Services in the amount of $92,495 and Line A2 in Non-Personal Services in the amount of $300.00 This amendment motion was then seconded by Nate White. DISCUSSION: Committeeman Bill Murphy here discussed not wanting to choose a Town Accountant position and have to have one less policeman in the Town. Bill would strongly vie for the policeman's position. Bill suggested considering the entire budget in total .and not review the budget piece by piece. VOTE: 7 - 0 - 0 approved $92,495 Personal Services/Accounting VOTE: 6 - 0 - 1 approved $300.00 Non-Personal Serv/Accounting 5 C. Contributory Retirement Budget *Peter Hechenbleikner presented this budget and explained that the Town of Reading operates its own retirement system. Everyone except the few individuals before the year 1939 that worked for the Town is eligible. *Fred Van Magness has a question regarding the Administrative Assistant's role in the Contributory Retirement Department. Fred asked exactly what this person does in her capacity and Beth Klepeis explained her functions. *Fred indicated that a fulltime person in this role does not make much sense to him. *Peter indicated that this person must maintain a complete file on each retiree. *Mr. VanMagness has a question here on Banking Services cost. *Beth Klepeis indicated taking bids on this issue now. *Fred questioned the Professional Development figure in this Department. *Richard Foley explained the legal obligations of the Board of Retirement. MOTION: Fred VanMagness moved to approve Line item L1 in the Contributory Retirement Budget in the amount of $1 M,628,704, with a bottom line figure of $2M,271,553. Gerry MacDonald seconded this move to approve. DISCUSSION: Liz Greene cannot support this at this time. Liz cannot eliminate a total position without further discussion. Liz does not feel that the Finance Committee is equipped 6 to vote after a ten minute discussion to totally eliminate a position. Liz feels that the Town Manager and the Treasurer have a better knowledge of this position than the Finance Committee at this time. Bill Burditt agrees with Liz that the elimination of the position is premature at this time and requests that the motion be withdrawn for another. Gerry MacDonald, who seconded the motion, now cannot support the elimination completely of the position on the Retirement Board. Fred VanMagness indicates that he sees no real reductions in this department and must now see ways of consolidating activities. Fred feels that consolidating activities is the answer. Peter Hechenbleikner comments that the Reading Retirement Staff is lean already. The budget is the best layout of expense dollars. Peter indicated strongly that it takes people to operate the department. The clerk picks up other respon- sibilities for the Town other than strictly Retire- ment Board functions. Bill Murphy answered back that each and every depart- ment is underfunded. He suggested getting on with the voting of each line. Chairman Burditt again voiced strong concerns based on doing away with one total position before investi- gating the total scope of this elimination. Mr. VanMagness reminded the Committee that "tough- choice decisions" are at hand and that "we need to start making some tough-choice decisions at this time." Beth Klepeis inputted that if the Committee votes to let Staff go, that something slips in efficiency and in ability. Mr. VanMagness would like to see management take the responsibility of addressing having less Staff and still having efficiency. AMENDMENT TO MOTION: Bill Burditt moved to amend the motion approve the Contributory Retirement Budget in the amount of $1 M16461957 and Nate White seconded this motion. AMENDMENT VOTE: 6 - 2 - 0 approved (VanMagness and Murphy opposed) D. Non-Contributory Pensions Budget *Peter explained the budget in completion. MOTION: Nate White moved to approve the Non-Contributory Pension budget in the amount of $116,422 and Bill Murphy seconded. VOTE: 8 - 0 - 0 approved E. Finance Committee Budget *Peter Hechenbleikner indicated that a salary cut was recommended for the Recording Secretary to $750. *Audits were discussed by the group and the necessity to keep the service of auditing, which is a necessary financial price for the Town of Reading. MOTION: Fred VanMagness moved to approve the Personal Services budget in the amount of $750 and Carroll MacMillan seconded. j` VOTE: 8 - 0 - 0 approved 8 MOTION: Nate White moved to approve the Non-Personal budget in the amount of $32,935 and Bill Murphy seconded. VOTE: 8 - 0 - 0 approved F. Assessors Budget MOTION: Fred VanMagness moved to approve the budget in the amount of $67,397 Personal Services and Gerry MacDonald seconded this motion. VOTE: 8 - 0 - 0 approved MOTION: Fred VanMagness moved to approve the budget in the amount of $3750 in Non-Personal Services and Nate White seconded this motion. VOTE: 8 - 0 - 0 approved G. Data Processing Budget *The Town Manager presented this budget to the Committee and there were questions about sending the Water and Sewer bills to the public so seldom and it being a costly way to go at this time. Bi- Monthly, Semi-Annually or Quarterly bills was the issue. *Pete Dahl asked about maintenance of equipment and about savings in the personal computer maintenance MOTION: Fred VanMagness moved to approve line C9 in the Data Processing Budget in the amount of $52,900 and Gerry MacDonald seconded this motion to approve. VOTE: 7 - 1 - 0 approved (Carroll MacMillan opposed) *Discussion ensued regarding billing time, and Chairman Burditt 9 asked for a sense of the Committee regarding this. *Fred VanMagness - in favor of quarterly billing *Gerry MacDonald - in favor of quarterly billing *Pete Dahl - bi-monthly if receivables are affected *Nate White - in favor of bi-monthly *Bill Murphy - in favor of quarterly billing *Carroll MacMillan - in favor of quarterly billing *Bill Burditt - in favor of quarterly billing *Uz Greene - not in attendance for this sense of the Committee 11. ADJOURNMENT MOTION: Fred VanMagness moved to adjourn the meeting and Gerry MacDonald seconded the motion to adjourn. *This meeting of the Reading Finance Committee was adjourned at 10:42 P.M., with the next scheduled meeting set for February 24 at the Killam School. Respectfully submitted to the Committee, f 4:9%~ .4c Sue Finn, Recording Secretary Town of Reading, Finance Committee /sf 10