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HomeMy WebLinkAbout2010-02-24 Finance Committee MinutesOF q~AO Finance Committee Meeting s" U February 24, 2010 ~'6'9:fH~o~eo~"tea Conference Room, Reading Town Hall The meeting convened at 7:30 PM in the Conference Room of Town Hall. FINCOM Members Present: Committee Chair George Hines, Matthew Wilson, Bryan Walsh, David Greenfield, Barry Berman and Kevin Leyne, and Harold Torman FINCOM Members Absent: Marsie West, Tom White Also Present: Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur There being a quorum the Chair called the meeting to order at 7:30 pm. Health Insurance Update: Mr. LeLacheur reviewed the latest details of the health insurance policy update shown on page 2 of the FINCOM packet. The chart on page 2 shows the enrollment numbers from June 2007 through January 2010 and shows that total enrollment increased by 31 which was mainly from the School Department. There has not been a significant amount of change in enrollment since 2007 but we have experienced high claims recently. The Town has money in surplus which can be spent at Annual Town Meeting. Next year there will be a 9.7% increase which is not much-different than the average of all MIAA communities. Mr. Wilson asked what the Medex column in the chart was and Mr. LeLacheur explained that it was for retirees and those on Medicare. Mr. Hines asked if the Town has compared Reading's insurance to the GIC (Group Insurance Commission) rates which is the State's insurance program. Mr. Hechenbleikner explained that we do not know the GIC rates because they are not yet available and the State has not been providing benefits to municipalities long enough to allow such a . comparison. Mr. LeLacheur summarized that the FYI I health insurance budget has increased by 9.7% with a 2% enrollment assumption added in when compared to the actual FYI 0 run rate, which is below that budgeted due to plan changes adopted in May 2009. FY11 Budget: Revenue Review: The Governor's budget avoided significant cuts in local aid to municipalities and although the budget is still evolving the State revenue situation is less uncertain at this point in time. Mr. LeLacheur explained that Reading's excise tax is as expected as is all other revenue sources except for permits which are down in terms of revenue. The FYI I budget uses a $950,000 in free cash. FY11 Town Managers Budget: Mr. Hechenbleikner stated that the FYI 1 budget is very close to a 0% increase. Mr. Berman asked if there were any personnel cuts. Mr. Hechenbleikner said that the Volunteers Coordinator position in the Community Services Department is not being filled after last year's vacancy. No other municipal cuts are proposed except possibly one due to a collective bargaining issue in DPW. Before the recent news on the state's economy, two positions in Community Services (the Staff Planner & Licenses & Permits Coordinator) as well as one firefighter position might have been eliminated. The Town Manager explained that the Town is $50,000 over budget for snow & ice but this number is much better than last year. Snow and Ice expenditures are shown on page 7 of the meeting packet. The increase in the price of salt has contributed to our increase in expenses. On a motion by Mr. Torman and seconded by Mr. Greenfield, FINCOM voted to concur with the Town Manager's letter dated January 19th, 2010 to place excess expenditures of Snow and Ice Control in the FYII tax rate in the Town Manger's budget by a vote of 7-0-0. Shelving repairs are needed in the Children's room of the Library. A letter from the Library Director on page 8 of the meeting packet explains that the shelves are not strong enough to support the books.. The cost of the new furnishing to reinforce the shelves will be $5,130 . On a motion by Mr. Walsh and seconded by Mr. Greenfield, FINCOM voted to approve the reserve fund transfer request for $5,130 to replace the book shelves in the library, by a vote of 7- 0-0. Regionalization: A member of FINCOM asked the Chair to summarize the current regionalization efforts to see if there is a possibility of sharing services to save money. The Town Manager provided a memo dated February 5, 2010 summarizing current regionalization efforts and also noting shared service opportunity areas. Mr. Hechenbleikner noted that there was previously a Tobacco Control Program with Stoneham and North Reading that was very successful but was dissolved by the State. The Town also used to participate in a regional health services program with Stoneham which worked for a few years but was ultimately discontinued due to staff personality conflicts between the two communities. Current regional and service sharing programs include the Veterans Services program between Reading and Wilmington, the Mystic Region Local Emergency Planning Committee, Essex County Fire Chief's Technical Rescue Team, Fire Hazardous Materials Team, Metrofire, a study for a Regional Dispatch Center is underway, NEMLEC (Northeast MA Law Enforcement Council, BAPERN (Boston Area Police Emergency Radio Network), MWRA Water Supply, MWRA Sewer Supply, Recreation/Adult Ed Program, Bids and Procurement, Household Hazardous Waste Day (shared with Wakefield twice a year), Waste Oil Collection (Wakefield, Reading & Stoneham), Rubbish Disposal which is a private facility but worked with other towns to negotiate a contract, Rubbish Collection and Recycling currently working with a consultant under a state grant, Regional Tobacco Control Program, Regional Public Health Emergency Coalition, Regional Meals on Wheels and Meal Site program, and Tax Assessments which is underway. Reading recently met with Melrose and.Wakefield with a consultant from the Collins Center and is still in progress but there is a possibility for sharing Tax Assessment responsibilities. The Town Manager explained that it is more difficult to share services among municipalities than in the private sector because there is typically one person in each position which would then mean that one person would have to then be shared between the communities. Regionalization may work to control cost and provide better services in some areas but may not necessarily save money. The Town Manager said that the areas where major efforts are focused are on rubbish collection and disposal, dispatching, and tax assessment but these programs will take a lot to implement. Mr. Hechenbleikner also'stated that dispatch and rubbish collection and disposal are the programs that 2 would most likely be implemented. Mr. LeLacheur'said he would send the February 5th memo summarizing the regional programs to the absent FINCOM members. March Budget Schedule: The Committee reviewed the March meeting schedule. FINCOM should plan to vote on the Town Meeting Warrant on March 24th at the latest and possibly start voting on the Warrant at the March 17th meeting. Ideally, FINCOM should have the Warrant ready with the votes and written reports by Monday April 5th to allow time for publishing and printing. There is an April 14th meeting scheduled but may be cancelled if the budget process is completed by that time. The March 24th meeting should be dedicated to voting on the Warrant. The Committee should send any questions or comments on the budget to Mr. LeLacheur so that they can be addressed at the beginning of each meeting. Mr. Hechenbleikner expects Town Meeting to take three nights this year because there are three zoning articles. Also in the FINCOM meeting packet there is a letter from MIIA that should be reviewed by the Committee. Mr. LeLacheur noted that a change to the Open Meeting Law will now require meeting minutes to be posted within seven (7) days from the meeting so FINCOM may see Draft minutes posted before being approved. Mr. LeLacheur also told the members for review their contact info on the liaison list and to send any changes to him. Mr. Hines informed the Committee that the Selectmen were recently discussing the Local Meals Tax and he asked if FINCOM to consider hosting a public revenue strategy workshop to develop ideas for non-tax revenue opportunities. Mr. LeLacheur suggested a meeting in May for this workshop. Mr. Hechenbleikner summarized the Selectmen's discussion on the local meals tax. FINCOM members discussed the local meals tax option. Several members felt it was a missed opportunity that was not approved by Town Meeting in the fall and the Committee discussed adding it to the Warrant for Annual Town Meeting. The Warrant is scheduled to close on Tuesday, March 2°d. On a motion by Mr. Berman, seconded by Mr. Greenfield, FINCOM voted to add the local meals tax to the Annual Town MeetinS Warrant by a vote of 5-2-0 (Mr. Hines & Mr. Walsh voted against). FINCOM Minutes: On a motion by Mr. Greenfield, seconded by Mr. Torman, FINCOM voted to accept the minutes of September 30, 2009 as written by a vote of 6-0-1 (Mr. Wilson abstained). On a motion by Mr. Walsh, seconded by Mr. Greenfield, FINCOM voted to accept the minutes from October 14, 2009 as written by a vote of 7-0-0. On a motion by Mr. Lavne, seconded by Mr. Walsh, FINCOM voted to accept the minutes from. November 9, 2009 as written by a vote of 7-0-0. On a motion by Mr. Torman, seconded by Mr. Greenfield, FINCOM voted to accept the minutes from November 18, 2009 as written by a vote of 7-0-0.