HomeMy WebLinkAbout2010-03-17 Finance Committee MinutesOP I?
Finance Committee Meeting
March 17, 2010
~'sJ9:,N owco~pc 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, Vice Chair David Greenfield, Barry
Berman, Kevin Leyne, Harold Torman, Bryan Walsh, Marsie West, Tom White and Matthew Wilson.
Also Present: Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob
LeLacheur, Fire Chief Greg Burns, Police Chief Jim Cormier, DPW Director Jeff Zager, Library
Director Ruth Urell, Library Trustees David Hutchinson, Cherrie Dubois, Victoria Yablonsky, Karyn
Storti and Jeffrey Doucette. Selectmen Camille Anthony, Residents Bill Brown and Tom Ryan.
There being a quorum the Chair called the meeting to order at 7:30 pm.
Public Comment:
Tom Ryan (Dana Road) handed out a list of suggestions where costs could be cut without cutting
services. He also included a letter to the editor opposing the meals tax. Bill Brown (Martin. Road)
spoke in favor of selling the Town land on Oakland Road. He also handed out a list of suggested cuts
that in his opinion would have little or no effect on essential Town services. All three of these handouts
are included in full at the end of these minutes.
FY11 Town Manager Budtet Review .
Mr. Hechenbleikner reviewed the guiding principles in putting this budget together. He again
mentioned the cohesive nature of budget preparation between the Town and School sides, and
reminded FINCOM that the schools had one more year of a labor contract to honor for FYI 1. Many
years ago the schools broke away from having the same collective bargaining contract period, but the
current superintendent and school committee are interested in once again having common contract
periods if possible, necessitating the Town to have one-year deals. A full copy of the guiding principles
is also at the end of these minutes.
FY11 Town Managers Budget: Benefits (pp. 13-19), Capital (pp. 4-12) & Debt (handout)
Mr. LeLacheur reviewed the Town's published response to recent articles in the Boston Globe about
the universal value of the state GIC insurance plan. The town through bargaining with all of the unions
last spring changed to a three-tiered MIIA.program that was expected to save more than the GIC
alternative would. To date,, in FYI 0 the projected savings are on target, and the GIC has had financial
difficulties forcing adverse midyear changes for participants. For FY11, health insurance is projected
to increase by 9.7% and a small enrollment cushion is built in to the budget. Due to a decline in the
value of pension investments, the assessment is up 4.5% for the next two years, a bit higher than is
usual. Because of slow re-employment, unemployment costs have soared in FYI 0 and are expected Ao
remain high in FYI 1.
The Capital Plan (summary on page 5) is generally balanced for the next ten years versus expected
funding levels. Next year, there may be a last minute shift in priorities as the Killam parking lot is in
need of paving, and two windows projects are deemed less important. Debt Service (handout) is
unchanged from last year, except for the addition of 15-year performance contracting debt as well as 5-
year fire engine debt.
FY11 Town Managers Budget: Municipal government overview (pp. 3& 20)
Mr. Hechenbleikner re-iterated that all wage assumptions in his budget were for salary freezes except
in the case of probation periods due to new hire or promotions. That is to say that zero percent COLAs
and no step movement are anticipated in FYI 1. Expenses are funded at or close to FYI 0 levels.
FY11 Town Managers Budget: Library (pp. 60-64)
Ms. Urell reviewed a mostly unchanged budget for the library for FYI 1. FTEs and wages are frozen at
FY 10 levels at a time when demand for services is increasing from residents. Library materials are
funded at the full 15% due to the last minute state aid budget news from the Governor. Mr. Hines
asked about late fees for library materials. Ms. Urell mentioned the cost of administering late fees and
that the current policy of accepting donations in lieu of late fees seems to be working well. Revenues
could be raised by increasing the rental rate for meeting rooms - they are frequently booked and the
fee is very low - it probably does not cover all costs.
FY10 Budget amendments: Library Feasibility Plan
Ms. Urell also reviewed a $75,000 request to do a building feasibility study in time to be completed by
October 2010 and thus be eligible for state reimbursements on some portion of the final project
(smaller projects are funded at 50% maximum, with lesser percentages as size increases).
FY11 Town Managers Budget: Community Services (pp.24-30)
Ms. Delios reviewed the Community Services department. She explained the loss of funding from the
permits revolving fund for FYI 1 for the positions of Staff Planner and Permits Coordinator. Each
position was cut from the level #2 budget but restored when state aid in the Governor's budget was not
as dire as previously forecast. Mr. LeLacheur explained that a $25,000 reduction to veteran's benefits
is the best estimate at this time, based on the actual run rate of the past two months during FYI 0. Ms.
West noted that the funding source should not be a criterion to determine which positions should be
cut. That choice should be made based upon merit and overall value to the town. Mr. Hechenbleikner
mentioned that there are no other operating expense positions that are funded from sources that will
diminish over time.
FYll Town Managers Budget: Town Administration (pp. 21-23)
Mr. Hechenbleikner reviewed an unchanged budget for this area. Legal fees are the most difficult to
forecast, while property and casualty rates are unchanged for FYI 1. No changes to wages or FTEs are
anticipated in FYI I in this budget.
FY11 Town Managers Budget: Accounting & Finance (pp. 31-40)
Ms. LaPointe discussed some of the broad operating changes caused by MUNIS, and specifically how
that affected the Accounting function. The FYI I budget is exactly unchanged from FYI 0. Mr.
LeLacheur described the various portions of the Finance Department. The Board of Assessors
requested funding for outside consulting help (level #2 budget). Most of those requests will be done by
in-house staff, or be funded either in FYI 0 or as/if needed by the FINCOM Reserve Fund in FYI 1.
The Finance budget is lower in FYI I with the exception of additional elections that are scheduled.
George Hines asked if FINCOM was interested in scheduling a future executive session to review
collective bargaining matters with the Town staff, and FINCOM agreed that they would.
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FINCOM Minutes:
On a motion by Mr. Wilson, seconded by Mr. Walsh, FINCOM voted to accept the minutes from.
February 24, 2010 as written by a vote of 7-0-2 (White & West abstaining.)
On a motion by Mr. Torman, seconded by Mr. Greenfield, FINCOM voted to adiourn at
10:20pm by a vote of 9-0-0..
Respectfully submitted,
Secretary
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