Loading...
HomeMy WebLinkAbout2010-03-24 Finance Committee MinutesOFR(.4 Finance Committee Meeting March 24, 2010 sJSr,NoR4~` Conference Room, Reading Town Hall The meeting convened at 7:30 PM in the Conference Room of Town Hall. FINCOM Members Present: George Hines, Bryan Walsh, David Greenfield, Barry Berman, Kevin Leyne, Marsie West, and Harold Torman Members Absent: Tom White and Mathew Wilson Also Present: Town Manager Peter Heckenbleikner, Assistant Town Manager/Finance Director Bob LeLachuer, Community Services Director Jean Delios, and DPW Director Jeff Zager. Selectmen Rich Schubert joined the meeting at 9:00 PM. There being a quorum the Vice Chair called the meeting to order at 7:35 pm. Public Comment: No comment. Annual Town Meeting Warrant Articles: Mr. LeLacheur explained the changes made to Article 4 which includes the actual amounts for the capital improvement projects to be added to the Capital Improvement Program (CIP). The library building feasibility study was initially expected to be $75,000 but has increased by $10,000 because a construction manager is needed for the study. Therefore, the total cost for the library feasibility study is $85,000 for FY10. Mr. LeLacheur also reviewed the net cost for the emergency lifepak defibulators which is $27,000, the estimate for the Killam School paving is $83,000 when performed mostly in house by DPW under option 1 and option 2 is $139,500 when all work will be performed by contractors. Article 4: On a motion by Mr. Greenfield, seconded by Ms. West, FINCOM voted to accept Article 4 as written by a vote of 7-0-0. Mr. Greenfield volunteered to write the report. Article 5• On a motion by Ms. West, seconded by Mr. Walsh, FINCOM voted to accept Article 5 as written by a vote of 7-0-0. Discussion: Mr. LeLacheur explained that the $20,000 savings in the Finance Wages (line 191) is due to the vacancy of the Appraiser position. The $4,000 increase in expenses in K92 for Community Services Expenses is because of the cost to trap and remove the beavers that were causing damage. Mr. Torman volunteered to write the report. 1 Article 7: Items listed under Article 7 are those that are not being replaced in the CIP and are proposed for disposition and do not have a value in excess of $5,000. Ms. West asked what happens to these items. Mr. Hechenbleikner explained that they are typically traded in or then auctioned off. Mr. Walsh asked where the money goes after we trade in or auction off these items. Mr. Hechenbleikner said the money goes into free cash. On a motion made by Mr. Berman, seconded by Mr. Greenfield, FINCOM voted to accept Article 7 as written by a vote of 7-0-0. Mr. Torman will write the report. Article 8: Mr. Hechenbleikner explained that Article 8 is to authorize the revolving funds for certain town departments which must be renewed each fiscal year. The Conservation Consulting Revolving Fund was not used last year but is necessary to pay for consulting fees to review plans and all money not used is returned to the Applicant. The Inspections Revolving Fund pays for plan reviews and inspections and was created during a time when Reading was experiencing a lot of development and we needed the extra support. Two staff positions have been pulled from this fund but this fund is still needed for when development activity increases. Ms. West asked if all staff positions are out of the revolving funds. Mr. Hechenbleikner said that there are no more positions funded out of the revolving funds and continued to explain the funds for each department. The Health Clinic Revolving Fund pays for clinic vaccines, supplies and staff salaries allowing residents to receive the vaccines at no cost. On a motion made by Ms. West, seconded by Mr. Walsh, FINCOM voted to accept Article 8 as written by a vote of 7-0-0. Ms. West to write the report. Article 10: Article 10 allows Chapter 90 funds to be used for road improvements. Mr. Torman pointed out that the last sentence under background should be removed because we have learned the exact amount. On a motion by Mr. Greenfield, seconded by Ms. West, FINCOM voted to accept Article 10 as amended by a vote of 7-0-0. Mr. Leyne to write the report. Article 11: Article 11 was placed on the Warrant by petitioners to add $25,000 back into the FYI I budget snow removal/plowing for church parking lots. Mr. Hechenbleikner~explained that the Town has removed snow from some church parking lots for many years but this service was not included in the FYI I budget. Mr. Berman asked if any other non-profit organizations in Town received the same service.. Mr. Hechenbleikner explained that churches are the only non-profit that has benefited from this service while there are many similar non-profit agencies that have not had the Town remove snow from their lots. Mr. Berman suggested plowing for churches and charging them at a discounted rate. Mr. Walsh 2 also asked if there was any other way to continue the service at a subsidized rate. Mr. Greenfield felt this was a financial issue and this is an expense that the Town can not afford right now.. Mr. Torman made a motion, seconded by Mr. Greenfield, to accept Article 11 as written. FINCOM voted to disapprove Article l l as written by a vote of 1-6-0. Mr. Hines voted in favor and 6 members voted against the Article. . Mr. Walsh to write the report. Article 9: To see if the Town will vote to approve the FYI l-FY20 CIP with the additional items including the Killam School parking lot paving and excluding the new library & Birch Meadow School windows. Mr. LeLacheur direct FINCOM to page 14 of the meeting packet which details what FINCOM is voting on in Article 9. There is a~net increase of $44,352. Page 16 of the meeting packet shows the Capital Plan from FYI 0 to FY20. Mr. Berman asked if there were any policies as to how and when the CIP items are taken up.. Mr. Hechenbleilner explained that items are carefully evaluated and planned so that the Town is not purchasing all new DPW equipment at the same time. On a motion made by Mr. Greenfield, seconded by Mr. Walsh, FINCOM voted to approve Article 9 as written by a .vote of 7-0-0. Mr. Hines to write the report. FYI1 Budget On a motion made by Mr. Berman, seconded by Mr. Torman, FINCOM voted to approve the budget line items B99 (Benefits) through V99 (Town Facilities) listed on page 14 of the March 24, 2010 meeting packet by a vote of 7-0-0. Discussion: Mr. Berman asked how much the town has left in free-cash? Mr. LeLacheur answered that we have approximately 7 or 8% remaining in free-cash. Mr. Walsh asked about the status on the vocational school budget noting that there was a lot of discussion over the last several months. Mr. Hechenbleikner responded that their budget is the lowest allowed and what they are asking for. Mr. Hines to write the report. On a motion by Mr. Greenfield, seconded by Mr. Torman, FINCOM voted to accept budget line items W99 (Water Enterprise Fund) through Y99 (Storm Water Enterprise Fund) by a 'vote, of 7- 0-0. Mr. Hines to write the report. Article 13: To see if the Town will vote to accept the local meals tax for a rate of .75 percent for a restaurant meal. The FINCOM put this back on the Town Meeting Warrant and the Board of Selectmen did not approve this article. Members of the FINCOM discussed the reasoning behind voting this onto the Warrant 3 after if was not approved at Subsequent Town Meeting in November. Ms. West states that the extra revenue generated from the meals tax would help the Town next year and may be able to save future services from being cut. The discussion in the fall was less about services being cut and now that the community is feeling the impact its time to rethink the meals tax. Mr. Greenfield noted that the Town is experiencing a revenue shortfall that we are temporarily funding with free-cash but we need another way to maintain the services. Mr. Berman pointed out that in the fall many Town Meeting Members were hesitant to pass the meals tax because they were not certain the money would be returned to the community from the state but now 73 municipalities have taken advantage of the local meals tax and the money is going back into the communities.. Mr. Hines did not feel this was a good solution to the revenue problem. One FINCOM member asked the Town Manager to see which of Reading's neighbors have adopted the meals tax and which ones are considering it again this spring to see if Reading's businesses would loose business to other towns. Mr. Walsh asked when this tax could be repealed if this is adopted and then feel we no longer need it after the economy turns around. Mr. Hechenbleikner answered that it can be repealed after 3 years. The Committee had a discussion about the possibility of a future override and how this tax could influence it. On a motion by Ms. West, seconded by Mr. Greenfield, FINCOM voted to accept Article 13 as written by a vote of 6-1-0 with Mr. Hines voting against. Mr. Berman & Ms. West to write the report. Mr. Shubert of the Board of Selectmen joined the meeting at 9:00 PM. Article 14• To see if the Town will vote to change the name of the Gateway Smart Growth Zoning Incentive Payment Stabilization Fund to the Smart Growth Zoning Incentive Payment Stabilization Fund to allow it to include the money from the recently adopted Downtown Smart Growth District. On a motion by Mr. Walsh, seconded by Mr. Greenfield, FINCOM voted to approve Article 14 as written by a vote of 7-0-0. Mr. Greenfield to write the report. Article 15: To see if the Town will vote to adopt a change to the income, asset and age limits for certain elderly tax exemptions. Due to the economic times the Town has seen an increased need to provide elderly tax exemptions. A chart in the Warrant shows that this change will make Reading more in line with neighboring communities. On a motion by Mr. Berman, seconded by Mr. Walsh, FINCOM voted to support Article 15 as written by a vote of 7-0-0. Mr. Berman to write the report. 4 Article 16: Authorizes the Town Manager to enter into contracts dealing with rubbish and recycling for a time greater than 3 years but not to exceed 20 years. On a motion by Mr. Walsh, seconded by Mr. Leyne, FINCOM voted to accept Article 16 as written by a vote of 7-0-0. Mr. Walsh to prepare the report. Article 17: Article 17 establishes a permanent trust fund for a scholarship fund and a support fund to be used as an annual scholarship for a Reading student who plans to enter a profession that helps senior citizens such as medicine or social work. Mr. Berman asked who administers the funds and gifts. The Town Manager explained that there is the Commissioners of Trust Funds and the Reading Scholarship Foundation would distribute the gifts. On a motion by Mr. Torman, seconded by Ms. West, FINCOM voted to accept Article 17 as written by a vote of 7-0-0. Mr. Leyne to write the report. Article 18: Article 18 establishes the Pat Schettini Memorial Scholarship Fund. On a motion by Mr. Greenfield, seconded by Mr. Leyne, FINCOM voted to approve Article 18 as written by a vote of 7-0-0. Mr. Torman to write the report. Article 19: This article creates a new Downtown Improvement and Events Trust which can accept donations that will be reinvested into the downtown for things such as physical downtown improvements, promotions and community events. After 20 years the Selectmen will review this Trust to see if it should be continued. Mr. Torman asked how staff will manage this fund and if it will be a lot of additional work. The Town Manager said it will be managed by the Trust of Commissioners under the general direction of the Economic Development Committee and the Town Manager handling many of the day to day activities. On a motion by Mr. Walsh, seconded ,by Ms. West, FINCOM voted to accept Article 19 as written by a vote of 7-0-0. Ms. West to prepare the report. Article 20• This is to transfer money which has been previously appropriated at Annual Town Meeting in 2007 to borrow money to complete the California Road sewer project but is not longer needed. 5 On a motion by Ms. West, seconded by Mr. Torman, FINCOM voted to accept Article 20 as written by a vote of 7-0-0. Mr. Wilson to write the report. Article 23: This article was placed on the Warrant by citizen petitioners that states that any tax rejected by Town Meeting can not be brought back before Town. Meeting for a period of 18 months. Mr. Greenfield stated that he did not support this article. On 'a motion. by Mr. Berman, seconded by Mr. Walsh, FINCOM voted 0-7-0 to support Article 23 as written. FINCOM voted against this article. Ms. West to prepare the report. Reserve Fund Transfer Request The Town Manager asked FINCOM for a reserve fund transfer for a contingency fund for the Memorial Park project. The Town received a very generous donation to the Memorial Park project contract costs but no contingency and $29,000 is needed. The Town Manager also asked FINCOM for a reserve contingency fund from the reserve funds for $10,000 for the Mattera Cabin. We are not paying for the labor because we have students from the vocational school providing the work and have applied for a few more grants but would like to have the $10,000, as a safety to continue to purchase the materials. On a motion by Mr. Berman, seconded by Mr. Leyne, FINCOM voted to transfer $29,000 from the FINCOM reserve funds for the Memorial Park contingency fund by a vote of 7-0-0. On a motion by Mr. Greenfield, seconded by Mr. Walsh, FINCOM voted to transfer $10,000 to the Mattera Cabin contingency fund from the FINCOM reserve funds by a vote of 7-0-0. Mr. Hines requested a spending report on these two projects. Approval of Minutes: Remove the typo on the bottom.of the first page of the minutes. On a motion by Mr. Walsh, seconded by Mr. Greenfield, FINCOM voted to approve the minutes from March 10th as amended by a vote of 5-0-2 with Ms. West & Mr. Hines abstaining. Mr. LeLacheur will cancel next week's meeting scheduled for the 31St. All reports on the Warrant Articles are due by April 1St On a motion by Ms. West, seconded by Mr. Torman, FINCOM voted to adjourn at 9:45 PM by a vote of 7-0-0.