HomeMy WebLinkAbout1991-06-10 Finance Committee MinutesTOiyf CLERK
MINUTES OF THE READ111G, INIASS
READING FINANCE COMMIT EZ8 9 DS All v9I
DUNE 10, 1991
This meeting of the Reading Finance Committee was held at
Reading Library in the Conference Room. This meeting was
called to order by Chairman Bill Burditt and was planned
to hear from the Reading Taxpayers Association pertaining
budget for the Town.
MEMBERS PRESENT:
OTHERS PRESENT:
1. BUSINESS
Bill Burditt, Chairman
Liz Greene, Vice Chairman
Nick Agneta
Pete Dahl
Gerry MacDonald
Fred Van Magness
Nate White
the
in order
to the
(arriving 8:03 P.M.)
Peter Hechenbleikner, Town Manager
Maria Silvagi, Reporter, READING CHRONICLE
A. Opening Welcome Speech by Chairman Bill Burditt
s Chairman Burditt opened this meeting of the Reading
Finance Committee by calling the meeting to order at 7:32 P.M.
• In welcoming remarks to the Townspeople and the
Reading Taxpayers' Association, Mr. Burditt voiced his wish to
have had this type of attention at the 14 budget review meetings
that had been held previously. Mr. Burditt suggested that had
the Finance Committee had a showing of interested individuals
from the Town at these budget meetings that perhaps tonight's
meeting would not.have been necessary, also that a Special Town
Meeting would not have been necessary because all the facts of
content of the budget would have been known by all of the
citizens of the Town of Reading. Had people come forth earlier
and had mutual discussions with the Finance Committee at their
budget reviews, the Town could have saved $8,600 and many
volunteers many hours of work by sifting through the processes
together during the budget meetings scheduled by Finance
Committee.
• Mr. Burditt explained that he has been Chairman of
this committee for the past two years and has requested citizens
to come to the meetings and participate openly in the
discussions. All comments would have been considered that would
have been made by those who attended.
• Bill further explained that the Finance Committee's
responsibility regarding the budget is to review the balanced
budget presented to them by the Town Manager, and after a
detailed review, make any adjustments determined to be made, and
to recommend a budget to Town Meeting.
• The Chairman stated that the Finance Committee had
done their job, but now they are back to do it again because less
than 20% of the registered voters did not approve of the budget
voted by Town Meeting.
• Mr. Burditt does not understand what townspeople do
not approve of at this time. Is the budget high? Is the budget
too low?
• As for not approving the payment of the Town's debts,
Bill said he did not know what the Finance Committee should do.
These are obligations that have already been incurred. This
situation could be likened to not paying the mortgage on your
home.
• Bill further stated that the Selectmen have voted the
same budget that Town Meeting voted because they did not have any
new information to consider, and now it was the Committee's turn
( to vote a budget to recommend to Town Meeting.
• The Finance Committee has reviewed this budget in
detail and will be looking for new information.
• Clearly, Mr. Burditt asked the group appearing this
evening if anyone had input to present.
• Bill asked to keep the meeting non-adversarial, if
possible. No personal accusations should be allowed at this
meeting.
B. Presentation, Ken Little, Chairman, Reading Taxpayers
• At this point in the meeting, the members of the
Reading Taxpayers Association had given a hand-out preparation of
a report of improvements to the FY 92 Budget for the Town. And,
Mr. Ken Little took the podium in explanation of this report to
the Reading Finance Committee.
• Mr. Little indicated that this group was established
in 1990 working for the homeowners. The group highlighted the
following: quality schools, elderly care, protection of property
values.
• Mr. Little talked about the,budget process of the
Finance Committee and mentioned that things seemed to be going
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along fine until reasoned arguments for reducing costs were
irrationally turned down.
a Mr. Little explained the feelings of concern of
forecasted budget. Downsizing, restructuring and redeveloping is
necessary, according to Mr. Little and the Reading Taxpayers
Association.
® Little indicated that taxpayers are nervous about the
way we are doing things now in Reading. Mr. Little delved into
the economic factors:
e Real estate has fallen 5 - 10%.
• Assessors' Office shows fall of value of properties.
e Unemployment rates in Reading are higher than usual
(7.2% plus).
a Employees of the Town and the School Department expect
increases in pay and benefits through all of this.
• In further discussion, Mr. Little explained his
meanings of the economic factors that the taxpayers would prefer.
® Downsizing means reducing the total costs of living in
Reading substantially.
® Restructuring means combining or eliminating marginal
functions for 1991-1993 and on.
o Redirecting means new assignments for accomplishing
modern missions.
® After Mr. Little spoke of. his portion of the
presentation, Chairman Burditt suggested that before other
speakers began, questions and answers would follow.
® Bill spoke of Question #2 on the ballot for Special
Election.
e Bill spoke of salary increases and there being none.
Also mentioned was decrease of benefits.
® Mr. Burditt stated that people should have called him
as a Finance Committee member if voters wanted to be heard. Bill
has a published telephone number for all people who need to
contact him for any information at any time.
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Y Mr. Little now asked if downsizing had been
accomplished, if restructuring had been accomplished, and
redirection.
® Here, Chairman Burditt indicated all of the above
had been accomplished.
o Mr. McMillan, who stood up against the Finance
Committee's budget, had incorrect information according to
Burditt in explanation of the list of budget numbers. Bill does
appreciate all Mr. McMillan did, but he had incorrect figures.
® John Price of the Reading Taxpayers' Association
spoke of the fact that if figures were incorrect, it was no fault
of Mr. McMillan because he had poor resources for his
information.
® Here, Chairman Burditt indicated that he would have
helped secure correct budget figures to Mr. McMillan if asked.
® Again, here, Mr. Little took the floor and asked
about what downsizing had been accomplished.
s Bill maintained that he wanted the quality of life
( in Reading that has always been, he wanted to maintain the value
of his home as well as all the other properties in the Town.
e The $684,000 tax levy was brought up by Mr. Little
and Bill further explained his downsizing and reducing of
services.
® Pete Dahl, Committeeman, asked Mr. Little how many
people are in the Reading Taxpayers' Association and Mr. Little
replied that there were 47 members.
• Here, Mr. Dahl asked the question why had this group of
people not involved themselves in the budget process with the
Finance Committee:
• Mr. Dahl indicated that he had no input from the
Reading Taxpayers' Association during the budget meetings held by
the Finance Committee held each week.
• Debate between Mr. Dahl and Mr. Little including Mr.
John Price ensued.
® Fred Van Magness of the Finance Committee discussed
the document presented and asked for specifics regarding the
information on increases.
® Mr. Van Magness had a sale of real estate funds
comment and discussed judgement calls and sources of information
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of the Taxpayers' Association on pre-bankruptcy warning
evaluation - and missing facts completely.
o Mr. Van Magness wants to deal strictly in facts and
discussed the evaluation of FY 93 made by Mr. Little.
• Little here explained the insert notice to the
Townspeople in attendance.
® Mr. Van Magness and Sohn Price debated the water and
sewer transfer issue.
® Paul Morris of Precinct 8, asked to be recognized by
the body this evening and commented and expressed opinions.
Mr. Morris indicated that he had not attended any of the Finance
Committee meetings because of surgery. Mr. Morris indicated that
he did not want to question the budget, just wanted to question
attitudes and discussed the Democratic process. Indicating that
as a citizen in Reading since 1964, he had attempted to keep up
with the information and sees no reason for officials to tell the
Reading taxpayers that taxpayers are wrong not to want to pay for
these extra taxes.
e Further along in Mr. Morris' discussion he discussed
special election and the fact that he resented being told by
elected officials that Townspeople are wrong in this.
e Bill Burditt indicated that the majority of the Town
did not vote down the budget, only 20% of the voters voted.
o Mr. Morris interjected that the Special Election was
not properly publicized.
® Here, Peter Hechenbleikner, Town Manager of the Town
of Reading, took the floor in explanation and clarification of
his letter to the editor of the Reading Chronicle. Peter
discussed the minimum wage law and money necessary for the
Special Election. Cable TV publicized on Channel 25 the date for
the Special Election, so the communication to the people was made
via television.
C. Mr. Richard Dulong/Reading Taxpa.yers.Association
• Mr. Dulong expressed the involvement from the
taxpayers' standpoint. He explained watching the budget come
along during the Finance Committee meeting months. The decision
to question the budget was made after the budget was presented.
• Mr. Dulong explained that the problems around such
as unemployment, foreclosures on real estate, etc. made it clear
to the Reading Taxpayers that restructuring was in order for
survival.
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® Line item numbers were discussed by Mr. Dulong and
reductions were cited from Line Item 10-120. Grand total
proposed reduction was $1,321,604.
D. John Price/Reading Taxpayers' Association Presentation
® At this point in the meeting, Mr. Dulong turned the
meeting over to John Price.
e There was discussion in this segment regarding the
Fire Department ladder truck and ambulance and the fact that
perhaps holding off on bids until Fall Town Meeting was the best
thing to do here.
e Mr. Price went on to ask Chairman Burditt about the
clean-up costs at TASC and what it has cost the taxpayer.
® Mr. Price indicated that the Town is to be run like
a business - taking salary decreases and losing jobs. Mr. Price
felt that the Health Department was "heavy" and suggested
decreases.
o Don Ensminger of the Board of Selectmen asked question
regarding the trash situation of Mr. Price.
® Here, however, Bill Burditt suggests starting from
( the top of the suggested list by the Taxpayers' Association.
Line 87/Rubbish
® John Price indicated a further budget reduction
should be made of $584,000.
® Mr. Van Magness asked for definite facts and
discussion ensued between the two.
® Peter Hechenbleikner interjected input involving the
spending of less money to recycle.
o Mr. Van Magness directed question to Mr. Price
regarding what specifics can be offered and Mr. Price offered the
review of the sheets for the information.
• Mr. Van Magness asked if the Library records were
readily available for any information and Mr. Price indicated
that-they were available.
• Peter Hechenbleikner indicated that there is a
charge for producing records and it is legal. Mr. Hechenbleikner
mentioned that fact that John Prtice was in need of a large
amount of copy work and that Mr. Hechenbleikner is not hiding any
information regarding this issue. It is legal to charge a
certain fee for reproduction of records.
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e Further discussion between Van Magness and Price
regarding discrepancies.
• Nate White asked Mr. Price how much money is
necessary for pass-through costs.
® Mr. Price talked of tracking record and best
estimates based on best professional advice attained.-
* Peter Hechenbleikner entered this conversation and
claims the pass-through costs will be due (according to the State
Auditor's office). RESCO has completed the work and, in
accordance with the contract, there will be a pass-through cost.
v Sources of information sought by Mr. Van Magness at
this time and Mr. Price assures him he will telephone him with
information on Tuesday morning.
• Liz Greene asked about reduction reasonings.
e Mr. MacDonald from the audience took the floor and
sees no rationale on savings specifics and he is terribly
frustrated.
® Here, at 9:45 P.M. a recess was called by Chairman.
E. Second Half of Taxpayers/Finance Committee Meeting
t At 10 P.M. the second segment began.
o Mr. Burditt asked Mr. Price for a final statement.
® Mr. Price asked for consideration of taking out the
pass-through until September because the pass-through may not go.
• Tax rate certifications were discussed between Bill
Burditt and Price.
® Price. indicates the budget was overstated and could
have been given back to the taxpayers.
e Mr. Van Magness reminded him there is no extra money
to go elsewhere.
• Mr. Price talked more on pass-through costs
appropriation and overestimations to be used to possibly give
back to the taxpayer. and Peter Hecnenblei.kner indicated the tax
rate is set in November/December.
F. School Department Discussion
• Mr. Price indicated the importance of quality
education and wants to see some of the top management gone and
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have some of the money go back to the children. Those
administrators who make over $40,000, it was suggested by Price,
would have a give-back policy-of .5%. Level funding teachers
aides salaries was discussed. Mr. Price wants to put money back
in the budget to fund buses for K-5 children.
• Here, Mr. MacDonald from the audience again takes
the floor and discussed the school department budget
considerations that taxpayers are opting to cut. He indicated
little expertise of the Reading Taxpayers Association in allowing
for school cuts made, simply, by people who "do not understand
the specific jobs in the schools". Mr. MacDonald gave the
audience a brief but interesting scenario of his background in
the education field and the field of endeavor he now occupies in
business. His participation was for approximately 12 minutes.
® Mr. Van Magness discussed fiscal 91 and 92 budget
numbers in comparison with the figures of Mr. Little and Mr.
Dulong.
• Mr. Steve Thomasis from the audience talked of
health cut proposals by the Reading Taxpayers' Association and
suggested that the RTA learn more about the areas of cuts and the
jobs of the Human Services Department.
F. Line 118: Employee Benefits
m Mr. Price talked of reductions to keep in line with
the private sector.
G. Line 120: Workers' Compensation Administrators
® Peter Hechenbleikner explained here that the fee the
Reading Taxpayers' Association would like reduced would "just not
work". The money would not be enough for this fund. State law
changes may pass and yield more money. And here, Peter spoke of
Line 118 and Employee Benefits and the health budgets.
9 At this point in the meeting between. the Finance
Committee and the Reading Taxpayers' Association, Mr. Price
discussed the submittal of representative items in the FY92
budget that the RTA feels needs immediate addressing for the main
purpose of further reduction in expenses of operating the Town of
Reading. The list is as follows:
1.
Line
item
10:
Inspection Division (Building Inspector)
2.
Line
item
12:
General Department (Town Planner)
3.
Line
item
17:
Assessment division (Elected Off.)
4.
Line
item
27:
General Department (Finance Dept. Hd.)
5.
Line
item
30:
Personal Service (Town Manager)
6.
Line
item
31:
Non-Personal Expenses (auto allowances)
7.
Lines
32
and
33: Law division (Town and Labor Counsel)
8.
Line
item
36:
Personnel Division (Non-Personal Expense
9.
Line
item
48:
Elder Services (Thanksgiving Dinner)
8
10.
Line
item
53:
Recreation (Transfer to Revolv. Fund 24)
11.
Line
item
56:
General Department (Health 1/2 Salary)
12.
Line
item
58:
Library (Pers. Serv. - 5%
13.
Line
item
60:
Police (Personal Serv. Chief -5%
14.
Line
item
65:
Fire/Emerg. Mgt. (Fire Chief - $2,985
and
remove
Emergency Mgt. $2-480).
15.
Line
item
71:
General Department (Uniform Allowance)
16.
Line
item
75:
Engineering (Pers. Serv 5% Asst. Dir.
Eng.
Salar
ies)
17.
Line
Item
77:
Admin.
18.
Line
item
79:
Hwy. Maint.
19.
Line
item
79:
Hwy. Waint.
20.
Line
item
87:
Rubbish
21.
Line
item
89:
Parks/Forestry
22.
Line
item
96:
Equip Mnts.
23.
Line
item
101:
Snow/Ice Removal
24.
Line
item
109:
School Department
25.
Line
item
118:
Employee Benefits
26.
Line
item
120:
Workers' Compensation
Grand Total Proposed Reduction is $1,321,604
e Peter Hechenbleikner made commentary on each line
item and how the money was determined.
® Nate White asked the Reading Taxpayers Association
where they get their figures and explanations were given by john
Price.
® Gail Wood from the audience spoke and included
remarks about the Reading Taxpayers' Association budget
possibility vs. the Finance Committee budget.
II. NEXT MEETING
® Bill Burditt announced a meeting on Wednesday, dune 12 in
the Selectmen's conference Room of Town Hall at 7:30 P.M.
a After announcement of the next meeting time and date, Liz
Greene spoke of the comment made by Mr. Little regarding the
Finance Committee "sliding over" budget lines. Ms. Greene
announced that she was highly insulted with the remark.
III. ADJOURNMENT
Bill Burditt aadjou nd m eeting 11:53 P.M.
ctfully s mitted,
~Recording Clerk
Reading Finance committee
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