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HomeMy WebLinkAbout1990-04-05 Finance Committee MinutesMINUTES OF THE READING FINANCE COMMITTEE 4/5/90 This meeting of the Reading Finance Committee was held on Thursday, April 5, 1990 at Town Hall, in the Conference Room. Meeting was delayed for order until 8:25 P.M., when a quorum participated. Members Present: Liz Greene, Acting Chairman Don Allen Charles Catalfamo Jerry MacDonald Nate White Others Present: Peter Hechenbleikner, Town Manager Marie Silvaggi, Reporter, READING CHRONICLE Tom Stohlman, representing CPDC Len Rucker, representing the Light Board Jim O'Leary, representing the Light Board John Fallon, Chairman, Recreation Commission George Hines, newly-elected Selectman Dan Emsminger I. B U S I N E S S A. Report of the Warrant a Peter Hechenbleikner passed out the articles to be discussed in booklet mr to t e Finance Committee. e All Articles were presented and then discussed throughout. e Mr. Fallon spoke on behalf of the Recreation Committee on the revolving fund and running programs to break even on expenses. ® Don Allen asked Mr. Fallon how much of the Recreation programs would be run by the Revolving Fund and the answer was half. m Nate White asked about actions of Peter Hechanbleikner and when action should take place and Peter answered to hold off a little bit. m Don Allen had a question on Debt Service and Peter Hech- enbleikner gave answers to his queries. e Light Department borrowing needs in Article 8 were ex- plained by Peter and members of the Light Department were unavailable, so Mr. Hechenbleikner suggested a wait for further questions/answers. -1- Reading Finance Committee 4/5/90 B. Presentations by Recreation Committee e Liz Greene introduced Mr. Fallon who took the floor in presentation of what the Recreation Committee stood for, what its goals had been, etc. e There was a thorough description of feelings of Per. Fallon and the whole Committee regarding cuts in the Rec budget. e Current and future offerings of the Recreation Department were discussed indepth. e New fees were talked over. e It was then requested that the Finance Committee raise the salary figure.by $2,617.00. e Here, Nate White of the Finance Board had a question regarding exactly what was left for money in "Free Cash" and it was found there were funds but the "Free Cash" was, according to Nate, in "miserable shape" at this end of the fiscal year. Here, Mr. White pleaded not to destroy the free cash fund, as it will compound the problems of the Town. Again, he reiterrated that "Free Cash" is in terrible shape. e Mr. Fallon explained $7,800 unspent salary money would be given back to the Town with fees assessed for activities. e Don Allen asked that if workloads were less for Human Services person, could that person fill in on the Recreation Commission as a possible solution. e Estimated income was gone over by Fallon again to the staff of Finance Committee. Recreation Department is generating $30-40,000 over and above what was originally estimated. e Here, Peter Hechenbldikner discussed revenues and fee levels. The $101,000 figure is comfortably conservative. ® Charlie suggested running some fund-raising events to raise the necessary salaries - perhaps a dance, a bake sale, etc. Charlie suggested personal monies could help out this Commission. Motion: Don Allen recommended reconsidering Recreation Department personal expense line and Mr. MacDonald seconded this. Vote: 2 - 3 - 0 defeated Here, Mr. Fallon thanked the Finance Committee for their time and departed after the vote to reconsider was defeated (8:55 P.M.) -2- Reading Finance Committee 4/5/90 C. Municipal Light Department Presentation by Barry Hanson Article 8 e Explanation was given regarding controversy with Wilmington and the acute space needs. There is a portable trailer at the Ash Street site. o Mr. Hanson presented a handout to the Finance Committee of the drawing of Orms/Lux property and suggested the possibility of purchasing this building and renovating this for an office building for the Municipal Light Board. The hope was to keep the small current facility on Haven Street as well. Purchase would be done by bonding funds. o Slides for presentation are not ready for this meeting. o Mr. Fallon presented alternative 4, the estimated capital costs to t e o rd. • Asking price of Orm.s/Lux Bldg .------------------$1,550,000 ® Renovate Orms/Lux Bldg.------------------------- 1,300,000 ® Renovate Service Center Storage----------------- 215,000 Subtotal----------------------------------------$3,065,000 Contingency------------------------------------- 400,000 TOTAL-------------------------------------------$3,465,000 a Intent of the Wilmington negotiations will be 1.35 million. ® Nate White questioned the money and square footage space that would be picked up. The costs are high. e Jerry MacDonald asked about the money the Town has to pay out of its pocRe-cs' ar is venture - taxpayers would be paying an increase. o Nate asked if the Light Department was out of space and the answer was a firm "yes". e Don Allen questioned the Bonding issue. ® Peter Hechenbleikner explained authorization of Debt to the Town o Reading, u a he Municipal Light Department would be good for this. a Don Allen asked if the Light Department looked elsewhere in Town to consolidate their offices and the answer was "no". Don then asked if there was any legal stricture to having a property location in another town. a Fallon answered that it would just be a risk problem if the I_-ocatro' r--s in-ano-ther Toca-n, -3- Reading Finance Committee 4/5/90 e Don Allen asked about the financial impact of Haven Street vs. Aster Street in a letter of analysis. Mr. Fallon could not comment as he had not seen the letter and Mr. Rucker concurred. he had not seen the letter as yet. • Liz Greene announced the date of April 24th as the night for the formal presentation by the Municipal Light Board. • Charlie Catalfamo_ questions Lux Building and the value of the Haven 9Tree prop- rope . • Jerry MacDonald asked if the Light Board would have the infor- mation on the formal presentation on all four alternatives. • Light Board discussion ended at 9:28 P.M. D. Presentation by Tom Stohlman of C P D C • Mr. Stohlman began his opening remarks by reciting a story of a kingdom and tradition, all because of theory. ® Mr. Stohlman remarked that C P D C was never consulted regarding their 5-udge-E-7u-T-s. • Mr. Stohlman presided for an hour and thanked everyone for listening and asked for answers other than "its tradition". • Mr. Stohlman claimed that $50,000 was taken from the Dept. He claimed this money went to the General Fund. Here Stohlman asked that the Finance Committee look at his budget sheets. • Mr. Stohlman feels very strongly that the Finance Committee still has options on this budget. • Nate commented that equating fee structures against other segments of no-fees is not a good term of thinking. Priorities are necessary and not fees and no-fees. e Tom answered that perhaps Nate was already tangled up here. Fee payers pay for the honor of going through a process of review to benefit all people of the Town. Argument invalid - you are serving everybody. • Peter Hechenbleikner clarified that fees to offset budgets was not exactly correct here. The intent is not to say self-sufficient, non self-sufficient. e Peter took the floor in explanation of numbers of lower levels of activities. Dropping off of certain activities resulted in the _ Town Manager recommending decreases in the Department of Community Development - get a joining in on other departments wherever possible. State aid, etc. is very important here. Peter thinks the budged presentee earlier. is difficult to live with in_the Communit-v-Development-are=a an_d -4- Reading Finance Committee 4/5/90 he hopes and trusts that the Town can live with this until things in the Town and State get better. o Tom stated here that revenues for the third quarter were down and that what you see consistently are third quarter numbers, which are "traditionally" low. ® Don Allen commented here that this seemed to be an issue of two people with dissenting viewpoints and Don is having a hard time with resolve. ® Tom Stohlman stated that the General Fund money accrued by "in the pocket fees" and department has done well for the Town of Reading (C P D C e Dan Emsinger from the audience took the floor and agreed that Stohlman's calculations are correct. He recommended going along with Mr. Stohlman's recommendations. ® Mr. George Hines (from the audience) took the floor and commented that the Department made a positive contribution to t'ae Town. By recommending the recommended budget, all will have inadequacies. There is enough concern regarding this that there were three Selectmen in the audience at Finance Committee this evenina. Mr. Hines asked the Committee to please consider Mr. Stohlman's budget. e Mr. Jack Rivers (audience) pointed out that the Building Inspector is n the Building Department - we have only had a Town Planner for a very few years, funded by the State of Massachusetts to have the Town Planner concept from Town to Town. We now no longer hav Massachusetts State funding for a Town Planner. So many areas do not get factored in properly. Building Department should be attributable to Police and Fire Department. a Audience participant Sally Szabo spoke of C P D C and the im- portant significance it portrayed to the Town in its planning arm. e Audience participant Bob Griffin explained the firsthand evi- dence of what the Planner has donor the entire Town of Reading. Quality to both sides was process and it worked and he opts to retain' the Town Planner. e Audience participant John Warner worked with the Planner and feels that the entire job of the Planner is a strong aid to C P D C. He feels that Homart, Pearl Street, Winchester Hospital, etc. will not a_o away. Process of approval gives a more saleable item. a Audience participant Marilyn Lambert urges Committee to under- stand the important things that C P D C does -For Town of Reading. Also cites importance of the Town Planner and Conser77ation Commissioner. A response to the needs of the Town is necessarv and she suggests that positions such as these do keep Reading from being the "Chelsea of Route 128". ® Audience participant Ed Leeman echoed supoort -5- Reading Finance Committee 4/5/90 o Hope Begosian from the audience, a Bear Hill area resident, spoke of urging consideration for C P D C. e Lynn Langman, President of the League of Women Voters spoke in favor 6-f keeping a Town Planner and a Conservation Administrator. e Ms Langman asked what kind of Town we would see in the future if we did without these two vital positions. e George Shannon voiced his support for C P D C, and indicated Mr. Stohlman's figures seem realistic. o Steve Chapman echoed his support of C P D C. Mr. Chapman is a professional engineer who indicated that projects run smoother with a professional Planner on the Board. Impressed with Jonathan Edwards and the work he has done in the past. e Sally Hoyt spoke in support of Town Planner and Conservation Administrator. ® Nate White spoke and asked if we are willing to get rid of three teachers to fund for a Town Planner - the Town of Reading must now make trade offs! ® Liz Greene stated monies will not be taken out of another budget. ® Don Allen/Option One: Increase Revenue Estimate Option Two: Increase CPDC budget and take out of Free Cash Option Three: Increase CPDC and take out of another budget. w Tom Stohlman here indicated that explanations were coven so as not to take anything out of anyone's hide. Proposal does not take out of anyone's hide. Motion: Don Allen moved to reconsider C P D C personal and non- personal budget and Mr. MacDonald seconded this motion of reconsideration. Discussion: Peter Hechenbleikner commented that only five members of the Finance Committee are present at this meeting. George Shannon clarifies budget estimation in discussion. Vote: 4 - 1 - 0 approved for reconsideration. o Don Allen sets operational modes necessary. ® Marilyn Lambert from. the audience discusses dilemna at this time. v Nate White claimed he is actually "scared" on revenue estimates - must be--addressed -now--accordincr-_to Mr_._ White. -6- Reading Finance Committee 4/5/90 ® Nate White asked whether or not Tom Stohlman disagrees with Peter Hechenble ki ner. e Peter Hechenbleikner commented on the estimate information of the revenues is important. Proof to the State of Massachusetts of esti- mation of the revenues. e Tom Stohlman gave estimation of range of yearly fee estimates. e Jack Rivers from the audience talked re: third quarter data and asked whether the Town of Reading has additional monies and do the Townspeople need a Planner anyway. He indicated that these were two separate entries. e Nate White asked when the Special Town Meetinq would be taking place. e Liz Greene indicated that the Town Meeting was April 26th. e George Hines asked for explanations of devising budget presented by Town Manager Hechenbleikner. e Peter Hechenbleikner gave his approach to the task of the budget. e George Hines then asked if any of Mr. Stohlman's figures agree with the Town Manager's figures. e Peter Hechenbleikner indicated that less than half in Bui.ldina Permits - tail end of the line in level of concern of activity in FY91. More comfortable using $115 - $125,000 estimate and Peter indicated that there is no magic science to this - projections are very difficult to come up with here. e Tom Stohlman suggested it was all a matter of attitude - optimism/ pessimism. e Liz Greene here asked for a motion on the floor. Motion: Don Allen moved to approve C P D C Conservation... Personal budget in the amount of $27,307 and Mr. MacDonald seconded. Discussion: Nate White wants to address this budaet. Tom Stohlman goes over each line item for the Finance Committee. Vote: 1 - 3 - 1 defeated with Mr. MacDonald abstained Motion: Don Allen moved to approve $43,154 and Mr. MacDonald seconded. Vote: 1 - 3 - 1 defeated with Mr. MacDonald abstained Motion: Don Allen moved to approve Zonina Board hudaet for personal services- in -the amount of $-1,10-0 - .nO nor. "T°acDona.ld-seconded-. Vote: 1 - 3 - 1 defeated with Mr. racDonald abstained Reading Finance Committee 4/5/90 Motion: Don Allen moved to approve Historical Commission non- personal budget in the amount of $1,000 and Mr. MacDonald seconded. Vote: 2 - 2 - 1 not carried with Mr. MacDonald abstained Motion: Don Allen moved to approve Inspec. Division personal services budget in the amount of $53,586 and Mr. MacDonald seconded. Vote: 1 - 3 - 1 defeated with Mr. MacDonald abstained Motion: Don Allen moved to approve General Department personal service! budget in the amount of $62,210 and Mr. MacDonald seconded. Vote: 4 - 1 - 0 approved Motion: Don Allen moved to approve General Department non-personal budget in the amount of $5,400 and Mr. MacDonald seconded. Vote: 4 - 1 - 0 approved. ® Here, acting Chairman, Liz Greene moved the meeting along. ® Tom Stohlman asked Peter Hechenbleikner if the plan had changed from the previous plan - why fund Engineer in D P W when you could have someone all the time in C P D C? e Opportunity to have discussion on Tuesday was suggested by John Milano. Motion: Mr. MacDonald moved to approve $62,210 in C P D C budget be spread out on line items. Don Allen seconded this. Vote : 5 - 0 - 0 approved II. A D J O U R N M E N T o Mr. MacDonald moved to adjourn the evening's meeting at 11:30 PM and Donald Allen seconded this motion. The meeting was then adjourned. Resp ctfully ubmitted, T174r Sue Finn, Secretary Reading Finance Committee l /sf