HomeMy WebLinkAbout2007-09-19 RMLD Operating and Capital Budget Pension Legal Services Subcommittee Minutes0
Reading Municipal Light Department Board of Commissioners T' J N C L E R K
Operating and Capital Budget/ Pension/Legal Services Subcommittee ! IN A j
September 19, 2007
L' 5
Start Time of Regular Session: 7:35 p.m.
End Time of Regular Session: 9:35 p.m.
Attendees:
Subcommittee Members: Messrs. Hahn, Pacino, and Ms. O'Neill
Commissioners: Ms. Kearns and Mr. Soli
RMLD Staff: Messrs. Cameron and Fournier
Chairman Hahn called the meeting to order at 7.35 p.m.
Mr. Hahn asked Mr. Fournier to explain the matter of the transfers that needed to be discussed.
Mr. Fournier explained that the first transfer reflects withdrawing $1,146,823 from the Rate
Stabilization Fund (RSF), which would leave approximately $6.2 million in the RSF. The second
transfer of $2,053,128 represents an amount equal to the allowable 8% return and includes the RSF
transfers, 2007 Net Income, and adjustments for the Return to the Town of Reading, Bond
Payment Principal, and Interest Income.
Chair Kearns asked Mr. Cameron what the downside of this transaction was. Mr. Cameron
replied that there isn't a downside because the RMLD is getting its internal money to pay for the
capital programs.
Chair Kearns then asked Mr. Pacino what the risks were from doing such a transaction? Mr.
Pacino replied that he didn't see any risks. Mr. Cameron agreed.
Mr. Hahn made a motion seconded by Ms. O'Neill that the Operating and Capital Budget/
Pension/Legal Services Subcommittee recommend to the RMLD Board of Commissioners that a
transfer of $1,146,823 from the Rate Stabilization Fund to the Operating Fund and that a transfer
of $2,053,128 from the Operating Fund to the Construction Fund be made and be reflected in the
June 30, 2007, audited financial statements.
Motion passed 3:0:0.
Mr. Fournier then made a presentation on the RMLD's Financial Statements. Mr. Fournier went
line-by-line and page-by-page explaining the June 30, 2007 Financial Statements to the
subcommittee and the other attendees.
Discussion ensued during the presentation.
Chair Kearns thanked Mr. Fournier for his presentation.
Motion to Adjourn
At 9:35 p.m. Mr. Pacino made a motion seconded by Ms. O'Neill to adjourn the meeting.
Motion carried by show of hands 3:0:0.