HomeMy WebLinkAbout2010-09-15 Board of Selectmen Minutes Joint Meeting of Board of Selectmen, Finance Committee,
School Committee and Board of Library Trustees
September 15, 2010
The meeting convened at 7:00 p.m. in the Conference Room of the Reading Public Library, 64
Middlesex Avenue, Reading, Massachusetts. Present were Finance Committee Chairman Marsie
West, Vice Chairman David Greenfield and Members Mark Dockser, Bryan Walsh, Barry Berman,
Kevin Leyne and Francis Fardy. Also present were Town Manager Peter Heckenbleilmer, Assistant
Town Manager/Finance Director Bob LeLacheur, Board of Selectmen Chairman James Bonazoli,
Vice Chairman Camille Anthony and Selectmen Richard Schubert, Ben Tafoya and Stephen Goldy,
Superintendent of Schools John Doherty, EDC Member Russ Graham, Matt Casey (Reading Patch),
Board of Library Trustees Vice Chairman Richard Curtis, and Members Vicki Yablonsky and
Cherrie Dubois, Library Director Ruth Urell, Principal Patty de Garavilla and Director of Human
Resources and Finance Mary DeLai (School Department), School Committee Chairman Chris
Caruso, Vice Chairman Chuck Robinson and Members Karen Janowski, David Michaud and Hal
Croft, School Committee Student Representative Jared Beanlieu, Fire Chief Greg Burns, Police
Chief Jim Cormier, Public Works Director Jeff Zager, DPW Business Administrator Jane Kinsella,
Town Accountant Gail LaPointe, Town Meeting Member John Arena, Bill Brown.
There being a quorum, the Finance Committee Chairman called the meeting to order at 7:09 p.m.
The Chairman of the Board of Selectmen called their meeting to order,.the Chairman of the School
Committee called their meeting to order, and the Board of Library Trustees called their meeting to
order at 7:30 p.m.
Finance Committee Chairman Marsie West gave opening remarks and introduced, everyone to the
first Financial Forum of the budget year.
The Assistant Town Manager reviewed the budget calendar noting that there will be three financial
forums this year(September 15th, October 27th and January 27th). The School Committee's Budget
meetings are also shown on the meeting handout. The Assistant Town Manager explained the
budget process. Generally, the financial forums are held earlier in the year in the Fall and Winter
while the Finance Committee begins meeting at the end of February or early March to prepare the
Budget for the Annual Town Meeting in the Spring. The Town Manager's Budget is finalized in
February.
Discussion/Action Items
Revenues: Current Estimates - Town Accountant Gail LaPointe reviewed Reading's reserve funds.
She explained the existing reserves held in stabilization funds shown on Page 4 of the handout. The
Town has several stabilization funds that include a general fund, a Smart Growth Incentive Payment
Fund, Employee Buy-Back Fund, Sale of Real Estate Fund and Certified "Free Cash" Fund. A little
over $1.5 million is in the general fund. The Smart Growth Incentive Payment Fund that holds
$700,000 and includes the two $350,000 payments the Town received from the State for adopting
smart growth districts. (the gateway smart growth site and the Downtown district). This money was
placed in the stabilization fund because if construction does not begin within a certain time period,
the Town must return the money to the State. The sale of real estate fund includes properties such as
the former landfill and approximately $4 million is left in the free cash.
Board of Selectmen Meeting—September 15, 2010—Page 2
Revenues: Historic Regeneration - The Town Accountant reviewed the history of Reading's reserve
funds (from 2005 to 2010), and how it'has varied from the original budget approved by the Town
Manager and Town Meeting to the actual budget over the years. The amount of money in the
Intergovernmental has the largest variance which includes money from the State and Federal
government. In 2009 and 2010, the Town received significantly less than what was originally
budgeted. The Investment Income was relatively high during 2007 and 2008 because of the high
school construction project but the Town,didn't budget for.the high interest level. The Revenues
have exceeded the Town's Budget for the last five years but in 2009 and 2010, there was a shift and
the revenues no longer have exceeded the budget as it has in the past.
Expenditures — The Town Accountant reviewed the variances in the expenditures shown on Page 5
of the meeting handout. When money that is budgeted is not spent, it is returned into the free cash
fund: For example, the trash account was lower over the last couple of years than what was
budgeted because people tend to generate less trash during economic recessions. The million dollars
in the trash fund is then returned and will. go into free cash. The Assistant Town Manager pointed
out that when reviewing the budget,from previous years, to keep in mind that it is the final budget
and not necessarily what was approved in the Spring because sometimes. money is transferred
during the year.
Town Land Overview—The Town Manger provided a list and map showing all of the vacant Town
own land in Reading. The parcel size and land values are also included on the handout. Many of the
Town's vacant parcels are conservation land with strict restricts or swamp lands with significant
limitations. Only a couple parcels are opportunities for the Town to sell to generate some revenue.
The Oakland Street and Pearl Street parcels are the only potential sites. The Town Manager
suggested some of the swamp land be transferred to the Conservation Commission. Board of
Selectmen Chairman James Bonazoli asked how the land values were calculated, and the Town
Manager explained that they were the assessed value from the Town's Board of Assessors. Bill
Brown asked how the Town transfers land, and the Town Manager responded that land transfers are
executed by a vote of the Board of Selectmen.
Revenues — The Assistant Town Manager reviewed the Town's revenue in the restricted and
unrestricted funds. Restricted funds are funds designated for specific purposes, and can only be
spent for those purposes. The restricted funds are shown on Pages 19-21 of the handout. Page 24
of the handout shows recent revenue and expense savings and efforts from the Town. Savings in
expenses include items such as sick leave buyback for employees, changes in the health insurance
program, the energy performance contracting a nd reduced sick leave. Recent revenue savings
include the incentive payments from the Smart Growth Zoning Districts, a review of all Town fees
and the local meals tax.
Brainstorming Session — Finance Committee Member Mark Dockser facilitated a brainstorming
session where meeting participants provided revenue ideas in small groups. A letter to the Finance
Committee from Reading resident Dave Talbot on revenue ideas was distributed. After each group
shared their ideas for potential revenue sources with the whole group, everyone voted on what was
considered to be opportunity areas where the Town should focus their efforts. The items identified
as the top priorities included the sale of Town owned land, billboards and advertising, renting space
for cell towers and wireless communications, hiring a public relations or economic development
officer and naming rights.
Board of Selectmen Meeting—September 15 2010—Page 3
Finance Committee Chairman Marsie West described the next steps and explained that the Finance
Committee would summarize the results of tonight's meeting. The next Financial Forum scheduled
for October 27th will focus on expenses.
On a motion by Berman seconded by Greenfield, the Finance Committee voted to adjourn the
meeting of September 15,2010 at 9:05 p.m.by a vote of 7-0-0.
On motion by Robinson seconded by Michaud, the School Committee voted to adiourn the
meeting of September 15,2010 at 9:00 p.m.by a vote of 5-0-0.
The Board of Selectmen continued in session. The Board reviewed a draft Charter amendment
dealing with the issue of referendums. Selectman Stephen Goldy felt that the issue may b e
somewhat rushed and we should take a little bit more time with it. Other members felt that it should
move forward. The direction of the Board was to include the draft referendum language as a
Charter amendment in the draft warrant for consideration by the Board on 9/21/10 and have Town
Counsel available. Town Counsel will be specifically able to discuss questions of timeframes for'a
referendum.
On motion by Bonazoli seconded by Schubert, the Board of Selectmen voted to adiourn the
meeting of September 15,2010 at 9.15 p.m. by a vote of 5-0-0.
Respectfully submitted,
Secretary