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Town of Reading Meeting Minutes

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2016-09-22 LAG

Board - Committee - Commission - Council:

Finance Committee

Date: 2020-09-23 Time: 7:00 PM

Building: Location:

Address: Session: Open Session

Purpose: Financial Forum Version: Draft

Attendees: Members - Present:

Chair Edward Ross, Vice Chair Dan Dewar, Nick Boivin, Jeanne Borawski, Eric Burkhart, Marianne Downing, Sean Jacobs, Andrew Mclauchlan, Mark Zarrow

Members - Not Present:

Others Present:

Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, Assistant Town Manager Jean Delios, School Superintendent John Doherty, School CFO Gail Dowd, Assistant School Superintendent Christine Kelley, Director of

Student Services Jennifer Stys; School Committee Members: Chair Chuck Robinson, Shawn Brandt, Erin Gaffen, Carla Nazzaro, John Parks, Tom Wise; Select Board Members: Chair Mark Dockser, Vanessa Alvarado, Carlo Bacci, Karen Herrick, Anne Landry

Minutes Respectfully Submitted By: Jacquelyn LaVerde

Topics of Discussion:

This meeting was held remotely via Zoom. Chair Edward Ross called the meeting to order at 7:02 pm. Mark Dockser called the Select Board to order, and Chuck Robinson called the School Committee to order.

Mr. Ross quickly reviewed the liaison assignments and noted that he has corresponded with Mr. Boivin about which assignments he would prefer. FINCOM and Select Board to Vote to Authorize Spending in Revolving Funds Town Manager Bob LeLacheur explained that in April of last year, an act was passed which permitted municipalities to use the same level of revolving funds in FY21. However, that was only true until the municipality adopted an annual budget. Because of the condensed Town Meeting format this year, and the unclear language of the act, the revolving funds were not voted on at Town Meeting. Currently the spending limits are set at $0. Spending levels can be restored with a joint vote of the Finance Committee and Select Board. The Finance Committee and Select Board reviewed the spending limits and appropriate uses of the funds and agreed to increase the Public Health revolving fund by $50,000. On a motion by Mr. Ross, and seconded by Ms. Borawski, the Finance Committee

voted to approve Revolving Fund levels for FY21 as amended by a vote of 9-0-0.

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Roll call vote: Andrew Mclauchlan-Yes, Dan Dewar-Yes, Eric Burkhart-Yes, Marianne Downing-Yes, Mark Zarrow-Yes, Sean Jacobs-Yes, Jeanne Borawski-Yes, Ed Ross-Yes, Nick Boivin-Yes. On a motion by Mr. Dockser, and seconded by Ms. Herrick, the Select Board voted to approve Revolving Fund levels for FY21 as amended by a vote of 4-0-0. Roll call vote: Carlo Bacci-Yes, Vanessa Alvarado-Yes, Karen Herrick-Yes, Mark Dockser-Yes.

Revenues: Town Accountant Sharon Angstrom reviewed the results of FY20 operations and regeneration for revenues and expenses. There was $1 million collected over projection. Excise tax decreased by $313,000, but mostly sustainable revenues increased $491,000 and one-time payments increased $822,000. Expenses came in $2.87 million under budget. Reserves are not yet certified, but are estimated at $15 million. Additional reserves include

$1.7 million in the General Stabilization Fund and $300,000 in the FINCOM reserve fund, for a total of $17.1 million in reserves. Anne Landry arrived at 7:34 pm. Based on FY20 performance, and with more information available, Ms. Angstrom stated that FY21 revenue projections were reduced slightly because state aid is still uncertain.

Estimates from state aid are $1 million higher than projected. Mr. LeLacheur noted that the Baker-Polito administration has committed to no less than the FY20 levels for Chapter 70 and Unrestricted General Government Aid, but the state still has not passed a balanced budget. He expressed concern about the state being able to meet its commitment for state aid without receiving federal aid. Reduced revenue projections for FY21 include: -$400,000 interest earnings to $375,000;

-$5,000 for licenses and permits to $160,000; and -$75,000 Medicaid reimbursements to $100,000. FY21 projected revenues total $105.8 million and includes: property taxes $78.1 million, local revenues $7.2 million, State Aid $14.4 million, other sources $4 million, and free cash $2.1 million. Projections for FY22 are estimated at $80.7 million in property taxes, local revenues $7.7 million, state aid $14.4 million, other sources $4 million, and free cash to be determined.

At Town Meeting in June, budget adjustments were made and the use of free cash increased $832,000 to close the budget gap. For November Town Meeting, a $50,000 increase for property and casualty insurance, and a $75,000 increase for DPW rubbish will be needed. The total needed for Vocational schools is not yet known, but will be before Town Meeting. With revenue from new growth and state aid, and reductions in local receipts, there is

$712,303 in increased revenue that can be used to add back some items that were cut, or reduce the use of free cash. The Finance Committee, School Committee, and Select Board had a lengthy discussion on the information presented and several possibilities for upcoming budgets. At the upcoming Financial Forums, the Finance Committee will hear from Department Heads and will need to vote on budget adjustments. Town meeting will need to act on the $367,303 in new growth because it has been certified by the Department of Revenue. The next Financial Forum is scheduled for Wednesday, October 7, 2020 at 8:00 pm. On a motion by Mr. Wise, and seconded by Mr. Robinson, the School Committee voted to adjourn at 9:21 pm by a vote of 6-0-0. Roll call vote: Tom Wise-Yes, Erin Gaffen-Yes, Carla Nazzaro-Yes, John Parks-Yes, Shawn Brandt-Yes, Chuck Robinson-Yes.

On a motion by Mr. Bacci, and seconded by Ms. Herrick, the Select Board voted to adjourn at 9:22 pm by a vote of 5-0-0.

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Roll call vote: Carlo Bacci-Yes, Karen Herrick-Yes, Vanessa Alvarado-Yes, Anne Landry-Yes, Mark Dockser-Yes. Minutes: On a motion by Mr. Mclauchlan, and seconded by Mr. Zarrow, the Finance Committee voted to approve the meeting minutes of September 9, 2020 as presented by a vote of 8-0-1, with Mr. Boivin abstaining, as he was not present at

that meeting. Roll call vote: Mark Zarrow-Yes, Marianne Downing-Yes, Eric Burkhart-Yes, Dan Dewar-Yes, Jeanne Borawski-Yes, Nick Boivin-Abstain, Sean Jacobs-Yes, Ed Ross-Yes, Andrew Mclauchlan-Yes. On a motion by Mr. Mclauchlan, and seconded by Ms. Borawski, the Finance Committee voted to adjourn at 9:24 pm by a vote of 9-0-0.

Roll call vote: Mark Zarrow-Yes, Marianne Downing-Yes, Eric Burkhart-Yes, Dan Dewar-Yes, Jeanne Borawski-Yes, Nick Boivin-Yes, Sean Jacobs-Yes, Andrew Mclauchlan-Yes, Ed Ross-Yes.