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HomeMy WebLinkAbout2011-06-29 Finance Committee PacketThe Town of Reading - FINCOM ..5. Home Residents Agenda http://www.readingrna.gov/Pages/Rea'dingMA_MeetingCal/SO 1744B... t '~Az TV -II°a➢.;y`'~~ dKtdp ,~AFii~';:= e,,., ! Y-.iv-.~~ 1a.-.r.l FI COM Wednesday, June 29, 2019 at 7:30 PM. Town Hall conference room Printer-Friendly Version 1. FINCOM reorganization 2. Liaison reports & assignments 3. New member initiation 4. FINCOM FYI 2 meeting schedule 5. FYI 1 reserve fund transfer request from Fire 6. Late summer reserve fund request from SchoolS (7/25 joint meeting) 7. Update on meals tax 8. Approve minutes April 13, 2011 Google Search COMMON CAUSE - COMMON CAUS, Town of Reading, Massachusetts 16 Lowell Street, Reading, MA 01867 Website Disclaimer Virtual Town Hall Website loft 6/29/20112:14 PIV Page 1 of 1 LeLacheur, Bob From: Burns, Greg Sent: Thursday, June 23, 2011 10:44 AM To: LeLacheur, Bob; Cormier, Jim Bob and Jim, Below are my estimated figures for the estimated deficit. I have built in a cushion of about $1,500. Last Payroll Non Union Union Six days Overtime 13 days of 22,000 Estimated Last Payroll Cost Budget Remaining Estimated Salary Deficit Estimated Expense Offset Total Estimated Deficit Greg Chief Gregory J. Burns Reading Fire Department 757 Main Street Reading, M.A. 01867 rvrvm.readirgmagov. 5,748.75 (P) 781.944.3132 (F) 789.942.9914 43,682.25 20,400.00 69,831.00 21,023.00 48,808.00 -7,000.00 41,808.00 Please let us know how we are doing -fill out our brief customer service survey at http://readingma- su rvey.virtualtownhall. net/survev/sid/887434dd9e2l 3Ob7/ 6/29/2011 6) FY 11 Over Time Budget Drivers Several factors drove the high overtime costs: We were down four Firefighters this spring: 11/14/10 to present a Firefighter injured and is now going through the retirement process 2/17/11 to 6/15/11 A Firefighter was out due to a back injury and has returned to work. 6/11 A Firefighter with a torn stomach muscle was is out sick and has returned. 4/4/11 to 6/24/11 a Firefighter is in the Fire Academy and will graduate June 24, 2011 Vacation Time People are using their vacation time before they lose it at. the end of June. EMS Training We are running an EMT Refresher last week we had training for 25 EMT's at four hours pay. Estimated cost $4,400 6 Paramedics where undergoing there refresher class. The class was 8 hours every Monday for 6 Mondays. Estimated cost for two Training days $4,200 Summer and Fall 7/1/10 to 8/13/10 A Captain was out sick due to a major surgery 7/1/10 to 10/18/10 Captain out with a leave of absence from July 1 to October 18 7/14/10 to 10/11/10 A Firefighter was out sick with a medical 1015110 to 12/2/10 A Firefighter was out due cancer surgery 7/1/10-11/26/10 Down one Firefighter 2/8/10 to 10/16/10 Assigned the Day Officer to a Group as Acting Captain 0~ f'S1 `t "N4 t 1 06/29/2011 14:41 (TOWN OF READING blelaeheur YEAR-TO-DATE BUDGET REPORT FOR 2011 13 ORIGINAL APPROP TRANS/ADJSMTS REVISED BUDGET TD EXPENDED NCUMBRANCE/REQ VAILABLE BUDGET IPG 1 glytdbud % USED 0200 PUBLIC SAFETY 0220 FIRE 03 SALARIES 12203511 511003 FIRE CHIEF 106,586.00 0.00 106,586.00 107;702.13 0.00 -1,116.13 101.0%* 12203511 511009 ADM ASST 43,457.00 -0.00 43,457.00 41,958.00 0.00 1,499.00 96.6% 12203511 511241 CAPTAIN 335,895.00 0.00 335,895.00 344,625.10 0.00 -8,730.10 102.6%* 12203511 511242 LIEUTENANT 349,006.00 0.00 349,006.00 335,918.56 0.00 13,087.44 96.30 12203511 511243 FIREFIGHTR 2,157,086.00 0.00 2,157,086.00 2,128,058.13 0.00 29,027.87 98.7% 12203511 511246 FIRE ALARM 10,000.00 0.00 10,000.00 9,602.25 0.00 397.75 96.0% 203511 5150 OVERTIME 100,000.00 269,047.00 369,047.00 413,169.30 0.00 =-44,122-30 112.0%* 12203511 515200 HOLDAY PAY 185,060.00 0.00 185,060.00 175,012.89 0.00 10,047.11 94.6% 12203517 517017 SCK IV BBK 23,605.00 0.00 23,605.00 0.00 0.00 23,605.00 .0% TOTAL SALARIES 3,479,742.00 100,000.00 3,579,742.00 3,556,046.36 0.00 23,695.64 99.3% 05 EXPENSES 12205521 521392 WRLS PHONE 0.00 0.00 0.00 863.24 0.00 -863.24 100.0%* 12205524 524270 RADIO MNT 2,250.00 0.00 2,250.00 5,775.66 0.00 -3,525.66 256.7%* 12205524 524271 EQUIPMENT 2,600.00 0.00 2,600.00 7,899.14 0.00 -5,299.14 303.8%* 12205524 524273 APARATREPR 1,075.00 0.00 1,075.00 1,423.63 0.00 -348.63 132.4%* 06/29/2011 14:41 TOWN OF READING IPG 2 blelacheur (YEAR-TO-DATE BUDGET REPORT glytdbud FOR 2011 13 ORIGINAL APPROP TRANS/ADJSMTS REVISED BUDGET YTD EXPENDED ENCUMBRANCE/REQ AVAILABLE BUDGET % USED 12205524 524275 FRE ALRM M 3,150.00 0.00 3,150.00 -524.59 0.00 3,674.59 16.7% 12205524 524276 HOSE RPLCM 1,075.00 0.00 1,075.00 884.95 0.00 190.05 82:3% 12205531 531000 PRDEV TRN 0.00 0.00 0.00 100.00 0.00 -100.00 100.0%* 12205531 531010 PRDEV DUES 2,500.00 0.00 2,500.00 2,500.00 0.00 0.00 100.011 12205531 531050 PUBLCTNS 275.00 0.00 275.00 520.70 0.00 - -245.70 189.3%* 12205531 531090 PRDEV REG 900.00 0.00 900.00 709.00 0.00 191.00 78.8% 12205531 531220 FFGHTR TRN 15,000.00 0.00 15,000.00 3,698.86 0.00 11,301.14 24.7% 12205540 540000 SUPP/EQUIP 4,500.00 0.00 4,500.00 1,325.41 0.00 3,174.59 29.5% 12205540 540225 EQUIPMENT 0.00 0.00 0.00 360.67 0.00 -360.67 100.0%* 12205542 542000 OFFC SUPPL 2,000.00 0.00 2,000.00 1,641.02 154.94 204.04 89.8% 12205550 550000 ALS SUPP 28,500.00 0.00 28,500.00 28,570.60 1,041.07 -1,111.67 103.9%* 12205550 550290 AMBUL SRVC 4,805.00 0.00 4,805.00 10,205.96. 223.88 -5,624.84 217.1%* 12205554 554000 UNFRM/CLTH . 28,900.00 0.00 28,900.00 28,011.98 0.00 888.02 96.9% 12205554 554220 PRTCT CLTH 3,750.00 0.00 3,750.00 473.,06 0.00 3,276.94 -12.6% 12205578 578000 OTHER EXPN 1,650.00 0.00 1,650.00 536.08 0.00 1,113.92- 32.5% 12205578 578062 FLAGS 1,000.00 0.00 1,000.00 289.26 0.00 710,74 28.9% TOTAL EXPENSES 103,930.00 0.00 103,930.00 95,264.63 1,419.89 7,245.48 93.0% TOTAL FIRE 3,583,672.00 100, 000.00 3,683,672.00 3,651,310.99 1,419.89 30,941.12 99.2% TOTAL PUBLIC SAFETY 3,583,672.00 100, 000.00 3,683,672.00 3,651,310.99 1,419..89 30,941.12 99.2% TOTAL EXPENSES 3,583,672.00 100-,000..00 3,683,672.00 3,651,310.99 1,419.89 30,941.12 GRAND TOTAL 3,583,672.00 100,000.00 3,683,672.00 3,651,310.99 1,419.89 30,941.12 99.2% END OF REPORT - Generated by Bob LeLacheur ~J TOWN OF READING Finance Committee Liaisons - as of 2/14/2011 Name/Address/Email Telephone Liaison Assignments Marsie West ('03-12), Chair 781-942-0604 (H) Board of Selectmen 3 Whitehall Lane 617-382-2865 (W) Audit Committee Marsie.west@bnymellon.com Schools David Greenfield ('05-'14), Vice Chair 78.1-942-2072 (H) Board of Selectmen 192 Woburn Street 617-662-7210 (W) Audit Committee dgreenfield@statestreet.com Accounting/Finance Barry Berman ('07-14) 781-942-7907(H) Schools 54 Longview Road 781-684-5705(W) RMLD bcberman@comcast.net Mark Dockser ('10-13) 781- 942-7586(H) RMLD 110 Beaver Road Public Works mdockser@gmail.com Frank Fardy ('10-13) 781- 944-2219(H) Community Services 55 Grand St. Library ffardy@verizon.net Kevin Leyne('09-' 12) 781-249-0965 Community Services 34 Larch Lane Public Safety Kevin. leyne@verizon.net Paula Perry ('11-14) 781-944-8224 Library 40 Beaver Road piperry@comcast.net Harold S. Torman ('03212) 781-942-2794 (H) Public Works 77 Sunnyside Ave Economic Development Hal.Torman@lantheus.com Schools John Arena ('11-'12) 26 Francis Drive iohniarena(a)amail.com ADMINISTRATION Peter Hechenbleikner nhechenbleikner a.ci.readine.ma.us John Doherty jdohertya,reading.k12.ma.us Gail LaPointe glqpointe@ci.reading.ma.us Mary DeLai mdelai@reading.kl2.ma.us Bob LeLacheur blelacheur@ci.readin TBA (H) Economic Development Public Safety 942-9043(W) Town Manager 944-5800(W) Superintendent of Schools 942-6604(W) Town Accountant 942-5800(W) Director of Finance & H.R. (Schools) 942-6636(W) Asst. Town Manager/Finance 942-9805(H) Director (Town) 0 FINCOM FYll Schedule (All meetings are Wednesday at 7:30pm in Town Hall, unless noted) 2010 August 4 regular meeting September-15 Financial Forum I (at the Library) Current Revenues; FY12 budget calendar; Revenue Ideas October 13 regular meeting October 27 Financial Forum II (at the Senior Center) Reserves; FY12 preliminary revenues; Cost cutting Ideas November 8 Subsequent Town Meeting begins (Monday) November 10 regular meeting December 8 regular meeting 2011 January 11 Selectmen Town budget meeting (Tuesday 7pm) January 18 Selectmen Town budget meeting (Tuesday 7pm - Senior Center) January 26 Financial Forum.III (at the Senior Center) February 9 regular meeting March 2 FY12 Budget Meetings (RMLD-7pm) March 9 FY12 Budget Meetings (RMLD-7pm) March 16 FY12 Budget Meetings (RMLD-7pm) March 23 FY12 Budget Meetings (RMLD-7pm) March 28 FY12 Budget Meetings (Monday-RMLD 7pm) March 30 FYI 2 Budget Meetings (Town Hall-7pm) April 13, regular meeting April 26 Annual Town.Meeting begins (Monday) June 29 Year-end meeting FY12 - to be determined 0 Town of Reading Finance Committee Mission Statement / Guiding Principles The Reading Finance Committee will use all available authority and resources to advise Town Meeting on fiscal matters in accordance with the Reading Home Rule Charter and applicable state statutes, recommending the most responsible allocation of funds to deliver the highest quality municipal services to the citizens of Reading. This will be accomplished by: ® Establishing clear financial policies to provide guidance in the conduct of the fiscal affairs of the Town ® Recommending and adhering to fiscally sound management practices ® Working collaboratively with Town staff, boards and committees to ensure a financial planning process that is inclusive of all interests ® Monitoring budget developments and expenditures vigilantly ® Considering longer term fiscal impacts of recommendations on Town finances ® Factoring in community priorities and fiscal sustainability of services in recommending financial positions • Upholding the Reading Home Rule Charter and By-Laws Ci The Finance Committee of the Town of Reading will be guided by the. following values adopted by the Board of Selectmen: Integrity and Transparency • Reading municipal government and its employees and officials will be guided by the highest standards of ethics and integrity. • Municipal business will be conducted in an open manner with opportunities for public discussion and input into decisions. • The community will be kept informed with open communication. • All official business will be conducted in a civil, professional, and mutually respectful manner. Excellence • Excellence will be the standard for all municipal services, with continuous review and evaluation of best practices, incorporating new methods and technologies, striving for efficiency and cost effectiveness. • Reading municipal government will make decisions based on careful planning consistent with town-wide goals. Diversity • Municipal government will encourage diversity and respect for differences in the conduct of its business and in recruiting and hiring personnel and in providing enrichment opportunities for the community. Community The following are values that the community holds in high regards: • Social, Environmental, and Financial Sustainability • Tolerance, Civility and Cultural Diversity • Volunteerism and Civic Engagement • Historic Preservation and Open Space • Recreational, Cultural, and Educational Opportunities ~o~,N oFR~9o-y Finance Committee r e Debt & Capital Policy December 2006 E39: Inco ORP The Finance Committee (FINCOM) of the Town of Reading hereby establishes and adopts a Debt & Capital Policy that a minimum of 5% of Net Available Revenue (`NAR' - as defined below) shall be devoted to construct and replace the capital plant of the community, both as debt repayment and annual payments as part of the budget for capital items. The FINCOM recognizes that a prudent Capital Improvement Program (CIP) will serve to avoid excessive maintenance and repair costs, and reduce the need for sudden and unexpected capital expenses that may have an adverse impact on the Town's operating budgets. The FINCOM also recognizes that from time to time additional capital expenses over this 5% minimum will be beneficial for the long term financial health of the Town. These additional expenses may be funded either by use of excess Reserves (as described in the FINCOM Cash Reserves Policy), from the general fund (by way of a budget increase above this 5% minimum Policy), or through other methods outside of the tax levy. The FINCOM encourages a_prudent use of debt so as to spread out the cost of large capital assets over a period of time that should not exceed the expected useful life of the asset. If debt service of any new capital project is expected to exceed 0.25% of NAR in any single year, the project should instead be brought forward as debt or capital excluded from the tax levy. The Capital Improvement Program will be a minimum of five years of projected capital projects that reflect the prioritized needs of the Town, subject to the anticipated funding provided by this Policy. This CIP will be presented at least twice each year to the FINCOM by the Town's financial staff, in advance of both the Annual and Subsequent Town Meetings. Net Available Revenue is defined as all general fund revenues, excluding any MSBA reimbursements or revenues collected outside the tax levy. The most recent set of certified financial statements will typically be used to calculate Net Available Revenue. The FINCOM may use the best estimates from the Town's financial staff at other times. (Dy oFRFg4-ti Finance Committee e Policy On Cash Reserves December 2006 ,639l1NC0FQp4P~ The Finance Committee (FINCOM) of the Town of Reading hereby establishes and adopts a Policy establishing a minimum target for cash reserves of 5% of Net Available Revenue (as defined below). Further, the FINCOM recognizes that circumstances may occur which would require the FINCOM to raise or lower this minimum from time to time. The FINCOM recognizes that the financial health of the Town of Reading is of paramount importance to its residents who receive essential services; to its bondholders who provide funding for long-term Town projects; to its vendors who provide services and equipment to the Town; and to its current and retired employees. This Policy on Cash Reserves is designed to protect the community from sudden and unexpected changes in revenues or expenses. Funds in excess of the current Cash Reserves Policy may be: ® Added to reserves. This will increase the financial cushion against any sudden and unexpected changes in revenues or expenses. ® Added to the Capital Improvement Program. This investment will reduce future maintenance and repair costs. ® Added to the funding of any longterm liability. This will reduce the need for future contributions towards the pension fund or other post- employment benefit costs. ® Used for one-time expenses for community priorities. ® Used to supplement the current fiscal year budget, including the opportunity to reduce property taxes or other fees for the Town's residents. Cash Reserves are defined as the sum total of free cash, uncommitted Stabilization Funds, and the FINCOM Reserve Fund. Other reserves (such as Sale of Real Estate funds, committed Stabilization Funds and overlay reserves) are excluded from the 5% minimum requirement, though these funds may be considered if circumstances require higher reserves. Net Available Revenue is defined as all general fund revenues, excluding any MSBA reimbursements made inside the tax levy, or any revenues collected outside the tax levy. The most recent set of certified financial statements will typically be used to calculate both Cash Reserves and Net Available Revenue. The FINCOM may use the best estimates from the Town's financial staff at other times. ~"J TOWN CHARTER Section 2-14: Meetings The Town Meeting shall meet at least twice in each calendar year. The Annual Town Meeting shall be held during the first six calendar months at a time fixed by bylaw, and shall be primarily concerned with the determination of matters that have a fiscal effect on the Town including, but not limited to, the adoption of an annual operating budget for all Town agencies. A Subsequent Town Meeting shall be held during the last three calendar months at a time fixed by bylaw. In addition to the two meetings required by this section, the Board of Selectmen may in any manner provided under the General Laws of the Commonwealth or the Charter, for the purpose of acting upon the legislative business of the Town in an orderly and expeditious manner, call the Town Meeting into session at other times by the issuance of a Warrant. Section 7-2: Submission of Proposed Budget At least four (4) months before the start of the fiscal year, the Town (-W Manager shall submit to the Finance Committee a proposed budget for the ensuing fiscal year with an accompanying budget message and supporting documents. He shall simultaneously provide for the publication in a local newspaper of a general summary of the proposed budget, and a notice stating the times and places where complete copies of his proposed budget shall be available for examination by the public. Section 7-3:. School Committee Budget The budget adopted by the School Committee shall be submitted to the Town Manager in sufficient time to enable him to prepare the total Town budget he is required to submit by Section 7-2. (a) Public Hearing - At least fourteen (14) days before the meeting at which the School Committee is to vote on its final budget request, the School Committee shall cause to be published in a local newspaper a general summary of its proposed budget. The summary shall indicate specifically any major variations from the present budget and the reasons for.such variations and a notice stating (1) the times and places where complete copies Df the budget shall be available or examination by the public, and (2) the date, time and place, not less than seven (7) nor more than fifteen (15) days following such publication, when a public hearing shall be held by the School Committee on the proposed budget. (b) Adoption - The action of the School Committee in adopting the budget following the public hearing shall be summarized and the vote shall be duly recorded. Section 7-4: Budget Message The budget message submitted by the Town Manager shall explain the proposed budget for all Town agencies, both in fiscal terms and in terms of work programs. It shall outline proposed financial policies of the Town for the ensuing fiscal year; describe Reading Home Rule Charter 2 4 With all revisions through April, 2006 0 important features of the budget; indicate any major variations from the budget for the current year in financial policies, expenditures and revenues together with the reasons for such changes; summarize the Town's debt position and include such other material as the Town Manager deems desirable. Section 7-5: The Proposed Budget The proposed budget shall provide a complete financial plan of all Town funds and activities, including the budget as requested by the School Committee for the ensuing year. Except as may otherwise be required by General Law or by the Charter, it shall be in the form the Town Manager deems desirable. In his presentation of the budget, the Town Manager shall make use of modern concepts of fiscal presentation so as to furnish a maximum amount of information and the best financial control. The budget shall be so arranged as to show the actual and estimated income and expenditures for the previous, current and ensuing fiscal years and shall indicate in separate sections: (a) Proposed expenditures for current operations during the ensuing fiscal year, detailed by Town agency, function a3nd work programs, and the proposed methods of financing such expenditures. (b) Proposed capital expenditures during the ensuing fiscal year, detailed by Town agency, and the proposed method of financing each such capital expenditure. (c) Estimated surplus revenue and free cash at the end of the current fiscal year, including estimated balances in any special accounts established for specific purposes. (d) Set forth all encumbered funds from prior fiscal years. Section 7-6: Action on the Budget (a) Public Hearing - The Finance Committee shall, forthwith upon receipt of the proposed budget, provide for publication in a local newspaper of a notice stating the date, time and place, not less than five (5) nor more than fourteen (14) days following such publication, when a public hearing shall be held by the Finance Committee on the proposed budget. (b) Finance Committee Meetings - The Finance Committee shall consider in public meetings the detailed expenditures for each Town agency proposed by the Town Manager, and may confer with representatives of any such agency in connection such considerations. The Finance Committee may require the Town Manager or any other Town agency to provide such additional information as it deems necessary or desirable in furtherance of its responsibility. (c) Presentation to the Town Meeting - The Finance Committee shall file a T port of its recommendations with the Town Clerk in sufficient time to be stributed to all Town Fleeting Members at least fourteen (14) days before the action on the budget article is to begin. The budget to be acted Reading Home Rule Charter 2 5 With all revisions through April, 2006 upon by the Town Meeting shall be the budget as proposed by the Finance Committee which budget may be amended by the Town Meeting. d3 (d) All Warrant Articles requiring an appropriation in excess of five hundred dollars ($500.00) shall be integrated into the Town Manager's budget, and shall be considered and reported thereon by the Finance Committee. Section 7-7: Capital Improvements Program The Town Manager shall submit a Capital Improvements Program to the Board of Selectmen and the Finance Committee at least thirty (30) days before the elate fixed for submission of his proposed budget. It shall contain (a) a clear, concise general summary of its contents; (b) a list of all capital improvements proposed to be undertaken during the ensuing five (5) years, with supporting information as to the need for each capital improvement; (c) cost estimates, methods of financing and recommended time schedules for each improvement and (d) the estimated annual cost of operating and maintaining each facility and piece of major equipment involved. This information is to be annually revised with regard to the capital improvements still.pending or in the process of being acquired, improved or constructed. Section 7-8: Financial Public Records Statements summarizing the budget and the Capital Improvements Program and related Warrant Articles, as adopted by the Town Meeting, shall be made available in the office of the Town Manager for examination by the public not more than twenty (20) days after their adoption. BYLAWS 2.1 General 2.1.1 The Annual Town Meeting shall be held on the third Tuesday preceding the ® fourth Monday in April of each year for the election of Town Officers and for such other matters as required by law to be determined by ballot. Notwithstanding the foregoing, in any year in which presidential electors are to be elected, the Board of Selectmen may schedule the commencement of the Annual Town Meeting for the same date designated as the date to hold the Presidential Primary. 2.1.3 All business of the Annual Town Meeting, except the election of such Town Officers and the determination of such matters are required by law to be elected or determined by ballot, shall be considered at an adj ournment of such meeting to be held at 7:30 p.m. on the fourth Monday in April, except if this day shall fall on a legal holiday, in which case the meeting shall be held on the following day or at a farther adjournment thereof. 2.1.4 A Special Town Meeting called the Subsequent Town Meeting shall be held on the second Monday in November, except if this day shall fall on a legal holiday, in which case the meeting shall be held on the following day. The Subsequent Town Meeting shall consider and act on all business as may properly come before it except the adoption of the annual operating budget. 3.4 Finance Committee 3.4.1 The Finance Committee shall consider all matters of business included within the Articles of any Warrant which involve the expenditure, appropriation and raising or borrowing of money. 3.4.2 The Finance Committee shall make a written recommendation on all Articles that it has considered, and the Town Clerk shall make said written : ecommendations available to each Town Meeting Member at least seven (7) days U`- rior r to the first adjournment of the Annual Town Meeting, seven (7) days prior to the second Monday in November and four (4) days prior to any Special Town Meeting. The said recommendations should be those of a majority of the entire Committee but recommendations may also be made by a minority of said Committee. The Committee's report shall also state the total amount of appropriations recommended by it on the entire Warrant and the approximate tax rate based on such recommendations. 3.4.3 The Finance Committee, or its duly authorized agents, shall have authority at any time to, and upon the petition of one hundred (100) inhabitants of the Town or a vote of the Town Meeting shall investigate at once the General Bylaws 11 Amended through July 2007 books, accounts, records and management of any official body or other committee, and to employ such expert and other assistants as it may deem advisable for that purpose; and the books, records and accounts of any department and office of the Town shall be open to the inspection of the Committee and any person employed by it for that purpose. The Committee shall have no power to incur any expenses payable by the Town without authority for such expenses having first been obtained from the Moderator, and such expenses shall be paid from the Finance Committee Reserve Fund. 14.4 The Finance Committee in making its report upon any subject referred to it shall arrange the report in clear and compact form, and shall divide it into separate propositions whenever in its judgment such divisions maybe desirable. The Committee shall attach to each proposition its own recommendations. 3.4.5 The Finance Committee. shall have a Clerk who shall be appointed by the Town Manager and who shall not be a member of the Committee. The Finance Committee shall meet at the call of said Clerk by July 10 of each year and shall then elect its Chairman and Vice Chairman. 3.4.6 Any member of the Finance Committee, who shall be appointed or elected to any official body or other committee, shall forthwith upon his qualification in such office, and any member who shall move from the Town shall upon such moving, cease to be a member of the Finance Committee. This provision shall not apply to the appointment of a Finance Committee member to serve as a member of any ad hoc board, commission or committee in the Town of Reading or to any board, commission or committee upon which a member of the Finance Committee shall serve in an ex officio capacity. 3.4.7 If any member of the Finance Committee is absent from three (3) or more successive meetings of the Finance Committee, the other members of said Committee may by an affirmative vote of its majority request the appointment committee, as defined in Section 2-12 of the Charter, to remove such absenting member from his membership, 9 and the appointment committee may thereafter so remove such member and shall notify him by mail of such removal. 4.1 Capital Improvements Program 4.1.1 All official bodies shall submit their proposed capital outlays to the Town Manager as required by said Town Manager. 4.1.2 After submission of the Capital Improvements Program to the Board of Selectmen and the Finance Committee, the Town Manager shall present to each Subsequent Town Meeting such Program to be adopted by Town Meeting with or without amendment. The' Capital Improvements Program may be amended by action of any regular or special Town Meeting. 4.1.3 Adoption of the Program shall not constitute authorization of the expenditure of any funds. No funds may be appropriated for any capital item unless such item is included in the Capital Improvements Program, and is scheduled for funding in the Fiscal Year in which the appropriation is to be made. Page 1 of 3 LeLacheur, Bob From: DeLai, Mary [mdelai@reading.k12.ma.us] Sent: Thursday, June 23, 2011 9:52 AM To: LeLacheur, Bob; Doherty, John Cc: Hechenbleikner, Peter Subject: RE: Meeting next week Hi Bob, Are they looking for us to attend a meeting to address this question? Mary C. DeLai Director of Finance & Operations Reading Public Schools 82 Oakland Road Reading, MA 01867 mdelai0reading.k12.ma.us Tel: 781.670.2880 Fax: 781.942.9149 ~~~~.P rN~c/1 ~~rr 0OhhJ l(/ )3r N~6k To support me in the Pan Mass Challenge, go to www.pmc.ora/md0298 1 W I (I lurn IV, FYI rbAW_r_1J please don ~ punt this e-mail unless you reallyneed to When writing or responding, please remember that the Secretary of State's Oilice has determined that email is a public record. This communication may contain privileged -or other confidential information. If you are not the intended recipient, or believe that you have received this conununication in error, please do not print, copy, retransmit, disseminate, or othemise use the information. Also, please indicate to the sender that you have received this email in error, and delete the copy you received. From: LeLacheur, Bob [mailto:blelacheur@ci.reading. ma.us] Sent: Thursday, June 23, 20118:51 AM To: Doherty, John; DeLai, Mary Cc: Hechenbleikner, Peter Subject: FW: Meeting next week Importance: High From: Berman, Barry [mailto:barry.berman@bankofamerica.com] Sent: Thursday, June 23, 20118:49 AM To: LeLacheur, Bob; David Greenfield(w); Frank Fardy(h); Hal Torman(w); Kevin Leyne(h); Mark Dockser(h); Marsie K. West; Perry, Paula Subject: RE: Meeting next week given the news of widespread waste and corruption in the Merrimack Collaborative I would like to know from the School Dept what if any Collaborative we participate in and what steps they take in ensuring Reading tax dollars are not wasted. http://mortgage.ban{ Pre-Qualify Now Tools. & Resources Ba nk ofArnerica -iP Home Loans Barry Berman Senior Mortgage Loan Officer Retail Mortgage Sales President's Club 'view My Website 6/29/2011 Page 1 of 1 LeLacheur, Bob From: Heffernan, Nancy Sent: Sunday, June 19, 2011 1:04 PM To: LeLacheur, Bob; LaPointe, Gail Subject: Meals Tax Mar-May 2011 74,680.9 eduled for payment by end of June Nancy J. Heffernan Town of Reading Treasurer/Collector 16 Lowell St Reading MA 01867 (781) 942-6634 Fax: (781) 942-9037 Please note new Town Hall Hours Effective June 7, 2010 Monday Wednesday Thursday - 7:30 am to 5:30 pm Tuesday - 7:30 am to 7 pm Friday - CLOSED Y12 btay+ 5a, va Please let us know how we are doing - fill out our brief customer service survey at hftp://readingma-survey.virtualtownhall.net/survey/sid/887434dd9e2130b7/ When writing or responding, please remember that the secretary of State's Office has determined that email is a public record. This communication may contain privileged or other confidential information. If you are not the intended recipient, or believe that you have received this communication in error, please do not print, copy, retransmit, disseminate, or otherwise use the information. Also, please indicate to the sender that you have received this email in error, and delete the copy you received. 6/29/2011 OF~p4O Finance Committee Meeting April 13, 2011 O s`; 9f1 NCORQO~P~~O Conference Room, Reading Town Hall The meeting convened at 8:30 PM in the Conference Room at Town Hall. FINCOM Members Present: Chair Marsie West, Vice Chair David Greenfield, Hal Torman, Bryan Walsh, Francis Fardy, Barry Berman and Paula Perry. Members Absent: Mark Dockser and Kevin Leyne. Also Present: Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Community Services Director/Town Planner Jean Delios, Town Counsel Ellen Doucette, Town Meeting member John Arena, Charles Eisenberg (Housing Partners), Paul Ognibene (Oaktree) and Kara Deyermenjian (Reading Patch). There being a quorum the FINCOM meeting was called to order at 8:30 PM. Article 24 discussion: Ms. Delios briefly reviewed the three documents in front of FINCOM - an overview of the situation from staff, a report from an independent consultant (Housing Partners), and some financial information from the developer (Oaktree). She explained that there have been a few changes, and that 53 units is the current configuration, along with some additional parking. She explained to FINCOM that this is a very important project as the first mixed use redevelopment under the Smart-Growth zoning. Mr. Eisenberg (Housing Partners) described the project as about 20,000 square feet of commercial combined with the residential component. As proposed; it will breathe some much-needed life into the lower Haven Street area. Financial benefits will include $350,000 as a lump sum and an additional $3,000/unit from the state. Mr. Ognibene (Oaktree project manager) explained that this was an $18.3 million project. $13 million was secured today as a personally guaranteed loan, $4.9 million was equity, and a $400,000 gap would be filled by funds from Reading's Affordable Housing Trust Fund. He spoke of the benefits to the Town: a retail component - prospective tenants have had discussions; the funds mentioned above from the state as well as the tax revenues from an improved property of approximately $20 million in value; and the number of affordable units this project would provide to the Town. Although the consultant's report suggested a loan would be prudent, Mr. Ognibene made it clear that only a grant outright would allow the project to go forward. Mr. Hechenbleikner added that while state and federal funding was available for this type of project, the lead time involved would not work in this case. Ms. West asked if this were the case, than how do any projects get done with those grants? Ms. Perry asked why the news about the $400,000 was discovered so late in the process. Ms. West agreed, and wondered if there were any other surprises? Mr. Ognibene said the change from 56 to 53 units was the only change he was aware of. Mr. Hechenbleikner said the liquor license issue brought before Town Meeting was because there was competing interests in the license, formerly held by the prior tenant at this site. Ms. Delios added that Oaktree had included funds to improve Brande Court and lower Haven Street. Mr. Eisenberg reviewed his report. He determined that the project was reasonable with respect to rents, absorption rates, and the costs in the pro-forma statement. He assumed rental units since that information was not provided. He pushed the construction budget out to five years and noted the need to repay a 5-year balloon loan. He said the market is strong for rental units now, and the proposed product is different enough versus the comparables to be attractive, even though a downtown project would not have many amenities. He concluded by saying there was not enough information for him to determine how important the $400,000 1~ was to the viability of the project, and he suggested it be in the form of a loan. Mr. Berman asked what additional information he would need to make that determination. Mr. Ognibene replied that no more funding was available. The return hurdles initially suggested a $1.5 million shortfall in this project for the investor they have. Of the $4.9 million in equity, $900,000 is borrowed against other projects he has, and $4 million is R.J. Finley, a subcontractor in the project. Mr. Berman asked why an $118,000 fee for a mortgage broker cost was included. Mr. Ognibene said there was a 3% cost on Equity and almost 1% cost on the loan, paid to a facilitator in Boston. Mr. Greenfield asked what benefits the Town would enjoy specifically for the $400,000, aside from those that would happen anyway as the project was completed. He asked why Oaktree purchased the property and closed on a loan before knowing about the disposition of the $400,000. Mr. Ognibene replied that his cost of capital was 11%, and that they had to close quickly because the purchase and sale agreement was close to expiring. He mentioned that R.J. Finley may buy the property before the five-year time frame expired, but they would have to walk away from the project without the $400,000. Mr. Hechenbleikner said the Town would protect the investment so it would only occur if the proj ect were completed as outlined. Ms. Doucette said the main objective.was to ensure that the housing units stayed affordable for at least 30 years or until the $400,000 was repaid to the Town. Ms. Delios pointed out the affordable units were a mix of a various number of bedrooms, and that DHCD will oversee and approve the process. Mr. Hechenbleikner said that 40R regulations specify not less than 30 years of affordability. Mr. Torman asked about the timing of the $3,000/unit payment, and Mr. Hechenbleikner said that would happen when the building permit was issued. Mr. Berman pointed out to Oaktree that Reading is a partner also, and will want to enjoy returns on the investment. He asked to structure the deal so the Town would be repaid if the project were successful, so those funds could be used again for affordable housing in the future. Mr. Walsh asked to also include a claw-back, provision for those funds if the project does not go forward as proposed. Mr. Greenfield asked where the Town stood relative to the 10% affordable target. Ms. Delios replied that right now it is 7.7% based on the 2000 census. Mr. Hechenbleikner added that Oaktree and Pulte would add to that figure, but the 2010 census showing growth would subtract. Ms. Delios added that recently the state cited the Town's planning efforts on affordable housing as a reason to deny a 40B application on Main Street, and added that the Peter Sanborn expansion project also added affordable units. Mr. Greenfield concluded by saying he was a `no' vote on the $400,000 for Oaktree, but he did see many intangible benefits to the Town if this project could go forward. He said he'was not convinced a $400,000 grant was essential to see that happened. Ms. Perry said it came down to a matter of trust without the financial proof, and it was a good use of the $400,000. Mr. Greenfield said that no one would walk away from this deal for $400,000. Mr. Ognibene stated that the $4 million equity partner will not invest unless the $400,000 is in the form of a grant. He also mentioned that he is personally on the hook if there are any unforeseen cost overruns. They are taking this risk because this is a new prototype project with an integrated development team. Ms. West asked about project contingency funds, and Mr. Ognibene stated there is less than $500,000. Mr. Torman asked if we would be having this discussion without the $400,000 being in the affordable housing trust, and Ms. Doucette replied that it would be illegal for any general fund money to go towards a private developer. Ms. West asked for closing remarks. Ms. Delios referred to the project as a first-mover in the area --one critical to begin activity in lower Haven Street. Mr. Fardy said now that he understood the $400,000 had been discussed for a long period of time and was not sudden, he was in favor. Mr. Eisenberg said he had some questions clarified tonight from the discussion that he had not been aware of for his report. Mr. Walsh agreed with Mr. Fardy. On a motion by Mr. Berman, seconded by Mr. Greenfield, FINCOM voted 6-1-0 (Mr. Greenfield opposed) for Article 24 as written. Mr. Berman to prepare the report. 0 Articles with Insufficient Data Ms. West said that she had conferred with Town Counsel and that FINCOM cannot abstain per the Town Charter, or if they do it does not constitute a vote as required. She said in the future if FINCOM does not have enough information, they should vote against the Article and explain why in their write-up. Financial Update Mr. LeLacheur reviewed three changes (state aid, overlay and free cash) in revenues for the FY12 budget. Today the House Ways & Means (HWM) Committee released a budget that had nearly the same amount of state aid for the Town as was in the Governor's budget over two months ago, despite the fact the legislature at the time had warned cities and towns to expect a considerable reduction from those levels. Revenues at the State have been improved over the past few months. The Senate is expected to have an early aid resolution within the next week. The Town had used an estimate of $11.25 million for state aid in FY12, and now that figure looks be about $1 million higher. However, the $150,000 estimate for a return from the Assessor's overlay account needs to be reduced to zero after the Board of Assessors voted on April 12, 2011 to not release any funds. Mr. LeLacheur presented the agreement between the Town and Schools on action on the FY 12 budget if such surplus funding was realized. One modification to the agreement shown previously was a reduction of $25,000 towards vocational education, since the enrollment at Northeast Metropolitan Regional Vocational school had declined and that budget was overfunded with early estimates. The agreement is as follows, as shown on page 19 on the FINCOM packet: 1.) The first $150,000 of additional funds (operating budgets): $47,000 to the Town budgets as follows: $6,500 to line 192 Finance expenses for technology ($3,500 for PCs and $3,000 for parts & supplies); $6,500 to line Kl Community Services wages (to increase the 0.8 FTE clerical position to 1.0 FTE for document storage, license & permits, and customer service); $4,000 to line K2 Community Services expenses ($2,650 for animal disposal costs and $1,350 for professional development); $30,000 to line M92 Public Works expenses (for pothole repairs supplies and some new equipment to allow patching in the colder weather); $103,000 to the School budget in line U99; 2.) The next $125,000 of additional funds (accommodated costs): $50,000 to line E99 for Vocational Schools; $75,000 to line M92 for DPW fuel expenses; On a motion by Mr. Greenfield, seconded by Mr. Fardy, FINCOM voted to recommend the chances to the FY12 Budget for lanes 192, Kl, K2, M92, U99, E99, and M92 as described on page 19 by a vote of 7-0-0. Mr. LeLacheur said that this vote would probably bring the use of free cash in the FY 12 budget to about $1 million instead of the previous forecast of $1.5 million. If the HWM budget is precisely right, then the exact use of free cash would be $867,526. Mr. Hechenbleikner added that also in the HWM budget was the removal of health insurance plan design from the collective bargaining process. The Town, School and Light department unions all negotiate health insurance at once with the town management, and that relationship has been very positive for many years. However Mr. Hechenbleikner said that removing plan design would simplify the process going forward. Instructional Motion: Ms. West reviewed the proposed FINCOM instructional motion, and members made some typographical corrections after a brief discussion. The motion will instruct the Board of Selectmen, Town Manager and School Committee to report back to Town Meeting and FINCOM by October 2011 their actions and intentions on specified revenue suggestions 'included as an attached list to the motion. On a motion by Mr. Fardv, seconded by Mr. Berman, FINCOM voted to recommend the Instructional Motion as amended by a vote of 7-0-0. Ms. West wilt make the presentation., Town Meeting Articles 7 & 8 Mr. LeLacheur reviewed the memo from Town Engineer George Zambouras. Chapter 90 funding will be slightly higher than previously announced, now at $597,663 for FY12 - an increase of about $150,000 from last year. On a motion by Ms. Perry, seconded by Mr. Greenfield, FINCOM voted to recommend Article 7 as amended by a.vote of 7-0-0. Mr. LeLacheur reviewed the memo from Town Engineer George Zambouras on the status of the easements for the Safe Routes to School Infrastructure Program Project for Parker Middle School. The appraisal work will cost between $10,950 and $15,600 based on three quotes received that are being evaluated by staff. Mr. Zambouras estimates the 21 easements will be in the range of $100 to $300 each. On a motion by Mr. Greenfield, seconded by Mr. Berman, FINCOM voted to recommend Article 8 b, a vote of 7-0-0. Mr. Arena asked if Town Meeting would be advised of tonight's FINCOM actions on the FY 12 Budget as well as the various Articles. Mr. LeLacheur replied that the Town would provide a one-page handout to describe those actions, and include in the Warrant for those members that had not yet picked up their copy from the Police Station. Approval of Minutes: On a motion by Mr. Torman, seconded by Mr. Walsh, FINCOM voted to approve the minutes from March 30, 2011 by a vote of 7-0-0. On a motion by Mr. Fardv, seconded Ms. Perry. FINCOM voted 7-0-0 to adio urn at 11: 07 PM. Respectfully submitted, Recording Secretary vti ~o~N OFR~q~~,Y -Your Commund Connection '63gaI COA4O~P Summer 2011 Issue Highlights and Insights About Rea4ing's Conilni pity Services YTreUsate www eadinguZa gov 1ntro C1ng . d i \ Introducing Reading Community Alerts, a new way to stay informed about community news and events. Signing up for RCA should take less than five minutes. Please see the Town's website at www.readingnia.gov and select the RCA link to learn how. Follow the simple directions which will ask for what methods of communication you prefer: traditional `land line' telephones, cell phone calls, cell phone text messages and email messages are some of the most popular choices. This new system will allow quick communication with the entire Town in a matter of minutes when compared to over one day with our old system. If you have a land-line, this will be used in the event of an emergency such as the MWRA water problem a year ago. If you join the RCA system online, however, you may change how we communicate with you. For instance, to first call a cell phone, then send an email, then the home phone. You can also select up to eight non-emergency topics around town to follow, including Town News and Community Events, Bulletins from Public Health, Public Safety and Public Works, News from Elder Services, the Public Library and Recreation, and Reminders about Town bill payments. To setup up an account, please be prepared to select an address in Reading (or more than one if you wish to keep up with information about a child's school area or other parts in town). For our non-resident guests, please feel free to select 16 Lowell Street (Town Hall) in order to sign up. Updates will be published on the Town's website and in local media outlets as this exciting new way to stay informed is introduced during the summer. Please feel free to direct any comments or suggestions to communityalerts(),ci.reading.ma.us or call (781)-942-6726. Your Community Connection - Summer 2011 0 OF$ 4M1 e' ' ~wq fs39INC0RQ0~P READING PUBLIC SCHOOLS Preparing Reading's Youth to Be Respectful and Productive John F. Doherty, Ed.D. 82 Oakland Road Superintendent Reading, Massachusetts 01867 Telephone 781-944-5800 Patricia A. de Garavilla Fax 781-942-9149 Assistant Superintendent MEMORANDUM Citizens of a Global Society Mary C. DeLai Director of Finance & Operations Elizabeth Conway Human Resources Administrator TO: Reading School Committee FROM: Mary C. DeLai COPY: John F. Doherty, Ed.D. DATE: July 25, 2011 RE: Recommendation for Award of Contract As you know, on July 8, 2011, we issued an Invitation to Bid for the Construction and Installation of a Glass Panel Veteran's Memorial Wall at Reading Memorial High School. This IFB included detailed specifications on the fabrication of the panels with significant input from Mr. David Michaud, and comprehensive specifications on installation with the details provided by our consulting structural engineer. The bids were due on July 22, 2011. We received two responses on July 22nd including one from Advantage Glass of Cranston, RI, and one from Kapiloff s Glass of Williamstown, MA. The bid response from Kapiloff's Glass was deemed non-responsive as it was received after the 10:00 a.m. bid submission deadline thus leaving us with just the one qualified response from Advantage Glass with an initial contract amount of $63,565. Upon further discussions and negotiations with Advantage Glass, they have agreed to reduce the contract price from $63,565 to $59,000. This was based partly on the rejected bid amount from Kapiloff s Glass of $55,500. We have checked three references provided by Advantage Glass including: • TPB Construction, Cranston, RI • Manchester-Boston Regional Airport Authority, Londonderry, NH, and • International Construction Management Corp., East Providence, RI All gave excellent reviews on the performance, quality of workmanship, and integrity and all stated that they would hire them for future projects and highly recommend them. Therefore, we are recommending that the School Committee authorize the Superintendent to execute a contract for the Construction and Installation of the Memorial Wall at RMHS with Advantage Glass of Cranston., RI. The Reading Public Schools does not discriminate on the basis of race, color, sex, religion, national origin, sexual orientation, age or disability.