HomeMy WebLinkAbout1983-11-14 Subsequent Town Meeting Minutest t_
SUBSEQUENT TOWN MEETING
Reading Memorial High School
November 14, 1983
The meeting was called to order by the Moderator, John W. Faria, at 7:30 P.M. there
being a quorum present.
The Warrant was partially read by the Town Clerk, when on motion of John H. Russell
it was voted to dispense with further reading of the Warrant except the Officer's Return
which was then read by the Town Clerk.
The Invocation was given by the Rev. E. Lewis MacLean of the Church of the Nazarene,
followed by the Pledge of Allegiance to the Flag.
ARTICLE 1. On motion of John H. Russell the following report, presented by Russell
T. Graham for the Finance Committee, was accepted as a report of progress.
FINANCE COMMITTEE REPORT
As we begin this marathon Fall Town Meeting it might be helpful to update the
financial status of the Town of Reading.
The first sheet before you reflects the maximum levy available to us under the
restraints of Proposition 2yz.
Our maximum tax levy for FY 1985 is $14,944,730 an allowable tax increase of
$413,286.00.
Against this we have estimated increases in costs, reductions in expenses where
possible and reductions in receipts and revenues.
MAXIMUM LEVY LIMIT FY 1985
FY 1984
+2.5%
New Construction
FY 1985 - Maximun Tax
14,531,444
363,286
50,000
413,286
14,944,730
This sheet illustrates the changes estimated against FY184 and demonstrates
dramatically the dilemma in which we find ourselves.
Without Any Increase in the operating budgets of the Town departments we have a
deficit of 97,867.00.
REVISION WITH ESTIMATED CHANGES
Appropriation FY 84 24,010,884
Increased Expenses Pension +300,000
Reduced Expense - Debt Service Inc. - 99,727
Reduced Expense - 53rd P.W. - 86,738
24,124,419
Add: Other Local, County & Overlay 1,815,496
Gross Amount to be Raised $ 25,939,915
Deduct: Receipts & Revenues 1984 (exc. stabilization) 11, 060, 038
Add: Sale of Tax Possessions
+77,300
Increase Local Revenue
+44,980
Deduct: Reduction Free Cash
-185,000
Use of Overlay Reserve
-100,000
$ 10,897,318
Amount to be raised by Taxation
$ 15,042,597
Maximum levy under prop 2%i
14,944,730
Deficit
(97,867)
Subsequent Town Meeting
November 14, 1983
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The Town immediately faces the problem of how to fund for any increase in FY 1985,
a negotiating year. The Finance Committee after long and agonizing debate would advise
that roughly half of the stabilization fund be used with our strong recommendation that any
available increase in State aid be returned to the stabilization fund as we did last year.
FinCom is hesitant to assume an increase in State aid. For every informed source who will
predict an increase, one can find another informed source who will, with equal fervor,
predict no increase, or caution that any increase will be slanted towards those municipalities
less economically sound than is Reading.
Our decision to advise using the stabilization fund is predicated on two areas.
To not use the stabilization fund would begin a dramatic cutback in services to the
community, which seems to us unacceptable when the Town has money specifically put to
one side for use.
To use too much of the stabilization fund would be to not recognize the possibility of
emergency and would further place our upcoming years in serious jeopardy as the noose of
2'/z grows tighter.
After a close analysis of the figures the only way of affording any increase would be
for the School Department to level fund as a result of the closing of the Pearl Street School
and for the Town to use $329,000 of the stabilization fund replaceable to the fund if State
aid is increased.
This action would allow a 2yz% increase of all operating budgets salaries and expenses.
The School Department by retaining the same dollars as the previous year without the
expense of the Pearl Street School, would have an increase comparable to the other
departments since savings on Pearl Street will be between $300,000 to $400,000.00.
Here is what the picture would look like under that set of guidelines.
FY 1985 ESTIMATES FOR PRIORITIES & GUIDELINES
AoDroDriations
General Government
1,173,456
Public Safety
3,022,144
Education
11,170,690
Highway, Street, Sanitation
3,475,558
General Service & Environment
847,910
Unclassif ied
4,666,686
24,356,444
Add:
Other Local Approp. (offset)
254,696
County Charges
304,366
State Charges
806,434
Overlay Reserve Abatement
450,000
1.815.496
Gross Amount to be Raised $ 26,171,940
Deduct Estimated Receipts & Revenues
Free Cash 250,000
Available Funds 1,173, 494
Revenue Sharing 550,000
Sale of Tax Possessions 77,300
Local Receipts 4,413,422
State Receipts (cherry sheet) 4,433,102
Stabilization Fund 329,872
11.227.210
Amount to be Raised by Taxation $ 14,944,730
FY 84 Tax Raised 14,531,444
+ 2.5% 363,286
New Construction 50,000
$ 14,944,730
J'
Subsequent Town Meeting
We must stress two points here.
November 14, 1983
One: we are again dipping into the stabilization fund for a significant amount of money. We
should bear in mind that the stabilization fund is not a bottomless pot nor is increased State
aid a limitless promise cast in stone.
Two: We are able to level fund our education budget because of the closing of a school.
The School Department cannot continue to close schools nor can it be expected to
level fund its budget and at the same time offer quality education to Reading. The
commitment to education so much emphasized by so many has not been met with an equal
commitment to fund that goal and the problems created by that lack of detail is a problem
that must be faced by our society as a whole.
In our guideline meeting with Departments and Boards (categorized by one of our more
proficient Town officials as the Annual Fall Wake) we asked them to think long and hard on
the effects on our budgets if we did not have the stabilization fund so astutely recommended
by our Town Treasurer or if the closing of the Pearl Street school was not possible.
We asked that as they reflected they remember that some day it will in fact be the
case, perhaps as early as next year.
It is, however, unfair to expect those Boards and Departments to reflect on those
problems alone, for in the final analysis the answers and decisions mandated by Proposition
2Y2 lie not only in their hands but far more in your hands. It is Town Meeting which
ultimately must decide how and where the available funds will be spent. It is Town Meeting
and Town Meeting alone who, by its votes, decides the priorities of the Town.
Let there be no question in any of our minds, Proposition 2Y� is here and its effects will
be felt. For the Town not to begin to set about priortizing its operations would be an act of
criminal mismanagement.
The Finance Committee, as your primary advisory board, has urged each Board and
Department to set about priortizing its operations so that when cuts do come, and come
they will the Boards will be prepared to put first things first.
If any would delude themselves that somehow Reading will not feel the effect of
Proposition 2Yz, let them awake from that dream and join us in preserving the needs of our
community. The Finance Committee pledges to Town Meeting, whom we serve, that you
will receive recommendations of priorities of expenditures based hopefully on the imput of
all Boards and Departments but in any case receive them you will. We will not abdicate the
responsibilities entrusted to us by you.
On its part, Town Meeting must be prepared to face the realities of Proposition 2Yz.
There are innumerable Articles on this Town Warrant which will allow us to face up to many
problems that have plagued the Town for far too long. This Town Meeting has the
opportunity to make some long overdue decisions and to set the tone for many decisions to
f oll ow.
FinCom has been asked by some Town Boards and Town Meeting members to make a
long range forecast of the impact that 2Yz will have on the community so that Town Meeting
can see clearly the problems ahead and view dramatically the need to face those problems.
We do so wit h
estimates available
such estimates are
caveat in mind,
Proposition 2Y2.
FY 86
Possible Increase
Pension Costs
Group Insurance
Decrease
Revenue Sale Tax Poss
Impact
some degree of hesitation, for we have always been careful to use only
to us from informed sources (i.e. service cost from the Treasurer) and
clearly not available beyond a one year time span. However, with that
we have attempted a three year approximization of the effects of
EFFECTS OF PROPOSITION 2Yz
FY 86, 87, 88
FY 87 FY 88
$ 360,000 Pension 300,000 Pension 300,000
+50,000 Group Insurance 30,000 Group Insurance 30,000
+410,000 330,000 330,000
Impact
77,300
+487,300
Subsequent Town Meeting
Tax Levy Available
14,944,730
x 2.5%
Impact
373,618
New
Const
423,618
487,300
423,618
63,682)
50,000
r }
November 14, 1983
Tax Levv Available
15,368,348
434,209
X 2.5%
330,000
Impact
384,209
104,209
Deficit
50,000
434,209
Tax Levv Available
15,802,577
460,064
X 2.5%
330,000
Impact
395,064
130,064
Avail.Inc.
65,000
460,064
se 100,000 of Stabil.Fund $ 36,318 No use of Stabil. Fund No use of Stabil. Fund
Inc.
1/10 of 1% Increase Allowable 4/10 of 1% Increase 5110 of 1% Increase
Allowable Allowable
To look at the effect we must first look at certain aspects of our budget.
We are, of course, salary intensive. Here is the payroll of the Town - a staggering 56%
of our expense.
TOWN OF READING PAYROLL
TOTAL PAYROLL
TOTAL EXPENDITURE INCLUDING PAYROLL
$ 13,500,000.00
$ 24,010,884.00
PAYROLL REPRESENTS 56.2% OF EXPENDITURES
In the School Department, our largest department, payroll represents 81.2% of total
school expense. Therefore, whenever we discuss reductions or attempt to analyze expenses,
it is payroll which will repeatedly come to the forefront.
Total Payroll
PAYROLL CHANGE ANALYSIS
$ 135,000.00
270,000.00
405,000.00
540,000.00
675,000.00
$ 13,500,000.00
A second area of interest is that portion of our budget over which we have virtually no
control.
APPROPRIATIONS
NO CONTROL
RETIREMENT 1,273,218
UNEMPLOYMENT COMPENSATION 30,000
GROUP INSURANCE 809,409
DEBT REPAYMENT 1,130,000
INTEREST 530,357
VETERANS AID 45,000
3,817, 84
16% OF TOTAL APPROPRIATIONS
16% of our total appropriations are for items we must fund, not including those
inserted in departmental budgets (such as elections).
These two categories, payroll and "absolutes" thus represent 72% of our
appropriations. It is of interest that it is in pensions and group insurance that we have been
hardest hit.
If expenses in these areas were to increase at the same level and all else were to
remain the same then we might approximate the following effect on the next three years
operations.
We can immediately see that the slightest increase in either payroll and /or expenses
would create the need for dramatic reductions in other areas to support them. The need for
reduction becomes clear and the need for priorities virtually leaps out at us.
I stress again that these are approximations for purpose of discussion. But under
almost any conceivable set of like circumstances, the noose of Proposition 2S4 draws tighter
and tighter and the need to respond to it becomes even more self - evident.
Subsequent Town Meeting
November 14, 1983
What are we to do? Certain actions can and should be taken to help alleviate the
problem.
1) The tax base of the town can and should be extended. The effects taxes can have
on just the BPW land alone clearly dramatize how industrial tax relief can help the
community - let us remember new construction is exempt from the provisions of Prop. 2Y2.
The positive economic effect - new buildings and the hopeful attraction of business to
Reading could prove to be the salvation of many of our problems.
2) Fees and charges, wherever in place, must be kept up to the economic reality of
our times, and where fees and charges are not being levied, examination and serious
consideration must be given to their implementation.
3) Space. Whenever and wherever Town owned buildings are not being used, or being
used in such a limited fashion as to make it economically inefficient, then let us face that
fact and let us turn that unneeded and /or unusable space into cash to be used for the
continuation of the essential services of our community.
That simple common sense maxim is one of the unpleasant facts that Proposition 2Yz
now forces us to face head on. We can no longer afford the luxury of ignoring it.
4) Bonding of previously budgeted amounts. It is possible that Public Works capital
projects previously budgeted may have to be bonded. This, however, is a short term solution
and in effect is the mortgaging of our future.
5) The actual elimination of services. Each Board and Department, as a part of its
priority setting mission, should seek out those services it now offers which can be eliminated
without affecting the basic purpose of its department.
All of this makes for difficult times and difficult decisions, but like it or not, these are
the cards that have been dealt to us and our one, our only alternative is to deal with the
facts as they exist.
With some common sense, a great deal of management and a defined intelligent
approach we can survive under Prop. 2Yz, but we must begin that approach NOW. We must
begin to prepare for the effects of .Prop. 2Yz, not wait and irrationally respond with far too
little - far too late.
ARTICLE 1. The following report, presented by Curt E. Nitzsche for the Industrial
Development Commission, was accepted as a report of Progress.
INDUSTRIAL DEVELOPMENT COMMISSION
Last May this body granted the Industrial Development Commission funds to perform
hydrogeologic studies at the John Street landfill. The purpose of the study was to evaluate
the potential for contamination of water resources by leachate from the landfill. In
addition, we desired information on the presence of methane gas and subsurface conditions
which would affect foundation design of future development.
Subsequently, the IDC engaged the firm of Whitman & Howard, Inc. of Wellesley, MA
to conduct the necessary tests. Whitman & Howard's field investigations at the John Street
landfill included test borings with ground water quality monitoring wells and test pits. They
took water samples from each well and collected water samples from various surface water
locations and also, at this time, collected data on methane gas concentration.
Whitman & Howard's report concluded that approximately 30 feet of trash fill has been
placed at the site. Underlying soils consist of peat underlain by fine sand, silt, sand and
gravel. The surface of the granite bedrock varies from 25 to 70 feet below this site.
Water quality testing shows only limited to moderate impact by this landfill site.
Interestingly enough, Whitman & Howard's tests indicate that the water from MW #6 and
OW #1 indicate more contamination entering this site than emerging down stream at MW
#4.
Consequently, Whitman & Howard's report concluded that we do have a site that can
be developed and has made recommendations to us which would keep this project progressing
in a logical manner.
Subsequent Town Meeting November 14, 1983
The Industrial Development Commission feels that now is the time to develop a basic
concept which can guide the Department of Public Works and the Industrial Development
Commission in how to continue filling the landfill and preparing for final closure.
In conclusing, the IDC will be looking very carefully at all theland in this area and I
would expect we will be coming before Town Meeting in the Spring to request funding to
continue this program.
Curt E. Nitzsche, Chairman
Industrial Development Commission
ARTICLE 1. On motion of John H. Russell it was voted to lay Article 1 on the table.
ARTICLE 2. Nils L. Nordberg moved the November 21st, 1983, session be held at
Pearl Street School. This motion is held in abeyance until November 17th when the
Moderator can give a report on availability of the Pearl Street School auditorium.
ARTICLE 2. On motion of Leslie H. York it was voted to send a letter of
appreciation to Paul T. Metcalf for his service as a Town Meeting member.
ARTICLE 2. On motion of John H. Russell it was voted to lay Article 2 on the table.
ARTICLE 3. On motion of Maureen T. O'Brien it was voted that the Town amend
"Overtime compensation" of Section 4 of Article XXIV of the By -Laws of the town by
deleting the existing wording which reads as follows:
"Salaried employees are not paid overtime compensation.
Employees whose customary work week is thirty -seven and one half hours shall be paid
for overtime at the rate of straight time for hours worked in excess of thirty -seven and one
half in any given work week through forty hours, thereafter at time and one half the basic
hourly rate.
Employees whose customary work week is forty hours, overtime at the rate of one and
one half the basic hourly rate shall be paid for hours worked in excess of forty hours in any
one week.
Compensatory time off may be given at the same aforementioned rates."
and substituting the following:
"Salaried employees are exempt from payment for overtime.
Overtime at the rate of time and a half shall be paid to non - emempt employees for the
number of hours worked in excess of forty or thirty -seven and one half hours whichever is
the regular work week of an employee.
By mutual agreement between a department head and an employee, compensatory
time in lieu of cash may be substituted on an hour for hour basis."
ARTICLE 4. On motion of Maureen T. O'Brien as amended by Nils L. Nordberg it was
voted that the Town amend sub - section (H) vacations of Section 7, Benefits and Working
Conditions of Article XXIV of the By -Laws of the Town by deleting the third paragraph
which reads:
"Vacations must be taken within the calendar year and cannot be accumulated from
year to year, except under emergency conditions brought about by conditions of
employment. Such cases shall be approved by the Department Head."
and substituting the following:
"With the approval of the Department Head, an employee may carry over up to one
week vacation f rom any one calendar year to the next, provided the carried -over vacation is
used prior to June 30th."
ARTICLE 5. On motion of Maureen T. O'Brien it was voted that the Town amend
Section 7, Benefits and Working Conditions, of Article XXIV of the By -Laws of the Town, by
adding the following sub - section:
(J) PERSONAL LEAVE
Any employee in full -time employment shall be eligible for personal leave of one (1)
paid day per year for the purpose of atending to important personal affairs that cannot be
accomplished on any other day, such as required court appearance, attending a marriage or
other religious ceremony of a close relative, or being party to a real estate transaction. The
taking of such leave shall be subject to authorization by the employee's Department Head.
n r
Subsequent Town Meeting November 14, 1983
Unused Personal Leave shall accumulate at the rate of one (1) day per fiscal year to a
maximum of two (2) days.
ARTICLE 6. On motion of John H. Russell it was voted to lay Article 6 on the table
until after Articles 7 through 11.
ARTICLE 7. Paul E. Landers moved that the Town vote to authorize, empower and
instruct the Board of Selectmen to sell the following described parcel of land located on the
Southwesterly side of John Street, in Reading, Massachusetts, on such terms and conditions
as they may negotiate with Earle B. Kaufman et al, owners of Lot 1, Assessors' Plat 46.
A certain 20 -foot strip of land presently owned by the Inhabitants of the Town of
Reading, located on the Northwesterly portion of Parcel 2, Assessors' Plat 46, and bounded
and described as follows:
Northwesterly: By the Southeasterly boundary line of land of Earle B. Kaufman et al
and shown as Lot 1 on said Assessors' Plat 46.
Northeasterly: by John Street on said Plat 46, a distance of 20 feet.
Southeasterly: by other land of the Town of Reading shown as Parcel 2 on Assessors'
Plat 46 on a line parallel to and for the length of the boundary line of said Parcel 1 on said
Plat 46.
Northwesterly: by other land of the Town of Reading shown as Parcel 2 on Assessors'
Plat 46, a distance of 20 feet to the corner bound where Parcel 1 on Assessors' Plat 46
meets the Southeasterly corner bound of land of General Tire and Rubber Company, shown
as Parcel 2 on Assessors' Plat 45.
Said parcel contains 14,600 square feet more or less.
Permission was granted to discuss Articles 7 through 11 together at this time.
On motion of John H. Russell it was voted that this meeting stand adjourned to
meet at 7:30 P.M. on Thursday, November 17, 1983, in the Memorial High School
auditorium.
Meeting adjourned at 11:00 P.M.
163 Town Meeting members were present.
A true copy. Attest:
rence Drew
Town Clerk