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Home My WebLink About1985-11-12 Subsequent Town Meeting MinutesC.1 SUBSEQUENT TOWN MEETING Reading Memorial High School November 12, 1985 The meeting was called to order by the Moderator, Stephen J. O'Leary, at 7:40 P.M., there being a quorum present. 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. Paul C. Dustin presented the status of the "John Street Task Force ", indicating that the Task Force would report on Thursday, November 14, 1985, and that if Articles 11 and 12 were to come up tonight, that they, the Board of Selectmen, would move that these articles be postponed until after that report was given on November 14, 1985. ARTICLE 1. On motion of Paul C. Dustin the following report, presented by Philip B. Pacino for the Finance Committee, was accepted as a report of progress. Mr. Moderator: As FinCom has warned over the last year, the FY87 budget will mark the start of a new period in the Town of Reading finances. With the disappearance of the stabilization fund the Town will embark into a period of limited funds available for Town operations. The Town of Reading will be facing a set of circumstances for the first time that other towns and cities in the Commonwealth have already faced in prior years. As evidence of this "budget crunch" let's look at the next five (5) possible years of the Town operations based on similar assumptions we are operating under for the FY86. BUDGET PROJECTION FY 1987 FY 1988 FY 1989 FY 1990 FY 1991 Prior Year Budget 26,792,394 27,859,768 29,527,912 30,780,713 31,729,154 Pension 250,000 250,000 250,000 250,000 250,000 Group Insurance 100,000 100,000 100,000 100,000 100,000 , Casualty Insurance Debt Service Decrease 200,000 (238,000) (65,000) (74,000) (232,000) (357,500) New Debt Service 590,000 270,000 New Debt Service (261,000) (44,000) (44,000) Decrease Salary Increase 755,375 27,859,768 793,144 29,527,912 832,801 30,880,713 874,441 31,729,154 918,163 32,555,817 Other Appropriations 11900,000 29,759,768 1,900,000 31,427,912 1,900,000 32,780,713 1,900,000 33,629,154 12900,000 34,495,817 Less Receipts ac Revenues 12,300,000 12,100,000 12,100,000 12,100,000 12,100,000 To Be Raised From Levy 17,459,769 19,327,912 21,680,713 21,529,154 22,395,817 Levy Limit Prior Year Levy 15,693,497 16,235,834 16,811,730 17,572,023 18,361,324 2 2Thereon 392,337 150,000 405,896 170,000 420,293 340,000 439,301 350,000 459,033 460,000 New Construction 16,235,834 16,811,730 17,572,023 18,361,324 19,280,357 Surplus (Deficit) (1,223,935) (2,516,182) (3,108,690) (3,167,830) (3,115,460) Sale of Real Estate Funds 590,000 834 000 2,274,690) 790,000 2,377,830) 746,000 2,369,460) 1,223,935) 1,926,182) The FinCom conclusion at the present time on how to properly deal with the problem of limited funds is that we recommend that all budgets for FY87 be level funded. How we decided on this conclusion follows: The FinCom first received input from the Town Treasurer and Town Accountant on FY87 budget increases and decreases and expected revenues. The Assessors gave the FinCom an estimate of the possible new construction for FY86. Subsequent Town Meeting November 12, 1985 0 �) The FinCom asked each board and department to bring to our attention any unusual circumstances which might call for additional funding. The response, although not done by every board and committee, was in some cases very extensive and informative. The FinCom with all this information then attempted to gaze into FY87 and try to, within reason, project what the FY87 funds available and expenditures will be, based on certain knowns and certain assumptions. Receipts and Revenue FY 1986 Stabilization Fund Borrowing Sale of Real Estate Additional State Aid Levy Limit FY 1986 Levy 2'/z Thereon New Construction TOTAL FUNDS AVAILABLE FY 1986 Budget Appropriation Pension Increase Group Insurance Increase Casualty Insurance Increase Debt Service Decrease One Time Special Articles Other Appropriation FY 1986 Water Resource Authority FY 1987 PROJECTION Funds Available $15,693,497 392,337 150,000 FY 1987 PROJECTION Expenditures TOTAL EXPENDITURE TO BE PROVIDED FOR $ 1,850,000 50,000 FY 1987 PROJECTION $12,935,500 (407,000) (204,000) (278,500) 250,000 $12,296,000 16,235,834 $28,531,834 $26,792,394 250,000 100,000 200,000 (238,000) (450,000) $26,654,394 1,900,000 $28,5542394 TOTAL FUNDS AVAILABLE $28,531,834 TOTAL TO PROVIDE FOR 28,554,394 DEFICIT $ (22,560) The $22,000 deficit thus indicates that there is projected no additional funds available to fund increased appropriations. The deficit being small also indicates that under the above scenario major reductions of budgets are not warranted. The FinCom thus after a review of department needs by a vote of 15 -0, recommends that all budgets for FY87 be level funded. The FinCom in the above conclusion has not used any part of the sale of real estate funds to fund the current operations of the Town for FY87. It is the philosophy of the Fin Com that the sale of real estate funds not be used at this time and instead be held to indirectly fund the cost of bonding of new building construction. To do so otherwise at this time might force the situation where the Town would have to fund the bonded construction costs from the current operational budget with no indirect offset for the sale of real estate. This funding in a period of limited funds would certainly force large budgetary cuts and thus have an extremely adverse effect on the Town services. .) • •1 Subsequent Town Meeting November 12, 1985 It should be stated that any projection contains margins of error. The FinCom in its deliberated try to, within reason, project its numbers based on as many knowns as possible. With this in mind let's examine four (4) major unknowns and therefore, assumptions, more closely: 1) Increase in state aid - The FinCom has projected a $250,000 increase. It is possible that more state aid beyond the $250,000 will be received. However, since increases are not sure things, the FinCom for this purpose has deemed that $250,000 is a reasonable estimate at this time. 2) Increase in pension, casualty insurance and group insurance - the numbers projected by FinCom are estimates and could be higher or lower in the final amounts. 3) Special Article - The FinCom has set aside $260,000 for use as special articles. Six Thousand ($6,000) Dollars is for articles that are repetitive in nature, such as Police and Fire indemnification, Police uniforms, Fire uniforms and Police cruiser. The remaining $200,000 is for other special articles that the FinCom views will need to be funded. The FinCom estimate is based on what it knows now. Should a situation between now and budget time occur that requires attention, the FinCom estimate would be obsolete. 4) Additional revenue - The FinCom has projected no additional revenue except an increase in state aid. It is possible there will be additional revenue. For this projection the FinCom deemed it inappropriate to speculate on this point. Additionally, the FinCom, as part of their recommendation, strongly urges that all Town departments review all possible sources of revenue they can raise for the Town and take all appropriate steps to increase that revenue. As the assumptions become known, the full picture of Town finances will become clearer. The projection and the recommendation therefrom should be viewed as a first step in the budget planning process. In prior years the Town of Reading has been able to sidestep the effects of the limits of Prop 2'/z by carefully planning and allocating the Town's resources. In an effect to continue this prudent process, the FinCom requires that all budgets for FY87 be submitted to the FinCom by December 31, 1985. The FinCom must be aware of all the budget amounts at the start of the decision process and thus will not allow any exceptions to this deadline. The FinCom will review each budget, judge it based on the merits contained therein and make appropriate recommendations to Town meeting. The FinCom during this process will attempt to compare department needs against one another and set a spending course the Town can live with. If and when the financial picture of the Town indicates that there will be additional funds available beyond these the FinCom now projects, the FinCom will look to allocate these funds on a priority basis. However, it should be cautioned that at the present time to base spending decisions on funds that are questionable of receipt, could lead to far greater problems then basing spending decisions on an under estimate of funds. I conclude with the following thoughts. The budget for FY87 for reasons detailed above, will be unlike the budget of any previous year. The guidelines the FinCom has issued could be interpreted as harsh. However, based on current facts the FinCom believes that the guidelines represent a just and logical plan to deal with the problem of limited funds. With these guidelines, we will have continued to commit ourselves to doing the best that is possible within the restraining direction of those who provide the money we spend and who are the Town of Reading. Subsequent Town Meeting November 12, 1985 363 ARTICLE 1. On motion of Paul C. Dustin it was voted to lay Article 1 on the table. ARTICLE 2. On motion of Paul C. Dustin it was voted to lay Article 2 on the table. ARTICLE 3. On motion of Philip B. Pacino it was voted that Article 3 be indefinitely postponed. ARTICLE 4. On motion of Philip B. Pacino the following Capital Outlay Plan was voted in the Affirmative. PROPOSED CAPITAL OUTLAY PLAN 1986- 1991 ESTIMATED APPROPRIATIONS, IN THOUSANDS OF DOLLARS PROJECTS FUNDED BY TAX LEVY FY 1986 FY 1987 FY 1988 FY 1989 FY 1990 FY 1991 COMPUTER Lease 53.5 53.5 15.8 35.0 BUILDING MAINTENANCE Building Improvements 15.4 25.0 25.0 25.0 25.0 25.0 Replace Truck 12.0 DOG OFFICE Replace Truck 4.0 POLICE DEPARTMENT Traffic Lights 25.0 200.0 225.0 Radio Equipment 5.0 5.0 5.0 5.0 Radar Guns 1.2 1.2 1.2 Computer 25.0 FIRE DEPARTMENT Fire Station 1500.0 Replace Engine 140.0 Replace Ambulance 65.0 Vehicle Replacement 13.0 13.0 50.0 250.0 Foam Bank 5.0 Jaws of Life 10.0 SCHOOLS School Data /Word Processor 35.0 35.0 35.0 35.0 35.0 35.0 Roof Replacement 261.8 100.0 193.0 146.9 136.5 150.0 Space Remodeling 37.4 20.0 20.0 Oil Burner Replacement 24.0 12.0 12.0 12.0 Chapter 504 11.5 26.5 10.0 10.0 Bobcat Replacement 16.0 Central Office Relocation 100.0 Energy Related Projects 25.0 25.0 Vehicle Replacement 12.0 12.0 12.0 Athletic Storage Building 15.0 Remodeling for Declining Enrollm ent 60.0 Domestic Hot Water Conversion 11.5 6.5 6.5 PUBLIC WORKS Garage 3700.0 Storm Drain Construction 136.9 160.0 160.0 160.0 160.0 160.0 Roadway Overlay 58.0 60.9 64.0 67.2 70.5 Roadway Reconstruction 183.3 240.0 240.0 240.0 240.0 240.0 Equipment Replacement 120.0 135.0 240.0 210.0 95.0 129.0 Sewer System Reconstruction 42.8 Sidewalk Construction 15.0 Parks and Playgrounds 28.3 35.0 55.0 32.0 60.0 Street Betterments (Accept.) .5 20.0 20.0 20.0 20.0 20.0 CEMETERY Cemetery Improvements 15.0 15.0 10.0 10.0 10.0 10.0 Equipment Replacement 20.2 13.0 3.0 3.2 25.0 LIBRARY Library Roof do Gutters 80.0 364 Subsequent Town Meeting November 12, 1985 PROJECTS FUNDED BY TAX LEVY FY1986 FY 1987 FY 1988 FY 1989 FY 1990 FY 1991 RECREATION Pool 25.0 50.0 150.0 MUNICIPAL SPACE BLDG. COMM. Old Town Hall /Library Const. 1965.0 PRIOR YEARS PROJECTS FUNDED BY BORROWING 1219.9 1043.4 995.5 937.8 722.8 382.5 TOTAL PROJECTS 6150.5 5643.1 2501.7 2361.6 1768.5 1473.2 INCOME Sale of Cemetery Lots 15.0 15.0 10.0 10.0 10.0 10.0 School Construction - State Aid 172.2 172.2 172.2 168.1 116.9 57.4 TOTAL TO BE RAISED BY TAXATION 5963.3 5455.9 2319.5 2183.5 1641.6 1405.8 TOTAL TAX VALUATION (Millions) 657.7 677.7 683.7 689.7 695.7 701.7 EFFECT ON TAX RATE 9.07 8.05 3.39 3.17 2.36 2.00 PROJECTS FUNDED BY PUBLIC ENTERPRISE FUNDS WATER Development of Wells 100.0 100.0 100.0 100.0 Water Dept. Prior Borrowings 324.7 263.2 246.0 228.8 211.6 194.4 MUNICIPAL LIGHT DEPARTMENT 1970 Enlarge Lighting Plant 39.9 38.1 36.3 34.5 32.7 30.9 New Power Feeder Station 123.4 118.2 113.0 107.8 102.6 ARTICLE 5. On motion of Eugene R. Nigro it was voted that Article 5 be indefinitely postponed. ARTICLE 6. On motion of Bayard R. Lincoln it was voted to amend "Schedule B - Compensation Plan" of Article XXIV of the By -Laws of the Town by deleting the existing pay ranges and substituting therefor the following, effective July 1, 1985, or take any other action with respect thereto: Grade Min. ya Pt. Mid. Max. 1 158.76 168.68 178.60 198.45 2 175.14 188.26 201.39 227.64 3 201.60 216.72 231.84 262.08 4 227.22 245.70 264.18 301.14 5 255.78 278.15 300.51 345.24 6 286.65 313.90 341.15 395.64 7 322.98 356.90 390.81 458.64 8 363.72 403.73 443.73 523.74 9 407.82 456.75 505.68 603.54 10 460.74 519.44 578.13 695.52 11 520.38 590.63 660.87 801.36 12 583.38 668.01 752.64 921.90 ARTICLE 7. On motion of Bayard R. Lincoln it was voted to amend "Section 7 - Benefits and Working Conditions" of Article XXIV of the By -Laws of the Town by adding the following to subsection "(I) Longevity," to be effective July 1, 1985, or take any other action with respect thereto: 11$500 annually upon completion of twenty -five years of service." ARTICLE 8. On motion of Bayard R. Lincoln it was voted to amend subsection "(A) Sick Leave," of "Section 7 - Benefits and Working Conditions" of Article XXIV of the By- Laws of the Town by deleting the seventh paragraph which reads: Subsequent Town Meeting November 12, 1985 365 "Effective July 1, 1980, upon termination, (except termination by the Town for just cause) after 7 years of employment, at retirement or death, an employee shall be paid for unused sick leave not exceeding 90 (ninety) days at 50% (fifty per cent) of his daily rate of pay in effect at the time of termination." and substituting the following: "Effective July 1, 1985, upon termination (except termination by the Town for just cause) after 7 years of employment, at retirement or death, an employee shall be paid for unused sick leave not exceeding 100 (one hundred) days at 50% (fifty per cent) of his or her daily rate of pay in effect at the time of termination." or take any other action with respect thereto. ARTICLE 9. On motion of John H. Russell it was voted that the Town amend Article VI, Section 3 of the By -Laws of the Town of Reading by deleting the phrase "Twenty Thousand Dollars ($20,000)" wherever it appears in said Section 3 and substituting therefor the phrase "Twenty Five Thousand Dollars ($`25,000)." ARTICLE 10. On motion of Mary S. Ziegler it was voted that the Town reduce the membership of the Advisory Committee on Hazardous Waste as reorganized by vote under Article 10 of the Warrant for the November 12, 1981 Subsequent Town Meeting, so that said Committee shall be composed of not less than five citizens of the Town of Reading to be appointed by the Board of Selectmen. Such reduction in size to be effective July 1, 1986, or upon such earlier date as the Board of Selectmen shall have received resignations from such existing members of said Committee, which resignations reduce the numbers of remaining members to five. ARTICLE 11. On motion of Paul C. Dustin it was voted to lay Article 11 on the table until after the "John Street Task Force Report" on November 14, 1985. ARTICLE 12. On motion of Paul C. Dustin it was voted to lay Article. 12 on the table until after the "John Street Task Force Report" on November 14, 1985. ARTICLE 13. On motion of Paul E. Landers it was voted that the Town of Reading amend Article XXI, Public Conduct, of the By -Laws of the Town of Reading by adding a new "Section 7 - Creating a Hazard" which shall read as follows: Section 7. No person shall, except as authorized or required by law, remove, alter the position of, deface, or disturb in any manner, any barrier, sign, manhole cover or grating placed or installed for the purpose of eliminating or mitigating a public safety hazard or potential hazard in or on any street, sidewalk, or public place within the Town. ARTICLE 14. The following motion made by George A. Theophanis that the Town of Reading vote to amend the General By -Laws of the Town as follows: 1. Add a new Article XXXVII as follows: ARTICLE XXXVII WARRANT COMMITTEE Section 1. There shall be a Warrant Committee consisting of the chairmen of the Precincts. Section 2. The Warrant Committee shall assist the Moderator of the Town Meeting as he may require and shall compile the warrant report. The Warrant Report is intended to inform Town Meeting Members of the purpose of each warrant article and reasons offered for its passage or defeat. It shall include each warrant article accompanied by a brief explanation of its origin and purpose, other explanatory material, such as charts, graphs and maps, the recommendations of the Finance Committee, By -Law Committee and other standing committees of the Town Meeting, other matters appearing in the Finance Committee report and the recommendations from government bodies desiring to render such recommendations. 366 Subsequent Zbwn Meeting The Warrant Committee government bodies on warrant articles as warrant report. November 12, 1985 shall solicit recommendations from it deems appropriate for inclusion in the The Warrant Committee shall promulgate rules as to the format and time of submission of reports for inclusion in the warrant report. Section 3. The Town Clerk shall mail said warrant report to each Town Meeting Member at least seven (7) days prior to the first adjournment of the Annual Town Meeting, at least seven (7) days prior to the second Monday in November, and at least four (4) days prior to any Special Town Meeting. 2. Amend Article III by deleting Section 7 in its entirety and replacing it by a new Section 7 as follows: Section 7. The Finance Committee shall make a written recommendation on all Articles that it has considered and shall submit such recommendations in a report to the Warrant Committee on or before a time specified by the Warrant Committee. 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 estimated tax rate based on such recommendations. 3. Amend Article XXXI by changing in Section 3 the words "Finance Committee report as specified in Section 7 of Article III of these By- Laws," to "Warrant report on or before a time specified by the Warrant Committee." 4. The By -Law changes adopted by this vote shall be effective for the first Subsequent Town Meeting following their approval by the Attorney General. The above motion was voted in the Negative. ARTICLE 15. On motion of Douglass L. Barker it was voted that Article 15 be indefinitely postponed. ARTICLE 16. On motion of Douglass L. Barker it was voted that Article 16 be indefinitely postponed. ARTICLE 17. On motion of John W. Price it was voted that the motion under this Article, presented by Douglass L. Barker, be laid on the table until after Article 34. ARTICLE 18. On motion of Douglass L. Barker it was voted that Article 18 be indefinitely postponed. ARTICLE 19. On motion of Robert L. Nordstrand it was voted to indefinitely postpone Article 19. ARTICLES 20 - 25. On motion of Paul C. Dustin it was voted to lay Articles 20 - 25 on the table until after action taken on Articles 11 and 12. ARTICLE 26. On motion of Clifford D. Allen it was voted that the Town accept the minimum salary provisions of Section 40 of Chapter 71 of the General Laws of Massachusetts and the corresponding provisions of Sections 16 and 17 of Chapter 188 of the Acts of 1985 relating to said minimum salary provisions. ARTICLE 27. On motion of Clifford D. Allen it was voted that the Town accept Section 13 of Chapter 188 of the Acts of 1985 relating to professional development grants. On motion of Robert P. Griffin it was voted that this meeting stand adjourned to meet on Thursday, November 14, 1985, at 7:30 P.M. in the Reading Memorial High School auditorium. Meeting adjourned at 10:40 P.M. 132 Town Meeting members were present. A true copy. Attest: Lawrence Drew Town Clerk