HomeMy WebLinkAbout2010 Annual Report - Part 1 Town of Reading
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ANNUAL REPORT
2010
2010 Annual Report
Table of Contents
Page No.
TOWN MANAGER
2010 Annual Letter. ............................................................................. 1 -2
ACCOUNTING AND FINANCE DEPARTMENTS
Accounting Department ..................................................................... 3
FinanceDepartment .......................................................................... 3 -4
Finance: Assessment Division ............................................................ 4
Finance: Collection Division ............................................................... 4-5
Finance: General Division ......................... 5
General Finance: Trust Funds ......... 5-6
Finance: Human Resources Division ...................................................... 6
Finance: Technology Division ...........................................*................... 6-7
Finance: Town Clerk ........................................................I................ 8- 15
Finance: Trust Funds ......................................................................... 16- 17
Report of the Town Collector ...........I.................................................... 18 —22'
FY 2010 Real Estate Abatements ............ 23 -24
FinancialStatements ........................................................................... 25- 104
COMMUNITY SERVICES DEPARTMENT
Boardof Selectmen .................................................................................. 105- 108
ConservationDivision ....................................................................... 109- 111
Elder/Human Services ....................................................................... 112- 118
HealthDivision ............................................................................... 119- 123
InspectionsDivision .......................................................................... 124
Zoning Board of Appeals .................................................................... 124
PlanningDivision ..............................�..I.............................................. 125- 127
Veterans' Services Division ................................................................. 128
TownCounsel .........................................I........................................ 129- 130
TheArc of Middlesex ........................................................................ 131 - 1 1 32
Historical Commission ........................................................................ 133
LandBank Committee ....................................................................... 134
Metropolitan Area Planning Council (MAPQ ........................................... 135- 141
Mystic Valley Elder Services ............I.................................................. 142- 143
TrailsCommittee ..................................................................4............ 144- 146
West Street Historic District Commission....................................... ....... 147
HOUSING AUTHORITY
Report ...............................................I........................................... 148- 155
LEGISLATIVE BODY
Town Meeting Reports and Voting Results ................................................ 156-450
Organization.Chart ............................................................................ 451
READING PUBLIC LIBRARY
Report .......................................................................................... 452-463
PUBLIC SAFETY
Fire Department . 464-469
Police Department . ........ ......... 470-478
AnimalControl ....... ........................................... 474
Parking Enforcement officer .......................................................*........ 475
Reading Coalition Against Substance Abuse(RCASA) ................................ 479-483
PUBLIC WORKS DEPARTMENT
Director's Report ............................................... ............................... 484
Administration Division .........................................................I............. 484-485
CemeteryDivision ........................................................................... 486
Custodian of Soldiers' and Sailors' Graves ............................................... 486
Engineering Division ................. 486-488
HighwayDivision .............................................................................. 488-489
Forestry: Tree Warden's Report ............................................................. 489-490
ParksDivision ................................................................................. 490
Water Distribution Division ................................................................. 490
Sewer Distribution Division ................................................................. 491
WaterSupply Division ....................................................................... 491 -493
RecreationDivision .......................................................................... 494-500
SCHOOL DEPARTMENT
Superintendent's Report ............................ ... 501 -551
.Northeast Metropolitan Regional Vocational School .................................... 552—566'
BOARDS, COMMITTEES AND COMMISSIONS
Report .......................................................................................... 567-575
TOWN MANAGER'S ANNUAL LETTER
TO: Residents of the Town of Reading
Dear Fellow Residents:
The Town of Reading Annual Report for the calendar year 2010 is attached. This report details
some of the highlights of the many activities in Reading this past year. Some of these activities
are very obvious—the improvement of streets, the renovation of Memorial Park—but most of the
activity is pretty invisible if done well.
Much of the cominuiuty's attention during the year has been focused on things other than the
activities of their local government. The global financial condition, with its effect on local
residents has taken much of the attention away from local events. 2010 saw some positive signs
of coming,out of this deep recession, but there is a great deal more that needs to happen to retuni
to any semblance of where we all were financially two or three years ago. The same is true of
your local government, except that it will take a dozen years to recover, and even then we will
have lost some of our services that we have all become accustomed to.
During 2010, we continued to be an active community, and some of the highlights in 2010
include:
• A very successful second annual Reading Fall Street Faire;
• The Town has completed a number of major road projects: Juniper Circle, North Street
and Pinevale Avenue; and also portions of Bear Hill Road, Arlington Street, Harrison
Street, Haverhill Street, Marla Lane and Temple Street;
• Property master plans for Joshua Eaton School park/open area and the Town Forest
Stewardship have been completed;
• Memorial Park improvements have been completed thanks to the generous contribution
of Nelson and Rita Burbank and a number of other local residents and businesses;
• Economic Development activities continued strong in spite of a weals economy
nationally. Several new businesses including Sam's Bistro, Grumpy Doyle's and'The
Wine Bunker have been approved, started construction and/or opened in Reading during
the year;
• Town Meeting approved a Zoning Bylaw amendment to allow A-Frame signs in the
Business B Zone to promote a pedestrian friendly community that supports businesses;
• In an effort to increase recycling and reduce rubbish disposal cost, changes were made to
the Rubbish Rules and Regulations to allow for mandatory recycling on a weekly basis,
curbside leaf collection and other user friendly changes;
• The Town continues to maintain its sound financial picture even with a weak (but
strengthening) local and national economy.
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We all take these efforts and the ongoing delivery of services for granted. The routine and non-
routine services continue to be delivered, and the employees and volunteers of the community do
the ordinary and extraordinary things that make this Town thrive. All of these things are done by
the dedicated men and women who work for the Town of Reading as employees and as
volunteers.
This Annual Report is dedicated to all of the men and women
who work and volunteer for their community of Reading.
For those who have need for detailed information about the Town of Reading, we hope this
Annual Report will be complete and valuable for you. It provides a good historical record of
what has happened in the Town of Reading in calendar year 2010
We welcome any questions, suggestions or comments that you may have with regard to this
report, or to the provision of the services within the community. You can address them to me at
townmanager a,cl.reading ma.us, or call at 781-942-9043. Much information is available on the
Town of Reading web site at www.readingma.gov and while you are there, please fill out our
customer service survey found on the home page.
Sincerely,
Peter I. Hechenbleikmr
Town Manager
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ACCOUNTING AND FINANCE DEPARTMENTS
Accounting Department
The Accounting Department, under the direction of the Town Accountant, is responsible for
maintaining financial records. These records facilitate the preparation of financial reports and
schedules that provide meaningful, accurate information for comparability and for management's
decision making process. The Accounting Department ensures that all financial transactions are
in compliance with legal requirements and are properly recorded on a timely basis. The Town
used the auditing firm of Melanson&Heath in FY 2010.
Finance Department
The Finance Department, under the direction of the Assistant Town Manager/Finance Director,
supports a wide variety of financial and administrative functions. The Finance Department staff
are designed to be flexible and experienced in many of these divisions as work flows vary
throughout the year:
Assessors: Assessment of property is the first step in the process of tax revenue collection for the
Town of Reading. The Assessment division's function is to provide for the fair and equitable .
assessment of all taxable real and personal property. A three-member Board of Assessors sets
policy.
General Finance: Collections is responsible for collecting all taxes and other charges (including
ambulance and water/sewer/storm water bills). They also receive and process all deposits (such
as schools and recreation). Treasury is responsible for providing the cash for the operation of all
Town, School and Light Department functions on a timely basis. In addition, it conducts all
borrowing and investing activities, including those on behalf of the Town's Trust Funds (at the
direction of the Trust Fund Commissioners).
Hiunan Resources: This division supports the Town (tinder the direction of the Town Manager),
Schools (under the direction of the Superintendent), Light Department (tinder the direction of the
RMLD General Manager) and Retiree benefit activities.
Technology: The Technology Division provides centralized computer network and
telecommunications services as well as distributed internet, audio/video, software and personal
computer support and geographic information systems (GIS) mapping for the municipal
government (Town Hall, the Library, the Senior Center, Police, Fire/Emergency Management,
Public Works, Water, Sewer and Storm Water). This division also coordinates marry technology.
activities with both the School and Light Departments.
Town Clerk: The Town Clerk is guided by Federal, State, and local laws and policies in
overseeing Elections, voter registration, the census process, Town Meeting, and local licenses as
well as historic and legal documents for the Town.
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Finance: Assessment Division
Assessment of property is the first step in the process of tax revenue collection for the Town of
Reading. The Assessment Division's function is to provide for the fair and equitable assessment
of all taxable real and personal property. The Assessors trend the values each year so that the
revaluations done every three years won't result in substantial changes. The Assessors must
annually determine the tax levy and obtain State approval of the tax rate so that bills can be
issued in a timely manner.
The tax rate for FY 2011 was set at $13.80 per thousand, a $0.05 increase per thousand from.the
FY 2010 rate. The total assessed value of all properties and accounts for FY 2010 is $3,747,545
(a 2.8% increase from the previous year). The average house in Reading is now valued at
$442,655,which is a 2.3% increase from FY 2009, breaking a three year trend of modestly lower
values.
The breakdown of Reading property for FY 2011 is as follows:
Assessed Value Share Change
Residential $3,373,086,171 90.00 % +1.96 %
Commercial $ 319,505,376 8.53 % +17.98 %
Industrial $ 9,658.200 0.26 % -54.12 %
Personal $ 45,295,130 1.21 % -1.06 %
TOTAL $ 3,747,545,877 100.00% +2.79 %
Finance: Collection Division
The Collection Division is responsible for collecting all taxes and other charges (including
ambulance and water/sewer/storm water bills). This Division also receives and processes all
deposits (such as schools and recreation).
Massachusetts does not allow Towns to pay any charges associated with electronic collection of
tax bills—such as a flat fee or credit card fee. Debit card usage is comparatively inexpensive, and
an economical method to pay online.
Electronic Payments (to March 21,2011)
CYll CY10 CY09 CY08 CY07 CY06
Registered Users 2316 1562 1.109 873 508 258
Real Estate 97 206 167 141 95 38
Excise 761 631 402 329 352 220
Water/Sewer/Storm Water 42 347 174 125 75 NA
Municipal lien certificates have increased slightly despite the relatively low property sales and
mortgage refinancing activities..Foreclosures dropped off from a high in 2008, in sharp contrast
to economic measures nationally.
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Municipal Lien Certificates (to 3/21/11)
Foreclosures (Foreclosure deeds recorded at
Issued Fees the Registry of Deeds as of 3/21/11)
FY11* 972 $30,275
FY10 859 $24,875 2011 2
FY09 969 $26,901 2010 18
FY08 743 $22,350 2009 11
FY07 698 $21,252 2008 20
FY06 930 $30,800 2007 10
FY05 991 $28,327 2006 .1
FY04 1,627 $43,856
-Fee increased 12 1112010
Real estate taxes collected were $49.2 million — a 1.4% increase from the $48.5 million in the
previous year. This low increase (seemingly below that allowed by Prop 2-1/2) was due to the
fact that the MSBA began repaying their share of the RMHS excluded debt— almost $700,000
per year that Reading taxpayers had previously been paying. Personal property taxes collected
also increased to $0.61 million from $0.49 million; and Excise tax collections decreased again
from $2.79 million in FY09 to $2.59 million in FY10. See the Appendix for more complete
details.
Finance: General Division
This Division is responsible for providing the cash for the operation of all Town and School
functions on a timely basis. In addition, it conducts all borrowing and investing activities,
including those on behalf of the Town's Trust Funds (at the direction of the Trust Find
Commissioners).
Interest earnings for the General Fund during FY10 were $506,030 — only two years ago this
figure was about $1.7 million before interest rates began their historic drop. No debt was issued
during calendar year 2010.
General Finance-Trust Funds:
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Beginning Balances $7,383,405 $7,620,268 $8,029,097 $8,263,326 $8,501,857
Contributions $ 118,112 $ 96,565 $91,885 $125,896 $292,348
Disbursements ($ 312,312) ($ 226,608) ($215,912) ($233,641) ($256;135
Interest $ 431,064 $ 538,873 $358,255 $346,277 $237,227
Ending Balances $7,620,268 $8,029,097 $8,263,326 $8,501,857 $8,775,298
The Trust Funds disbursed over$1 million in the past five years as shown in the table above. The
Hospital Trust Fund continued to provide aid through the Reading Response Program, which
provides skilled health care services,respite care,medical transportation and Lifeline Emergency
call systems to Reading residents who meet specific health and income guidelines. It disbursed
$176,250 in FY 2005; $162,368 in FY 2006; $100,270 in FY07; $95,373 in FY08; $82,469 in
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FY09 and$93,267 in FY10. The Cemetery Trust Funds distributed$81,000 in FY 2005; $85,000
in FY 2006; $87,000 in FY07; $100,000 in FY08; $105,000 in FY09 and$122,000 in FY10.
Ending Ending Ending
Balance Balance Balance 1-year
FY 2008 FY 2009 FY 2010 Change
Cemetery $3,463,268 $3,629,468 $3,710,648 +2.2%
Hospital $4,069,260 $4,156,231 $4,178,520 +0.5%
Library $66,002 $66,622 $60,930 -8.5%
Scholarships $124,106 $123,600 $173,131 +40.0%
Veterans Memorial $103,195 $103,135 $101,165 -1.9%
Celebration $59,506 $47,086 $47,608 +1.1%
Historic $70,287 $66,815 $68,058 +1.9%
Preservation
Elder Services $285,942 $286,227 $411,930 +43.9%
Loans $21,760 $22,672 $23,307 +2.8%
Finance: Human Resources Division
The Human Resources Division supports the Town (under the direction of the Town Manager),
Schools (under the direction of the Superintendent), Light Department Gilder the direction of the
RMLD General Manager) and Retiree benefit activities.
Employee benefits administered through this Division include health, dental and life insurance,
deferred compensation, flexible spending accounts, the sick-leave bank, the Employee
Assistance Program, paid time off, leave of absences and unemployment benefits. Job related
injuries covered by worker's compensation or M.G.L. Chapter 41, Section 111F (for public
safety employees)are also handled by this Division.
Worker's compensation is a premium-based program through the Massachusetts Inter-Local
Insurance Association (MIIA). The Town is self-insured for job-related injuries to public safety
employees. The health insurance program is self-insured through the MIIA Health Benefits Trust
with large losses shared by all members of the Trust. Despite a number of significant benefit
changes designed to encourage medical cost-efficient behavior for employees, the national
upward trend for health insurance costs has caused the five-year budget to increase by about
5.5% per year. Over half of this figure is enrollment, often due to job losses by a spouse in the
private sector during the economic downturn since 2007.
Finance: Technology Division
The Technology Division provides centralized computer network and telecommunications
services as well as distributed internet, audio/video, software and personal computer support and
geographic information systems (GIS)mapping for the municipal government. This division also
coordinates many technology activities with both the School and Light Departments.
Annual Town Meeting in April 2007 voted to allow the Town to make $1.25 million of
technology improvements to the 20-year old financial systems infrastructure. The Accountuig
and Finance Departments have nearly completed this five-year project, on time and well lulder
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budget. Staff has found efficiencies and done a lot of work in-house at a minimal cost, which has
allowed the scope of the technology improvements to expand and include two significant
projects: a far more comprehensive license and permits system that will integrate all other Town
technology systems and incorporate all Town departments instead of only Building permits at an
additional cost of about $75,000 over the initial budget. Also the possibility to expand a current
Police information system to include the Fire department, at a cost that will be well below a
Public Safety technology system scheduled for FY15 at $175,000 in the current capital plan.
Both of these large projects will be done within the original $1.25 million funding.
In addition to these projects, improvements to the Town's website are continuous. A new online
cemetery look-up system has been added; document storage is being pushed out to all
departments in the Town and possibly to the Schools; a new mass communications system (both
for emergency and non-emergency communication with residents and businesses in the Town) is
being designed and will be rolled out by the summer of 2011. A new Assessor's property
appraisal system is also in the plans for 2011. While much of the technology work thus far has
been infrastructure-related and affected internal staff, over the next two or three years the general
public will finally see the results of the investment by Town Meeting a few years ago. The high-
quality information that now flows internally among staff will be pushed out to the public, and
the results will be a marked improvement in two-way communications that will be available
24%7/365.
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TOWN CLERK
Elections
In 2010 there were five Elections in the Town of Reading, a Special State Senate Election to fill
the Senate seat due to the loss of Senator Ted Kennedy in January, a Local Election in April, a
Special Local Election after a petition was filed in appeal of Town Meeting vote in June., a State
Primary Election in September, and a State Election in November.
Election Turnout
On January 19, 2010 there were 10,992 votes cast in the Special Senate Election with 608
Absentee Ballots, totaling in a 66.6 %turn out.
On April 6, 2010 there were 2,218 votes cast in the Local Election with 52 Absentee Ballots,
totaling in a 13.4 %turn out. .
On June 23, 2010 there were 2,052 votes cast in the Special Local Election with 78 Absentee
Ballots, totaling in a 12.3 %turn out.
On September 14, 2010 there were 3,078 votes cast in the State Primary Election with 111
Absentee Ballots, totaling in a 18.4 %turn out.
On November 2, 2010 there were 11,046 votes cast in the State Election with 652 Absentee
Ballots, totaling in a 65.5 %turn out.
Board of Registrars
Registrars Krissandra Holmes, Gloria Hulse, Harry Simmons, and Town Clerk Laura A. Gemne
registered 948 voters; made 2,944 voter changes (name, address, status); and deleted 465 voters
in 2010. There were over 8,600 signatures certified on nomination and petition papers for the
2010 election year. Registrars also offered assistance to voters on election days.
Census
The Annual Town Census was conducted in January, entirely by mail, with 'a total of 10,746
forms mailed to residences. The local census assists Town Clerks in putting together the Street
List(resident book) and the Jury List. Major functions served by an annual local census are:
• Information collected for miuv.cipal purposes
• Schoolneeds
• Growth and planning needs
• Resident identification for police and fire
• Collection of dog information -
• Veteran Information
• Information for the Jury Commissioners
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• Determining inactive voter status for voter purge as required by the National Voter
Registration Act.
Town Meeting
Town of Reading held an Annual and Subsequent Town Meeting in 2010. The Annual Town
Meeting was held in three nights on-April 26, 2010,April 29, 2010 and May 3, 2010. The
Subsequent Town Meeting was held in two nights on November 8, 2010 and November 15,
2010.
At the Annual Town Meeting, Article 13 was motioned for a Roll Call Vote, the vote was as
follows:
Precinct Last Name First Name MI Address Term Vote
1 Andrews Francis J 75 Dana Road 2012 Y
1 Arena John J 26 Francis Street 2013 N
_1 Benjamin Roy A Jr 105 Colonial Drive 2011 Y
1 Clarke Sheila M 536 Haverhill Street 2013 ---
1 Connery Thomas William 101 .Beaver Road 2012 N
1 Crawford Lynne A 10 Eastway 2011 Y
1 Crosman-Chabra Lin 56 Colonial Drive 2012 Y
1 D'Entremont Keith J 392 Haverhill Street 2011 N
1 D'Entremont Roger J 398 Haverhill Street 2011 , N
1 Dockser Mark L 110 Beaver Road 2011 ---
1 Docktor Nancy A 371 Pearl Street 2012 N
1 Herlihy Andrew K 10 Field Pond Drive 2012 Y
1 Huntington-Stager Nancy 42 Autumn Lane 2012 N
1 Lee David Francis Jr 55 Beaver Road 2012 ---
1 Mounteer Ellen 99 Colonial Drive 2011 Y
_1 Mulroy Sheila M 107 Eastway 2013 Y
1 O'Keefe Ronald Thomas Jr 44 Batchelder Road 2013 N
1 Patterson Joseph E 18 Granger Avenue 2013 Y
1 Perry Paula J 40 Beaver Road 2011 Y
1 Perry Steven L 40 Beaver Road 2013 Y
1 Rigney James F 22 Brewer Lane 2013 Y
1 Stager James E 42 Autumn Lane 2012 Y
1 Webb Douglass E 309 Pearl Street 2013 Y
1 Webb Elaine L 309 Pearl Street 2011 Y
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Precinct Last Name First Name � MI Address Term Vote
2 Bastiani Anthony 27 Chequessett Road 2011 Y
2 Connearney Joseph T Sr 26B Carnation Circle 2011 ---
2 Coumounduros Peter G 24 Smith Avenue 2013 ---
2 Ford Christine 195 Salem Street 2012 Y
2 lozzo Denise M 30 Johanna Drive 2013 Y
.2 Janowski Karen T 30 Azalea Circle 2012 Y
2 Lam Wei E 150 Pleasant Street 2011 Y
2 Malinski Lizabeth Ann 26 Harrison Street 2012 ---
2 McDonald Gerard 14 John Street 2011 Y
2 McNeice Paul F 20 Johanna Drive 2011 Y
2 Moore Richard J 5 Elm Street 2012 Y
2 Morelli Robert R 236 Salem Street 2012 ---
2 Nelson Ian A 266 Haverhill Street 2013 Y
2 O'Rourke Thomas B 50 Chequessett Road 2012 Y
2 O'Sullivan David H 18 Thorndike Street 2011 ---
2 Peters Reginald T 73 Bay State Road 2011 Y
2 Rice Brooks E 16 Eaton Street 2013 ---
2 Rickley Anthony L 95 Timberneck Drive 2013 Y
2 Robertson Paul F 9 Elm Street 2013 N
2 Robertson Rita C 9 Elm Street 2012 N
2 Ran Priscilla 42 John Street 2013 Y
2 Snow George A 237 Salem Street#2 2011 ---
2 Sullivan John B 134 Belmont Street 2011 ---
2 Sullivan Kim Marie 1 Charles Street#C 2012 ---
3 Blanchard Norman W 276 Ash Street 2011 ---
3 Brungardt Christopher L 324 South Street 2012 Y
3 Craven David A 22 Beech Street 2011 ---
3 Crook Stephen L 137 Pleasant Street 2012 Y
3 D'Alessio Joseph M 58 Curtis Street 2012 Y
3 Downing William H 14 Avon Street 2013 ---
3 Driscoll Francis P 7 Ordway Terrace 2012 Y
3 Duran Jeanne Macdonald 13 Cross Street 2011 Y
3 Ea leston Richard W Jr 51 Cross Street 2011 N
3 Fratto Kara Marie 129 Pleasant Street 2013 N
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Precinct Last Name First Name MI Address Term Vote
3 Hank Linda A 70 Walnut Street 2013 Y
3 Hank William M 70 Walnut Street 2013 Y
3 Hurley Lawrence A 274 Ash Street 2011 ---
3 Jones Randall W 1 Cross Street 2011 N
3 Oston Steven G 66 Sturges Road 2013 Y
3 Rojas Eileen S.K. 8 Bolton Street 2012 Y
3 Safina Nicholas J 221 South Street 2012 Y
_3 Spinney Sheila C 323 South Street 2011 Y
3 Tibbetts Kathleen M 512 Summer Avenue 2011 Y
3 Tuttle David B 27 Heather Drive 2012 Y
3 Tuttle Jason D 27 Heather Drive 2013 ---
3 Westerman Joseph P 17 Avon Street 2012 Y
4 Abate Richard P 280 Woburn Street 2013 Y
4 Barnes Jonathan E 41 Pratt Street 2012 Y
4 Cameron Lynne H 39 Ellis Avenue 2012 Y
4 Coco Richard H 4 Fremont Street 2012 N
4 Curtis Richard H 15 Holly Road 2013 N
4 Fratto Marie J 58 Oak Street 2011 N
4 Goldy Stephen A 42 Berkeley Street 2013 ---
4 Graham Nancy M 26 Holly Road 2011 Y
_4 Graham Russell T 68 Maple Ridge Road 2011 Y
4 Grimes Andrew W 103 Oak Street 2013 Y
4 Hartzler Glen M 119 West Street 2012 Y
4 Hopkinson Michelle M 21 Sherwood Road 2012 Y
4 Lautman David 132 Oak Street 2011 Y
4 Lenox James G 10 Sylvan Road 2012 Y
4 Loughlin Thomas J 24 Oak Street 2012 Y
4 McDonald Richard E 80 Red Gate Lane 2013 Y
4 Simmons Harry M 17 Pine Ridge Road 2011 Y
4 Tafo a Ben 40 Oak Street 2011 Y
4 Twomey Nancy J 23 California Road 2011 Y
4 Vinciguerra Lori L 98 Pine Ridge Road 2012 Y
4 Vinciguerra Ralph L 98 Pine Ridge Road 2013 Y
4 West Marsie K 3 Whitehall Lane 2011 Y
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Precinct Last Name First Name M = Address Term Vote
4 Wilson Matthew L 385 Summer Avenue 2013 Y
4 Young Meghan A 40 Oak Street 2013 Y
5 Adams Charles L 13 Riverside Drive 2013 Y
5 Anderson . Linda L 9 School Street 2012 Y
5 Anthony Camille W 26 Orchard Park Drive 2011 Y
5 Barnes Donnan S 11 Bancroft Avenue 2012 Y
5 Binda Angela F 10 Orchard Park Drive 201.1 Y
5 Cotter Bernard Daniel Sr 49 Riverside Drive 2012 ---
5 Dinardo Christina L 129 High Street 2013 Y
5 Dirocco Gina M 33 Knollwood Road 2011 Y
5 Dustin Paul C 3 Orchard Park Drive 2011 ---
5 Foley. Kenneth J 43 Chute Street 2011 Y
5 Fuller Robert L 450 Summer Avenue 2013 Y
5 Garrison Bo S 11 Jadem Terrace 2012 Y
5 Giacalone Susan A 9 Orchard Park Drive 2013 ---
5 Higgott Eleanor K 18 Buckingham Drive 2012 N
5 Jones Janice M 22 Mt.Vernon Street 2013 Y
5 Kelley Timothy J 84 Woburn Street 2011 Y
5 Mabius Lawrence E 59 Riverside Drive 2012 Y
5 Nihan Gary M .33 Dudley Street 2011 Y
5 O'Sullivan Patrick P 78 Sunnyside Avenue 2013 N
5 Pacino Philip B 5 Washington Street 2013 N
5 Rushworth Philip 36 Knollwood Road 2012 Y
5 Shaffer Frederick S 67 Woburn Street 2011 N
5 Snyder Gina M 11 Jadem Terrace 2012 Y
5 Talbot David A 75 Linden Street 2013 Y
6 Berman Barry C 54 Longview Road 2012 Y
6 Bonazoli James E 100 Grove Street 2012 N
6 Colorusso Ralph A 31 Enos Circle 2011 ---
6 D'Addario Ronald M 97 Summer Avenue 2011 Y
6 Kaine Diana M 10 Laneton Way 2013 N
6 Mandell Jacquelyn A 441 Lowell Street 2011 ---
6 Mandell Robert L 441 Lowell Street 2011 N
6 Miles John M 532 West Street 2011 N
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Precinct Last Name First Name N NE I= Address I Term Vote
6 Mulvey. James _ P 8 Palmer Hill Avenue 2012 N
6 O'Neill Mary Ellen 125 Summer Avenue 2012 Y
6 Parr Mary M 22 Garrett Road 2012 Y
6 Parr Thomas J 22 Garrett Road 2012 Y
6 Phillips ( Gary D 42 Willow Street 2011 N
6 Phillips Linda M 42 Willow Street 2013 N
6 Piper Allison M 42 Willow Street 2013 ---
6 Robinson Chuck 81 Prospect Street 2012 Y
6 Russell John W 23 Plymouth Road 2013 Y
6 Selvitelli Greg F 25 Arnold Avenue 2013 Y
6 Shields Peter A 31 Randall Road 2011 Y
_6 Smith Beverly Lynn 43 Enos Circle 2012 Y
6 Smith Chad R 517 West Street 2013 N
6 Wood-Beckwith Drucilla 17 Palmer Hill Road 2013 Y
7 Anderson Carl F III 74 Whittier Road 2011 Y
7 Caruso Christopher 77 Hartshorn Street 2011 ---
7 Chiappini Michele Weber 50 Locust Street 2011 Y
7 Commito Ellen C 78 Hanscom Avenue 2011 Y
7 Dahl Harvey J Pete 16 Tennyson Road 2011 Y
7 Donnelly-Moran Charles V 32 Vale Road 2013 Y
7 Doucette Jeffrey M 30 Vale Road 2012 Y
7 Downing Jesse M 91 Whittier Road 2012 ---
7 Downing John K Jack 91 Whittier Road 2011 Y
7 Foodman Martin J 21 Hanscom Avenue 2012 Y
7 Hines George V 35 Grand Street 2011 ---
7 Jarrin Hurtado Mario A 36 Parkview Road 2012 ---
7 Kozlowski Norman F 16 Weston Road 2013 N
7 Matheson Nancy B 27 Auburn Street 2013 ---
7 McGoldrick Moira 18 Winthrop Avenue 2012 Y
7 Michaud Sandra J 37 Estate Lane 2013 ---
7 Porter Darlene C 193 Lowell Street 2013 Y
7 Sansalone Frances C 72 Winthrop Avenue 2013 Y
_7 Schubert Richard W 119 Winthrop Avenue 2013 Y
7 Segalla John C 115 Hanscom Avenue 2013 N
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Precinct Last Name First Name MI Address -� Term Vote
7 Struble Jeffrey W 4 Tower Road 2012 Y
_7 Walsh Bryan E 58 Grand Street 2011 Y
7 Weld Karl E 60 Highland Street 2012 N
7 Wyer Denise D 228 Forest Street 2012 Y
8 Beckman Robert J 26 Sunset Rock Lane 2011 Y
8 Brown William C 28 Martin Road 2011 N
8 Brzezenski John E 60 Terrace Park 2012 ---
8 Cooper Kendra JG 20 Covey Hill Road 2013 N
8 Davarich Scott L 8 Twin Oaks Road 2012 Y
8 Ehl Charles S 249 Franklin Street 2012 Y
8 Finch William O 51 Mill Street .2012 ---
8 Golini Donald J 62 Martin Road 2011 ---
8 Golini Kathleen E 62 Martin Road 2011 Y
8' Hecht Olive B 73 Martin Road 2013 Y
8 Hecht William J Sr 73 Martin Road 2013 Y
8 Herrick Karen Gately 9 Dividence Road 2012 N
8 Koppel Paula D 60 Lilah Lane 2011 Y
8 Lloyd Patricia J 388 Franklin Street 2013 Y
8 Lordan James F Jr 26 Fairchild Drive 2013 N
8 MacKenzie Bruce A 102 Sanborn Lane 2012 Y
8 Nordstrand Robert 1 384 Franklin Street 2011 Y
8 Perry George B II 230 Franklin Street 2013 N
8 Rogers Elizabeth H 88 Colburn Road 2012 Y
8 Russell John H 91 Spruce Road 2013 ---
8 Russell Margaret W 91 Spruce Road 2013 ---
8 Stosez Richard J 25 Emerson Street 2012 ---
8 Tucci Kenneth R 8 Buckskin Drive 2011 Y
Vital Statistics and Licensing
During the calendar year 2010, the following Vital Statistics were recorded in the Town Cleric's
Office:
Births—213 Marriages—69 Deaths—313
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The Town Clerk's office issued 2,187 dog licenses, 2 commercial dog kennel licenses, and 5
residential kennel licenses, 142 business certificates, 22 renewals for 69 underground storage
tanks, and 41 cemetery deeds.
Reading is one of a few towns north of Boston still selling fishing and hunting licenses. A total
of 278 Fish and Wildlife licenses. and 70 stamps were issued during the year for a total of
$6,007.25. Of these, the Town of Reading issued 77 licenses free of charge to those.citizens over
70 years of age. The Town retained$111.25 in fees from the sale of licenses.
Total receipts collected in the Cleric's Office for the calendar year 2010 amounted to $78,527.99.
15
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ro
TOWN OF READING
REPORT OF THE COLLECTOR
12 MONTHS ENDING JUNE 30, 2010
2010 REAL ESTATE
Committed 2009-2010 49,705,904.96
Interest and Costs Collected 34,483.02
Abatements & Adjustments 238,796.68
Paid to Treasurer 49,076,858.09
Subsequent Tax Title 169,639.00
Deferred Taxes 14,171.41
Uncollected Jurie 30, 2010 240,922.80
49,740,387.98 49,740,387.98
2009 REAL ESTATE
Balance June 30, 2009 197,729.11
Interest and Costs Collected 19,523.45
Abatements &Adjustments 735.80
Paid to Treasurer 112,728.77
Taxtitle Taping 103,787.99
Uncollected June 30, 2010 0
217,252.56 217,252.56
2010 PERSONAL PROPERTY
Committed,2009-2010 625,564.67
Interest and Costs Collected 148.62
Abatements &Adjustments 9,100.98
Paid to Treasurer 609,940.15
Uncollected June 30, 2010 6,672.16
625,713.29 625,713.29
18
2009 PERSONAL
PROPERTY
Balance June 30, 2009 5,579.65
Interest and Costs Collected 362.05
Abatements &Adjustments 0
Paid to Treasurer 3,139.54
Uncollected June 30, 2010 2,802 .16
5,941.70 5,941.70
2010 MOTOR VEHICLE
EXCISE
Committed 2010 2,440,568.33
Interest and Costs Collected 733.34
Abatements &Adjustments 51,255.09
Paid to Treasurer 2,233,920.18
Uncollected June 30, 2010 156,126.40
2,441,301.67 2,441,301.67
2009 MOTOR VEHICLE EXCISE
Balance June 30, 2009. 54,984.88
Committed 2009-2010 356,460.97
Interest and Costs Collected 2,486.44
Abatements &Adjustments 47,088.12
Paid to Treasurer 338,048.01
Uncollected Jame 30, 2010 28,796.16
413,932.29 413,932.29
19
2008 MOTOR VEHICLE
.EXCISE
Balance 6/30/09 30,113.45
Committed 2009-2010 495.20
Interest and Costs Collected 2,744.25
Abatements &Adjustments 5,663.02
Paid to Treasurer 13,189.83
Uncollected June 30, 2010 14,500.05
33,352.90 33,352.90
2007 MOTOR VEHICLE
EXCISE
Balance June 30, 2009 18,869.74
Committed 2009-2010 75.00
Interest and Costs Collected 1,077.44
Abatements &Adjustments 1,243.74
Paid to Treasurer 3,609.45
Uncollected June 30, 2010 15,168.99
20,022.18 20,022.18
2006 MOTOR VEHICLE
EXCISE
Balance June 30, 2009 10,408.37
Interest and Costs Collected 201.29
Abatements &Adjustments 720.00
Paid to Treasurer 393.48
Uncollected June 30, 2010 9,496.18
10,609.66 10,609.66
OLD EXCISE-2005&PRIOR
Balance June 30, 2009 172,126.87
Interest and Costs Collected 550.34
Paid to Treasurer 1,894.64
Uncollected June 30, 2010 170,782.57,
172,677.21 172,677.21
20
WATER CHARGES
Committed 2009-2010 5,267,604.68
Service Charge 3,072.69
Interest &Costs Collected 5,890.63
Abatements &Adjustments 35,846.57
Paid to Treasurer 3,694,569.45
Discount for Timely Payments 384,899.88
Added to 2010 Taxes 177,926.73
Uncollected June 30, 2010 983,325.37
5,276,568.00 5,276.568.00
SEWER CHARGES
Committed 2009-2010 5,385,781.53
Interests & Costs Collected 5,892.75
Abatements &Adjustments 38,516.90
Paid to Treasurer 3,783,127.83
Discount for Timely Payments 394,802.29
Added to 2010 Taxes 170,200.04
Uncollected Jame 30, 2010 1,005,027.22
5,391,674.28 5,391.674.28
STORM WATER FEES
Committed 2009-2010 411,362.15
Interest & Costs Collected 332.31
Abatements &Adjustments 496.88
Paid to Treasurer 297,960.24
Discount for Timely Payments 31,492.63
Added to 2010 Taxes 10,619.40
Uncollected June 30, 2010 71,125.31
411,694.46 411,694.46
21
ADDITIONAL WATER
CHARGES (SPM, SPC, SPA)
Balance June 30, 2009 2;524.13
Committed 2009-2010 36,944.39
Paid to Treasurer 36,122.60
Added to 2010Taxes 0
Uncollected June 30, 2010 3,345.92
39,468.52 39,468.52
AMBULANCE FEES
Committed 2009-2010 1,452,886.09
Abatements &Adjustments 571,030.22
Paid to Treasurer 627,063.59
Uncollected June 30, 2010 254,792.28
1,452,886.09 1,452,886.09
CERTIFICATES OF MUNICIPAL LIENS
Certificates Issued 24,875.00
Paid to Treasurer 24,875.00
24,875.00 24,875.00
22
TOWN OF READING
REAL ESTATE ABATEMENTS
FOR PERIOD JAN 1 -DEC 312010
Owner Name Parcel Address Amount Decision
Abrams 23 Thomas Rd $14,500 3/16/2010
Amara 93 Eastway $25,100 2/23/2010
Aristonic 95 Walkers Brook 1$259,870 1/5/2010
Atlantic Tambone 370 South Street $26,800 4/28/2010
Aufiero 36 Rustic Lane $2,500 4/28/2010
Berube 361ntervale $39,000 2123/2010.
Boyd 252 Franklin St $4,400 3/30/2010
Brady/sb Twn of Reading Norman Rd $3,700 2/3/2010
Buckley 10 Beaver Road $12,400 1/20/2010
Colorusso 31 Enos Circle $26,700 5/12/2010
Counihan 8 Verde Circle $164,500 3/16/2010
Devir 38 Tamarack Rd $3,900 3/2/2010
DiBella 295 Main St U9 $3,900 1/26/2010
Digby 16 Winter Street $37,500 4/712010
Downs/c/o Blankship 24 Grove St $26,500 4/28/2010
Engberg/sb Twn of Read W of Main St $37,000 2/3/2010
Faucette 35 Kingston Rd $8,100 5/12/2010
Faulkner 1 Gateway Circle $25,400 5/5/2010
Frist America Leasing 248 Main ST $2,940 1/2012010
Gentile 12 Robin Rd $14,600 2/23/2010
Haggerty 90 Prospect St $85,300 5/24/2010
Karen German 12 Linden St $31,800 4/28/2010
Kendall 20 Lucy Drive $300 1/13/2010
Kumar 20 Melendy Dr $23,100 2/23/2010
LaMontagne 24 Gavin Circle $37,200 2/23/2010
Lederer 267 Summer A U-1 $16,300 2/17/2010
Lentell 67 Howard St $37,600 3/2/2010
LJH Realty 159 Haven 159 Haven St $109,000 3/30/2010
LJH Realty 169 Haven 169 Haven St(bldg:$20,900 3/30/2010
LJH Realty 169 Haven 169 Haven St(pkg 1$123,000 3/30/2010
Lyons&Bucko 86 Van Norden Rd $14,300 5/512010
Mahoney JR 27 Pitman Drive $23,100 5/26/2010
Margossian 21 Pasture Rd $9,600 5/19/2010
Mazzarelia 19 Pitman Dr $16,600 2/17/2010
Melnick 355 Pearl St $8,300 4/19/2010
Paula Gentile 393 South Street $13,100 5/12/2010
Pelosi 41 Hancock Street $17,700 1/5/2010
Perry 10 Spring St $5,500 2/312010
Quimby 23 Hampshire Rd $61,300 1/26/2010
Richards 198 Haverhill $3,200 2/23/2010
Saviano 112 Colonial Dr $16,700 5/12/2010
Sheehan 22 Kensington Ave $7,200 5/19/2010
Stackpole 190 Summer Ave $269,700 5/12/2010
Stitt 54 Deering St $5,700 4/28/2010
Sunbury 115 Forest Street $34,000 1/26/2010
Tarasuk 53 Batchelder Dr $41,400 4/28/2010
Tarello 25 Rustic Lane $8,400 3/16/2010
TM-Glover Properties off West $172,700 6/8/2010
TM-Glover Properties 122 JWD u 102 $22,200 6/8/2010
TM-Glover Properties 122 JWD u 103 $30,000 6/812010
TM-Glover Properties 57 Longwood Dr $93,000 6/8/2010
TM-Glover Properties 27 Green Meadow 1$55,200 6/8/2010
TM-Glover Properties 162 JWD $47,400 6/8/2010
TM-Glover Properties 122 JWD U304 $33,500 6/8/2010
TM-Glover Properties 112 JWD U 302 $530,000 6/8/2010
TM-Redstone Realty 112 JWD U 102 $22,200 6/8/2010
TM-Redstone Realty 112 JWD U 103 $15,000 6/8/2010
TM-Redstone Realty 112 JWD U 203 $95,000 6/8/2010
TM-Redstone Realty 3 Deer Path Lane $19,700 6/8/2010
Trites 9 Pierce $59,200 5/5/2010
Trubiano 23 Enos Circle $53,100 5/12/2010
23
Turchi 22 Riverside Dr $14,000 417/2010
Unknown/sb Twn of Reap Emerson St $200 2/3/2010
Vail 4 Bolton $20,800 2/17/2010
Wang 40 Harvest Rd $19,100 2/17/2010
Wash-Reading PI LLC, 139 Washington St$371,700 4/20/2010
Widzinski 59 Hillcrest Rd $22,400 5/19/2010
Wilcox 84 Hanscom Ave $12,100 4/20/2010
2010 Abatements:68 Amount $3,488,110
24
TOWN OF
READING, MASSACHUSETTS
Annual Financial Statements
For the Year Ended June 30, 2010
25
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements:
Statement of Net Assets
Statement of Activities
Fund Financial Statements:
Governmental Funds:
Balance Sheet
Reconciliation of Total Governmental Fund Balances to
Net Assets of Governmental Activities in the Statement
of Net Assets
Statement of Revenues, Expenditures, and Changes
in Fund Balances
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities
Statement of Revenues and Other Sources, and Expenditures
and Other Uses - Budget and Actual General Fund
Proprietary Funds:
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Fund
Net Assets
Statement of Cash Flows
Fiduciary Funds:
Statement of Fiduciary Net Assets
Statement of Changes in Fiduciary Net Assets
Notes to Financial Statements
Electric Light Plant Notes to the Financial Statements
26
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress
SUPPLEMENTARY INFORMATION:
Combining Balance Sheet- Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds
Combining Schedule of Net Assets - Nonmajor Proprietary Funds
Combining Schedule of Revenues, Expenses and Changes
in Fund Net Assets - Nonmajor Proprietary Funds
Combining Schedule of Cash Flows - Nonmajor Proprietary Funds
27
MELANsoN HEATH & CO PANY,PC`.
{,�F.Ii.TIf+I EI? 1�L1 ib 1..tC ACCIt?liN'PA.NTS'
MANAGEMENT ArwiSORS
10_New England 13winess Ceivem D7ive ° Suite 107
AndGVC'T,MA 01810-1096
(978) 749-0005 ® Fax(973) 749.0006
I ov).itielanwnheath.coni
INDEPENDENT AUDITORS' REPORT
To the Board of Selectmen
Town of Reading, Massachusetts
We have audited the accompanying financial statements of the governmental activi-
ties, the business-type activities, each major fund, and the aggregate remaining fund
information of the Town of Reading, Massachusetts, as of and for the year ended
June 30, 2010, which collectively comprises the Town's basic financial statements
as listed in the table of contents. These financial statements are the responsibility of
the Town of Reading's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States.of America and the standards applicable to financial audits
contained in Government Auditing Standards; issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free.
of material misstatement. An audit includes examining,on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An,audit also
includes assessing the accounting principles used.and significant estimates made by
.management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all mate-
rial respects, the respective financial position of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund infor-
mation of the Town of Reading as of June 30, 2010, and the respective changes
in financial position and'cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United
States of America.
28 .acl<i tionat�ff�� :
Greenfield,UA.n Fltnvrnrly MF m Naslwa,NH 4 7vfanchestcr',NH
In accordance with Government Auditing Standards, we have also issued a report
dated January 19, 2011 on our consideration of the Town's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial report-
ing and compliance and the results of that testing, and not to provide an opinion on
the internal control over financial reporting or on compliance. That report is an inte-
gral part of an audit performed in accordance with Government Auditing Standards
and should be considered in assessing the results of our audit.
The management's discussion and analysis, appearing on the following pages, .
and the supplementary information, appearing on page 67, are not a required
part of the basic financial statements but are supplementary information required
by accounting principles generally accepted in the United States of America. We
have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information
and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial state-
ments that collectively comprise the Town of Reading's basic financial statements.
The accompanying supplementary information, appearing on pages 68 - 77 are
presented for purposes of additional analysis and are not a required part of the basic
financial statement. This information has been subjected to the auditing procedures
applied in the audit of the basic financial statements, and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements taken as
a whole.
Andover, Massachusetts
January 19, 2011
29
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Town of Reading, we offer readers this narrative overview
and analysis of the financial activities of the Town of Reading for the fiscal year
ended June 30, 2010. Unless otherwise noted, all amounts reported in this
analysis are expressed in thousands.
A. OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the basic
financial statements. The basic financial statements are comprised.of three
components: (1) government-wide financial statements, (2)fund financial state-
ments, and (3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The government-wide financial state-
ments are designed to provide readers with a broad overview of our finances in
a manner similar to a private-sector business.
The statement of net assets presents information on all assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial
position is improving or deteriorating.
The statement of activities presents information showing how the government's
net assets changed during the most recent fiscal year. All changes in net assets
are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses
are reported.in this statement for some items that will only result in cash flows
in future fiscal periods (e.g., uncollected taxes and earned. but unused vacation
leave).
Both of the government-wide financial statements distinguish functions that are
principally supported by taxes and intergovernmental revenues (governmental
activities)from other functions that are intended to recover all or a significant
portion of their costs through user fees and charges (business-type activities).
The governmental activities include general government, public safety, educa-
tion, public works, health and human services, and culture and recreation. The
business-type activities include water supply and distribution, sewer disposal,
landfill, electricity, and storm water activities.
Fund financial statements. A fund is a grouping of related accounts that is
used to maintain control over resources that have been segregated for specific
activities or objectives. Fund accounting is used to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds can be
30
divided into three categories: governmental funds, proprietary funds and fiduci-
ary funds.
Governmental funds. Governmental funds are used to account for essentially
the same functions reported as governmental activities in the government-wide
financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows
of spendable resources, as well as on.balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating
a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-
wide financial statements, it is useful to compare the information presented for
governmental funds with similar information presented for governmental activities
in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near-term financing deck
sions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
An annual appropriated budget is adopted for the general fund. A budgetary
comparison statement has been provided for the general fund to demonstrate
compliance with this budget.
Proprietary funds. Proprietary funds are maintained as follows:
Enterprise funds are used to report,the same functions presented as business-
type activities in the government-wide financial statements. Specifically, enter-
prise funds are used to account for water, sewer, landfill, and electricity opera-
tions.
Proprietary funds provide the same type of information.as the business-type
activities reported in the government-wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information
for the water, sewer, landfill, electricity, and storm water operations. Water and
electricity are considered to be major funds.
Fiduciary funds. Fiduciary funds are used to account for resources held for the
benefit of parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those funds are
not available to support the Town's own programs. The accounting used for
fiduciary funds is much like that used for p.roprietary funds.
Notes to financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and
fund financial statements.
31
Other information. In addition to the basic financial statements and accom-
panying notes, this report also presents certain required supplementary infor-
mation which is required to be disclosed by accounting principles generally
accepted in the United States of America.
B. FINANCIAL HIGHLIGHTS
® As of the close of the current fiscal year, the total of assets exceeded liabili-
ties by $ 225,665 (i.e., net assets), a change of$ 14,815 in comparison to the
prior year. The majority of this change was driven by the receipt of a one-
time MSBA grant, which will be used to offset future debt service.
• As of the close of the current fiscal year, governmental funds reported com-
bined ending fund balances of$40,855, a change of$ 15,387 in comparison
with the prior .year. The majority of this change was driven by the receipt of a
one-time MSBA grant, which will be used to offset future debt service.
At the end of.the current fiscal year, unreserved fund balance for the general
fund was $ 6,297, a change of$ (189) in comparison with the prior year.
® Total bonds payable at the close of the current fiscal year was $ 60,729, a
change of$ (124) in comparison to the prior year.
C. GOVERNMENT-WIDE FINANCIAL ANALYSIS
The.following is a summary of condensed government-wide financial data for the
current and prior fiscal years.
Governmental Business-Type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Current and other assets $ 48,926 $ 32,469 $ 42,577 $ 41,525 $ 91,503 $ 73,994
Capital assets 132,665 132,728 88,218 86,482 220,883 219,210
Total assets 181,591 165,197 130,795 128,007 312,386 293,204
Long-term liabilities outstanding 55,119 50,755 16,560 17,890 71,679 68,645
Other liabilities 7,413 6,506 7,629 7,203 15,042 13,709
Total liabilities 62,532 57,261 24,189 25,093 86,721 82,354
Net assets:
Invested.in capital assets,net 87,843' 88,095 76,251 72,977 164,094 161,072
Restricted 26,368 13,376 4,801 4,404 31,169 17,780
Unrestricted 4,848 6,465 25,554 25,533 30,402 31,998
Total net assets $ 119,059 $ 107,936 $ 106,6D6 $ 102,914 $ 225,665 $ 210,850
32
CHANGES IN NET ASSETS
Governmental Business-Type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Revenues:
Program revenues:
Charges for services $ 5,527 $ 5,762 $ 91,192 $ . 100,990 $ 96,719 $ 106,752
Operating grants and
contributions 20,564 20,321 5,650 3,057 26,214 23,378
Capital grants and
contributions 388 788 910 178 1,298 966
General revenues:
Property taxes 49,877 48,917 - 49,877 48,917
-
- 2,672 2,659
Excises . 2,672 2,659 -
Penalties and interest and 461 493
other taxes 461 493 - -
Grants and contributions
not restricted to specific
programs 16,844 (a) 4,675 - - 16,844 4,675
Investment income 1,460 1,143 194 442 001 1,585
2
Other 1,196 792 805 410 2,001 1,202
Total revenues 98,989 85,550 98,751 105,077 197,740 190,627
Expenses:
General government 4,027 4,737 - - 4,027 4,146
Public safety 10,440 10,146 - - 10,440 10,
Education 59,493 59,911 - - 59,493 59,9911 11
Public works 8,779 9,261 - - 8,779 9,261
Human services . 1,144 1,080 - - 1,144 1,080
Culture and recreation 3,030 1,926 - - 3,030 1,926
Interest on long-term debt 2,149 2,054 - - 2,149 2,054
Intergovernmental 907 1,012 - 907 .1,012
Electric - - 83,244, 92,624 83,244 92,624
Water - - 4,812 5,451 4,812 5,451 .
Other - - 4,900 4,476 4,900 4,476
Total expenses 89,969 90,127 92,956 102,551 182,925 192,678
Excess of revenues over 2
expenses 9,020 (4,577) 5,795 2,526 14,815 ( ,051)
Transfers in(out) 2,10$ 2,870 (2,103 (2,870) - -
Change in net assets 11,123 (1,707) 3,692 (344) 14,815 (2,051)
Net assets-beginning of
year 107,936 109,643 102,914 103,258 210,850 212,901
Net assets-end of year $ 119,059 $ 107,936 $ 106,606 $ 102,914 $ 225,665 $ 210,850
(a)2010 Includes a one-time MSBA grant of$13,206
As noted earlier, net assets may serve over time as a useful indicator of a
government's financial position. At the close of the most recent fiscal year,
total net assets were $ 225,665, a change of$ 14,815 from the prior year.
33
The largest portion of net assets$ 164,094 reflects our investment in capital
assets (e.g., land, buildings, machinery; and equipment); less any related debt
I sed to acquire those assets that is still outstanding. These capital assets are
used to provide services to citizens; consequently, these assets are not available
for future spending. Although the investment in capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot
be used to liquidate these liabilities.
An additional portion of net assets $ 31,169 represents resources that are
subject to external restrictions on how they may be used. The remaining balance
of unrestricted net assets $ 30,402 may be used to meet the government's
ongoing obligations to citizens and creditors.
Governmental activities. Governmental activities for the year resulted in a
change in net assets of$ 11,123. Key elements of this change are as follows:
MSBA grant for debt service, net $ 12,530
Other general fund expenditures exceeding
revenues and transfers in (2,602)
Special revenue and permanent fund revenues
exceeding expenditures and transfers out 1,740
Current year revenue used for the acquisition
of capital assets 1,661
PILOT from RMLD 2,187
Depreciation expense exceeding debt service
principal (1,914)
Increase in OPEB liability (2,357)
Other 122
Total $ 11,123
Business-type activities. Business-type activities for the year resulted in a
change in net assets of$ 3,692. Key elements of this change are as follows:
• The electric operations had revenues of$ 88,212 and expenses and
transfers of$ 85,432, resulting in a change in net assets of$ 2,780.
The water operations had revenues and transfers of$ 5,727 and
expenses and transfers of$ 5,188, resulting in a change in net assets of
$ 539.
® The sewer operations had revenues of$ 5,129 and expenses and
transfers of$ 5,040, resulting in a change in net assets of$ 89.
34
® The landfill operations did not report any revenues or expenditures.
® The storm water management operations had revenues of$ 403 and
expenses of$ 119, resulting in a change in net assets of$ 284'.
D. FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, fund accounting is used to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds. The focus of governmental funds is to provide infor-
mation on near-term inflows, outflows and balances of spendable resources.
Such information is useful in assessing financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined
ending fund balances of$ 40,854, a change of$ 15,387 in comparison with the
prior year. Key elements of this change are as follows:
MSBA grant for debt service, net $ 12,530
Other general fund expenditures exceeding revenues* '(2,602)
Special revenue and permanent fund
revenues exceeding expenditures 1,740
Capital project fund revenues and bond proceeds
exceeding expenditures 1,615
Pilot from RMLD 2,187
Enterprise fund indirect costs 636
MBTE settlement transfered to the sewer fund (719)
Total $ 15,387
The general fund is the chief operating fund. At the end of the current fiscal year,
unreserved fund balance of the general fund was $ 6,494, while total fund
balance was $ 23,706. As a measure of the general fund's liquidity, it may be
useful to compare both unreserved fund balance and total fund balance to total
fund expenditures. Unreserved fund balance represents 8.3 percent of total
general fund expenditures, while total fund balance represents 30.5 percent of
that same amount.
The fund balance of the general fund changed by $ 13,407 during the current
fiscal year. The majority of this change is due to the MSBA grant received of
$13,206, which the Town plans to use to offset debt service costs over the next
14 years. Key factors in this change are as follows:
35
MSBA grant not budgeted $ 13,206
Use of MSBA grant for debt service (676)
Use of free cash and overlay surplus as a funding source (821)
Revenues in excess of budget 185
Expenditures less than budget 1,153
Other 360.
- Total $ 13,407
The following table reflects the trend in all the components of the general fund's
fund balance:
Last Six Fiscal Years
Subsequent
As of Reserved for Year's Stabilization Debt Total Fund
30-Jun Encumbrances Expenditures Fund Unreserved Service Balance
2005 $ 679 $ 706 $ 820 $ 3,513 . $ - $ 5,718
2006 881 662 851 4,221 - 6,615
2007 1,435 264 896 5,788 8,383
2008 1,597 227 1,454 6,451 4,362 14,091
2009 1,210 763 1,840 6,486 - 10,299
2010 1,488 1,491 1,900 6,297 12,530 23,706
Proprietary funds. Proprietary funds provide the same type of information
found in the business-type activities reported in the government-wide financial
statements, but in more detail.
Net assets of the enterprise funds at the end of the year amounted to $ 106,606,
a change of$ 3,692 in comparison with the prior year. Factors concerning the
finances of proprietary funds have already been addressed in the entity-wide
discussion of business-type.activities.
E. GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget resulted
in an overall change in appropriations of$ 285. The majority of this increase was
related to the snow and ice supplemental appropriation, which was primarily
funded through the use of free cash.
F. CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. Total investment in capital assets for governmental and business-
type activities at year end amounted to $ 220,883 (net of accumulated deprecia-
tion), a change of$ 1,673 from the prior year. This investment in capital assets
36
includes land, buildings and system, improvements, and machinery and equip-
ment.
Major capital asset events during the current fiscal year included the following:
Governmental additions:
• $ 3,297 in education improvements
• $ 906 in public safety additions
• $ 494 in roadway improvements
• $ 374 in general government additions
• $ 361 in culture and recreation additions
• $ 139 in other public works additions
Business-type additions:
• $ 4,469 in electric improvements
• $ 473 in water improvements
• $ 709 in sewer improvements
Additional information on capital assets can be found in the footnotes to the
financial statements.
Long-term debt. At the end of the current fiscal year, total bonded debt out-
standing was $ 60,729, all of which was backed by the full faith and credit of the
government.
Additional information on capital assets and long-term debt can be found in the
footnotes to the financial statements.
G. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The adopted FY11 General Fund budget of$ 75,005 is a 2.3% increase over.
the prior year. The FY11 budget is balanced.
State Aid exclusive of ARRA funds has been level at approximately$ 12,400
since 2008. FY2011 State aid will be $ 12,496. In FY2009 and FY2010, the
state used funds from the ARRA Federal Stimulus program to replace some of
their traditional aid to cities and towns. Federal ARRA stimulus funding is not
available to supplement FY2011 state aid to cities and town. To make up for this
revenue reduction, the town made an allocation from the unreserved fund bal-
ance of$ 936.
37
The tax levy for FYI of$ 51,716 represents a 3.0% increase over the prior year,
and the FYI tax rate is $ 13.80 per thousand compared to $ 13.75 in the prior
year. Overall, property values increased 2.8% to $ 3,747,546.
In early FY2010, The Board of Selectmen, acting as the Water and Sewer
Commissioners, voted to increase water Rates by 3.9% and Sewer Rates by
5.2% for all customers effective September 2010. These increases are expected
to cover all operations, planned infrastructure improvements, and debt.
The state passed legislation allowing Massachusetts municipalities to pass a
Local Option Meals Tax of 0.75% with 100% of the revenue going to the Town.
Reading Voted to accept this local option at their November 2010 Town Meeting.
The FYI revenue estimate associated with the tax is approximately $ 140.
The Town issued $ 5,525 General Obligation Bonds in July 2009: The True
Interest Cost is 2.92%. $ 5,000 is 20 year debt. It is being used to implement
comprehensive energy conservation measures through the Energy Savings
Performance Contracting (ESPC).process under MGL Chapter 25A Section 111.
The program includes improvements to 15 town and school buildings. $ 525 is a
5 year debt and was used to purchase a Fire Engine.
The Town issued a $ 165 no-interest bond in the Sewer Fund in August of 2009
through the Massachusetts Water Resources Authority program for Sewer
Rehabilitation and Infiltration/inflow reduction.
The High School Building Construction project was completed in FY2009; and in
FY2010, the Town filed the preliminary closing documents with the Massachu-
setts School Building Authority (MSBA). The $ 55,900 project was funded with a
$ 35,000 bond and $ 20,900 of progress payments from the MSBA. The MSBA
has calculated their share of the project to be $ 35,600. The Town already
received $ 20,900 of that in progress payments and MSBA is retaining $ 1,500
pending settlement of contract law suits. The'Town received the balance as a
lump sum payment of$ 13,200 from MSBA in FY2010. The MSBA grant must
be reserved and applied over the remaining term of the bond issue to pay the
same percentage of each annual principal payment on the recipient's debt for the
project. Interest earned on the balance is general fund revenue.
Each year, the unused portion of the MSBA grant will be reflected in the General
Fund-Fund Balance Reserved for Debt Service. The Total General Fund Bal-
ance as a percent of Expenditures could be distorted by this reserve. A better
measure of reserve strength uses only the unreserved fund balance. Users of
these financial statements should take this into consideration when calculating
reserve ratios.
38
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of
Reading's finances for all those with an interest in the government's finances.
Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to:
Town Accountant
Town Hall
16 Lowell Street
Reading, MA 01867
39
TOWN OF READING,MASSACHUSETTS
STATEMENT OF NET ASSETS
JUNE 30,2010
Governmental Business-Type
Activities Activities Total
ASSETS
Current:
Cash and short-term investments $ 24,091,210 $ 12,672,477 $ 36,763,687
Restricted cash 15,255;385 15,255,385
Investments
23,410,649 - 23,410,649
Receivables,net of allowance for uncollectibles: 315,560
168
Property taxes ,560
Excises 168,820 - 168,820
User fees 10,524,188 10,524,188
Departmental and other 254,433 - 254,433
Intergovernmental 276,662 - 276,662
Prepaid assets 756,954 756,954
Unamortized discounts on bonds 9,908 296 10,204
Inventory
1,869,976 1,869,976
Noncurrent:
Restricted investments - 1,400,000 1,400,000
Investment in associated companies - 97,690 97,690
Receivables,net of allowance for uncollectibles: 308,775
Property taxes 308,775 91,269
Deferred charges 90,085 1,184
Capital assets being depreciated,net 127,357,927 86,768,289 214,126,216
Capital assets not being depreciated 5,306,998 1,449,426 6,756,424
TOTAL ASSETS. 181,591,027 130,795,865 312,386,892
LIABILITIES
Current:
Warrants payable 1,463,251 6,265,627 7,728,878
Accrued liabilities 3,820,307 438,955 4,259,262
Customer advances for construction - 333,919 333,919
Customer deposits 499,197 499,197
Retainage payable 1,369,598 - 1,369,598
Other current liabilities 760,649 91,651 852,300
Current portion of long-term liabilities:
Bonds and loans payable 4,165,000, 1,492,965 5,657,965
Accrued employee benefits 63,931 73,802 137,733
Unamortized premiums on bonds 24,762 777 25,539
Noncurrent:
Bonds and loans payable,net of current portion 44,065,000 11,006,096 55,071,096
Accrued employee benefits 1,762,678 3,037,630 4,800,308
Unamortized premiums on bonds 225,181 3,104 228,285
Net OPEB obligation 4,811 ,888 945,571 5,757,459
TOTAL LIABILITIES' 62,532,245 24,189,294 86,721,539
NET ASSETS
Invested in capital assets,net of related debt 87,842,672 76,250,692 164,093,364
Restricted for:
Grants and other statutory restrictions 18,091,320 4,801,694 22,893,014
Permanent funds: 2,748,172
Nonexpendable 2,748,172
Expendable 5,528,977 - 5,528,977
Unrestricted 4,847,641 25,554,185 30,401,826
TOTAL NET ASSETS $ 119,058,782 $ 106,606,571 $ 225,665,353
See notes to financial statements. 40
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TOWN OF READING, MASSACHUSETTS
RECONCILIATION OF TOTAL GOVERNMENTAL FUND
BALANCES TO NET ASSETS OF GOVERNMENTAL
ACTIVITIES IN THE STATEMENT OF NET ASSETS
JUNE 30, 2010
Total governmental fund balances $ 40,854,667
• Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 132,664,925
• Revenues are reported on the accrual basis of accounting
and are not deferred until collection. 1,047,809
• Governmental funds report the effect of long-term debt
issuance costs, premiums, and discounts when debt is first
issued, whereas these amounts are deferred and amortized
in the statement of activities. (149,950)
• In the statement of.activities, interest is accrued on outstanding
long-term debt, whereas in governmental funds interest is not
reported until due. (490,172)
• Long-term liabilities, (bonds payable, accrued employee benefits
and net OPEB obligation) are not due and payable in the.current period,
and, therefore, are not reported in the governmental funds. (54,868,497)
Net assets of governmental activities $ 119,058,782
See notes to financial statements.
43
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a
TOWN OF READING, MASSACHUSETTS
RECONCILIATION OF THE STATEMENT OF REVENUES
EXPENDITURES,AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30,2010
NET CHANGES IN FUND BALANCES-TOTAL GOVERNMENTAL FUNDS $ 15,386,523
• Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense:
Capital outlay purchases 5,570,904
Depreciation (5,633,864)
Revenues in the statement of activities that do not provide current
financial resources are fully deferred in the statement of revenues,
expenditures and changes in fund balances. Therefore,the
recognition of revenue for various types of accounts receivable
(i.e., real estate and personal property, motor vehicle excise, etc.)
differ between the two statements. This amount represents the
net change in deferred revenue. 225,128
• The issuance of long-term debt(e.g., bonds) provides current
financial resources to governmental funds,while the repayment
of the principal of long-term debt consumes the financial
resources of governmental funds. Neither transaction, however,
has any effect on net assets:
Issuance of debt (5,525,000)
Repayments of debt 3,720,000
Current year amortization of bond premiums and costs 14,853
Increase in other long-term liabilities (OPEB) (2,357,439)
• In the statement of activities, interest is accrued on outstanding
long-term debt,whereas in governmental funds interest is not
reported until due. (53,065)
• Some expenses reported in the statement of activities,such as
compensated absences, do not require the use of current financial
resources and therefore, are not reported as expenditures in the
governmental funds. (225,609)
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 11,122,431
See notes to financial statements.
45
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TOWN OF READING,MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 3D,2010
Electric
Division Water Non Major
Fund Fund Funds Total
ASSETS
Current:
Cash and short-term investments $ 8,167,774 $ 2,144,466 $ 2,360,237 $ 12,672,477
User fees,net of allowance for uncollectibies 7,823,935 1,275,300 1,424,953 10,524,188
Prepaid expenses 756,954 - - 756,954
Deferred charges - 296 - 296
Inventory 1,634,571 232,183 3,222 1,869,976
Total current assets 18,383,234 3,652,245 3,788,412 25,823;891
Noncurrent: _ 15,255,385
Restricted cash and cash equivalents 15,255,385 - 1,400,000
Restricted investments 1,400,000 - -
Investment.in associated companies 97,690 - - 97,690
Deferred charges,net of current portion 1,184 - 1,184
14,939,218 6,213,414 8
Capital assets being depreciated,net 65,615,657 6,768,289
Capital assets not being depreciated 1,265,842 121,823 61,761 1,449,426
Total noncurrent assets 83,634,574 15,062,225 6,275,175 104,971,974
TOTAL ASSETS 102,017,808 18,714,470 10,063,587 130,795,865
LIABILITIES
Current:
Warrants payable 6,188,258 28,124 49,245 6,265,627
Accrued liabilities 343,076 95,879 - 438,955
Customer advances for construction 333,919 - - 333,919
Customer deposits 499,197 - - 499,197
Other current liabilities - - 91,651 91,651
Current portion of long-term liabilities:
Bonds and loans payable - 1,375,000 117,965 1,492,965
- 73,802
Accrued employee benefits 73,802 -
Unamortized premiums on bonds - 777 - 777
Total current liabilities 7,438,252 1,499,780 258,861 9,196,893
Noncurrent:
Bonds and loans payable 10,770,000 236,096 11,006,096
Accrued employee benefits 2,946,231 69,686 21,713 3,037,630
Unamortized premiums on bonds - 3,104 - 3,104
Net OPEB obligation 813,461 94,355 37,755 945,571
TOTAL LIABILITIES 11,197,944 12,436,925 554,425 24,189,294
NET ASSETS
Invested in capital assets,net of related debt 66,881,500 3,207,836 6,161,356 76,250,692
Restricted for depreciation fund 4,801,694 - - 4,801,694
Unrestricted 19,136,670 3,069,709 3,347,806 25,554,185
TOTAL NET ASSETS $ 90,819,864 $ 6,277,545 $ 9,509,162 $ 106,606,571
See notes to financial statements. 47
TOWN OF READING,MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30,2010
Electric
Division Water Non Major
Fund Fund Funds Total
Operating Revenues:
Charges for services $ 80,892,291 $ 4,910,491 $ 5,389,435 $ 91,192,217
Other 5,650,547 - - 5,650,547
Total Operating Revenues 86,542,838 4,910,491 5,389,435 96,842,764
Operating Expenses:
Personnel expenses - 811,202 461,208 1,272,410
Non-personnel expenses - 277,016 212,059 489,075
Intergovernmental 1,282,631 1,737,501 3,844,457 6,864,589
Depreciation 2,240,846 1,447,821 344,680 4,033,347
Energy purchases 68,012,702 34,755 28,537 68,075,994
Other 11,692,878 - - 11,692,878
Total Operating Expenses 83,229,057 4,308,295 4,890,941 92,428,293
Operating Income 3,313,781 602,196 498,494 4,414,471
Nonoperating Revenues(Expenses):
Intergovernmental revenue - - 137,730 137,730
Investment income 184,618 4,218 5,558 194,394
Interest expense (11,620) (503,318) (9,251) (524,189)
Loss on disposal of capital assets (3,571) - (3,571)
Other 711,331 93,750 805,081
Total Nonoperating Revenues(Expenses) 880,758 (405,350) 134,037 609,445
Income Before Transfers and Contributions 4,194,539 196,846 632,531 5,023,916
Capital contributions 772,279 - 772,279
Transfers in - 719,891 719,891.
Transfers out (2,186,670) (377,367) (258,994 (2,823,031)
Change in Net Assets 2,780,148 539,370 373,537 3,693,055
Net Assets at Beginning of Year 88,039,716 5,738,175 9,135,625 102,913,516
Net Assets at End of Year $ 90,819,864 $ 6,277,545 $ 9,509,162 $ 106,606,571
See notes to financial statements. 48
i
TOWN OF READING,MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30,2010
Electric
Division Water Non Major
Fund Fund Funds Total
Cash Flows From Operating Activities:
Receipts from customers and users $ 80,158,464 $ 4,957,622 $ 5,346,071 $ 90,462,157
Payments to vendors and employees (80,060,674) (1,257,656) (711,348) (82,029,878)
Customer refund,purchase power,and fuel charge adjustments 5,650,547 5,650,547
Payments to other governments - (1,737,501) (3,844,457) (5,581,958)
Net Cash Provided By.Operating Activities 5,748,137 1,962,465 790,265 8,500,868
Cash Flows From Noncapital Financing Activities 371,273
MMWEC refund 371,273 -
Other 340,056 93,750 - 433,80B
Transfers in 719,891 719,891
Transfer out (2,186,670) (377,367) (258,994) (2,823,031)
Net Cash Provided By(Used For)Noncapital Financing Activities (1,475,339) 436,274 (258,994) (1,298,059)
Cash Flows From Capital and Related Financing Activities:
Proceeds from issuance of bonds and notes - 164,670 164,670
Acquisition of capital assets (4,468,826) (473,270) (830,880) (5,772,976)
Capital grants and contributions 772,279 137,730 910,009
Principal payments on bonds and notes (550,000) (1,375,000) (168,708) (2,093,708)
Interest expense (11,620) (503,318) (9,251) (524,189)
Net Cash(Used For)Capital and Related Financing Activities (4,258,167) (2,351,588) (706,439) (7,316,194)
Cash Flows From Investing Activities
Decrease in restricted cash and investments (657,247) - - (657,247)
Investment income 184,618 4,218 5,558 194,394
Net Cash Provided By Investing Activities (472,629) 4,218 5,558 (462,853)
Net Change in Gash and Short-Term Investments (457,998) 51,369 (169,609) (576,238)
Unrestricted Cash and Short Tenn Investments,Beginning of Year 8,625,772 2,093,097 2,529,846 13,248,715
Unrestricted Cash and Short Term Investments,End of Year $ 8,167,774 $ 2,144,466 $ 2,360,237 $ 12,672,477
Reconciliation of Operating Income to Net Cash
Provided By(Used For)Operating Activities:
Operating Income $ 3,313,781 $ 602,196 $ 498,494 $ 4,414,471
Adjustments to reconcile operating income Qoss)to net
cash provided by(used for)operating activities:
Depreciation 2,240,846 1,447,821 344,680 4,033,347
Changes in assets and liabilities:
User fees receivables (736,689) (10,380) (74,088) (821,157)
Inventory and prepayments (59,122) (90,545) (1,766) (151,434)
Other assets - 297 189 486
Warrants payable 740,003 (25,024) (4,780) 710,199
Accrued liabilities 231,995 (19,113) (2,998) 209,884
Other liabilities (359,736) 9,909 .13,195 (336,632)
OPEB liability 377,059 47,305 17,340 441,704
Net Cash Provided By(Used For)Operating Activities $ 5,748,137 $ 1,962,465 $ 790,266 $ 8,500,868
See notes to financial statements.
49
TOWN OF READING, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
JUNE 30,2010
Municipal .
Light
Pension
Pension Trust Agency
Trust Fund Funds Funds
ASSETS
Cash and short term investments $ 228,011 $ 4,017,679 $ 420,065
Investments 76,580,082 1,800,000 -
Accounts receivable 612 - "
Other - 200,000 3,877
Total Assets 76,808,705 6,017,679 423,942
LIABILITIES AND NET ASSETS
Warrants payable - - 19,373
Other liabilities 158,683 - 404,569
Total Liabilities 158,683 - 423,942
NET ASSETS
Total net assets held in trust for pension benefits
$ 76,650,022 $ 6,017,679 $
and other purposes -
See notes to financial statements.
50
TOWN OF READING, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FOR THE YEAR ENDED JUNE 30,2010
Municipal
Pension Light
Trust Fund Pension
(For the Year Ended Trust Funds
December 31, 2009)
Additions:
Contributions:
Employers $ 3,686,795 $ 200,000
Intergovernmental 276,310
Plan members 2,111,844
Total contributions 6,074,949 200,000
Investment Income:
Increase in fair value of investments 9 ,128 120,760
Less: management fees 8(339090,879) -
Net investment income 8,680,249 120,760
Total additions 14,755,198 320,760
Deductions:
Benefit payments to plan members,beneficiaries,
and other systems 7,119,752 -
Refunds and transfers to other systems 229,646 -
Administrative expenses 85,350 -
919,336
Other
Total deductions 7,434,748 919,336
Net increase (decrease) 7,320,450 (598,576)
Net assets:
Beginning of year 69,329,572 6,616,255
End of year $ 76,650,022 $ 6,017,679
See notes to financial statements.
51
TOWN OF READING, MASSACHUSETTS
Notes to Financial Statements
1. Summary of Siqnificant Accounting Policies
The accounting policies of the Town of Reading (the Town) conform to
generally accepted accounting principles (GAAP) as applicable to govern=
mental units.. The following is a summary of the more significant policies:
A. Reporting Entity
The government is a municipal corporation governed by an elected Board
of Selectmen. As required by generally accepted accounting principles,
these financial statements present the government and applicable com-
ponent units for which the government is considered to be financially.
accountable. The Reading Contributory Retirement System was estab-
lished to provide retirement benefits primarily to employees and their
beneficiaries. The System is presented using the accrual basis of
accounting and is reported as a pension trust fund in the fiduciary fund
financial statements.
B. Government-Wide and Fund Financial Statements
Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net
assets and the statement of changes in net assets) report information
on all of the nonfiduciary activities of the primary government. For the
most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct
expenses of a given function or segment is offset by program revenues.
Direct.expenses are those that are clearly identifiable with a specific func-
tion or segment. Program revenues include (1) charges to customers
or applicants who purchase, use, or directly benefit from goods, services,
or privileges provided by a given function or segment and (2) grants and
contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items
not properly included among program revenues are reported instead as
general revenues.
52
Fund Financial Statements
Separate financial statements are provided for governmental funds,
proprietary funds and fiduciary funds, even though the latter are excluded
from the government-wide financial statements. Major individual govern-
mental funds and major individual enterprise funds are reported as sepa-
rate columns in the fund financial statements.
C. Measurement Focus Basis of Accounting and Financial Statement
Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the econ-
omic resources measurement focus and the accrual basis of accounting,
as is the proprietary fund and fiduciary fund financial statements. Reve-
nues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all elig-
ibility requirements imposed by the provider have been met. As a general
rule, the effect of interfund activity has been eliminated from the govern-
ment-wide financial statements.
Amounts reported as program revenues include (1) charges to customers
or applicants for goods, services, or privileges provided, (2) operating
grants and contributions, and (3) capital grants and contributions, includ-
ing special assessments. Internally dedicated,resources are reported as
general revenues rather than as program revenues. Likewise, general
revenues include all taxes and excises.
Fund Financial Statements
Governmental fund financial statements are reported using the current
financial resources measurement focus and the modified accrual basis of
accounting. Revenues are recognized as soon as they are both measur-
able and available. Revenues are considered to be available when they
are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the government con-
siders property tax revenues to be available if they are collected within
60 days of the end of the current fiscal period. All other revenue items
are considered to be measurable and available only when cash is received
by the government. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expendi-
tures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
The government reports the following major governmental funds:
53
® The general fund is the government's primary operating fund.
It accounts for all financial'resources of the general government,
except those required to be accounted for in another fund.
Proprietary funds distinguish operating revenues and expenses from non
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating
revenues of the enterprise fund are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses and depreciation on capital
assets, All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
Private-sector standards of accounting and financial reporting issued prior
to December 1, 1989 generally are followed in both the government-wide
and proprietary fund financial statements to the extent that those stan-
dards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of fol-
lowing subsequent'private-sector guidance for their business-type activi-
ties and enterprise funds, subject to this same limitation. The government
has elected not to follow subsequent private-sector guidance.
The government reports the following major proprietary funds:
® Electric Enterprise Fund
® Water Enterprise Fund
The government reports the following fiduciary funds:
The pension trust fund accounts for the activities of the Employees
Contributory Retirement System, which accumulates resources for
pension benefit payments to qualified employees.
The municipal light pension trust fund accounts for the activities of the
Municipal Light Employees Contributory Retirement System, which
accumulates resources for pension benefit payments to qualified
employees.
The agency fund is used to account for student activity funds.
D. Cash and Short-Term Investments
Cash balances from all funds, except those required.to be segregated by
law, are combined to form a consolidation of cash. Cash balances are
invested to the extent available, and interest earnings are recognized in
the General Fund. Certain special revenue, proprietary, and fiduciary
54
funds segregate cash, and investment earnings become a part of those
funds.
Deposits with financial institutions consist primarily of demand deposits,
certificates of deposits, and savings accounts. A cash and investment
pool is maintained that is available for use by all funds. Each fund's
portion of this pool is reflected on the combined financial statements
under the caption "cash and short-term investments". The interest
earnings attributable to each fund type are included under investment
income.
For purpose of the statement of cash flows, the proprietary funds consider
investments with original maturities of three months or less to be short-
term investments.
E. Investments
State and local statutes place certain limitations on the nature of deposits
and investments available. Deposits in any financial institution may not
exceed certain levels within the financial institution. Non-fiduciary fund
investments can be made in securities issued by or unconditionally
guaranteed by the U.S. Government or agencies that have a maturity of
one year or less from the date of purchase and repurchase agreements
guaranteed by such securities with maturity dates of no more than 90 days
from the date of purchase.
Investments for the Contributory Retirement System and Trust Funds
consist of marketable securities, bonds and short-term money market
investments. Investments are carried at market value.
F. Property Tax Limitations
Legislation known as "Proposition 2 '/z" limits the amount of revenue that
can be derived from property taxes. The prior fiscal year's tax levy limit is
used as a base and cannot increase by more than 2.5 percent (excluding
new growth), unless an override or debt exemption is voted. The actual
fiscal year 2010 tax levy reflected an excess capacity of$ 51,933.
G. Inventories
Inventories are valued at cost using the first-in/first-out (FIFO) method.
The costs of governmental fund-type inventories are recorded as expendi-
tures when purchased rather than when consumed. No significant inven-
tory balances were on hand in governmental funds.
H. Capital Assets
Capital assets, which include property, plant, equipment, and infra-
structure assets are reported in the applicable governmental or business-
55
type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an initial
individual cost of more than $ 5,000 and an estimated useful life in excess
of.two years. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value
of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as
projects are constructed. Interest incurred during the construction phase
of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed.
Property, plant and equipment is depreciated using the straight-line
method over the following estimated useful lives:
Assets Years
Land improvements 20
Buildings and improvements 20-40
Machinery, equipment, and
furnishings 3-20
Infrastructure 50
1. Compensated Absences
It is the government's policy to permit employees to accumulate earned
but unused vacation and sick pay benefits. All vested sick and vacation
pay is accrued when incurred in the government-wide, proprietary, and
fiduciary fund financial statements. A liability for these amounts is,
reported in governmental funds only if they have matured, for example,
as a result of employee resignations and retirements.
J. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in
the fund financial statements, long-term debt, and other long-term obliga-
tions are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net assets.
K. Fund EguitV
In the fund financial statements, governmental funds report reservations
of fund balance for amounts that are not available for appropriation or are
legally restricted by outside parties for use for a specific purpose. Desig-
56
nations of fund balance represent tentative management plans that are
subject to change.
L. Use of Estimates
The preparation of basic financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
and disclosures for contingent assets and liabilities at the date of the basic
financial statements, and the reported amounts of the revenues and
expenditures/expenses during the fiscal year. Actual results could vary
from estimates that were used.
2. Stewardship, Compliance, and Accountability
A. Budgetary Information
At the annual town meeting, the Finance Committee presents an operating
and capital budget for the proposed expenditures of the fiscal year com-
mencing the following July 1. The budget, as enacted by town meeting,
establishes the legal level of control and specifies that certain appropria-.
tions are to be funded by particular revenues. The original budget is
amended during the fiscal year at special town meetings as required by
changing conditions. In cases of extraordinary or unforeseen expenses,
the Finance Committee is empowered to transfer funds,from the Reserve
Fund (a contingency appropriation).to a departmental appropriation.
"Extraordinary" includes expenses which are not in the usual line, or are
great or exceptional. "Unforeseen" includes expenses which are not
foreseen as of the time of the annual meeting when appropriations are
voted.
Departments are limited to the line items as voted. Certain items may
exceed the line item budget as approved if it is for an emergency and for
the safety of the general public. These items are limited by the Massa-
chusetts General Laws and must be raised in the next year's tax rate.
Formal budgetary integration is employed as a management control
device during the year for the General Fund and Proprietary Funds.
Effective budgetary control is achieved for all other funds through provi-
sions of the Massachusetts General Laws.
At year end, appropriation balances lapse, except for certain unexpended
capital items and encumbrances which will be honored during the subse-
quent year.
S7
i
B. Budgetary Basis
The General Fund final appropriation appearing on the "Budget and
Actual" page of the fund financial statements represents the final amended
budget after all reserve fund transfers and supplemental appropriations.
C. BudgetlGAAP Reconciliation
The budgetary data for the general and proprietary funds is based upon
accounting principles that differ from generally accepted accounting prin-
ciples (GAAP). Therefore, in addition to the GAAP basis financial state-
ments, the results of operations of the general fund are presented in
accordance with budgetary accounting principles to provide a meaningful
comparison with budgetary data.
The following is a summary of adjustments made to the actual revenues
and other sources, and expenditures and other uses, to conform to the
budgetary basis of accounting.
Revenues Expenditures.
and Other and Other
General Fund Financing Sources Financing Uses
Revenues/Expenditures
(GAAP basis) $ 87,762,161 $ 77,834,561
Other financing sources/uses -
(GAAP basis) 3,479,105 -
Subtotal (GAAP basis) 91,241,266 77,834,561
To record use of free cash and overlay
surplus 821,252 -
Reverse beginning of year
appropriation carryforwards
from expenditures - (1,210,954)
Add end of year appropriation
carryforwards to expenditures - 1,291,729
To reverse the effects of the non-
budgeted MSBA grant(net) (12,529,683)
To reverse the effects of non-
budgeted State contributions
for teacher retirements (6,595,561) (6,595,561)
Other 81,262 360,773
Budgetary basis $ 73,018,536 $ 71,680,548
58
D. Deficit Fund Epuity
The Town reflects several special revenue fund deficits, primarily caused
by'grant expenses occurring in advance of grant reimbursements. The
deficits in these funds will be eliminated through future intergovernmental
revenues and transfers from other funds.
3. Cash and Short-Term Investments
Custodial Credit Risk- Deposits. Custodial credit risk is the risk that in the
event of a bank failure, the Town's and Contributory Retirement System's (the
System) deposits may not be returned. Massachusetts General Law Chapter
44, Section 55, limits the Town's deposits "in a bank or trust company or
banking company to an amount not exceeding sixty percent of the capital and
surplus of such bank or trust company or banking company, unless satisfac-
tory security is given to it by such bank or trust company or banking company
for such excess. Massachusetts General Law Chapter 32, Section 23, limits
the System's deposits "in a bank or trust company to an amount not exceed-
ing ten percent of the capital and surplus of such bank or trust company. The
Town and System do not have a deposit policy for custodial credit risk.
As of June 30, 2010, none of the Town's and the System's bank balances of
$ 55,585,978 and $ 683,617, respectively, were exposed to custodial credit
risk.
4. Investments
A. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not
fulfill its obligation to the holder of the investment. For short-term invest-
ments that were purchased using surplus revenues, Massachusetts
General Law, Chapter 44, Section 55, limits the Town's investments to
the top rating issued by at least one nationally recognized statistical rating
organization (NRSROs).
The Town and System do not have a policy for credit risk.
Presented below (in thousands) is the actual rating as of year end for each
investment of the Town:
I 59
Exempt Rating as of Year End
Fair From
Investment Type Value Disclosure Aaa A2
Corporate bonds $ 113 $ $ $ 113
Corporate equities 1,635 1,635 - -
Mutual funds 11 11 - -
Certificates of deposit 17,126 17,126 -
Federal agency securities 7,726 - 7,726 -
Total investments $ 26,611 $==18 772 $ 76726 $ 113
Massachusetts General Law, Chapter 32, Section 23, limits the investment
of System funds, to the extent not required for current disbursements, in the
PRIT Fund or in securities, other than mortgages or collateral loans, which
are legal for the investment of funds in savings banks under the laws of the
Commonwealth, provided that no more than the established percentage of
assets, is invested in any one security.
At June 30, 2010, the Contributory Retirement System maintained its invest-
ments in the State Investment Pool*with a fair value of$ 76,582,082. This
investment type is not rated.
*Fair value is the same as the value of the pool share. The Pension Reserves Investment Trust
was created under Massachusetts General Law, Chapter 32, Section 22, in December 9983. The
Pension Reserves Investment Trust is operated under contract with a private investment advisor,
approved by the Pension Reserves Investment Management Board. The Pension Reserves
Investment Management Board shall choose an investment advisor by requesting proposals from
advisors and reviewing such proposals based on criteria adopted under Massachusetts General
Law, Chapter 30B.
B. Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty (e.g. broker-dealer) to a transaction, a govern-
ment will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The Town and
System do not have policies for custodial credit risk.
The System's investments of$ 76,580,082 were exposed to custodial
credit risk as uninsured and uncollateralized. However, the investments
were held in the State Investment Pool.
Of the Town's investment of$ 112,675, the government has a custodial
credit risk exposure of$ 112,675 because the related securities are
uninsured, unregistered and held by the Town's brokerage firm, which is
also the Counterparty to these securities. The Town manages this
custodial credit risk with SIPC and excess SIPC.
60
4
C. Concentration of Credit is
The Town places no limit on the amount the Town may invest in any one
issuer. Investments in any one issuer (other than U.S. Treasury securities
and mutual funds)that represent 5% or more of total investments are as
follows (in thousands):
Federal Home Loan Mortgage Corp. $ 4,7291332
Certificates of Deposit $ 16,126,262
Massachusetts General Law Chapter 32, Section 23 limits the amount the
System may invest in any one issuer or security,type,with the exception of
the PRIT Fund.
The System does not have an investment in one issuer greater than 5% of
total investments,_with the exception of the PRIT Fund.
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will ad-
versely affect the fair value of an investment. Generally,.the longer the
maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. The Town and System do not have
a formal investment policy that limits investment maturities as a means
of managing its exposure to fair value losses arising from increasing
interest rates.
Information about the sensitivity of the fair values of the Town's
investments to market interest rate fluctuations is as follows:
Investment,Maturities (in Years)
Fair Less
Investment Type Value Than 1 19=5 6-10
Debt Related Securities:
Corporate bonds $ 113 $ 51 $ 62 $ -
Federal agency securities 7,726 - 4,207 3,519
Total $ 7,839 $ 51 $ 4,269 $ 3,519
E. Foreign-Currency Risk
Foreign currency risk is the risk that changes in foreign exchange rates
will adversely affect the fair value of an investment. The Town and
System do not have policies for foreign currency risk.
61
5. Taxes Receivable
Real estate and personal property taxes are levied and based on values
assessed on January 1 st of every year. Assessed values are established by
the Board of Assessor's for 100% of the estimated fair market value. Taxes
are due on a quarterly basis and are subject to penalties and interest if they
are not paid by the respective due date. Real estate and personal property
taxes levied are recorded as receivables in the fiscal year they relate to.
Fourteen days after the due date for the final tax bill for real estate taxes,,a
demand notice may be sent to the delinquent taxpayer. Fourteen days after
the demand notice has been sent, the tax collector may proceed to file a lien
against the delinquent taxpayers' property. The Town has an ultimate right
to foreclose on property for unpaid taxes. Personal property taxes cannot be
secured through the lien process.
Taxes receivable at June 30, 2010 consist of the following (in thousands):
Real Estate
2010 $ 216
Personal Property
2010 6
2009 3
2008 2
2007 2
2006 1
Prior 5
19
Tax Liens 406
Deferred Taxes 111
Taxes in Litigation 1
Total $ 753
6. Allowance for Doubtful Accounts
The receivables reported in the accompanying entity-wide financial state-
ments reflect the following estimated allowances for doubtful_accounts (in
thousands):
Governmental
Property taxes $ 129
Excises 56
62
7. Capital Assets.
Capital asset activity for the year ended June 30, 2010 was as follows (in
thousands):
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets,being depreciated:
Land improvements $ 2,526 $ 86 $ - $ 2,612
Buildings and improvements 126,785 2,316 (212) 128,889
Machinery, equipment, and furnishings 7,213 1,347 (242) 8,318
Infrastructure 38,486 779. 1,341 37,924
Total capital assets, being depreciated 175,010 4,528 (1,795) 177,743
Less accumulated depreciation for:
(527) (102) - (629)
Land improvements
Buildings and improvements (22,102) (3,392) 212 (25,282)
Machinery, equipment, and furnishings (2,626) (661) 242 (3,045)
Infrastructure 21,291 (1,479)_ 1,341 21,429
Total accumulated depreciation 46,546 5,634 1,795 50,385
Total capital assets,being depreciated, net 128,464 (1,106) - 127,358
Capital assets,not being depreciated:
Land 3,939 - - 3,939
Construction in progress 325 1,043 1,368
Total capital assets, not being depreciated 4,264 1,043 - 5,307
Governmental activities capital assets,net $ 132,728 $ 63 $ - $ 132,665
63
Beginning Ending
Balance Increases . Decreases Balance
Business-Type Activities:
Capital assets,being depreciated:
Land improvements $ 84 $ 1,353 $ $ 1,437
Buildings and improvements 16,739 .9 (207) 16,541
Machinery, equipment,and furnishings 29,884 2,495 (735) 31,644
Infrastructure 99,232 3,089 743 101,578
Total capital assets, being depreciated 145,939 6,946 (1,685) 151,200
Less accumulated depreciation for:
Land improvements (41) (7) - (48)
Buildings and improvements (8,783) (397) 207 (8,973)
Machinery, equipment, and furnishings (17,012) (986) 735 (17,263)
Infrastructure 36,244 2,643 739 38,148
Total accumulated depreciation 62,080 4,033 1,681 64,432.
Total capital assets, being depreciated, net 83,859 2,913 (4) 86,768
Capital assets, not being depreciated: .
Land 1,450 - - 1,450
Construction in progress 1,173 -
Total capital assets, not being depreciated 2,623 - 1,173 1,450
Business-type activities capital assets,net $ 86,482 $ 2,913 $ 1,177 $ 88,218
Depreciation expense was charged to functions of the Town as follows (in
thousands):
Governmental Activities:
General government $ 171
Public safety 490
Education 3,034
Public works 1,753
Health and human services 30
Culture and recreation 156
Total depreciation expense-governmental activities $ 5,634
Business-Type Activities:
Electric $ 2,241
Water 1,448
Other- Sewer 338 .
Other- Stormwater 6
Total depreciation expense- business-type activities $ 4,033
64
8. Warrants Payable
Warrants payable represent 2010 expenditures paid by July 15, 2010.
9. Deferred Revenue
Governmental funds report deferred revenue in connection with receivables
for revenues that are not considered to be available to liquidate liabilities of
the current period.
The balance of the General Fund deferred revenues.account is equal to
the total of all June 30, 2010 receivable balances, except real and personal
property taxes that are accrued for subsequent 60 day collections.
10. Long-Term Debt
A. Bond Authorizations
Long-term debt authorizations which have not been issued or rescinded
as of June 30, 2010 are as follows:
Pur ose Amount
MWRA loan program $ 404,000
Birch meadow tennis courts 140,000
Turf field improvements 275,000
Sunnyside/Fairview sewer mains 65,000
Fire ladder truck 50,000
Total $ 934,000
B. General Obligation Bonds
The Town issues general obligation bonds to provide funds for the acquisi-
tion and construction of major capital facilities. General obligation bonds
have been issued for both governmental and business-type activities.
General obligation bonds currently outstanding are as follows:
65
Amount
Serial Outstanding
Maturities Interest as of
Governmental Activities: Through Rate (s)% 6/30/10
Police station 02/01/12 4.12% $ 800,000
Coolidge Middle School 02/01/21 4.75% 5,200,000
Memorial High School 03/15/24 4.22% 27,145,000
Barrow Elementary School 06/30/24 3.96% 1,765,000
Wood End Elementary School 06/30/24 3.96% 2,100,000
Wood End Elementary School 06/30/24. 3.92% 140,000
Wood End Elementary School 04/15/24 3.94% 420,000
Wood End Elementary School 04/15/24 3.94% 635,000
Downtown Improvement projects 11/01/17 3.45% 520,000
Fire Engine 11/01/12 3.45% 240,000
Turf Field improvements 11/01/12 3.45% 225,000
Joshua Eaton refunding 07/01/13 3.05% 130,000
Birch Meadow refunding 07/01/12 3.05% 45,000
Parker School refunding 07/01/17 3.05% 1,590,000
Ladder truck 07/01/17 3.05% 640,000
Tennis courts 07/01/12 3.05% 285,000
Financial hardware and software 01/27/13 2.00% 825,000
Fire truck 08/01/14 4.61% 525,000
Energy Improvements 08/01/24 4.61% 5,000,000
Total Governmental Activities: $ 48,230,000
Amount
Serial Outstanding
Maturities Interest as of
Business-Type Activities: Throu h Rates % 06/30/10
Water treatment plant 06/30/15 3.38% $ 500,000
MWRA buy-in 04/15/27 4.00% 2,700,000
Water mains 04/15/12 3.66% 985,000
MWRA buy-in 11/01/17 3.05% 7,020,000
Water demo 07/01/17 3.05% 640,000
MWRA water supply 01/27/13 2.00% 300,000
MWPAT septic 02101/12 0.00% 12,793
MWRA sewer 08/15/12 0.00% 26,598
Fairview and Sunnyside sewer 11/01/11 3.05% 150,000
MWRA sewer 08/20/14 0.00% 164,670
Total Business-Type Activities: $ 12,499,061
66
C. Future Debt Service
The annual payments to retire all general obligation long-term debt
outstanding as of June 30, 2010 are as follows:
Governmental Principal Interest Total
2011 $ 4,165,000 $ 1,970,164 $ 6,135,164
2012 4,185,000 1,830,943 6,015,943
2013 3,810,000 1,686;344 5,496,344
2014 3,310,000 1,619,425 4,929,425
2015 3,350,000 1,433,155 4,783,155
2016-2020 16,495,000 5,039,060 21,534,060
2021-2024 12,915,000 _ 1,444,606 14,359,606
Total $ 48,230,000 $ 15,023,697 $ 63,253,697
The general fund has been designated as the sole source to repay the
governmental-type general obligation debt outstanding as of June 30,
2010:
Business-Type Princi al Interest Total
2011 $ 1,492,965 $ 467,638 $ .1,960,603
2012 1,487,965 416,116 1,904,081
2013 772,965 366,670 1,139,635
2014 764,099 339,905 1,104,004
2015 764,099 312,340 1,076,439
2016-2020 2,995,826 1,159,261 4,155,087
2021-2025 2,751,142 587,875 3,339,017
2026-2027 1,470,000 88,763 1,558,763
Total $ 12,499,061 $ 3,738,568 $ 16,237,629
D. Changes in General Long-Term Liabilities
During the year ended June 30, 2010, the following changes occurred in
long-term liabilities (in thousands):
67
Equals
Total Total Less Long-Term
Balance Balance Current Portion
7110 Additions Reductions . 6/30/10 Portion 6/30/10
Governmental Activities
Bonds payable $ 46,425 $ 5,525 $ (3,720) $ 48,230 $ (4,165) $ 44,065
Other: I
Accrued employee benefits 1,601 306 (80) 1,827 (64) 1,763
Unamortized premium
on bonds 1 275 - (25) 250 (25) 225
Net OPEB obligation 2,454 5,494 (3,136) 4,812 - 4,812
Totals $ 50,755 $ 11,325 $ (6,961) $ 55,119 $ (4,254) $ 50,865
Total Total Less Long-Term
Balance Balance Current Portion
7/1/09 Additions Reductions 6130/10 Portion 6130/10
Business-Type Activities
Bonds and loans payable $ 14,428 $ 165 $ (2,094) $ 12,499 $ (1,493) $ 11,006
Other:
Accrued employee benefits 2,953 240 (82) 3,111 (74) 3,037
Unamortized premium
on bonds 5 - (1) 4 (1) 3
Net OPEB obligation 504 1,029 (587) 946 - 946
Totals $ 17,890 $ 1,434 $ (2,764).$ 16,560 $ (1,568) $ 14,992
11. Restricted Net Assets
The accompanying entity-wide financial statements report restricted net
assets when external constraints from.grantors or contributors are placed
on net assets.
Permanent fund restricted net assets are segregated between nonexpend-
able and expendable. The nonexpendable portion represents the original
restricted principal contribution, and the expendable represents accumulated
earnings which are available to be spent based on donor restrictions.
12. Reserves of Fund Equity
"Reserves" of fund equity are.established to segregate fund balances which
are either not available for expenditure in the future or are legally set aside for
a specific future use..
68
The following types of reserves are reported at June 30, 2010:
Reserved for Encumbrances and Carryforwards-An account used to
segregate that portion of fund balance committed for expenditure of financial
resources upon vendor performance and non-lapsing appropriations.
Reserved for Expenditures- Represents the amount of fund balance
appropriated to be used for expenditures in the subsequent year budget.
Reserved for Debt Service - An account used to segregate MSBA grant
revenues restricted for debt service. The Town received a one-time MSBA
grant in fiscal year 2010. The Town intends on using these reserves to fund
debt service as follows:
2011 $ 696,991
2012 720,070
2013 743,149
2014 770,844
2015 798,539
2016-2020 4,481,976
2021-2024 4,318,114
Total $ 12,529,683
Reserved for Stabilization - An account used to segregate reserves set aside
by the Town to fund unforeseen emergencies and to fund long-term capital
projects and equipment purchases.
Reserved for Perpetual Funds Represents the principal of the nonexpend-
able trust fund investments. The balance cannot be spent for any purpose;
however, it may be invested and the earnings may be spent.
13. Commitments and Contingencies
Outstanding Lawsuits There are several pending lawsuits in which the
Town is involved. The Town's management is of the opinion that the potential
future settlement of such claims would not materially affect its financial
statements taken as a whole.
Grants -Amounts received or receivable from grantor agencies are subject to
audit and adjustment by grantor agencies, principally the federal government.
Any disallowed claims, including amounts already collected, may constitute
a liability of the applicable funds. The amount of expenditures which may
be disallowed by the grantor cannot be determined at this time, although the
Town expects such amounts, if any, to be immaterial.
69
14. Post-Employment Health Care and Life Insurance Benefits
Other Post-Employ
ment Benefits
During the year, the Town implemented GASB Statement 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions. Statement 45 requires governments to account for other post-
employment benefits (OPEB), primarily healthcare, on an accrual basis rather
than on a pay-as-you-go basis. The effect is the recognition of an actuarially
required contribution as an expense on the Statement of Revenues,
Expenses, and Changes 'in Net Assets when a future retiree earns their post-
employment benefits, rather than when they use their post-employment ben-
efit. To the extent that an entity does not fund their actuarially required contri-
bution, a post-employment benefit liability is recognized on the Statement of
Net Assets over time.
A. Plan Description
In addition to providing the pension benefits described in Note 17, the
Town provides post-employment health and life insurance benefits for
retired employees through the Town of Reading's Massachusetts
Interlocal Insurance Association (MIIA) Health Benefits Trust. Benefits,
benefit levels, employee contributions and employer contributions are
governed by Chapter 32 of the Massachusetts General Laws. As of
June 30, 2008, the actuarial valuation date, approximately 645 retirees
and 524 active employees meet the eligibility requirements. The plan
does not issue a separate financial report.
B. Benefits Provided
The Town provides post-employment medical, prescription drug, and life
insurance benefits to all eligible retirees and their surviving spouses. All
active employees who retire from the Department and meet the eligibility
criteria will be eligible to receive these benefits.
C. Funding Policy
Retirees contribute 29% of the cost of the medical and prescription drug
plan, as determined by the MIIA Health Benefits Trust. Retirees also
contribute 50% of the premium for a $5,000 life insurance.
nsurance benefit. The
Department contributes the remainder of the medical, prescription drug,
and life insurance plan costs on a pay-as-you-go basis.
D. Annual OPEB Cosfs and Net OPEB Obligation
The Town's fiscal 2010 annual OPEB expense is calculated based on
the annual required contribution of the employer (ARC), an amount actu-
arially determined in accordance with the parameters of GASB Statement
No. 45. The ARC represents a level of funding that, if paid on an ongoing
70
basis, is projected to cover the normal cost per year and amortize the
unfunded actuarial liability over a period of twenty years. The following
table shows the components of the Town's annual OPEB cost for the year
ending June 30, 2010, the amount actually contributed.to the plan, and the
change in the Town's net OPEB obligation based on an actuarial valuation
as of June 30, 2008.
Annual Required Contribution (ARC) $ 6,346,870
Interest on net OPEB obligation "
Adjustment to ARC 176,035
Annual OPEB cost 6,522,905
Contributions made (3,723,762)
Increase in net OPEB obligation 2,799,143
Net OPEB obligation- beginning of year 2,958,316
Net OPEB obligation- end of year $ 5,757,459
The Town's annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation were as follows:
Percentage of
OPEB
Annual OPEB Cost Net OPEB
Fiscal year ended Cost Contributed Obligation
2010 $ 6,522,905 57.09% $ 5,757,459
2009 $ 6,326,701 53.24% $ 2,958,316
The Town's net OPEB obligation as of June 30, 2010 is recorded as a
component of the "noncurrent liabilities" line item.
E. Funded status and Funding Progress
The funded status of the plan as of June 30, 2008, the date of the most
recent actuarial valuation was as follows:
Actuarial accrued liability (AAL) $ 60,022,927
Actuarial value of plan assets "
Unfunded actuarial accrued liability (UAAQ $ 60,022,927
Funded ratio (actuarial value of plan assets/AAL) 0%
Covered payroll (active plan members) N/A
UAAL as a percentage of covered payroll N/A
71
Actuarial valuations of an ongoing plan involve estimates of the value of
reported amounts and assumptions about the probability of events far into
the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding
the funded status of the plan and the annual.required contributions of the
employer are subject to continual revision as actual results are compared
to past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability.
for benefits.
F. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the
plan as understood by the Town and the plan members and include the
types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the Town and plan members
to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
In the June 30, 2008 actuarial valuation, the Projected Unit Credit actuarial
cost method was used. The actuarial value of assets was not determined,
as the Town has not advance funded its obligation. The actuarial assump-
tions included a 7.75% investment rate of return and an initial annual
health care cost trend rate of 10.0% which decreases to a 5.0% long-term
rate for all health care benefits after seven years. The amortization costs
for the initial UAAL is a level percentage of payroll amortization, with
amortization payments increasing at 2.5% per year for a period of 20
years.
15. Contributory Retirement System
The Town follows the provisions of GASB Statement No. 27,Accounting for
Pensions for State and Local Government Employees; (as amended by
GASB 50) with respect to the employees' retirement funds.
A. Plan Description and Contribution Information
Substantially all employees of the Town (except teachers and administra-
tors under contract employed by the School Department) are members of
the Reading Contributory Retirement System (Reading CRS), a cost
sharing, multiple employer defined benefit PERS. Eligible employees
must participate in the Reading CRS. The pension plan provides pension
72
benefits, deferred allowances, and death and disability benefits. Chapter-
32 of the Massachusetts General Laws`establishes the authority of the
Reading CRS Retirement Board. Chapter 32 also establishes contribution
percentages and benefits paid. The Reading CRS Retirement Board does
not have the authority to amend benefit provisions. As required by
Massachusetts General Laws, the System issues a separate report to the
Commonwealth's Public Employee Retirement Administration Commis-
sion.
Membership of each plan consisted of the following at December 31,
2009:
Retirees and beneficiaries receiving benefits 316
Terminated plan members entitled to but not yet
receiving benefits 27
Active plan members 353.
Total 696
Number of participating employers 2
Employee'contribution percentages are specified in Chapter 32 of the
Massachusetts General Laws. The percentage is determined by the
participant's date of entry into the system. All employees hired after
January 1, 1979 contribute an additional 2% on all gross regular earnings
over the rate of$ 30,000 per year. The percentages are as follows:
Before January 1, 1975 5%
January 1, 1975-December 31, 1983 7%
January 1, 1984-June 30, 1996 8%
Beginning July 1, 1996 9%
Employers are required to contribute at actuarially determined rates as
accepted by the Public Employee Retirement Administration Commission
(PERAC).
73
Schedule of Employer Contributions:
Year Ended Annual Required Percentage
June 30 Contribution Contributed
2001 $ 2,910,900 100%
2002 2,980,400 100%
2003 3,051,200 100%
2D04 3,124,800 100%
2005 3,405,725 100%
2006 3,488,686 100%
2007 3,696,695 100%
2008 3,785,501 100%
2009 3,600,826 100%
2010 3,686,795 100%
B. Summary of Significant Accountinq Policies
Basis of Accounting - Contributory retirement system financial statements
are prepared using the accrual basis of accounting. Plan member contri-
butions are recognized in the period in which the contributions are due.
Employer contributions are recognized when due and the employer has
made a formal commitment to provide the contributions. Benefits and
refunds are recognized when due and payable in accordance with the
terms of the plan.
Method Used.to Value Investments--Investments are reported at fair
value in accordance with PERAC requirements.
C. Funded Status and Funding Progress
The information presented below is from the Reading Contributory
Retirement System's most recent valuation.
Actuarial UAAL as
Accrued a Percent-
Actuarial Liability Unfunded age of
Actuarial Value of (AAL)- AAL Funded Covered Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (alb (c) b-a/c
06/30/09 $ 83,167 $ 121,918 $ 38,751 68.2% $ 21,005 184.5%
The Schedule of Funding Progress following the notes to the financial
statements presents multi-year trend information about the actuarial
value of plan assets relative to the actuarial accrued liability for benefits.
74
D. Actuarial Methods and Assumptions
The annual required contribution for the current year was determined
as part-of the actuarial valuation using the entry age normal actuarial
cost method. Under this method an unfunded actuarial accrued liability
of$ 38.8.million was calculated. The actuarial assumptions included
(a) 7.75% investment rate of return and (b) a projected salary increase
of 4.75%.- 8.00% per year. Liabilities for cost of living increases have
been assumed at an annual increase of 3%, on the first $ 12,000 of
benefit payments. The actuarial value of assets is determined by
projecting the market value of assets as of the beginning of the prior plan
year with the assumed rate of return during that year (7.75%) and
accounting for deposits and disbursements with interest at the assumed
rate of return. An adjustment is then applied to recognize the difference
between the actual investment return and expected return over a five-year
period. As of June 30, 2010, the unfunded actuarially accrued liability is
being amortized over 19 years using 4.5% increase in payments method.
E. Teachers
As required by State statutes, teachers of the Town are covered by the
Massachusetts Teachers Retirement System (MTRS). The MTRS is
funded by contributions from covered employees and the Commonwealth
of Massachusetts. The Town is not required to contribute.
All persons employed on at least a half-time basis, who are covered under
a contractual agreement requiring certification by the Board of Education
are eligible, and must participate in the MTRS.
Based on the Commonwealth of Massachusetts' retirement laws, employ-
ees covered by the pension plan must contribute a percentage of gross
earnings into the pension fund. The percentage is determined by the
participant's date of entry into the'system and gross earnings, up to
$ 30,0.00, as follows:
Before January 1, 1975 5%
January 1, 1975 - December 31, 1983 7%
January 1, 1984 - June 30, 1996 8%
July 1, 1996 - June 30, 2001 9%
Beginning July 1, 2001 11%
*Effective January 1, 1990, all participants hired after January 1, 1979, who
have not elected to increase to 11%, contribute an additional 2% of salary in
excess of$ 30,000.
The Town's current year covered payroll for teachers and administrators was
not available.
75
In fiscl year 2010, the Commonwealth of Massachusetts contributed
$ 6,59.5,561 to the MTRS on behalf of the Town. This is included in the
education expenditures and intergovernmental revenues in the general
fund.
16. Risk Management
The Town is exposed to various risks of loss related to torts; theft of, damage
to and destruction of assets; errors and omissions; and natural disasters for
which the government carries commercial insurance. There were no signifi-
cant reductions in insurance coverage from the previous year and have been
no material settlements in excess of coverage in any of the past three fiscal
years.
76
Town of Reading, Massachusetts Municipal Light Department
Notes to Financial Statements
1. Summary of Significant Accounting Policies
The significant accounting policies of the Town of Reading Municipal Light
Department ("the Department") (an enterprise fund of the Town of Reading)
are as follows:
A. Business Activity -The Department purchases electricity which it distrib-
utes to consumers within the towns of Reading, North Reading,
Wilmington, and Lynnfield.
B. Regulation and Basis of Accounting - Under Massachusetts General
Laws, the Department's electric rates are set by the Municipal Light Board.
Electric rates, excluding the fuel charge, cannot be changed more often
than once every three months. Rate schedules are filed with the Mass-
achusetts Department of Public Utilities (DPU). While the DPU exercises
general supervisory authority over the Department, the Department's
rates are not subject to DPU approval. The Department's policy is to
prepare its financial statements in conformity with generally accepted
accounting principles.
Proprietary funds distinguish operating revenues and expenses from non
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating
revenues of the enterprise fund are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
Private-sector standards of accounting and financial reporting-issued prior
to December 1, 1989 generally are followed in the proprietary fund finan-
cial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector
guidance for their enterprise funds, subject to this same limitation. The
Department has elected not to follow subsequent private-sector guidance.
C. Concentrations -The Department operates within the electric utility indus-
try which has undergone significant restructuring and deregulation. Legis-
lation was enacted by the Commonwealth of Massachusetts in 1998 which
changed the electric industry. The law introduced competition and pro-
77
vided consumers with choices while assuring continued reliable service.
Municipal utilities are not currently subject to this legislation.
D. Retirement Trust-The Reading Municipal Light Department Employees'
Pension Trust (the "Trust")was established on December 30, 1966, by
the Town of Reading's Municipal Light Board pursuant to Chapter 164 of
the General Laws of the Commonwealth of Massachusetts.
The Trust constitutes the principal instrument of alplan established by the
Municipal Light Board for the purpose of funding the Department's annual
required contribution to the Town of Reading Contributory Retirement
System (the System), a cost sharing, multi-employer public employee
retirement system.
E. Revenues - Revenues are based on rates established by the Department
and filed with the DPU. Revenues from sales of electricity are recorded
on the basis of bills rendered from monthly meter readings taken on a
cycle basis and are stated net of discounts. Recognition is given to the
amount of sales to customers which are unbilled at the end of the fiscal
period.
F. Cash and Short-term Investments - For the purposes,of the Statement of
Cash Flows, the Department considers both restricted and unrestricted
cash on deposit with the Town Treasurer to be cash or short-term invest-
ments. For purpose of the Statement of Net Assets, the proprietary funds
consider investments with original maturities of three rhonths or less to be
short-term investments.
G. Investments - State and local statutes place certain limitations on the
nature of deposits and investments available. Deposits in any financial
institution may not exceed certain levels within the.financial institution.
Non-fiduciary fund investments can be made in securities issued or
unconditionally guaranteed by the U.S. Government or agencies that
have a maturity of one year or less from the date of purchase and
repurchase agreements guaranteed by such securities with maturity
dates of no more than 90 days from date of purchase.
Investments for the Department and the Trust consist of U.S. government
bonds that are being held to maturity. Investments are carried at cost.
H. Inventory - Inventory consists of parts and accessories purchased for
use in the utility business for construction, operation and maintenance
purposes and is stated at average cost. Meters and transformers are
capitalized when purchased.
I. Capital Assets'and Depreciation - Capital assets, which include property,
plant, equipment, and utility plant infrastructure, are recorded at historical
cost or estimated historical cost when purchased or constructed. Donated
78
capital assets are recorded at estimated fair market value at the date of
the donation.
The cost of normal maintenance and repairs that do not add to the value
of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as they
are acquired or constructed. Interest incurred during the construction phase
of proprietary fund capital assets is included as part of the capitalized value
of the constructed asset. When capital assets are retired, the cost of the
retired asset, less accumulated depreciation, salvage value and any cash
proceeds, is charged to the Department's unrestricted net assets account.
Massachusetts General Laws require utility plant in service to be depre-
ciated at an annual rate of 3%. To change this rate, the Department must
obtain approval from the DPU. Changes in annual depreciation rates
may be made for financial factors relating to cash flow for plant expansion,
rather than engineering factors relating to estimates of useful lives.
In 2010, the Department requested and was granted permission by the
DPU to temporarily reduce its depreciation rate to 2%for the fiscal year.
J. Accrued Compensated Absences - Employee vacation leave is vested
annually but may only be carried forward to the succeeding year with
supervisor approval and, if appropriate, within the terms of the applicable
Department policy or union contract. Generally, sick leave may accumu-
late according to union and Department contracts and policy, and is paid
upon normal termination at the current rate of pay. The Department's
policy is to recognize vacation costs at the time payments are made.
The Department records accumulated, unused, vested sick pay as a lia-
bility. The amount recorded is the amount to be paid at termination at the
current rate of pay.
K. Long-Term Obligations -The proprietary fund financial statements report
long-term debt and other long-term obligations as liabilities in the pro-
prietary fund statement of net assets.
L. Use of Estimates-The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures for contingent assets and liabilities
at the date of the financial statements, and the reported amounts of the
revenues and expenses during the fiscal year. Actual results could vary
from estimates that were used.
M. Rate of Return -The Department's rates must be set such that earnings
attributable to electric operations do not exceed eight percent of the net
cost of plant. The audited financial statements are prepared in accor-
dance with auditing standards generally accepted in the United States of
America. To determine the net income subject to the rate of return, the
79
Department performs the following calculation. Using the net income per
the audited financials, the return on investment to the Town of Reading
is added back, the fuel charge adjustment is added or deducted, and
miscellaneous debits/credits (i.e. gain/loss on disposal of fixed assets,
etc.) are added or deducted, leaving an adjusted net income figure for
rate of return purposes. Investment interest income and bond principal
payments are then deducted from this figure to determine the net income
subject to the rate of return. The net income subject to the.rate of return
is then subtracted from the allowable eight percent rate of return, which
is calculated by adding the book value of net plant and the investment in
associated companies less the contributions in aid of construction multi-
plied by eight percent. From this calculation, the Municipal Light Board will
determine what cash transfers need to be made at year end.
2. Cash and Investments
Cash and investments as of June 30, 2010 are classified in the accompa-
nying financial statements as follows:
Statement of net assets:
Unrestricted cash and short-term investments $ 8,167,774
Restricted cash and short-term investments 15,255,385
Restricted investments 1,400,000
Fiduciary funds:
Cash and short-term investments 4,017,679
Investments 1,800,000
Total cash and investments $ 30,640,838
Cash and investments at June 30, 2010 consist of the following:
Cash on hand $ 3,000
Deposits with financial institutions 27,437,838
Investments 3,200,000
Total cash investments $ 30,640,838
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that the fair value of an investment will be
adversely affected by changes in market interest rates. Generally, the
longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. One of the ways that the
Department manages its exposure to interest rate risk is by purchasing
a combination of shorter term and longer term investments.and by timing
cash flows from maturities so that a portion of the portfolio is maturing or
80
i
coming close to maturity evenly over time as necessary to provide the
cash flow and liquidity needed for operations.
As of June 30, 2010, the Department (including the Pension Trust) had the
following investments:
Restricted Pension Maturity Moody's
Investments Trust Date Ratin
Government agency bonds
Freddie Mac $ 1,400,000 $ - 7/15/2014 AAA
Freddie Mac - 1,800,000 2/15/2015 AAA
Total $ 1,400,000 $ 1,800,000
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that the issuer of an investment will not fulfill
its obligation to the holder of the investment. This is measured by the assign-
ing of a rating by a nationally recognized statistical rating organization. Pre-
sented below is the actual rating as of year end for each of the Department's
(including the Pension Trust) investment types:
Minimum Rating as of Year End
Legal Not
Investment Type Amount Rat AAA Rated
Government agency bonds $ 3,200,000 N/A $ 3,200,000 $ -
Total $ 3,200,000 $ 3;200,000 $ -
Concentration of Credit Risk
The Department follows the Town of Reading's investment policy,which does
not limit the amount that can be invested in any one issuer beyond that stipu-
lated by Massachusetts General Laws. Investments in any one issuer (other
than U.S. Treasury securities, mutual funds, and external investment pools)
that represent more than 5% of the Department's total investments (including
the Pension Trust investments) are as follows:
Reported
Issuer Investment Type Amount
Freddie Mac Government agency bonds $ 3,200,000
Custodial Credit Risk
Custodial Credit Risk for deposits is the risk that, in the event of the failure of
a depository financial institution, the Department will not be able to recover its
deposits or will not be able to recover collateral securities that are in the pos-
81
session of an outside party. The custodial credit risk for investments is the
risk that, in the event of the failure of the counterparty (e.g., broker-dealer)to
a transaction, the Department will not be able to recover the value of its
investments or collateral securities that are in the possession of another
party. Massachusetts General Laws, Chapter 44, section 55, limits deposits
"in a bank or trust company or banking company to an amount not exceeding
sixty per cent of the capital and surplus of such bank or trust company or
banking company, unless satisfactory security is given to it by such bank or
trust company or banking company for such excess." The Department
follows the Massachusetts statute as written, as well as the Town of
Reading's deposit policy for custodial credit risk.
Because the Department pools its cash with the Town of Reading, the spe-
cific custodial credit risk of the Department's deposits could not be deter-
mined at June 30, 2010. As of June 30, 2010, Department investments
(including the Pension Trust) in the following investment types were held,by
the same broker-dealer(counterparty)that was used by the Department to
buy the securities:
Investment Type Reported Amount
Government agency,bonds $ 3,200,000
Total $ 3,200,000
3. Restricted Cash and Investments
Restricted cash and investments consist of the following at June 30, 2010:
Cash Investments
Depreciation fund $ 4,801,694 $ -
Deferred fuel reserve 2,326,112 -
Rate stabilization 3,949,468 1,400,000
Deferred energy conservation reserve 308,882 -
Reserve for uncollectible accounts 200,000 -
Sick leave benefits 3,020,033 -
Hazardous waste fund 150,000 -
Customer deposits 499,196 -
Total $ 15,255,385 $ 1,400,000
Restricted investments are invested in government agency bonds, which will
be held to maturity, and are reported at book value of$ 1,400,000. The fair
market value of the investments at June 30, 2010 was $ 1,401,316.
The Department maintains the following restricted cash accounts:
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- Depreciation fund -The Department is normally required to reserve
3.0% of capital assets each year to fund capital improvements. The
Department received special permission from the DPU to reduce this
rate to 2% for fiscal year 2010.
- Deferred fuel reserve -The Department transfers the difference
between the customers' monthly fuel charge adjustment and actual
fuel costs into this account to be used in the event of a sudden
increase in fuel costs.
- Rate stabilization The Department transfers funds in excess of 8%.
of capital assets to this account to be used to stabilize customer rates.
- Deferred energy conservation reserve - This account is used to
reserve monies collected from a special energy charge added to cus-
tomer bills. Customers who undertake measures to conserve and
improve energy efficiency can apply for rebates that are paid from this
account.
- Reserve for uncollectible accounts -This account was set up to offset
a portion of the Department's bad debt reserve.
- Sick leave benefits -This account is used to offset the Department's
actuarially determined compensated absence liability.
Hazardous waste fund -This reserve was set up by the Board of
Commissioners to cover the Department's insurance deductible,in
the event of a major hazardous materials incident.
Customer deposits - Customer deposits that are held in escrow.
4. Accounts Receivable
Accounts receivable consists of the following at June 30, 2010:
83
Customer Accounts:
Billed $ 3,775,128
Less allowances:
Uncollectible accounts (200,000)
Sales discounts 353,510)
Total billed 3,221,618
Unbilled„net 4,055,159
Total customer accounts 7,276,777
Other Accounts:
Merchandise sales 69,192
MMWEC flush 387,497
Liens and other 90,469
Total other accounts 547,158
Total net receivables $ 7,823,935
5. Prepaid Expenses
Prepaid expenses consist of the following:
Insurances $ 272,954
Purchase power 61,843
PASNY prepayment fund 247,207
WC Fuel-Watson 174,950
Total $ 756,954
6. Inventory
Inventory is comprised of supplies and materials at June 30, 2010, and is
valued using the average cost method.
7. Investment in Associated Companies
Under agreements with the New England Hydro-Transmission Electric Com-
pany, Inc. (NEH) and the New England Hydro-Transmission Corporation
(NHH), the Department has made the following advances to fund its equity
requirements for the Hydro-Quebec Phase II interconnection. The Depart-
ment is carrying its investment at cost, reduced by shares repurchased..
The Department's equity position in the Project is less than one-half of one
percent.
84
Investment in associated companies consists of the following, at June 30, 2010:
New England Hydro-Transmission
Electric Company, Inc. $ 31,
New England Hydro-Transmission Corporation 66,4438 38
Total $ 97,690
8. Capital Assets
The following its a summary of fiscal year 2010 activity in capital assets (in
thousands):
Beginning Ending
Balance, Increases Decreases Balance
Business-Type Activities:
Capital assets,being depreciated: 13,521
Structures and improvements $ 13,512 $ 9 $ - $
27,856 1,847 (452) 29,251
Equipment and furnishings
70,673 2,613 (684) 72,602
Infrastructure
Total capital assets,being depreciated 112,041 4,469 (1,136) 115,374
Less accumulated depreciation for:
Structures and improvements (6,515) (257) - (6 772)
Equipment and furnishings (16,374) (810) 452 (16,732)
Infrastructure (25,762 1,173 680 26,255)
Total accumulated depreciation 48,651 (2,240 1,132 (49,759)
Total capital assets,being depreciated,net 63,390 2,229 (4) 65,615
Capital assets,not being depreciated: _ 1,266
Land 1,266 -
Total capital assets,not being depreciated 1,266 - 1,266
Capital assets,net $ 64,656 $ 2,229 $ (4) $ 66,881
9. Accounts Payable
Accounts payable represent fiscal 2010 expenses that were paid after June 30,
2010.
1 o. Customer Deposits
This balance represents deposits received from customers that are held in
escrow.
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11. Customer Advances for Construction
This balance represents deposits received from vendors in'advance for work to
be performed by the Department. The Department recognizes these deposits
as revenue after the work has been completed.
12. Accrued Liabilities
Accrued liabilities consist of the following at June 30, 2010:
Accrued payroll $ 199,601
Accrued interest 1,112
Other 142,363
Total $ 343,076
13. Bonds Payable
The following summarizes activity in bonds payable for the year ended
June 30, 2010.
Balance Balance Less Long-Term
7/1/09 Maturities 6/30/10 Current Portion
$ 550,000 $ 550,000 $ - $ - $ -
14. Accrued Employee Compensated Absences
Department employees are granted sick leave in varying amounts. Upon
retirement, termination, or death, employees are compensated for unused
sick leave (subject to certain limitations) at their then current rates of pay.
15. Restricted Net Assets
The proprietary fund financial statements report restricted net assets when
external constraints are placed on net assets. Specifically, restricted net
assets represent depreciation fund reserves, which are restricted for future
capital costs.
86
16. Post-Employment Health Care and Life Insurance Benefits
Other Post-Employment Benefits
The Department follows GASB Statement 45,Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions.
Statement 45 requires governments to account for other post-employment
benefits (OPEB), primarily healthcare, on an accrual basis rather than on a
pay-as-you-go basis. The effect is the recognition of an actuarially required
contribution as an expense on the Statement,of Revenues, Expenses, and
Changes in Net Assets when a future retiree earns their post-employment .
benefits, rather than when they use their post-employment benefit. To the
extent that an entity does not fund their actuarially required contribution, a
post-employment benefit liability is recognized on the Statement of Net
Assets over time.
A. Plan Description
In addition to.providing the pension benefits described in Note 17, the
Department provides post-employment health and life insurance benefits
for retired employees through the Town of Reading's Massachusetts Inter-
local Insurance Association (MIIA) Health Benefits Trust. Benefits, benefit
levels, employee contributions and employer contributions are governed
by Chapter 32 of the Massachusetts General Laws. As of June 30, 2008,
the actuarial valuation date, approximately 72 retirees and 64 active
employees meet the eligibility requirements. The plan does not issue a
separate financial report.
B. Benefits Provided
The Department provides post-employment medical, prescription drug,
and life insurance benefits to all eligible retirees and their surviving
spouses. All active employees who retire from the Department and meet
the eligibility criteria will be eligible to receive these benefits.
C. Funding Policy
Retirees contribute 30% of the cost of the medical and prescription drug
plan, as determined by the MIIA Health Benefits Trust. Retirees also
contribute 50% of.the premium for a $ 5,000 life insurance benefit. The
Department contributes the remainder of the medical, prescription drug,
and life insurance plan costs on a pay-as-you-go basis.
D. Annual OPEB Costs and Net OPEB Obligation
The Department's fiscal 2010 annual OPEB expense is calculated based
on the annual required contribution of the employer (ARC), an amount
87
actuarially determined in accordance with the parameters of GASB State-
ment No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover the normal cost per year and amortize
the unfunded actuarial liability over a period of twenty years. The follow-
ing table shows the components of the Department's annual OPEB cost
for the year ending June 30, 2010, the amount actually contributed to the
plan, and the change in the Department's net OPEB obligation based on
an actuarial valuation as of June 30, 2008.
Annual Required Contribution (ARC) $ 878,668
Interest on net OPEB obligation -
Adjustment to ARC -
Annual OPEB cost 878,668
Contributions made (501,609)
Increase in net OPEB obligation 377,059
Net OPEB obligation- beginning of year 436,402
Net OPEB obligation-end of year $ 813,461
The Department's annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation for fiscal year 2010 and
the two preceding fiscal years were as follows:
Annual Percentage of
OPEB OPEB Net OPEB
Fiscal year ended Cost Cost Contributed Obligation
.,06/30108 N/A N/A N/A
06/30/09 $ 890,140 50.97% $ 436,402
06/30/10 $ 878,668 57.09% $ 813,461
The Department's net OPEB obligation as of June 30, 2010.is recorded as
a component of the "noncurrent liabilities" line item in the Statements of
Net Assets
E. Funded Status and Funding Progress
The funded status of the plan as of June 30, 2008, the date of the most
recent actuarial valuation was as follows:
88
Actuarial accrued liability (AAL) $ 8,085,388
Actuarial value of plan assets -
unfunded actuarial accrued liability (UAAL) $ 8,085,388
Funded ratio (actuarial value of plan assets/AAL) 0%
Covered payroll (active plan members) Not available
UAAL as a percentage of covered payroll Not available
Actuarial valuations of an ongoing plan involve estimates of the value of
reported amounts and assumptions about the probability of events far into
the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding
the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared
to past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multi-
' year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability
for benefits.
F. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the
plan as understood by the Department and the plan members and include
the types of benefits provided at the time of each valuation and the his-
torical pattern of sharing of benefit costs between the Department and
plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce short-term volatility
in actuarial accrued liabilities and the actuarial value of assets, consistent
with the long-term perspective of the calculations.
In the June 30, 2008 actuarial valuation, the Projected Unit Credit actuarial
cost method was used. The actuarial value of assets was not determined,
as the Department has not advance funded its obligation. The actuarial
assumptions included a 7.75% investment rate of return and an initial
annual health care cost trend rate of 10.0%which decreases to a 5.0%
long-term rate for all health care benefits after seven years. The amortiza-
tion costs for the initial UAAL is a level percentage of payroll amortization,
with amortization payments increasing at 2.5% per year for a period of
20 years.
17. Pension Plan
The Department follows the provisions of GASB Statement No. 27, (as,
amended by GASB 50)Accounting for Pensions for State and Local
89
Government Employees,with respect to the employees' retirement funds.
Chapter 32 of the Massachusetts General Laws assigns the System the
authority to establish and amend benefit provisions of the plan, and the
State legislature has the authority to grant cost-of-living increases. The
System issues a publicly available financial report which can be obtained
through the Town of Reading Contributory Retirement system at Town
Hall, Reading, MA.
A. Plan Description
The Department contributes to the Town of Reading Contributory Retire-
ment System (the System), a cost-sharing, multiple-employer, defined
benefit pension plan administered by a Town Retirement Board. The
System provides retirement, disability and death benefits to plan mem-
bers and beneficiaries. Chapter 32 of the Massachusetts General Laws
assigns the System the authority to establish and amend benefit provi-
sions of the plan, and grant cost-of-living increases.
B. Funding Policy
Plan members are required to contribute to the System at rates ranging
from 5% to 11% of annual covered compensation. The Department is
required to pay into the System its share of the remaining system wide
actuarially determined contribution plus administration costs which are
apportioned among the employers based on active covered payroll.
The contributions of plan members and the Department are governed
by Chapter 32 of the Massachusetts General Laws. The Department's
contributions to the System for the years ended June 30, 2010, 2009, and
2008 were $ 919,336, $ 896,185, and $ 1,055,758, respectively, which
were equal to its annual required contributions for each of these years.
18. Participation in Massachusetts Municipal Wholesale Electric
Company
The Town of Reading, acting through its Light Department, is a participant in
certain Projects of the Massachusetts Municipal Wholesale Electric Company
(MMWEC).
MMWEC is a public corporation and a political subdivision of.the Common-
wealth of Massachusetts, created as a means to develop a bulk power supply
for its Members and other utilities. MMWEC is authorized to construct, own,
or purchase ownership interests in, and to issue revenue bonds to finance,
electric facilities (Projects). MMWEC has acquired ownership interests in
electric facilities operated by other entities and also owns and operates its
own electric facilities. MMWEC sells all of the capability (Project Capability)
of each of its Projects to its Members and other utilities (Project Participants)
under Power Sales Agreements (PSAs). Among other things, the PSAs
90
require each Project Participant to pay its pro rata share of MMWEC's costs
related to the Project, which costs include debt service on the revenue bonds
issued by MMWEC to finance the Project, plus 10% of MMWEC's debt ser-
vice to be paid into a Reserve and Contingency Fund. In addition, should a
Project Participant fail to make any payment when due, other Project Partici-
pants of that Project may be required to increase (step-up) their payments
and correspondingly their Participant's share of that Project's Project Capa-
bility to an additional amount not to exceed 25% of their original Participant's
share of that Project's Project Capability. Project Participants have cove-
panted to fix, revise, and collect rates at least sufficient to meet their obliga-
tions under the PSAs.
MMWEC has issued separate issues of revenue bonds for each of its eight
Projects, which are payable solely from, and secured solely by, the reve-
nues derived from the Project to which the bonds relate, plus available funds
pledged under MMWEC's Amended and Restated General Bond Resolution
(GBR)with respect to the bonds of that Project. The MMWEC revenues
derived from each Project are used solely to provide for the payment of the
bonds of any bond issue relating to such Project and to pay MMWEC's cost
of owning and operating such Project and are not used to provide for the
payment of the bonds of any bond issue relating to any other Project.
MMWEC operates the Stony�Brook Intermediate Project and the Stony
Brook Peaking Project, both fossil-fueled power plants. MMWEC has a 3.7%
interest in the W.F. Wyman Unit No. 4 plant, which is operated and owned by
its majority owner, FPL Energy Wyman IV, LLC, a subsidiary of NextEra
Energy Resources LLC (formerly FPL Energy LLC), and a 4.8% ownership
interest in the Millstone Unit 3 nuclear unit, operated by Dominion Nuclear
Connecticut, Inc. (DNCI), the majority owner and an indirect subsidiary of
Dominion Resources, Inca DNCI also owns and operates the Millstone Unit 2
nuclear unit. The operating license for the Millstone Unit 3 nuclear unit
extends to November 25, 2045:
A substantial portion of MMWEC's plant investment and financing.program
is an 11.6% ownership interest in the Seabrook Station nuclear generating
unit operated by NextEra Energy Seabrook, LLC (NextEra Seabrook)
(formerly FPL Energy Seabrook LLC), the majority owner and on indirect
subsidiary of NextEra Energy Resources LLC (formerly FPL Energy LLC).
The operating license for Seabrook Station extends to March, 2030. NextEra
Seabrook has submitted an application to extend the Seabrook Station
operating license for an additional 20 years.
Pursuant to the PSAs, the MMWEC Seabrook.and Millstone Project Partici-
pants are liable for their proportionate share of the costs associated with
decommissioning the plants, which costs are being funded through monthly
Project billings. Also the Project Participants are liable for their proportionate
share of the uninsured costs of a nuclear incident that might be imposed
under the Price-Anderson Act (Act). Originally enacted in 1957, the Act has
91
I
been renewed several times. In July 2005, as part of the Energy Policy Act
of 2005, Congress extended the Act until the end of 2025.
Reading Municipal Light Department has entered into PSAs and Power
Purchase Agreements (PPAs)with MMWEC. Under both the PSAs and
PPAs, the Department is required to make certain payments to MMWEC
payable solely from Department.revenues. Under the PSAs, each Participant
is unconditionally obligated to make all payments due to MMWEC, whether
or not the Project(s) is completed or operating, and notwithstanding the
suspension or interruption of the output of the Project(s).
MMWEC is involved in various legal actions. In the opinion of MMWEC
management, the outcome of such actions will.not have a material adverse
effect on the financial position of the company.
Seven municipal light departments that are Participants under PSAs with
MMWEC have submitted a demand for arbitration of a dispute relating to
charges under the PSAs. MMWEC cannot predict the outcome of the
arbitration demand, but in the opinion of MMWEC management, it will not
have a material adverse effect on the financial position of MMWEC.
After the July 1, 2010 principal payment, total capital expenditures for
MMWEC's Projects amounted to $ 1,574,094,000, of which $ 113,385,000
represents the amount associated with the Department's share of Project
Capability of the Projects in which it participates, although such amount is
not allocated to the Department. MMWEC's debt outstanding for the Projects
includes Power Supply System Revenue Bonds totaling $ 502,245,000, of
which $ 26,370,000 is associated with the Department's share of Project
Capability of the Projects in which it participates, although such amount is
not allocated to the Department. After the July 1, 2010 principal payment,
MMWEC's total future debt service requirement on•outstanding bonds issued
for the Projects is $ 532,190,000, of which $ 26,829,000 is anticipated to be
billed to the Department in the future.
The estimated aggregate amount of Reading Municipal Light Department's
required payments under the PSAs and PPAs, exclusive of the Reserve and
Contingency Fund billings, to MMWEC at June 30, 2010 and estimated for
future years is shown below.
Annual Costs
For years ended June 30, 2011 $ 4,674,000
2012 4,657,000
2013 4,702,000
2014 4,154,000
2015 3,189,000
2016-2019 5,453,000
Total $ 26,829,000
92
In addition, under the PSAs, the Department is required to pay to MMWEC
its share of the Operation and Maintenance (O&M) costs of the Projects in
which it participates. The Department's total O&M costs including debt
service under the PSAs were $ 14,350,000 and $ 16,070,000 for the years
ended June 30, 2010 and 2009, respectively.
19. Environmental Remediation
In August of 2009,during the Transformer Upgrade Project at Gaw Sub-
station, polychlorinated biphenyls (PCB) contaminated soil was discovered.
This contamination was traced to a capacitof bank lineup located on the south
side of the Gaw Substation control house. Once utilized to stabilize voltage,
these capacitor banks were removed from the substation decades prior to the
project.
As of June 30, 2010, the cost for this cleanup has eclipsed $ 1.1 M. Addi-
tional soil remediation costs for FY11 are expected to be $ 650,000. The
soil sampling, analysis and remediation of the area should be.complete by
October 30, 2010.
Cleanup of the soil has been conducted by a Commonwealth of Massachu-
setts Licensed Site Professional (LSP) in concert with the United States
Environmental Protection Agency (US EPA) and the Massachusetts
Department of Environmental Protection (MA DEP)requirements. The
Department has included in its rate structure a Hazardous Material Charge
of$ 0.001/kWh, which is designed to recover the Gaw Substation soil
remediation costs over three years.
20: Leases
Related Party Transaction - Property Sub-Lease
The Department is sub-leasing facilities to the Reading Massachusetts
Town Employees Federal Credit Union. The original sub-lease agreement
commenced in December 2000 and ended in November 2005. A new agree-
ment, which extended the lease through November 30, 2008, was signed on
December 1, 2005. An additional amendment, effective December 1, 2008,
extends the lease through November 30, 2011. The following is the future
minimum rental income for the years ending June 30:
2011 $ 8,712 .
2012 3,630
Total $ 12,342
93
TOWN OF READING, MASSACHUSETTS
SCHEDULE OF FUNDING PROGRESS
REQUIRED SUPPLEMENTARY INFORMATION
June 30,2010
(Unaudited)
(Amounts Expressed in thousands)
Employees' Retirement System
Actuarial UAAL as
Accrued a Percent-
Actuarial Liability Unfunded age of
Actuarial Value of (AAL)- AAL Funded Covered Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date ) b-a) (a/b) (c) b-a /c
06/30/00 $ 54,076 $ . 78,486 $ 24,410 68.9% $ 15,798 154.5%
06/30/01 $ 58,286 $ 82,550 $ 24,264 70.6% $ 16,129 150.4%
06/30/02 $ 60,933 $ 86,888 $ 25,955 70.1% $ 16,855 154.0%
06/30/03 $ 62,897 $ 91,302 $ 28,405 68.9% $ 16,734 169.7%
06/30/04 $ 66,850 $ 95,961 $ 29,111 69.7% $ 17,487 166.5%
06/30/05 $ 71,468 $ 102,153 $ 30,685 70.0% $ 18,048 170.0%
06/30/06 $ 77,151 $ 106,238 $ 29,087 72.6% $ 18,860 154.2%
06/30/07 $ 84,784 $ 112,012 $ 27,228 75.7% $ 19,313 141.0%
06/30/09 $ 83,167 $ 121,918 $ 38,751 68.2% $ 21,005 . 184.5%
Other Post-Employment Benefits
UAAL as
Actuarial a Percent-
Actuarial Accrued Unfunded age of
Actuarial Value of Liability AAL Funded Covered Covered
UAAL
Valuation . Assets (AAL) ( ) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) f(b-a /c
06/30/08 $ - $ 60,023 $ 60,023 0.0% N/A N/A
See Independent Auditor's Report
94
TOWN OF READING,MASSACHUSETTS
COMBINING BALANCE SHEET
NO NMAJOR GOVERNMENTAL FUNDS
JUNE 30,2010
Special Revenue Funds
Federal State Revolving Receipts
Grants Grants Funds Reserved
ASSETS
Cash and short-term investments $ (1,789) $ 151,091 $ 2,342,443 $ 1,905,286
Investments _
Receivables: 39,342 -
Intergovernmental
164,955 72,365
Total Assets $ 163,166 $ 223,456 $ 2,381,785 $ 1,905,286
LIABILITIES AND FUND BALANCE
Liabilities:
Warrants payable $ 66,934 $ 23,773 $ 115,082 $
Accrued liabilities 222 -
Deferred revenue _
Retainage payable -
Total Liabilities 66,934 23,995 115,082
Fund Balances:
Reserved for:
Perpetual(nonexpendable)
Permanent funds - -
Unreserved:
Undesignated,reported in:
Special revenue funds ' 96,232 199,461 2,266,703 1,905,286
Capital project funds _ _
Permanent funds -
Total Fund Balance 96,232 199,461 2,266,703 1,905,286
Total Liabilities and
Fund Balance $ 163,166 $ 223,456 $ 2,381,785 $ 1,905,286
95
S ecial Revenue Funds
Gifts and Trust Reserve
Donations Funds Funds Subtotals
$ 897,526 $ - $ 196,433 $ 5,490,990
- 8,278,616 - 8,278,616
_ 276,662
$ 897,526 $ 8,278,616 $ 196,433 $ 14,046,268
$ 97,948 $ 1,467 $ - $ 305,204
222
97,948 1,467 - 305,426
2,748,172 - 2,74.8,172
799,578 - 196,433 5,463,693
_ 5,528,977 - 5,528,977
799,578 8,277,149 12ML3L 13,740,842
$ 897,526 $ 8,278,616 $ 196,433 $ 14,046,268.
(continued)
96
TOWN OF READING,MASSACHUSETTS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2010
(continued) Capital Project Funds
Total
Town School Nonmajor
Capital Capital Governmental
Project Funds Project Funds Subtotals Funds
ASSETS
Cash and short-term investments $ 604,207 $ 4,721,469 $ 5,325,676 $ 10,816,666
- - 8,278,616
Investments -
Receivables: _ _ 276,662
Intergovernmental _
Total Assets $ 604,207 $ 4,721,469 $ 5,325,676 $ 19,371,944
LIABILITIES AND FUND BALANCE
Liabilities: $ $ 305,204
Warrants payable $ $
Accrued liabilities - 548,331 548,331 548,331
Deferred revenue _
_ 222
Retainage payable - 1,369,598 1,369,598 1,369,598
Total Liabilities - 1,917,929 1,917,929 2,223,355
Fund Balances:
Reserved for:
Perpetual(nonexpendable) 2,748,172
permanent.funds - -
Unreserved:
Undesignated,reported in: _ 5,463,693
Special revenue funds
Capital project funds 604,207 2,803,540 3,407,747 3,407,747
Permanent funds - - - 5,528,977
Total Fund Balance 604,207 2,803,540 3,407,747 17,148,589
Total Liabilities and
Fund Balance $ 604,207 $ 4,721,469 $ 5,325,676 $ 19,371,944
97
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98
TOWN OF READING,MASSACHUSETTS
i
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2010
Special Revenue Funds
Federal State Revolving Receipts
Grants Grants Funds Reserved
Revenues:
$ - $ 3,698,885 $ 43,350
Departmental $
Intergovernmental 2,993,454 1,939,963 150,438
Investment income - 315 8,600
Other - - 93,136 166,139
Total Revenues 2,993,454 1,939,963 3,942,774 218,089
Expenditures:
Current:
General government 16,536 39,538 192,746
Public safety 43,805 82,387 589,592
Education 2,770,782 1,294,097 2,393,195
Public works - 394,882 529
Health and human services 111,295 44,775 19,560
Culture and recreation 16,669 8,792 438,726
Total Expenditures 2,959,087 1,864,471 3,634,348
Excess(deficiency)of revenues over
(under)expenditures 34,367 75,492 308,426 218,089
Other Financing Sources(Uses): -
Issuance of bonds
Transfers out - - 147,066 (1,228,899)
Total Other Financing Sources(Uses) - - 147,066 (1,228,899)
Change in fund balances 34,367 75,492 161,360 (1,010,B10)
Fund Balances,beginning of year 61,865 123,969 2,105,343 2,916,096
Fund Balances,end ofyear $ 96,232 $ 199,461 $ 2,266,703 $ 1,905,286
99
Special Revenue Funds
Gifts and Trust Reserve
Donations Funds Funds Subtotals
$ $ $ $ 3,742,235
_ 5,083,855
767,784 57,885 834,584
862,499 540 - 1,122,314
862,499 768,324 57,885 10,782,988
1,526 2,031 - 252,377
1,119 - - 716,903
57,377 - 7,725 6,523,176
1,518 122,000 - 518,929
9,070 106,862 291,562
267,527 7,845 - 739,559
338,137 238,738 7,725 9,042,506
524,362 529,586 50,160 1,740,482
(1,375,965)
(1,375,965)
524,362 529,586 50,160 364,517
275,216 7,747,563 146,273 13,376,325
$ 799,578 $ 8,277,149 $ 196,433 $ 13,740,642
(continued)
100
TOWN OF READING,MASSACHUSETTS
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2010
(continued) Capital Project Funds _
Total
Town School Nonmajor
Capital Capital Governmental
Proiect Funds Proiect Funds Subtotals Funds
Revenues: $ $ - $ 3,742,235
Departmental $ -
Intergovernmental - 187,000 187,000 5,270,855
834,584
Investment income _ 1,122,314
Other -
Total Revenues - 187,000. 187,000 10,969,988
Expenditures:
Current: 89,303 341,680
General government 89,303
Public safety 524,878 - 524,878 1,241,781
Education - 3,104,964 3,104,964 9,628,140
Pubiicworks 2B4,616 - 284,616 803,545
_ _ . 291,562
Health and human services' - g2, 832,497
Culture and recreation 92,938
Total Expenditures 991,735 3,104,964- 4,096,699 13,139,205
Excess(deficiency)of revenues over 3,909,699 2,169,217
(991,735) (2,917,964) (3,909,699) ( )
(under)expenditures
Other Financing Sources(Uses):
Issuance of bonds 525,000 5,000,000 5,525,000 5,525,000
_ (1,375,965)
Transfers out
Total Other Financing Sources(Uses) 525,000 5,000,000 5,525,000 4,149,035
Change in fund balances (466,735) 2,082,036 1,615,301 1,979,818
Fund Balances,beginning of year 1,070,942 721,504 1,792,446 15,168,771
Fund Balances,end of year $ 604,207 $ 2,803,540 $ 3,407,747 $ 17,148;589
101
I
TOWN OF READING,MASSACHUSETTS
NONMAJOR PROPRIETARY FUNDS
COMBINING SCHEDULE OF NET ASSETS
JUNE 30,2010
Business-Type Activities
Enterprise Funds
Landfill
Sewer Closure and Stormwater
Fund Postclosure Management Total
ASSETS
Current:
Cash and short-term investments $ 1,313,552 $ 91,651 $ 955,034 $ 2,360,237
- 104,140 1,424,953
User fees,net of allowance for uncollectibles 1,320,813
Inventory
3,222 - - 3,222
Total current assets 2,637,587 91,651 1,059,174 3,788,412
Noncurrent:
Capital assets being depreciated,net 6,097,366 - 116,048 6,213,414
Capital assets not being depreciated 61,761 - - 61,761
Total noncurrent assets 6,159,127 - 116;048 6,275,175
TOTAL ASSETS 8,796,714 91,651 1,175,222 10,063,587
LIABILITIES
Current:
Warrants payable 33,921 - 15,324 49,245
Other current liabilities - 91,651 91,651
Current portion of long-term liabilities: 117,965
Bonds payable 117,965 -
Total current liabilities 151,886 91,651 15,324 258,861
Noncurrent:
Bonds payable,net of current portion 236,096 - 236,096
Accrued employee benefits 4,983 - 16,730 21,713
- 37,755
Net OPEB obligation 37,755 -
Total noncurrent liabilities 278,834 - 16,730 295,564
TOTAL LIABILITIES 430,720 91,651 32,054 554,425
NET ASSETS
Invested in capital assets,net of related debt 6,045,308 - 116,048 6,161,356.
Unrestricted 2,320,686 - 1,027,120 3,347,806
TOTAL NET ASSETS $ 8,365,994 $ - $ 1,143,168 $ 9,509,162
See notes to financial statements.
102
I
i
TOWN OF READING,MASSACHUSETTS
NONMAJOR PROPRIETARY FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30,2010
Business-Type Activities
Enterprise Funds
Landfill
Sewer Closure and Stormwater
Fund Postclosure ' Management Total
Operating Revenues:
Charges for services $ 4,985,806 $ - $ 403,629 $ 5,389,435
Total Operating Revenues 4,985,806 - 403,629 5,389,435
Operating Expenses:
Personnel expenses 384,701 - 76,507 461,208
Non personnel expenses 175,509 - 36,550 212,059.
Intergovernmental 3,844,457 - - 3,844,457
Depreciation 338,572 6,108 344,680
Energy purchases 28,537 - - 28,537
Total Operating Expenses 4,771,776 - 119,165 4,890,941
Operating Income 214,030 - 284,464 .498,494
Nonoperating Revenues(Expenses):
Intergovernmental revenue 137,730 - - 137,730
Investment income 5,161 - 397 5,558
Interest expense (9,251) - - (9,251)
Total Nonoperating Revenues(Expenses) 133,640 - 397 134,037
Income Before Transfers 347,670 - 284,861 632,531
Transfers(out) (258,994) - - (258,994)
Change in Net Assets 88,676 - 284,861 373,537
Net Assets at Beginning of Year. 8;277,318 - 858,307 9,135,625
Net Assets at End of Year $ 8,365,994 $ - $ 1,143,168 $ 9,509,162
See notes to finangial statements.
103
TOWN OF READING,MASSACHUSETTS
NONMAJOR PROPRIETARY FUNDS
COMBINING SCHEDULE OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30,2010
Business-Type Activities
Enterprise Funds
Landfill
Sewer Closure and Stormwater
Fund Postclosure Management Total
Cash Flows From Operating Activities:
Receipts from customers and users $ 4,951,699 $ 13,014 $ 381,358 $ 5,346,071
Payments to vendors and employees (600,214) (7,007)• (104,127) (711,346)
Payments to other governments (3,844,457) - (3,844,457)
Net Cash Provided By(Used For)Operating Activities 507,028 6,007 277,231 790,266
Cash Flows From Noncapital Financing Activities (258,994
Transfer out 258,994 -
Net Cash Provided By(Used For)Noncapital Financing Activities (258,994) - (258,994)
Cash Flows From Capital and Related Financing Activities: 164,670
Proceeds from issuance of bonds and notes 164,670 122,156) (830,680)
Acquisition of capital assets (706'724) (122,156)
Capital grants and contributions 137,730 -
Principal payments on bonds and notes (168,708) - (168,706)
Interest expense 9,251 - (9,251)
Net Cash(Used For)Capital and Related Financing Activities (584,283) - (122,156) (706,439)
Cash Flows From Investing Activities: 397 5,558
Investment income 5,161 -
Net Cash Provided By Investing Activities 5,161 397 5,558
Net Change.in Cash and Short-Term Investments (331,068) 6,007 155,472 (169,609)
Cash and Short Term Investments,Beginning of Year 1,644,640 85,644 799,562 2,529,846
Cash and Short Term Investments,End of Year $ 1,313,552. $ 91,651 $ 955,034 $ 2,360,237
Reconciliation of Operating Income(Loss)to Net Cash
Provided By(Used For)Operating Activities:
Operating income $ 214,030 $ $ 284,464 . $ 498,494
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities: 6,108 344,680
Depreciation. 338,572 -
Changes in assets and liabilities: 49, - (24,158) (74,066)
User fees receivables ( 930) 1,766)
Inventory and prepayments (1'766) (- 189 189
Other assets 4,780)
Warrants payable (6,703) (7,007) 6,930 (
Accrued liabilities (2'998) (2,998)780
Other liabilities (1,517) 13,014 1,698 13,195
OPEB liability
17,340 - 17,340
Net Cash Provided By(Used For)Operating Activities $ 507,028 $ 6,007 $ 277,231 $ 790,266
See notes to financial statements.
104
ADMINISTRATION DEPARTMENT
Board of Selectmen
Selectmen Stephen Goldy and Richard Schubert were re-elected to three year terms. For Fiscal
Year 2011, James Bonazoli served as Chairman, Camille Anthony served as Vice Chairman and
Richard Schubert served as Secretary. Jimmy Houston was appointed as the Youth Liaison to the
Board of Selectmen.
Personnel and Volunteers
• 'The Board of Selectmen
• Reappointed Gail LaPointe as Town Accountant
• Reappointed Brackett and Lucas as Town Counsel
• Approved the FY 2011 Classification and Compensation Plan that was the same as
FY2010
• Approved a Section 20 Exemption (Ethics laws) for Hal Croft as a member of the School
Committee
In the area of Boards, Committees and Commissions,the Board of Selectmen
• Approved the policy establishing the Volunteer Appointment Subcommittee
• Approved the policy establishing the Town Forest Committee
• Designated the ad hoc Municipal Building Committee members as special employees
The following individuals were either newly appointed or re-appointed by the Board of
Selectmen to the following Boards, Committees or Commissions
• Animal Control Appeals Committee John Miles;
• Board of Appeals - John A. Jarema and Kristin Marie Cataldo (Associate);
• Board of Cemetery Trustees -Ronald Stortz and Elise M. Ciregna,
• Board of-Health-David Singer;
• Board of Registrars -Krissandra Holmes;
• Advisory Committee on the Cities for Climate Protection Program - Tony Capobianco,
Joan Boegel,Ronald D'Addario, and Associates Gina Snyder, David L. Williams, Ronald
K. Taupier,Tracy Sopchak and Michele Benson;
® Commissioners of Trust Funds- John J. Daly;
• Community Planning and Development Commission - Paul Bolger, Nicholas Safina,
John Weston and George Katsoufis(Associate;
• Conservation Commission-Brian F. Sullivan, Jamie Maughan and Annika Scanlon;
• Constable -Alan Ulrich;
• Council on Aging- Steve Oston, Sally M. Hoyt, Carole N. Scrima and Dorothy Deros;
• Cultural Council- Lorraine Horn and Joan Marshman;
• Custodian of Soldier's and Sailor's Graves -Francis P.Driscoll;
• Economic Development Committee - Michelle R. Williams, Meghan Young-Tafoya and
Associates Ben Yoder, Michell Ferullo,Maria Higgins and John Russell;
• Historical Commission - Mark Cardono, Angela Binda and Associate Sharlene Reynolds
Santo;
105
• Housing Authority-Kevin F. Mulvey;
• Human Relations Advisory Committee - Lori Hodin, James Cormier, Margaret
LeLacheur and Associate Randall Jones;
• North Suburban Planning Council-Ben Tafoya and George Katsoufis;
• RCTV Board of Directors -Joe Lachiana;
• Reading Ice Arena Authority- Carl McFadden;
• Recreation Committee Michael DiPetro, Francis Driscoll, Catherine Kaniner and
Associates John Winne, Adam Chase and Joseph Rossetti;
• Town Forest Committee - Patrice A. Todisco, Mark Wetzel and Associate Thomas
Gardiner;
• Trails Committee - Joan A. Hoyt, David Williams and Associates Matthew DesMeules
and John E.Parson;
• Volunteer Appointment Subcommittee - Camille Anthony and Stephen Goldy;
• West Street Historic District Commission-Everett Blodgett and Stephen O'Shea
Licensing and Permits
In the area of licenses the Board of Selectmen approved
• an all alcohol restaurant liquor license for Bistro Concepts, Inc. d/b/a Sam's Bistro at 107
Main Street,
• an all alcohol restaurant liquor license for Ristorante Pavarotti, Inc. 'd/b/a Ristorante
Pavarotti at 601 Main Street.
• a liquor license transfer from Emperor's Choice to Phider Corp. d/b/a Grumpy Doyle's at
530 Main Street.
The Board issued the last existing Package Store Liquor License to Peter J. Donovan d/b/a The
Wine Bunker at One General Way, and approved the transfer of a Package Store Liquor License
from Johnavi Riya Wine Shop, Inc. to Reading Fine Wines, LLC d/b/a The Wine Shop of
Reading located at 676 Main.
At year's end, the legislature approved the Home Rule Petition to grant one additional license for
the Sale of All Alcohol Beverages not to be Drunk on the Premises to Oaktree Development,
LLC located at 30 Haven Street.
Community Development
The Board of Selectmen approved amendments to Section 3.10 of the Board of Selectmen
Policies — Licenses for Utilizing Public Sidewalks for Outdoor Dining, to allow the service of
alcohol with outdoor dining.
At the 2010 Annual Town Meeting, Section 6.2. "Signs" of the Zoning By-Law was amended to
permit the use of Portable A-Frame or Sandwich Board signs in, the Business B Zone. The
amended sign by-law stipulates that Portable A-Frame signs fall under the regulatory control of
the Board of Selectmen so a policy was approved by the Board of Selectmen to promote a
pedestrian friendly community that supports businesses. The regulation of Portable A-
106 .
Frame/Sandwich Board Signs was intended to balance the aesthetic, safety, and economic
development needs of the community.
Regarding the Route 128/93 Interchange process, Mass.Highway is now the Mass. Department
of Transportation and staffing has been reduced and money is not there for projects. Last Spring,
the RFP process to select a consultant to take the project to the environmental review process
began. Fay, Spofford and Thorndike was selected. The State is trying to combine the
environmental process with the design process. Aerial photographs were taken in the Spring.
They are currently looking at the wetlands delineation and looking at adding a lane on 128. They
will start with the Task Force recommendations and will hold public hearings. The timeframe is
uncertain and funding is another process—this project will go up against all other projects.
The Oak Tree 40R Development on Haven Street is the first application for a 40R district in
Reading. The original proposal for condominiums has been changed to rental units. Affordable
Housing Trust Funds have been requested for the project and the Town applied for and received
from the state an additional All Alcohol Package Store License at this location.
The Board of Selectmen approved the revised Local Initiative Program (LIP) Regulations. The
new regulations have been streamlined and reference to State laws have been removed. They are
still in existence by implication behind the scenes but now this policy need not be amended when
the State laws change.
The Board of Selectmen received an introduction from Pulte Homes, who plan on purchasing
and redeveloping the Addison Wesley Pearson property on Jacob Way. Pulte is a national home
builder with 69 divisions in 29 states. Pulte Homes will purchase and redevelop the entire
property which will result in one consistent compatible environment of 424 homes including 16
townhomes, over 55 condos, and 200 condos in the 40R Gateway Smart Growth section. It was
estimated that this development will lead to a significant amount of revenue to the Town —
approximately$1.9 million to the Town in annual tax revenues.
Infrastructure
The Town received a grant in the amount of $4,000 to have a Forester come out and make
recommendations on land use management in the Town Forest (and adjoining Town owned
properties). The Town has completed a Forest stewardship plan for the area.
The Board of Selectmen approved the Joshua Eaton Master Plan for the park/open space at the
school. The plan includes 18 extra spaces parking spaces. There will be a handicap accessible
ramp, the raised island will be removed to ease plowing, there will be a 90 x 65 playground area,
the ball fields remain the same, the batting cage is semi permanent, and the driveway in the back
will be for police and fire only.
The complete renovation of Memorial Park was begun and completed, thanks to the generous
donation by Nelson and Rita Burbank, donations by a number of individuals and businesses
including the Reading Cooperative Bank, and thanks to the dedication and hard work, by the
Engineering Division of the Department of Public Works.
107
The Town continued its Pavement Improvement program for the year, including a complete
improvement to Temple Street including new street, granite curb, and sidewalk on one side of
the street.
The Town has applied for a grant on the Safe Routes to School program, and has been approved
for a project that will include new sidewalks on:
• one side of Washington Street between Woburn and Prescott Streets
• one side of Sunnyside from Prescott to Riverside
• Improvement to various handicapped ramps on a variety of intersections in'the project .
area including Temple Street, Woburn Street, Prescott Street, Sunnyside Ave., and
Riverside Dr.
Financial
The Board of Selectmen approved the extension of the 20 Year Agreement with the Reading
Municipal Light Department and the communities of Lynnfield, North Reading and Wilmington
for 10 more years that will continue the agreement through July 9, 2030.
In an effort to increase recycling and reduce rubbish disposal costs the Board of Selectmen voted
to approve the amendments to Section 4.6 of the Board of Selectmen Policies — Solid Waste
Recycling, Collection and Disposal Rules and Regulations, to allow for JRM's proposal of
• weekly recycling(instead of biweekly);
• curbside leaf collection(five weeks),
• elimination of bulls waste stickers—residents will be allowed one bull-,item per week,
• residents call vendor directly for CRT/TV pick up at$10.00 each,
• resident calls vendor directly for weekly appliance curbside pickup $20.00/each.
• eliminates monthly charges to the Town for additional dumpsters,
• one metal.pick up annually,
• one paper shredding event annually,
• one bull-,y rigid plastics event annually, and
• enforcement of recycling and four barrel limit.
This contract will be $36,000 less than the current contract.
The Town Manager executed transitional agreements for the first time with churches for snow
plowing where the Town will continue to plow their parking lots and the church will reimburse
the Town for this service. After 3 years the churches will be fully responsible for plowing their
own parking lots.
The Board of Selectmen held a hearing in November and approved a number of fee increases
items including mostly inspectional fees and copy fees. They also approved the liquor license
fees for the next two years.
108
CONSERVATION DIVISION
The Conservation Commission was established in 1960 under the Conservation Act, Section 8C
of Chapter 40 of the Massachusetts General Laws, for the.promotion and development of the
natural resources and for the protection of watershed resources in Reading. The Commission has
worked since that time to acquire and maintain hundreds of acres of conservation land within the
town for public enjoyment and resource protection.
In 1972, the Conservation Commission was given regulatory authority to administer the new
Wetlands Protection Act, Section 40 of Chapter 131 of the Massachusetts General Laws. Over
the years, the Commission's role in the administration of the Wetlands Protection Act has.been
further defined through regulations and policies issued by the Massachusetts Department of
Environmental Protection. In 1980, the Town adopted the Wetlands Protection Bylaw, Section
5.7 of the Reading General Bylaws. The Commission subsequently promulgated the Reading
Wetlands Protection Regulations under the Bylaw. From time to time, Town Meeting has
amended the Bylaw and the Commission has amended the Regulations, most recently in July of
2006. The amendments serve to clarify the language,to make it consistent with recent changes in
the state law and regulations, and to assure revenues from filing fees.
Wetlands Protection Activities
During 2010, the Conservation Commission reviewed 29 permit applications for proposed work
and wetlands delineation. The Commission held 52 public hearings and public meetings and
performed more than 100 site inspections regarding the permit applications and construction.
The Commission also issued 66 decisions including permits, resource area delineations,
extensions, and amendments. The Commission made final site inspections and closed 78 project
files. The Commission identified and resolved 22 violations. The Administrator reviewed and
signed off on 630 building permits and 30 minor projects, and performed 476 site inspections.
The Commission collected $687.50 in filing fees under the Wetlands Protection Act and
$4,842.29 under the Wetlands Protection Bylaw.
Major projects under permitting review and/or construction oversight by the Commission in
2010 included:
• Additional units and trail layout at Johnson Woods condominium;
• Completion of Kylie Drive and Benjamin Lane subdivisions - nine new houses and two
remaining vacant lots;
® Five new houses on existing lots, and numerous improvements to existing houses;
® Completion of wetlands restoration at Reading Memorial High School;
• Recreational, drainage, and other improvements in Memorial Park and Harrison Street;
• Commercial redevelopment projects, including hazardous waste removal and drainage
improvements, at 107, 212, 281, 285, and 306 Main Street, and at the Honda Gallery on
Walkers Brook Drive;
• Completion of a new day-care center on Torre Street, with stream bank restoration along
Walkers Brook;
• Hazardous waste mitigation at the RMLD substation on Causeway Road;
• Drainage improvements at St. Athanasius Church, Wingate health care facility, and a
Housing Authority site,
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• Signage, lighting, and pavement improvements by MassHighway on Routes I-95 and I-
93;
• Planting of street trees in Sunset Rock Lane Subdivision;
• Preliminary review of plans for redevelopment at 80-100 Main Street, Jacob's Way, and
for installation of a regional water main system by the MWRA.
The Commission provided emergency permits for work to replace damaged utility poles and to
address flooding caused by beavers. The Commission amended the Reading Wetlands Protection
Regulations to provide better protection for streams and rivers. The Commission participated in
the Earth Day Fair and the Economic Development Summit Meeting.
The Administrator worked with other Town staff to draft an earth removal bylaw, review permit
tracking systems, improve customer service, and incorporate changes in the State Open Meeting
Law and the new Permit Extension Act. The Administrator also continued to update the
Conservation website with agendas, minutes, a section on "frequently asked questions" with
links to supporting forms and documents, and other relevant information.
Natural Resources Conservation Activities
The Commission received a $16,536 Recreational Trails Grant from the MA Division of
Conservation and Recreation in 2009 for trail improvements in Bare Meadow. The Commission
and Administrator worked with the Trail Committee and numerous volunteers to design and
construct 200 feet of boardwalks, harden trail surfaces, install a comprehensive blazing and
directional sign system, and add bulletin boards at trail entrances. The project was completed on
time, with more than 600 hours of volunteer labor contributed. We have applied for another
Recreational Trails Grant for similar improvements in Kurchian Woods, and hope to receive an
award next spring.
We worked with the MA Fishing and Boating Access Board to complete installation of the
fishing platform and handicapped accessible trail at Lobs Mill Conservation Area on the Ipswich
River.
Through a partnership with Friends of Reading Recreation,we received an $8,500 grant from the
Harpley Foundation for renovation of the Mattera Cabin. We have also received $2,500 in
donations from citizens, and last year received $2,000 from the Fleetwing Charitable Foundation
Trust. The Administrator worked with the Town Manager, Selectmen, and staff and students
from the Northeast Metropolitan Regional Vocational School to design the renovations, obtain
permits, purchase materials, and coordinate work. Students began construction last March and
have continued through the 2010-2011 school year. They are installing new plumbing, wiring,
lighting, heating, flooring, kitchen cabinets, and a handicapped accessible bathroom. Health and
Engineering staff inspected the septic system, which fortunately only needed minor repairs, and
DPW completed the repairs. A security system and phone line was installed by outside vendors.
We are looking.forward to opening the cabin for public use this spring, and would welcome
additional donations for furniture and appliances.
We worked with Planning and GIS staff and the Town Forest Committee to apply for a grant,
hire a consultant, and produce a Forestry Management Plan. We also worked with the Selectmen
and Town Forest Committee on updating the Selectmen's policy regarding the scope of TFC
authority, responsibilities, and membership.
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We worked with Boy Scouts who replaced rotting boardwalks in the Town Forest and built a
bridge over Walkers Brook in Pinevale Conservation Area. We worked with a Girl Scout Troop
to clear the overgrown entrance to Pinevale from Park Avenue.
We have welcomed nature walks led by Library staff, including an "owl prowl" in January, a
spring walls in April, and a summer walk in July. Information about trail events is posted on the
website, www.readin L n� a.g6v.
We received a donation of 4.29 acres of land and two trail easements from the developer of the
Kylie Drive subdivision, Deer Run Developers. These will allow the creation of a trail system
that will connect Wakefield Street, Baker Road, and Kylie Drive to Charles Street through land
belonging to the Conservation Commission, Cemetery Commission, and Reading Open Land
Trust.
We have continued to work closely with the Police Department to stop occasional misuse of
Conservation lands, including fires and ORV use. With better signage and patrolling, incidents
have decreased this year.
In September, the Trail Committee and Administrator met with trail adopters and added 13 new
members to the Adopt-a-Trail program. Adopters are provided with a handbook and field
training, and are assigned a particular trail to oversee. Adopters inspect their trails several times a
year and carry out routine brush clearing, marking; and clean-up. They report larger problems to
the Trail Committee for resolution by volunteer work parties and/or Public Works crews. If you
would like to volunteer to help With trails, please contact the Conservation office (781-942-
6616).
The Commission truly appreciates all of the people who have contributed time and money to the
cabin and trail projects this year!
Membership and Office Management
The Commission began.2010 with Bill Hecht as Chairman, and Doug Greene, Tina Ohlson,
Barbara Stewart, Annika Scanlon, and Brian Tucker, as members. Associate member Brian
Sullivan was appointed as a full member in January. He served until June,when he moved out of
Reading, and was reappointed in September when he moved back. Sadly, long-time member
Doug Greene passed away unexpectedly in June, and we continue to miss his many
contributions. Jamie Maug ban, a former Commissioner, was appointed to fill the vacancy and
was elected Vice Chairman. Fran Fink continued as Conservation Administrator, and Maureen
Knight as Recording Secretary. Commissioners and the Administrator attended various
workshops and courses during the year to stay current with open space protection and wetland
regulation practices, and to obtain certification on new State ethics regulations.
The Commission's office is located in the Community Services Department on the first floor of
Town Hall. The phone number is 781-942-6616.
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ELDER/HUMAN SERVICES DIVISION
The Division of Elder/Human Services provides social services, advocacy, activities,
transportation, educational programs, and a meal site for Reading residents age 60 and over.
Home-delivered meals are available for homebound elders through Mystic Valley Elder
Services' Meals on Wheels program. In addition, the division offers information, support, and
referrals to seniors and their adult children, friends, and caregivers about a variety of aging
concerns. For those under age 60,the division provides social services and holiday programs.
The staff consists of an Administrator (37.5 hr/wk), a Social Worker (37.5 hr/wlc), a Senior
Center Coordinator (35 hr/wlc), a Van Driver (35 hr/wk), a Nurse Advocate (21 hr/wlc) and a
Cleric(19 hr/wlc).
Highlights and lowlights for the division this year included the following:
o At Town Meeting (Article 17) the members voted to accept a gift from the Patrons for Older
Adults. The funds will establish a permanent trust fund to be known as "Patrons for Older
Adults Support Fund." The Council on Aging and the division will determine how the funds
are expended.
o The division has implemented the transportation module of MySeniorCenter tracking
software
o In collaboration with the School Department, the division has established the METCO
shuttle. The shuttle uses the Elder Services' van and driver's but is fimded by the METCO
grant.
o The Property Tax Work Program was expanded to allow for 30 participants, an abatement
maximum of$1000, and an hourly rate of$8.00.
o The Pleasantries newsletter became available online and more than 100 people have
subscribed.
o The division now has liability waivers for Medical and Shopping Escort volunteers.
o The Coordinator of Volunteers retired in 2009 and this year the position was removed from
the budget.
Social Services
The Social Worker addresses the needs and concerns of Reading residents of all ages. Assistance
for those under the age of 60 often involves crisis intervention, goal-setting, information and
referrals about financial, housing,mental health, and disability-related concerns.
For those age 60 and over, assistance includes crisis intervention; EAP-model of case
management; addressing housing concerns; mediating intergenerational disputes; intervening in
cases of neglect, loneliness, or depression; coordinating appointments with area medical and
social service agencies; as well as providing information and referrals with regard to nursing
home placement and eligibility for State and Federal programs.
Assisting relatives and friends of seniors with all the above concerns is another important service
our Social Worker provides. During .2010, our Social Worker had 3,243 contacts with
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approximately 1,361 people (43%more than last year) who required assistance of some kind. In
addition, our Social,Worker co-facilitates an Alzheimer's/Memory Loss Caregivers' support
group at the Senior Center.
The Social Worker provides eligibility screening for, and assistance with, applications for Fuel
Assistance, the Reading Food Pantry and various transportation programs. In 2010, the Social
Worker completed these tasks for 112 (2.5% decrease from 2009) individuals/families to the
Reading Food Pantry, 126 (15% decrease from 2009) certifications for medical transportation
and assisted 180 (13% increase from 2009) households with their Fuel Assistance applications.
Our Home Heating Financial Assistance program provided$525 in assistance during 2010.
Nurse Advocate
The Nurse Advocate is dedicated to helping Reading seniors manage their health care needs. The
main responsibilities of the Nurse Advocate include educating, counseling and advocating for
seniors.
This position is interested in identifying the frailest seniors in Reading, especially those who live
alone and do not have someone nearby for support. By being available to support seniors more
proactively, the program will help seniors to remain healthier and more independent. Similar
programs have demonstrated that such interventions can even reduce disabilities and prevent or
delay institutionalization.
In the past year,the Nurse Advocate has assisted 113 seniors with 851 contacts. Some of the
outcomes of her work include:
o helping to reduce anxiety
o facilitating transition to more appropriate living situation
o encouraging proactive planning
o developing trusting relationships
o providing referrals
o advocating for seniors by problem solving with providers and/or family members
o assisting with accurate diagnosis
o facilitating prompt treatment and/or follow up
o improved quality of life for seniors and caregivers
o educating seniors regarding health/medical issues
o educating caregivers
o promoting self care
o prevent 911 calls
o prevent hospitalizations
o prevent fall, injury or disability
o prevent caregiver burnout
o prevent premature nursing home placement
Helping seniors understand their health care needs and plan strategies for managing these needs
both in the short term and future is the goal of this program.
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The Nurse Advocate is very knowledgeable about Alzheimer's disease. This year she co-
facilitated the Alzheimer's/Memory Loss support group at the Senior Center.
During the past year, there has been a consistent flow of referrals.from a wide variety of sources.
Both seniors and elder care professionals have shown a great deal of interest in leaning about
the position. There have been many notes of appreciation from seniors and their caregivers.
Senior Center
The Senior Center Coordinator's pri mary responsibility is to manage the daily operations of the
Senior Center including the care of the facility and the coordination of activities. As can be seen
from the following chart, the Senior Center is a hub of activity Monday through Friday.
Monda Tuesda y Wednesday Thursday Frida
Cribbage Bingo Billiards Bingo Chess
Movies Motion to Knitters Motion to Music- Strength
Music- aerobics aerobics Training
Open Computer Computer Book Discussion Party Bridge
Computer Lab Lessons Lessons
Tai Chi Open Quilting Congressman* Open Computer
Computer Lab Tierney's Office Lab
Hairdresser* Practice Bridge Yoga Open Computer AA
Lab
Birthday Lunch* Food Renewed Ask a Nurse Scuttlebutt* SHINE -health
insurance info*
Art Classes Keep Moving Low Vision* Podiatry Clinic* Walgreen's
Club Blood Sugar
Screening
SHINE* Health Visit with the* Open Blood Pressure Art Classes
Insurance School Supt. Computer Lab Clinic**
Information
Laughter Yoga Facials Party Bridge Visit with the*
Town Manager
Chronic Disease Bereavement Visit with
Self-Management Support Group Selectman Goldy*
Ziunba fitness Walgreen's Blood
Pressure Clinic*
Keep Moving
Club
Manicures
Ask a Social
Worker
Memoir Writing
*Meet monthly
**Provided by the Reading Health Department
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New programs added during 2010 include: Art Classes; Laughter Yoga; Keep Moving Club;
Bereavement Support Group; Ask a Social Worker; Manicures; Keep Moving Club; Facials;
Visit with the* School Supt.;Ask a Nurse; Food Renewed
Support groups, like Low Vision, Scuttlebutt, the Bereavement Support Group and the
Alzheimer's/ Memory Loss Caregivers' group provide participants with an opportunity to
express their feelings and gain insights from other participants' experiences. Guest speakers are
often invited to present education and alternate viewpoints.
Elder Services is always looking to broaden the programs, classes, and services currently offered
at the Senior Center. For this reason, Reading seniors are frequently surveyed, about their
interests. The 2011 survey was administered during the P Annual Thanksgiving Dinner. There
were approximately 370 seniors present, many of whom are not familiar with the Senior Center's
offerings. The results 'demonstrated a strong interest in the following: day trips; evening
activities, and line dancing,
Volunteers
The division recognizes the importance of volunteers. Few of our programs would run smoothly
without volunteers from the community. The volunteers themselves learn new skills, meet new
people, and enjoy an increased sense of self-worth. For these reasons, the division places great
emphasis on offering a variety of volunteer opportunities for a diverse set of skills, abilities, and
interests.
The Administrator matches volunteers to various community service positions -- many of which
specifically aid Reading's older population. Some of the positions filled by volunteers include:
Senior Center receptionists, gardeners, book discussion leaders, game leaders, income tax
preparers, computer instructors, COA board members, repairmen, friendly visitors, medical
escorts, office workers, newsletter editor, bread suppliers, kitchen helpers, shoppers for
homebound seniors, and shopping escorts.
Intergenerational projects continue to be an important teaching tool for cooperation among the
generations. Students served the seniors lunch and helped with yard work. They provided
entertainment at the Senior Center and prepared dinner and entertainment for the seniors at their
schools. They made cards, cookies, and tray favors at holiday times.
When reporting statistics, the Executive Office of Elder Affairs has requested a differentiation
between "registered" volunteers and "unregistered" volunteers. Registered volunteers include
those who have completed the volunteer application process including; the application; Criminal
Offender Record Information(CORI) check; interview, training,placement and ongoing support.
Unregistered volunteers include, but are not limited to, students, civic groups, town departments,
and free performers.
In the past year 240 registered volunteers gave 9,853 hours of service. The financial equivalent
for these services is approximately $259,330*. And unregistered volunteers gave 859 hours of
service.
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*The 2008 rate of$26.32 is used by the United Way,the Massachusetts Executive Office of
Elder Affairs,Minnesota School of Business, several medical centers,Points of Light, and
Synergy Resource Center. (Jalandoni,N, (2008)Value of Volunteer Time
hLV://independentsector.org/
propxams/research/volunteer time.html).
The Coordinator of Volunteers (COV)retired in March of 2009. At the Spring Town Meeting in
April 2009, Town Meeting members voted to amend the FY10 budget to include the COV
position at a reduced level of 19 hours per week without benefits. Unfortunately, due to the
continuing fiscal crisis the position was not filled.
The division has been incorporating the COV tasks into the responsibilities of the remaining staff
members. Portions of the Medical Escort and Property Tax Work programs have been assumed
by the Finance Department. This has helped reduce the workload for the division.
Be assured that the staff will continue to work diligently to maintain the quality and quantity of
volunteers, services, and programs until the economy is robust enough to fill the COV position.
Lunch time Meals
The Senior Center's daily nutrition program is provided by Mystic Valley Elder Services, Inc.
(MVES). In an effort to increase attendance at lunch we often offer concurrent games,programs,
and/or entertainment.
There are 30 meal site volunteers who help serve and clean up after the noontime meal at the
Senior Center. Socialization is an important component of this program. In 2010, a total of 4,926
hunches were served at the Senior Center.
In 2010, MVES' Meals-On-Wheels program delivered a total of 20,546 meals to 163
participants. The roster of participants changes as people become well enough to prepare their
own meals or move to other levels of care. A variety of meals is delivered: lunch meals, evening
meals, clinical diets, and frozen meals for the weekend. A variety of"clinical diet"meals is also
available including: no concentrated sweets, diabetic, low fiber, high fiber, low lactose, renal, or
pureed.
Van Transportation
The van transportation program provides a vital service for those seniors that don't drive.
Transportation is provided in-town for the following purposes: errands, grocery shopping,
voting, medical and personal appointments, pharmacy needs, going to breakfast, and visiting the
Senior Center. For younger residents, the van services offers transportation to and from the food
pantry and other vital destinations. In 2010,the van provided 8041 one-way trips.
Newsletter
The Pleasantries newsletter is a monthly publication created by the division and published by
Senior Citizen's Publishing, Inc. (SCP). There is no cost to the Town for this arrangement.
SCP's revenue is derived from selling advertising space in the newsletter.
The newsletters are delivered to approximately 2610 senior households in Reading three times a
year. This figure is significantly lower than in previous years. In an effort to lower costs,we have
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combined married couple households, and we now hand-deliver stacks of newsletters to senior
housing developments instead of mailing them. The Burbank Trust Fund provides the funding
for postage. During the other nine months, 900 copies of the newsletter are available at several
locations around town. The goal of the newsletter is to increase awareness of the programs and
services available to. Reading's seniors and their caregivers. The newsletter also provides
important information about benefit changes and helpful agencies.
An annual subscription is available by mail for$5. Residents can now subscribe to the newsletter
online at no cost and receive it via email.
Property Tax Worker Program
The division coordinates the Property Tax Worker program which allows Reading seniors to
perform various tasks for Town departments in exchange for an abatement on their property
taxes. The program is open to Reading residents age 65 and over or disabled, who own property
and have a household income that does not exceed limits set by the program. In 2010 there were
30 positions available, and each participant was permitted to earn a maximum abatement of
$1,000 annually. In 2010, participants were compensated at a rate of $8.00 per hour. The
program has been funded through the Assessors' Overlay account.
Burbank Trust Fund
In 2010 the Council on Aging approved expenditures from the Dorothy L. Burbank Trust to pay
for the following: pictures frames; a cork board; the Volunteer Recognition Reception; a wall
divider and door for the lower level; bingo cards for low vision seniors; advertisements in the
Reading Recreation Community Guide; three months of postage cost for bulls mailings of the
newsletter; monthly entertainment for the Senior Center's special lunch program; birthday calve,
gift certificates, and lunch for the monthly birthday celebrants.
2010 beginning balance=$265,760.82
2010 ending balance=$264,492.69
Patrons for Older Adults Support Fund
At Town Meeting (Article 17) the members voted to accept a gift from the Patrons for Older
Adults. The funds have established a permanent trust fund to be known as "Patrons for Older
Adults Support Fund." The Council on Aging and the division will determine how the funds are
expended.
2010 beginning balance=$125,000.00
2010 ending balance= $126,695.65
Schroeder Trust Fund
In 2010, funds from the Schroeder Trust were used to purchase hot Thanksgiving and Christmas
meals for seniors who were going to be alone for the holidays. Thirty meals were provided for
each Thanksgiving and Christmas. All meals were delivered by COA board members.
2010 beginning balance=$23,003.88
2010 ending balance=$22,978.48
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Donations
Many individuals and organizations have generously supported Elder/Human Services' efforts
by providing money, gifts, and in-kind services. Some of the donations have included:
sponsorship of an event, program or meal; senior center decorations; baked goods; paper cups
and plates; flowers;plants; art work;refreshments; and more.
Human Services 2010 beginning balance=$8,423-87
Human Services 2010 ending balance=$6,598.16
Elder Services 2010 beginning balance=$16,209.58
Elder Services 2010 ending balance=$18,116.92
Holiday Programs
Adopt-a-Family
This was the first year the Reading Rotary Club and ReadingCARES coordinated the Adopt-A-
Family holiday program and they did a terrific job. Elder/Human Services will continue to guide
their efforts until they are more familiar with the tasks involved. The Adopt-a-Family program
matches low income Reading families with confidential donors of food and gifts for children.
Reading residents, businesses, out-of-town businesses that employ Reading residents, youth
organizations, school groups,nursery schools, churches, and municipal departments join together
to make this program a success. This past year, 101 donor groups, families, and individuals
made donations of food and gifts to the Adopt-A-Family program.
Recipients Households
Thanksgiving Food 54
Christmas Food/Gifts 64(129 children)
COA Hot Meals
The Social Worker supplies the Council on Aging with a list of 30 seniors who would welcome a
Thanksgiving meal and a visitor, and another 30 for around Christmas time. (This task is more
difficult than it sounds as many seniors are uncomfortable accepting assistance.) The meals are
purchased from Boston Market using Schroeder Trust funds and are delivered by COA board
members.
Christmas Gifts
The Social Worker gathers gift wishes from 25 seniors. The Young Women's League purchases,
wraps and delivers the gifts.
Thanksgiving and Christmas Baskets
The Social Worker supplies the Wakefield Elks with a list of 20 seniors who would welcome
receiving a basket of uncooked holiday food.
Emergency Funds
The division has two revolving fields. The Elder Services Revolving Fund covers emergency
situations for persons age 60 and older who lack financial resources to cover basic needs or
emergencies. The Human Service Revolving Fund is for persons under age 60 who lack financial
resources for emergency situations.
Council on Aging Board
The Council on Aging Board members tools on many volunteer tasks this year. Their assistance
and support is very much appreciated.
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PUBLIC HEALTH DIVISION
Introduction
The Reading Board of Health is responsible for administering the local public health function in
the Town of Reading and the Reading Health Division is the administrative unit that carries out
the essential responsibilities of Board of Health. This involves preparing for and responding to
Public Health emergencies,promoting and protecting public health in Reading.
This process involves the utilization of numerous scientific principles, specific knowledge and
shill sets including (but not limited to): epidemiology, microbiology, chemistry, physics,
building science, testing of electrical services and outlets, knowledge of plumbing principles and
equipment operation, HVAC operation, psychology, medical entomology, health education,
water quality, pest control, communicable disease processes, wastewater treatment and disposal,
solid waste disposal, air quality control,noise control and public health law.
The Health Division is required to enforce a minimum of fourteen State regulations, in addition
to Board of Health regulations and Town By-Laws. The Division provides advice to residents
and businesses on these laws. The Health Division is expected to enforce a new State law on
allergen information and awareness. Responsibilities for licensing waste transfer stations
handling less than 40 tons of waste per week were transferred to the Board of Health from the
Massachusetts Department of Environmental Protection (DEP). The new law denoting these
changes removes all advisory requirements from the DER The Health Division has an open door
policy and always advises ways for businesses and residents to gain compliance with the legal
and safe practice requirements.
Board of Health
The Reading Board of Health is authorized by Town Charter and Massachusetts General Laws
Chapter 111 to administer Public Health in the community and is comprised of 3 members,
Barbara Meade RN/NP, Chair; Colleen Seferian RN MPH and Dr. David Mitchell Singer DMD.
Board members are appointed annually on a rotating basis by the Board of Selectmen.
The Board usually meets on the second Thursday of each month. The Board provides advice to
the Health Services Administrator and sets policy on Public Health issues in the Town of
Reading. Barbara Meade was re-elected as Chair of the Board in September 2010.
Staffing
Clerical/Licensing
The Health Division is fortunate to have the services of Darlene Foley, Clerk. Mrs. Foley is the
face and voice of the Health Division. She is the first person the public interacts with when they
seek to avail themselves of the services of the Health Division. Her attention to detail, her
demeanor and customer service skills play an important part in the provision of services to those
who do business with the Health Division. She processes all incoming calls, complaints,
applications, licenses, and issues burial permits. Additionally, she serves as the Logistics section
chief in the Emergency Dispensing Site Incident Command Structure (ICS). This year Mrs.
Foley was certified in the ICS 808 -Public Health Emergency Support function.
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Environmental Health
The Environmental Health Division also provides advice on good safety practices to all
temporary event hosts, conducts risk assessments on the food and initiates food safety
requirements as mandated by 105 590, the Massachusetts Food Safety regulations. We have meet
with numerous community organizations to advise them on facility upgrades, temporary food
permits and other public health matters. The Environmental Health Division responds to
complaints, and conducts inspections mandated by the Public Health laws e.g.: food inspections,
housing inspections, complaints, air quality and noise control, swimming pools (indoor and
outdoor), camps, tanning salons and animal licensing.
Joan Vitale, CPSI, CPO, Health Inspector, continues to do an outstanding job and is invaluable
to the Health Division. During the year our focus has shifted to risk-based food safety
inspections. Casey Mellin, part time Health Inspector, has given the Health Division the ability
to provide limited public health services to Reading on nights and weekends. This has proven to
be invaluable to the community, especially when he visits temporary events to advise the event
coordinators on food safety.
This year, five new food establishments opened in Reading. The Health Division provided
advice to the owners and guided them through the regulatory process. Additionally, there were
changes to the Food Code that resulted in the requirement for posting of notices on allergen
notification that came into effect on October 1. The second phase will take effect on February 1,
2011 when every food establishment that prepares and serves food would be required to have a
manager certified as having viewed an allergen training video.
The Health Division secured a Sharps disposal kiosk from the Massachusetts Department of
Public Health and it is located in the lower level of Town Hall. This kiosk will serve an
important function in removing medical sharps from the waste-stream as we move to the
implementation of new medical waste regulations in 2012.
Community Health Services
The Community Health Services unit provides immunization to residents, hosts preventative
blood pressure and cholesterol clinics and health education activities. This year we participated
in/coordinated the following:
- Reading Fall Street Faire
- Reading Friends and Family Day
- Senior Health Fair at the Senior Center
- Healthy Habits Seminar at the library
- Reading Memorial High School Health Fair
Dina McCarron R.N., Public Health Nurse, is responsible for investigating communicable
diseases and Reading now receives all communicable diseases notifications electronically from
the Department of Public Health. The disease investigation aspects of the PHN duties require
detailed interviews which adhere to patient privacy principles that are mandated by State and
federal laws. We continue to engage the community in promoting healthy lifestyle choices that
will eventually lead to a healthier Reading. The Public Health Nurse also inspects camps to
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ensure that the clinical requirements of the Camp regulations are met. Additionally, the Nurse
.does visits to home-bound seniors on request of the Nurse Advocate and is also the designated
Operations Chief in our Emergency Dispensing Site Preparedness Plan.
This year we continued the HlNl response by providing vaccines to our Middle and High
School students as well as the greater community when vaccines became available. The
vaccination rates for the Reading School population were higher than most communities due to
our active engagement of the school community and support of the School Superintendent,
School Staff and the Headmaster of Austin Prep.
Emergency Preparedness
The Reading Health Division is responsible for the public health emergency function in the
Town of Reading and the Health Administrator is part of the town Unified Command in the ICS
structure. This function requires that all Health Division staff be available on a 24/7 basis to
respond to emergencies.
The Health Division participated in a town wide response to a boil water order that resulted from
a water main break in the MWRA water supply. All food establishments were contacted and
given guidance on steps to take so that they provided a safe water supply and food to patrons.
Health Division staff were presented- with Certificates of Appreciation by the Board of
Selectmen for their participation in the response.
The Public Health Administrator responded to emergency calls from the Fire Department.
The Health Division continues to participate in the Emergency Preparedness Region 3B-Greater
Lawrence Coalition and Greater River Valley Medical Reserve Corps (GRVMRC). The Health
Administrator is a member of the Local State Advisory Committee on Emergency Preparedness
and the Coalition for Local Public Health. This year the Health' Services Administrator and
Health Division staff participated in a number of regional exercises and trainings emergencies.
The Greater River Valley MRC has provided support by manning a first aid/lost child station at
our Fall Street Faire and Friends & Family Day. Volunteers from.the MRC provided invaluable
assistance at our town wide Influenza(Seasonal and H1N1) vaccination clinics.
Weights and Measures
The Weights and Measures function is contracted to the State Division of Standards. The
contract with the Division of Standards was renewed for 2011.
Mosquito Control
Reading continues to be part of the Eastern Middlesex Mosquito Control Project. The project
conducts larviciding of large areas in town, spraying for adult mosquitoes and the Department of
Public Works assists with the larviciding of catch basins in town.
Report of the East Middlesex Mosquito Control Project
The East Middlesex Mosquito Control Project conducts a program in Reading consisting of
mosquito surveillance, larval and adult mosquito control and public education.
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Extreme flooding in March produced mixed results with higher spring mosquito populations
emerging from forested wetlands and lower mosquito populations emerging from floodplain
areas. Dry weather during the late spring and summer produced lower than normal summer
mosquito populations. Hot dry weather provided suitable conditions for a developing risk, of
West Nile Virus that resulted in 6 human cases occurring in eastern Massachusetts. There was an
elevated risk, of EEE in southeastern Massachusetts that resulted in a decision by the State to
intervene using wide-area aerial spraying.
The adult mosquito surveillance program used traps to collect mosquitoes from 4 Reading
locations. Data was compiled from 25 mosquito trap collections over 9 different nights. Selected
trap collections in the district including two collections from Reading were tested for West Nile
Virus and EEE by the Massachusetts Department of Public Health.
The larval mosquito control program relied on the larvicides, Bacillus thuringiensis var.
israelensis (Bti) and methoprene, which are classified by the EPA as relatively non-toxic. An
April helicopter application of Bti controlled mosquito larvae at 244 wetland acres. Field crews
using portable sprayers applied Bti in the summer to one wetland acre when high densities of
mosquito larvae were found in stagnant water.
For adult mosquito control, there were 6 crews assigned to apply Sumithrin to 3,261 acres at
night using truck-mounted aerosol sprayers when survey traps indicated high populations of
mosquitoes. Advance notification of the spray program was done through notices in the Reading
Chronicle and Daily Times, on the Town website and via a recorded telephone message at 781-
893-5759.
The Project's public education program is designed to develop awareness within the public and
the private sectors as to their roles in mosquito control. The Project serves'as a resource to
residents, municipal officials and the local media on mosquitoes an d mosquito bome diseases. A
web page,www town sudbM.ma.us/services/health/cinmgp,provides residents with information
on mosquitoes, control programs and related topics.
Respectfully submitted,
David M. Henley, Superintendent
Statistics
Action Inspections/ Revenue Calendar YTD
individuals
served
Inspections 37 546
Immunizations/tests 39 2442
Infectious Disease Investigations 4 42
Wellness Clinic 3 46
Clinics visits 20 275
Licenses, fees and Permits 322 746
Receipts $15 835 $21 108
Fines/tickets 6 1 $250.00 1 $750.00
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General
Darlene Foley, Health Division Cleric, received a President's Award from Massachusetts
Environmental Health Association.
Larry Ramdin, Public Health Administrator, was awarded the 2010 Dr. Joseph Goldfarb Award
for Outstanding Contributions to Environmental Health by the Massachusetts Environmental
Health Association.
Larry Ramdin presented at the 48th Yankee Conference on Environmental Health on"Hazardous
Materials Disposal and Utilizing off the shelf software to track food inspections."
He also presented at the 2010 Massachusetts Association of Health Boards Certification program
on "Farms, Food and Public Health— How to Protect Public Health while Encouraging Locally
Grown."
Conclusion
We would like to thank the Board of Health for their continued support in promoting, protecting
and preserving the Public Health in Reading.
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INSPECTIONS DIVISION
The Inspections Division is responsible for carrying out inspectional services on commercial and
residential construction in the areas of building, gas, plumbing and wiring. In addition, the
division is responsible for enforcing the Town's Zoning By-laws and providing staff to the
Zoning Board of Appeals.
STATISTICS YEAR-END PREVIOUS YEAR-END
2010 2009
Building Building Permits issued 759 680
Inspections 1212 1,259
Fees received $218,086.28* $253,031.26*
Occupancy Permits 117 146
Fees received $4,760.* $5,825*
Wiring Wiring Permits issued 503 486
Inspections 875 930
Fees received $34,940.* $36,932*
Plumbing/Gas Gas Permits issued 213 222
Gas Fees received $7,439.* $7,924.*
Plumbing Permits issued 358 354
Plumbing Fees received $15,703.* $17,826.*
Combined Inspections 848 783
Gas/Plumbing
TOTAL FEES $280,928.28* $321,538.26*
* Totals do not include permit fees for Walkers Brook Crossing, Johnson Woods and Archstone-
Reading deposited in revolving building account.
ZONING BOARD OF APPEALS
The Zoning Board of Appeals met 15 times in 2010. The ZBA voted on petitions for 16
Variances, Special Permits and appeals.
ZBA Members are Chairman Clark Petschek, Vice Chairman Jeffrey Perkins, Robert Redfern,
John Jarema, Damase Caouette, John Miles, and Kristin Cataldo. The Town Planner, Jean
Delios, and the Commissioner of Buildings, Glen Redmond, provide primary support to the
Zoning Board of Appeals.
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PLANNING DIVISION
The following is a report of the activity in 2010 in the Planning Division of the Community
Services Department. In general, 2010 was a very productive year in which there were many
updates to the zoning by-law. Also, 2010 was an active year in economic development.
Development review of key redevelopment sites that were stalled for some time was a major
cornerstone of 2010. Redevelopment plans were reviewed for large vacant sites including: the
former Atlantic Supermarket Site on Haven Street; the former Tambone property at 80-100 Main
Street; and the former Addison Wesley Site at the gateway into Reading.
The Community Planning and Development Commission (CPDC) continued to receive
experienced and dedicated service from its Chair, John Weston and Vice Chair, Joseph Patterson
and board members David Tuttle, Nick Safina, Paul Bolger, and associate member George
Katsoufis. The Planning Division worked closely with the CPDC and Economic Development
Committee to achieve important milestones in 2010.
Planning.Division Activities
Responsibilities of the Planning Division include advising the public, property owners,
Reading's Boards and Commissions, business owners and architects, and coordinating Town
Staff on planning issues regarding land use, zoning, and economic development. The Planning
Division provides support to the Community Planning and Development Commission, the
Zoning Board of Appeals, and the Economic Development Committee. In 2010, the Planning
Division reviewed 38 applications for a variety of approvals including site plan review;
subdivision; signage design and extensions/modifications to existing decisions. The CPDC held
22 public meetings and 11 zoning work sessions centered on zoning by-law amendments noted
below and proposed zoning changes and design standards for South Main Street. Thirteen
Development Review Team (DRT) meetings were also held with Town Staff and Applicants to .
provide guidance on application procedures,permitting and zoning compliance.
Major Accomplishments - 2010:
• ZBL Updates -Annual Town Meeting Adopted changes to
o Section 6.3 Non-Conforming Uses and Structures;
o Section 6.2 Signs; and
o Section 4.4 Floodplain Overlay District.
o Planning Staff and CPDC held numerous workshops, meetings,presentations, and
public hearings as part of these changes.
• South Main Street-Additional work on draft design standards and zoning changes.
• ZBL Updates — Subsequent Town Meeting — With CPDC and Economic Development
Coimnittee prepared updates and recommended by-law revisions to Section 6.2 Signs
Economic Development Committee
The Economic Development Committee (EDC) Chair, Meghan Young-Tafoya; Vice Chair,
Sheila Clarke; Russ Graham; George Rio; Michelle Williams; and Associate Members Jack
Russell; Michelle Ferullo and Kara Fratto working with Planning Staff, executed an aggressive
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work plan for the year. The Committee welcomed two new associate members; Maria Higgins
and Ben Yoder. A very successful Fall Street Faire was held in September for the second year.
A Wayfmding project was undertaken with funding from a State grant. Website updates
including a more prominent link from the home page to an,updated list of active projects.
Projects reviewed by Planning Division and CPDC in 2010:
Subdivisions
• Sunset Rock Lane Subdivision—bond release
• Kylie Drive Subdivision completion deadline extension&bond reduction
• Sailor Tom's Way- 175 Franklin Street—Subdivision completion date extended
• Benjamin Lane—Bond release and street accepted by Town Meeting
Site Plan Review-Street Address/Business Name/notation if a waiver
• 530 Main Street-Grumpy Doyle's (formerly Emperor's Choice)
• 30 Haven Street—Oaktree Development(formerly Atlantic Super Market)
• 22 Frank Tanner Drive—Reading Housing Authority addition for office space & storage
• 55 Haven Street—Salon on Haven(formerly Carlson Real Estate)
• 80-100 Main Street—Calareso's Farm Stand(relocating from existing location)
• 1321 Main Street—Reading Housing of Pizza(WAVER)
• 26 Walkers Brook Drive—Oye's Restaurant(WAIVER)
• 545 Main Street—Premier Realty(WAIVER)
• 2 Haven Street—Sammy Jo's Italian Bakery(WAIVER)
• 40 Walkers Brook Drive—Golf Town(WAIVER)
• 1 General Way—Wine Bunker.(WAIVER)
• 580 Main Street—Kumon&Embellish(WAIVER)
Sign.Review (Certificate of Appropriateness)-Address/Business Name
• 545-557 Main Street/RCTV building
• 26 Walkers Brook Drive/Oye's Restaurant
• 159 Ash Street/Encore Consignments &More
• 580 Main Street/Kumon Learning Center&Embellish Hair Salon
• 530 Main Street/Grumpy Doyle's
• 25 Walkers Brook Drive/Stop & Shop
• 643 Main Street/Latham Law Offices
• 279 Salem Street/REI
• 40 Walkers Brook Drive/ Spirit Halloween Store
CPDC Special Permits -Street Address/Business Name/notation if a modification
• 80-100 Main Street—Calareso's Farm Stand
ZBA Comprehensive Permits—e.g., LIP DRT
None.
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Zoning Work Sessions/Public Hearing for Zoning Amendment—Date/Subject
Public Hearings:
• January 11th—Zoning By-Law Section 6.2 "Signs", 6.3 "Nonconforming Lots &.
Structures",Earth Removal by-law
® February 8th—Signs,non-conforming, earth removal
® February 22nd—Signs, non-conforming, flood plains overlay district/FEMA maps
• March 1St—Two public hearings for Annual Town Meeting (Signs &Non-conforming)
® March 15th—Public hearing for Annual Town Meeting(Flood Plans Overlay District)
• May 10th &Mary 24th—South Main Street design guidelines
® August 9th—Preparations for Subsequent Town Meeting
• September 13th—Vote to add zoning articles to Town Meeting Warrant
® October 13'1'—Public hearing for zoning article (signs)
® November 29th &December 13th—South Main Street design guidelines
Scenic Road Applications
• 51 Walnut Street(tree removal and driveway curb cut request)
• 46 Walnut Street(driveway alteration)
Endorsement of Subdivision Approval Not Required Plans
® 1 Springvale Road
® 75-79 Pleasant Street
ZBA& CPDC Agenda Sharing and Case Review Comments
e Jiffy Lube
In 2010,revenue generated from Planning Division activities totaled$38,908. The Planning
Division is located at Town Hall, 16 Lowell Street, telephone 781-942-9056.
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VETERANS SERVICES
The Department of Veterans' Services Office is responsible for the needs of all the veterans in
Reading. It is the Veterans Services Officer to whom the unemployed, the indigent, the disabled,
the ill, or veterans otherwise in need, first apply for assistance.
The Veterans Services Officer administers benefits and assists veterans with other resources,
referrals, and assistance. The Veterans Services Officer interviews applicants, determines
eligibility, and helps veterans file for all veterans' benefits, including the Massachusetts Chapter
115 program for income eligible veterans and their dependents. The Town of Reading receives
75%reimbursement from the Commonwealth of Massachusetts under the Chapter 115 program.
The Veterans' Service Officer also assists Reading veterans with applying for all other state
benefits such as tuition waivers, grants, student loans, annuities, bonuses, outreach centers,
counseling,veterans' license plates and many more.
Under the category of federal aid, veterans' are assisted in processing applications for benefits
including service-related compensation, disability pensions, personal aid, pensions, social
security benefits, medical, education, employment, medals, death benefits and retrieving military
records for veterans who without,would not be eligible for any benefits. .
Federal Benefits include filing for compensation and pension, life insurance, burial and
survivor's benefits. The Veterans' Affairs Administration provided benefits directly to the
veteran population in Reading of over. $2.4 million dollars for the fiscal year that ended June
2010
Readings Department of Veterans' Services also works with other committees to coordinate
public events such as Veterans Day ceremony held at the Reading Memorial High School and
Memorial Day service's held at the 4 cemetery's in town
The Reading Department of Veterans' Services office hours are Tuesday 8:30 AM to 3:30 PM
Wednesday 8:30 AM to 5:30 PM and Thursday 11:00 AM to 3:00 PM. The office phone number
is 781-942-6652.
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BRACKETT & LUCAS
COUNSELORS AT LAW
19 CEDAR STREET
WORCESTER;MASSACHUSETTS 01609
508-799-9739
Fax 508-799-9799
Ellen Callahan.Doucette, Esq. ecdoucette @brackettlucas.com
March 7, 2011
Peter I.Hechenbleikner, Town Manager
Town of Reading
16 Lowell Street
Reading,MA 01867
Re: 2011 Annual Report
Dear Mr.Hechenbleilmer:
I am hereby submitting the report of Brackett&Lucas, as Town Counsel on legal
matters for the Town of Reading("Town") for the calendar year 2010.
During 2010,Brackett&Lucas addressed various and diverse issues on the
Town's behalf. At present,this office is engaged in mediation proceedings involving two
litigation matters arising out of the construction/renovation of the Reading Memorial
High School("RMHS"). The goal of mediation is to narrow the disputed issues and
minimize the legal costs associated with these complex litigation matters. One other
litigation matter arising out of the RMHS project involving the demolition sub-contractor
was resolved in 2010.
During 2010, two zoning decisions issued by the Board of Appeals involving the
demolition and reconstruction, and partial reconstruction of a property located on
Franklin Street were overturned by the Land Court. One of those matters is being
appealed to the Massachusetts Appeals Court. Two other zoning appeals were instituted
regarding decisions of the Board of Appeals. One decision granted the relief requested
and was appealed by an abutter. The other appeal was a denial of the relief requested.
Both appeals involve alleged claims that property is"grandfathered"for residential use.
The proponent of a 40B project appealed the Building Inspector's denial of a
building permit to the Board of Appeals which upheld the denial, and determined that the
comprehensive permit had expired. The proponent filed an appeal with the Housing
Appeals Committee and in response;this office has filed a motion to.dismiss that appeal..
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In the past year,legal assistance was provided to department heads,town boards,
committees and commissions,including,the Board of Selectmen. Legal services which
were provided included advice and legal opinions in the areas of land use to the Zoning
Board of Appeals and Community Planning and Development Commission. Of note was
assistance provided in applying recent legislation which provides for an extension of
expired land use permits. Section 173 of Chapter 240 of the Acts of 2010 established an
automatic two-yearr extension'-for permits or approvals in effect between August 15,2008
and August 15,2010. Section 173 does not apply to comprehensive permits.
Conservation Commission matters are handled by Attorney Judith Pickett. We
have also provided advice and representation to the Town regarding employee issues, and
some assistance was provided for contract review.
This office is also actively engaged in assisting the Bylaw Committee with the
recodification of Reading's General Bylaw, a project that is currently scheduled to be
presented at the 2010 Subsequent Town Meeting.
Aside from issues related to the RMHS litigation,we continue to provide advice
to the School Department on various non-litigation issues and we assist in the
development of contract and bid documents. Brackett&Lucas also assisted in the
preparation and review of by-laws, as well as the review and drafting of warrant articles
for Town Meeting. We attended all Town Meetings in order to address any legal issues
or concerns that may be raised by members.
It has been a pleasure and a privilege to serve the legal needs of the.Town of
Reading this past year and we look forward to continuing to do so in the future.
Very truly yours,
Ellen Callahan Doucette
cc: Gary S. Brackett,Esq.
130 .
EMAR.0
Listed below is a detailed analysis of the number of individuals serviced during FY 2010 by
EMARC in Reading as well as surrounding cities and towns:
Program Statistics for FY 2010:
Program Reading Other Total
Day Services 25 230 255
Family Support 24 183 207
Adult Foster Care 0 21 21
Recreation 67 310 377
Residential
Range Heights Road, Lynn 5 5
Cliffside Commons,Malden 4 4
Main Street, Melrose 8 8
Haven Street,Reading 8 8
Hopkins Street, Reading 5 5
Pitman Drive,Reading 4 4
Newcomb Avenue, Saugus 4 4
Albion Street,Wakefield 4 4
Nahant Street, Wakefield 7 7
Spruce Street, Wakefield 4 4
Water Street, Wakefield 4 4
Independent/Supported Living 6 17 25
Woodcrest Drive, Wakefield 5 5
TOTAL RESIDENTS 23 62 85
EMARC is a non-profit charitable corporation founded in 1954 and incorporated in 1957. We
help children and adults with developmental disabilities live, work and play in our communities.
EMARC annually serves over 700 families from Burlington, Beverly, Everett, Lynn, Lynnfield,
Malden, Medford, Melrose, North Reading, Reading, Saugus, Stoneham, Wakefield and
surrounding communities.
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The following is an overview of the services EMARC provides:
• Life Choices, a new program supporting adults in developing their life skills to increase
independence. This innovative new program has distinct focuses for various age groups.
Locations in Reading,Beverly and Burlington.
• Adult Foster Care offers the opportunity of receiving financial assistance while
providing live-in care to your adult family member.
• Residential Supports in 10 24-hour staffed homes and 17 semi-independent apartments
staffed by EMARC and for individuals living independently.
• Job Training (including literacy and computer classes) and Paid Work in a sheltered
workshop setting at EMARC.
• Employment Opportunities at supervised sites in the community including REI.
• Food Pantry services for individuals seeking competitive employment and the Reading
community.
• Job Placement for low income adults with developmental disabilities and low income
families of people with developmental disabilities.
• The Center for Emerging Artists which explores and fosters the artistic talents of
individuals with disabilities. Artwork created by participants is sold through the Center,
through local exhibits and at local gift shops.
® School to Work Transition Services and Journey to Independence to prepare High
School students to live and work independently in our communities.
® Respite Care to support families caring for their sons and daughters with developmental
disabilities at home.
® Family Support Groups for parents and siblings of people with disabilities.
• A Successful Parenting Program for parents with cognitive limitations.
• Support for Seniors, a monthly education and support group for elder caregivers of
people with developmental disabilities. Guest speakers cover topics including health care
coverage, depression and Social Security benefits.
• Recreation Programs held independently and in cooperation with local schools and
YMCAs. Activities include integrated sports, Special Olympics training and teams,
crafts,music therapy, cooking,outings and special events.
EMARC has received has received some of the highest marks in the state for the past ten years in
audits completed by the Massachusetts Department of Developmental Disabilities.
For additional information, please visit our web site at www.TheEmarc.org. EMARC, 20 Gould
Street, Reading,MA 01867 Phone: 781-942-4888, Fax 781-942-0820.
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HISTORICAL COMMISSION
The Reading Historical Commission's (RHC) work in 2010 included regular monthly meetings
and work in the Historical Commission Archives. RHC also added approximately 100 properties
to the Historical and Architectural Inventory. Other activity included collaboration with the
Library, Community Services, and several project reviews/demolition delays. RHC continued its
effort to convert historically important town records to formats that may be accessed
electronically. RHC has been working with the new owner and developer of the Pierce Organ
Factory.
A number of citizens and various entities requested the assistance of RHC in 2010, including
requests for input on renovation, restoration and genealogical research. A few abandoned
properties of historical significance were also worked on.
In June, RHC re-elected its current officers to a new term for the following twelve-month period.
Members at year-end 2010
Kathryn M. Greenfield, Chairman
Sharlene Santo Reynolds, Secretary
Roberta Sullivan, Treasurer
Virginia Adams
Mark Cardono
Associates at year-end 2010
Angela Binda
133
LAND BANK COMMITTEE ANNUAL REPORT 2010
During most of 2010, the Land Bank Committee provided assistance with identifying and
documenting Town-owned property. The Committee provided any requested historical
documentation to the Town manager,Board of Selectmen,Town Planner and GIS coordinator.
By unanimous vote of Subsequent Town Meeting on November 15, 2010, the Land Bank
Committee was officially disbanded.
134
METROPOLITAN AREA PLANNING COUNCIL
The Metropolitan Area Planning Council (MAPC) is a regional planning agency serving the
people who live and work in the 101 cities and towns of Greater Boston. With a mission to
promote smart growth and regional collaboration, MAPC's work is guided by our regional plan,
"MetroFuture: Making a Greater Boston Region."
This year, we have increasingly focused our work on helping municipalities to collaborate across
city and town borders, to achieve savings through new efficiencies, to capitalize on the existing
and multifaceted resources of Greater Boston, and to explore innovation in unexpected ways. As
fiscal challenges have intensified at the local level, MAPC has amplified its commitment to
partnering with cities and towns in offering progressive solutions. We're expanding our reach
into new areas — from the federal policy arena, to green energy development, and interactive
gaming as a tool for community engagement — while keeping an eye toward preservation,
sustainability, and responsible stewardship of our shared resources. In every effort we undertake,
MAPC works toward a more equitable, livable Greater Boston region.
This year, we are heartened to have the Obama Administration's support for the smart growth
ideals put forth in our regional plan, MetroFuture. We are honored to be among a select group of
grant recipients from the Sustainable Communities Partnership, a new federal collaboration
among HUD, the EPA, and the U.S. Department of Transportation. With this grant, MAPC can
go further in promoting sustainable development in Greater Boston.
The coming year will bring the first activities under the grant, which could total more than $4.5
million over three years when matching commitments from regional foundations.are included.
The Metro Boston Sustainable Communities Consortium — which includes municipalities, non-
profits, and institutional allies — will oversee our work under the grant. The heart of the work
plan features several illustrative projects poised to benefit from Sustainable Communities
funding.
They include:
• Enhancing the Fairmount transit corridor through Dorchester, Mattapan and Hyde Park in
Boston;
• Engaging the Asian communities in Chinatown, Quincy, and Malden in planning efforts;
• Creating an anti-displacement strategy for residential areas along the planned Green Line
extension in Somerville;
• Identifying priority preservation and development areas along the Route 495/MetroWest
corridor; and
• Studying office park retrofit potential for the Framingham Tech Park, and exploring
opportunities for linkage to the downtown commuter rail station.
All of these initiatives — and others that will be added as the program develops — will help the
region to plan and grow responsibly, with a focus on future stewardship of our shared resources.
135
In addition to this local work, MAPC will develop tools and models, build skills and capacity
throughout the region, design and advocate for smart growth policies in state and local
government, and track the region's progress through a Regional Indicators Program.
At the core of our mission is serving as a resource to our member municipalities. One of the most
important ways MAPC serves cities and towns is to foster forward-thinking economic
development opportunities.In 2011, we are focusing much of our economic development work
in clean energy and local business development.
MAPC links federal resources to emerging green technology start-ups like the Fraunhofer Center
for Sustainable Energy Systems. Fraunhofer is a non-profit applied research and development
laboratory located in the heart of Boston's Innovation District on the South Boston waterfront,
dedicated to the commercialization of clean energy technologies. We also provide support and
advocacy for emerging business incubators such as the Cleantech hmoVenture Center in Lynn.
This business incubator is designed to reduce the start-up expenses of small clean technology
companies, while accelerating the time it takes to transform a research idea into a marketable
product.
In Gloucester,MAPC is helping to build a cluster of marine research institutes on and around the
harbor — adding strength to a historic fishing-based economy. We are also working with the
Dorchester Bay Economic Development Corporation to place job training facilities within
walking distance of neighborhoods in need, and to provide skill-based training in partnership
with larger businesses that are seeking trained employees.'
MAPC also plans to unveil a web-based business development tool that will allow cities in
Greater Boston's urban core to market hard-to-sell commercial and industrial real estate to
appropriate buyers. The website, Choose Metro Boston, can be found at
www.choosemetroboston.com.
Our energy planning will continue to grow as we start developing energy strategies for Chelsea
and Revere, and as we explore similar opportunities across the region. All our green energy work
is 'guided by our Green Energy Campaign, which is an effort to achieve the energy goals of
MetroFuture by building local capacity, increasing energy efficiency, and developing alternate
energy resources. In the coming year, proposed energy-related projects include developing a
regional ESCO, or Energy Services Company, which would provide comprehensive energy
efficiency services for multiple municipalities and school districts; developing a site suitability
assessment for wind or solar energy on closed landfill and brownfi eld sites; and creating a
regional energy manager service, which would provide MAPC staff support for a wide range of
local energy work.
In many municipalities, MAPC can best help to achieve smart growth goals through targeted
zoning bylaw work. This year, MAPC worked with the town of Littleton Planning Board, Board
of Selectmen and a faithful cadre of concerned citizens over several months to draft, review and
finalize two zoning bylaws: a new Village Common zone, and an Overlay zone.
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The Village Common zone created a new business district along Routes 119 and 110, where
mixed use development will be allowed so long as new design guidelines are met. In the Overlay
zone, created along Route 119, a vacant 90-acre site once owned by Cisco Systems may now be
more easily redeveloped. MAPC presented the zoning changes at Town Meeting, helping to
usher the bylaws toward adoption. Both zoning changes will help the town control and attract
development consistent with both MetroFuture and the community's vision.
The District Local Technical Assistance (DLTA)program is another essential vehicle for helping
communities to achieve such goals. DLTA is a state funding program that helps cities and towns
to collaborate regionally on housing, economic development, and environmental protection
projects. The funding can also be used to help municipalities to coordinate and more efficiently
deliver local services. 2010 was by any measure a prolific year for DLTA-funded projects in
municipalities throughout the region.
There were a total of 19 projects approved for funding this year — 10 in land use planning, and
nine in municipal services. More than two dozen communities received help from MAPC on
land use planning projects thanks to DLTA funding, the majority involving research or drafting
local zoning bylaws. There are 39 cities and towns currently participating in municipal services
projects, such as examining how to save funds or provide expanded services by sharing
engineering staff,public health offices, and even ambulances. Since many of these projects affect
multiple municipalities, the total number of cities and towns served is 57 - a record high for the
program.
With DLTA funding, MAPC and the MetroWest.,Regional Collaborative are conducting a
MetroWest Regional Open Space Connectivity study. This study will coordinate all the
individual open space plans among MetroWest cities and towns, allowing open spaces to become
linked into an interconnected network that will cross municipal boundaries and serve a variety of
regional needs. The study will also identify and prioritize lands that are ripe for protection or
acquisition for open space.
Using DLTA funds, MAPC assisted Bellingham in writing a Housing Production Plan in 2010,
the first of what we hope will be many such plans crafted by MAPC. Housing Production Plans
help cities and towns guide local affordable housing developments. Another tool, the Smart
Growth Zoning and Housing Act (Chapter-40R), offers financial incentives to encourage cities
and towns to zone for compact residential and mixed-use development in smart growth locations.
These districts are catching on slowly across Eastern Massachusetts, and MAPC is currently
working to prepare a 40R District for Sharon.
On the North Shore, MAPC is working with Beverly, Danvers, Hamilton, Ipswich, Salem and
Wenham to solicit local input on Priority Development Areas and Priority Preservation Areas, as
part of a $68,000 grant from the Massachusetts Executive Office of Housing and Economic
Development.
137
Transportation planning is central to all facets of MAPC's work. The economic vitality of the
region is dependent on a strong transportation network, and continued investment in all modes of
transportation—roads, bridges, sidewalks,bicycle infrastructure, and public transit—is crucial to
Greater Boston's ongoing competitiveness.
MAPC works toward sustainable transportation projects throughout the year, including the
regional bike share system that is projected to launch in Boston in spring 2011. MAPC is
collaborating with Boston, Cambridge, Somerville, and Brookline to link into Boston's system
once it is established. The program will provide hundreds of stations, outfitted with several
thousand bicycles, throughout the participating municipalities. Designed for short trips, the bike
share system will provide a sustainable mode of transportation while extending access to public
transit locations across the region. MAPC worked with Boston and the MBTA to secure a $3
million Federal Transit Administration grant to implement the program in 2011.
In 2010,MAPC unveiled a comprehensive Pedestrian Transportation Plan with action steps that
cities and towns can take to make their streets more walkable. Both a resource.and a guide, the
Pedestrian Transportation Plan identifies actions-that local governments, advocacy groups, the
private sector and individuals can take to increase pedestrian safety and convenience and to
encourage more walking. The plan is available on our website, at www.mapc.org/resources/ped-
plan.
MAPC is working collaboratively with three towns on the Upper Charles River to help them
adapt to a series of new federal storm water regulations. Bellingham, Franklin and Milford were
selected this year by the Environmental Protection Agency (EPA) to pilot stricter storm water
regulations. These regulations are required to reduce unhealthy rates of pollution in the Charles
River.
The new regulations will attempt to reduce storm water flow and contaminated runoff into the
watershed from private and public properties, which could cost the towns and property owners
several million dollars to retrofit existing infrastructure. The regulations may eventually be
extended to the rest of the Charles River and other watersheds in the region.
To assist with these challenges, MAPC is working with three towns to explore creation of a
storm water utility, a public entity that maintains storm water infrastructure and performs needed
upgrades and capital improvements. As with water or sewer utilities, costs are covered by user
fees,which are assessed on each property owner that contributes storm water runoff.
Another area in which MAPC aids cities and towns in planning for the future is public safety. As
municipal budgets grow tighter, cities and towns are increasingly seeking ways ways to maintain
public safety services in the face of cuts, to build emergency preparedness, and to enhance their
expertise by working with neighbors and allies. In keeping with our mission to promote regional
collaboration, MAPC has helped to establish three regional emergency equipment cache sites,
containing reserves of emergency equipment for large-scale use. The three sites — in Beverly,
Framingham, and Lexington—help the region to be prepared for a major incident, by providing
resources that municipalities most likely could not afford on their own.
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The cache sites offer first responders and public safety officials such equipment as shelters-in-a-
box, cyanide detectors, cots, illuminated signs, and other tools for disaster preparedness. MAPC
works in tandem with NERAC, the Northeast Homeland Security Regional Advisory Council, to
offer these vital resources through a federal homeland security grant program.
Throughout this year, despite of.several budget cuts, the Metro Mayors Community Safety
Initiative worked to maintain a strong police presence in troubled areas of the region through the
Metro Gang Task Force and through additional patrols funded by the anti-crime Shannon Grant.
High-risk and gang-involved youth experience intervention and.prevention through Shannon
Grant-funded programs, including more than 600 out-of-school activities and employment
opportunities.
MAPC also helps municipalities to save money through our collective purchasing efforts, which
allow cities and towns to make discounted bulk purchases of supplies, equipment, vehicles and
more. Since its inception in 1998, the program has assisted dozens of municipal clients in saving
millions of dollars. This year, we announced an exciting new partnership with the Fire Chiefs
Association of Massachusetts, allowing MAPC to act as a collective purchasing agent for fire
apparatus. This program has lots of potential to help communities save local dollars on major
purchases, while improving the caliber of emergency vehicles and response capabilities.
Another way MAPC is working with NERAC to support emergency planning is through a new
evacuation route planning tool, which kicked off in 2010. The goal of the program is to create an
intuitive mapping application that will provide local emergency responders with critical
information during emergencies and evacuations. The project will feature online maps and a
mapping application that will let users coordinate evacuations by referencing electronic route
maps and resources from inside emergency response vehicles or emergency command centers.
MAPC staff is also working on a first-in-the-nation dataset analyzing driving patterns, fuel
consumption, and greenhouse gas emissions. Working in collaboration with MassGIS and the
MIT Department of Urban Studies and Planning, we will collect and analyze data on vehicle
miles travelled and fuel consumption based on odometer readings from vehicle inspection
records. The data will help local, state, and regional entities develop effective strategies to reduce
transportation-related greenhouse gas emissions and their associated climate impacts. The data
also answer MetroFuture's call to focus new development in transportation-efficient locations.
MAPC and WalkBoston are also conducting research on which school districts in the MAPC
region have the best potential for encouraging more students to walls to school. This "Safe
Routes to School" Analysis aims to shift school trips from cars to feet, which can reduce
greenhouse gas production, air pollution, and traffic congestion around schools. Several studies
estimate that up to 30 percent of morning commuter traffic is actually generated by parents
driving children to school. Shifting even a small percentage back to walking could result in
measurable reductions in emissions, as well as health benefits for children and community
benefits for their neighborhoods. Once the most promising walkable school districts are
identified, MAPC and WalkBoston will work with participating municipalities to devise a plan
for increasing the number of students who walls to school in those areas.
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MAPC, an official Census Affiliate, helped promote Census participation throughout 2010, and
will continue to monitor the results of the Census as data are released in 2011. As the data come
out, MAPC will assist municipalities and non-profit partners with training and technical
assistance. Data release schedules, new data and municipal profiles about your city or town, as
well as training opportunities, can be found on the MetroBoston DataCommon, MAPC's online
mapping tool, at www metrobostondatacommon.org.
As we work collaboratively and in innovative new ways throughout the year, we are mindful that
all we do is guided by our bold regional plan, "MetroFuture."
The development of the MetroFuture plan involved thousands of "plan builders" around the
region, a group MAPC is now working to turn into "plan implementers," who will work to
advance MetroFuture at the local, regional, and state levels. To engage old and new allies alike,
MAPC launched the Friends of MetroFuture program with a well-attended open house in
January 2010. This program will educate the public about key issues relating to MetroFuture
implementation, and will build public energy for the change necessary to achieve MetroFuture's
goals. In the past year, the program has sponsored a photo contest, eight speakers on a wide
range of topics, and three walking tours in the summer months, with similar activities planned
for 2011. Check www.metrofiature.org for the full agenda.
As always, building a constituency for change involves many partnerships with other like-
minded organizations. MAPC was a founding member in the Massachusetts Smart Growth
Alliance (MSGA), and remains active in its work. This year, MAPC and the MSGA kicked off
the Great Neighborhoods Initiative, a campaign to link smart growth policy with
place-based results. Throughout 2011, MAPC and MSGA will work with several local
organizations around the region as they make their neighborhoods into smart growth models.
Finally, building regional support for smart growth principles requires research, expertise, a
demonstrated record of local success, and—importantly—a commitment to legislative advocacy.
We are proud to be pointing to a demonstrated track record of success both on Beacon Hill and
in Washington.
MAPC furthered its agenda of fostering regional collaboration by participating in the
legislatively mandated Regionalization Advisory Commission. Chaired by Lieutenant Governor
Timothy Murray, the commission studied impediments and benefits of regionalization over a
broad spectrum of topics, ranging from public safety to energy and backroom office support.
MAPC will use the findings of the commission's report to file a comprehensive piece of
legislation in the 2011-2012 session, which will incentivize and remove barriers to sharing
services across municipal boundaries. Additionally, MAPC and the MSGA were successful for
the first time in advancing a piece of land use reform legislation favorably out of committee.
Passage of comprehensive land use reform will continue to be a major priority for MAPC in the
upcoming year.
Check www.mapc.org for news and updates about MAPC's work throughout the year.
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NORTH SUBURBAN PLANNING COUNCIL
The North Suburban Planning Council, serving Reading, Burlington, Lynnfield, North Reading,
Stoneham, Wakefield, Wilmington, Winchester and Woburn, met nine times in 2010. The
meetings covered a wide range of topics and the schedule included two site visits to provide
members with an opportunity to view first hand some exciting projects in member communities.
The year began with a meeting focused on the Clean Air and Mobility transportation program.
At this meeting there was also a discussion of opportunities for funding projects under the
District Local Technical Assistance program.
In February the focus was on the logistics and importance of the upcoming US Census. There
was also a demonstration of upgrades to the NSPC web page.
In March the entire meeting was a presentation on the MS4 Stormwater Management Permit
which many communities will need to be in compliance with.
The April meeting was devoted to two very important transportation issues; the development of
the.Transportation Improvement Program(TIP) and the Regional Transportation Plan.
In May was the first of two site visits. The meeting began in Reading Town Hall with a
discussion of the communities' 40R zoning district and economic development initiatives. It was
followed by a walls through downtown Reading to view streetscape improvements and some of
the potential projects being contemplated in the 40R district.
In June NSPC turned its attention to land use reform and discussed the merits of the proposed
Comprehensive Land Use and Reform Partnership Act.
In July transportation was once again on the agenda as the group discussed the TIP and the
UPWP. Also on the agenda was another transportation topic: a presentation on the first ever
regional Pedestrian Transportation Plan.
In September the group met in Winchester for a presentation on the Winchester Town Center
Parking Study. This was followed by a walking tour of Winchester Town Center to view many
of the areas that were included in the study.
The October meeting was a discussion of legislative priorities in order to provide input to the
MAPC Legislative Committee.
The final meeting of the year was a discussion of the financing element of the Regional
Transportation Plan and a briefing on the $4million Sustainable Communities grant which HUD
awarded MAPC. In an on-going effort to provide member communities with better access to
information, regular upgrades to the NSPC web page were made. The page can be accessed at
htlp•//www.m pc.or subre iorg ns/lisps. The page includes links to municipal web pages, agendas
and meeting notes, photos from the site visits, links to major development projects, land use
legislation and links to transportation web sites and databases.
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NdYYSTIC VALLEY ELDER SERVICES
We are sending a detailed inventory and value of services delivered to Reading's older residents
by Mystic Valley Elder Services during the past year. I believe this accounting demonstrates in a
concrete way how your local contribution assists us in returning a substantial amount of direct
support to Reading. Without Reading's assistance and that of the other seven participating cities
and towns, Mystic Valley Elder Services would be unable to continue to provide the level of
crucial supportive services currently available.
As you may know, Mystic Valley Elder Services is both the federally designated Area Agency
on Aging as well as the State's designated Aging Service Access Point for the Town of Reading.
We received these designations through an application process approved by the Commonwealth
of Massachusetts' Executive Office of Elder Affairs.
Our goal is to raise the additional money that we need to meet the increasing demand for services
directly from private sources. However, your support is crucial to our ability to provide needed
in home and community based services to area residents.
Thank you for your continued support of Mystic Valley Elder Services programs and services
through good and bad economic times. We will always be here for the residents of Reading who
need help at home.
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Mystic Valley Elder Services,Inc.
19 Riverview Business Park
300 Commercial Street
Malden;Massachusetts 02148
Title III-B Social Services and Title III-C Nutrition Services rovided to Reading elders in Fiscal Year 2010.
Title III-C
Nutrition Program Meals Served Value of Service
Home Delivered Meals 20,011 $95,473
Congregate Meals 4,890 $31,857
Site Managers (Wages/Benefits $10,676
Home Delivered Meals Drivers $26,653
(Wages/Ben fits
TOTAL TITLE III-C VALUE $164,660
Title III-Supportive Services
Clients Total Value of
Legal Services Served Value Services
Greater Boston Legal Services, Inc.
Total Cases/Consults 1 253
Total Reading Residents Served 21
Budget 10109-09/10 $51,000
%in Reading= 8.30%
Reading's Cost $4,233
Medical Transportation
Total Residents Served 57
Total Reading Residents Served 1
Amount Spent on Reading Elders $512
Services to Blind Elders
Massachusetts Association for the Blind
Total Residents Served 1 56
Total Reading Residents Served 16
Bud et 10/09-9/10 $5,000
%in Reading=1 28.57%
Reading's Cost $1,429
Minority Outreach
Assistance to Minorltv Elders
Total Residents Served 1 192
Total Reading Residents Served 0
Budget 10/09-9110 $25,000
%in Reading= 0%
Reading's Cost $0
Title 111 E Family Caregiver Program
MVES Caregiver Support and Eldercare Advice,
Cost 10/09-09/10 $130,037 .
%in Reading= 10.19%
Reading's Cost $13,251
Clients Total Value of
Title 111 Health Promotions Served Value Services
Title III Health Promtions Fu ding Proiect Safe
Cost 10/09-09/10 $27,307
in Readin = 16.90%
Readin 's Cost $4,615
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Friendly Visitor Grants
Awarded to Council on Aging during FFY'10 $1,948
Money Management Program
Total Residents Served 103
Total Reading Residents Served 7
Budget 10/09-9/10 $74,481
%in Reading=1 6.80%
Reading's Cost $5,062
SHINE Program
Total Residents Served 2,397
Total Reading Residents Served 143
Budget 10/09-9/10 $76,186
%in Reading=J, 5.97%
Reading's Cost $4,545
TOTAL OF TITLE III AND COMMUNITY PROGRAM $200,254
SERVICES PR
READING ELDERS
STATE HOME CARE PROGRAM $1,433,051
222 Reading residents received home care services for the ear
ending June 30,2010.These services included intake&referral,
case,management,chore,transportation,social day care,adult
day health,personal care,home health aides,laundry,personal
eme.rgency response,com anionshi ,homemaker and res ite care
TOTAL SERVICES PROVIDED TO READING ELDERS $1,633,306
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READING TRAILS COMMITTEE
The Reading Trails Committee is made up of a very interesting and active group of Reading
residents who enjoy outdoor activities and have a desire to thoughtfully maintain and develop
Reading's trail systems for others to explore,respect and enjoy.
With the support, knowledge and skills of Fran Fink, the Conservation Administrator, and K.im
Honetschlager, the GIS Coordinator, the RTC has been able to move forward with its in
Their support has been instrumental in the organization, planning, communication and progress
of what the RTC has accomplished. Fran and Kim have been major participants in applying for
various grants to support the financial needs of trail maintenance and improvement.
Mike DeBrigard and the DPW crew have also been very supportive of our committee by
providing time, equipment, digging holes where we couldn't, plowing snow, picking up and
disposing of piles of invasive plants, pouring cement pads for setting the Judy LeBlanc benches
along the handicapped accessible trail, all of which have been very helpful.
The volunteers that have attended and worked on the various projects have been a great help and
the RTC is very thankful to them. Many are from the Adopt-a-Trail program and are happy to
help out with whatever is going on. Most are from Reading but some of our volunteers are from
surrounding towns. Some show up and work for a few hours and some stay a full day, and again,
we are very thankful for whatever they can do.
There have been monthly RTC meetings at the Town Hall and some members have attended
additional Town meetings for various reasons that were pertinent to RTC or conservation
business. Life most town groups, the RTC is included,on the Town of Reading website where
residents can be kept up to date with trail maps, new information, upcoming events and
invitations, photos of volunteers and projects. Your Community Connection, the Town
newsletter, and local papers are also used to share opportunities and updates.
Many of the RTC meetings have included Scouts who are looking for projects they can use to
obtain their Eagle Scout award. The amount of time a Scout puts into planning a project, getting
the advice and/or okay from Town Committees to go ahead with a project, many times having to
come up with fluids or donations for a project, and the many hours of hard work actually going
into the project is quite a feat. In the last few years, those who venture into Bare Meadow or the
Town Forest have been able to walls, cross-country ski or snowshoe through some very wet areas
thanks to the completion of these well built wooden structures. Prior to these Eagle Scout
projects being built and completed, these areas were not safely passable.
On a cold day in January, a few RTC members traveled to Ward Reservation in North Andover
and Goldsmith Reservation in Andover to see how those trails had been blazed (marked) and
also to see the style of kiosks at each site. This was helpful in deciding how to proceed with
marking Reading's trails.
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In April, the continuation of the Bare Meadow Enhancement project geared up again. This
ambitious project began and continued due to the application and receipt of a MA Recreation
Trails grant in the amount of $15,600 in 2010. The first April day was considered a "trial"
workday in the placement of 50 pound cement "piers" set into the muddy ground. This was
followed by pounding metal"pins"through the piers into the ground, setting a foundation for the
frame of boardwalk. This was a successful day of work so the project continued through April
and into May, setting the remaining piers, attaching framing and decking until the group had
finished creating a very nice looking boardwalk and dry access from the path entrance at
Haverhill Street into trails that lead into Bare Meadow.
April 10th found members that were not working on the boardwalk spending time at the Earth
Day Fair held at the RMLD. Trail maps and displays were set up and discussed, as well as the
Adopt-a-Trail program and opportunities to volunteer, and to bring attention to Reading's trails
and the outdoor recreational opportunities we have.
June 5th,being National Trails Day was a day to get out and clean up the Mattera Cabin yard and
other members participated in the Ipswich River Cleanup collecting trash;bottles, cans and
disposing of them.
John Parsons attended an event in Medford, MA with the Department of Conservation and
Recreation where a trails event took place. John then reported back to the RTC with information
that he had gathered.
Participating in the Friends and Family Day in June is a time to share what the RTC has been up
to when people stop by the display table. There are always reports from excited Reading
residents who want to talk about the wildlife they've seen in their neighborhoods or in town.
Many are interested in the display maps of the Town Forest and conservation areas and many,
many people pick up complimentary trail maps provided by Kim H. It is interesting to hear how
many people don't know that Reading actually has a Town Forest!
There was another work day in July finishing screwing down the decking on the new boardwalk;
a few teams worked on trail blazing (marking trees along color coded trails with paint) the red
and yellow trails in Bare Meadow woods in August; holes were .dug and prepared at.three
locations and kiosks were set up and secured, one at the entrance to the handicapped.trail at
Mattera, one at the Haverhill Street entrance and one at the entrance to the blue trail located at
the back of Wood End Cemetery. The kiosks will continue to be posted with trail snaps,
upcoming events, conservation rules and regulations.
The patch of Japanese knotweed, an invasive plant species, growing along the driveway and
entrance to Bare Meadow on Pearl Street, was cut down by RTC members and disposed of
properly. It is the hope and desire of the committee to keep this patch from growing up again and
spreading.
In September the RTC hosted an evening at the Senior Center for people who want to continue
"adopting" their designated trail and for new volunteers who would like to become "adopters".
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Adopt-a-Trail Handbooks were handed out, names and contact information exchanged and the
list of volunteers grew.
The RTC is happy to report another productive and successful year of activities. It is a group of
people who enjoy working together,have similar outdoor interests and believe the work they're
doing is having a positive effect in Reading's woods and for its residents. We will continue to
make fixture plans and decisions, state our opinions and ideas regarding any issues; celebrate our
progress,and oversee the trails and how the woods can be used in a respectful manner and that
they never come to a"Wood End".
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WEST STREET HISTORIC DISTRICT COMMISSION
The purpose of the West Street Historic Commission is to administer Section 5.18: Historic
District Bylaw of the General Bylaws as it pertains to the West Street Historic District. The
District was created to preserve the distinctive characteristics and architecture of the West Street
area. Through its required review of all construction projects in the District, the Commission
seeks to maintain and improve the settings of the buildings within the District and to encourage
building designs compatible with the historic character of the area.
The Commission is currently composed of five voting members and two alternates. The voting
members are: Chairman Richard Schubert, Vice Chairman Steve O'Shea, Virginia Adams,
Everett Blodgett, and Priscilla Poehler. The alternates are: Ilene Bornstein and Sharlene
Reynolds Santo.
In 2010 the Commission received eight homeowner applications and issued five Certificates of
Non-Applicability and three Certificates of Appropriateness.
For more complete information about the West Street Historic District and the Commission,
including the text of the Historic District Bylaw and design guidelines for the District, please
refer to the Commission's webpage which is linked to the Town Of Reading webpage
(www.readingina.gov) under Boards and Committees.
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READING HOUSING AUTHORITY
It is with great pleasure that we share with you the activities and accomplishments of the
Reading Housing Authority over the past year.
The start of the New Year has seen a continued decline in our economy and we remain cautious
during this somewhat unstable time. The pressure on the real estate market has continued to
create a critical challenge for poor and lower income families to find, keep and maintain their
housing. As the real estate values escalated over the past few years, it was certainly felt most
dramatically at the low-income levels. Rental units had been at a greater premium in this area;
however, we continue to see an increase in availability. Previously, landlords had been able to
ask for and receive a high rent, which historically prices the poor and lower income families out
of the rental market. Again, we are beginning to see a change in the rental market area with
increase inquiries from landlords who are experiencing more difficulty renting units.
The Reading Housing Authority (Authority) strives to assist these families to seek and obtain
housing that is decent, safe and sanitary. In an effort to ameliorate this impact, the Authority will
continue its efforts to develop new units and purchase affordable units when the opportunity
arises. The Authority recently attained an additional site to ready for use in their family program
in the upcoming year. Plans are presently underway to best develop that location. We continue to
support private developers and the Town in their efforts to set aside units for low/moderate
income families in their proposed developments. We reach out to owners of multi-family units
who would like to work with us to serve our clients.
As always, the Authority goes beyond the bricks and mortar and provides assistance to families,
elderly and handicapped persons to obtain the services they need. We work closely with Mystic
Valley Elder Services and other home care agencies to meet the needs of the elderly residents as
they strive to remain independent and age in place. With budget cuts affecting all of us,we strive
to maintain our programs, work with other supportive agencies and still offer a safe and decent
place for our seniors, disabled and families in need. On behalf of the Board, we want to thank
Executive Director, Lyn Whyte and her staff for their continued dedication, commitment and
service to the Reading Housing Authority. We look forward to working with them as we meet
the new challenges that lie ahead.
Organization
Organized in 1963 to address the housing needs of the Town's low and moderate income
residents, the Reading Housing Authority (Authority) is "a public body politic and corporate"
duly organized and authorized by Massachusetts General Laws (MGL), Chapter 121B, s.3. The
Authority receives it funds from the State and Federal government to assist our clients with their
housing needs. Although the Authority does not receive any local funding, five unpaid Reading
residents compose the Board of Commissioners. The Board of Selectmen appoints four of these
board members and one is the Governor's appointee. Each member serves for a 5-year term. The
Board is responsible for the overall operation of the Authority. The day to day responsibility is
delegated to the Executive Director.
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The Board meets regularly and has scheduled their monthly meetings for the first Monday of
each month. The Annual Meeting of the Board is currently scheduled for the month after the
Selectmen makes their annual appointment of a Board member. Currently, the Board Members
and their term of office are as follows:
Diane Cohen Chair and State Appointment
51 Redgate Lane Term expires 5/03/2011
Timothy J. Kelley Vice-Chair
84 Woburn Street Term expires 6/30/2014
Kevin Mulvey Treasurer
67 Whittier Road Term expires 6/30/2013
Mary Connors Asst. Treasurer and Tenant Representative
52 Sanborn Street, #103 Term expires 6/30/2012
Karen L. Flammia• Member
19 Vista Avenue Term expires 6/27/2010
Lyn E. Whyte Secretary and Executive Director
41 Shore Road, Saugus
Administrative Staff
The Board contracts an Executive Director who manages the day-to-day operations of the
Authority. Within State and Federal guidelines and other budgetary limits, the Executive
Director hires the supporting staff necessary to achieve the goals and responsibilities of the
Authority's programs. The Executive Director, Lyn Whyte, is in a five-year contract that expires
August 29, 2015.
Administration
Lyn E. Whyte Secretary and Executive Director
Catherine Sutherland Office Manager
Kathleen Rolli Federal Program Coordinator&Assistant Executive Director
Michelle Hudzik State Program Coordinator
Katelyn Veglia Part-time Program Assistant
Maintenance
Frank Veglia Maintenance Supervisor
Joseph Costello Maintenance Staff
Kevin Boyle Maintenance Staff
Supportive Services Affiliations /Dome Care
Jacqueline Carson Sanborn Home Care Director
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Daniel J. O'Leary Director,Mystic Valley Elder Services
Dawn Folopoulos Town of Reading,Elder Services Administrator
Financial Institutions
Reading Cooperative Bank
Eastern Bank
BankNorth
Mass. Municipal Depository Trust—Boston, MA
Affiliations
National Association of Housing and Redevelopment Officials (NAHRO)
Massachusetts Chapter of National Association of Housing and Redevelopment Officials
(MassNAH O)
New England Regional Council of National Association of Housing and Redevelopment
Officials (NERC/NAHRO)
Section 8 Administrators Association
North Shore Housing Executive Directors' Association(NSHEDA)
Adult Literacy Committee of Reading/Wakefield YMCA
Consultants
Accountants: Fenton, Ewald&Associates
Legal: Charles Houghton, Esq. &DHCD Legal Counsel, Lori McBride
Contractors
Hiltz Waste Disposal Bennett Construction
Avon Plumbing Supply John's Sewer&Pipe Cleaning
Hodson S M Co Inc Powers Plowing Service
Roberto Bros. Landscaping Atlas Alarm
Automatic Laundry Home Depot
Maintenance
We do it all — from the beautiful paint job to the new appointments before you move into your
new apartment. The maintenance staff meets the challenges on every occasion and has done an
excellent job.
With the four seasons here in New England, maintenance has to be ready to take it all in stride.
They do the spring clean-up and plantings; the summer mowing, watering, weeding and
trimming; the fall leaf pick-up; and winter's snow and ice removal. The maintenance staff works
tirelessly to keep our developments looking beautiful. We have been lucky enough to have the
assistance of the Work Release Program from the Middlesex Sheriff's Department. They have
been exceptional in the work that they have done with our landscaping and painting projects.
These programs are cost effective and have become a critical component to maintaining' our
properties. During the course of this past year, this program enabled us to maintain the grounds
of our properties with a fall and spring clean up. This project changed the look of these
properties and it greatly enhanced their appearances. Additionally, with the assistance of this
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program, we painted a family residence this year. The properties needed a facelift and the Work
Release Program afforded us the opportunity to enhance the appearance of those homes.
The Authority is responsible for 108 individual units located on 10 different sites. It is no easy
task to keep each one looking in its top form. The maintenance staff is also responsible for the
daily work orders and any emergency work,that has to be done. The Authority has an extensive
preventative maintenance program for all major components and has a cyclical paint schedule for
all units.
2010 Grants Received
Each year the Authority applies for several grants to improve our properties and better serve our
residents and the community. Included in this year's awards were:
Modernization of State Housing
American Recovery & Reinvestment Act-Weatherization Assistance Program (ARRAWAP)
grant of $55,120 to fund costs related to the heating system replacement at our state family
developments was awarded to the RBA. The project would carryover into 2011.
Supportive Services Grant—HUD
No funding available since we no longer administer an FSS program.
Supportive Services Grant—State
Funding of Resident Service Coordinator to address elderly/non-elderly needs for Frank, D.
Tanner Drive residents was approved; however, it is now categorized as an administrative
expense.
Audits
The Authority has a Single Audit of all programs by an independent auditor each year. Ross and
Company of Nashua, NH was engaged to perform the latest review of the Authority's programs
for fiscal year end June 2010. The audit was completed in December 10 and final submissions
expected to be completed in January 2011. The Authority had no findings or additional
recommendations as a result of this latest audit. The Authority's financial position is adequate to
meet the needs of the operation and development of the programs and we are fortunate to
maintain a retained revenue agency status.
A compliance audit for FYE June 2008 and June 2009 was conducted by the Commonwealth of
Mass State Auditors office in February 2010 and completed with no findings. The
Commonwealth of MA conducts this audit every two years. Our next compliance audit for FYE
June 2010 and June 2011 will not be scheduled until 2012.
Management Review
The Authority has had a current Management Review done of all State programs. The Asset
Managers from the State's Department of Housing and Community Development reviewed all
the operations of the State programs to insure compliance in the daily operation of the
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Authority's budget, occupancy, administration, maintenance, ,services and tenant participation.
The Authority received an excellent review with minor comments.
In regard to our federal program, the Authority submitted its annual Section 8 Management
Assessment Program (SEMAP) reports for fiscal year end June 2009 to HUD for review and
subsequent scoring. The purpose of SEMAP is to measure public housing authority performance
in key areas of the Section 8 Housing Choice Voucher Program management. It is a tool used by
HUD to effectively monitor and assist PHA's. It is our pleasure to report that the Reading
Housing Authority received an overall score of 100 percent for the fiscal year ending June 30,
2009. As a result of this score, HUD designates the Authority as a "high performer" with credit
going to Section 8 Program Coordinator Kathy Rolli for her continued efforts in administering an
ever-changing federal program. We will not submit additional SEMAP reports until fiscal year
June 2011. These assessments are now performed every two years for an agency of our size per
latest HUD changes.
State Programs
The Authority currently manages the three programs under the State's Department of Housing
and Community Development: 667 Housing (elderly/handicapped housing); 705 Housing
(Family housing); 689 Housing(Special Needs Housing).
Our 667 wait lists are open at the present time; however, we are not accepting applications for
our state family program at this time due to an estimated wait of fifteen years. We encourage
applicants to apply for our elderly/handicapped (667) housing by contacting the Housing
Authority at 781-944-6755 or by accessing the application on the Town of Reading website.
Housing for Elderly/Handicapped Persons (6671
80 units Frank D. Tanner Drive Complex
Eligibility : 60 years of age or disabled
Income: 1 person- $45,100
2 persons - $50,550
Housing for Families (705)
6 units Waverly and Oakland Road(six 3BR units)
4 units Pleasant and Parker Street
(Two 2BR units;two 3BR units)
Eligibility: Family of 2 or more depending on Bedroom size
Income: 2 persons - $5,550
3 persons - $58,000
4 persons - $64;400
5 persons - $69,600
'I 6 persons -$74,750
7 persons - $79,900
i
8 persons -$85,050
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Federal Programs
The Authority manages 125 subsidies for persons of very low income under the Federal Section
8 program. Currently, the RHA participates in a centralized waiting list administered by the
MASSNAHRO organization. Applications for this wait list are available at the administration
office building at 22 Frank D. Tanner Drive,Reading. The income limits are:
Section 8 Rental Assistance
Income limits: 1 person-$32,150 2 persons - $36,750
3 persons - $41,350 4 persons - $45,900
5 persons - $49,600 6 persons - $53,250
7 persons- $56,950 8 persons - $60,600
RHA-owned Properties
The Authority presently owns and manages sixteen family units located in various locations
throughout the Town of Reading. We acquired one additional property for potential use as an
affordable home;however, the building was sold by RHA in October 2010. Funds from that sale
have been set aside to improve present affordable units and to purchase additional affordable
property upon future availability. We continue to pursue opportunities to expand low income
housing units within the Town whenever possible.
Applications
Elderly/Handicapped Housing (667)
The Authority manages 80 one-bedroom units of housing for elderly/handicapped persons at our
Frank D. Tanner Drive complex in Reading. To qualify for this housing, a single person or
couple must meet the eligibility guidelines and be 60 years of age or older or handicapped. The
Authority sets aside 13.5% of these units for non-elderly handicapped persons.
The wait list is currently open for all seniors' 60 years of age and older. We encourage Reading
residents to apply and are making special outreach efforts to elderly of minority representation.
The 13.5% non-elderly handicapped requirement has been fulfilled but applications are still
being accepted for our wait list. Non-elderly applicants will be served after the Authority has
placed all qualified applicants if the 13.5% requirement has been met. You may obtain an
application at the office of the Authority, 22 Frank D. Tanner Drive, Reading, MA 01867 or by
accessing one online from the Town of Reading website.
Family Housing—State (705)
The Authority operates the State's Family Housing Program with 2 different developments. The
first family housing development that was built by the Authority is located at Oakland and
Waverly Roads and is called Waverly Oaks. There are six 3-bedr9om units. Our second state
family development is near the center of Town and is referred to as our Pleasant/Parker location.
There are only four units available at this site. Our wait list is currently closed. Wait times for
those presently on the list remains quite long.
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Section 8 Federal Housing Assistance Program
Currently the wait list for our Section 8 Program is open. We now participate in the centralized
wait list program initiated in December 2002 and administered by Mass NAHRO. Applications
are available at our administrative office or online at www.mnahro.org. An application can be
downloaded from that site and submitted to � agency participating in the centralized wait list
program. There are currently over 85 member agencies taking part in that joint process. At
present there are almost 100,000 families on this waitlist with waiting times for assistance quite
long.
The State maintains a wait list for its. programs through the Metropolitan Boston Housing
Program (MBHP). Anyone seeking an emergency application should contact MBHP at $00-272-
0990 to obtain an application. The local area service agency for emergency applicants is
Community Service Network. You may contact them at 781-438-1977.
Summit Village First Time Homebuyers Program
The Authority continues to oversee the maintenance of the wait list for qualified and eligible
applicants for the affordable units at Summit Village through the First Time Homebuyers
Program. We presently have nine potential buyers on our waitlist. During the past year, no
affordable unit was made available and subsequently sold at an affordable price to a family on
our wait list. The "affordable" owners must have a fair market appraisal done; the Authority
reviews the appraisal and if accepted, provides the owner with the maximum resale price for the
affordable unit. If the owner has a friend who would be eligible and income-qualified, then the
Authority reviews their qualifications and provides them with an "Eligible Purchaser
Certificate". If the owner wishes to select an applicant from the wait list, the Authority would
send the next available and eligible buyer's name to the owner to negotiate the sale.
Interested applicants may pick up applications packets at the Town Clerk's office in Town Hall;
at the Reference Desk at the Reading Public Library; or at the office of the Reading Housing
Authority, 22 Frank D. Tanner Drive. When making an application, a $10 fee made payable to
the"Reading Housing Authority"must be included along with all pertinent documentation. If the
family applying for the affordable unit is headed by 2-persons, both parties must execute the
application as applicant and co-applicant. Income from all family members age 18+ is included
in family income for eligibility. However, if the income of one of these persons is from a
dependent (not spouse) who is a full-time student, then a deduction for out of pocket expenses
for books, tuition, fees and/or travel is allowed. Documentation from the school must be
provided and verification for employment and expenses must be provided with the application.
All persons must sign a "Release of Information" to have their documentation verified by the
Authority. Highlights of the program are:
First Time Homebu�er Cannot have owned a home within the last 3 years; divorced
persons cannot currently own home but 3 year restriction is
excused.
Maximum Family Income Currently, the maximum family income cannot exceed 80% of
FY 2010 Medium Family Income presently set at $91,800
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(effective 5/14/10) for all persons in the family from all sources
(wages, interest, dividends, etc).
Family Housing The 2 bedroom units must have a minimum family size of 2
persons. The maximum number of persons that can qualify for
a 2-bedroom unit would be 4 persons.
The 3 bedroom units must have a minimum of 3 persons with 2
being minor children living in the household. The maximum
number of persons that would qualify for a 3-bedroom unit
would be 6 persons.
Affordable Price The affordable price is based on a 20% discount from the
current fair market appraisal of the unit, which must be verified
by the Authority.
Deed Restriction Anyone wishing to purchase an"affordable"unit should be
aware that a permanent deed restriction would be recorded with
their deed. This restriction states that the unit must be sold to a
qualified and eligible purchaser at a 20% discount from the fair
market value as approved by the Reading Housing Authority.
Single Persons Applications are accepted from single family households but
persons on the single person wait list will be chosen only after
all the eligible family applicants have been served.
Local Preference Applicants from the Town of Reading are given preference
over other applicants if their application is made on the same
day. This local preference is given if a person is employed in
the Town of Reading; has a business or enterprise in Reading
which has been established for one or more years; if they are
parents of a school child in Reading; persons who were
residents of Reading for 5 or more years.
Conclusion
The Reading Housing Authority is proud to provide this information to you. Anyone interested
in obtaining an application for any of our housing programs: elderly/handicapped housing, state
family or the Federal Section 8 Rental Assistance Program, should contact the authority at 22
Frank D. Tanner Drive or by calling the office at 781-944-6755.
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