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Home My WebLink About2010-10-27 Board of Selectmen PacketThe Town of Reading - FINCOM: Financial Forum H http://www.readingma.gov/Pages/ReadingMA_MeetingCal/SO15D6FI... FINCOM: Financial Forum II Wednesday, October 27, 2010 at 7:00 PM Senior Center Printer-Friendly Version Financial Forum II (Expenses) -Agenda October 27, 2010 Senior Center a a i Google Search CO~N MAO, COMMONS CAUSE' 7:00 - Call to Order 7:05 - Financial Update Projected FY12 Revenues Projected FY12 Accommodated Costs Operating Budget Guidance 7:25 - Financial Forum I (Revenue) Recap Top Opportunities Identified Next Steps / Follow up 7:40 - Town/School Expenses Simplified overview of cost of services provided Expense Reduction Initiatives Explored 8:00 - Brainstorming Session - Potential Expense Reductions 8:30 - Debrief & Identify Top Opportunities 8:50 - Summary & Next Steps 9:00 - Close/regular FINCOM meeting begins Budget Calendar: Oct 27 Financial Forum I1- Expenses & Budget Guidance Jan 24 Financial Forum III - State Aid Updates & Capital March 2, 9, 16, 23, 30 FmCom Budget Review April 25 Town Meeting -)f 2 10/27/2010 11:14 AP Town of Reading FY12 Budget Process Financial Forum October 27, 2010 Financial Forum October 27, 2010 Update on Reading's Local Budget - FY10: Revenues & Expenditures - FY11: Revenues & Reserves - FY12: Revenue & Accommodated Costs Forecast Financial Forum October 27, 2010 FYIO Recurring Revenues: Total Si 7,G I under ~n FY10 Budget FY10 Actual Change Prop. Taxes $49.50 mil $49.77 mil 0.27 mil Local Revs. $ 5.41 mil $ 5.40 mil -g 0.01 mil Intergov't $13.04 mil $12.72 mil 0.32 mil TOTAL $67.96 mil $67.90 mil _S0.06-mil Financial Forum October 27, 2010 FY10 Expenditures: Total $1,210,73 4 under budget - Negotiated Lower Health Ins Premium -$215k - Salaries - various unfilled vacancies -$207k - Reserve Fund unused 79k - Rubbish disposal (less tonnage) 75k - Gasoline 50k - Regional School (less students) 47k - Town-wide Various Accounts 4251 k - School-wide Various Accounts -$287k Financial Forum October 27, 2010 FY11 Revenues - Total $50,000 under budget (use Free Cash in Nov. TM) • -$350,000 cut in Federal ARRA • -$330,000 cut in Federal Medicaid • -5150,0001=1 charges (permits, ambulance billing) $830,000 in reductions • +$350,000 Smart Growth • +$150,000 New Growth • +$140,000 Meals tax • +$105,000 state Aid • 35,000 Reading Ice Arena Authority $780,000 in increases Financial Forum October 27, 2010 Reserves as of November 2010 - Free Cash 6/30/10 S 4,953,340 • NwemberTM Article 4 - S $7,000 • November TM Article 11 - $230,000 S 4,636,340 - General Stabilization Fund $ 1.524,831- - FINCOM Reserves $ 150,000 - TOTAL $ 6,311,171 is 8.7% of estimated $72 million FY12 net available revenue 'total excludes funds designated for specific purpose (1) Financial Forum October 27, 2010 FY12 Revenues (projected) preliminary +5% $12.7 mil Benefits +8% (Health Ins +10%) $ 1.2 mil Capital +20% (per 5% FINCOM policy) $ 6.0 mil Debt -2% (per 5% FINCOM policy) $ 2.3 mil Energy -3% $ 0.6 mil Financial +11 % $ 4.1 mil Education - out of district SPED +11% $ 0.4 mil Education -Vocational +13% $ 2.8 mil Miscellaneous +0% $30.2 mil Total (prelim.) Accom. Costs+ $1.5 mil vs. FYI 1 Financial Forum October 27, 2010 FY12 Budget Summary • Revenues - $0.4 million • Accommodated Costs + $1.5 million • Operating Budgets - $2 million (-a%) > FINCOM guidance 0% & use reserves FY12 Budget Overview • Revenues Fate of question #3 • Accommodated Costs Health Ins./Energy Operating Budgets Plan to use reserves? FY11 FY12 Change Prop.Taxes $51.1 mil $52.5 mil +$1.4 mil Local Revs. 5.5 mil $ .3 mil 5 $ 0.2 mil IMergov't 3.2 mi l $1 mil $11.6 1.6 mil Trf S Avail $ 4.2 mil $4.2 mil unch TOTAL E74.0 mil $73.6 mil • $0.4 mil Forum Financial 2010 October 27 , FY12 COSTS: ACCOMMODATED 6) Revenue Enhancement Ideas from Reading Financial Forum September 15, 2010 Bucketed List Evaluation Criteria Opp Cost / Being Ease to Implement Ongoing Community Unintened Who Should FinCom Next ONE TIME REVENUE Sale of Town Land (Oakland Rd-last big parcel) 25 High Medium None TBD Varies by lot Selectman ONGOING REVENUE 1 School and Town Land: Opportunities 49 Cell Towers 20 Yes Medium Low-Medium TBD TMgr/Selectman Advertising/Billboards 15 Yes Medium TBD Selectman/SC Wind/Solar Power Generation and Sell Back 9 No RMLD Sell Timber in Town Forest 5 Yes DPW/Town Forest Committee 2 School and Town Facilities: Opportunities 24 Rental of existing space 15 Yes Low Low Selectman/SC Naming Rights 9 No Selectman/SC 3 Fees: Introduce New Ones 18 Pay as You Throw Trash.Fee 6 No Selectman Preferred Parking Fees at RMHS 6 No Schools Billing At Fault Accidents 5 No Public Safety Wireless air rights billing 1 No 4 Economic Development 17 Low-Medium Positive Town Economic Development/PR 12 Yes Selectman Tax Incentives for New Business 5 No Selectman 5 New Initiatives 16 TBD TBD Grant Writers to Bring in 5 No Selectman/SC Endowed Positions at Schools 5 No Schools Road Races Program 3 No Recreation Reading Branded Credit Card 2 No Selectman/SC Remove state gas tax on Town 1 No Legislators 6 Fees: Increase existing 12 Low-Medium TBD Parking Fee at Depot 10 Yes Selectman Raise Parking Tickets & Fines / Parking Meters 1 Yes Selectman Increase RMLD annual in lieu of Tax Payment 1 Yes Selectman Increase Ice Arena payments 0 Yes Selectman 7 Gifts/Donations/Sponsorships 12 Low TBD Sponsoring Town Trees, Benches, Lights, etc. 7 Yes Selectman Focused Approach for Gifts/donations 5 No Selectman/SC 8 Expand Service Offerings 6 Low-Medium TBD Offer Ambulance Services to Other Towns 6 No Selectman Total Votes 179 FYI I revenue sources and uses of funds associated with a typical $400,000 single family home in Reading Source of Funds FY 2011 property taxes $ 5,500 68% State & Federal Aid $ 1,422 18% MV Excise taxes $ 258 3% RMLD Distribution $ 234 3% Transfers & Other $ 220 3% Charges & Permits $ 189 2% Other Local revenues $ 134 2% Cash Reserves $ 101 1% Meals tax $ 15 0% TOTAL $ 8,074 Use of Funds Summary FY 2011 Town $ 1,950 24% Schools & Facilities $ 3,997 50% Shared Costs $ 2,127 26% TOTAL $ 8,073 Wages $ 4,449 55% Expenses $ 3,624 45% TOTAL $ 8,073 Use of Funds Details FY 2011 Public Safety $ 834 10% Public Works $ 583 7% Accounting & Finance $ 210 3% Library $ 132 2% Community Services $ 117 1% Town Administration $ 74 1 % Town Gov't $ 1,950 24% Regular day $ 2,315 29% Special Education $ 995 12% Health/Athl/ExtrC/Tech $ 132 2% School Administration $ 90 1% Sch. Building Maint. $ 385 5% Town Building Maint $ 80 1 % Schools & Facilities $ 3,997 50% Benefits -Health/Life Ins. $ 821 10% Debt + Capital $ 770 10% Benefits - Retirement $ 319 4% Benefits - Other $ 121 1 % State Assessments (META) $ 61 1 % Vocational Education $ 35 0% Shared $ 2,127 26% For a $400,000 single family home in Reading, taxes are $5,5001 year, Along with those property taxes, the Town receives other types of revenue that help to pay for a variety of services. The largest comes from Reading income & sales taxpayers via State Aid - and recently some smaller amounts of Federal Aid; and via the excise tax of autos and boats. RMLD pays an annual amount as an ownership distribution, and then there are a variety of local charges (such as permit fees) and transfers (such as the Reading Ice Arena annual payments). In addition to the $5,500 property tax, another $2,574 in funding from these other sources helps pay for general fund expenses every year. There are three main use of funds categories: the Town government, the School and Facilities departments, and a third group of costs that are shared by each of the first two groups. Another way to look at the uses of funds is by wages paid to employees, and non-wage expenses. Some of these expenses are related to personnel (such as benefits listed below), but many are independent of the workforce. The main functions of Town government include the categories seen on the left. Police, Fire and Dispatch make up the single most expensive service that are provided for the Town. The $400,000 homeowner receives $834 of service from Public Safety, and so on down the list. These services do not include capital projects such as new playgrounds or road improvements, which are described below as shared debt & capital costs. The main functions of the School and Facilities departments are shown on the left. That $400,000 homeowner receives $2,315 of Regular day educational services, $995 of Special educational services, and so on down the list. Historically the 2-1 ratio between the Schools/Facilities and the Town government is typical, here shown as 50% vs. 24% for FYI 1 budgets. Shared costs include benefits costs - both for active and retired employees. At 10%, health/life insurance has always been the largest component. Over the past decade it has trended up from about 8% to 10% of the budget. In other cities and towns it is often 15-20% of total budgets: Reading has taken many proactive approaches to reign in the costs of healthcare insurance. Debt and Capital is an important long-term investment for the Town to make in buildings and equipment, including road repairs and recreational projects. 0 Expense Management Evaluation Criteria Opp Cost/ fBB'e i ng Ease to Cost to Ongoing Community Unintened Who Should FINCOM Next # one Expenses Implement Implement Cost Impact Consequence Carry Fwd Contact Steps ONE TIME EXPENSE T Arrange MSBA early payments on RMHS Y Medium High effort None Yes(1) Yes(2) Finance Refi in FY14 (1) To reduce the amount of the override that we assess to the taxpayers. (2) Additional interest expense on the MSBA portion of the $35 million debt if we don't refinance in a few years. T Refinance old School debt y $205k npv Easy Low None None None None Impact on CIP FY09-FY13 +$557k Coolidge debt Finance Refi in FY12 Sch Facilities Department constructed some election equipment, vs purchase y $2,100 Easy Low None None None None UNUUlrvb rArrNbr Benefits/Personnel T/S Health Insurance - tiered program Change from social security to ICMA OBRA for those not in T/S a retirement system Email direct deposit advices to staff (22% and increasing) to T avoid printing costs Modification of non-union benefits (sick leave, sick leave T buy-back) Sch Offering early retirement to all school employees Collective Bargaining - constrained salary increases and modification of benefits (sick leave, sick leave buy-back, T vacation) T/S Freezing salaries - non-union employees T Reduced hours of work across the board T/S Imposed unpaid furloughs T Cut salaries Reduction of staff (attrition where possible to avoid T unemployment expenses) T a. Eliminate Coordinator of Volunteers T b. Eliminate Assistant Bldg Inspector y $590k/yr Coll Barg High effort y $105k/yr Difficult High effort $20k/yr y Y N Y Y N N N Y Y Y Easy Medium High effort Coll Barg High effort Medium High effort Medium Low Costs shift to None emp'ee Less emp'ee None investment choice None None Less emp'ee benefits Less emp'ee benefits Less emp'ee benefits Tasks done by 3 depts. \31 T c. Eliminate Technology Librarian/Instructor T d. Eliminate one Firefighter T e. Eliminate Permits Coordinator T f. Eliminate Staff Planner T Reduced hours of staff where feasible (T Mgr office) T Reduce hours of seasonal Assessor T Reduce hours of seasonal DPW Reduced staffing levels for library Sunday hours (skeleton T crew) Sch Reduction in school department personnel: Sch a. Teachers - 7.0 teachers over last two years b. Paraprofessionals -18.1 paraprofessionals over Sch last 2 years Sch C. Secretaries -1.2 Secretaries this year Sch d. Custodians - 5.0 custodians over last 6 yrs Sch e. Administrator-Assistant Dir. of Facilities Sch f. Administrator - Assistant Superintendent Outsourced custodial services at RMHS and one shift at Sch Coolidge Middle School Sch Outsourcing custodial services at all buildings Sch Maximize the use of student teachers and volunteers Increased volunteer hours and senior tax workers (Town T Clerk's office) Sch Use of parent volunteers to teach classes Expanding online learning to replace existing teaching staff Sch Going to a 4 day school week Sch Reducing number of student days from 181 to 180 Expenses/Personnel Reduction in professional development/increased use of electronic webinars Reduction in curriculum and instructional materials - 65% reduction over last 2 yrs Reduction in professional development - 65% reduction over last 2 yrs Expense Management Evaluation Criteria ft Eliminating professional development inservice time for Sch non-teaching staff T Eliminate out of state Professional Development T Reduce Assessors use of outside consultants Expenses/Financial MIIA Rewards seminar participation - earn credits on T/S insurances T Earn upgraded bond ratings Establishment of some revolving funds to tie expenses directly into revenues (Inspections, Mattera Cabin, Health T Clinics, Library Materials) Purchase hand-held scanners ($1600) to save annual lock box fees, as well as improve accuracy of information and T speed of processing payments T Reduce library % materials budget - rely on gifts I Expenses/Operational Sch Performance Contracting to reduce energy expenses Amend hours at Town Hall to save operating costs, and T improve customer service Removal of small appliances (refrigerators, microwaves, Sch etc.) from all classrooms Use of computer software to automatically shut down all Sch computers each night Sch Use of automated software based on facility rentals Server and.computer virtualization which reduces hardware Sch and energy costs Network virtualization to reduce energy costs, improve T reliability and allow remote access T Slow down PC replacement cycle T Cancelled PC repair and maint. contract w/ Noble T Conversion of fleet to hybrid to reduce fuel expense Anti vehicle idling to reduce fuel use (and improve the T/S envirionment Aggressive preventative maintenance to prevent costly Sch emergency repairs Expense Management Being Ease to Cost to one Ex ense Implement Implement N y Easy Low N Evaluation Criteria Opp Cost/ Ongoing Community . Unintened Who Should FINCOM Next ost lmg)act Consequence Cann Fwd onta t Steos None Less PD Y $35k/yr High effort None None None All Staff High effort None None None Finance Y Y Y $10k/yr Easy None N Y $325k/yr High effort High effort y $20k/yr High effort Y Y Y Y y Difficult $50k+ N Y $6k/yr y $5-10k/vehicle Y Y None None (:4 N Expense Management Being Ease to Cost to # Done Expenses Implement Implement Use of parent volunteers to maintain PCs or technology Sch infrastructure N T Modification of rubbish and recycling program Y High effort Elimination (phase-out) of plowing church parking lots to $10,000 to reduce snow plowing expense (also to comply with State Y $25,000 T Constitution) per year Public/Private partnerships (tree watering, adopt an T island)) Y High effort T In-house PBX phone system Y $30k/yr Medium Sch Increased recycling Y Easy T/S Active paper re-use and reduction efforts Y Easy T/S Elimination of ink jet printers Y Easy T/S Networked photocopiers and printers y Sch Setting photocopier settings to automatically duplex Y Easy T Document storage initiative to reduce paper Y $50k+ Greater use of electronic communication to reduce printing/mailing costs (YCC, Board agendas, electronic Y T/S forms to parents) Sch Use of electronic education tools (blogs, wikis, etc.) y Expenses/Cooperative Efforts T Regional programs (Veterans Services) Y T Regional programs (Dispatch) TBA Difficult T Regional programs (Assessors) TBA Difficult T Regional programs (GIS) TBA Difficult T Regional programs (Technology) TBA Difficult Use of regional transportation collaborative for out-of- Sch district special education Y Special education collaborative programs whenever possible for special education children who need special Y Sch programming not offered in Reading Schools Coordinate bulk shipping of text and materials with other Sch districts N Purchasing materials through Staples and WalMart when Sch thev have sales N Participate in joint purchasing collaborative with 65 other L communities for school, office, and custodial supplies y Evaluation Criteria Opp Cost/ Ongoing Community Unintened Who Should FINCOM Next Cost Impact Conseauence Car Fwd Contact Steps None None None 'a Expense Management Evaluation Criteria N Joint bidding/purchasing (Office supplies, sand and salt, T fuel) Library saves on processing supplies by participating in T statewide purchasing cooperatives Resource sharing/Reciprocal borrowing and lending results in 33,000 books borrowed for Reading residents from other libraries in one year, savings = $660,000 (purchase cost = T $20 each) With the recent municipal reform act passed in July, we are now able to purchase from national collaborative; we have, Sch as a result, just joined the National Joint Powers Alliance. Use of state contracts whenever possible (technology purchases, photocopiers, maintenance supplies, Sch maintenance services, etc.) Re-negotiation of maintenance contracts and equipment Sch leases Creation of in-district special education programs to bring students back to Reading from costly out-of-district Sch placements In-sourcing of costly special education consultative and Sch therapeutic services In-sourcing of maintenance services (carpet shampooing, Sch exhaust fan maintenance, etc.) Being Ease to Cost to Done Expenses Implement Implement Y Easy Y Easy Y Easy y Y Y Y Y Y Opp Cost/ Ongoing Community Unintened Who Should FINCOM Next Cost Impact Consequence Carry Fwd Contact Steps ALTERNATE ROADWAY LAYOUT CAUS EWAY ROAD ESTIMATED BETTERM ENT ASSESSM ENTS October 26, 2010 MAP PARCEL ADDRESS FRONTAGE ASSESSMENT NOTES 31 1 RMLD 31 $ 3,694.11 frontage shown on Assessors plan is 31 2 31 Causeway Rd, Reading, MA 60.58 $ 7,219.00 Calculated Frontage 31 3 33 Causeway Rd, Reading, MA 60.56 $ 7,216.62 Calculated Frontage 25 57 RMLD 221.28 $ 26,368.79 Calculated Frontage 31 4 RMLD 178.96 $ 21,325.73 Calculated Frontage 31 5 TOWN 169.24 $ 20,167.45 Calculated Frontage 25 46 80 Causeway Rd, Reading, MA 129.20 $ 15,396.09 25 47 74 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 48 66 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 49 60 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 50 52 Causeway Rd, Reading, MA 126.47 $ 15,070.77 25 51 53 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 52 61 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 53 65 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 54 73 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 55 81 Causeway Rd, Reading, MA 112.81 $ 13,442.98 1 $ 230,000.00 Total private road frontage 1930.10 71, 556.09 Estimate for the construction of the private section of roadway = $ 230,000.00 cost per linear foot $ 119.16 CAUSEWAY ROAD FRONTAGE ON EXISTING PUBLIC WAY September 23, 2010 MAP PARCEL ADDRESS FRONTAGE NOTES 31 6 101 Willow St, Reading, MA 246.64 Public - frontage is derived from record plans 31 7 TOWN 96.69 Public - frontage is derived from record plans 31 9 STATE 374.61 Public Voted - Approved by Board of Selectman Oct. 26, 2010 D PUBLIC PRI VATE CAUSEWAY ROAD RESURFACING AND RELATED WORK -ALTERNATIVE02 STATE SECTION STA TE SECTION MID-SECTION "EXTENSION- SECTION m atwowrle Rod- Reclaim m,W,,He ITEM Total Estimated Quantity Unit Unit Price Sum of all ext..dd Prices Lawall St Gutter (Sts 0+00) to Sts 3+00 Ste 3+00 to End of State Seceon Ste 4+61 Sta 4+61 to Sta 9+75 Ste 9+75 to end Sta 13+77 Constructlon Manage Euavstbn Treat Removal>I-12" 16.00 166.00 7.00 SF CY Each f 20.00 $ 25.00 f 1500.00 $320.0 $4,200.0 $10500.0 0 16 0 0 320.00 33 825.00 133 6 3,325.00 9000.00 2 1 50.00 1500.00 Tree Removal c 12" 5.00 Each f 600.00 $4.000.0 01 3 2,400.00 2 1,600.00 Trim 14' Oak Tres 1,50 Each S 200.00 5200.0 1 200.00 Trim 35" Oak Tree 1.00 Each $ 400.00 $400.0 0 1 400000 Remove Basketball Hoop Each S 200.00 50.0 0 Remove aM Resat Mailboxes L00 Each S 125.00 $250.0 2 250.00 Relocate Hydrant Each S 600.00 $0. Rebut. Utility Pais (RMLD) 1.00 Each S 10000.00 $10000.0 0 1 10000.00 0 Remove and Dispose Bushes Rebuild existing sandstonalbrtck walkway 2.00 LS Per S 100.00 S 1200.00 50.0 2400.0 0 2 240000 Pavement Exoawtbn CubWPstch (Includes bIL conc.) Granite Curb -8baight(Public Cost to Supplement Prhots Drain Cost) Granite Curb-Radius Granite Curio-Throat Stones Wreaker Curb-Curb Returns 8.00 233.00 1884.00 178.50 30.00 4200 Cy BY LF LF Eech Each f 35.00 $ 165.00 It 32.00 $ )LOO 235.00 S 235.00 $280.0 $22,400.0 0 6 0 0 Be 0 430 0 0 0 2 210.D0 14 190.00 13760.00 47000 270 4 664000 94D.OO 2 758 12 18 70.00 24256.00 2620.00 4230.00 147 426 178.5 18 18 24 255.00 13632.00 5712.00 4230.00 4230.00 Orewl Borrow 166.00 CY $ 30.00 A 33 990.00 133 3 990.00 Flce Grading and Compacting 1 801.00 SY f 1.50 430 645.00 1371 2 056.50 khwaik cut-Upbh 47.00 SY $ 180.00 0 47 8,460.0 klewslk owrtey (1.51 474.00 SV $ 15.00 0 10 180.00 464 0 352.00 ust Drainage and Utility Structures 7.00 E 165.00 1 165.00 2 330.00 4 660.00 Rebuild Drainage and Utility Structures 4.00 VF $ 165.00 Smooth ) 4 680.00 New Catch Basin New 0ra1. Manhole 2.00 1.00 LS LS f 600.00 3 300.00 $5,000.0 $2,300.0 2 1 5,000.00 2,300.0D 12" RCP 18.00 LF $ 50000 $900.0 10 900.00 Bandon RCP 30.00 LF It 40.00 $1,200.0 0 30 1,200.00 dust water Gates 3.00 EA $ 125.00 $375.0 0 1 12500 2 250.00 ate, gate casting (in place, to grade) 1400 EA S 150.00 $150.0 0 1 150.00 lone bound casting (in plan, to grade) 1.00 EA It 65.00 $85.0 0 1 8S.00 BR Cone. Binder S Top Handwork 42,00 TON I S 135.00 $5,670.0 0. 3 405.00 3 405.00 25 3v375400 11 1.40500 Bituminous Concrete Base Course (3") 28L00 TON S 75.00 $21 150.0 0 74 5,550.00 208 15600.00 Bituminous Concrete Leveler Course (1") 99.00 TON S 75.00 $7 425.O D 10 750.00 89 6,675.00 Spray Tack Cost Bituminous Concrete Top Course (2'1 Hot Rubberized Sealer 217.00 457.00 1457.00 GAL TON LF S 3.00 f 75,00 $ 1.00 $651.00 $34275.00 $1457.0 51 95 380 153.00 7,125.00 360.00 23 49 161 69.00 3,675.00 161.00 68 151 514 204.00 11 325.00 514.00 75 162 402 225.00 12,150.00 402.00 Cold Plane 2,330.00 Sy $ 2.85 $6640.5 660 2,451.00 1470 4,189.50 Racism Base Co.'.. 1,621.00 SV $ L75 $4457.7 458 1,259.50 1163 3 198.25 Drain Construction (lass public curb cost of $22,400) 1 LS $55,000.00 $32.600.00 1 32 600.00 Crack Sealing 360.00 Gal f 5.60 3060.00 150 1275.00 210 178500 R&R Wood Pol. Fence at RMLD Property 01.00 LF $ 45.00 13 645.00 61 3 645.00 R.-sidbirose section of fence at 552IRMLD Prop, Lino Lcam and Seed 1.00 1,370.00 LS SY $ 135.00 f 5050 5735.00 $7,535.0 0 200 1 100 00 145 797.50 1 445 135.00 2 441.50 5e0 3,190.00 Traffic Markings 1 LS $150.00 S150.00 1 150.00 I Misc supplles...stekes, paint. foamboard, etc 1 LS $ 75000 $75.00 1 75.00 reffb Control 1 LS $ 22,886.95 $22886.95 1 4325.10 1 3697.20 1 13859.13 1 1,005.23 Revised Through October 13, 2010 > 9 > l>L,>JU.Jtl s 1u1,JL1.IJ S 34,222.67 $ 4,757.94 S 4,066.02 S 15,245.04 S 10,152.77 $325,799.37 $ 52,337.34 S 44,736.12 S 167,695.41 S 111,680.50 TOTAL COST PUBLIC SECTION S DRAIN SUPPLEMENT (Cost 100% TOWN) $ 97,073.46 Total Cost Curbing Private Section $50,650.00 TOWN SHIRE OF BETTERMENTS 6 20,167.45 TOTAL TOWN SHARE OF PROJECT 6 117,240.91 TOTAL COST PRIVATE SECTION Less Private Curb Cost Total Cost Less Board Authorized Reductions -0cL 26, 2010 Board Authorized Reductions -0cL 26, 2010 - Highlighted Cells 279,375.91 550.650.00 S 226,725.91 (E) ~N OFRFgO Finance Committee Meeting Vl d, o o~ August 4, 2010 '639: P Conference Room, Reading Town Hall MCA The meeting convened at 7:35 PM in the Conference Room of Town Hall. FINCOM Members Present: Chair George Hines, Vice Chair David Greenfield, members Barry Berman, Mark Dockser, Frank Fardy, Kevin Leyne, Harold Torman and Marsie West. Members Absent: Bryan Walsh , Also Present: Assistant Town Manager/Finance Director Bob LeLacheur. There being a quorum the Chair called the meeting to order at 7:35 pm. Public Comment: No comments. FINCOM reorganization: Outgoing Chair turned the meeting over to Bob LeLacheur, who opened the floor to nominations for FINCOM Chair for FYI 1. On a motion by Berman, seconded by Greenfield, the name of Marsie West was raised. There being no other names put forth, LeLacheur closed the nominations. By a vote of 8-0-0, Marsie West was nominated for FINCOM Chair. LeLacheur turned the meeting over to Ms. West, who opened the floor for nominations for Vice Chair. On a motion by Hines, seconded by Berman, the name of David Greenfield was raised. There being no other names put forth, West closed the nominations. By a vote of 7-0-1, David Greenfield was nominated for FINCOM Vice-Chair (Greenfield abstaining). FINCOM liaison assignments: On a motion by Berman, seconded by Hines, the names of Chair Marsie West and Vice Chair David Greenfield were nominated as FINCOM representatives for the Audit Committee, and confirmed by a vote of 8-0-0. West reviewed the other liaison assignments, asking if there were preferences among the members. Hines asked that he be a liaison to the library, in light of his work on the Municipal Building Committee. A few members indicated an interest in the School department. The new temporary list will be attached to these minutes, and finalized during the next FINCOM meeting. FINCOM FY11 meeting schedule: Financial Forum I will be held on September 15th with a focus on alternative revenues. Mr. Greenfield asked that expense reduction initiatives be publicly discussed this year as part of the FYI 2 budget process in order to educate the community and Town Meeting. Mr. Hines said that FINCOM has pursued expense reductions and efficiencies for every year since he can recall. 0 Financial Forum II will be held on October 27 with a recap of the Town's reserves position, and a look at estimated FY12 revenues. Given these two, discussion about use of free cash in the FY12 budget will ensue, and preliminary budget guidance will be given by the FINCOM to all departments according to the historic approaches on accommodated and non-accommodated costs. Mr. LeLacheur indicated on a preliminary basis that Town Accountant Gail LaPointe suggests the Town will regenerate a solid number towards free cash from the FYI I budgeted amounts not spent. Mr. Berman said this is always a double-edged sword: on the one-hand this implies the budgets are too high; but on the other given the nature of different areas turning back funds each year that departments do a good job in not spending money unnecessarily. Financial Forum III will be held on January 26, 2011 unless important budget information becomes available sooner. Town-wide technolopay initiatives: Mr. LeLacheur reviewed a number of projects (see attached). Mr. Greenfield emphasized that he would like to see some cost and effort estimates to have a fully redundant network and further details about backup procedures, as well as a continuity of operations plan (such as has been done by Chief Burns for all departments as a town-wide overview. Mr. LeLacheur said he would bring the request to the next Department Head meeting in two weeks. Multi-Board Revenue Discussion: Mr. Berman would like to suggest a School Committee-Selectman-FINCOM ad-hoc committee be formed. He requested a map of town-owned land. He suggested the Town should provide the following information to the general public: already cutting expenses; already funding activities with grants; what limits there are on what activities the Town is allowed to do (for example, it cannot invent and sell a product); what options the Town can use to raise revenues, and a thorough review of all fees collected versus other neighboring municipalities. Mr. Dockser suggested a brainstorming session at the first financial forum in September, and volunteered to lead an effort as he has done in the private sector. Ms. West asked Mr. LeLacheur to contact the other major boards with an overview of this discussion. On a motion by Mr. Hines, seconded by Mr. LLey e, FINCOM voted to approve the Minutes of June 9, 2010 as amended by a vote of 7-0-1 (Berman- abstaining). On a motion by Mr. Berman, seconded by Mr. Hines, FINCOM voted to adiourn at 9:40pm by a vote of 8-0-0. 2 9 N Or ItFA Finance Committee Meeting N• y. Financial Forum 0 0,639;'NCORQO~? September 15, 2010 The meeting convened at 7:00 PM in the Conference Room of Reading Public Library. FINCOM members present: Chair Marsie West, Mark Dockser, Bryan Walsh, Barry Berman, Kevin Leyne, Francis Fardy and David Greenfield. Members Absent; George Hines and Hal Torman. School Committee Members present: Chris Caruso, Karen Janowski, Hal Croft, David Michaud, Chuck Robinson and Jared Beaulieu (School Committee student representative) Board of Selectmen members present; James Bonazoli, Rick Schubert, Ben Tafoya, Camille Anthony, Steve Goldy Board of Library Trustees present Vicki Yablonsky, Richard Curtis, Jeff Doucette and Cherrie Dubois EDC member Russ Graham Town Meeting members John Arena, Bill Brown and Tom Ryan Also Present: Town Manager Peter Heckenbleikner, Town Accountant Gail LaPointe, Assistant Town Manager/Finance Director Bob LeLacheur, Superintendent of Schools John Doherty, Assistant Superintendent Patty de Garavilla, Director of Finance and Operations Mary DeLai, Greg Burns (Fire Chief), Jim Cormier (Police Chief), Ruth Urell (Library Director), Jeff Zager (Public Works Director), Jane Kinsella (DPW Business Manager), David Mancuso. Press: Matt Casey (Reading Patch) and Paul Feeley (Daily Times Chronicle). There being a quorum the FINCOM Chair called the meeting to order at 7:09 pm. The Chair of the Selectmen also called the Selectmen's meeting to order and the Chair of the School Committee called the meeting to order. The Board of Library Trustees called their meeting to order at 7:30 PM. Ms. West gave opening remarks and introduced everyone to the first Financial Forum of the budget year. Assistant Town Manager & Finance Director Bob LeLacheur reviewed the budget calendar noting that there will be three Financial Forums this year (September 15th, October 27th and January 27t) . The School Committee's budget meetings are also shown on the meeting handout. Mr. LeLacheur explained the budget process. Generally, the Financial Forums are held earlier in the year in the fall and winter while the Finance Committee begins meeting at the end of February or early March to prepare the budget for Annual Town Meeting in the spring. The Town Manager's budget is finalized in February. Revenues: Current Estimates: Town Accountant Gail LaPointe reviewed Reading's reserve funds. Ms. LaPointe explained the existing reserves held in stabilization funds shown on page 4 of the handout. The Town has several stabilization funds that includes; a general fund, a smart growth incentive payment fund, employee buy-back fund, sale of real estate fund and certified "free-cash" fund. A little over $1.5 million is in the general fund. The smart growth incentive payment fund that holds $700,000 and includes the two $350,000 payments the Town received from the State for adopting smart growth districts (the gateway smart growth site and the downtown district). This money was placed in the stabilization fund because if construction does not begin with in a certain time period the Town must return the money to the State. The $1 million sale of real estate fund and almost $4 million in the free cash completes the reserves summary. Free cash will change as the following discussion will discuss. Revenues: Historic Regeneration: Ms. LaPointe reviewed the history of Reading's revenues (from 2005 to 2010) and how it has varied from the original projections that budgets were built upon. The amount of money in the Intergovernmental has the largest variance which includes money from the State and Federal government. In 2009 and 2010, the Town received significantly less than what was originally budgeted. The Investment Income was relatively high during 2007 and 2008 because of the High School construction project but the budgeted interest income for operations excluded this amount, which was set aside for one-time capital expenditures during these years. Revenues have exceeded the Town's projections for the last five years but in 2009 and 2010 there was a shift and the margin of surplus was very narrow. The surplus becomes free cash at year end. Expenditures: Ms. LaPointe reviewed the variances in the 2010 expenditures shown on page 5 of the meeting handout. When money that is budgeted is not spent it is returned into free cash. For example, the trash account was lower over the last couple of years than what was budgeted because people tend to generate less trash during economic recessions. Mr. LeLacheur pointed out that when reviewing the budget from previous years to keep in mind that it is the final budget and not necessarily what was approved in the spring because sometimes money is transferred during the year. Money not spent becomes free cash at year end. Free cash is projected to be about $5 million based on these discussions. Town Land Overview: Town Manger Peter Hechenbleikner provided a list and map showing all of the vacant Town own land in Reading, excluding parks., cemeteries and conservation land. The parcel size and land values are also included on the handout. Many of the Town's vacant parcels have limitations such as wetlands. Only a couple of parcels are opportunities for the Town to sell to generate some revenue. The Oakland Road and Pearl Street parcels are potential sites. The Town Manager suggested some of the wetlands be transferred to the Conservation Commission. Selectmen Bonazoli asked how the land values were calculated and Mr. Hechenbleikner explained that they were the assessed value from the Town's Board of Assessor's. Mr. Brown asked how the Town transfers land and Mr. Hechenbleikner responded that land transfers are executed by a vote of the Board of Selectmen (for tax title land) unless Town Meeting approval is required. Revenues: Mr. LeLacheur reviewed the Town's FYI 0 revenue in the restricted and unrestricted funds. Restricted funds are funds designated for specific purposes and can only be spent for those purposes. The restricted funds are shown on page 19 - 21 of the handout. Page 24 of the handout shows recent revenue and expense savings and efforts from the Town. Savings in expenses includes items such as sick leave buyback for employees, changes in the health insurance program, the energy performance contracting, and reduced sick leave. Recent revenue savings include the incentive payments from the smart growth zoning districts, a review of all Town fees and the local meals tax. Brainstorming Session: Mr. Dockser facilitated a brainstorming session where meeting participants provided revenue ideas in small groups. A letter on revenue ideas (community access sticker fee increase) to the FINCOM from Reading resident Dave Talbot was distributed. After each group shared their ideas for potential 2 Q revenue sources with the whole group, everyone voted on what was considered to be opportunity areas where the Town should focus their efforts. The items identified as the top priorities included the sale of Town owned land, billboards and advertising, renting space for cell towers and wireless communications, hiring a public relations or economic development officer, and naming rights. Ms. West described the next steps and explained that the Finance Committee would summarize the results of tonight's meeting. The next financial forum scheduled for October 27th will focus on expenses. On a motion by Mr. Berman, seconded by Mr. Greenfield, FINCOM voted to adiourn at 9:05 PM by a vote of 7-0-0. Respectfully submitted, Recording Secretary 3 OFRFgO Finance Committee Meeting October 13, 2010 CMG 6'9' IXCORQO~PO Conference Room, Town Hall The meeting convened at 7:30 PM in the Conference Room of Town Hall. FINCOM Members Present: Chair Marsie West, Mark Dockser, George Hines, Barry Berman, Kevin Leyne, Harold Torman, and David Greenfield. Members Absent: Francis Fardy and Bryan Walsh. Also Present: Town Manager Peter Heckenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Vinnie Cameron, RMLD General Manager, RMLD Board of Commissioners Chairman Mary Ellen O'Neil, residents Bill Brown and Gina Snyder, Matt Casey from the Reading Patch and Recording Secretary Abby McCabe. There being a quorum the Chair called the meeting to order at 7:31 PM. RMLD Presentation Reading Municipal Light Department General Manager, Vinnie Cameron, gave the annual presentation to the Finance Committee. The operating and capital budgets were explained. The monthly fuel charge is a significant part of the total revenue. The total operating revenue is approximately $86 million. The power costs is $27 million which includes all non-fuel public costs, maintenance costs are $2.5 million and the Town's payment is $1,320,000 as per the agreement with the RMLD and the four municipalities. Mr. Cameron reviewed other miscellaneous income items in the budget such as late payments and charges. Each year, approximately $2.2 million is paid to the Town and the net income for FY11 is $2.7 million. Mr. Berman asked if it was possible for other municipalities to join RMLD in the future. Mr. Cameron said that it was possible but is difficult. The projected revenue is shown as residential rates, commercial rates, school rates (the cost of service rates, not a discount), industrial rates, street lights, fuel revenue and energy conservation. Generally, RMLD looks at the annual budget revenues and then they review the expenses. Expenses: Mr. Cameron reviewed the actual revenues over the last several years until 2009 broken down by department. The capacity and transmission to different plants and companies is an expense shown in the budget. Mr. Greenfield asked about the wind levels in Reading. Mr. Cameron explained that there was a study down recently throughout the state and it found that Reading has very low wind levels. Mr. Berman asked if RMLD has a stabilization fund and Mr. Cameron answered that they do. RMLD has a rate stabilization fund of approximately $6 million and a fuel reserve charge of approximately $2.6 million. The capital budget includes construction system projects, upgrades, new customer services connections and routine construction which vary from year to year and is difficult to predict. This year's total 0 capital budget is $5.6 million but is usually closer to $4 million. This increase is due to the station upgrades and meter readings. The Town Manager explained that RMLD pays the Town in three ways; earnings distribution, 2% town sharing, and the RMLD employees are paid initially through the Town but then is reimbursed. Budget Planning The Chair distributed a handout that she created that summarized the budget in a manner that was clear and concise. Ms. West emphasized the importance of presenting a budget to Town Meeting that is easy to understand and not too detailed. Mr. Brown suggested providing pie charts and graphics to visually explain the budget to Town Meeting. There was a brief discussion on budget transparency and ideas to distribute the information to residents. *Mr. LeLacheur explained that the Town is in roughly the same place as last year at this time. The outcome of Question 3 on the November ballot will have an impact. A 0% operating (non- accommodated) budget or lower is recommended by FINCOM for FYI 2. Mr. Berman asked if there was a more accurate estimate on the revenue generated from the local meals tax. Mr. LeLacheur estimates it to be around $200,000. Financial Forums Mr. LeLacheur pointed out that the handout distributed to FINCOM members includes an email (on page 2) from a resident with two suggestions for revenue opportunities; a betterment charge for granite curbing and charging residents for road paving. The Town Manager explained that the Town can not legally charge the road improvement tax but the curbing betterment is a possibility. In the meeting handout there is a spreadsheet that includes the bucket list from the September financial forum on revenue opportunities. The Chair suggested that a member of the FINCOM should act as a point person for each revenue suggestion. Mr. Dockser recommended that the items be evaluated according to the votes received during the financial forum. FINCOM members would like to have staff or one of the committee members review each suggestion and provide a brief reason or statement that would explain if it was or wasn't feasible. Mr. Greenfield recommended that the columns entitled "Revenue and Implement Cost" should include a figure or range because high, medium and low doesn't mean the same thing for everyone. The Committee discussed who would be responsible for following up with each of the revenue suggestions. The Town Manager said he would assign specific departments to research the recommendations from the financial forum. Some of the recommendations such as naming rights were briefly discussed. The next financial forum is planned for Wednesday October 27 h beginning at 7:00 PM. The Committee discussed the logistics of the meeting and the role of the facilitator during the brainstorming session. Town Meeting Warrant Mr. LeLacheur reviewed and explained the backgrounds of the Subsequent Town Meeting warrant articles that the FINCOM needs to vote on. 2 0 Article 3: Capital Improvements Program (CIP) The Committee discussed the proposed amendments to the CIP. On a motion by Mr. Torman, by Mr. Berman, FINCOM voted 6-0-1 to approve Article 3 as written. (Mr. Leyne was absent for the vote.) Mr. Berman to prepare the Town Meeting report. Article 4: On a motion made by Mr. Dockser, seconded by Mr. Greenfield, FINCOM voted 7-0-0 to approve Article 4 as written. Mr. Greenfield to prepare the Town Meeting report. Article 5: Mr. LeLacheur explained the there was an accounting error in the engineering department when a bill was not paid because it was thought to be a duplicate. On a motion made by Mr. Hines seconded by Mr. Greenfield FINCOM voted 6-0-1 to approve payment for the unpaid bill in Article 5. Mr. Leyne was absent for the vote. Mr. Leyne to prepare the report. Article 6: This Article authorizes the Selectmen to sell, exchange or dispose of various items such as surplus vehicles. On a motion by Mr. TTorman, by Mr. Dockser FINCOM voted 7-0-0 to approve Article 6. Mr. Torman to prepare the report. Article 7: MWRA water main replacement on Haverhill Street and also includes redoing the street. On a motion by Mr. TTorman, by Mr. Berman, FINCOM voted 7-0-0 to recommend Article 7. Ms. West to- prepare the report. Article 8: This article is to submit a grant application for the library construction grant. The legislative body needs to authorize the grant application submission and does not commit the Town to accepting the grant. On a motion by Mr. Hines seconded by Mr. TTorman, voted 7-0-0 to approve Article 8. Mr. Fardy to prepare the report. Article 9: On a motion by Mr. Leyne seconded by Mr. Greenfield FINCOM voted 7-0-0 to approve Article 9. 9 Mr. Greenfiled to prepare the report. Article 11: Is a request to accept Benjamin Lane, Causeway Road and Kylie Drive as public ways. On a motion by Mr. Hines, seconded by Mr. Greenfield, FINCOM voted 7-0-0 to approve Benjamin Lane and Kylie Drive as public streets. On a motion by Mr. Hines, seconded by Mr. Leyne, FINCOM voted 7-0-0 to not take any action on the acceptance of Causeway Road until further information is available. Mr. Dockser to prepare the report. FINCOM Position on Question 3: The Chair recommended that the Committee discuss Question 3 at November's election and take a position and write an article in the local newspaper. FINCOM members discussed the possible impact to Reading on Question 3. Committee members expressed feelings that the proposal was too radical and would have a significant impact on Reading. On a motion by Mr. Greenfield, seconded by Mr. Dockser, FINCOM voted 7-0-0 to support a news article against Question 3. Ms. West will prepare the letter on behalf of FINCOM. Miscellaneous Page 35 of the meeting handout shows a break down of all the Town's expenses for the recent Special Election. The total cost of the special election was $15,994.16 and the unused balance was returned to free cash on June 30th Page 37-38 of the meeting handout shows the Town's extra revenue from the budgeted amount from 2005 to 2010. There is $21,139 of extra revenue from 2010. Page 39 of the meeting handout are the Committee's liaisons for other Town boards, commissions and committees. Since Mr. Hines is moving out of Town and will no longer be a Reading resident, FINCOM should assign a new liaison to the municipal building committee. The Chair suggested this be voted on at the next meeting on October 27th. Approval of August 4th and September 15th, 2010 Minutes Review and vote will take place at the next meeting on October 27th. Mr. Hines is moving out of Town and gave closing remarks on his time as a Reading resident and FINCOM member. On a motion by Mr. Berman, seconded by Mr. Leyne, FINCOM voted 7-0-0 to adjourn at 10:40 PM Respectfully submitted, Recording Secretary 4 O