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Home My WebLink About2013-01-15 Board of Selectmen Handout35 Lincoln Street Reading, MA 01867 January 9, 2013 Selectman James E. Bonazoli Selectman John Arena Selectman Richard W. Schubert Selectman Stephen Goldy Selectman Ben Tafoya Town of Reading Reading, MA 01867 Dear Selectmen: I was very dismayed to come home late from work and see that the Town Manager and Selectmen were discussing new requirements for the Class 2 and Class 3 used car licensees. I checked the Daily Times Chronicle for upcoming Selectmen meetings and seeing nothing regarding used car licenses, I even logged on the Town website. Again, I saw no definitive topic on the agenda relating to used car dealers. A month or so ago, I wrote a letter to the Selectmen and followed up by talking in person to them at a previous meeting which I was assured we would communicate about this in the future. Considering this is of utmost importance to me, and my fellow business owners, I would have thought there would have been some notice. It is bad enough the previous requirements that Peter Hechenbleikner had asked for, but to ask now for fingerprinting to be done to a long time business man of 33 years in Reading is definitely going over the top. I have checked other surrounding towns and not found the same treatment to used car dealers. Consistency and time is a good gauge to judge the small business owners. I look forward to more meaningful discussions in the future and I would appreciate better notice from Town Hall so that I could be part of any discussions regarding used car licenses. Here are my work and my cell phone numbers. I would sincerely like to talk to you on the phone, if not in person, before the next meeting. Please feel free to call me at any time. If I am not available when you call, I will be sure to get back to you immediately. Thank you for your time and consideration. Business Phone. 781.944.7117 Cell Phone: 617.347.5503 Very truly yours, Kevin M. Brown Brown's Auto ,CSy %1!1CORp�w^ Town of Reading Board of Selectmen Januat�l 15 & 22, 2013 Municipal Government FY14 Budget Board of Selectmen January 15, 2013 Town Manager's Budget - Summary • Revenues — New growth at recent levels — State aid level funded — $1 million in Free Cash used • Expenses — Municipal Budget — Very few changes from FY13 — Current level and quality of services • Investment - Roads funded at $1.4 million (including Ch. 90) — Continued investment in OPEB Board of Selectmen January 15, 2013 Budget Summary: Scenarios Level Service $ 16,251,118 Initial Target Oct 2012 .16,027,376 -1.4% (223,742) New Target Dec 2012 $ 16s1031995 -0.9% (147$123) Town Manager Budget 16,102,812 -0.90Y (1487306) -A Note: FY13 Operating budget is $15.6 million Board of Selectmen January 15, 2013 Reasons for Improved Operating Budget Target Small Increase in Revenues +$73k ( +$24k for Town's share) +$ 93,000 New Growth for FY13 -$ 50,000 New Growth for FY14 +$ 35,000 Meals tax -$ 5,000 Other • Accommodated Costs -$121 k ( +$40k for Town's share) -$ 40,000 Rubbish (lower volume) +$ 6,000 Cemetery expenses -$ 87,082 School Accommodated costs Board of Selectmen January 15, 2013 FY14 Revenues (Projected in millions) Pages 8 -10; *State Aid projected as flat - more will reduce use of Free Cash FY13 FY14 Change Prop. Taxes $54.48 $55.83 +$1.35 Local Revs. $ 5.38 $ 5.63 +$ .25 Intergov't* $12.96 $13.00 +$ .04 Trf & Ava i I $ 4.40 $ 4.85 +$ .45 SUB -TOTAL $77.22 $79.31 +$2.09 ( +2.7 %) Reserves $ 0.72 $ 1.00 +$ .28 TOTAL $77.94 $80.31 + $ 2.37 ( +3.0 %) Pages 8 -10; *State Aid projected as flat - more will reduce use of Free Cash Ar Board of Selectmen January 15, 2013 Reserves as of January 2013 Free Cash 6/30/12 $ 61537,985 • November Town Meeting - $ 311733 • January Town Meeting -$ 138,500 • General Stabilization Fund + $11545,414* • FINCOM Reserves +$ 143,000 = TOTAL RESERVES $ 81056,166 is 10% of estimated $77 million FY14 net available revenue and $4 million above FINCOM minimum 5% level. *total excludes funds designated for specific purpose �4 Board of Selectmen January 15, 2013 Employee Benefits +6.0% • Health Insurance: Renewal rates due mid February 2013 after 0% change last year (budget assumes +8% premiums) • OPEB: $453,600 contribution included in this budget also serves as a 5% cushion against health insurance premium increases above +8% • FY13 actual health insurance expenses running below budget — Enrollment unchanged (Town -1%; Schools +1%) — Trial opt -out program: 9 participants net savings of $62,806 • Lower health insurance costs will reduce the use of Free Cash • Pension: Funding up 3.2% ( +4.5% assessment but other costs lower) • Other: very small changes combined Pages 11 -12; 15 -16 Board of Selectmen January 15, 2013 Capital $2.15 million +7.3% • Increased funding to Roads: $729k plus $600k from Ch. 90; $118k for sidewalks; using $257k from Smart Growth fund; • DPW $410k for various vehicles & minor paving; • Recreation: $298k for Hunt Park playground and Washington Park basketball & tennis courts; • Public Safety: $136k for firefighter, turnout gear; $20k for fire hoses; $25k for replacement ACO /PEO vehicle; $30k for DVR'technology; • Finance: $60k for share of regional CIC GIS flyover project; $60k for network infrastructure upgrade for regionalization capabilities; • Performance Contracting and Green Repair projects reduced Facilities capital requests to $112k (Town) and $130k (Schools). Capital + Debt at 5.5% of NAR is above the FINCOM baseline target Pages 12 -14; 17 -28 I% w Board of Selectmen January 15, 2013 Debt $4.38 million -3.5% • Existing debt service declines by almost $500k due to refinancing; • $450k of debt fully repaid includes Financial systems; Fire engine; Bancroft Ave tennis courts; Parker Middle School turf field; Birch Meadow Elementary school repairs; • Cemetery garage (in design phase) is budgeted at $400k in debt service for FY14; DPW yard project is next; • Library ($9.4mil), Killam Elementary($3mil), Pre -K/K school space needs ( ?) and Downtown Phase II($5.4mil less grants) voiects are expected to be future debt exclusions per FINCOM policy; Other • Vocational education projected as steady enrollment; • State assessments unknown, forecast +5 %. Pages 12 -14; 17 -28 Board of Selectmen January 15, 2013 FY14 Municipal Gov't Dept. Operating Budgets FYI 3 FYI 4 Town Admin -3"' " 7--'8'-','6 2 9 1 $ 3- 9'2- 7 3 -0 3.7%, ' Accounting 160,809 $ 160,430 -0.2% Finance $ 11642,383 1 1,669,000 1 1.6% 'Comm Services '�ibrary i Public Works- $ 9141832 $ 931,725 $ 1,290,579 Police 1,324,442 $ 2,690,88491 $ 2,773,685 1.8% 2.6% 3.1% Public Safety $ 8,558,727 $ 8,850,800 1 3.4% Police $ 4.12230080 4,347,222 2.9% Fire $ 3,909,707 4,071;852 4.1% Dispatch' $ 425,940 431,726 1.4% Gross Operating 169636,848 $ 16;1021812 3.0% ,j Pages 32-33 1. Board of Selectmen January 15, 2013 FY14 Municipal Gov't Dept. T_ Budgets _- $ 742,730 , -2.5 % $ 1607430 0.2% $ 196691000 0.7% 4 4 $ 11181,725 1.5% �$ �113247442 1.8% o� $ 51567,054 2.1 /o $ 81850,800 ' 3.2% F $ 41347,222 2.5% $ 4,071,852 4.1% $ 431,726 1.4% $19,496,181 2.2% $ 1507000 0.0% FYI :Town Admin $ 7611629 ,Accounting $ 1601809 Finance $ 176.571383 Comm Services $ 111641832 Library � $ 1,3001529 Public Works $ 51452,747 Public Safety $ 81575,477 Police $ 4,239,830 Fire $ 3,909,707 Dispatch ! $ 425,940 Gro ss Operating L�.I 9,073,4Q6 FINCOM Res. : $ 1501 000 _- $ 742,730 , -2.5 % $ 1607430 0.2% $ 196691000 0.7% 4 4 $ 11181,725 1.5% �$ �113247442 1.8% o� $ 51567,054 2.1 /o $ 81850,800 ' 3.2% F $ 41347,222 2.5% $ 4,071,852 4.1% $ 431,726 1.4% $19,496,181 2.2% $ 1507000 0.0% �. Board of Selectmen January 15, 2013 Municipal Gov't Employment (Full Time Equivalents) f FY09 FY10 FY11 FY12 FY13 = FY14 6-year TOWN ADMIN 2.5 2.4 .COMM SERVICES ; 19.2; 1 7.5 16.9 15.0 15.0 15.0 - 14,3% ACCOUNTING ' 2.5 2.5 2.5 2.5 2.5i 2.4 -4.0% FINANCE 18.3 3 19.63 19.6 _ 19.0 18.5 � 18 5 o -5.6 /o' PUBLIC SAFETY . 101.8.; 101.8' 101.8 101.4 104.5; 104 5 2.7% PUBLIC WORKS 43 5. 43.0, 43.0} 42.0; _ 42.0: 42 0 -2.3% LIBRARY 19.7 19.7` 19.719.7 19.7 19.7' 0,0 °l0' TOTAL 207.5' 206.5 205.9 201.9 204.5; 204.4' -1.0% 1.4 %! -0.6% -0.3% -1.9% 1.3 %} -0.1%r k a., Board of Selectmen January 15, 2013 Department Review: Administration • All non -union employees receive 2% step if eligible .plus 1% COLA • No change in staffing • Increased OT due to meeting minutes • Centralized lease costs for document storage • Increased postage due to rate increase • P &C Insurance estimated +5% Pages 34 -36 Board of Selectmen January 15, 2013 Department Review: Accounting • All non -union employees receive 2% step if eligible plus 1% COLA • Reduce Assistant Accountant by 0.1 FTE — now stipend • Eliminate overlap funds for Town Accountant • Increase professional development for new Town Accountant Pages 37-38 4 Board of Selectmen January 15, 2013. Department Review: Finance • All non -union employees receive 2% step if eligible plus 1 %o COLA • Reduce shared Appraiser position by 0.5 FTE; • Restore part -time clerical position to full -time to help cover Assessing office hours and increased Human Resources demands • Reduce Elections wages due to less scheduled elections • Reduce HR Town Manager replacement expenses • Centralized Town wireless expenses • Increased postage and professional development for technology offset by other reductions Pages 39 -48 'r •r Board of Selectmen January 15, 2013 Department Review: Finance /Board of Assessors • `Regionalization' with Wakefield • June 2012 — signed an agreement to share Appraiser through December 2013 because of a vacancy in Reading, an upcoming software conversion in M 3 & revaluation in M 4 Reading experience thus far has been very successful! — Software conversion and one set of inspections complete — Work begun on FY14 revaluation — Good progress on settling long- standing commercial abatement requests Clearer planning aspect to cyclical work of Assessors Reading and Wakefield Boards of Assessors, Town management and staff work towards formal regionalization after December 2013 • Consider adding additional community(ies) Pages 39 -48 Board of Selectmen January 15, 2013 Department Review: Finance /Board of Assessors • I nsaections Droiects • $157,400 funded from FY12 budget plus June 2012 BOS /FINCOM • Two RFPs result in Finnegan (field review) & Patriot (full review) • Field review (for software conversion) completed September 2012, in time for tax rate process - with excellent staff help • Full review begins January 2013 — expect completion April 2013 in time for FY14 revaluation • Expect budget surplus as high as $35,000 Pages 39 -48 S Board of Selectmen January 15, 2013 Department Review: Finance /Board of Assessors Software conversion project • $75,000 funded in November 2009 • Conversion completed October 2012 DOR accepts Patriot's AssessPro values December 2012 Expect budget surplus of about $10,000 — $26,000 AssessPro (complete except GIS module) — $39,000 Hardware & other s/w licenses (complete except tablets) — Surplus to be released (November 2013 TM) if not needed for linkage with Laserfiche document storage or ViewPermit software systems Pages 39 -48 Board of Selectmen January 1,5, 2013 Department Review: Finance /Board of Assessors • Operating budget 9 -yr inspection cycle; 3 -yr revaluation cycle • Fund all revaluation expenses a year in advance • Surplus from Inspections project needed for FY14 reval work now • Outsource revaluation work every three years — Cost $65,000: we can use Patriot as a customer for $40,000 and existing staff will complete the remainder of the work • Outsource personal property annually— amount varies within cycle — Annual cost $6,500 for data listing; results pay for themselves in new growth — Revaluation cost is $22,500: we can save $10,000 by combining work by vendor RRC and staff; goal here is new growth plus Revaluation certification Pages 39 -48 4 Board of Selectmen January 15, 2013 Department Review: Community Services • All non -union employees receive 2% step if eligible plus 1 % COLA • No significant change in staffing • Regional Health division with Melrose & Wakefield • Regional Veterans District with Melrose, Saugus & Wakefield • Lower wage costs — Inspections revolving fund used as offset for a portion of backup building inspector's hours Late request for FY14 budget: Health expenses: $36,268 for mosquito control (funding was proposed at $30,000). Additional cost because DPW staff should no longer perform some of the tasks. Pages 49 -57