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HomeMy WebLinkAbout1980-05-01 Adjourned Annual Town Meeting Minutes238 ADJOURNED ANNUAL TOWN MEETING Reading Memorial High School Auditorium May 1, 1980 The meeting was called to order by the Moderator, John W. Faria, at 8:00 P.M. The invocation was given by the Rev. E. Lewis MacLean of the Church of the Nazarene, followed by the Pledge of Allegiance to the Flag. ARTICLE 15 (168). On motion of Maureen T. O'Brien it was voted that the sum of Ninety -Eight Thousand Dollars ($98,000) be transferred from the Municipal Light Department Operating and Maintenance Account and that the sum of Three Hundred Twenty Thousand Dollars Two Hundred ($320,200) be raised from the tax levy and that said sums totalling Four Hundred Eighteen Thousand Two Hundred Dollars ($418,200) be appropriated for all insurance except Group Insurance for Town Employees, and that said sums to be expended by and under the Board of Selectmen. ARTICLE 15. On motion of Maureen T. O'Brien it was voted to lay Article 15 on the table. ARTICLE 23. On motion of Maureen T. O'Brien it was voted to take up Article 23 out of order. ARTICLE 23. Motion by Maureen T.O'Brien that the Town increase its proportionate share of payments for cost under Group Insurance by absorbing all future increase in costs until such time as the Town is paying 60% of the total yearly cost of such insurance, and thereafter shall pay a maximum of 60% of the total yearly cost, was voted in the negative. ARTICLE 15. On motion of Maureen T. O'Brien it was voted to take Article 15 from the table. ARTICLE 15 (169). On motion of Maureen T. O'Brien it was voted that the sum of Fifty -Two Thousand Nine Hundred Forty -Seven Dollars ($52,947) be transferred from the Municipal Light Operating and Maintenance Account, and that the sum of Four Thousand Five Hundred Ninety -Three Dollars ($4,593) be transferred from the Group Insurance Dividend Account and that the sum of Four Hundred Thirty -One Thousand Four Hundred Sixty -Five Dollars ($431,465) be raised from the tax levy and that said sums totalling Four Hundred Eighty -Nine Thousand Five Dollars ($489,005) be appropriated for group life insurance, group accidental health and dismemberment insurance for Town employees in accordance with Chapter 32B of the Massachusetts General Laws, and that said sum be under the direction of the Board of Selectmen. ARTICLE 15. On motion of Charles W. Hewitt it was voted to lay Article 15 on the table. ARTICLE 2. On motion of Charles W. Hewitt it was voted to take Article 2 from the table. ARTICLE 2. The following report was presented by Charles W. Hewitt, Chairman of the Committee to Review the Means of Funding the Contributory Retirement Fund. FINAL REPORT OF THE COMMITTEE TO REVIEW THE MEANS OF FUNDING THE CONTRIBUTORY RETIREMENT FUND At the adjourned Annual Town Meeting of June 14, 1979, it was voted that this committee be formed to review and report to the next Annual Town Meeting on the question of means for funding the Contributory Retirement Fund. Town Meeting voted this action after inconclusively debating whether or not to set aside a sum of several hundred thousand dollars for the purpose of funding future retirement pensions. The central question is whether the present method of funding Reading's Contributory Retirement fund is satisfactory or whether some other method should be adopted. The present method is called the "pay -as- you -go" method. Each year the tax levy is used to meet pension costs for that year. The Massachusetts Retirement Law Commission has endorsed the "funding" method as being preferable to "pay -as- you -go ". "Funding" calls for raising money in the year in which the right to receive payment is earned, and setting the money aside in a pension fund until the payment is due. The committee formed to study this question consisted of the Town Treasurer, a member of the Contributory Retirement Board, a member of the Municipal Light Board, and 23y Adjourned Annual Town Meeting May 1, 1980 three Town Meeting members. The committee examined the present condition of Reading's Contributory Retirement system, reviewed some studies pertaining to the question, and interviewed the State Commissioner of Insurance. Our findings and conclusions are as follows: 1. The Reading Contributory Retirement Fund, as set up, is sound. The Division of Insurance's audit for 1978 showed that Reading had nearly four million dollars in its contributory retirement fund and that income for the year exceeded disbursements by over four hundred thousand dollars. The examiner also noted Reading's investment ratio of 7.4% is excellent. An account for each retiree is maintained within this fund, earning 6.7% interest at present, a figure set by the State. The fund surplus is to be used for contingencies only. 2. Under Chapter 32, the State Retirement System sets the amount to be raised on each local tax levy for contributory retirement. They base their figures on the experience of the system. It has increased in recent years at a rate much greater than the tax levy as a whole. This growth has been due to an increase in the number of retirees, cost of living adjustments, and the fact that new retirees have much higher salary levels as they enter the pension system, and, therefore, higher pensions. If this trend continues, an excessive burden would be placed on Reading taxpayers in the future. There is evidence that Reading's recent experience does not indicate a trend. The total number of pensioners is expected to be fairly stable for the next few years. The number of new retirees will approximately balance those who pass away. There is an increased use of contracted services. There is also a tendency among employees leaving for other jobs to take their contributions out of the system. The Committee concludes that in the forseeable future the pay -as- you -go method will not result in a staggering burden on Reading taxpayers. We can, however, expect fairly large increases from year to year which will have the undesirable effect of destabilizing Reading's tax rate. The Committee also concludes that the pay -as- you -go method hides the true cost of adding employees to the work force and increasing salary levels, because the pension costs thereby obligated come due many years later. 3. In order to convert to a fully funded system, the Town would have to continue raising the pay -as- you -go amount, plus it would have to raise approximately fourteen percent of the Town payroll, to build up the retirement fund. The burden would be approximately twice what it is today, adding two to three dollars to our tax rate. The Committee concludes that conversion to a fully- funded system would create a major new burden on the tax rate for many years. 4. The current laws which control the Contributory Retirement system do not provide a clear path for converting from pay -as- you -go to a funded system. Although Chapter 559 allows towns to set aside funds to cover future pension obligations, it makes no provision for getting the money back out when the time comes to pay those obligations! Towns which set up such funds will not be able to use the funds until the General Court changes the law. The committee concludes that the legal framework does not exist for Reading to follow any but the present pay -as- you -go system. 5. The Committee found very little practical advice on how a funded system would actually work in a town. The underlying theory of funded pension systems is rather complex, and we were unable to see how the theory could be applied in Reading without resulting in an incomprehensible and expensive administrative system. The Committee concludes that more work needs to be done by experts in the retirement systems field in order to define a suitable administrative system to operate a funded retirement plan. Based on the preceding findings and conclusions, the Committee recommends the following actions: 1. That a copy of this report be sent to the Massachusetts Retirement Law Commission along with a request that the Commission submit legislation to expand Chapter 559 to permit towns to establish funded contributory retirement systems and to spell out specifics on the proper administration of such systems. Chapter 559 should be changed to provide for withdrawal of funds. 2. That a copy of this report be sent to Reading's representatives in the General Court along with instructions to support such legislation. 240 Adjourned Annual Town Meeting May 1, 1980 3. That Reading continue to fund its Contributory Retirement System using the pay - as- you -go method, refraining from setting aside funds for meeting future pension obligations until the Commonwealth passes suitable legislation. Respectfully submitted, Charles W. Hewitt, Chairman Elizabeth W. Klepeis, Secretary Allan E. Ames Julie A. Cosentino George R. Larson This report was accepted as a final report. ARTICLE 2. On motion of Maureen T. O'Brien it was voted to lay Article 2 on the table. ARTICLE 15. On motion of Maureen T. O'Brien it was voted to take Article 15 from the table. ARTICLE 15 (170). On motion of Marvin M. Rosenthal, as amended by Mary S. Ziegler, it was voted that the sum of One Hundred Ninety Thousand Four Hundred Eighty - One Dollars ($190,481) be transferred from the Municipal Light Department Operating and Maintenance Account and that the sum of Ninety -Seven Thousand Eight Hundred Twenty - Three Dollars ($97,823) be transferred from Receipts Reserved for Appropriation to Contributory Retirement and that the sum of Five Hundred Seventy -Seven Thousand Eight Hundred Forty -Seven Dollars ($577,847) be raised from the tax levy and that said sums totalling Eight Hundred Sixty -Six Thousand One Hundred Fifty -One Dollars ($866,151) be appropriated to Contributory Retirement System as itemized, in accordance with the provisions of Section 22, 7 of Chapter 32 of the Massachusetts General Laws. Pension Fund $848,693. Expense Fund 17,458. ARTICLE 15 (171). On motion of Marvin M. Rosenthal it was voted that the sum of Forty -Three Thousand One Hundred Sixty -Eight Dollars ($43,168) be transferred from the Municipal Light Department Operation and Maintenance Account and that the sum of One Hundred Five Thousand One Hundred Fifty -Five Dollars ($105,155) be raised from the tax levy and that said sums totalling One Hundred Forty -Eight Thousand Three Hundred Twenty - Three Dollars ($148,323) be appropriated for non - contributory pensions and annuities. ARTICLE 15 (172). On motion of Marvin M. Rosenthal it was voted that the sum of Thirty Thousand Dollars ($30,000) be raised from the tax levy and appropriated for unemployment benefits. ARTICLE 15 (173 -175). On motion of John W. Price it was voted that the sum of Six Hundred Seventeen Thousand Five hundred Seventy -Seven Dollars ($617,577) be transferred from Free Cash and that the sum of Fifty Thousand Five Hundred Ninety -Eight Dollars ($50,598) be transferred from Sale of Real Estate and that the sum of Ninety -Five Dollars ($95) be transferred from Board Premiums and that the sum of Sixteen Dollars ($16) be transferred from Anticipation Loans and that the sum of Nine Hundred Eighty -Five Thousand Two Hundred Seventy -One Dollars ($985,271) be raised from the tax levy and that said sums totalling One Million Six Hundred Fifty -Three Thousand Five Hundred Fifty -Seven Dollars ($1,653,557) be appropriated for maturing debt and interest as follows: Water Sewer Misc. B.P.W. Schools Anticipation Loans Principal Interest $ 90,000. $ 9,382. 530,000. 179,020. 90,000. 48,165. 455,000. 226,990. $25,000. ARTICLE 15 (176). On motion of Mary S. Ziegler it was voted that the sum of One Hundred Fifty Thousand Dollars ($150,000) be transferred from Overlay Reserve and that the sum of Fifty Thousand Dollars ($50,000) be raised from the tax levy and that said sums totalling Two Hundred Thousand Dollars ($200,000) be appropriated to the Reserve Fund for expenditures under the direction of the Finance Committee. ARTICLE 15. On motion of Maureen T. O'Brien it was voted to lay Article 15 on the table. 241 Adjourned Annual Town Meeting May 1, 1980 ARTICLE 16. On motion of Corliss T. VanHorn, as amended by Nils L. Nordberg, it was voted that the Town authorize the Board of Selectmen to petition and /or approve the filing of a petition to the General Court for a special act authorizing the Town, by by -law or otherwise, to insert in the warrant for all subsequent Town meetings all subjects; and insertion of which shall be requested of the Selectmen in writing by ten or more registered voters of the Town. ARTICLE 17. On motion of Maureen T. O'Brien it was voted that Article 17 be indefinitely postponed. ARTICLE 18. On motion of William C. Brown it was voted that Article 18 be indefinitely postponed. ARTICLE 19. On motion of Carl H. Amon, Jr. it was voted that the Board of Selectmen hereby be authorized on behalf of the town to sell or convey upon such terms and conditions as they may determine, and for an amount not less than $561.75, a certain strip or parcel of land located on the Southerly side of Federal Street shown as Lot No. 3 on Reading Assessors Plot No. 103 and described as follows: Beginning at a point on the Southerly side of Federal Street sixty -seven and forty -five one hundredth feet (67.45) Westerly from the common property line of Lot No. 4 owned by Joseph W. Martin, and Lot No. 5 owned or formerly owned jointly by Carroll E. and Esther L. McMillan. Then the line runs Southerly one hundred and twelve and thirty one hundredth feet (112.30') along the Westerly side of Lot No. 4. Thence turning 90 degrees the line runs Westerly along the Northerly line of Laurel Hill Cemetery for a distance of five feet (59. Thence turning 90 degrees the line runs Northerly along the property line of Lot No. 2 owned or formerly owned by Stephen L. Dodge for a distance of one hundred and twelve and forty one hundredth feet (112.409. Thence turning Easterly along the Southern line of Federal Street for a distance of five feet (59 to the point of beginning. saw The described area contains five hundred sixty -one and seventy -five one hundredth square feet (561.75) more or less, and is recorded on Page No. 323, Book No. 2468, at the Registry of Deeds, Middlesex County or take any other action with respect thereto. The motion was passed by a vote of 128 in the affirmative, 0 in the negative. ARTICLE 20. On motion of John H. Crooker it was voted that the subject matter of Article 20 be referred to the Municipal Light Board, and that said Board be, and hereby is, authorized to install such additional street lights as in its judgement are required, and to make such changes in the size, type and location of existing street lights, as it may deem advisable, the expense of the same to be paid from the income of the plant. On motion of Robert I. Nordstrand it was voted that Article 22 be taken up out of order. ARTICLE 22. Motion by Robert I. Nordstrand that the Town authorize the Board of Assessors to contract with a private outside firm to conduct a Town -wide revaluation of all real estate, personal property and utilities in the Town as mandated by the Courts and being enforced by the Massachusetts Department of Revenue and that the sum of Two Hundred Fifty -Seven Thousand Dollars ($257,000) be raised from the tax levy and appropriated for such revaluation, and for the costs and expenses necessary for supervision of said revaluation, as follows, each item being considered a separate appropriation. And in accordance with Article XVI, Section 8 of the By -Laws of the Town and General Laws Chapter 268A, Section 21A, the Town authorize that any member or members of the Board r... of Assessors may be appointed by said Board to perform the supervisory work and receive remuneration for the same, was voted in the negative. Contract cost $250,000. Supervisory costs and expenses 7,000. ,ARTICLE 21. Motion by Robert I. Nordstrand that the Town raise from the tax rate and appropriate the sum of One Thousand Seven Hundred Fifty Dollars ($1,750) for the purpose of publishing for general circulation, its January 1, 1980 valuation list for Real Estate, in compliance with Article XIII, Section 4 of the Town By -Laws, said sum to be spent under the direction of the Board of Assessors, was voted in the negative. 242 Adjourned Annual Town Meeting ARTICLE 24. On motion of John W. Price Five Hundred Fifty Dollars ($10,550) be raised purchase of uniforms for the Police Department. May 1, 1980 it was voted that the sum of Ten Thousand from the tax levy and appropriated for the ARTICLE 25. On motion of John W. Price it was voted that the sum of Five Thousand Six Hundred Dollars ($5,600) be raised from the tax levy and appropriated for the purchase of uniforms for members of the Fire Department. ARTICLE 26. On motion of John W. Price it was voted that the sum of Seven Hundred Fif ty Dollars ($750) be raised from the tax levy and appropriated for the purchase of protective clothing for members of the Auxiliary Fire Service. On motion of John W. Price it was voted that this meeting stand adjourned to meet at 8:00 P.M. on Monday, May 5, 1980 in the Reading Memorial High School Auditorium. Meeting adjourned at 11:00 P.M. 14$ Town Meeting members were present. A true copy. Attest: Lawrence Drew Town Clerk ADJOURNED ANNUAL TOWN MEETING Reading Memorial High School Auditorium May 5, 1980 The meeting was called to order by the Moderator, John W. Faria, at 8:00 P.M. The invocation was given by the Rev. P. Dale Neufer of the Old South United Methodist Church, followed by the Pledge of Allegiance to the Flag. ARTICLE 27. On motion of Maureen T. O'Brien, as amended by Marvin M. Rosenthal, it was voted that the sum of Twenty -Nine Thousand Nine Hundred Ninety -Six Dollars ($29,996) be transferred from Receipts Reserved for appropriation, and that the sum of Seventy Thousand Four Dollars ($70,004) be raised from the tax levy, and that said sums totalling One Hundred Thousand Dollars ($100,000) be appropriated for the purchase or lease purchase of a new pumper for the Fire Department. ARTICLE 28. On motion of John W. Price it was voted that the Town authorize the Board of Selectmen to sell, or exchange or dispose of, upon such terms and conditions as the Selectmen may determine, one one -half ton pick -up truck in the use of the Fire Department and that the sum of Nine Thousand Dollars ($9,000) be raised from the tax levy and appropriated for the purchase or lease purchase of one four wheel drive, one ton pick -up truck for the Fire Department. ARTICLE 29. On motion of Maureen T. O'Brien it was voted that the Town authorize the Selectmen to sell, or exchange or dispose of, upon such terms and conditions as they determine, three cars in the use of the Police Department, and that the sum of Twenty -Four Thousand Dollars ($24,000) be raised from the tax levy and appropriated for the purpose of purchasing three new cars for the Police Department. ARTICLE 30. On motion of Marvin M. Rosenthal it was voted that Article 30 be indefinitely postponed. ARTICLE 31. On motion of Marvin M. Rosenthal, as amended by Mary S. Ziegler, it was voted that the sum of Twenty Thousand Dollars ($20,000) be raised from the tax levy and appropriated for the purpose of making improvements to increase the energy efficiency of those Town Buildings under the supervision of the Building Maintenance Department. On motion of Maureen T. O'Brien it was voted to take up Article 36 in advance. ARTICLE 36. On motion of Marvin M. Rosenthal it was voted that the sum of Five Hundred Dollars ($500) be raised from the tax levy and appropriated for Christmas Lighting.