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Home My WebLink About2011-11-14 Finance Committee Packet`rT�P Projected Reserves Status 5% of FY10 net available revenue TARGET $ 3,504,000 - 'Fuse Lash' after November Town Maistisg § 5,312,000 • FY10 budget (proposed -Art. 5) $ (1991864) FY11 budget (proposed - Art.11) f ( 25,000) • FY11 budget (proposed - Art.12) S (936,000) • FYI1 tiodact bropsessl - Art 141 S (350.000) Adjusted Fns Lash' $ 3,801,136 Stabilization Funds $ 1,415,000 8r 1 $1,390,000 Torn buyback $ 25,000 Snsr•r Grwrh $ 7A0 APO Macau Comm(ttee R .— S 105.870 Total reserves projected at 7.6% $ 5,322,006 Surplus versa 5 % minimum target $ 1,818,006 • Ha fN wn rapsna•atim is pravnW e "TT FINCOM Reserves Policy • The Finance Committee (FINCOM) of the Town of Reading hereby establishes and adopts a Policy, establishing a minimum target for cash reserves of 5% of Net Available Revenue (as defined below). Further, the FINCOM recognizes that circumstances may occur which would require the FINCOM to raise or lower this minimum from time to time. The FINCOM recognizes that the financial health of the Town of Reading is of paramount importance to its residents who receive essential services; to its bondholders who provide funding for long -term Town projects; to its vendors who provide services and equipment to the Town; and to its current and retired employees. This Policy on Cash Reserves is designed to protect the community from sudden and unexpected changes in revenues or expenses ... Online full text: Projected Reserves Status Sale of Real Estate Sole of Rod Estate ; 1,379,287 • FYIO budget (proposed -Art. 5) f ( 85.000) FY31 WOW brraa —A - Art 12) S (300.000) Balance after 2010 Annual Town A1sst(ng $994,287 Projected use to offset Capital expenses: FY12 $275k FY13 $250k FY14 $200k FY15 $150k FY16 $100k FY17 $ 50k (additional interest will be earned) 1 November 2011 Town Meeting Proposed Uses of Funds for FY12 $231,000 additional neighborhood road projects $ 55,000 West Street to 100% design $ 50,000 additional pedestrian safety (curbs /sidewalks) $ 50,000 for Town facilities — Police electrical panel /flooding $ 50,000 for School Facilities — identify early childhood space needs $ 24,000 for School Facilities — Birchmeadow flooring is failing due to old steam leaks that have been corrected $ 10,000 for local share of $50,000 improvement to dispatch technology ($40,000 paid for by a grant) $ 59,000 to replenish FINCOM reserve fund (RMHS Memorial wall) 50,000 transfer to Affordable Housing Trust Fund $579,000 total requests November 2011 Town Meeting Sources of Funds for FY12 $ 55,470.89 from Article 4 (surplus debt sold from other projects — this will be used to offset the $55,000 West Street design in the motion) $200,000 in one -time surplus State Aid $100,000 increase in ongoing FY12 revenue base +$ 50,000 in Meals Tax (to $200,000 /yr) +$200,000 in excise tax (to $2.7 million /year) - $150,000 in Investment Income (to $250,000 /year) 50,000 decrease in ongoing FY12 expense base for Street Lights $350,000 for $524,000 in remaining Requests $174, 000 balance to come from Smart Growth funds RECREATION CAPITAL BONDED PROJECTS REVENUES Bonds State Grant Earmarks Donations Free Cash TOTAL Revenues EXPENDITURES Old Software System New Software System Tennis Courts Turf Field 485,000 375,000 50,000 200,000 50,000 86,350 585,000 661,350 380,136 0 197,066 615,141 TOTAL Expenditures 577,202 615,141 Unspent Surplus 7,798 46,209 LeLacheur, Bob From: Heffernan, Nancy Sent: Thursday, September 30, 2010 10:26 AM To: LeLacheur, Bob Subject: RE: Debt Follow Up Flag: Follow up Flag Status: Completed rage I of L Authorized and Unissued Debt - Issued Date of Article Amount - Retired = Unissued Purpose Vote Number Authorized - Rescined 6/30/2010 Memorial High School 11/13/06 10 1,532,000.00 1,532,000.00 0.00 MWRA - Surface drains 04/26/07 17 380,000.00 380,000.00 .00 Turf Field Im rovements 04/26/07 22 650,000.00 375,000.00 < 275,000.00 65,000.00 Sewer Mains 04/26/07 23 365,000.00 300,000.00 Birch Meadow Tennis Courts 11/13/07 9 275,000.00 135,000.00 140,000.00 Ladder Truck 11/13/07 10 850,000.00 800,000.00 50,000.00 Energy Im rovements 11/10/08 9 120,000.00 120,000.00 0.00 Fire Engine 11/10/08 11 525,000.00 525,000.00 0.00 Energy & Water Conservation 04/27/09 15 5,000,000.00 5,000,000.00 0.00 MWRA - Surface drains 11/09/09 9 404,000.00 0.00 404,000.00 0.00 0.00 $934,000.00 SUB - TOTAL from additional sheet(s) 1 $0.00 TOTAL Authorized and Unissued Debt 1 $934,000.00 Here's what we have as authorized /unissued. I know the MWRA is going to be issued at some point since it's interest free, but I don't know the status of the other projects. Nancy J. Heffernan Town of Reading Treasurer /Collector 16 Lowell St Reading MA 01867 (781) 942 -6634 Fax: (781) 942 -9037 Please note new Town Hall Hours Effective June 7, 2010 Monday Wednesday Thursday - 7:30 am to 5:30 pm Tuesday - 7:30 am to 7 pm Friday - CLOSED Please let us know how we are doing - fill out our brief customer service survey at hftp:/Ireadingma- survey.virtv.iltownhall.net/survev/sid/91 b54a9276d612c7/ o/I)n11)1)1 1 Town of Reading, Massachusetts Travel Reimbursement Form purpose of Travel: Inspection for the town account # 11415571- 571000 Point to Point Total Description of Cost of Date Travel Description Mileage Itemized Expenses Expenses 3/17/2011 Inspections Throughout Town 8.0 Mileage 3/21/2011 Inspections Throughout Town 7.0 Mileage 3/2212011 Inspections Throughout Town 10.0 Mileage 3/29/2011 Inspections Throughout Town 5.0 Mileage 3/30/2011 Inspections Throughout Town 7.0 Milea 6 4/4/2011 Inspections Throughout Town 3.0 Mileage 4/5/2011 Inspections Throughout Town 4.0 Mileage 4'14/2011 Inspections Throughout Town 11.0 Mileage 4/19/2011 Inspections Throughout Town 6.0 Mileage 5/10/2011 Inspections Throughout Town 7.0 Mileage 5/16/2011 Inspections Throughout Town 4.0 Mileage 5/24/2011 Inspections Throughout Town 15.0 Mileage 5/26/2011 Inspections Throughout Town 13.0 Mil lea e 6/1/2011 Inspections Throughout Town 13.0 Mileage 6/2/2011 Inspections Throughout Town 15.0 Mileage 6/7/2011 Inspections Throughout Town 12.0 Mileage 6/8/2011 Inspections Throughout Town 10.0 Mileage 6/13/2011 Inspection Throughout Town 15.0 Mileage 6/14/2011 Inspections Throughout Town 13.0 Mileage 6/15/2011 Inspections Throughout Town 10.0 Mileage 6/16/2011 Inspections Throughout Town 9.0 Mileage 6/20/2011 Inspections Throughout Town 15.0 Mileage 6/21/2011 Inspections Throughout Town 7.0 Mileage 6/22/2011 Inspections Throughout Town 7.0 Mileage 6/23/2011 Inspections Throughout Town 12.0 Mileage Total Mileage 238.0 Total Other Expenses (Invoices Attached) 0.00 51.0 Cents per mile 121.38 Total Travel Reimbursement 121.38 account # 11415571-571000 Charge Account #: Prof Dev 0.0 Travel 121.4 1 hereby certify under the pains and penalties of perjury that, to the best of my knowledge, the above information is accurate and connected to Town business. �" pl� ('� Signature of Traveler Signature of supervisor Bob LeLacheur A ITown of Reading I One Year Revenues • Details Actual Changes Current No. 10/11111 5:40 PM FY • 2011 FY • 2011 Y - 2012 Property Taxes Tax levy (within levy limit) I 49274826 3.7% 50878534 New Growth 362768 - 34.4% 250000 Tax levy (debt exclusion) 2,086,657 -1.0% 2,059,719 Abatements and exemptions - 526683 - 17.5% - 539850 Al A; Ai A, One Year 3.0% One Year Changes Projected Changes FY - 20 Y - 2013 FY - 2013 3.3% 52406747 3.0% - 31.1% 250000 0.0% -1.3% 2,030,650 -1.4% 2 5% - 553346 2.5% I One Year Projected Changes FY -2014 1 FY -2014 53973166 3.0% 250000 0.0% 2,001,300 -1.4% - 567180 2.5% Total Property Taxes 51197568 3.3% 52648403 2.8%1 54134051 2.8% 55657286 2.8% Other Local Revenues Motor Vehicle Excise 2936623 17.5% 2700000 -8.1% 2800000 3.7% 2800000 0.0% Meals Tax 172770 2- •Z669- 30.2% 225000 0.0% 225000 0.0% Penalties /interest on taxes 192636 10.5% 145000 - 24.7% 175000 20.7% 175000 0.0% Payments in lieu of taxes 327291 12.9% 315000 -3.8% 325000 3.2% 325000 0.0% Charges for services 1502913 -3.3% 1475000 -1.9% 1475000 0.0% 1475000 0.0% Licenses & permits 156138 19.0% 156000 -0.1% 135000 - 13.5% 135000 0.0% Special Assessments 1543 -51.0% 10000 548.1% 10000 0.0% 10000 0.0% Fines 111590 - 29.1% 130000 16.5% 110000 - 15.4% 110000 0.0% Interest Earnings 355700 - 40.7% 200000 - 43.8% 225000 12.5% 225000 0.0% Medicaid Reimbursement 112468 - 71.9% 70000 - 37.8% 100000 42.9% 100000 0.0% Other 381722 Total Other Local Revenues 6251394 7.6%1 5426000 -13.2%1 5580000 2.8%1 5580000 0.0% Intergovernmental Revenue State Aid 12462792 2.3% 12307474 -1.2% 12300000 -0.1% 12300000 0.0% ONE TIME State or Fed Aid 350000 -58.5% 198264 - 100.0% 0 0.0% 0 100.0% MSBA 462,036 0.0% 462,036 0.0% 462036 0.0% 462036 0.0% Other state aid -Supplemental Aid Totallntergovt Revenues 13274828 -1.5%1 12967774 -2.3%1 12762036 -1.6%1 12762036 0.0% Operating Transfers and Available Funds 25000 0.0% 25000 0.0% 25000 0.0% 25000 0.0% Cemetery sale of lots Sale of real estate funds 300000 -7.7% 300000 0.0% 250000 - 16.7% 250001 0.0% Reading Ice Arena Authority 95000 100.0% 100000 5.3% 100000 0.0% 100000 0.0% MSBA payments 696990 11.3% 720070 3.3% 150 3.2% 770844 3.7% RMLD earnings distribution 2171880 -0.7% 2205957 1.6% 22 _ ----- -1A°la Enterprise Fund Support 756069 0.0% 756069 0.0% Sick buy -back Stabilization 19615 0 - 100.0% 0 Overlay surplus 204827 -47.5% 0 - 100.0% 150000 150000 0.0% Medicare D Reimbursement Developer Mitigation Total Transfers & Available 4269381 -0.9%1 4107096 -3.8% 4259167 3.70% 4309142 1.2% Certified Free Cash Stabilization Fund A5 Free Cash & Savings 74993171 75149273 1490000 F 863309 1490000 1 863309 76735254 1 �7 78308464 / f 1. 1,585,981 1�� / -Sy 7�j a I l ( C_ 0 L 01 0 REVENUES 76483171 4.25°% 76012582 •0.62% 76735254 72Z672 I 0 0.95% 78308464 2.05°% Town of Reading RESERVES at June 30. 2011 2010 Sale of Real Estate (at June 30 with next FY commitment) 994,287 Stabilization Funds Smarigrowth Incentive Payment 700,000 Employee Buy -backs 25,035 General 1,524,831 Certified "free cash' July 1, 2009 and FY2010 5,189,292 Free Cash Used for FY2011 and FY2012 operations (1,199,827) 3,989,465 '*Reserves available for 5% Fincom Policy 5% of FYI Net Available Revenue Historic. Regeneration of reserves Revenues: Variance from original budget Property taxes: Motor Vehicle Excise taxes (Weals Tax Mnalties and interest on taxes Payments in lieu of taxes Charges for services Licenses and permits Intergovernmental (includes State Aid & Medicaid Reimb) Special assessments Fines Investment Income Other Total revenue variance from budgeted amount 2011 704,822 700,000 5,488 1,539,334- 4,953,340 (1,482,309) 3,471,031 5,010,365- 3,617,713 1,392,652 2006 2007 2008 2009 2010 201 232,242 452,017 331,359 669,720 262,633 141,899 35,294 - 43,330 - 78,255 - 149,039 82,330 485,623 legal settlements, reimbursement of prior year expenditures 32,770 -4,866 7,489 22,443 26,454 - 49,528, 47,636 25,886 22,646 40,169 38,565 23,270 12,291 13,227 347,376 - 119,217 37,838 - 94,337 61,721 68,289 4,942 19,207 68,156 25,594 138 246,006 650,035 276,926 - 594,392 - 315,500 89,716 -1,346 53 -2,682 -2,376 -252 -1,457 - 35,752 8,440 1,272 - 18,108 - 40,297 - 18,410 935,302 1,263,497 1,007,946 - 95,185 - 59,403 - 29,728 14,066 73,284 206,218 64,436 107,877. 303,377 1,528,350 2,776,565 1705,386 46,069 - 57,613 1,126,576 Property taxes: Property Taxes collected will be more than budgeted because of our conservative estimates in the growth on new taxable properties Motor Vehicle Excise taxes MV Excise was at 2.9 million for 5 years then dropped to 2.7 million in 2009 and 2.5 millon in 2010 Back up to 2.9 in 2011 Meals Tax 8 months est at 140k Adtual was 172 Penalties and interest on taxes Penalties and interest are dependant on who decides to pay off old tax liabilities and therefore, very unpredictable. Charges for services Charges for services include Permits from the inspection department which are dependant on economic conditions Intergovernmental (includes State Aid & Medicaid Relmb) State Aid is not known during the budget development. 2009 had 9c Cuts (Mid year cuts made by Gvnrs office.) Investment income Interest rates for this 5 year period went from 6% to less than 1 %. We earn interest on money we borrow for projects (eg High School Const, Energy Improvements) We do not include interest on borrowed funds when budgeting revenues because it is not sustainable Other Other income includes one -time, unanticipated, non - recurring, inconsistant revenues. Insurance Dividends, MIIA rewards, legal settlements, reimbursement of prior year expenditures t♦ %J Budget to actual variances REGENERATION FY11 Expenditures: Variance from original budget General government Public safety Education Public works and facilities Human services Culture and recreation Employee benefits Intergovernmental Debt service Total expenditure variance from budget amount 2006 2007 2008 2009 2010 2011 58,506 46,569 150,011 200,599 221,803 182,290 32,796 68,518 162,442 104,639 117,993 66,062 51,893 46,884 99,145 213,378 286,158 77,137 119,164 100,117 137,804 143,191 189,609 246,162.0- -3,605 -1,949 18,356 3,216 27,353 21,062 5 7,353 7,334 47,342 23,654 12,303 54,373 42,723 125,138 1,119,740 214,982 180,834 t/ - 33,056 5,476 -957 -6,027 50,717 - 26,494 9 875 - 11893 56,982. 19,844 4,558 280,085 316,566 697,380 1,883,060 1,152,113 763,914 Sum of Revenue & Expenditure Variances 1,808,435 3,093,131 2,402,766 1,929129 1,094,500 1,890,490 General government Fin come Reserve Fund unspent FY09 100K FY10 80K FYI 100K,ins Claims 12K Public safety Unused Fire Dept Sick buyback, Various Police/Fire /Dispatch Vacancies Education FY09 hold back to cover reduction in State Aid - Fy10 Energy savings unspent to cover the Energy Improvement Loan Interest Public works and facilities FY08 Woodland Easement Project low bids saved $50,000, FY09, FY10, FYI Gasoline prices down - saved over 50K each year, trash less tonnage saved 47K in Fy09, 70K in FY10, 70K in FYI Human services Unfilled position in Elder Services and Health Culture and recreation FY09 Unfilled Position in Parks oOployee benefits FY09 ARRA funds paid Teacher Health Insurance to offset State Aid Reduction $994,000 -FYI 1. Worker Comp 50k Health ins 33k Towns Match for Medicare 50k Intergovernmental FY10 Regional School Assessment lower than budgeted - less enrollment. FYI Charter /School Choice Assessments Debt service FY09 Orig Budget Included estimates for refinancing school debt, FY10 est int expense on Energy Improvement Debt or1a1?m 1 Budget to actual variances REGENERATION FYI Page 1 of 1 LeLacheur, Bob From: recapdata @dor.state.ma.us Sent: Tuesday, September 27, 2011 4:07 PM To: LaPointe, Gail; Reading - Selectmen; Heffernan, Nancy; Finance; Hechenbleikner, Peter Subject: Freecash Approval Notification for Reading Massachusetts Department of Revenue Division of Local Services Navjeet K Bal, Commissioner Robert G. Nunes, Deputy Commissioner & Director of Municipal Affairs Tuesday, September 27, 2011 Gail LaPointe Accountant Town of Reading Re: NOTIFICATION OF FREE CASH APPROVAL - Reading Based upon the unaudited balance sheet submitted, I hereby certify that the amount of available funds or "free cash" as of July 1, 2011 for the Town of Reading is: General Fund $ 5,499,128 Water Enterprise Fund $ 1,436,630 Sewer Enterprise Fund $ 1,187,837 Stormwater Enterprise Fund $ 376,011 This certification is in accordance with the provisions of G. L. Chapter 59, §23, as amended. Certification letters will be e- mailed to the mayor /manager, board of selectmen, prudential committee, finance director and treasurer immediately upon approval, provided an e-mail address is reported in DLS' Local Officials Directory. Please forward to other officials that you deem appropriate. Sincerely, Gerard D. Perry Director of Accounts This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the system manager at postmaster at dor.state.ma.us. 10/'x/201 1 FINCOM FY12 Schedule (All meetings are Wednesday at 7:30pm in Town Hall, unless noted) 2011 September 14 regular meeting September 27 Warrant closes for November Town Meeting October 12 Financial Forum (at the Senior Center) October 19 (tentative) regular meeting to vote Warrant Articles November 14- 17 -21 -28 Subsequent Town Meeting (begins Monday at RMHS) December 14 regular meeting 2012 January 9 School Committee School budget meeting (Monday 7: 30pm at RMHS) January 12 School Committee School budget meeting (Thursday 7: 30pm at RMHS) January 17 Selectmen Town budget meeting (Tuesday 7pm — location TBA) January 19 School Committee School budget meeting (Thursday 7: 30pm at RMHS) January 23 School Committee Public Hearing (Monday 7 :30pm at RMHS) January 24 Selectmen Town budget meeting (Tuesday 7pm — location TBA) January 26 School Committee School budget vote (Monday 7: 30pm at RMHS) January 25 Financial Forum Il (at the Senior Center) February 8 regular meeting February 28 Warrant closes for April Town Meeting March 6 (tentative) Presidential Primary election March 7 FYI Budget Meetings (Town depts.) March 14 FYI Budget Meetings (Town depts.) March 21 FYI Budget Meetings (Schools & Facilities) March 28 FYI Budget Meetings (Vote on Budget & Warrant articles) April 3 (tentative) Local election April 11 regular meeting April 23 -26 -30 -May 3 Annual Town Meeting (begins Monday at RMHS) June 27 Year -end meeting R Ranafits 11 712 n81 1 12.845.486 9.7 %1 13.843.791 7.8 %1 14.967.236 8.1% F Capital 1,273,000 948,000 Revenue Update 1,500,000 58.2% 1,800,000 20.0% D October 3, 2011 6,158,003 6,063,446 -1.5% 5,644,235 operating budgets = => -1.00% -4.2% 0.00% Town of Reading 757,000 2.3% G Education - Out of district 3,702,751 $ 46.189,453 3,841,067 Budget Summary 3,859,320 0.5% One Year 4,107,386 One Year H One Year 10/12/1`112:08 PM Actual Current Changes Projected Changes Projected Changes No. FY - 2011 FY - 2012 FY - 2012 FY - 2013 FY - 2013 FY - 2014 FY - 2014 Revenues 3,008,835 2.8% K Community Priorities 125,000 Al Total Property Taxes 51,197,568 52,648,402 2.8% 54,134,050 2.8% 55,686,635 2.9% A2 Total Other Local Revenues 6,251,394 5,401,000 - 13.6% 5,580,000 3.3% 5,705,000 2.2% A3 Total Intergov't Revenues 13,274,828 12,967,774 -2.3% 12,762,036 -1.6% 12,762,036 0.0% A4 Total Transfers & Available 4,269,381 4,107,096 -3.8% 4,277,764 4.2% 4,272,986 -0.1% A98 Revenues before Free Cash $ 74,993,171 $ 75,124,272 0.2% $ 76,753,851 2.2% $ 78,426,658 - 2.2% A5 Free Cash 1,490,000 863,309 -42.1% 0 -100.0%1 0 A99 Net Available Revenues $ 76,483,171 $ 75,987,581 .0.6%1 $ 76,753,851 1.0% $ 78,426,658 2.2% R Ranafits 11 712 n81 1 12.845.486 9.7 %1 13.843.791 7.8 %1 14.967.236 8.1% F Capital 1,273,000 948,000 - 25.5% 1,500,000 58.2% 1,800,000 20.0% D Debt 6,158,003 6,063,446 -1.5% 5,644,235 -6.9% 5,409,911 -4.2% E Energy Z,3tfZ,U /3 -0.31% Z,UU4,4UU -1b.y% Z,1J0,661 b.b% TOTAL School & Bldgs Z,Zvo,utt5 1.0% F Financial 620,000 30,626,041 716,000 15.5% 740,000 3.4% 1.33% 757,000 2.3% G Education - Out of district 3,702,751 $ 46.189,453 3,841,067 3.7% 3,859,320 0.5% 45,658,075 4,107,386 6.4% H Education - Vocational 327,946 419,343 27.9% 424,227 1.2% 445,438 5.0% J Miscellaneous 2,841,367 2,832,307 -0.3% 2,928,077 3.4% 3,008,835 2.8% K Community Priorities 125,000 0 1 0 0 L1 Annual Accommodated Costs $ 2;1,142,221 1 $ 29,670,049 1.8% $ 31,075,536 4.7% $ 32,791,884 5.5% Remaining Recurring NAR (A98 -1-1) 45,850,950 1 45,454,223 -0.9%1 45,678,314 0.5%1 45,634,773 -0.1% Operating Costs TOTAL Muni Government 14,805,446 14,759,646 -0.31% 14,612,050 .1.00%1 14,612,050 0.00% TOTAL School & Bldgs 30,965,364 31,153,395 0.61% 30,626,041 -1.69%1 30,626,041 0.00% TOTAL Town Bldgs 418,643 424,227 1.33% 419,985 .1.00%1 419,985 0.00% School. Town. Buildings $ 46.189,453 $ 46,337,268 0.32%1$ 45,658,075 -1.47%1$ 45,658,075 0.00% Municipal Go'vt Operating 32.05% 31.85% 32.00% 32.00% School & Bldgs Operating 67.04% 67.23% 67.08% 67.08% Town Bldgs Operating Target 0.91% 0.92% 0.92% 0.92% TOTAL EXPENSES L2 +OC4 $ 75,331,674 $ 75,789,317 0.6% $ 76,733,612 1.2% $ 78,449,960 2.2% 29,452,049 Urp uS a ICit $ 20,239 $ (23,302) Eligible Ineligible TOTAL Haverhill $ 1,376,852 $ 243,550 $1,620,402 Howard $ 905,870 $ 170,000 $1,075,870 Combo $ 2,282,722 $ 413,550 $ 2,696,272 What we planned Debt authorized by Town Meeting What will happen MWRA loan $ 2,050,000 We borrow - 3yrs $ 232,722 Budgeted Funding FY12 FY13 FY14 $ 2,285,000 $ 228,500 $ 228,500 $ 228,500 etc... to FY21 $ 2,050,000 2278 $ 235,000 Balance needed $ (232,722) $ (413,550) $ (646,272) Balance available What can haooen We borrow - 3yrs $ 232,722 $ 2,278 $ 235,000 (are authorized) We need as capital $ 411,272 Reserve fund transfer at November Town Meeting Future amounts needed over previous budget $ 205,000 $ 205,000 etc... to FY22 $ 80,000 $ 80,000 $ 228,500 $ 23,500 $ 23,500 $ 80,000 $ 80,000 $ 411,272 $ 182,772 $ 56,500 $ 56,500 Water Capital Eligible /Ineligible Costs MWRA Local Pipeline Assistance Program Awarded Contract Paving Police & Contigency Sub Total Eligible Cost $ 1,032,002.00 $ 186,450.00 $ 158,400.00 Ineligible Cost $ 243,550.00 1 $ 1,376,852.00 $ 243,550.00 Eligible Cost Ineligible Cost Estimated Contract $ 816,820.00 "Including Police & Cont. Paving $ 89,050.00 $ 170,000.00 Sub Total = $ 905,870.00 $ 170,000.00 Total Eligible Cost Total Ineligible Cost $ 2,050,000.00 $ 2,282,722.00 $ 413,550.00 Revenue Enhancement Ideas from Reading Financial Forum September 15, 2010 Bucketed List Evaluation Criteria Keep Opp Cost J or I Being Ease to implement Ongoing Community Unintened Who Should FinCom p Ideas That Received Votes Votes Discard Done Revenue Implement Cost Cost impact Conseauences Carry Forward? A ONE TIME REVENUE 1 Sale of Town Land (Oakland Rd -last big parcel) 25 Keep High Medium None TBD Varies by lot Selectman ONGOING REVENUE B School and Town Land: Opportunities 49 2 Cell Towers 20 Keep Yes Medium Low- Medium TBD TMgr /Selectman 3 Advertising /Billboards 15 Keep Yes Medium TBD Selectman /SC 4 Wind /Solar Power Generation and Sell Back 9 Discard ' No RMLD 5 Sell Timber in Town Forest 5 Keep Yes DPW/Tdwn Forest Committee C School and Town Facilities: Opportunities 24 6 Rental of existing space 15 Keep Yes Low -Med. Medium Medium High Medium Medium Selectman /SC 7 Naming Rights 9 Keep No Low Medium Low Low Medium Political Selectman /SC D Fees: Introduce New Ones 18 8 Pay as You Throw Trash Fee 6 Discard No High Low Medium Medium High Incr. Recycling Selectman 9 Preferred Parking Fees at RMHS 6 No Low Medium Low Low Low Incr. nbad pkng Schools 10 Billing At Fault Accidents 5 Discard No Med -low No Medium -High Staff time High Ins. Co. battles Public Safety 11 Wireless air rights billing 1 No E -A Economic Development 17 12 Town Economic Devetopment /PR 12 Keep Yes Medium Requires $ Medium -High Yes Positive Selectman 13 Tax Incentives for New Business 5 Discard No Selectman F New Initiatives 16 14 Grant Writers to Bring in $$ 5 Keep No Selectman /SC 15 Endowed Positions at Schools 5 No no comps In MA - all answers are unknown Schools . 16 Road Races Program 3 Keep No Low High Low Low Low Low Recreation 17 Reading Branded Credit Card 2 No no comps In MA - all answers are unknown Selectman /SC 18 Remove state gas tax on Town 1 Discard No Legislators G Fees: Increase existing 12 19 Parking Fee at Depot 10 Keep Yes Selectman 20 Raise Parking Tickets & Fines / Parking Meters 1 Discard Yes Selectman 21 Increase RMLD annual in lieu of Tax Payment 1 Discard Yes Selectman 22 Increase Ice Arena payments 0 Keep Yes Selectman H Gifts /Donations /Sponsorships 12 23 Sponsoring Town Trees, Benches, Lights, etc. 7 Keep Yes Selectman 24 Focused Approach for Gifts /donations 5 Discard No Selectman /SC i Expand Service Offerings 6 25 Offer Ambulance Services to Other Towns 6 Keep No Medium High High Medium none Selectman Total Votes 179 c Next max, for schools; ID Town Bldgs contact success elsewhere? use fees for? UPQATES - items to move forward ,j/Sk 1 Right to sell certain parcels (including Oakland Road) -Article for Nov 2011 Town Meeting ,�:/ 2 There is periodic interest in additional cell tower sites, but nothing pending right now Selectmen Bonazoli & Goldy and the Town Manager met with Clear Channel. Based on state regulations there is only one location that is a 3 possibility, and it is not town - owned. The possibility of hosting on this site Is still a potential with some revenue to the Town., Revolving fund for selling timber in town forests Article for Nov 2011 Town Meeting Rental of existing space - the Town and Schools both rent space. Rental sometimes conflict with Town use. For Town buildings the rents are $10 �er 4 -hour block plus a custodial fee if needed. Rental is restricted to Town non - profits. acility Rentals -As for facility rental, our school facilities have a 92% utilization rate for non - school hours (3:00 to 9:00) p.m. A large portion of that utilization includes, extended day and after school enrichment programs, our athletic and extracurricular programs, adult education programs, and Reading recreation programs. Gymnasium space is now virtually entirely booked months in advance. Last year we did experiment with some innovative revenue sharing arrangements, which we are approaching the first year of implementation. There are only two auditoriums of interest to renters - High School and Parker. The High School auditorium is nearly completely scheduled and, in fact, there are groups who want to use this facility that we cannot accommodate due to the HS drama and band schedule as well as recurring rental commitments. Parker is very heavily used but the major complaint from adult groups is that the seats are too small. Also, the stage is not ideal for dance performances except the younger children. Last year, we implemented an aggressive campaign to attract colleges and universities to use our facilities for evening classes or satellite campus. Unfortunately, we did not get any interest due in large part to the rapid growth of on -line learning. We have lots of information on our website for those who might want to conduct classes, workshops, or conferences. We have occasional conferences, but nothing regular: One significant obstacle to increasing rentals is the fact that we have Just 0.25 FTE of staff time dedicated to this effort. If the community wishes to increase revenue from facility rentals, we would have to re- examine the use of the facilities by Reading Recreation and invest more resources to staff a facility rental coordinator position. Naming Rights of Facilities -We have been unable to find any company in the area who is interested in. paying a fee to have a facility named. in addition, most of our higher profile locations have been named or are likely to be named In the next year or two. These are subject our new school committee policy on naming of facilities. Town Economic Development /PR - Town staff and the EDC continue to work to bring new businesses to Reading, with a great deal of success. There is a huge amount of new construction in the commerical sector going on, and'there are other possibilities being worked on. The Town and Schools use a grant - writer for targeted strategic programs - the most recent being cooperative ventures between the Town and I -A Schools on public safety and security issues There are many road races in Reading. The one at the Fall Street Faire is run by the Town and receipts go into the Downtown Improvement and 16 Event Trust ,�O5, �Parking Fee at Depot - BOS to discuss fall 2011 The next lease for the Ice Arena will be going out to bid in the fall 2011. It is important that the lessee make sure that adequate capital funds are X22 available to properly maintain the building. The Town of Reading is one of the largest renters of ice time. �6 The Town has a robust program of residents and businesses adopting trees, benches, etc.. Memorial Park is a prime example. Playgrounds are 23 always adopted to supplement Town funding. This could be a future step in regionalization of some services, but it would have to be studied carefully to make sure that revenues exceed 25 expenses by.some level that would make it worthwhile. We could not do this with current staffing and equipment. UPDATES - items to discard Wind /Solar Power Generation and Sell Back - technology and geography make this uneconomic in Reading. The cost of solar is currently 4 prohibitive without a very heavy subsidy. Pay as You Throw Trash Fee - In 1993 BOS committed to voters that if they passed a Prop 2 -1/2 override there would never be another trash fee. It —• 8 passed, and the current rubbish and recycling program generates significant savings due to its success. ao 10 Billing At Fault Accidents - Police have researched, no instances of success in MA Tax Incentives for New Business - Reading does not qualify for state programs for tax incentives, nor has the Town needed incentives to bring in significant development. The Town Planner will discuss further at the October Fin'I Forum the poor long -term track record of economic incentives 13 but present some. efforts that would help attract and retain businesses. 18 This is a federal and state issue that is beyond the Town's control or influence Parking tickets at $20 are high enough. Parking meters would represent a significant capital investment and may be detrimental to business 20 downtown The RMLD Earnings Distribution has been studied many times. The current formula and rate of payment represent good value for the Town and in 21 addition we receive top quality and reliability at a very low price. Street light rates have been reduced for FY12. The Town has not hired a 'rain maker' nor is that an appropriate use of Town funds. When a donation is made to the Town, 100% of the donation 24 goes to the Town. OFIR? Finance Committee Meeting � October 19, 2011 Conference Room, Reading Town Hall l639:]NCORQ DRAFT Minutes The meeting convened at 7:30 PM in the Conference Room at Town Hall. FINCOM Members Present: Chair Marsie West, John Arena, Barry Berman, Mark Dockser, Marie Ferrari, Paula Perry and Hal Torman Members Absent: Vice Chair David Greenfield (one position is open). Also Present: Town Manager Peter Hechenbleikner and Assistant Town Manager /Finance Director Bob LeLacheur. There being a quorum the FINCOM meeting was called to order at 7:30 PM in order to review the Warrant for the upcoming November Town Meeting. Article 3 Mr. LeLacheur explained that items had to be formally placed on the capital plan before they could be considered by Town Meeting, but the funding of items was a separate decision. Mr. Arena asked if listing projects as debt exclusion implied any decision, and Mr. LeLacheur said it was merely an illustration of a funding method — as all items are required to have. On a motion by Ms. Perry seconded by Mr. Dockser, FINCOM voted 7 -0 -0 to recommend the subject material of Article 3. Mr. Dockser will provide the write -up and report this vote to Town Meeting. Article 4 Mr. LeLacheur explained that four projects sold debt that was surplus to the final needs of the projects. Three of the four were small amounts, while there was a $46k balance left in the Parker turf field project. Mr. Hechenbleikner noted that the only way to avoid this was to wait to sell permanent financing until the projects were done, and take on interest rate risk while waiting. Mr. LeLacheur noted that in MA there were formal maximum terms (years) that various debt could be sold for, and balances could be transfers to projects that had similar (or shorter) limits, and did not need to be related to the purpose of the debt. The unused balance will be put towards 100% design for the West Street project, so that it is `shovel- ready' when the state has grant funding available. On a motion by Mr. Torman seconded by Mr. Berman, FINCOM voted 7 -0 -0 to recommend the subiect material of Article 4. Ms. Ferrari will provide the write -up and report this vote to Town Meeting. Article 8 Mr. LeLacheur reviewed Article 8 and mentioned it would be taken out of order ahead of parts (or all) of Article 5. Due to a water main bid (Haverhill St.) well below estimates, another project (Howard St.) is able to be advanced and qualify for a no- interest MWRA loan. However some costs for Howard St. must be paid for from the water reserves fund. This Article authorizes the Howard St. project to be included in the MWRA debt authorization for Haverhill St. On a motion by Mr. Dockser seconded by Mr. Torman, FINCOM voted 7 -0 -0 to recommend the subiect material of Article 8. Ms. Perry will provide the write -up and report this vote to Town Meeting. Article 5 Mr. LeLacheur reviewed the proposed FYI budget changes to the general fund in two groups: one will proceed in any event, and the other relies on a building permit being issued to one of two current projects (Oaktree and Pulte Homes). The first group will be paid for by realizing an additional $250k in revenue, while the second group would be funded by taking $281k from the 40R Stabilization Fund. Mr. Hechenbleikner explained that while demolition, footing & foundations permits have been issued and there is obvious progress on each 40R project, a building permit is the gating item for the funds belonging to Reading. On the proposed expenses, Mr. Berman said this might be a good opportunity to review the status of the Veteran's assistance efforts by the town. On a motion by Mr. Torman seconded by Mr. Berman, FINCOM voted 7 -0 -0 to recommend the general fund items paid for by the $250k increased revenues and $50k decrease in the cost for street lights. These items are $50k school facilities study; $24k Birch Meadow carpeting; $10k Dispatch equipment; $109k for FINCOM Reserve fund; $7k for additional hours for Alternate Building Inspector; $100k for additional Veteran's benefits. On a motion by Mr. Berman seconded by Mr. Dockser, FINCOM voted 0 -7 -0 to not recommend the general fund items paid for by the $281k use of the 40R Stabilization Fund, including $50k for pedestrian improvements and $231k for road repairs. On a motion by Ms. Ferrari seconded by Mr. Berman, FINCOM voted 7 -0 -0 to recommend the enterprise funds additional water main proiect for $250k to be funded by water reserves. Mr. Berman will provide the write -up and report these votes to Town Meeting. Article 6 Mr. LeLacheur reviewed two outstanding bills from the previous year, including Assessor's mileage and a refund to the Massachusetts Emergency Management Agency. This will require a 9/10 vote at Town Meeting. On a motion by Ms. Ferrari seconded by Mr. Dockser, FINCOM voted 7 -0 -0 to recommend the subiect matter of Article 6. Ms. Ferrari will provide the write -up and report these votes to Town Meeting. Article 7 Mr. LeLacheur reviewed authorized but unused debt amounts for past completed projects. In some cases the unused amounts were expected because grants or donations funded a portion, in some cases the projects came in below estimates prior to selling the debt. These changes have no financial impact but are a good practice. On a motion by Mr. Arena seconded by Mr. Berman, FINCOM voted 7 -0 -0 to recommend the subiect matter of Article 7. Mr. Arena will provide the write -up and report these votes to Town Meeting. Article 9 Mr. Hechenbleikner reviewed the proposed transfer of $50k from the 40R Stabilization Fund to the Affordable Housing Trust Fund (AHTF), in order to begin to replenish it after $200k was voted to be used for the Oaktree project (if needed). He mentioned that the $200k may not be needed due to lower than anticipated construction bids. Mr. Arena asked if there was a time limit on the use of these funds and Mr. Hechenbleikner said that there was, in the 2 -3 year range. Mr. Arena asked if the funds could be removed from the AHTF and put back into the 40R Fund, and Mr. Hechenbleikner said they could not — AHTF funds must be spent towards affordable housing in the community. He mentioned that Peter Sanborn had an informal inquiry as to funds being available. Ms. West asked if there was a formal policy in place yet for the distribution of these funds, and Mr. Hechenbleikner said there was not, but one is planned as soon as possible. Ms. West asked to confirm that the 40R funds were not yet available because a building permit has not been issued and Mr. Hechenbleikner confirmed that this was the case. Ms. West also mentioned that there was no immediate need for the $50k. She stated that due to the source of funds not being available coupled with the lack of a formal policy or immediate need, she would oppose this Article. On a motion by Mr. Dockser seconded by Mr. Berman, FINCOM voted 0 -7 -0 to not recommend the subiect matter of Article 9. Mr. Arena will provide the write -up and report these votes to Town Meeting. 2 Article 10 Mr. Hechenbleikner reviewed the request from the Commissioners of Trust Funds that due to the low interest -rate environment a change is needed to allow both principal and interest to be used for the annual costs of flowers for the Veteran's graves. This Article would become effective only with future donations beginning on January 1, 2012. On a motion by Mr. Berman seconded by Mr. Torman, FINCOM voted 7 -0 -0 to recommend the subiect matter of Article 10. Ms. Perry will provide the write -up and report these votes to Town Meeting. Article 11 Mr. Hechenbleikner reviewed the creation of a new revolving fund to be funded with the sale of timber from the Town Forest, and proceeds to be used for planning and improvements to the Town Forest. Ms. West asked why this new fund was needed, and Mr. Hechenbleikner replied that a stewardship plan had been completed that suggested pruning and selling timber over a ten -year period, and that a master plan for the Town Forest was the next step. Mr. Torman asked why the $1 Ok limit and Mr. Hechenbleikner said that through experience that figure might need to be adjusted. FINCOM had some discussion about the scope of the use of funds. On a motion by Mr. Torman seconded by Ms. Perry, FINCOM voted 7 -0 -0 to recommend the subiect matter of Article 11. Mr. Torman will provide the write -up and report these votes to Town Meeting. Article 12 Mr. Hechenbleikner reviewed proposed betterments near the Barrows school as requested by the neighborhood, to be paid by the neighborhood. He mentioned that for smaller projects the Town usually suggests that homeowners use sub - contractors for this type of granite curb work and pay them directly, but since this was a larger project the Town would do the work and be repaid through the betterments process. On a motion by Mr. Berman seconded by Mr. Dockser, FINCOM voted 7 -0 -0 to recommend the subiect matter of Article 12. Mr. Berman will provide the write -up and report these votes to Town Meeting. Articles 25 -26 -30 Mr. LeLacheur reviewed these Articles that were put on the Warrant by FINCOM and therefore already voted, but there was one suggested update on Article 26. Ms. West reviewed the change that she preferred in that section 3.3.2.4 is stricken as not necessary, and the following sections be renumbered accordingly. She also reviewed the changes suggested by Town Counsel which were incorporated into the Warrant as closed by the Selectmen, as there were some conflicts between the Town Charter and Town Bylaws. The details are noted in the background for Article 26. On a motion by Mr. Dockser seconded by Ms. Perry, FINCOM voted 7 -0 -0 to recommend the subiect matter of Article 26, including the above revisions proposed by Ms. West to strike 3.3.2.4 and renumber as needed. Ms. West will provide the write -up and report these votes to Town Meeting. Article 29 Ms. West asked if FINCOM was interested in taking a vote on the proposed change to the role of the Selectmen in the budget process. Mr. Hechenbleikner explained that this change reflected past practice in that he has always consulted the Selectmen before creating the final Town Manager budget. Mr. Berman stated that he did not believe this was a FINCOM issue. On a motion by Mr. Berman seconded by Mr. Dockser, FINCOM voted 6 -0 -1 (Mr. Berman abstained) to recommend the subiect matter of Article 29. Ms. West will provide the write -up and report these votes to Town Meeting. Minutes On a motion by Ms. Perry seconded by Mr. Torman, FINCOM voted 5 -0 -0 to accept the minutes for July 25, 2011 as written. On a motion by Ms. Ferrari seconded by Ms. Perry, FINCOM voted 6 -0 -0 to accept the minutes for September 14, 2011 as written. Ms. West asked that FINCOM be posted at 7pm on the first night of Town Meeting to reconsider any of their positions in case additional information becomes available. On a motion by Mr. Berman seconded by Mr. Torman, FINCOM voted 7 -0 -0 to adjourn at 9:35 pm. Respectfully submitted, Recording Secretary El "0, ::.. Association of Town Finance Committees One Winthrop Square Boston, MA 02110 617 - 426 -7272 or 800 - 882 -1498 Tom\ ` 4 i �gy Newsletter December 2011 President's Letter by Joanne Marden, Andover Finance Committee Member This has been a busy fall for finance committees. Each town had to decide what to do with its share of the $65 million one -time distribution of local aid. Many of us have been preparing for special town meetings to balance budgets, vote on capital projects and deal with a myriad of other municipal issues. Finance committee members were challenged to find the best way for their individual communities to take advantage of the new health insurance reform legislation. By the time your FY2012 property tax rates are set, finance committees will have devoted countless hours to helping their voters and taxpayers understand the relationships between what town meeting votes to spend, the quality of public services that can be delivered, and the increases in their property tax bills. Thank you to all who took time out from your busy schedules to make our ATFC Annual Meeting in October a success. Informative speakers and workshops, opportunities to connect with other finance committee members from all over the state, and a wonderful luncheon with Michael Dukakis all made for a great day. In planning workshop topics, your ATFC Governing Board responds to ideas submitted by members. We will be organizing regional meetings in the spring. Your suggestions for workshop topics and locations are more than welcome. With FY2012 tax rates set, it is time to polish our crystal balls and get to work on revenue and expenditure projections for FY2013. While state revenue collections to date are encouraging, no one is projecting a speedy recovery for the national economy. Local officials will be further challenged to find innovative, cost effective ways of delivering high quality town and school services. Will we be able to plan on an increase in local aid for FY2013 or at least getting the same amount we received in FY2012 including the supplemental distribution in October? The wild card for this year's budget planning may be whatever happens in Washington affecting federal funding for the state. The Massachusetts Municipal Association will continue to advocate for local aid for cities and towns and keep us informed about the latest developments. The MMA website www.mma.org is a great resource for up-to -date information about the state budget and other legislation affecting city and town finances. The MMA Annual Meeting to be held January 20 and 21, 2012, in Boston at the Hynes Convention Center and Sheraton Boston Hotel provides another excellent opportunity for finance committee members to improve their skills and network with other local officials. Details about speakers and workshops, a schedule of events, and registration information can be found on the MMA website. You are encouraged to attend. ATFC Governing Board Joanne Marden, Andover; Allan Tosti, Arlington; Pat Brusch, East Bridgewater; Kimberly Roy, Halifax; Jennifer Gonzalez, Belmont; Mary McBride, Billerica; Joanne Sprague, Chatham; Holbrook; Richard Creem, Needham; Ira Miller, Sharon: Staff. Bruce Button, Concord; Paul Joyce, Dedham; Martin Crowley, MMA Senior Member Services Coordinator Denise Baker MMA Annual Meeting and Trade Show The 33rd MMA Annual Meeting and Trade Show January 20 and 21, 3012 Hynes Convention Center and Sheraton Boston Hotel The MMA Annual Meeting and Trade Show is the largest regular gathering of Massachusetts local government officials. The two -day event features educational workshops, nationally recognized speakers, awards programs, a large trade show, and an opportunity to network with municipal officials from across the state. The MMA's Annual Meeting is your best single opportunity to: • Learn about solutions to problems facing your community • Meet people who can assist you with resources and ideas • Learn about valuable products and services for cities and towns • Attend programs that will strengthen your ability to lead and serve your community The MMA Annual Meeting & Trade Show is held at the Hynes Convention Center and the Sheraton Boston Hotel in Boston's scenic Back Bay. Register online at http / /www_mma org!re.gstration or call 617.426.7272 for more information. Advance registration (by Jan. 13, 2012) Member: $140 Other Government Entities: $250 Business Program Member: $140 On-site registration Member: $175 Other Government Entities: $315 Partnership Program Member: $175 Additional events Friday dinner: $39 per person Saturday dinner: $45 per person Women Elected Municipal Officials (WEMO) luncheon (Friday): $25 per person At ATFC Annual Meeting, Gov. Dukakis Discusses His Local Roots Three -term Massachusetts Gov. Michael Dukakis, who won the Democratic nomination for president in 1988, says becoming a college professor, particularly at an urban university like Northeastern, was one of the best decisions he's ever made. Speaking to 175 attendees of the Association of Town Finance Committees Annual Meeting on Oct. 15 in Franklin, Dukakis, 77, said he greatly enjoys teaching in Northeastern's MPA program, which he has done for more than 20 years. The school has named its Center for Urban and Regional Policy for Dukakis and his wife, Kitty. Responding to numerous questions from the audience, Dukakis covered issues from health care cost containment to education. He pointed to a rise in high school and college graduation rates in Massachusetts in recent decades and suggested that today's students are more focused on public service and giving back to their communities. Dukakis began his public service career in local government, becoming a town meeting member in his hometown of Brookline in 1959 and serving until 1970. He discussed how this experience shaped his life in politics and his strong belief that local politics is where real change can be made. Dukakis talked about a recent trip with Kitty to South Korea, where he was stationed while serving in the U.S. Army. He spent 16 months with the Support Group to the U.N. Delegation to the Military Armistice Commission in Munsan, Korea. When he left in 1957, Korea was a shell of a country with no infrastructure, he said. When he returned some 50 years later to speak at a conference, he found that South Korea rivals any first -world country in technology, education, infrastructure and its economy. The former governor remains active in politics locally. In 2008, he was a ward captain for President Barack Obama's campaign. While going door -to -door in his neighborhood, he often discussed national as well as state and local politics. He would often give residents guidance on anything from town meeting to trash pick- up schedules. His dedication to his hometown continues as well. He is sometimes seen painting over graffiti on mailboxes, something he feels is an important part of being a member of a community. After Dukakis spoke, one ATFC member who had worked in Brookline commented that he had occasionally seen Dukakis picking trash off the sidewalk and streets. All meeting materials are available at www.mma.org, click on the ATFC meeting link on the Events Calendar. Governor Signs Law Reinstating `evergreen' Clause On November 23rd, the governor signed a law that overturns a negotiated. 2010 Supreme Judicial Court decision that had barred so- called "evergreen" clauses in public- sector collective bargaining In October 2010, the SJC ruled that state law precludes collective contracts. bargaining agreements from exceeding three years. The language in the law, enacted by the Legislature in the final hours of the formal legislative session, is nearly identical to proposals the governor had filed previously. The law reinstates a long- standing practice of including language in union contracts allowing public employees to continue working under the terms of an expired contract while a new deal is being Under the terms of the law, an evergreen clause can be enforced retroactively as well as in cases where the clause in an already - executed contract is not currently in adjudication in a court of law. Evergreen clauses are not mandatory in contracts; both parties must agree to the clause. Governor Signs Casino Law After more than two decades of high - profile debate, Gov. Deval Patrick on November 22nd signed a gaming bill that will permit up to three destination casinos in different regions of the state plus a single slot machine -only facility. Intended to bring jobs to the Bay State and provide new revenues for state and local government, the law starts a process to create a powerful new state agency that will be charged with licensing and overseeing new gaming operations. The signing of the law also marks the start of a scramble by gaming companies to prepare plans and applications seeking one of the new licenses. While it may take several years before casino doors open, cities and towns that would host or are near a possible site should expect a surge of activity as developers prepare applications for submission to the new state agency, the Massachusetts Gaming Commission. The commission could issue a request for applications early next year, and the review and approval process could move quickly. The new law requires applicants to identify the impact of their project on local infrastructure and to provide a signed agreement between the host community and the applicant, including a community impact fee. It also requires eligible applicants to commit to an agreement and impact fee with surrounding cities and towns. An eligible applicant must also have received a favorable vote at a local election in the host municipality. The gaming commission will hold a public hearing on any application. In determining whether an applicant should be granted a license, the commission is required to take into account plans to mitigate any impact on the host and surrounding cities and towns tied to the development and operation of the gaming facility, as well as the level of public support for the proposal. The three regions of the state where a full-scale casino could be located are the following: the five eastern counties (Suffolk, Middlesex, Essex, Norfolk and Worcester), western Massachusetts (Hampshire, Hampden, Franklin and Berkshire counties), and the southeastern part of the state (Bristol, Plymouth, Nantucket, Dukes and Barnstable counties). A Gaming Local Aid Fund would receive 100 percent of the tax revenue from the slot- machine -only facility and 20 percent of the tax revenue from the full-scale casinos, although more than half of the casino amount would be diverted to a special Local Aid Stabilization Fund over time. The Gaming Local Aid Fund is intended to offset any loss in Lottery revenues — due to competition from slot machines and table games — that would have been used to fund municipal aid, and to provide new revenue to support the state's municipal aid program. The new law also creates a Community Mitigation Fund to help cities and towns with the impact of a new gaming development, an Education Fund to help pay for K -12 and higher education programs, and a Local Capital Project Fund. A new 15- member Gaming Policy Advisory Committee, will be led by the governor and including three members from the vicinity of each of the casino facilities. The advisory committee is charged with creating a subcommittee on community mitigation to include members from the casino host communities and one representative from the MMA. There are also subcommittees on addiction services and public safety. Each region of the state would be authorized to establish special local community mitigation advisory committees that include at least one member from the host or surrounding community to a gaming facility. John Robertson Appointed New MMA Legislative Director John Robertson, the MMA's deputy legislative director, will be promoted to legislative director when long-time division leader David Baier retires at the end of the year. MMA Executive Director Geoff Beckwith announced the staff changes at the association's Board of Directors meeting on Nov. 15. "After three decades of outstanding service with the MMA as a passionate leader and defender of local government, David Baier will be retiring at the end of the year to devote all of his waking hours to family, friends and relaxation," Beckwith said. "David's countless contributions to the MMA throughout the years have been wonderful for us and for cities and towns, and we will miss him greatly as a member of our staff. It will be extraordinarily difficult to fill his shoes." Beckwith announced that Robertson will take over as division director effective Jan. 1. "The fantastic news is that we have a remarkable colleague in John Robertson who is ready and able to step right in to lead our Legislative Division," Beckwith told the MMA Board. "John has been our Deputy Legislative Director for many years and has been a high - performing member of our staff for more than two decades. He is widely recognized as a true expert in municipal and state finance and as a policy leader who is admired and sought after by state, local, civic and community leaders. His experience, personality, and leadership abilities make him the ideal person to serve as our next legislative director." The transition will be seamless, Beckwith said. "On Jan. 1, the New Year will ring in a new calendar, and we will have John Robertson as our new top lobbyist, advocate and division director at the MMA," he said. "Our members can expect continued excellence in our advocacy efforts with John at the helm." AG Issues Rules on Remote Participation in Meetings Effective Nov. 11, the attorney general's office has amended open final regulations. Among them is allowing members of local public meeting law regulations to allow members of public bodies to bodies to vote when participating in a meeting remotely. participate remotely in meetings under certain circumstances. While a specific list of approved technology is included, the regulations are flexible and include "any other technology that The new regulations address the adoption of the requirements for enables the remote participant and all persons present at the remote participation, a list of five permissible reasons, the types meeting location to be clearly audible to one another." of technology allowed, and the procedures for using the technology. Remote participation must still be approved by the public body or the municipality's chief executive officer. The MMA submitted suggestions during the open comment period, and many of the suggestions were incorporated into the The new regulations are available at www.mass.gov /ago /openmeeting. 2010 Handbooks Available The 2010 edition of The Finance Committee Handbook is now available. The handbook contains valuable information for finance committee members on a variety of topics, including debt and credit, the budget process and calendar, Proposition 2 1/2, fiscal policies, open meeting law and capital planning. If your ATFC dues are current, please call Aaron Bacon at the MMA to request your copies. Every member of each committee receives a handbook (CD) as part of your membership dues. Send us Your E-mail Address The association is actively seeking member emails. All correspondence goes out via email, as well as traditional mail. with their committee members as well as receive MMA legislative alerts. Sending information by email allows fincom chairs to share it Please email your contact info to abacon@mma.org