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Finance Committee
Wednesday, February 8, 2012 at 7:30 PM
Town Hall Conference Room
Printer- Friendly Version
Agenda
• RMLD Renewable Energy Certificates
• FINCOM Reserve Fund Transfer requests
• Town Facilities
• Land Appraisal
• Town Forest Master Plan
• Update on FY13 Budget
• Community Priorities
• State Aid (Governor's budget)
• Health Insurance & OPEB
• Town Accountant Search Committee
• Minutes
October 12, 2011
October 19, 2011
November 14, 2011
January 3, 2012 .
Town of Reading, Massachusetts 16 Lowell Street, Reading, MA 01867 Website Disclaimer
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1 of 1 2/4/2012 3:56 PM
Finance Committee Reserve Fund Transfer Requests — February 8, 2012
Reserve Fund balance: $150,000
$25.000 for Town Facilities expenses
The Police Station card access security system has experienced some major issues over the past year. The
system controls all door strikes and readers throughout the facility. The system is now at the end of
the useful life and the major components are unreliable. As a result of the age and the fact that the parts are
not available we are proposing a full replacement of all the hardware and replacing it with a new system with
expansion capability and increased storage space.
The new system will be integrated into the C -Cure 9000 platform that will also be used for the newly installed
security system for the DPW facility. This software has excellent expansion capabilities and will allow us to
spread the technology across the other Town and School buildings if and when we choose. We plan to
utilize the existing wiring and conduits. New card readers will be installed at all access points.
The replacement job will most likely take two days and cost just under $25k. Since this repair needs to be
expedited and presents a problem if it crashes we need to move ahead as soon as possible.
Joseph P. Huggins
Director of Facilities
Reading Public Schools
781- 670 -2824
James W. Cormier
Chief of Police
Town of Reading
781 -944 -1212
$5,000 for land appraisal
Town Meeting in the 2011 Subsequent Town Meeting authorized the sale of several parcels of land. The
Finance Committee advocated the sale for these parcels at the 2011 Financial Forums. The Town needs to
have appraisals of the parcels prior to offering them for sale. Two parcels are a priority at this time — Pearl
Street at Audubon Road, and Lothrop Road. The Town cannot proceed with the sale without the appraisals
in order to establish a minimum bid price.
Peter I. Hechenbleikner
Town Manager
Town of Reading
781 - 942 -9043
$4,000 for Town Forest Master Plan
The Town has conducted considerable background information including a forestry stewardship plan in
order to develop a Master Plan for the Town Forest property. This effort is consistent with the Town's other
efforts to develop Master Plans for other Town owned property including Memorial Park, Killam School,
Washington Park, the Birch Meadow complex, and Glen Meadow Park (Barrows School). A Master Plan for
the Town Forest requires more technical specialization than these other sites, however, and a proposal from
Mass Audubon has been submitted. The total cost is $9,000, and we have identified funding for $5,000 of
that cost. A grant application for the remaining $4,000 was not approved, and we would like to move
forward with the plan now while the weather is favorable for field work.
Peter 1. Hechenbleikner
Town Manager
Town of Reading
781- 942 -9043
10
Update
February 2, 2012
operating budgets = =>
3.60%
2.50%
2.50%
2.50%
NEW Dec 2011
Town of Reading
3.60%
One Year
One Year
One Year
Budget Summary
One Year
One Year
21111211:19 AM
Actual
Current
Changes
Projected
Changes
Projected
Changes
Changes
Changes
No.
FY -2011
FY -2012
FY -2012
FY -2013
FY -2013
FY -2014
FY - 2014
FY15
FY .2015
FY16
FY -2016
Revenues
Al Total Property Taxes
51,197,568
52,663,252
2.9%
54,149,272
2.8%
56,202,237
3.8%
-
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 lntergov'tRevenues
13,274,828
12,967,774
-2.3%
12,762,036
-1.6%
13,069,536
2.4%
A4 Total Transfers & Available
4,269,381
4,107,096
-3.8%
4,526,393
10.2%
4,426,254
-2.2%
83,734,633
3.50%
86,665,345
3.50%
A98 Revenues before Free Cash $ 74,993,171
$ 75,139,122 0.2%
$ 77,017,701 2.5%
$ 79,403,027 3.1%
A5 Free Cash 1,490,000
863,309 -42.1%
1,000,000 15.8%
1,500,000 50.0%
A99 Net Available Revenues $ 76,483,171
$ 76,002,431 -0.6%
$ 78,017,701 2.7%
$ 80,903,027 3.7%
Accommodated Costs
B Benefits
11,712,081
12,845,486
9.7%
13,310,885
3.6%
14,320,488
7.6%
C Capital 1,273,000
948,000 -25.5%
1,500,000 58.2%
1,900,000 26.7%
D Debt
6,158,003
6,063,446
-1.5%
5,644,235
-6.9%
5,409,911
-0.2%
E Energy 2,382,073
2,004,400 -15.9%
1,911,168 -0.7%
2,006,726 5.0%
F Financial
620,000
716,000
15.5%
740,000
3.4%
757,000
2.3%
G Education - Out of district -
3,702,751
3,841,067
3.7%
3,344,235
- 12.9%
3,511,447
5.0%
I`
r
H Education - Vocational
327,946
419,343
27.9%
325,000
- 22.5%
341,250
°
J Miscellaneous
2,841,367
2,807,790
-1.2%
2
3.2%
2.9%
K Community Priorities
125,000
0
504,55
0
NEW Dec 2011
32,792,717
5.00%
34,432,353
5.00%
Ll Annual Accommodated Costs $ 29,142,221
$ 29,645,532 1.7%
$ vJ0, 1790 1.8%
$ 31,231,159 3.5%
jUperating Costs
adjust for Nov 11 TM
OC1 Municipal Go'vl Operating
14,049,377
14,010,068
. 0.28%
14,542,380
3.61%
14,905,940
2.50%
15,572,900
2.50%
15,962,222
- 2.50%
adjustments (FY12 comm. priority)
25,000
100.00%
287,133
'
adjustments (enlfunds)
756,069
756,069
0.00%
771,190
2.00%
790,470
2.50%
810,232
2.50%
830,488
2.50%
TOTAL Muni Government
14,805,446
14,791,137
- 0.10%
15,313,571
3.53%
15,983,543
4.38%
16,383,132
2.50%
16,792,710
2.50%
OC2 School & Bldgs Operating
30,965,364
30,811,020
- 0.50%
32,049,069
3.60%
32,850,296
2.50%
34,012,681
2.50%
34,862,998
2.50%
adjustments (comm. priority)
-
124,375
- 0.50 ° /,
332,807
Schools circuit breaker adjustment for FY12
218,000
100.00%
TOTAL School & Bldgs
30,965,364
31,153,395
0.61%
32,049,069
2.88%
33,183,103
3.54%
34,012,681
2.50%
34,862,998
2.50%
OC3 Town Bldgs Operating Target
418,643
424,227
1.33 %
439,499
3.60%
450,487
2.50%1
461,749
2.50%1
473,293
2.50%
TOTAL Town Bids
418,643
424,227
1.33%
439,499
3.60%
450,487
2.50%1
461,749
2.50%1
473,293
2.50%
OC School, Town, Buildings
$ 46,189,453
$ 46,368,759
0.39%1$
47,802,139
3.09%1
$ 49,617,133
3.80%1
$ 50,857,561
2.50%1
$
52,129,000
2.50W
Municipal Go'vt Operating
32.05%
31.90%
32.040/6
32.21%
32.21%
32.21%
School & Bldgs Operating
67.04%
67.19%
67.05%
66.88%
66.88%
66.88%
Town Bldgs Operating Target
0.91%
0.91%
0.92%
0.91%
0.91%
0.91%
TOTAL EXPENSES L2 + 0C4)
$ 75,331,674
$ 75,796,291
0.6%
$ 77,981,156
2.9%
$ 80,848,292
3.7%
$ 83,650,278
3.5%
$
86,561,353
3.5%
Urp US a ICIt
$ 36,545
$ 54,735
$ 84,355
$
103,992
Community Priorities for the FY13 Budget
Phase One is a total of $504,557 during the Annual Town Meeting in April 2012. It is composed of:
$171,750 (34 %) in Town costs to pick up $69,750 of RCASA from October 1, 2012 — June 30, 2013 in case the grant is not
renewed and $102,000 in costs associated with adding a new police officer;
$332,807 (66 %) in School costs associated with $25,000 in health education materials, $257,807 in wages costs for new staff,
and $50,000 for PCs to help fund a replacement cycle for technology acquired often during recent school building projects.
Phase Two is a total of $115,383 in Town costs associated with adding another new police officer, expected to be voted during the
Subsequent Town Meeting in November 2012. Several years ago town, school and FINCOM members agreed that an oversight during
the building out of the landfill was identifying new costs and paying for these first with the new tax revenues. This police officer is in
response to several large building projects (Johnson Woods Phase II; Oaktree; Pulte Homes) and will be paid for by new growth
expected to be certified by the assessors above the base $250,000 FYI assumption. Thus recurring costs will be matched by recurring
revenues.
Below is a summary which will be described in more detail by each department during the FINCOM budget meetings:
Accommodated costs - community priorities
April'12 Nov'12
Police $
87,000
new officer wages +OT
$
15,000
new officer expenses
$
68,350
$
22,783
wages - RCASA 1 FT + 19hrs/wk
$
1,400
$
600
expenses - RCASA
$
87,000
new officer wages + OT
-
$
5,000
new officer expenses
$
171,750
$
115,383
Schools $
50,000
PCs
$
3,500
health education 5th grade materials
$
7,500
health education MS materials
$
14,000
health education HS materials
$
56,045
1.0 MS Health Educator
$
89,672
1.6 HS Health Educator
$
112,090
Behavioral Health Program Staff
$
332,807
$
-
TOTAL
504,557
115,383
Education:
Chapter 70
School Transportation
Charter Tuition Reimbursement
Smart Growth School Reimbursement
Offset Receipts:
School Lunch
School Choice Receiving Tuition
Sub - Total, All Education Items
General Government:
Unrestricted General Government Aid
Local Share of Racing Taxes
Regional Public Libraries
Urban Renewal Projects
Veterans' Benefits
State Owned Land
Exemptions: Vets, Blind, Surviving Spouses
& Elderly
Offset Receipts:
Public Libraries
Sub - Total, All General Government
Total Estimated Receipts
Massachusetts Department of Revenue
Division of Local Services
FY2013 Local Aid Estimates
FY2012
Cherry Sheet
Estimate
9,488,181
0
5,782
0
READING
FY2013
Governor's
Budget (H2)
9,903,702
0
6,769
Difference
415,521
0
987
0
16,921 17,152$1 u% 231
0 0 0
9,510,884 9,927,623 416,739
2,543,818 2,543,818 0
0 0 0
0 0 0
0 0 0
130,686 202,336 71,650
37,272 37,284 12
103,108 98,936 -4,172
23,727 25,436 tX�� "fit 1,709
2,838,611 2,907,810 69,199
12,349,495 - 12,835,433 485,938
cry
0 S
1-41306) 6u� 2sk-,M -P �
}u 9). , SAS
County Assessments:
County Tax
Suffolk County Retirement
Sub - Total, County Assessments
State Assessments and Charges:
Retired Employees Health Insurance
Retired Teachers Health Insurance
Mosquito Control Projects
Air Pollution Districts
Metropolitan Area Planning Council
Old Colony Planning Council
RMV Non - Renewal Surcharge
Sub - Total, State Assessments
Transportation Authorities:
FY2013 Local Aid Assessments
READING
FY2012 FY2013
Cherry Sheet Governor's
Estimate Budget (H2) Difference
0
0
0
0
0
0
0
0
0
7,286
7,685
399
7,154
7,796
642
0
0
0
13,980
13,260
-720
28,420
28,741
321
MBTA
472,315
522,885
50,570
Boston Metro. Transit District
0
0
0
Regional Transit
0
0
0
Sub - Total, Transportation Authorities
472,315
522,885
50,570
Annual Charges Against Receipts:
Special Education
9,530
0
-9,530
STRAP Repayments
0
0
0
Sub - Total, Annual Charges
9,530
0
-9,530
Tuition Assessments
School Choice Sending Tuition
21,344
10,000
- 11,344
Charter School Sending Tuition
61,452
42,978
- 18,474
Essex County Tech Sending Tuition
0
12,475
12,475
Sub - Total, Tuition Assessments
82,796
65,453
- 17,343
Total Estimated Charges
Released January 25, 2012
Q
593,061 617,079 24,018
(o Y (o, -eSr w�ke
-�- �1q(S
2011
EMPLOYEE BENEFITS Actual
Retirement
Retirement Assessment
$
2,878,456
Non Contrib Retirements
$
73,728
OBRA fees
$
10,989
OPEB Contributions*
$
-
Review of Employee Benefits:
Retirement and Insurance
February 2012
2012 2012 2012
Budget Actual Projection
$ 3,007,986
$ 3,007,986
$
3,007,986 $
$ 75,000
$ 37,071
$
63,551 $
$ 15,000
$ 13,466
$
15,000 $
$ 0
$ -
$
500.000 $
2012
$
2013
vs. 2012
vs. 2012
Surplus
3,058,523
Budget
Proj.
Budget
-
$
3,110,885
3.42%
3.42%
11,449
$
65,000
2.28%
- 13.33%
-
$
15,000
0.00%
0.00%
(500,000)1
$
420,000
- 16.00%
100.00%
$ 7,591,683 1 $ 8,562,500 $ 5,216,180 $ 7,971,500 $ 591,000 1 $ 8,468,750 6.24% -1.09%
*FY12 - $600k projected savings includes $113,560 in refund from Federal Early Retiree Program. This was designed to cover 80% of
expenses between $15 -$90k for early, ( <65yr old) retirees. Balance of savings a combination on change in plan design negotiated after
April 2011 Town Meeting budget and modest enrollments.
*FY13 - $8.4 million budget allows for a mid year Medex increase plus 3% enrollment increases compared to current run rate.
TOTAL R +H /L $10,554,856 1 $11,660,486 $ 8,274,703 $11,558,037 $ 102,449 1 $12,079,635 4.51%1 3.59%
Health Insurance 32 -month
$
2,963,173
1 $
3,097,986
$
3,058,523
$
3,586,537
$
(488,551)1 $
3,610,885
0.68%
16.56%
*Assumes $500k FY12 contribution at April 2012 Town Meeting
from excess FY12
health insurance
premiums
723
691
Health & Life Insurance
1,078
1,070
1,037
3.5%
-0.5%
0.7%
3.2%
Professional Services
$
-
$
20,000
$
16,000
$
40,000
$
(20,000)1 $
25,000
- 37.50%
25.00%
Health Insurance **
$
7,562,632
$
8,500,000
$
5,182,249
$
7,900,000
$
600,000 $
8,400,000
6.33%
-1.18%
Life Insurance
$
29,051
$
42,500
$
17,931
$
31,500
$
11,000 $
43,750
38.89%
2.94%
$ 7,591,683 1 $ 8,562,500 $ 5,216,180 $ 7,971,500 $ 591,000 1 $ 8,468,750 6.24% -1.09%
*FY12 - $600k projected savings includes $113,560 in refund from Federal Early Retiree Program. This was designed to cover 80% of
expenses between $15 -$90k for early, ( <65yr old) retirees. Balance of savings a combination on change in plan design negotiated after
April 2011 Town Meeting budget and modest enrollments.
*FY13 - $8.4 million budget allows for a mid year Medex increase plus 3% enrollment increases compared to current run rate.
TOTAL R +H /L $10,554,856 1 $11,660,486 $ 8,274,703 $11,558,037 $ 102,449 1 $12,079,635 4.51%1 3.59%
Health Insurance 32 -month
Enrollment - general fund Change
Feb 2012
June 2011
June 2010
June 2009
Town -2.3%
338
345
347
346
Schools 6.4%
735
733
723
691
1,073
1,078
1,070
1,037
3.5%
-0.5%
0.7%
3.2%
\/
No.
At
A2
A3
A4
A5
Update
February 2, 2012
Town of Reading
One Year
One Year
One Year
Revenues - Details
Actual
Current
Changes
Projected
Changes
Projected
Changes
21711211:19 AM
FY -2011
FY -2012
FY - 2012
FY -2013
FY -2013
FY .2014
FY -2014
Property Taxes
Tax levy (within levy limit)
49,274,826
50,878,533
3.3%
52,483,622
3.2%
54,051,962
3.0%
New Growth
362,768
325,000
- 10.4%
250,000
- 23.1%
750,000
200.0%
Tax levy (debt exclusion)
2,086,657
2,059,719
-1.3%
2,030,650
-1.4%
2,030,650
0.0%
Abatements and exemptions
526,683
(600,000)
13.9%
615,000
2.5%
630,375
2.5%
Total Property Taxes
51,197,568
1 52,663,252
2.9%j
54,149,272
2.8%j
56,202,237
3.8%
Other Local Revenues
Motor Vehicle Excise
2,936,623
2,700,000
-8.1%
2,800,000
3.7%
2,900,000
3.6%
Meals Tax
172,770
200,000
15.8%
225,000
12.5%
250,000
11.1%
Penalties /interest on taxes
192,636
145,000
- 24.7%
175,000
20.7%
175,000
0.0%
Payments in lieu of taxes
327,291
315,000
-3.8%
325,000
3.2%
325,000
0.0%
Charges for services
1,502,913
1,475,000
-1.9%
1,475,000
0.0%
1,475,000
0.0%
Licenses & permits
156,138
156,000
-0.1%
135,000
-13.5%
135,000
0.0%
Special Assessments
1,543
10,000
548.1%
10,000
0.0%
10,000
0.0%
Fines
111,590
130,000
16.5%
110,000
- 15.4%
110,000
0.0%
Interest Earnings
355,700
200,000
-03.8%
225,000
12.5%
225,000
0.0%
Medicaid Reimbursement
112,468
70,000
- 37.8%
100,000
42.9%
100,000
0.0%
Other
381,722
Total Other Local Revenues
6,251,394
1 5,401,000
-13.6%
5,580,000
3.3%
5,705,000
2.2%
Intergovernmental Revenue
Stale Aid
12,462,792
12,307,474
-1.2%
12,300,0
-0.1%
12,607,500
Federal ARRAIState refund
350,000
198,264
- 100.0%
0.0%
MSBA
462,036
462,036
0.0%
462,036
0.0%
462,036
0.0
Total Inter ov't Revenues
13,274,828
12,967,774
-2.3%
12,762,036
-1.6%
13,069,536
2.4%
Operating Transfers and Available Funds
Cemetery sale of lots
25,000
25,000
0.0%
25,000
0.0%
25,000
0.0%
Sale of real estate funds
300,000
300,000
0.0%
250,000
-16.7%
200,000
-20.0%
Reading Ice Arena Authority
95,000
100,000
5.3%
100,000
0.0%
100,000
0.0%
MSBA payments
696,990
720,070
3.3%
743,150
3.2%
743,150
0.0%
WILD earnings distribution
- 2,171,880
2,205,957
1.6%
2,261,106
2.5%
2,317,634
2.5%
Enterprise Fund Support
756,069.
756,069
0.0%
771,190
2.0%
790,470
2.5%
Sick buy -back Stabilization
19,615
Overlay surplus
204,827
-
- 100.0%
375,947
100.0%
250,000
100.0%
Total Transfers & Available
4,269,381
4,107,096
3.8%
4,526,393
10.2 ° /
4,426,254
-2.2%
OPERATING REVENUES
74,993,171
75,139,122
0.19%
77,0
2.50%
79,403,027
3.10°
Free Cash & Savings
1,490,000
863,309
1,000,00
1,500,000
TOTAL REVENUES
76,483,171
76,002,431
-0.63%
78, , 01
2.65%
80,902 T
3.7
6130112 4500k estimated & recognized lyr later here
after Fin'I Forum per Assessors -$60k
FY12 increased by $200,000
FY 12 increased by $50,000
FY12 decreased by $200,000
assume FY14 improves +2.5%
FY12 one -time refund - $200,000
Dec'11
:$500k lowertha:previ:ous:1,:50D,000
Update
February 2, 2012
Town of Reading
Accom Costs. Summary
One Year
One Year
One Year
21711211:19 AM
Current
Voted
Changes
Projected
Changes
Projected
Changes
No.
FY -2011
FY -2012
FY - 2012
FY -2013
IFY.2013
FY -2014
IFY -2014
12,845,486
9.7%
B Benefits 11,112,081
13,310,885
3.6%
14,320,488
7.6%
C Capital
1,273,000
948,000
- 25.5%
1,500,000
58.2%
1,900,000
26.7%
D Debt
6,158,003
6,063,446
-1.5%
5,644,235
-6.9%
5,409,911
-4.2%
E Energy
2,382,073
2,004,400
- 15.9%
1,911,168
-4.7%
2,006,726
5.0%
F Financial -
620,000
716,000
15.5%
740,000
3.4%
757,000
2.3%
G Education - Out of district
3,702,751
3,841,067
3.7%
3,344,235
- 12.9%
3,511,447
5.0%
H Education - Vocational
327,946
419,343
27.9%
325,000
- 22.5%
341,250.
5.0%
J Miscellaneous
2,841,367
2,807,790
-1.2%
2,898,937
3.2%
2,984,337
2.9%
K Community Priorities
$ 125,000
$ 504,557
TOTAL Accommodated COSTS
$ 29,142,221
$ 29,645,532
1.7%
$ 30,179,017
1.8%
$ 31,231,159
3.5%
cconn Costs - e al
B Accommodated Costs - Benefits
61 Group Health / Life Ins.
7,625,000
8,562,500
12.3%
8,468,750
-1.1%
9,315,625
10.0%
OPEB
25,000
0
- 100.0%
445,000
00.0%
420,000
-5.6%
132 Workers Compensation
305,000
325,000
6.6%
34 ,
5.0%
358,313
5.0%
B3 Police / Fire Indemnification
57,750
- 60,000
3.9%
65,000
8.3%
70,000
7.7%
84 Contributory Retirement
2,893,456
3,022,986
4.5%
3,125,885
3.4%
3,266,550
4.5%
85 Non - Contrib. Retirement
73,500
75,000
2.0%
65,000
- 13.3%
65,000
0.0%
86 Medicare / Social Security
607,375
650,000
7.0%
675,000
3.8%
700,000
3.7%
87 Unemplo ment Benefits
125,000
150,000
20.0%
125,000
- 16.7%
125,000
0.0%
699 Total Benefits
$ 11,712,081
$ 12,845,486
9.7%
$ 13,310,885
3.6%1$
14,320,488
7.6%
C +C5 %of net available revs
3,586,647
3,594,165
3,688,427
3,807,693
Energy Savings to pay debt service
$ 319,735
$ 300,000
$ 300,000
$ 300,000
above the
3,906,382
3,894,165
3,988,427
4,107,693
less debt (net, inside levy)
(2,897, 776)
(2,807, 632)
(2,395, 068)
(2,160, 744)
Available for cash capital
1,008,606
1,086,533
1,593,359
1,946,949
C Accommodated Costs- Capital
C99 Total Capital
$ 1,273,000
$ 948,000
- 25.5%
$ 1,500,000
58.2%
$ 1,900,000
26.7%
D Accommodated Costs - Debt (net inside levy limit)
4,185,000
0.5%
3,915,580
-6.4%
3,715,580
-5.1%
D1 DebtService - Principal 4,165,000
D2 DebtService - Interest
1,993,003
1,878,446
-5.7%
1,728,655
-8.0%
1,694,331
-2.0%
D3 Excluded debt
(2,798,191)
(2,793,778)
-0.2%
(2,787,131)
-0.2%
(2,787,131)
0.0%
D4 MSBA reimbursements
(462,036)
(462,036)
0.0%
(462,036)
0.0%
(462,036)
0.0%
Total Included Debt
$ 2,897,776
$ 2,807,632
-3.1%
$ 2,395,068
- 14.7%
$ 2,160,744
-9.8%
099 Total Debt
$ 6,158,003
$ 6,063,446
-1.50/6
$ 5,644,235
-6.9%1
$ 5,409,911
-4.2%
updated 12/22/11
Chigher previous 9,418,750
n previous
5%
73,768,534
Update
February 2, 2012
Town of Reading
327,946
270,692
-17.5%1
200,000
- 26.1%
210,000
5.0%
H2 Vocational School Assessments - M.M.
Accom Costs - Detail
148,651
100.0%
One Year
-15.9%1
131,250
One Year
199 Total Education - Voke $
One Year
21711211:19 AM
Actual
Voted
Changes
$ 341,250
Projected
Changes
Projected
Changes
No.
FY•2011
FY -2012
FY - 2012
FY .201
IFY•2013
FY•2014
IFY -2014
1,500,000
1.9%
E Accommodated Costs • Energy
0.0% Town Nov'11
J2 Snow and Ice Control
525,000
'
7.6%
E1 Street Lighting
241,500
203,575
- 15.7%
J3 State Assessments
200,000
-1.8%
210,000
5.0%
E2 Heating of Buildings -Town
143,250
87,700
- 38.8%
186,995
93,000
6.0%
97,650
5.0%
E3 Heating of Buildings- Schools
760,000
467,115
- 38.5%
145,661
456,358
-2.3%
479,176
5.0%
E4 Utilities -Town
178,800
187,950
5.1%
0.9%
173,050
-7.9%
181,703
5.0%
E5 Utilities - Schools
837,193
761,730
-9.0%
$ 2,898,937
708,760
-7.0%
744,198
5.0%
E6 Fuel - vehicles (in DPW budget)
221,330
296,330
33.9%
280,000
-5.5%
294,000
5.0%
E99 Total Ener
$ 2,382,073
$ 2,004,400
•15.9%
$
1,911,168
-0.1%
$ 2,006,726
5.0%
F Accommodated Costs - Financial
F1 Casualty Insurance
320,000
316,000
-1.3%
340,000
7.6%
357,000
5.0%
F2 Veteran's Assistance
150,000
250,000
66.7%
250,000
0.0%
250,000
0.0%
F3 FINCOM Reserve Fund
150,000
150,000
0.0%
150,000
0.0%
150,000
0.0%
F99 Total Financial
$ 620,000
$ 716,000
15.5%
$
740,000
3.4%
$ 757,000
2.3%
G Accommodated Costs - Education Out of district
893,000
-0.2%
954,000
6.8%
1,001,700
5.0%
G1 Out of district SPED transportation 895,000
G2 Out of district SPED tuition
3,849,751
3,832,067
-0.5%
3,680,235
4.0%
3,864,247
5.0%
G3 Out of district SPED rev. offsets
(709,292)
(884,000)
24.6%
(1,290,000)
45.9%
(1,354,500)
5.0%
G4 Out of district SPED carry forward
G5 ARRA IDEA Funds
332,708
G99 Total Education - Out of distr.
$ 3,702,751
$ 3,841,067
3.7%
$
3,344,235
•12.9%
$ 3,511,447
5.0%
H Accommodated Costs- Education Vocational School $270,693/23= $11.7k,$12.4k( +5 %)x16- $200k for FY13
Schools Dec'l1
Schools Dec'l1
Schools Dec'l1
Schools Dec'l1
Town Dec'11
Schools Dec'l1
Schools Dec'l1
Schools Dec'l1
H1 Vocational School Assessments - N.E.
327,946
270,692
-17.5%1
200,000
- 26.1%
210,000
5.0%
H2 Vocational School Assessments - M.M.
0
148,651
100.0%
125,000
-15.9%1
131,250
5.0% $114k FY12
199 Total Education - Voke $
327,946
$ 419,343
27.9%
1 $ 325,000
-22.5%1
$ 341,250
5.0%
J Accommodated Costs - Miscellaneous
J1 Rubbish Collection /Disposal
1,560,770
1,472,159
-5.7%
1,500,000
1.9%
1,500,000
0.0% Town Nov'11
J2 Snow and Ice Control
525,000
565,000
7.6%
600,000
6.2%
650,000
8.3%
J3 State Assessments
568,602
585,870
3.0%
617,079
5.3%
647,933
5.0%
Cemetery
186,995
184,761
-1.2%
181,858
-1.6%
186,404
2.5% Town Dec'l1
J4 Salaries and Wages
148,226
145,661
-1.7%
142,758
-2.0%
146,327
2.5%
J5 Expenses
38,769
39,100
0.9%
39,100
0.0%
40,078
2.5%
199 Total Miscellaneous $
2,841,367
$ 2,807,790
-1.2%1
$ 2,898,937
3.2%1
$ 2,984,337
2.9%
O
Policy establishing an ad hoc Town Accountant Screening Committee
There is hereby created an ad hoc Town Accountant Screening Committee. The
Screening Committee shall consist of four (4) members appointed by the Board of
Selectmen for terms expiring June 30, 2012 or such earlier date that the committee may
have completed its work. The Board of Selectmen shall select the chairman of the
Committee.
In selecting the membership, the Board of Selectmen shall attempt to fill the
membership as follows:
♦ Two members of the Board of Selectmen
One member of the School Committee appointed by the School Committee
One member of the FINCOM appointed by the FINCOM
The mission of the Screening Committee is to work with the Human Resources
Administrator to generate applications for the position of Town Accountant and provide
a recommendation to the Board of Selectmen on the most qualified person(s) for the
position. In doing its work, the Screening Committee shall:
♦ Review the job description of the Town Accountant
♦ Review the advertising and recruitment plan for the position
♦ Approve a schedule so that a new Town Accountant can begin work on or about
June 15, 2012
♦ Develop screening criteria for applicants
♦ Screen initial applicants;
♦ Narrow the field to a number that the Screening Committee can reasonably
interview
♦ Interview candidates,
♦ Select 1 or 2 finalists to be recommended to the Board of Selectmen, and cause
reference checks to be done on the finalists.
In conducting its work, the Screening Committee will be bound by all of the rules and
regulations of the Town of Reading and the Commonwealth of Massachusetts, including
but not limited to the Open Public Meetings law. The Town Manager will provide staff
support to the Screening Committee and the Committee will be considered to be part of
the Department of Administration for administrative purposes.
Adopted 1 -24 -12
l�Y
TOWN OF READING
Finance Committee Liaisons — as of 2/8/2012
Name /Address/Email Telephone Liaison Assignments
Marsie West ('03-12), Chair
781- 942 -0604 (H)
Board of Selectmen
3 Whitehall Lane
617 -382 -2865 (W)
Audit Committee
Marsie.westtrtbnvmel lon.com
781- 944 -8224 Library
Schools
David Greenfield ('05 -14), Vice Chair
781- 942 -2072 (H)
Board of Selectmen
192 Woburn Street
617- 662 -7210 (W)
Audit Committee
dgreenfield(r,,statestreet.com
77 Sunnyside Ave
Accounting/Finance
John Arena ('11-'12)
TBA (H)
Economic Development
26 Francis Drive
Public Safety
john iarenaRemai I.com
Barry Berman ('07-'14)
781- 942- 7907(H)
Schools
54 Longview Road
781- 684- 5705(W)
bcberman tib,comcast. n et
barrv. be rm anamban ko fameri ca. com
Jeanne Borawski(' 12 -' 12)
617 - 723 -5744
Community Services
3 Deer Path Lane
Public Safety
Jeanne borawskiahotmail.com
Mark Dockser ('10 -13)
781- 942- 7586(H)
RMLD
110 Beaver Road
Public Works
mdockser(@,Vmail.co
Marie Ferrari (' 11 -13)
781- 944 -2748
20 Crosby Road
,glapointe(@,ci.reac1imz.ma.us
marl a ferrari(i4veri zon. net
Paula Perry ('I 1 -'14)
781- 944 -8224 Library
40 Beaver Road
Board of Assessors
i)ii)erry(@,comcast.net
(Schools)
Bob LeLacheur
1
Harold S. Torman ('03 -12)
781 - 942 -2794 (H) Public Works-'.
77 Sunnyside Ave
Economic Development
Hal.Tormana,lantheus.com
Schools
ADMINISTRATION
Peter Hechenbleikner 942- 9043(W) Town Manager
phechenbleikner (rD,ci.readina.ma.us
John Doherty 944- 5800(W) Superintendent of Schools
dohertv(ad,readi ng.k l2.ma.us
Gail LaPointe
942- 6604(W)
Town Accountant
,glapointe(@,ci.reac1imz.ma.us
Mary DeLai
942- 5800(W)
Director of Finance & H.R.
mdelai 7a,reading.k 12.ma.us
(Schools)
Bob LeLacheur
942- 6636(W)
Asst. Town Manager /Finance
blelacheur(r,ci.readin-.m�a.us
942- 9805(H)
Director (Town)
�2
rR Finance Committee Meeting
e October 12, 2011
^� r Conference Room, Reading Town Hall
0 r
°'' ��oa�� DRAFT Minutes
The meeting convened at 7:40 p.m. at the Senior Center, 49 Pleasant Street, Reading, Massachusetts.
Present were Finance Committee members Marsie West, Marie Ferrari, Hal Torman, Paula Perry, Mark
Dockser, David Greenfield, Barry Berman, and John Arena; Selectmen Camille Anthony, Ben Tafoya
and James Bonazoli; School Committee members Chuck Robinson and Chris Caruso, Town Manager Peter
Hechenbleikner, Assistant Town Manager /Finance Director Bob LeLacheur, Superintendent of Schools John
Doherty, Mary Delai, Town Accountant Gail LaPointe, Fire Chief Greg Bums, Police Chief James Cormier,
Town Planner Jean Delios, Public Works Director Jeff Zager, Public Works Business Manager Jane
Kinsella, Library Director Ruth Urell, Office Manager Paula Schena, Bill Brown, and Dick Curtis.
Review of Revenue Ideas from Instructional Motion - The Town Manager noted that the process for selling
land parcels and selling timber in the Town Forest has been started. Rental of existing spaces is ongoing and
the School Committee approved a policy for naming rights.
Moving at a slower pace are potential cell towers, advertising/billboards because there are no town owned
places in Reading that qualify. The Board of Selectmen decided to leave parking fees at the depot
unchanged. The possibility of offering ambulance to other towns will have to be studied.
Ideas that have been discarded include preferred parking at the high school; gas tax on the Town; raising
parking tickets /parking meters.
Marsie West asked the Selectmen about their decision not to increase parking rates at the depot. Camille
Anthony noted that James Bonazoli put forth a motion to raise parking /compost to $50 and then have a
separate sticker just for the compost center at $25. The concern was they don't want to discourage the use of
public transportation.
Ben Tafoya noted that the depot stickers are only for residents, not out -of- towners who park in the
neighborhoods..When the MBTA raised fees they lost 28% of the parkers.
Marie Ferrari asked if on streets with parking with a sticker only if residents will be ticketed if they park in
front of their homes. Chief Cormier noted that people who have restricted parking in front of their home can
get a sticker for free, but it does not include the compost center.
School Committee member Chris Caruso indicated this is outside the purview of the Finance Committee and
suggested moving on.
Project Updates and Financial Tools for Economic Development — Town Planner Jean Delios updated the
Committee on the current status of developments throughout town. She noted that financial tools include
work smart permitting, simplifying regulations, public /private partnerships, and a request to increase the
threshold for site plan review that is going to Town Meeting. She also noted that an Alternate Building
Inspector has been hired for one day a week to help out the Building Inspector.
Barry Berman asked what will happen to the Calareso's old site. Jean Delios indicated she is encouraging a
high end use. Ben Tafoya noted that the Selectmen are pushing the state hard to signalize that intersection.
D
The Town Manager noted that Pulte is putting up $50,000 for the intersection design and then MassDOT will
install the signal.
Jean Delios noted that MF Charles is focusing on the ground level first and ultimately there will be
residential units upstairs.
Recap of Free Cash and Reserves — Town Accountant Gail LaPointe noted that the total reserve is
$7,079,462 which equals 9% of the total revenues. She noted that the Finance Committee policy is to keep
5% for reserves. FINCOM Reserve money was used for building safety and that will be replenished at Town
Meeting.
Projected FYI Revenues — Gail LaPointe noted that many revenues are over the estimates including excise
taxes, property taxes, refunds from prior years expenses, MIIA credits and FEMA reimbursement. There
was also an increase in meals tax and one time state aid.
Undate on Capital — The Town Manager noted that we are receiving one time revenues from Smart Growth,
one time state aid and reprogrammed debt. He proposes to use $1.25 million as follows: $50,000 into the
Housing Trust; $50,000 for a school building study; $50,000 for pedestrian improvements; $250,000 for road
improvements in neighborhoods and $55,000 for the West Street 100% design.
Library Project - Ruth Urell noted that the Library is 116 years old. The Library Board reviewed their needs
and decided to update and add on to the current Library was best. Reading is on the list for grant funding
and if it is granted it will need Town Meeting vote and a special election.
Killam Elementary School — Superintendent John Doherty and Mary DeLai were present. Mary DeLai noted
that when we did the Green Repair that we would be required to be ADA compliant if we spent over a
certain amount of money so we just replaced the roof at Killam. We did over $2 million in repairs and
improvements. We can't do any major repairs for three years unless we do the ADA upgrades too. The
majority of the work is in the bathrooms with an estimated cost of $1.6 million with a 10% contingency. To
do everything would be $4.9 million. The main office alone would cost $1.3 million and MSBA might not
reimburse for that.
Preliminary FY13 Accommodated Costs - Bob LeLacheur noted that accommodated costs include health
insurance, Medicare. debt and capital and education. The operating budgets are 1% in the negative. The
revenues are not enough to cover accommodated costs. Mr. LeLacheur noted there are three scenarios
including #1 —no use of reserves; #2 —operating budget plus 1%; and #3 — target use of free cash.
Bob LeLacheur noted that if no reserves are used in FY13 we will have to cut 1.5 %. If we use +I%
operating budgets then we run out of free cash in FY16. He prefers that free cash be used to address health
insurance cost because that is an unknown until the last minute and then the departments are cutting at the
last minute.
Camille Anthony noted she would prefer the expense discussion first. She is not ready to talk about free
cash right now.
Bob LeLacheur also noted that some level of free cash should be kept for the bond rating.
Chuck Robinson noted that every year money goes back to the Town. He feels we cannot keep dismantling
the budgets. He feels some free cash should be used to keep things going. Bob LeLacheur noted that due to
the line item discipline of the Town budget there will always be a surplus.
1y
Ben Tafoya noted we are not using free cash to increase our operations. He also noted that $1 million in free
cash is only 0.7% and he would rather do that.
Barry Berman asked about the level of new growth. The Town Manager noted that approximately I%.
There was much discussion among the Finance Committee members regarding the amount of free cash to
use.
A motion by Bonazoli seconded by Tafova that the Board of Selectmen adjourn their meeting at 10:20
n.m. was approved by a vote of 3 -0 -0.
Reserve Fund Transfer
Mr. LeLacheur explained the problem at the Police station with leakage getting into the electrical panel, and
that is was urgent to repair even before the upcoming November Town Meeting which could provide funds.
Chief Cormier explained several of the attempted remedies by Mr. Huggins from the facilities department,
and how none had completely fixed the problem. A memo from Mr. Huggins also gave further background,
and suggested that a $50,000 solution involving digging up underground cables and completely rebuilding
the connection above ground was the best permanent solution at this point.
On a motion by Mr. Dockser seconded by Mr. Torman, FINCOM voted 8 -0 -0 to approve a Reserve
Fund transfer in the amount of $50,000 to account #03923460 - 524306 School Department S390.
RMLD Agreement
Ms. West reviewed the long -term payment agreement with RMLD that is set annually based on changes to a
local CPI. She reported that the Audit Committee had discussed this because a recent year had seen a
decrease in the CPI and therefore the payment declined slightly.
November Town Meeting Warrant
Mr. LeLacheur reviewed several items that FINCOM would be voting at their next meeting. Ms. West asked
to add Article 29 (a proposed Charter amendment about the role of the Board of Selectmen in the annual
budget process) to the list of material to review. Hr. Hechenbleikner asked that all write -ups be back to Town
Hall by noon on October 25`".
On a motion by Mr. Berman seconded by Mr. Greenfield. FINCOM voted 8 -0 -0 to adjourn at 11:00
Respectfully submitted,
Recording Secretary
LU
rRFgo Finance Committee Meeting
"° October 19, 2011
Q. a .a 'moo
Conference Room Reading Town Hall
�9'�NCOPO�p . 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 subiect
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 M WRA
debt authorization for Haverhill St.
On a motion by Mr. Dockser seconded by Mr. Torman. FINCOM voted 7 -0 -0 to recommend the
subject 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 $281 k 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
1b
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; $lOk 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 4011 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 project 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
subject 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.
V/
�1
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
subject matter of Article 10. Ms. Perry will provide the write -up and report these votes to Town Meeting.
Article I I
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 bV Mr. Torman seconded bV Ms. Perry, FINCOM voted 7 -0 -0 to recommend the subject
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
subject matter of Article 12. Mr. Greenfield 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 subject
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 subject matter of Article 29. Ms. West will provide the write -up and report these votes
to Town Meeting.
�O
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 adiourn at 9:35 pm.
Respectfully submitted,
Recording Secretary
Finance Committee Meeting
November 14, 2011
Performing Arts Center, Reading Memorial High School
DRAFT Minutes
The meeting convened at 7:05 p.m. at the Performing Arts Center at the RMHS in
advance of the 2011 Subsequent Town Meeting. Present were Finance Committee Chair
Marsie West, Vice Chair David Greenfield, and members John Arena, Barry Berman,
Mark Dockser, Marie Ferrari, Paula Perry and Hal Torman (one position is open). Also
present was Assistant Town Manager /Finance Director Bob LeLacheur.
Mr. LeLacheur explained that no building permit had been awarded to Oaktree and
therefore the proposed $281,000 transfer from the 40R Stabilization Fund to allow
$231,000 in additional road repairs and $50,000 in additional pedestrian improvements
would all be stricken from Article 5.
Mr. LeLacheur also presented a revised financial methodology for the Howard Street
water main project. Article 8 will now only authorize additional debt for the two projects
for Haverhill & Howard streets. Both projects are eligible for interest -free loans from the
MWRA. Previously Article 8 as presented to FINCOM provided funding for the Howard
Street project. Article 5 will now contain that funding instead. The total increase of
$414,500 in capital costs for these projects will be paid for by a $228,500 reduction in
FY 12 water debt service plus a $250,000 use of water reserves. Note there is also a
$64,000 water capital request for a hydraulic study.
A motion by Mr. Greenfield seconded by Mr. Dockser to recommend Article 5 as
revised was approved by a vote of 8 -0 -0.
A motion by Mr. Torman seconded by Ms. Ferrari to recommend Article 8 as
revised was approved by a vote of 8 -0 -0.
Mr. LeLacheur updated Article 6, the payment of prior year's bills, to include a recent
union grievance settlement of $1,704.05 for DPW /Highway wages paid for out of grade
work. This brings the new total for Article 6 to $15,976.12
A motion by Mr. Greenfield seconded by Mr. Arena to recommend Article 6 as
revised was approved by a vote of 8 -0 -0.
On a motion by Mr. Torman seconded by Ms. Perry, FINCOM voted 8 -0 -0 to
adjourn at 7:30 pm.
Respectfully submitted,
Recording Secretary
O
Finance Committee Meeting
January 3, 2012
The meeting convened at 7:00 p.m. in the Selectmen's Meeting Room, 16 Lowell Street,
Reading, Massachusetts. Present were Finance Committee members Marsie West, John
Arena, Marie Ferrari, Paula Perry and Hal Torman; Selectmen Camille Anthony, Stephen
Goldy, Ben Tafoya, James Bonazoli and Richard Schubert; Town Manager Peter
Hechenbleikner, Assistant Town Manager /Finance Director Bob LeLacheur, Office Manager
Paula Schena, Paul Feely, Michele Sanphy, Andrew Jeremski, Niloo Hennings, Noah Hennings,
Jacob Hennings, School Committee members Hal Croft, Chuck Robinson, Chris Caruso; Light
Board members Phil Pacino and Bob Soli,; Patty DeGaravilla, Vinnie Cameron, Erin Calvo-
Bocci, John E. Carpenter, Carolyn Whiting, Erica McNamara, Tom Zaya, Donna Dudley, Robyn
Parker, Karen Herrick, Mark Cardono, Angela Binda, Roberta Sullivan, Everett Blodgett,
Virginia Blodgett, Sharlene Reynolds Santo, Virginia Adams.
Discussion /Action Items
Review OPEB Actuarial Study with Finance Committee, School Committee and Reading
Municipal Light Board — The Finance Committee and School Committee called their meeting to
order at 7:26 p.m.
Kathleen Riley from the Segal Company was present. She noted they are an employee benefit
firm who has done evaluations for several communities. She looked at the average cost of
benefits including the trend of benefits and mortality assumption. Ms. Riley noted the Town has
$93 million in unfunded liability. The Annual Required Contribution for fiscal year 2011 is
$6,560,000. The RMLD has funded $1 million. She noted that if the Town funds $4.2 million
then the amount drops to $63 million due to a change in the discount rate. If the Town sets aside
$2 million in a trust then we could do the calculation on a 7.75% discount.
Camille Anthony noted that the amount of liability has a negative effect on the Town's bond
rating.
Presentation from Town Manager, RCASA Director, Superintendent of Schools, Police Chief re:
Response to Substance Abuse and Violence — The Town Manager noted this is in response to the
discussion in the community on substance abuse and violence.
RCASA Director Erica McNamara noted that her goal is to convene the stakeholders to develop
coordinated strategies to reduce substance abuse. The RCASA has recruited and trained youth
leaders; have reached over 900 people last year and helped institute the prescription drug return
program. She is in the process of preparing a $125,000 grant application.
The Town Manager noted that the grant monies are done by September 2012 so if we don't
received additional funding, then we would have to fund this ourselves.
Erica McNamara noted that the RCASA works with the schools and PTO's and also does TIPS
training. There has been a reduction in drug use in the middle schools and the high school in
specific key areas.
tiv
Finance Committee Meeting — January 3, 2012 — page 2
Camille Anthony asked if the RCASA is reaching out to adults and Erica McNamara noted that
the funding requires a focus on youth but the information is available to anyone. Camille
Anthony asked for information on which liquor licenses have contacted RCASA.
James B6nazoli noted that the Board continues to hold liquor licensees accountable and
suggested that RCASA should see if they will help.
Donna Dudley noted that the message she received regarding the lock down at the high school
was confusing. Chief Cormier noted that no contraband was found but the canines alerted on
odors in three different areas.
Chief Cormier noted that there has been an increase in population. He also noted that the
increase in crimes is related to substance abuse. He is suggesting an increase of one Officer in
the Police Department. He noted that RCASA has helped a lot and an additional officer could
focus on issues.
The Town Manager noted that the new growth figures in the fall will probably require an
additional officer also. Richard Schubert asked if $76,000 was for FY13 and Town Manager
indicated it was and it was noted that $100,000 would be needed for a full year.
Camille Anthony asked what the call rate at Archstone is and Chief Cormier noted that any
densely populated area will need additional services. He will get the numbers for her.
Marsie West asked if there was any research on how effective we have been on deterring drug
use. Chief Cormier noted that they have been successful in deterring drugs in the schools.
John Doherty noted that there is a strong collaboration with Erica McNamara and Police to be
proactive and this is unique to Reading. His concern is with the behavioral health of the students
regarding anxiety and stress. They have formed a behavioral health task force and they came up
with 25 changes.
Camille Anthony noted that the kids need a Teen Center and the Town should head down that
path. John Doherty noted that there are plenty of activities at the High School level, but not so
much for the younger group.
Paula Perry asked if there will be increased demands on guidance counselors and John Doherty
noted that they will need additional staffing in the high school guidance, but guidance needs to
be defined as academic or social.
Respectfully submitted,
Secretary
U./
FINCOM FY12 Schedule
(All meetings are Wednesday at 7:30pm in Town Hall, unless noted)
2011
du}y 3 regular meeting (Monday at RMHS joint with School Committee)
c °tee: zTregular meeting
September 27 Warrant closes for November Town Meeting
Oeteber -12 Financial Forum (at the Senior Center)
Oetober49 regular meeting to vote Warrant Articles
s1.,..eonbe 14 17 21 28 Subsequent Town Meeting (begins Monday at RMHS)
2012
January' 9 School Committee School budget meeting (Monday 7.30pm at RMHS)
aanuarq 12 School Committee School budget meeting (Thursday 7:30pm at RMHS)
January 1 Selectmen Town budget meeting (Tuesday 7pm - location TBA)
January 1 School Committee School budget meeting (Thursday 7 :30pm at RMHS)
danuary 23 School Committee Public Hearing (Monday 7 :30pm at RMHS)
Jwnuary24 Selectmen Town budget meeting ('Tuesday 7pm - location TBA)
danwwy, 26 School Committee School budget vote (Monday 7:30pm at RMHS)
3anuary23 ❑:...,..eial Fefufn 11 rnr]C °LLED
February 8 regular meeting
February 28 Warrant closes for April Town Meeting
February 29 FYI Budget Meetings (Town depts.)
March 6 Presidential Primary & local elections
March 7 FY13 Budget Meetings (Town depts. - at RMLD)
March 14 FYI 3 Budget Meetings (Town depts.. - at RMLD)
March 21 FYI Budget Meetings (Schools & Facilities - at RMLD)
March 28 FYI Budget Meetings (Vote on Budget & Warrant articles)
April 11 regular meeting
April 23 -26 -30 -May 3 Annual Town Meeting (begins Monday at RMHS)
June 27 Year -end meeting
Robert Soli statement before Reading Finance Committee
8 February 2012
The current Light Board controversy regarding Renewable Energy Certificates brings
to mind stories about Light Board actions circa 1985.
Then there were Light Board actions that the other three service communities
thought were detrimental to RMLD's customers there.
Legal actions taken resulted in court - ordered actions regarding RMLD operations.
One result was RMLD's 20 -year agreement with all four service communities.
The results also included items that no other Massachusetts municipal utility has-
* Citizen Advisory Board with appointed members from all service communities,
and
• A restrictive depreciation policy that limits rate -of- return.
And, of course, there were RMLD's legal costs during the time of the judicial
actions.
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�O,6SS'INCOR40 �O
Finance Committee: Request for Reserve Fund Transfer
To: FINCOM
From: Bob LeLacheur, Assistant Town Manager/Finance Director
Date: February 8, 2012
It is respectfully requested that transfers in the amount of $34,000 be made
from the Reserve Fund to three accounts shown below which is an
unforeseen or extraordinary expense.
a) Town Facilities expense $25,000 for Police Station card access system
1# 03923 -'0-51q3,06
b) Town Manager's expense $5,000 for land appraisal
Fr 12353' -79 -,57 g e0 0
c) Community services expense $4,000 for Town Forest Master Plan
IF 112 &s-S3,1 -53aQa e
Current FINCOM Reserve Fund balance: $150,000
Resulting balance if all items approved: $116,000
Town Manager Recommen a ion: pprove Disapprove
Town Manager Signature:
Date: 12
By a vote of the FINCOM at a meeting held on February 8, 2012 the
transfer(s) for above purpose(s) in the amount of $34,000 was:
Approved Denied by a vote of: (�
Finance Committee
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Wednesday, February 8, 2012 at 7:30 PM
Town Hall Conference Room
Printer- Friend IV Version
Agenda
w4MLD Renewable Energy Certificates
• FINCOM Reserve Fund Transfer requests
• Town Facilities
• Land Appraisal
• Town Forest Master Plan
'Update on FY13 Budget
• Community Priorities
Google Search o State Aid (Governor's budget)
• Health Insurance & OPEB
S t °,,Town Accountant Search Committee
• Minutes
COMMON C—Aus jy October 12, 2011
October 19, 2011
November 14, 2011
January 3, 2012
Town of Reading, Massachusetts 16 Lowell Street, Reading, MA 01867 Website Disclaimer
Virtual Towns & Schools Website
Finance Committee Reserve Fund Transfer Requests — February 8, 2012
Reserve Fund balance: $150,000
$25,000 for Town Facilities expenses
The Police Station card access security system has experienced some major issues over the past year. The
system controls all door strikes and readers throughout the facility. The system is now at the end of
the useful life and the major components are unreliable. As a result of the age and the fact that the parts are
not available we are proposing a full replacement of all the hardware and replacing it with a new system with
expansion capability and increased storage space.
The new system will be integrated into the C -Cure 9000 platform that will also be used for the newly installed
security system for the DPW facility. This software has excellent expansion capabilities and will allow us to
spread the technology across the other Town and School buildings if and when we choose. We plan to
utilize the existing wiring and conduits. New card readers will be installed at all access points.
The replacement job will most likely take two days and cost just under $25k. Since this repair needs to be
expedited and presents a problem if it crashes we need to move ahead as soon as possible.
Joseph P. Huggins
Director of Facilities
Reading Public Schools
781 - 670 -2824
James W. Cormier
Chief of Police
Town of Reading
781 -944 -1212
$5,000 for land appraisal 04.^d Ca" 4 ;At�^j ` %'
Town Meeting in the 2011 Subsequent Town Meeting authorized the sale of several parcels of land. The
Finance Committee advocated the sale for these parcels at the 2011 Financial Forums. The Town needs to
have appraisals of the parcels prior to offering them for sale. Two parcels are a priority at this time — Pearl
Street at Audubon Road, and Lothrop Road. The Town cannot proceed with the sale without the appraisals
in order to establish a minimum bid price.
Peter I. Hechenbleikner
Town Manager
Town of Reading
781 - 942 -9043
$4,000 for Town Forest Master Plan
The Town has conducted considerable background information including a forestry stewardship plan in
order to develop a Master Plan for the Town Forest property. This effort is consistent with the Town's other
efforts to develop Master Plans for other Town owned property including Memorial Park, Killam School,
Washington Park, the Birch Meadow complex, and Glen Meadow Park (Barrows School). A Master Plan for
the Town Forest requires more technical specialization than these other sites, however, and a proposal from
Mass Audubon has been submitted. The total cost is $9,000, and we have identified funding for $5,000 of
that cost. A grant application for the remaining $4,000 was not approved, and we would like to move
forward with the plan now while the weather is favorable for field work.
Peter I. Hechenbleikner
Town Manager
Town of Reading
781 - 942 -9043