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Home My WebLink About2012-03-07 Finance Committee PacketThe Town of Reading -Finance Committee - FYI 3 Budget Meeting http: / /www.readingma.gov/ Pages/ ReadingMA_MeetingCal /S01784B... Google Search _ at N Drf i C-Y13N .`cO°�DFA Finance Committee - FY13 Budget Meeting Wednesday, March 7, 2012 at 7:30 PM RMLD Printer - Friendly Version Agenda @RMLD • 'FY13 Town Manager's Budget (continued) Library (pages 57 -61) - Ruth Urell Fire & EMS (pages 62-65) - Greg Bums Police & Dispatch (pages 66 -73) - Jim Cormier Public Works (pages 74 -87) - Jeff Zager Capital & Debt (pages 10 -13 & 18 -30) - Bob LeLacheur Enterprise Funds (pages 88 -113) - Bob LeLacheur • Debt Refinancing - S &P's Rating Report • Board of Health Public Hearing on March 15th • Minutes February 29, 2012 Town of Reading, Massachusetts 16 Lowell Street, Reading, MA 01867 Website Disclaimer Virtual Towns & Schools Website 0 I of 1 3/7/2012 10:42 AM February 290 (a)jOWn Hall Overview — Peter Community Services (pages 48 -56) - Jean Town Administration (pages 33 -35) - Peter Accounting & Finance (pages 36-47) - Bob Employee Benefits (pages 10 -13 & 14 -17) - Bob Capital & Debt (pages 10 -13 & 18 -30) - Bob March 7t° (&RMLD Library (pages 57-61) - Ruth Fire & EMS (pages 62 -65) - Greg Police & Dispatch (pages 66 -73) - Jim Public Works (pages 74 -87) - Jeff Enterprise Funds (pages 88 -113) — Bob March 14'" (&RMLD Review Warrant — Pete Articles: 4 —amend FY12 -21 Capital Plan 5 — establish OPEB Trust Fund 6 — amend FY12 Budget 7 — approve FY13 -22 Capital Plan 8 — approve prior year's bills 9 — dispose surplus property 10 — establish revolving funds 11 — rescind civil service 12 — accept gift Friends of Reading Football 13 — FY13 Budget 14 — authorize Chapter 90 expenses 15 — authorize debt for Poet's corner sewer repairs March 21s'(&,RMLD Schools & Facilities — John March 28th (MTown Hall Vote FY13 budget - Vote FY13 Warrant (9 FINCOM March 7, 2012 Department Review: Library • All non -union employees receive 2% COLA • No change in staffing • NOBLE software license increase 16% • Add $17k above the generic 2% increase to the materials budget to achieve the state recommended minimum 15% of total budget level Pages 57 -61 FINCOM March 7, 2012 Department Review: Public Safety — Fire /EMS • Workload for department is increasing — budget keeps FTEs • Abide by existing negotiated contracts for Fire union • All non -union employees receive 2% COLA • Overtime increased by 9% to reflect expected actual costs if fully staffed — has been underfunded for a few years • Ambulance service expenses increased 29% to reflect costs • Other expenses reduced where possible • New Fire department software system is being implemented • Next step is to decide on ambulance billing — outsource? Pages 62 -65 0 o� oeq� HEADQUARTERS e READING FIRE DEPARTMENT �a�o Reading Massachusetts 01867 6`�9: MCOPQ�PP ' GREGORY J. BURNS, Chief 757 Main Street BUS. Phone: 781- 942 -9181 STA. Phone: 781- 944 -3132 Fax: 781- 942 -9114 TO: Mr. Robert W. LeLacheur, Jr., Assistant Town Manager/Finance Director FROM: Chief Gregory J. Burns DATE: February 29, 2012 RE: FY 12 Salary Shortfall I have completed an analysis of the Fire Department's budget. Based upon that review, 1, am projecting the salary budget will need a transfer of funds to complete the FY 12 budget cycle. The FY 12 overtime budget has been impacted due to several Firefighter injuries, a Firefighter retirement and a long "term medical issue that may lead to retirement. The FY 12 budget has also been impacted by the need to respond to Tropical Storm Irene and the October snow Storm. As a result of a Presidential Disaster Declaration we are eligible to recover 75% of our allowable costs in responding to these storms. We have filed our applications for recovery of these expenses. Below are our costs incurred during these storm events: Storm Cost Tropical Storm Irene 3,576 October Snow Storm 2,935 Total 6,511 Long term injury and illness budget drivers Rank Reason Hours Disposition Firefighter knee injury 936 Retired Firefighter Cardiac issue 516 Pending retirement Firefighter shoulder surgery 432 Returned to work Firefighter shoulder injury 384 Returned to work Firefighter Wrist Injury 240 Returned to work Estimated Payrolls Salary Overtime Total March 2 through June 29 (9.5 payrolls) 1,220,296.50 143,600.00 1,363,896.50 Budget Remaining 1,267,579.00 Estimated Deficit - 96,317.50 The requested transfer amount is an estimate based upon overtime patterns for recent payroll periods. 0 FINCOM March 7, 2012 Department Review: Public Safety - Police • Current labor negotiations for both Police unions • All non -union employees receive 2% COLA • Budget funds existing RCASA staff for % of FY13 • One new police officer is added • Overtime increased by 12.3% • Uniform costs for two new hires • Increased cost of Police vehicles • Move traffic control repair to DPW /Engineering Pages 66 -70 FINCOM March 7, 2012 Department Review: Public Safety - Dispatch Abide by existing negotiated contracts for Dispatch union All non -union employees receive 2% COLA Reduce State Grant —some income diverted to regionalization studies Move Public Safety software license costs to FinancefFechnology Add small professional development expenses Pages 71 -73 0 FINCOM March 7, 2012 Department Review: Public Works • Abide by existing negotiated contracts for both Public Works & Engineers unions • All non -union employees receive 2% COLA • Restore one seasonal Parks employee • FY12 Overtime is underfunded but no net changes made in FY13 • Equipment repair budget level funded and adequate • Snow & Ice increased from $565k to $600k (next slide) • Street Lighting reduced to $200k; was budgeted $254k a year ago • Rubbish collection & disposal expenses up 1.9% Pages 74-87 WAR ZIA FINCOM March 7, 2012 Department Review: Public Works Snew 61ee HWs , t /00 i.. 1 ]00 3p� tOW 1 e aoo +oo xoo 1 x 0+ s e 7 e o 10 11 12 u u u 16 n 18 14 m 21 xz ' n+wmmmm+ae �se.nano - . -suaoa Pages 86 -87 WAR ZIA FINCOM March 7, 2012 Infrastructure: FY13 Capital & Debt (figures in $ millions) FY13 projected revenues (excluding free cash) $77.12 excluded debt payments -$2.79 MSBA payments for Coolidge debt -$0.46 Net Available Revenue $73.67 FINCOM 5% of NAR = debt +capital $ 3.69 Net Included debt service (NID) 2.40 Target for Capital $ 1.29 CAPITAL FUNDING $ 1.87 Sources: General fund $ 1.25 Sale of Real Estate fund $ 0.25 40R Stabilization fund $ 0.37 FINCOM March 7, 2012 Infrastructure: FY13 Debt (figures in Table are in $ millions) Complex Bond Deal March 7th Pay down debt with MSBA lump sums Reduces debt from $53mil. to $40mil. Inside levy: refund Green Repairs BAN and permanently finance for 10yrs; refund Coolidge — shorten from 9yrs to 3yrs; savings begin in FY13 Excluded debt: advance refund RMHS debt; savings begin in FY14 0 Inside Tax Levy Excluded Debt TOTAL $2.66 $2.79 Principal $2.25 $1.67 Interest $0.61 $1.12 Town share $2.40 (NID) $2.04 MSBA share $0.46 $0.75 0 FINCOM March 7, 2012 Ten Year Capital Plan 5,000 000 e 3,000 s' 2,000 t000 FY FY FY FY FY FY FY FY FY H FY 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 +Capital Requests +Expeded Funding FINCOM March 7, 2012 Infrastructure: FY13 Capital q e Twwo.renoni S n eE- . .D. an s na vr ar < r w. rew no.wx.e.�mGmr....; b, weTiuxea.m i .. Wnv (1 me1 wx T s mnlorw.m.ox n�e.l s mo re s m.roo n. E.awr�Ea� +ma ��re m`i � ow"'i vm..wx..rena.ti.n ow+ may s Gn.rvar,.a, T. , OWi T�CO� F.. ONW S N.A] RbJrvYM OW! S v.000 My rwM�SY.Y�� ,.a.mre.n ovn o , OPN 6wa.y EQUpwC E iO,W] Erymrvp ORY WMSYAG Ya�I 5 1TW] Gm.Vy ' f I IBI,Tp TeW Rqud. itY.>Ia FINCOM March 7, 2012 Enterprise Funds: Storm Water • Maintain rate at $40 /residential SF home • Wages up mostly due to OT • Expenses, Debt & Capital flat • No reserves needed —fund balance is $376,011 • FY15 —Saugus River design & permitting • FY16 — Aberjona River design & permitting • FY18 — tentative start to debt service for both projects pending community -wide discussion (S40 rate will increase) . Pages 88 -92 FINCOM March 7, 2012 Enterprise Funds: Water • Abide by existing negotiated union contracts; non -union 2% COLA • Total budget is down 2.5% versus FY12, remembering November 2011 Town Meeting's decision to add $250,000 for Howard Street • Wages +2.4 %; Expenses +1.4 %;MWRA +4% • Decrease in debt service larger than increase in capital — $2.5 million water main projects previously carried as debt now repaid; $0.5 million in WTP demo & chlorination costs repaid — $550k FY13 capital project to rehab Auburn water tank — No new debt until FY16 Pages 93 -103 FINCOM March 7, 2012 Enterprise Funds: Sewer • Abide by existing negotiated union contracts; non -union 2% COLA • Total budget is up 2.9% versus FY12 • Wages +2.7%; Expenses +0.1 %; MWRA +6% • Decreases in capital and debt for FY13 • 12 sewer station rehab projects over 7 years FY14 -20 • Projects are listed in the capital plan by priority but may need to be slightly rearranged for financial reasons, such as mitigation funding by Pulte Homes for the Sturges station. • Only one large rehab project may need to use debt • Using all debt would get the work done in 2 -3 years instead but at a cost about $1 million higher due to interest paid. It is possible competitive bids for all projects at once might improve this figure Pages 104110 FINCOM March 7, 2012 Enterprise Funds: Water & Sewer Reserves • Current reserves well over 10% target • FY13 is MWRA's stated last year of managed low rate increases; forecast for charges to Reading are Water +4% and Sewer +6% • MWRA forecasts FY14 and beyond at almost +8 %/yr. • Water (30 %) and Sewer (77 %) are exposed to MWRA costs • New Reading Sewer capital (station rehab) planned FY14 -FY20 • Water & Sewer {capital + debt} balanced out at $2.5million /year +/- $0.2 million from FY13 through FY21 • A strategy to maintain 10% reserves but use up excess over four years will allow combined budgets to increase between 4.5% and 6.6% • If excess reserves are meant to control rates, they should not be used until MWRA charges begin to rise close to 8% /year Pages 111 -113 �b Summary: Reading, Massachusetts; General Obligation Primary Credit Analyst: Victor Medeiros, Boston (1) 617- 530 -8305, victor_ medeiros@standardandpoors.com Secondary Contact: Matthew Stephan, Boston (1 ) 617- 530 -8316; matthew_stephan@standardandpoors.com Table Of Contents Rationale Outlook Related Criteria And Research www. standardandpoors .com/ratingsdirect 1 943037 i 300118569 Summary: Reading, Massachusetts; General Obligation Credit Profile US$12.5 mil GO rfdg bnds ser 2012 due 03/07/2032 Long Term Rating AA /Stable New Reading GO Long Term Rating AA/Stable Affirmed Rationale Standard & Poor's Ratings Services has assigned its 'AA' long -term rating to the town of Reading, Mass.' $12.5 million general obligation (GO) refunding bonds, series 2012. Standard & Poor's also affirmed its 'AA' long -term rating and underlying rating (SPUR) on the town's GO debt outstanding. The outlook is stable. The 'AA' rating reflects our opinion of Reading's: • Location and proximity to the Boston region's larger employment centers; • Very strong wealth and housing values, despite a softer housing market; • Strong financial position underpinned by strong financial management; and • Low debt burden with manageable capital needs. Reading's full faith and credit pledge secures the bonds. The town will use about $1 million of the proceeds to fund i school remodeling projects and $11.5 million to refund its series 2002 bonds and a portion of its series 2004 bonds. Reading, with a population of 22,849, is 12 miles northwest of Boston at the junction of Interstates 93 and 95. The town's local economy is stable. The community's location along two major highways, as well as a Massachusetts Bay Transit Authority commuter -rail stop in the town's center, provides residents with easy access to employment opportunities within the greater Boston economy. Town unemployment remains relatively favorable, with monthly unemployment averaging 5% in 2011, through December. Moreover, median household effective buying income is very strong, in our view, at 174% of the national level. Due to softening in the region's home values, the town's total assessed value (AV) has fallen 5% to $3.7 billion since its peak in fiscal 2007. AV has stabilized, however, as the total AV grew 0.4% in 2012. Overall, we consider the town's current AV to be at an extremely strong level at $161,324 per capita. Furthermore, in 2011, the town's estimated median home value remained very high at three and half times the national median. The decrease in AV does not directly affect the town's finances, as officials, under Proposition 2 1/2, have been able to adjust its millage rate to maintain property tax levies. The tax base is very diverse, in out view. Residential properties account for 90% of AV while commercial and industrial properties account for 8.8 %. The 10 leading taxpayers make up 5% of AV. We believe that Reading's operations remain stable and that the town's strong reserves will provide operating flexibility for the near to intermediate term. The town derives roughly 76% of its revenues from property taxes. Collections remain strong, typically exceeding 99% on a current -year basis, providing the town with a stable and Standard & Poors I RatingsDirect on the Global Credit Portal I March 6, 2012 2 D 943037 13ul19569 Summary: Reading, Massachusetts; General Obligation predictable revenue source. In fiscal 2011, the town implemented Governmental Accounting Standards Board (GASB) Statement No. 54, which is intended to make fund balance reporting more consistent and transparent. The town closed with a modest decrease to the general fund of roughly $585,149 (roughly 0.7% of budget). The town is reporting an overall total fund balance of $23.1 million, or roughly 28% of expenditures, which we consider very strong. The total fund balance is made up of $1 million of assigned fund balance (1.2% of expenditures), and $2.2 million in committed fund balance (2.7% of expenditures). The committed fund balance is made up of the town's stabilization reserves, which have been very stable over the past several years. The stabilization reserves require a supermajority vote by the town's Board of Selectmen to use, but can be used for any municipal purpose. In addition to its stabilization reserves, the town reported an unassigned fund balance of 7.1 million, equivalent to 8.7% of expenditures. General fund cash and equivalents totaled $27.4 million, roughly 122 days cash on hand, at the fiscal year -end 2011. The town's fiscal 2012 budget totaled $87.2 million, a modest 1.1% increase over the fiscal 2011 budget. Driving the budget are higher fixed costs, mainly employee benefit costs. Most labor contracts are settled through the end of fiscal 2014, providing budgetary certainty for the near term. The town did not appropriate any fund balance in the budget. Based on management's projections, reserves are anticipated to remain at a level we consider very strong heading into the 2013 budget year. D[andard & Poor's considers Reading's Financial Management Assessment (FMA) to be "strong ". A strong FMA Indicates that practices are strong, well embedded, and likely sustainable. Highlights of the town's management policies include: • The quarterly reporting of revenue and expenditure performance to budget; • A recently introduced three -year financial plan that incorporates assumptions primarily based on three -year historical averages; • A 10 -year capital improvement plan that is updated annually and included as part of the budget; and • A formal reserve policy that provides for total reserves to equal at least 5% of operating expenditures. Following this bond issue, the overall net debt burden is $1,317 per capita and 0.8% of market value, which we consider low. The town will be using restricted funds to pay down a portion of its series 2004 bonds. The town's direct debt following this issue will be roughly $40.2 million. Debt service carrying charges are projected to be low to moderate at 7% of expenditures. Debt amortization is front - loaded, with the town retiring roughly 76% of principal by 2021 and 100% by 2028. For the future, the town may issue debt to finance a school renovation project and a library renovation. The projects and financings are contingent upon a favorable Proposition 2 1/2 debt exclusion vote. The town maintains roughly $1.1 million in authorized but unissued debt. As of June 30, 2011, Reading's other postemployment benefits (OPEB) unfunded actuarial accrued liability was $94.4 million. In fiscal 2011, the OPEB annual required contribution (ARC) was $6.7 million (roughly 8.2% of budget), and the town's pay -as -you go contribution was $2 million, or 27% of the ARC. The town's electric light department did contribute roughly $1.1 million into the OPEB trust fund. The OPEB funded ratio is 1.2% as of the last study. The town continues to explore ways to reduce and fund the liability. For its pension liabilities, the town's locally administered plan was 68% funded as of the last actuarial valuation date (June 30, 2009). The town continues to fund 100% of its ARC. In fiscal 2011, the pension contribution was $4.2 million, roughly 5.1 % of expenditures. www. standardandpoors .conVratingsdirect 3� 043037 1 300113565 I Summary: Reading, Massachusetts; General Obligation Outlook The outlook is stable. We do not expect to revise the rating within the two -year parameter of the outlook. The stable outlook reflects our expectation that Reading's balanced operations will continue, and it will maintain a strong financial position. The town's very strong wealth and income levels add stability to the rating. We expect the debt burden will remain low due to Reading's manageable capital needs and fast amortization of debt. Related Criteria And Research USPF Criteria: GO Debt, Oct. 12, 2006 Ratings Detail (As Of March 6, 2012) Reading GO Unenhanced Rating Many issues are enhanced by bond insurance. AA(SPUR)/Stable Affirmed Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. Standard & Poors I RatingsDirect on the Global Credit Portal March 6, 2012 4 9430311300119509 I 4.9.3 Pursuant to Section 53C of Chapter 44 of the General Laws, a fee of ten percent (10 %) of the cost of the services authorized by said section for work performed by one of the Town's. employees on an off -duty work detail or for special detail work shall, except in the case of a city, town, district or the Commonwealth of Massachusetts, be added to the cost of said services and paid by the persons requesting such private detail. 4.10 Municipal Data Processing Center 4.10.1 Pursuant to the provisions of Section 23D of Chapter 41 of the General Laws, there shall be established within the Town a Municipal Data Processing Center for the purpose of providing data processing services to the Town boards and officials. 4.10.2 The Data Processing Center shall be under the direct supervision and control of a Data Processing Coordinator appointed by the Town Manager. The Coordinator shall have full responsibility for coordinating the activities of.the Data Processing Center including provision of programs or systems, collection, processing, storage and retrieval of information, preparation of reports, addition of new applications, preparation of budgets and supervision of systems and equipment vendors. . In accordance with Section 23D of Chapter 41 of the General Laws, the Coordinator may also serve in any other public office or position in the Town, notwithstanding any provision of any general or special law or bylaw of the Town to the contrary. . 4.11 es and Regulations 4.11.1 All Town agencies or Town officers, as defined in Section 8 -7 of the Charter, shall comply with the following procedures in the adoption or amendment of such rules or regulations which they are empowered to adopt or amend pursuant to these Bylaws, the Charter, the General Laws of the Commonwealth or any other enabling act. The provisions of this Bylaw shall be in addition to the filing requirements of Section 8 -8 of the Charter. The provisions of this Bylaw shall not apply to the adoption, modification or amendment of any rules or regulations for which a procedure is otherwise provided by general or special law or to rules and regulations which relate primarily to the internal operations or procedure of a Town agency or Town officer. 4.11.2 No own agency or Town officer shall adopt or amend any rule or re lation until after a public hearing, notice of the time and place of which, and of the subject matter sufficient for identification, shall be posted in a conspicuous place in the Town Hall for a period of not less than seven (7) days before the date of such hearing and published in a newspaper of general circulation in the Town not less than seven (7) days before the day of the hearing if such newspaper exists. Copies of the General Bylaws 23 Amended through Aug. 2011 '� entire text shall be supplied to the Board of Selectmen, the Finance Committee, the Bylaw Committee and the Town Counsel not less than seven (7) days prior to said hearing and shall be available to the public at the office of the Town Clerk and at said hearing. Prior to the adoption or amendment of any such rule or regulation, the Town Counsel shall render an opinion to the Town agency or Town officer proposing such adoption or amendment. / o ' the adoption or amendment of ru a or regulation shall be posted in a conspicuous p ace in the Town Hall and published once in a newspaper of general circulation of the Town if such newspaper exists. A copy of all such rules or regulations so adopted or amended shall be filed in the Office of the Town Clerk and, as provided in Section 8 -8 of the Charter, they shall not become effective until ten (10) days following the date they are so filed. 4.11.3 Any inhabitant of the Town may propose a rule or regulation or amendment to the same by notifying the appropriate Town officer or Town agency in writing with a copy of the proposed rule or regulation or amendment. Within ninety (90) days of the receipt thereof, the Town officer or Town agency shall afford such inhabitant the opportunity to appear before said Town officer or Town agency to present the rationale for the proposed rule or regulation or amendment. If the Town officer or Town agency determines to promulgate such rule, regulation or amendment, it shall thereafter follow the provisions of this Bylaw. If the Town officer or Town agency determines not to promulgate such rule, regulation or amendment, it shall give written notification of the same to the proposing inhabitant within thirty (30) days of the meeting on the proposal. Article 5 - PUBLIC ORDER 5.1 Public Works 5.1.1 The Board of Selectmen shall establish a system for the numbering of any building on or near the line of public or private ways and shall prescribe by suitable rules and regulations the method in which such numbering shall be done. 5.1.2 No person shall neglect or refuse to affix to any building owned by him the street number designated for such building by the Director of Public Works or by the Building Inspector acting in accordance with the numbering system and the Rules and Regulations established by the Board of Selectmen, nor shall any person affix to or suffer to remain on any building owned or occupied by him, a street number other than the one designated for such building by the Director of Public Works or by the General Bylaws 24 Amended through Aug. 2011 Town of Reading 16 Lowell Street Reading, MA 01867 -2683 Section 9: Food Code HEALTH Phone: (781) 942 -9061 Fax: (781) 942 -9071 Website: www.readin2ma.eov 9.1 105CMR590.000 Chapter 10 of the State Sanitary Code as most recently amended is hereby adopted as a local regulation with the additions of the following: 9.2 Penalties 1) Criminal Complaint Whoever violates any provision of these rules and regulations may be penalized by complaint brought in Woburn District Court. Each day on which a violation exists shall be deemed to be a separate offense. 2) Non - criminal Disposition Whoever violates any provisions of these rules and regulations may be penalized by a non- criminal complaint in the Woburn District Court pursuant to the provisions of MGL c. 40 s. 21 D and Town of Reading By -Law Article 1.8. In the event that procedure is followed, non - critical violations shall be subject to a fine of twenty -five dollars ($25) per offense; critical violations shall be subject to a fine of fifty dollars ($50) per offense. Each day that the offense continues shall constitute a separate offense. r 9.3 Effective These regulations will take effect April 1, 2012 Vote amendment change 9.4.2 Effective 2/13/2003 Amendment change 2/10/2005 Effective 2/10/2005 Legal notice Public hearing March 15, 2012 Board of Health vote Copy sent to MA DEP Legal notice Effective date April 1, 2012 Town of Reading HEALTH 16 Lowell Street Phone: (781) 942 -9061 Fax: (781) 942 -9071 Reading, MA 01867 -2683 Website:www. read iagma.eov Section 22: Fee Schedule 22.1 Fees are not prorated. 22.2 All permit and license fees are issued on an annual basis with an expiration date of December 31 unless otherwise noted by state statute or regulation. ANIMALS Animals: Birds, Fowl (maximum 24) Animals: Cattle, Cows, Horses, Sheep, Goats (each) Animals: Pigeons (maximum 14) Animals: Pigs (maximum 3) Animals: Stable (for 5 or more horses) BODY ART Body Art: Initial Application Body Art: Licensed Artist Body Art: Establishment, DEATH Burial Permit Funeral Director (expires April 30) DISPOSAL Disposal Works Construction Permit for Septic Disposal Works Installer Septic Abandonment Portable Toilet (Per Unit) Transporter of Garbage, Offal or Other Offensive Sub Dumpster (Less than 2 yards) Dumpster (More than 2 yards) Dumpster (Recycling Materials Only) Dumpster (Temporary, 90 -Days) FOOD ** Plan Review: Minor Renovation or Residential Kitchen Plan Review: New Business or Extensive Renovation Residential Kitchen: Initial Application Residential Kitchen (including B &B wl Continental Brkfst) Food service: 0 -50 seats Food Service: 51 -100 seats Food Service: more than 100 seats Food Service: Food Establishment Plus Catering Food Service: Catering Only Establishment Food Service: Frozen Dessert Food Service: Incidental Food Service: Non Profit Fee $10.00 $10.00 $10.00 $10.00 $40.00 $500.00 $100.00 $200.00 $15.00 $50.00 No Groups or Individuals are Exempt from Fe $50.00 $50.00 $50.00 $0.00 $150.00 $0.00 $50.00 $0.00 $40.00 * *Waived for Non - Profit Organizations $50.00 $150.00 $50.00 $25.00 $100.00 $150.00 $200.00 add $25 to Food Establishment Permit Fee $100.00 $40.00 $25 $0.00 Food Service: Temporary $25.00 Food Service: Seasonal $50 plus $25 for Each Additional Unit Food Service: Mobile $75 plus $25 for Each Additional Mobile Unit Farmers' Market (Seasonal) $0.00 Retail Food: 0 -9,000 sq ft $100.00 Retail Food: 9,001- 30,000 sq ft $150.00 Retail Food: more than 30,000 sq £t $350.00 Retail Food: Incidental $25.00 <<When an establishment does both food service and retail food, there will be one fee, whichever is the greater. ICE RINK Ice Rink LATE FEE Late Fee for any Permit LODGING Lodging: hotel, motel, B &B, rooming RECREATIONAL CAMP Recreational Camp SWIMMING POOLS Swimming Pool/Special Purpose - outdoor Swimming Pool/Special Purpose - indoor TANNING Tanning est. initial application Tanning est. annual fee TOBACCO Sale of tobacco products Tobacco: Smoke Shop WELL Well construction permit Voted 1/97 . Revisied 6/00 Revised 2/01 Voted 2/8/01 Effective date 7/1/01 Voted 8/14/03 Effective 7/1/04 #14 effective 10/1/03 Revised 4/14105 Effective 7/l/05 Legal notice Public hearing March 15, 2012 Board of Health vote Copy sent to MA DEP Legal notice Effective date $50.00 $50 /day $8/Room, Min $24/Max $160 $10.00 $75.00 $150.00 $100 + $251bed or booth $25 /bed or booth $200.00 $200.00 $100.00 Ia A B C D E 1 recommended Wakefield/Melrose/Reading Wakefield Melrose Reading 2 ANIMALS 3 Animals: Birds, Fowl (maximum 24) $10.00 $10.00 20/24 4 Animals: Cattle, Cows, Horses, Sheep, Goats (each) $10.00 $10.00 20 each 5 Animals: Pigeons (maximum 14) $10.00 $10.00 20/7 pairs 6 Animals: Pigs (maximum 3) $10.00 $10.00 20 each 7 Animals: Stable (for 5 or more horses) - $40.00 $40.00 $0.00 8 Animals: Kennel n/a $100.00 9 Animals: Rabbits n/a 20/3 10 11 BODY ART 12 Body Art: Initial Application $500.00 $0.00 $1,500.00 13 Body Art: Licensed Artist $100.00 $100.00 $100.00 $150.00 14 Body Art: Establishment $200.00 $200.00 $100.00 $500.00 15 16 DEATH 17 Burial Permit $15.00 n/a $15.00 $15.00 18 Funeral Director $50.00 $50.00 $50.00 $50.00 19 20 DISPOSAL* *No Groups or Individuals are Exempt from Fees 21 Disposal Works Construction Permit for Septic $50.00 $50.00 $50.00 $100.00 22 Disposal Works Installer $50.00 $50.00 $50.00 $100.00 23 Septic Abandonment $50.00 n/a $0.00 $50.00 24 Portable Toilet (Per Unit) $0.00 $10.00 $0.00 $25.00 25 Transporter of Garbage, Offal or Other Offensive Sub $150.00 $150.00 $200.00 50 /truck 26 Dumpster (Less than 2 yards) $0.00 $0.00 27 Dumpster (More than 2 yards) $50.00 $50.00 Bldg Dept $50.00 28 Dumpster (Recycling Materials Only) $0.00 $0.00 Bldg Dept $0.00 29 Dumpster (Temporary, 90 -Days) $40.00 $30.00 Bldg Dept $50.00 30 31 FOOD ** * *Waived for Non - Profit 32 Plan Review: Minor Renovation or Residential Kitchen - $50.00 $50.00 $50.00 $75.00 33 Plan Review: New Business or Extensive Renovation $150.00 $150.00 100 or 150 $75.00 34 Residential Kitchen: Initial Application $50.00 $50.00 $50.00 $0.00 35 Residential Kitchen (including B &B w/ Continental Brea $25.00 $25.00 $25.00 $50.00 36 Food service: 0 -50 seats $100.00 100/$200 w/bar $75.00 37 Food Service: 51 -100 seats $150.00 100/$200 w/bar $125.00 $200.00 38 Food Service: more than 100 seats $200.00 100/$200 w/bar $125.00 39 Food Service: Food Establishment Plus Catering add $25 to Food Establishment Permit Fee n/a 40 Food Service: Catering Only Establishment $100.00 $125.00 $75.00 $75.00 41 Food Service: Frozen Dessert (Making Ice Cream or Soft $40.00 $50.00 $40.00 $25.00 42 Food Service: Incidental $25 n/a $25 43 Food Service: Non Profit $0.00 $0.00 $0.00 $0.00 44 Food Service: Temporary $25.00 $25.00 $25.00 $25.00 45 Food Service: Seasonal $50 plus $25 for Each Additional Unit $100.00 46 Food Service: Mobile $75 plus $25 for Each Additional Mobile Unit $100.00 $75.00 $75.00 47 Farmers' Market (Seasonal) $25 (Fee waived during duration of Mass in Motion Grant) $25/$50 $25.00 $25.00 48 Retail Food: 0 -9,000 sq ft $100.00 $100.00 $75.00 49 lRetail Food: 9,001- 30,000 sq ft $150.00 $100.00 $125.00 50 1 Retail Food: more than 30,000 sq It $350.00 $200.00 $200.00 1 I Retail Food: Incidental $25.00 n/a $25.00 A B I C I D E 52 —When an establishment does both food service and retail food, there will be one fee, whichever is the greater. >>> 53 54 ICE RINK 55 Ice Rink $50.00 n/a n/a $50.00 56 57 LATE FEE 58 Late Fee for any Permit $50/day $50 /day $50 /day $50 /day 59 60 LODGING 61 Lodging: hotel, motel, B &B, rooming $8/Room, Min $24/Max $160 $100/$150 $75.00 $0.00 62 63 RECREATIONAL CAMP 64 Recreational Cam $10.00 $75.00 $25.00 $100.00 65 66 SWIMMING POOLS Swimming Pool/Special Purpose - outdoor $75.00 $75.00 $100.00 $200.00 Swimming PooUS ecial Purpose - indoor $150.00 $150.00 $100.00 TANNING [72 Tanning initial application $100 + $25/bed or booth Tannin annual fee $25/bed or booth $100 + $25 per device $25 /device $150 max $100.00 75 ITOBACCO 76 Tobacco $200.00 $150.00 $250.00 $75.00 77 Tobacco: Smoke Shop $200.00 $200.00 78 79 80 WELL 81 Well - potable and non- potable, not monitoring $100.00 $100.00 82 Finance Committee Meeting February 29, 2012 DRAFT MINUTES The meeting convened at 7:30 p.m. in the Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Finance Committee Chair Marsie West, Vice -Chair David Greenfield, members John Arena, Barry Berman, Jeanne Borawski, Mark Dockser, Marie Ferrari, Paula Perry and Hal Torman; Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Community Services Director /Town Planner Jean Delios, Fire Chief Greg Burns and Police Chief Jim Cormier. FYI Town Manager Budget Overview Mr. Hechenbleikner reviewed a handout in which he described a "blueprint for investment" in Reading. He highlighted a series of recent prudent decisions which have helped build a strong financial foundation. He mentioned that this budget uses less than the full amount of free cash authorized by the FINCOM. In the FY 13 budget he highlighted the $500,000+ spent on a comprehensive strategy of community substance abuse and violence prevention; $400,000 on two school modular classrooms; $150,000 on school technology; $1.2 million in road improvements including Chapter 90 funding; $75,000 on pedestrian improvements; establish and begin to,fund an OPEB Trust Fund; - -. Deleted: and bring our property inspections up to date in the assessor's office. He mentioned several additional items for beyond FY 13, and some items that are not yet being addressed. Mr. Greenfield asked about Chapter 90 road funding, and Mr. Hechenbleikner responded that we had estimated $600,000 for next year but that a bond bill needs to first be passed by the Legislature and then signed by the Governor. In any event, these funds are supplemental to those spent by the Town through the General Fund. Mr. Greenfield asked about a proposed new DPW Vehicle Maintenance division and if this would eliminate outsourcing. Mr. Hechenbleikner clarified that he FYI budget did not make this change, but the longer term plan was to separate this component from the DPW Highway division. Even once that is done, some type of repairs would always need to be outsourced because of the specialized nature of the equipment needed, for example certain repairs made on a ladder truck. Mr. Greenfield asked about the status of Performance Contracting. Mr. LeLacheur replied that Facilities and the vendor had completed the work and were very satisfied with the results. There are much better controls and information available about the working condition of all Town and School buildings. There has been even greater energy savings than were explicitly guaranteed. - Mr. LeLacheur reviewed the upcoming FINCOM FY 13 Budget Meeting schedule. He also reviewed the current financial status of the Town. Since October the FYI budget 2?' outlook has improved by over $2 million. About $350,000 of this improvement is additional revenues — most of that coming from the Board of Assessors overlay surplus being increased. Expense reductions included $950,000 less directed towards health insurance; $515,000 less in out of district special education net costs (most of that due to an increase in the circuit breaker funding); $225,000 less in energy costs and $84,000 less in vocational education costs. The $2 million improvement allowed a reduction of $500,000 in free cash used; a $420,000 contribution towards OPEB to be funded; over $500,000 to be spent on the substance abuse prevention efforts; $150,000 directed towards School technology and about $600,000 divided up among the Town and School operating budgets. The latter allowed an increase from +2% to +3.6% for the FY 13 budgets. FY 13 Revenues are now projected up 2.6% (excluding the use of free cash). Free cash before the FY13 budget ispt 9.6%0 of Revenues. Mr. LeLacheur gave an overview of-the - Deleted: e.sideredk Town government operating, accommodated and total FY 13 budgets. FY13 Community Services Budget Ms. Delios reviewed the FY13 Community Service department budget. She noted that yesterday there was a change to the printed material after a meeting with Melrose concerning the regional health division. An additional $9,000 of costs will be bome by Reading, including a $2,000 increase to wages and a $7,000 increase in expenses. Mr. Hechenbleikner noted that this regionalization effort has been very successful thus far, but as it is only six months old that changes were to be expected. He mentioned the CIC grant application. Mr. Berman asked if there had been any health conflicts yet. He was concerned that one person might have a difficult time if two issues arose simultaneously in the two communities. Ms. Delios replied that the storms in the fall of 2011 affected all three communities and the Health Director worked out of the Reading Emergency Operations Center and was in touch with staff in all three communities. Mr. Hechenbleikner said there had been some improvements made to the inspections process. Ms. Delios noted that there had been an improvement to the grant applications capability. Mr. Hechenbleikner said that for example the Health Director had recently spent a few days working on a Mass in Motion grant for Reading. Mr. Arena asked if grant applications as a regional organization were viewed more favorably, and Mr. Hechenbleikner replied that it did, for example a recent LEED grant that the four communities associated with RMLD received. Board of Assessors members Ralph Colorusso (Chair), Bob Nordstrand (Vice Chair) and Fred McGrane (Secretary) joined the meeting. Ms. Delios said there had been and are ongoing efforts to regionalize other Community Services functions. Some hurdles such as unions in other communities have stalled those efforts. She mentioned that the new Conservation Administrator has been very well received in Reading and that the feedback from the community on customer service has been excellent. Mr. Hechenbleikner mentioned that CONSCOM had been in front of the Board of Selectmen the previous night. The Selectmen agreed to remove an Article from 0 April 2011 Town Meeting that would have abolished local conservation bylaws, and since then CONSCOM has sought community input via a survey on their operations, and subsequently sought to repair several areas that were highlighted as needing change. CONSCOM indicated that they would finish their process and procedure review before June 30, 2012. Ms. Delios indicated that Community Services supported nine regulatory Boards and she emphasized that the volunteers on all of these Boards had stepped up in light of staff reductions made in the FYI budget. She appreciated the efforts and good work by all of these Boards. While regulations drive much of the work, Reading was trying to simplify and clarify as much as possible. For example, there is now a one -page handout that explains the Sign bylaw; minor site plan review now cuts down on Board involvement — Cupcake City was the first applicant that went through that new process. The demolition delay bylaw had been reduced to six months with no adverse results thus far; the aquifer protection district had changes that clarified and made the process more user - friendly. She has been working with many developers first -hand, bringing them through the various processes in order to facilitate economic development. Mr. Berman stated that those efforts should not be part of her position, but they were appreciated by the community. Mr. Arena spoke about the permits process. Mr. Dockser asked if the 23 hours /week were sufficient for the Conservation Administrator. Mr. Hechenbleikner said that it did. These extra hours allowed for site inspection in preparation for a CONSCOM visit. This subsequent visit was simplified and shorter in duration. FY 13 Assessor's Budget Mr. LeLacheur reviewed the Assessors budget in light of the fact the entire Board of Assessors was present. He noted the agreement to provide three consecutive years (FY 12 -FY 14) of $24,000 to outsource property inspections. This would catch up a backlog in time for the next revaluation, and allow current staff to spend more time in the office working on a conversion to the new Patriot CAMA system. Ms. Perry asked the Board if they were still concerned about the quality of data when this work was outsourced. Mr. Colorusso indicated that while the Board still did have that concern that he agreed with this as the best solution. An outsourced firm could bring in the required resources to do the inspections, whereas an in -house position was limited in the hours they would be available. Mr. McGrane pointed out that only in the past 2 or 3 months did the Board realize that they were behind in the inspections process. He appreciated that the Board had dropped that situation suddenly on the lap of the Town and appreciated the creative solution to the problem. Mr. Arena asked if Patriot would cover all classes of property, and Mr. Nordstrand indicated that it did. Mr. Colorusso said that he expected multiple people from the outsourcing to be present inspecting in the Town. Mr. Berman asked if $20 /inspection was sufficient funding, and Mr. Colorusso indicated that it was. A residential inspection was only 10 -15 minutes, and the requirement was that an effort was made to inspect but that residents had the right to deny access to the property. Mr. Hechenbleikner said that this outsourcing would be accomplished via a public bidding process. Mr. Nordstrand said he expected the inspections of commercial property would continue to be done only by Town staff and that this outsourcing would be for residential property only. (a FY13 Town Administration Budget Mr. Hechenbleikner reviewed the FY13 Town Administration budget. He pointed out the only increase in expenses was for the document storage effort. Ms. Perry asked if the Town has going to have that available for an historical documents, and Mr. Hechenbleikner answered that on a selective basis it would. For example, meeting minutes had been scanned in back to 1986 when the Charter was instituted. He reviewed Deleted: M _......... _----- ------ ------ -- ----- - ---. _..... ... .. .... ... _................. - examples of how quickly information could now be retrieved. Mr. LeLacheur added that there would be a public web- access component to document storage within the next year. Mr. Hechenbleikner also cited the example of union contract negotiations where final documents as well as staff notes for discussion in progress were all scanned in, and very useful for the arbitration process. For example he recently found a 1993 document in less than 15 minutes. Mr. Dockser asked about postage, and Mr. Hechenbleikner said that despite the Town's efforts to become as electronic as possible that there were still requirements to publish in the local newspapers and send out physical mail under many circumstances. Mr. Arena asked about P +C claims, and Mr. Hechenbleikner said that the Town carried high - deductible policies. A quarterly Safety Committee meeting reviewed the details, and the Town was a very active participant in the MIIA Rewards program. FY13 Accounting Budget Mr. LeLacheur reviewed the Accounting budget briefly and there were no questions or discussion. FY 13 Finance Budget Mr. LeLacheur reviewed the Finance budget. There is a proposed reduction of 0.5 FTE in a clerical position due to the combination of a collector's position with one in water and sewer. This change was brought about by a retirement in the water and sewer divisions. Three significant changes to expenses occur in FY13: a) the previously mentioned $24,000 outsourcing of inspections for the Assessors; b) a new $21,500 software license that now covers both Fire and Police that was previously in the Dispatch budget; c) $17,060 additional costs due to expecting three elections next year instead of the two that were budgeted for in FYI 2. Expenses are generally level funded with those three exceptions. He reviewed the amount of annual software license costs that are now something that must be funded each year in full unless the need for the software goes away. Several FINCOM members suggested a public presentation on technology as these new systems are introduced. Mr. LeLacheur suggested that November 2012 Town Meeting might be a good venue for that. He also mentioned that there is still a surplus in the Technology authorization from Town Meeting five years ago. Mr. Hechenbleikner mentioned that the FINCOM Reserve fund has remained at $150,000 for many years. FINCOM members agreed that as long as the fund was replenished at Town Meetings during the year that it did not need to increase. FY13 Benefits Budget Mr. LeLacheur stated that Benefits were up 3.8% in FYI 3, but if the contribution to OPEB were excluded then they were up only 0.5 %. Pensions are funded at +3.5% per the Deleted: c local Retirement Board with a onger term funding target Qf +2S% annually. The OPEB Deleted: chat - -. Deleted: i, 0 $420,000 contribution is set at 5% of the budgeted general fund health insurance premium budget. If this discipline is followed each year, this amount may serve as a last minute cushion against under - budgeted expenses. As recently as last year both the Town and Schools had to reduce their next -year budgets in late January. The FYI 3 Health insurance premium renewal rate is 0 %. Unemployment expenses are reduced. Mr. LeLacheur reviewed a Health Insurance Myths presentation. Premiums have increased at less than 3% annually for the past seven years due to several plan design changes negotiated with the unions. Enrollment of about 2% annually has added to these costs. The 5% total is not extreme compared to other organizations, but it is contrasted with a 2% annual revenue increase over this same time period. FINCOM reviewed a handout from RMLD General Manager Vin Cameron. The handout showed that when considering the New England market for RECS, RMLD has a 1.25% share of the market. Various FINCOM members stated their opinion about the REC issue, which the majority had concluded did not rise to a level where FINCOM should be involved as a Committee. On a motion by Mr. Greenfield seconded by Mr. Dockser FINCOM voted 9 -0 to approve the Minutes of February 8, 2012 as amended. On a motion by Mr. Torman seconded by Mr. Greenfield FINCOM voted 9 -0 to adjourn at IO:OOPm. Respectfully Submitted, Secretary re Reading Public Library 64 Middlesex Avenue, Reading, MA 01867 www.readingpl.org 781- 944 -0840 Board of Library Trustees David Hutchinson, Chair Richard H. Curtis, Vice -Chair Cherrie Dubois Victoria Yablonsky To: Finance Committee From: Ruth Urell, Library Director, for Board of Trustees Date: March 7, 2012 Re: Fiscal Year 2013 Budget OVERVIEW The Fiscal Year 2013 Library Budget maintains current service levels, complies with the requirements for State Certification, and covers the schedule of open hours currently in place, which includes Sunday afternoons (October through May), four weeknight evenings, and Saturdays year- round. MUNICIPAL APPROPRIATION REQUIREMENT (MAR) The budget complies with the MAR formula and will restore the Library's Budget to fully certifiable by the Massachusetts Board of Library Commissioners, without necessitating a second year Waiver Application. SALARIES The budget retains current staffing levels and provides a 2% Cost of Living Adjustment (COLA). NOBLE The software license account is increasing from $47,278 to $55,000 to cover the library's assessment. This account is increasing from $173,000 to $193,600 to fully fund the book budget and comply with the 15% expenditure standard for State Certification. REQUESTS The Library requests an additional $7,161 for licensing, software, hardware, and equipment as follows: Library Insight museum & room booking software $1,500 Survey Monkey $300 Digital Commonwealth Membership (Digital scan /storage) $100 Bookletters (website booklist service) $1,290 Flickr (Photo storage and web display) $25 Text a Librarian (Communication software mobile) $780 Lease (yr 2) Xerox 7120 Digital Copier /printer /scanner $2,166 Public Computing upgrades /replacements (additional funding over $7500) $1000 The Trustees and 1 thank the Town Manager and Assistant Town Manager for their careful efforts to restore and improve essential funding for key services and for their hard work to manage competing fiscal priorities during a difficult economic downturn. We appreciate their thoughtful deliberation and the responsible approach they took to shepherd the Town through a challenging time, and we are grateful that the overall budget picture for Fiscal Year 2013 is much improved over Fiscal Year 2012. Respectfully submitted, Ruth Urell, Library Director