HomeMy WebLinkAbout2013-06-26 Finance Committee PacketOFRF9oiti Public Notice
y~
A. Meeting Posting
' ;_ Town of Reading -
s39'
INC 04e04P
Board,
Committee or
Commission:
Date:
Location:
Address:
Purpose:
Requested By:
Fincom
2013 -06 -26
Town Hall Conference Room
Town Hall
Fiscal Year End
Bob Lelacheur
Town Clerk
Time: 7:30pm
Notices and agendas are to be posted 48 hours in advance of the meetings excluding Saturdays, Sundays, and Legal Holidays. Please keep in mind the
Town Clerk's hours of operation and make necessary arrangements to be sure your posting is made in an adequate amount of time. A listing of topics
that the chair reasonably anticipates will be discussed at the meeting must be on the agenda.
All Meeting Postings must be submitted in typed format; handwritten notices will no longer be accepted.
Agenda
Call to Order:
Old Business:
Topics of Discussion:
♦ Open session for topics not reasonably anticipated 48 hours in advance of the meeting
♦ 7:30pm
♦ FINCOM reorganization for FY 14
♦ FINCOM Meeting schedule for FY 14
♦ Reserve Fund Transfer requests
> West Street project
♦ Payments in lieu of Taxes discussion
♦ FINCOM Mission Statement & Guiding Principles
♦ FINCOM Policies
• Cash Reserves (Dec. 2006)
• Debt & Capital (Dec. 2006)
• OPEB (tba)
> Other ?
♦ Health Insurance information
Review of future topics
• Debt discussion - optimal levels & peer comparisons; rating agency views
• Debt exclusion best practice (see exisitng FINCOM policy above)
• Water project - total and fees vs. tax base impact to community
• Reading Ice Arena - discuss revenue sharing arrangment and method of calculation
• Other ?
fi
N
Acceptance of Minutes: Approve Minutes - May 22, 2013
Adjourn:
This Agenda has been prepared in advance and represents a listing of topics that the chair reasonably anticipates will be discussed at the meeting.
However the agenda does not necessarily include all matters which may be taken up at this meeting.
C
TOWN OF READING
Finance Committee Liaisons — as of 6/26/2013
Name /Address/Email Telephone Liaison Assianments
David Greenfield ('05-14), Chair 781.- 942 -2072 (H) Board of Selectmen
192 Woburn Street 617- 662 -7210 (W) Audit Committee
d rgreenfield Astatestreet.com Accounting/Finance /Assessors
we4 eens ,comcast.net
Barry Berman ('07-14), Vice Chair 781 - 942- 7907(H) Schools
54 Longview Road 617478- 8507(W) Audit Committee
bcberman@comcast.net
bbennan@firstrepublic.com
Jeanne Borawski(' 12/ -' ] 5)
617- 723- 5744(H) Community Services
3 Deer Path Lane
Public Safety
icanne borawski(o)hotmail.com
Mark Dockser (10
781- 781- 942- 7586(H) RMLD
110 Beaver Road
617 - 671- 5828(W) Public Works
mdockser@gmail.com
Karen Herrick('] 3 -15) Library & Bldg Committee
karenherrickQremax.net Schools
Paul McNeice ('13- 13) 781- 872- 1187(H)
20 Johanna Drive 781- 246- 6994(W)
pmcneice@edgewater.com
JeffreyPerkins ('13 -1 5) 781 - 854- 7468(H)
1 Coolidge Road 617 - 535- 8433(W)
Jeffperkl999@Yahoo.com
Paula Perry ('10-14) 14) 781- 944- 8224(H) Library
40 Beaver Road Assessors
n i nerrva.comcast.net
Harold S. Torman ('04. 13) •� 781- 942 -2794 (H) Public Works
77 Sunnyside Ave Economic Development
Hal.TormanAlantheus.com Schools
ADMINISTRATION
Bob LeLacheur 942- 6636(W) Town Manager
blelacheur@ci.readinp,.ma.us 942- 9805(H)
John Doherty 944- 5800(W) Superintendent of Schools
idoherty@reading_k 12.ma.us
Sharon Angstrom 942- 6604(W) Town Accountant
san sg tromAci.reading ma.us
Mary DeLai 942- 5800(W) Assistant Superintendent/
mdelaK4reading.kl2.ma.us Finance & Administration
n3
*DRAFT* FINCOM FY14 Schedule
(All meetings are Wednesday at 7:30pm in Town Hall, unless noted)
2013
July 24 regular meeting" Y_ -�
August 20 BOS close Warrant for Special Town Meeting
Aujiust 21 regular meeting — S txv#'(S `'I,� 5
September 11 Financial Forum I:Woburn St. School (at the Pleasant St. Center)
September 16 Special Town Meeting: Woburn St. School (begins Monday at R�IIHS)
September 24 BOS close Warrant for November Subsequent Town Meeting
October 9 Financial Forum II (at the Pleasant St. Center)
October 16 regular meeting (November TM Warrant Articles)
October 29 Special Election: Woburn Street School (Monday at RMHS)
November 12 Subsequent Town Meeting (begins Tuesday at RMHS)
December 11 regular meeting
2014
January
Selectmen Town budget meetings (Tuesdays)
January
School Committee School budget meetings (Mondays & Thursdays)
January 8
regular meeting
January 29
Financial Forum III (at the Pleasant St. Center)
February 26
FYI Budget Meetings (Town)
March 4
BOS close Warrant for April Town Meeting
March 5
FYI 4 Budget Meetings (Town)
March 12
FYI Budget Meetings (Schools)
March 19
Annual Town Meeting Warrant Articles
March 26
FY 14 Budget Meetings (Vote FY 14 Budget & Town Meeting Articles)
April 8
Local elections
April 28
Annual Town Meeting (begins Monday at RMHS)
June 25
Year -end meeting
blelacheur YEAR -TO -DATE BUDGET REPORT Iglytdbud
FOR 2013 13
ORIGINAL APPROP TRANS /ADJSMTS REVISED BUDGET YTD EXPENDED
0140 FINANCE RESERVE FUND
0132 RESERVE FUND
05 EXPENSES
JOURNAL DETAIL 2013 1 TO 2013 12
ENCUMBRANCES AVAILABLE BUDGET % USED
11325578 578900 FINCOM R F
150,000.00
- 7,000.00
143,000.00
0.00
0.00
143,000.00
2013/01/000963 07/01/2012 BUC
150,000.00
REF ORIGINAL
BUDGET 2013
2013/03/000788 09/24/2012 BUA
- 30,000.00
REF TRANSF TRANSFER
FOR GENERATOR
2013/05/000839 11/13/2012 BUA
30,000.00
REF AMEND ARTICLE 4
BUDGET AMEND NOV TM
2013/06/000475 12/12/2012 BUA
- 7,000.00
REF FINCOM FINCOM TRANSFR LIBRARY PROJECT
TOTAL EXPENSES
150,000.00
- 7,000.00
143,000.00
0.00
0.00
143,000.00
TOTAL RESERVE FUND
150,000.00
- 7,000.00
143,000.00
0.00
0.00
143,000.00
TOTAL FINANCE RESERVE FUND
150,000.00
- 7,000.00
143,000.00
0.00
0.00
143,000.00
TOTAL EXPENSES
150,000.00
- 7,000.00
143,000.00
0.00
0.00
143,000.00
GRAND TOTAL
150,000.00
- 7,000.00
143,000.00
0.00
0.00
143,000.00
** END OF REPORT - Generated
by Bob LeLacheur **
I
.0%
.0%
.0%
.0%
.0%
LeLacheur, Bob
From: Zambouras, George
Sent: _ Monday, June 24, 2013 5:48 PM
To: LeLacheur, Bob
Cc: Zager, Jeff
Subject: West Street Appraisals
:.3
We received 3 bids for appraisal services for the West Street roadway temporary easements.
The bids ranged from $32,000 to $37,850.
To insure har35,OOO na easement costs in time for fall town meeting I would recommend that the Finance Committee
appropriate the We st Street Appraisal Service Contract, this will allow a small cushion for any unexpected
extras.
George J. Zambouras, P.E.
Town Engineer
781 - 942 -6683
781- 942- 5441(fax)
Email: gzambouraskei.reading_ma.us
Please note Town Hall Hours
Monday, Wednesday and Thursday: 7:30 a.m - 5:30 p.m.
Tuesday 7:30 a.m. - 7:00 p.m.
Friday: CLOSED
Summary of Recent PILOT Payments
FY13
FY12
FY11
United Church Homes
$
52,099.73
$
49,216.52
$
47,732.96
aka Peter Sanborn Place
5.9%
3.1%
Reading Ice Arena Authority
$
624.94
$
591.90
577.25
Symonds Way
5.6%
2.5%
Reading Housing Authority
6,233.26
$
6,210.35
$
6,374.10
various locations
0.4%
-2.6%
TOTAL
58 bedrooms
58 bedrooms ---
49,820.421$
61 - bedrooms
48,322.21
-,
$52,736.671.$
5.99'0 1
3.1%1
n-I
SYNOPSYS OF READING PILOT AGREEMENTS
Reading Assessing Division
June 24, 2014
READING HOUSING AUTHORITY
These agreements which were enacted at various times are in accordance with the provisions of
MGL Ch. 705 "Scattered site family housing" or MGL Ch. 689 "Housing for persons with
special needs ". Through these agreements, the Municipality agrees not to levy taxes and the
Housing Authority agrees to a PILOT payment. Below is the formula to arrive at the yearly
payment amount:
(1/2 Full Value Tax Rate.+ $100) x number of bedrooms)
The 8 properties in this agreement comprise a total of 58 bedrooms and were billed a total of
$6,233.26 for fiscal year 2QI3.
UNITED CHURCH HOMES OF READING, INC.
This agreement was signed in 1981 in accordance with the provisions of MGL 180 and appears
to run 40 years. The first year of the completed project paid $676 times 74 units to establish a
$50,000 Base Year Payment. It appears that, while convoluted, I am to use the last year's
payment and tax rate to produce a valuation that is then multiplied by the new tax rate.
Furthermore, in a revaluation year, the prior year's assessment will be changed by the average
increase / decrease of all real property in the Town.
Both properties are billed regularly and are up to date.
January 30, 2013
TOWN OF READING
16 LOWELL STREET
READING, MA 01867 -2693
BOARD OF ASSESSORS
TEL.: 781- 942 -9027
FAX: 781 - 942 -9037
Ms. Jacqueline Carson, Administrator
Peter Sanborn Place, Inc.
50 Bay State Road
Reading, MA 01867
Dear Ms. Carson;
Pursuant to the 1981 Payment in Lieu of Tax Agreement
between United Church Homes, Inc. AKA Peter Sanborn Place,
Inc. and the Reading Board of Assessors, this letter will
inform you of FY 2013 Actual Payment In Lieu of Taxes
(P.I.L.O.T.) are: $52,099.73.
FY 2013 total annual Payment In Lieu of Tax is: $52,099.73.
Last year we went to quarterly billing. We did receive the
first quarterly estimated payment for FY2013 of $12,675.03
for the August payment. We called recently and understand
there was an over -site in the November 1 payment for the
second preliminary payment of $12,675.02. This has been
paid as of this date.
Based on the actual P.I.L:O.T of $52,099.73 we have
subtracted the total of the first two preliminary payments
of $25,350.05 from the actual bill for the remainder of:
$26,749.67
11
Page 2, petersanactua1FY2013.doc, cont.
The total remainder due is: $26,749.67 As a result, the
last two quarterly payments will be: $13,374.84 and
$13,374.83, respectively.
The first payment for quarterly billing is for February 4,
2013. We are sending this letter to you latter then the
taxpayers were billed. As a result, the first P.I.L.O.T
quarterly payment of $13,374.84 is due 30 days from the
date of this letter.
The second quarterly payment of $13,374.83 will be due May
1, 2013.
Based on this calculation you can anticipate that the first
two payments for the next FY 2014 quarterly bill will the
same amount and will be due August 1 and November 1.
We will be sending a letter in late June or July to remind
you of these payments.
Should you have any questions or concerns, please contact
this office.
Sincerely,
of Assessors
A7 McOrhne, Chairman
Ralph,9A. ColorussQ, Vice - Chairman
rt Quinn, JR, ecretary
v Cc: Bob LeLacheur Assistant Town Manager /Finance Director
Cc: Sharon Angstrom, Town Accountant
Cc: Nancy Heffernan, Treasurer /Collector
Cc: Beth Licari, Assistant Tax Collector
r
February 12, 2013
TOWN OF READING
16 LOWELL STREET
READING, MA 01867 -2693
Ms. Jacqueline.Carson, Administrator
Peter Sanborn Place, Inc.
50 Bay State Road
Reading, MA 01867
Dear Ms. Carson:
BOARD OF ASSESSORS
TEL.: 781 - 942 -9027
FAX: 781 - 942 -9037
Due to the delays in the meetings of the Board of Assessors we
realize that February 1't has passed and the letter states that
the bill is due on February 1. We hope that you will be able to
make payment as soon as possible.
Should you have any questions, please contact our office at:
781 - 942 -9027.
Sincerely,
Victor Santaniello
Town Assessor
On behalf of the Reading Board of Assessors
r�
AGREEMENT BETWEEN THE TOWN OF READING
AND
UNITED CHURCH HOMES OF READING, INC.
AGREEMENT made this �Z517 day of 1981, by and
between UNITED CHURCH HOMES OF READING, INC., a non - profit cor-
poration organized pursuant to Massachusetts General Laws, Chap-
ter 180 (the "Owner ") and the TOWN-OF READING, a municipal cor-
poration of the.Commonwealth of Massachusetts (the "Town ").
1. The Owner agrees to pay to the Town in lieu of taxes
pursuant to Massachusetts General Laws Chapter 180, the amounts
hereinafter set forth:
(i) DURING CONSTRUCTION:
The construction period is hereby agreed to be
the calendar years 1981, 1982 and 1983 and any subse-
quent calendar year until completion, which term is
defined in (ii) below (hereinafter the "Construction
Period ") . During the Construction Period, the Owner
shall pay to the Town the amount of $ I-TLc In
addition, for the. calendar year 1982 the Owner shall pay
to the Town, Eight Thousand Dollars ($8,000.00), to be.
used for reimbursement of the Town for the cost of (a)
construction by the Town of a sidewalk along the north
side of Bay State Road from the entrance to the Project
out to Salem Street, (b) the installation by the Town of
pedestrian crosswalks at the end of Bay State Road at
the intersection with Salem Street and on Salem Street,
(c) a stop sign at the end of the driveway at Bay State
Road, (d) the painting of a 200 foot center line and
stop bar on Bay State Road at Salem Street and., if
permitted by the State, (e) a stop sign at Bay State
Road and Salem Street.
(ii) UPON COMPLETION:
Beginning with the year in which the Project
is occupied following the Construction Period described
above yand every year thereafter during the forty years
the Project is subject to the Department of Housing and
Urban Regulatory Agreement, Owner shall make a payment
in lieu of taxes. The total payments in the first year
in which the Project is occupied following the Construc-
tion Period described above is Six Hundred Seventy -Six
Dollars ($676.00) times seventy -four (74) dwelling
units, or a total of Fifty Thousand Dollars
-1- It
($50,000.00). This payment shall be referred to as the
"Base Year Payment".
If there is .a change. in the tax rate. for the
Town of Reading from that in effect during the Base
Year, subsequent payments shall be determined by divid-
ing the Base Year Payment by the tax rate for the Town
of Reading in effect for the Base.'Year, resulting in the
Base Year Valuation, then multiplying the Base Year
Valuation by the applicable tax rate, yielding the
dollar amount to be paid.
Subsequent payments for a revaluation year
shall be determined by increasing or decreasing. the
preceding valuation as determined by above in the same
proportion as required by revaluation, arriving at the
new amount to be paid, which payment shall equitably
reflect a general increase or decrease in the total tax
revenues for such year in the Town of Reading.
For purposes of illustration of the foregoing
formula, in the fourth fiscal year of occupancy of the
Project, if the payment for the preceding year is
$80,000, then $80,000 divided by the 'preceding year's
tax rate of $80 per thousand of valuation equals
$1,000,000 of valuation. Multiplying the preceding
valuation ($1,000,000) by the new tax rate (eg. $85 per
thousand) yields the dollar amount to be' paid ($85,000).
If in the fifth year of occupancy there is a revaluation
of real property in the Town of Reading (the revaluation
year) , then the subsequent payments hereunder shall be
determined by increasing or decreasing the preceding
valuation ($1,000,000) as determined above in the same
proportion as required by the average revaluation of
real property in the Town of Reading (assume 50% in-
crease) ($1,500,000) which when multiplied by the new
tax rate ($58.64) will equal the total taxes to be paid
hereunder ($87,000) .
Any payments which become due to the Town on
account of this` Contract for any calendar year shall be
paid to the Town on or before April 1st of the year next
following such calendar year.
2. The Owner shall file with the Assessors within forty -
five (45) days of the end of each calendar year during which this
Contract is in effect a statement of the income of the Project,
and the amountts invested in the construction of the Project.
3. The Owner shall file with the Assessors within ninety
(90) days of the end of each calendar year which this Contract is
in effect an audited report, prepared by a Certified Public
Accountant, consisting of a statement of profit and loss, a bal-
ance sheet, a statement of receipts and disbursements for the,
preceding calendar year.
4. No officer, director or other agent or employee of the
Owner shall have any personal liability for the obligations of
the Owner.under this Contract.
EXECUTED as a sealed instrument the day and year first above
written.
TOWN OF READING
UNITED CHURCH HOMES OF
READING, INC.
BY: 1�v[ r1/J G✓
Her ert W. Converse, President
)"Q f- 43 /� �j
K,
TOWN OF READING, MASSACHUSETTS
Office of
a 'mss BOARD OF ASSESSORS
ROeLMT 1. NOM OSTM.ND
.I LLI.N L. IOCKL
SIC +.L� T, w�uv.N Municipal Building Tel. 942.0500
TIarch 1, 1985
United Church Homes of
Feading, Inc.
25 Woburn St.
Reading, A,Iass. 01867
G
STATE)`TNT
Payment in lieu of taxes as
per agreement dated Dec. 28,
1981.
"Base Year Payment $676.00
x 74 units
Payment due $50,000.00
Qcex-)Z-T�), -))C"I e
Robert I. Kordstrand
Chairman
/_.l
January 30, 2013
Mr. William Jennings
Reading Ice Arena Authority, Inc
51 Symonds Way
Reading, MA 01867
TOWN OF READING
16 LOWELL STREET
READING, MA 01867 -2693
BOARD OF ASSESSORS
TEL.: 781 - 942 -9027
FAX: 781 - 942 -9037
Subject: FY 2013 Actual Payment in Lieu of Taxes (P.I.L.O.T.)
Burbank Ice Arena
Regarding: 51 Symonds Way (Parcel ID 246/041.0- 0000 - 0054.0)
Dear Mr. Jennings;
This is in accordance to the P.I.L.O.T. agreement the Ice Arena has made with the Town of
Reading.
This letter will inform you of that the actual bills have been calculated and that the actual payment
in lieu of taxes for the Burbank Ice Arena is: $624.94.
The first Payment In Lieu of Tax payment is due for February 4, 2013 for $164.49
The second actual Payment In Lieu of Tax payment is due May 1, 2013 for $164.49.
We realize this letter is late and we hope that you will submit payment as soon as possible.
Tax Rate (FY 2013)
Acreage
Value per Acre
Divided By
Equals
Multiplied By
Equals
Total P.I.L.O.T. equals:
Actual FY2013:
$14.94
Pilot Calculation
4.45
$9,400 = $411-830
$1,000 Assessed
$41.83
14.94
$624.94
624.9
r
Page 2
We have received $147.98 for the August payment and $147.98 for the November
payment.
The balance is: $328.98
Due February 28: $164.49
Due May 1: $164.49
You can anticipate that August 1st and November 1St payments in 2013 will be the same
amount of $164.49.
Please contact the Reading Assessors Office at 781 - 942 -9027 if you have any
questions.
Sincerely,
The Readinq Board of Assessors
McGrant, Chairman
Ralph A. Colorusso, Vice - Chairman
Cc: Bob LeLacheur- Assistant Town Manager /Finance Director
✓ Cc: Sharon Angstrom, Town Accountant
Cc: Nancy Heffernan- Treasurer/ Collector
Cc: Beth Licari- Assistant Collector
I�
January 30, 2013
Ms. Lyn E. Whyte
Executive Director
Reading Housing Authority
22 Frank D. Tanner Drive
Reading, MA 01867
Dear Ms Whyte:
TOWN OF READING
16 LOWELL STREET
READING, MA 01867 -2693
BOARD OF ASSESSORS
TEL.: 781 - 942 -9027
FAX: 781 - 942 -9037
Based on the P.I.L.O.T. agreements between the Reading Board of Assessors and
the Reading Housing Authority, the payments in lieu of tax due on Reading Housing
Authority properties for FY 2013 are as follows:
83 -91 Oakland Rd and 42 -44 Waverly Rd.
74 Bancroft Ave.
17 -21 Pleasant St/ Parker Place
173 -175 Main Street
505 Summer Avenue
901 Gazebo Circle
501 Gazebo Circle
401 Gazebo Circle
13 Pierce Street
$1,934.46 = $107.47 x 18 Bedrooms
$ 644.82
= $107.47 x 6 Bedrooms
$1,182.18 = $107.47 x 11 Bedrooms
$ 644.82
= $107.47 x 6 Bedrooms
$ 644.82
= $107.47 x 6 Bedrooms
$ 214.94
= $107.47 x 2 Bedrooms
$ 322.41
= $107.47 x 3 Bedrooms
$ 322.41
= $107.47 x 3 Bedrooms
$ 322.41
= $107.47 x 3 Bedrooms
TOTAL: $ 6,233.26 for 58 Bedrooms
pilotfy2013RHA.doc ...cont. Page 2
The formula used for payment calculation, as stipulated by each agreement, is [(1/2
full value tax rate of $14.94 + 100= $107.47) multiplied by the number of bedrooms] . The
FY 2013 tax rate is $14.94 per thousand assessed.
We have now gone to quarterly billing. The Reading Housing Authority was bill
during the preliminary billing period as follows:
The actual bill for FY 2012 was: $6,210.35
One half year for preliminary was: $3,105.18
To date we have received: $3,105.18
The Actual Taxes due for FY 2013 $6,233.26 less ( -) $3,105.18 = Balance: $3,128.08.
Due February 1: $1,564.04
Due May 1: $1,564.04
Total: $3,128.08
These payments are due to the Town of Reading on dates stated above. Should you have
any questions or concerns, please contract this office.
Sincerely,
Reading
Fred A/N/
Chairman
Ralph A. Color
Vice - Chairman
Robert J. Quinn, Jr.
Secretary
/Cc: Bob LeLacheur Assistant Town Manager/Finance Director
Cc: Sharon Angstrom, Town Accountant
Cc: Nancy Heffernan, Treasurer /Collector
Cc: Beth Licari, Assistant Tax Collector
rW
.1
V
A4 49 1211141 4�1_1�
TO BE SIGNED WITHIN 60 DAYS. OF BEING AWARDED A CONTRACT FOR
FINANCIAL ASSISTANCE
COOPERATION AGREEMENT
REGARDING AYMENTS &&AEU f F #UMS TO BE PAID BY
LOCAL HOUSING AUTHORITIES ON STATE-FUNDED LOW -RENT
HOUSING PROJECTS, DEVELOPED UNDER THE 705 PROGRAM OR
THE CHAPTER 689 PROGRAM
This agreement entered into this �7 day of A )CIU46-T
20j2,J_ by and between the Housing Aunty (herein
called the "Authority") and the)/ Town of__ I?yA,0146
(herein called the "Municipality "), witnesseth:
The parties hereto do agree as follows:
(1) Under the statutes of the Commonwealth of Massachusetts the real estate and tangible
personal property of a local housing authority is deemed to be public property used for
essential public and governmental purposes and is exempt from taxation and from
betterments and special, assessments. With respect to any low -rent public housing
developed and owned by the Authority under the Chapter 705 scattered site family
housing program or the Chapter 689 program of housing for persons with special needs,
the Municipality agrees that it will not levy or impose any real or personal property taxes
upon such housing or upon the Authority with respect thereto. The Authority shall make
annual payments (herein called "Payments in Lieu of Taxes" or P.I.L.O.T.) in lieu of such
taxes and in payment of Public services and facilities furnished from time to time without
other cost or charge for or with respect to such housing.
Each annual Payment in Lieu of Taxes shall be made at the time when real property taxes
on such housing would be paid if it were subject to taxation and shall be in an amount not
to exceed:
(1/2 Full Value Tax Rate + $100) x number of bedrooms
(2) The Municipality further agrees to furnish or cause to be furnished to the Authority and
the tenants of such housing public services and facilities of the same character and to the
same extent as are furnished from time to time without cost or charge to other dwellings
and inhabitants in the Municipality.
(3) So long as any bonds issued in connection with any low -rent housing project remain
unpaid or so long as such housing is owned by the Authority and used for low -rent
housing purposes, this Agreement shall not be abrogated, changed or modified without the
consent of the Executive Office of Communities and Development.
In witness whereof the Municipality and the Authority have respectively signed this
Agreement and caused their seals to be affixed and attested to as of the day and year first
above written.
(SEAL) BY BOARD O_ F
ASSESSORS OR
APPROPRIATE
ATTEST ` TM kOCAL AUTHORITY
SIGNATURE
NAME
(SEAL)
ATTEST:
IGNATURE
an,xim
1
� ?, rps-sc��
N
(2Aci- irl -cF•,
TITLE
HOUSING AUTHORITY
CHAIRMAN: n
510NATURE
Jars A (fj2Q ;
NAME
I`�
:Property Tsx Exemption fot. Y`
Nonprofits
• A1150 states and D.C. provide property
taz exemption for 501(c)(3) charitable
nonprofits
• Nonprofits without 501(c)(3) designation
are generally not tax - exempt
• Charitable nonprofits are the focus of
this report .
117rl1k2r,
0
r4
%1 1,
a.ewn—
q
Fi .r,rF
a2w,.
s+F�
re
A.w..
�.........
,a
id ewsw
ea w
t "Aw?.
t 2AlCAmm
MCOS
tAF%
bbelb
s L+usACC
t Comm
Fvmm
A.71%
GbHyR W
i 1.'A1000
s ~MA+2
Fr
AAM
lbwR rN
i +3sFA"
t 42.312.5"
MC"
SAS%
Yn�eFA W
t - MA.
s /.400"j FC
FV
CAI%
Pmwd—M
s SACCAdo
t —A4k n
FrS b
FAA%
%1 1,
Boston` PtLbT program; cost:
Basis for requested PILOT 's,assessed
value of tax- exempt property .
• . Goal to collect 250% of what nonprofit `-
would have. paid :if taxable
- But collections fall far short of goal
Community service benefits can offset
up to 25 %.of negotiated cash PILOT
i
--- f ko kl
r
21
j b
r
rnR
Seas CST a Dr1r POOO. Ka54
More PLOT lwdr PLATplA%dtlY4 �a 152%L. Fwv
lei W rPlor.tlr ndee.Me�..rT�TS e.Rrdanrrf+2%4
rm." -
6t'PPI
D.re..erMMb
rL.orr,PerM
A ....'evr rwe
r.Ib/b.
Firm
e.tr HAP
SLIK"P.7M
Wwem
SIAM.tM
&Am
tleeW lDS..Hy
11A77215AM
WwAM
SIAMATT
1.M%
Sabr YawdT
$237. AM
So.Mims
3175.1M
SN%
D.IrPCa.o.aeL.b
$14117nAN
81AAIAIS
081.222
LN"
a—COW
MoIAMMD
ms"4=
Sm2M
'Am
M—C~d PAr..3
SloweAM
SLSSAM
Stl)peD
TAT%
Tdb UMYr
T151,1MAM
St.—MO
ItSLIM
It.]D%
F P.e.IC Ow
I i177AMW
I S1A"4
i SMMI
SAD%
Seas CST a Dr1r POOO. Ka54
More PLOT lwdr PLATplA%dtlY4 �a 152%L. Fwv
lei W rPlor.tlr ndee.Me�..rT�TS e.Rrdanrrf+2%4
aqr Aram OPall,wot.
Nebo PlOfbddroDrnls.lW.M' 9.LOT -. dtC4 ®sb 2u 131%4 sePAAb
%Ir W r PIDp.Pr Ald.aMA.wdPpei/s e�rAllreSS bierp2714
SeeMeP
rm." -
6t'PPI
Yw+eew■
TmDle
r%.ar Pena
rwTs%
eww..■Temor
belDlviA
E..O w
a--.;.VT-Aft
PLOT hMD1eM
PLOT YTee.Lb
alrrh.sr
$54.71 M
MAMAS
$1M M
lte%
YPniLlsA terrandl
IMTATTAM
ISMC M
$0.747
6.71%
It.orl.n V
MA, IMIM
11D8Al17DT
"ClAn
oAO%
Tres CaeDD
SISLUL M
KII& M
MSAM
62A%
MrEnYrSL.eBeebn
S/SASSSM
Iakw
1114135
SASS
ElwrslCtSpl.
fd$.1PDAM
1$MM1
D
SAD%
Hlerater
Mo71.Am
IMaxu
o
AADs
1Mnb*C.&W
SMAwm
$I~*
A
eAe%
aqr Aram OPall,wot.
Nebo PlOfbddroDrnls.lW.M' 9.LOT -. dtC4 ®sb 2u 131%4 sePAAb
%Ir W r PIDp.Pr Ald.aMA.wdPpei/s e�rAllreSS bierp2714
SeeMeP
rm." -
6t'PPI
Yw+eew■
TmDle
r%.ar Pena
rwTs%
eww..■Temor
Her Q. -Ww w
SIASIAn }M
1341SM M
MAZWO
4AM
beYse.tlM —ft H.*w
tniML1M
Sa.IMMO
N21SSa
SAS%
TW4rlva C.A.
Ss12MAM
"ILTnAM
3/.015221
1AeS
iW MSMefra RrsR4 C.P
SIN210AM
83ArDA72
MILTM
n0
QADM1H.ww
SMASTAM
SILTSG. M
62028
IAS%
DoeMYd.I C.DV
SDMARIM
SLISIIn
=i.w
Ln%
Ber Yael DeePVSe WCb
Mt1."1 m
=A-=
MATAM
QTR
O..AelrC.v Y.LLDe
i}3P.LZZJSDP
I M.UtAII
I SISI,gS
2.N%
1p."Wftr llvppd
SPLrn.—
R261AM
3nAN
1AR
hSr 31.EYallh lra Ct
S?SLSKM
feMSAM
M
oAO%
i.MHPepbl
S111.MIAM
NAMAM
I So
0AO%
SIE Dep/rlleepRd
.134470128
11A2SAM
I M
I oA
S`—CaraDrmr2 ,4e-4n
Hire PLATlbdr aer 1r./.ie —PLOTm A %d IW14 —ft rwo.ails ILA %4.M an.1T
1. W m,.P— r.darnrT-ft r—W a —e —(32 %4
V4
r
R-o.ue Potential of PILOTs in Minnesota
Nu bw of CWw Peftnt r punrbb 5l
ad T— 4 hapwq T -RAw`w
;105 0. NO P tWdMNY WAhM n
447 UaM 1%
115 13%
17 5-10% -_-
• 1 Crw�1 -10%
bansN AMyaPyM• Po ly Tr ft* R
11aw1
NaY[Rawiu�aY MarYe�!� •� Al�Aam aM
hppY Mt M bo/al�aq tliadr a —qa A Y oY M
0]iw�0000il
Argument fiorrPlLOTs
Nonprofits shouttpay 001i r
services they consume;
PILOTsprov�de essential revenue for" r
some munlO alities
PILOTS can address mequitaes cl-ea €ecl
by the �l1 Ie:Rr9 'Orly taX x 9R Y
PILOTS cahydduce inefficientlocdon
decisions trlede by nonpro
Arguments Against I'tL "OTs'±
'PILOTs are often. ad hoc, secretive, and
contentious
• PILQTs provide limited and unreliable
revenue .and may, have high
administrative 'cost
• PILOTs may lead_nonprofits to cut
services or; employment
r
Desirable Features of a Tax System vs. PILOTs
. Ta y.M
Y.
OLToraww .ba
b M
P.a
CpLPTaapa.a..bidYLbrpP.pOgao
/kMvd Equity B
BarPlOTnM..
1F
daPr�V
1.msrb
Varp. Egiy r
r. l
.r
n r,l pA
.MbpM1.
ni
.a•A.➢r.
hiar
Iw.Maq 1
Mn .a.fb
a.pdb
awd
.
liYrro df..
waW
praYMwNpIL W
.F.
ndn.npb.
a o R.r
�p P
aaaY.r N.Pp .
pTp I
.e r
Ym..Ta
F.s
nY Fa
�m}aH nFme.p
WPaNay.
ry n w
Ways Local Governments Can Obtain Financial Contributions from Nonprofits
pY ShcdrT PAsmYir
PLOT,
f.Ybtlg PLOT bbM
VW4/ C-1014-9 Ai11,MMYn 0-bMO. C.,0111.0- vAphM
"em"bOny PLOTA.SLOrs Shd*d —A. f— nw. W.
MEMO. nA. F.. F —PdltYr
Ma .p!aatl07b b a1R bb. 0k a
.rb 0
y b M de. onm F l a Oaw Ppb.Y
rW.a .W t .
b T
Ch.g. PP.nyf omd
SP.W A .—ft P9"t%N.Vlft
b b
P6
a
r
.ownwr�r rs.brMras�rraw...m..
aw.wq ar aaaPaO asr W hl M v� b MrY b H%r�
aWipKpbvr6FM Mw
PLAN.
LOTe .
/kMvd Equity B
BarPlOTnM..
. a
Varp. Egiy r
r. l
.M.b.r '
Iw.Maq 1
r �
praYMwNpIL W
.rPhmwAlMCPf br^ p
�p P
aaaY.r N.Pp .
pTp I
.e r
p
nd— d
PaP.
♦ PLOT. - -tM f—v,. 44.01-
♦ • ♦ ♦ ♦ PLm Or.n Y r pr.
9
MFY.RM..lbtl..Nxb .noMrpW.oV ll wb
y PLOT.
NaydWy bdNMbI PLOT so—rib bd ar w.i.pa with few
Sy ft—G. PLOr P-r— bad r w ""Rl" wM w. - d -,W-M
C.I.MW.lerl —b PC=. d
b
1'11
♦ PLOT. - -tM f—v,. 44.01-
♦ • ♦ ♦ ♦ PLm Or.n Y r pr.
9
MFY.RM..lbtl..Nxb .noMrpW.oV ll wb
y PLOT.
NaydWy bdNMbI PLOT so—rib bd ar w.i.pa with few
Sy ft—G. PLOr P-r— bad r w ""Rl" wM w. - d -,W-M
C.I.MW.lerl —b PC=. d
b
1'11
• s.i.unaw«wsw.s
• Md. w sr.eu
♦ C. War wMcRb P PLOPq wt n AqwtT WOrn off bn reb
♦ O... R...Mu I., h"n .Wm m ic.d.
♦ Ra hWAd ~ PRAT MF-ft"
AA aiv�j
1/
PILOTS in Perspective
Nonprofit organizations operated for charitat
ble purposes in the United States are exempt
from most taxes, including investment income,
IN 120—
They benefit from
the tax deductions that donors receive for
charitable contributions, and some nonprofits
also benefit from financing raised through
tax - exempt bonds. Data allows informed
estimates of the size of these tax benefits
for most types of charities. However, compre- Gregory K. Ingram
hensive data on religious organizations and governments,
both of which are also largely exempt from taxes, are difficult
to obtain.
A review of these tax benefits provides a useful perspec-
tive on efforts by state and local governments to collect
PILOTS (payments in lieu of taxes), which generally focus on
nonprofits other than religious organizations (see page 23).
Tax benefits for nonprofits, such as educational institu-
tions, health and human service organizations, foundations,
and the arts, were worth about $140
least. The exemption for the tax on invest-
ment income has the same ranking as the
overall tax benefit, but rankings of the other
tax benefits vary widely.
The property tax exemption accrues to
those sectors that use property and build-
ings most extensively, with health having the
highest benefit followed by education. Foun-
dations, which figure significantly in income
and charitable contribution tax benefits, re-
ceive only modest property tax benefits. Sales tax exemp-
tions, the smallest tax benefit in the aggregate, accrue mainly
to the health sector.
This summary of the distribution of property taxes by
charitable sector makes it clear why local governments
have focused their efforts to collect property tax PILOTS on
hospitals and universities — that's where the property tax
money ism but most tax benefits for nonprofits come from
other sources.
billion in FY2009. About half ($72 billion)
was from forgone taxes on investment
' Charitable Nonprofits, billions)
income, about a third ($46 billion) was
the tax benefit for charitable contribu-
tions, and j
$30
Sales tax exemptions ($3 billion) and
25
benefits from tax - exempt bonds ($5 bil
lion) round out the total.
20
In 2009, nonprofit property tax
15
exemptions (excluding those for reli-
gious organizations) were slightly less
10
than 4 percent of the $400 billion
total. Of course, the property tax ex-
5 Investment Income Tax
emption share varies widely across
Charitable Deductions
0 / dw dop �r
communities.
A _ State /Local Property Tax
AW Tax Exempt
The distribution of five types of tax
as °a�oc �ea\�r �.o °y a °5 e� Sales Tax Exemption
benefits are shown in the figure for six
boa °aa e �5os` P
categories of nonreligious charitable
nonprofits. They are listed in the order
of their overall tax benefit, with edu-
Sources: Totals from An Overview of the Nonprofit and Charitable Sector. 2009. Congressional
Research Service ( www. fas .org/sgp /crs /misc /R40919.pdf). Sector allocations based on data from
cational institutions receiving the most
National Center for Charitable Statistics (http: / /nccs.urban.org) and J. Cordes, M. Gantz, and T.
Pollak. 2002. What is the property -tax exemption worth? In Property -tax exemption for charities,
benefits and arts organizations the
ed. E. Brody. Washington, DC: Urban Institute Press.
OCTOBER 2010
1=0
AM
Payments in Lieu of Taxes: Balancing Municipal and Nonprofit Interests
haritable nonprofit organizations,
including private universities, non-
profit hospitals, museums, soup
kitchens, churches, and retirement homes,
are exempt from property taxation in all
50 states. At the same time, these non-
profits impose a cost on municipalities by
consuming public services, such as police
protection and roads. Payments in lieu of
taxes (PILOTS) are payments made volun-
tarily by these nonprofits as a substitute
for property taxes.
In recent years, municipal government
revenue pressures have led to heightened
interest in PILOTS, and over the last de-
cade they have been used in at least 117
municipalities in at least 18 states. Large
cities collecting PII.OTs include Baltimore,
Boston, Philadelphia, and Pittsburgh. Bos-
ton has one of the longest standing and
the most revenue productive PILOT pro-
gram in the United States.
PILOTs are a tool to address two prob-
lems with the property tax exemption pro-
vided to nonprofits. First, the exemption is
poorly targeted, since it mainly benefits
nonprofits with the most valuable proper-
ty holdings, rather than those providing
the greatest public benefit. Second, a geo-
graphic mismatch often exists between the
costs and benefits of the property tax ex-
emption, since the cost of the exemption
in terms of forgone tax revenue is borne
by the municipality in which a nonprofit is
located, but the public benefits, provided
by the nonprofit often extend to the rest of
the state or even the whole nation.
Ts can provide crucial revenue
for certain municipalities, and are one way
to make nonprofits pay for the public ser-
vices they consume. However, PILOTs are
often haphazard, secretive, and calculated
in an ad hoc manner that results in widely
varying payments among similar nonprof-
its. In addition, a municipality's attempt to
collect PILOTs can prompt a battle with
nonprofits and lead to years of conten-
tious, costly, and unproductive litigation.
Payments In Lieu of Taxes: Balancing
Municipal and Nonprofit Interests
Daphne A. Kenyon and Adam H. Langley
2010 / 56 pages / Paper / $15.00
ISBN: 978 -1 -55844 -216-0
Policy Focus Report / Code PF028
Ordering Information
Contact Lincoln Institute at
www.lincoininst.edu
For this policy focus report, authors
Daphne A. Kenyon and Adam H. Langley
have researched the continuing policy de-
bate over property tax exemptions among
municipalities and nonprofit organiza-
tions, and they offer the following recom-
mendations.
PILOTs are one revenue option
for municipalities. They are most ap-
propriate for municipalities that are highly
reliant on the property tax and have a sig-
nificant share of total property owned by
nonprofits. For example, a Minnesota study
found that while PILOTs could increase
property tax revenue by more than ten per-
cent in six municipalities, there was negli-
gible revenue potential from PILOTS for
the vast majority of Minnesota cities and
towns. Similarly, PILOTs are not appro-
priate for all types of nonpro 'fi
ts.EMPEnTJ
art suitably' nonprofitsim own
large amounts of tax - exempt property and
provide modest benefits to local residents
relative to their tax savings.
Municipalities should work col-
laboratively with nonprofits when
seeking PILOTS. The best PILOT ini-
tiatives arise out 'of a partnership between
the municipality and local nonprofit orga-
nizations, because both sectors serve the
general public and have an interest in an
economically and fiscally healthy commu-
nity. In some cities, case -by -case negotia-
tion with one or several nonprofits is best,
as is the case between Yale University and
New Haven. In cities with a large number
of nonprofits, such as Boston, creating a
systematic PILOT program can promote
horizontal equity among tax- exempt non-
profits and raise more revenue than nego-
tiating individual agreements.
Both state and local governments
should consider other alternatives
to PILOTS. State governments should
consider providing grants to local govern-
ments that host tax- exempt nonprofits to
compensate them for their loss of property
tax base, as is done in Connecticut. If
states are unwilling to provide such grants,
municipalities can consider alternative ways
to raise revenue from tax - exempt non-
profits, such as increased user fees.
1 ABOUT THE AUTHORS
... ...............................
Daphne A. Kenyon is a visiting fellow
in the Lincoln Institute's Department of
Valuation and Taxation and principal of D.
A. Kenyon & Associates, Windham, New
Hampshire. Contact: dkenyon @hncolninst.edu
Adam H. Langley is a research analyst
in the Lincoln Institute's Department of
Valuation and Taxation and a master's
student in economics at Boston University.
Contact: alangley@lincolninst.edu
n C T n R F R 7 () 1 () • %nald I ;_ 0 11Nl1A11u 1I11CT1T1 ITC AC I A \In —env 11
Town of Reading Finance Committee
Mission Statement / Guiding Principles
The Reading Finance Committee will use all available authority and resources to advise
Town Meeting on fiscal matters in accordance with the Reading Home Rule Charter and
applicable state statutes, recommending the most responsible allocation of funds to
deliver the highest quality municipal services to the citizens of Reading.
This will be accomplished by:
• . Establishing clear financial policies to provide guidance in the conduct of the
fiscal affairs of the Town
• Recommending and adhering to fiscally sound management practices
• Working collaboratively with Town staff, boards and committees to ensure a
financial planning process that is inclusive of all interests
• Monitoring budget developments and expenditures vigilantly
• Considering longer term fiscal impacts of recommendations on Town finances
• Factoring in community priorities and fiscal sustainability of services in
recommending financial positions
• Upholding the Reading Home Rule Charter and By -Laws
OR
The Finance Committee of the Town of Reading will be guided by the following values
adopted by the Board of Selectmen:
Integrity and Transparency
• Reading municipal government and its employees and officials will be guided by
the highest standards of ethics and integrity.
• Municipal business will be conducted in an open manner with opportunities for
public discussion and input into decisions.
• The community will be kept informed with open communication.
• All official business will be conducted in a civil, professional, and mutually
respectful manner.
Excellence
Excellence will be the standard for all municipal services, with continuous review
and evaluation of best practices, incorporating new methods and technologies,
striving for efficiency and cost effectiveness.
Reading municipal government will make decisions based on careful planning
consistent with town -wide goals.
Diversity
•
Municipal government will encourage diversity and respect for differences in the
conduct of its business .and in recruiting and hiring personnel and in providing
enrichment opportunities for the community.
Community
The following are values that the community holds in high regards:
• Social, Environmental, and Financial Suistainability
• Tolerance, Civility and Cultural Diversity
• Volunteerism and Civic Engagement
• Historic Preservation and Open Space
• Recreational, Cultural, and Educational Opportunities
be Town of Reading - Policy on Cash Reserves
Residents
http:// www. readingma. gov/ Pages /ReadingMA_P inanceicasnreserves...
Policy on Cash Reserves
Printer - Friendly Version
Finance Committee
December 2006
A
The Finance Committee ( FINCOM) of the Town of Reading hereby establishes
and adopts a Policy establishing a minimum target for cash reserves of 5% of
Net Available Revenue (as defined below). Further, the FINCOM recognizes that
circumstances may occur which would require the FINCOM to raise or lower this
minimum from time to time.
The FINCOM recognizes that the financial health of the Town of Reading is of
paramount importance to its residents who receive essential services; to its
bondholders who provide funding for long -term Town projects; to its vendors who
provide services and equipment to the Town; and to its current and retired
employees. This Policy on Cash Reserves is designed to protect the community from
sudden and unexpected changes in revenues or expenses.
Googls Search ;.
Funds in excess of the current Cash Reserves Policy may be:
Added to reserves. This will increase the financial cushion against any sudden
y K and unexpected changes in revenues or expenses.
Added to the Capital Improvement Program. This investment will reduce future
maintenance and repair costs.
`W ;' *'L"' Added to the funding of any long term liability. This will reduce the need for
COMMON future contributions towards the pension fund or other post - employment benefit
costs.
Used for one -time expenses for community priorities.
Used to supplement the current fiscal year budget, including the opportunity to
reduce property taxes or other fees for the Town's residents.
Cash Reserves are defined as the sum total of free cash, uncommitted Stabilization
Funds, and the FINCOM Reserve Fund. Other reserves (such as Sale of Real Estate
funds, committed Stabilization Funds and overlay reserves) are excluded from the
5% minimum requirement, though these funds may be considered if circumstances
require higher reserves.
Net Available Revenue is defined as all general fund revenues, excluding any
MSBA reimbursements made inside the tax levy, or any revenues collected outside
the tax levy.
The most recent set of certified financial statements will typically be used to calculate
both Cash Reserves and Net Available Revenue. The FINCOM may use the best
estimates from the Town's financial staff at other times.
4/77 /In 1'1 1 •SO P
'he Town of Reading - Debt & Capital Policy
http:// www. reaclmgma.gowrages /KeaalngiviA—r tnanceiueotpuucy
Google Search
r ;
Debt & Capital Policy
Printer - Friendly Version
Finance Committee
December 2006
The Finance Committee,(FINCOM) of the Town of Reading hereby establishes
and adopts a Debt & Capital Policy that a minimum of 5% of Net Available
Revenue ('NAR' - as defined below) shall be devoted to construct and replace the
capital plant of the community, both as debt repayment and annual payments as part
of the budget for capital items.
The FINCOM recognizes that a prudent Capital Improvement Program (CIP) will
serve to avoid excessive maintenance and repair costs, and reduce the need for
sudden and unexpected capital expenses that may have an adverse impact on the
Town's operating budgets.
The FINCOM also recognizes that from time to time additional capital expenses over
this 5% minimum will be beneficial for the long term ,financial health of the Town.
These additional expenses may be funded either by use of excess Reserves (as
described in the FINCOM Cash Reserves Policy), from the general fund (by way of a
budget increase above this 5% minimum Policy), or through other methods outside
of the tax levy.
The FINCOM encourages a prudent use of debt so as to spread out the cost of large
w , capital assets over a period of time that should not exceed the expected useful life of
Q.N
'the asset. If debt service of any new capital project is expected to exceed 0.25% of
NAR in any single year, the project should instead be brought forward as debt or
capital excluded from the tax levy.
The Capital Improvement Program will be a minimum of five years of projected
capital projects that reflect the prioritized needs of the Town, subject to the
anticipated funding provided by this Policy. This CIP will be presented at least twice
each year to the FINCOM by the Town's financial staff, in advance of both the
Annual and Subsequent Town Meetings.
Net Available Revenue is defined as all general fund revenues, excluding any
MSBA reimbursements or revenues collected outside the tax levy.
The most recent set of certified financial statements will typically be used to calculate
Net Available Revenue. The FINCOM may use the best estimates from the Town's
financial staff at other times.
Town of Reading, Massachusetts 16 Lowell Street, Reading, MA 01867 Website Disclaimer
ci��i�ni2 i.co dn•,f
DRAFT
Policy on Funding Other Post Employment Benefits (OPEB)
Finance Committee
June 2012
The Finance Committee ( FINCOM) of the Town of Reading hereby establishes
and adopts a Policy establishing a minimum target for annual OPEB funding in
both the General and Enterprise funds (as defined below). Further, the FINCOM
recognizes that circumstances may occur which would require the FINCOM to raise or
lower this minimum from time to time.
The FINCOM recognizes that the financial health of the Town of Reading is of
paramount importance to its residents who receive essential services; to its
bondholders who provide funding for long -term Town projects; to its vendors who
provide services and equipment to the Town; and to its current and retired employees.
This Policy on OPEB funding is designed to protect the community from a) the near -
term budget impact of a sudden change in law that would require such funding; and b)
the longer -term need to reduce a large liability.
Health Insurance Premiums are defined as the best estimate from the Town's
financial staff by early November of the cost of the Town's share of employee and
retiree premiums for the following fiscal year.
General Fund OPEB contribution: Not less than 5% of the estimated premium costs
for employees and retirees covered by the general fund will be set aside in the
following fiscal year as a preliminary OPEB contribution. It is expected that the
estimate will be improved by mid - February when final premium rates are released. The
preliminary OPEB contribution may be then adjusted higher or lower when final
premium rates vary from the initial estimate. This policy will help cushion the budget
process from any late adverse impacts of changes to health insurance premiums.
Enterprise Funds OPEB contribution: These funds are expected to fully fund the
OPEB liability annually, according to an actuarial schedule agreed to by the Town's
financial staff, and a funding term not to exceed thirty years.
ACI\
2 Bar av,n amm M " arch -2012
Comparative Health Insurance split —Town Vs. Employees
Melrose --- 87- 13 ...
Active— Retiree.....G.I.0
Saugus--- 90 - - -10. Active— Retiree G.I.C.
781- 979 -4145
Stoneham --- 85 --- 15 ... Active --- Retiree .... G.I.C.
781- 279 -2630
----------------------------------------------------------------------------------------
Wakefield--- 80 - - -20
Active --- Retiree.....G.I.
C.
781 -246- 6396 -- -6340
75 - - -25 For P.P.O.
------------------------=--------------------------------------------------------------------------------
North Reading --- 70 --- 30 ... Active --- Retiree ... Harvard Pilgrum
50 - - -50 P.P.O. 978- 664 - 6065 -6010
Wilmington --- 75 --- 25 ... Active --- Retiree Blue Cross -= 978- 658 -3675
Lynn--- 85 - - -15 H.M.O. Harvard Pilgrum
70 - - -30 P.P.O.
Active - -- Retiree 781 -586 -6904 ( Richard)
978 - 694 -2035
Saugus--- 90 - - -10. Active— Retiree G.I.C.
781 - 231 -4142
-----------------------------------------------------------------------------------------------------------
Burlington--- 70 --- 30... Active— Retired
781- 270 -1774
Chelmsford --- 75 --- 25— Active .... 60 --- 40— Retiree Bc -MIIA
63 - - -37 P.P.O.
978 - 250 -5288
Malden--- 80 - - -20 H.M.O. Active — Retiree...
Harvard- Pilgrum
82.5 --- 17.5 "Fire Only"
75 --- 25 --- P.P.O.
781- 397 -7187
Medford--- 80-- -20 - -- Active - -- Retiree G.I.0
H.M.O.— P.P.O. 781 - 393 -2405
Andover - -- 81.1 -- -18.9 Ind. H.M.O.
76.9 --- 23.1 Family.
65 - - -35 P.P.O. Active - -- Retiree 978 - 623 -8530
Lynn--- 85 - - -15 H.M.O. Harvard Pilgrum
70 - - -30 P.P.O.
Active - -- Retiree 781 -586 -6904 ( Richard)
Lexington--- 85-- -15 - -- H.M.O. & P.P.O. Active — Retiree G.I.C. 781- 862 -0500 X 276
Lynnfield --- 75 --- 25— to- 85 --- 15 Active - -- Retiree — G.I.C. 781 -334 -9430
Winthrop--- 85-- -15 - -- H.M.O. & P.P.O. Active — Retiree G.I.C. 617 - 875 -2351 (Mike)
Winchester--- 75-- -25 - -- Active -B.C. B.S —MIIA
73--- 67--- Retiree 781- 721 -7116
Danvers--- 70-- -30 - -- H.M.O. B.C.— B.S - -- Active— Retiree 978 - 777 -0001 X 3031
Tewksbury--- 75-- -25 - -- P.P.O. H.M.O. Active — Retiree — B.C. —B.S.
80 - - -20— Dental Active — Retiree 978- 640 -4488
North Andover--- 75 - - -25 B.C. H.M.O. Blue Active – Retiree Starting -6 /30/2012
978- 688 -9526
Belmont--- 80 - - -20— Active— Retiree - -- Harvard Pilgrum H.M.O— P.P.O.
617- 993 -2740
Lawrence--- 75 - - -25 Active — Retiree - -- G.I.C.
80--- 20—for some Unions...
State Employees- - - - - -- G.I.C. - - -- Information to follow..........
978 - 620 -3070
Beverly--- 75 - - -25 H.M.O. Blue
80 - - -20- Harvard Pilgrum Active — Retiree 978 - 605 -2366
Peabody--- 85- - -15 -- -Blue Care Elect— Active - -- Retiree 978 -538 -5721
M. B.T.A.--- 85 --- 15— B.C. — Tufts - Harvard Pilgrum
For Carmans Union — {Largest Union within "T"
90 - - -10 For Retirees 617- 222 -5855- X 3244
Boston--- 75--- 25 —B.C. B.S— Harvard Pilgrum Active — Retirees
617- 635 -3370
Salem--- 74 - - -26— Non -Union
75- - -25 -- -Union G.I.C. as of 7.1/2012
Active— Retiree 978- 619 -5630
Lowell --- G.I.C. — Starting as of 7/1/201/ New Rates Not Yet Established
- 978- 674 -4105
Natick--- 90 - - -10 Harvard Pilgrum— Tufts --- Fallon —B.C. B.S.
50 - - -50 Retirees 508- 647 -6471
Somerville--- 85 - - -15- G.I.C. -- 11 Plans - -- Active — Retirees
617- 625 -6600 X 3320 —Mary Lally
Revere--- 80 - - -20 B.C. B.S. Harvard Pilgrum --- Active --- Retirees
781 - 286 - 8202 — Benefits Office
Everett--- 85 - - -15 Harvard Pilgram --- Active—Retirees 617-394-2281—Nancy---
B.C.—B.S..
Chelsea--- 80 - - -20 H.M.O. Harvard Pilgram As of 5/1/2012
70 - - -30 P.P.O. 617-466-5958—Karen-
Cambridge --- 75 --- 25 For all new hires - -- Active Employeed Harvard Pilgrum—
Tufts -
85 --- 15 for Retiees - - -- 617 - 349 -4337
Woburn --- 80 - - -20 H.M.O.
65 - - -35 P.P.O. B.C. -B.S. MIIA- Active Employees
90 - - -10 H.M.O.
75 -25 P.P.O. For Retirees Over 65 --- 80- 20..Part
All Starting - -- 7/1/2012 781- 932 - 4459 -- -(Jan)
----------------------------------------------------------------------------------------- - - - - --
d
RATE SAVERS
Fallon HMO
Monthly
Se /ectCare Individual
Premium
Harvard Pilgrim EPO Individual
586.00
Family
1,529.00
Blue Options (BC /BS) Individual
603.00
Family
1,620.00
Tufts Navigator Individual
620.00
Family
1,62100
Fallon HMO
Town @ 90%
Se /ectCare Individual
521.00
Family
1,40400
DirectCare Individual
485.00
Family
1,305 00
INDEMNITY PLANS
Monthly
Premium
Harvard Pilgrim PPO Individual 1,562.00
Family 3,469.00
Tufts POS Individual 1,562.00
Family 3,469.00
TOWN OF DEDHAM
HEALTH INSURANCE RATES
JULY 1, 2012 - JUNE 30, 2013
90/10
Town @ 90%
Employee @ 10%
Pays
Pays
Monthly
BiWeekly
Monthly
52740
58.60
N/A
1,376 10
152 90
N/A
542.70
6030
N/A
1,458.00
162.00
N/A
558.00
6200
N/A
1,460.70
162.30
N/A
468.90
5210
N/A
1,26360
14040
N/A
43650
4850
N/A
1,174 50
1 13050
N/A
50/50
Town @ 50%
Employee @ 50%
Pays
Pays
Monthly
BiWeekly
Monthly
781.00
781 00
390.50
1,73450
1,734 50
86725
781.00
78100
390.50
11734.50
11734.50
867.25
85/15
Town @ 85%
Employee @ 15%
Pays
Pays
Monthly
BiWeekly
Monthly
498.10
87.90
43.95
1,299.65
229.35
114.68
512.55
9045
4523
1,37700
24300
121 50
527.00
9300
4650
1,379.55
243.45
1 121.73
442.85
78.15
39.08
1,193.40
210.60
105.30
412.25
72.75
36.38
1,109.25
195.75
97.88
Town @80% Employee @ 20%
Pays Pays
Monthly Monthly BiWeekl
468.80 11720 58.60
1,22320 30580 15290
482.40 12060 6030
1,29600 32400 162 00
49600 12400 6200 .
1,298.40 324.60 162.30
416.80
11 104.20
52 10
1,12320
280.80
14040
IBiWeekly
Weekly
Monthly
38800
9700
4850
1.04400
261 00
13050
75/25
Town @ 75%
Employee @ 25%
Pays
Pays
Monthly
IBiWeekly
Weekly
Monthly
439 50
146.50
73.25
36.63
1,146.75
382.25
19113
95.57
452.25
15075
75.38
37.69
1,215.00
40500
202.50
101.25
465.00
15500
77.50
38.75
1,21725
405.75
202.88
101.44
39075
130.25
65.13
32.57
1,05300
351.00
175.50
87.75
36375
121.25
60.63
3032
978.75
326.25
163.13
81.57
RATE SAVERS
Monthly
Premium
Harvard Pilgrim EPO Individual 610.00
Family 1,590.00
Blue Options (BC /BS) Individual 628.00
Family 1,685.00
Tufts Navigator Individual
645.00
Family
1,68800
Fallon HMO
Monthly
SelectCare Individual
54200
Family
1,46000
DirectCare Individual 505.00
Family 1,357.00
INDEMNITY PLANS
Monthly
Premium
Harvard Pilgrim PPO Individual 1,75000
Family 3,886.00
Tufts POS Individual 1175000
Family 3,886.00
J 1
TOWN OF DEDHAM
HEALTH INSURANCE RATES
JULY 1, 2013 - JUNE 30, 2014
90/10
Town @ 90%
Employee @ 10%
Pays
Pays
Monthly
BiWeekly
Monthly
549.00
61 00
N/A
1,431 00
15900
N/A
565.20
6280
N/A
1,516.50
168 50
1 N/A
580.50
64 50
N/A
1,519.20
168.80
N/A
48780
54.20
N/A
1,3140
146.00
I /A
454.50
5050
N/A
1,221 30
13570
N/A
50/50
Town @ 50%
Employee @ 50%
Pays
Pays
Monthly
BiWeekly
Monthly
87500
875.00
437.50
1,94300
1, 943.00
971.50
875.00
875.00
437.50
1, 943.00
1,943.00
971.50
85/15
Town @85%
Employee @ 15%
Pays
Pays
Monthly
BiWeekly
Monthly
518.50
91 50
45.75
1,351.50
238.50
11925
533.80
9420
47.10
1,432 25
25275
126.38
54825
96 75
48.38
1,43480
25320
126.60
460.70
81.30
40.65
1,241.00
219.00
109.50
429.25
75.75
3788
1,153.45
203.55
101 78
80/20
Town @80%
Employee @ 20%
Pays
Pays
Monthly
BiWeekly
Monthly
488.00
12200
61.00
1,272.00
31800
159.00
50240
12560
6280
1,34800
337.00
1 16850
516.00
12900
64 50
1,350.40
33760
168.80
433.60
10840
54.20
1,16800
29200
14600
40400
101 00
50 50
1.08560
271 40
13570
75/25
Town @ 75%
Employee @ 25%
Pays
Pays
Monthly
BiWeeklyj
Weekly
Monthly
457.50
152.50
76.25
3813
1,192.50
397.50
198.75
99.38
471 00
157.00
78 50
3925
1,26375
421.25
210.63
10532
483.75
161.25
8063
40.32
1,266.00
422.00
211 00
105.50
406.50
135.50
6775
3388
11095.00
365
00
18250
91
25
378.75
126.25
6313
31
57
1,017.75
339.25
16963
8482
LeLacheur, Bob
From: Greenfield, David C <dgreenfield @statestreet.com>
Sent: Tuesday, June 25, 2013 2:16 PM _
To: LeLacheur, Bob
Subject: Financial_ Comparison
Bob,
I think collecting the basic comparative information would let us look at how we compare.
Basis
1. #of employees
Z. # of miles of roads
3. Population
4. Households / taxpayers
��-IZ st��fis
Data Points
1. Revenue
2. Debt — In tax base and outside tax base
3. Capital
4. Education total
5. Town total
5. Roads
7. Snow
3. Police
3. Fire
10. DPW
11. Health
12. Benefits
Ratios (Assumes revenues are mostly used)
1. Rev./taxpayer
2. Debt / revenue
3. Capital /revenue
4. Education / revenue
5. Roads / revenue
5. Roads / mile
7. Snow / mile
8. Police / revenue
9. Police / population
10. Fire /revenue
11. Fire / household
12. DPW / revenue
13. Health / revenue
1
G
14. Benefits/ revenue
Other
1. Overrides in the past 5 years.
I am sure we can refine this before we collect data.
David C. Greenfield, Vice President
State Street Corporation I Risk Management GRS, GPS & SSIA 1 100 Huntington Ave. Boston, MA 02116
P +1617 662 7210 1 C +1 857 204 5973 1 dareenfield(cDstatestreet.com
The information contained in this email: and any attachments. have been classified as limited access and/or privileged State Street information /communication and
is intended solely for the use of the named addressee(s). If you are not an intended recipient or a person responsible for delivery to an intended recipient: please
notify the author and destroy this email. Any unauthorized copying, disclosure. retention or distribution of the material in this email is strictly forbidden.
Go green. Consider the environment before printing this email.
.z
Finance Committee Meeting
May 22, 2013
The meeting convened at 7:30 p.m. in the Conference Room, 16 Lowell Street, Reading,
Massachusetts. Present were Chairman David Greenfield, Vice Chairman Barry
Berman, FinCom micatku Jeanne Borawski, Jeffrey Perkins, Karen Herrick,
Mark Docks ,Hal rma ,Paula Perry and Paul McNeice, Assistant Town
Manager /Finan b LeLacheur, and HR Director Carol Roberts.
Peer Communities
Ms. Borawski mentioned the financial data available . hall MA communities that is
i ��3 r'
found on the DOR's website. Mr. LeLacheur revigW d?'the Town's recent efforts to
participate in national and local statistical comparS* "st4ting that while it is helpful to
gather and compare broad data nationally, for pure ,�i~elevance the local data is better. Ms.
Perry noted the previous discussion on snow and ice ' budgeting and spending
comparisons.
Mr. Greenfield assigned the Committee homework in the: form of askifig!what types of
comparisons they would like to measure Reading versus; other MA communities.
HR Director Carol Roberts reviewed material done by Stone Consulting in December
2008 whereby 21 MA communities were identified by various statistical comparisons as
comparable to Reading. They includeefi Andover,,,Bedford, Belmont, Burlington, Canton,
Danvers, Dedham,, Lynnfield, Mansfield, Marshfield;; . Miltori,' =Natick, North Andover,
North Reading, Shrewsbury,. "Stoneham,,.Tewksbury, Walpole, Westborough, Westford,
and Wilmington.
Mr. Dockser . said he would like, to.eompare Sc400l, DPW and Public Safety data with
{
other ;{Oomilidniti "s Mr. B$rn'an added: Technology to see if we are spending sufficient
amptnts. Mr. Perk §=said we�s�ould addres' the outliers in whatever data we find. Mr.
Greed = old said we shot}l we sli ltId start with the `big' categories. Mr. LeLacheur said
that th� and M M places where data might be found.
FINCOM Policies
Mr. LeLacheur reviewed FINCOM's two standing formal policies: Cash Reserves and
Debt & Capital. Mr. Greenfield said that an OPEB policy would serve two purposes: (1)
set aside a reserve for premium increases above those budgeted; and (2) a discipline to
follow to begin funding the liability.
Ms. Perry asked if the FINCOM policies had discipline, and Mr. Berman cited adherence
to the 5% debt & capital policy during recent difficult budget years. Mr. Greenfield said
he understood the challenges posed by looming Federal government reductions and the
expected impact on local goverments. He asked if town staff could gather comparative
data on OPEB obligations, health care trends and other FINCOM policies. Mr.
LeLacheur stated that would not be ready for the fiscal year end meeting in June but
would be ready for the ,following meeting.
Finance Committee Minutes — May 22, 2013 — page 2
Library Building Committee (LBC)
Ms. Herrick updated the Committee on the status of the Library building project. She
mentioned the various Open Meeting questions that had arisen during the Owner's
Project Manager search process, and that staff would post all such meetings in case
members of the LBC. Mr. LeLacheur said that an OPM contract would be signed in June
and the searches for an Architect and for Temporary Space would begin thereafter. It was
estimated that the Library would move during the winter 2013 -2014.
Approval of Minutes
W1
9
Respectfully submitted,
Secretary
►�
i
4
.� rRego,
0
b
b
6J9'INCORPOa!
Finance Committee: Request for Reserve Fund Transfer
To: FINCOM
From: Bob LeLacheur, Town Manager
Date: June 26, 2013
It is respectfully requested that transfers in the amount of $35,000 be made
from the Reserve Fund to the account shown below which is an unforeseen
or extraordinary expense:
a) West Street Appraisal Service contract #14118588 - 581018
Current FINCOM Reserve Fund balance: $143,000
Resulting balance if all items approved: $108,000
Town Manager Recommendation: Approve Disapprove
Town Manager Signature:
g
Date: June 26, 2013
By a vote of the FINCOM at a meeting held on June 26, 2013 the transfer(s)
for the above purpose(s) in the amount of xxx was:
Approved Denied
Finance Committee
9, Oor/
by a vote of: G " () - 0 .
APPOINTMENTS TO BECOME EFFECTIVE JULY 19 2013
Audit Committee
Term: 3 years
1 FinCom Vacancy
Appointing Authority: Finance Committee, Board of Selectmen,
School Committee, RMLD
Orig.
Present Member(s) and Terms(s)
Date
Barry Berman
54 Longview
(12)
David Greenfield
192 Woburn Street
(09)
Stephen Herrick
9 Dividence Road
(05)
Chuck Robinson
81 Prospect Street
Or-e Park P
(05)
(04)
Camille Anthony
Vacancy
26 ar-d e
(10)
Robert Spadafora
10 Corey Lane
(12)
Candidates:
*Indicates incumbents seeking reappointment
Term
Exp.
2014 Fincom
2013 Fincom
2015 BOS
2014 SchCom.
2013 BOS
2014 RMLD
2015 SchCom.
Term
"pointin Authority
Number of Members
Meetings
uthori
Pu&Rose
AUDIT COAMTTEE
Three years
See below
Seven Members appointed for three year terms so arranged
that as near an equal number of terms as possible shall
Wire each year: No member of the Audit Committee shall
be., a Town. employee; . however, notwithstanding the
provisions of Section 3.4.6 of these Bylaws to the contrary,
a Finance Committee member may be -a member of the
Audit Committee. Two members shall be appointed by-the
Board of Selectmen, two members shall be appointed by
the School Committee, two members shall be appointed by
the Finance Committee and one member shall be appointed
by the Reading Municipal Light Board.
W7"T-
Town Meeting — November 12,1992, Revised 3/3/03
The Audit Committee shall recommend to the Town
Manager the. firm -of independent auditors that is to audit
and report on the financial statements issued by the Town.
The Audit Committee shall review the audit plan with the'
independent auditors- and, upon completion of the audit,
meet with the independent auditors to discuss the results of
the audit and the mmual financial reports. The Audit
Committee shall transmit a copy of the completed annual
audit and report to the Board of Selectmen; the Finance
Committee, the School Committee and the Reading
Municipal Light Board by the end of the calendar year
within which the Fiscal Year covered by the audit occurs.
Office of the Town Clerk
781 - 942 -9050
TO: David Greenfield
192 Woburn Street
Reading, MA 01867
FROM: Peter I Hechenbleikner
DATE: May 6, 2013
Town of Reading
16 Lowell Street
Reading MA 01867
MEMORANDUM
RE: Reappointment to Audit Committee
fax: 781 - 942 -9070
website: www.readingma.gov
Our records indicate that your term of office on the above Board, Committee or Commission will expire on
June 30, 2013.
The Board of Selectmen's policy provides that:
1. All incumbents for terms that are expiring will be sent this questionnaire regarding their desire for
reappointment. This form must be returned to the Town Clerk's Office by May 16, 2013.
2. All positions which are vacant or with terms expiring will be posted, including those where the
incumbent desires reappointment.
3. Incumbents will not be required to fill out new citizen volunteer forms. The Board requests that all
incumbents be available for an interview, or if you are not available, that you submit a written
statement outlining your experience and your interest in being re- appointed.
Please indicate below whether or not you desire reappointment to this position, and return this signed
form to the Town Clerk's Office by May 16, 2013. If we do not hear from you by this date, we will assume
that you do not wish to be re- appointed.
I wish to be considered for reappointment.
I do not wish to be considered for reappointment.
Signature
cc: Committee Chairman
Date