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HomeMy WebLinkAbout2014-03-12 Finance Committee Packetk Town of Reading Meeting Posting with Agenda , i�ECEIVED [OWN CLERK u_a }'DING. MASS. Board - Committee - Commission - Council: Finance Committee 2014 MAR -b P 3. of Date: 2014 -03 -12 Time: 7:00 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Purpose: General Business Meeting Called By: Paula Schena on behalf of Chairman Barry Berman 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 not be accepted. Topics of Discussion: 1) Discussion/Action Items a. School Department FY15 Budget 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. Page 1 1 Town Manager Unfunded Priorities FY15 Town Budget Town Department Budget Process For the past decade, the Town annual budget process begins in late summer with a series of informal meetings with Department Heads and some staff members, in order to review the past and plan for the future. This proactive and collaborative planning has, for example, placed two additional Police Officers in position as new commercial and large scale residential growth has occurred. A lack of planning would have instead waited for community issues to develop, and then reacted to those issues. FINCOM is reminded to step back and consider this long -term planning atmosphere, even while focused on the short -term task of evaluating the FY15 Town Manager's submitted budget. The process this year began with two requests from the Town Manager for all Town departments, which represented the first two of 31 formal Town Manager FY15 Goals adopted by the Board of Selectmen on July 9, 2013: 1. Design optimal Town department /division structure, regardless of current set -up or specific personnel, including the role of the Assistant Town Manager. Describe detailed transition plan from current status to such an optimal model, including specific personnel. 2. Establish optimal professional development (PD) and training levels across all departments. Devise multi -year process to transition from current status to desired outcome. Focus on tracking compliance with PD job requirements as well as optional PD for advancement. Although closely related, these two Goals were analyzed from two different angles: the best timing for implementation of any changes and the differences of implementation opportunity between non- union and union staffs. Non -union staffing changes were designed to occur at the next available Town Meeting (first September, then changed to November 2013), while any union changes would be subject to the collective bargaining process with the Town's six unions and thus deferred to a later date. Changes to professional development were also deferred to the FY15 budget process, for both affordability and collective bargaining reasons. A staffing re- organization plan was developed by consensus and presented to the Board of Selectmen in the fall of 2013. After some discussion, it was reduced in scope and portions were left to an independent consultant to study non -union compensation and job classification. The remaining portion of staffing changes that were non -union were presented to and approved by Subsequent Town Meeting in November 2013. Further possible staffing changes are currently being discussed with the unions within the collective bargaining process. Changes to professional development waited for the FYI 5 budget process, and have been described by each Department Head as part of their FY15 budget review. Some specific changes are also currently being discussed with the unions within the collective bargaining process. As a result of this planning process, many possibilities were discussed, culminating with the formal FY15 budget requests from Department Heads as well as the elected Library Trustees and Board of Assessors in early December 2013. These formal requests would have produced a +6.6% Town budget, well over the +3.3% balanced budget required by FINCOM. Following the formal submissions, several internal meetings served as brain - storming work -shops with the goal of collaboratively producing the optimal FY15 budget that would balance the funds available with the immediate community needs, while being very mindful of including an element of planning ahead. The table above summarizes the $689,195 of unfunded items that did not make the cut in FY15. Unfunded Items The chart above that shows the additional +3.3% requested has three main parts: ➢ $508,705 in additional hours, overtime and new positions, or 2.5% of the total 3.3% requested; ➢ $92,519 in additional raises, or +0.4% of the total requested. Note this is composed of an additional +0.5% COLA for all Town employees, except for effectively an additional +2% COLA for Library employees; y $87,970 of miscellaneous other items, or +0.4% of the total requested. As mentioned, the planning process culminated with the requested budgets described herein. However a discussion of other `wish list' items (shown as * below) will serve to underscore to FINCOM the wide - ranging community needs and the long -term planning process that is needed to address the unmet needs. Note some figures below do not match the table because clerical hours were subsequently rearranged between departments. Unfunded Additional Hours: Administrative Services $69,712 to continue both business administrator positions $11,500 additional hours for new Operations Specialist $ 5,500 technology & operations OT * 1.0 FTE Technician *2.0 FTE Help Desk for Town software systems *some additional HR assistance As described during the Administrative Services budget discussion, one of the Business Administrator positions was eliminated in FY15. A request to add a Business Analyst Total Budget Unfunded Re nests UR % Add'l Hours Add'l Hrs% Add'l Raises Other Admin. Services $2,290,550 $126,196 5.5% $76,538 3.3% $4,358 $45,300 Community Services $1,411,825 $87,884 6.2% $77,227 5.5% $9,657 $1,000 Finance $712,425 $12,902 1.8% $4,000 0.6% $2,602 $6,300 Police $4,501,506 $21,430 0.5% $2,060 0.1% $19,370 $0 Dispatch $447,010 $78,473 17.6% $77,587 17.4% $286 $600 Fire & EMS $4,313,925 $176,648 4.1% $156,826 3.6% $19,822 $0 Public Works $5,547,625 $79,495 1.4% $54,782 1.0% $10,213 $14,500 Public Library $1,376,885 1 $106,167 7.7% $59,685 4.3% $26,212 $20,270 Total $20,601,751 1 $689,195 3.3% $508,705 2.5% $92,519 $87,970 As a result of this planning process, many possibilities were discussed, culminating with the formal FY15 budget requests from Department Heads as well as the elected Library Trustees and Board of Assessors in early December 2013. These formal requests would have produced a +6.6% Town budget, well over the +3.3% balanced budget required by FINCOM. Following the formal submissions, several internal meetings served as brain - storming work -shops with the goal of collaboratively producing the optimal FY15 budget that would balance the funds available with the immediate community needs, while being very mindful of including an element of planning ahead. The table above summarizes the $689,195 of unfunded items that did not make the cut in FY15. Unfunded Items The chart above that shows the additional +3.3% requested has three main parts: ➢ $508,705 in additional hours, overtime and new positions, or 2.5% of the total 3.3% requested; ➢ $92,519 in additional raises, or +0.4% of the total requested. Note this is composed of an additional +0.5% COLA for all Town employees, except for effectively an additional +2% COLA for Library employees; y $87,970 of miscellaneous other items, or +0.4% of the total requested. As mentioned, the planning process culminated with the requested budgets described herein. However a discussion of other `wish list' items (shown as * below) will serve to underscore to FINCOM the wide - ranging community needs and the long -term planning process that is needed to address the unmet needs. Note some figures below do not match the table because clerical hours were subsequently rearranged between departments. Unfunded Additional Hours: Administrative Services $69,712 to continue both business administrator positions $11,500 additional hours for new Operations Specialist $ 5,500 technology & operations OT * 1.0 FTE Technician *2.0 FTE Help Desk for Town software systems *some additional HR assistance As described during the Administrative Services budget discussion, one of the Business Administrator positions was eliminated in FY15. A request to add a Business Analyst position was discussed last summer regardless of this change, and is now combined with the change resulting in a position downgrade. This change serves to help provide funding for the next item, which was deemed a higher priority. A temporary (one -year) Operations Specialist has been added to the FY 15 budget, described to assist the entire organization (including Schools and RMLD). Next year we will re- evaluate the best path forward. Changes in technology have changed nearly every Town job, and made training obsolete faster. While the Town hardware environment is outstanding, integrating the various software systems has been more challenging than the software sales force would have had us believe. The recent introduction of mobile devices (tablets, smartphones) for Town employees out in the field has added a level of complexity. User training has lagged, serving to underutilize these powerful tools and systems. We would like to hire another Technician to allow more user training, but that was not able to be funded next year. In the next month or so, we will unveil a tool to the general public that will allow service requests to be easily placed, using mobile technology (such as smartphones). These requests and our response time will be able to be seen and tracked online by everyone — for example, there may be one or two potholes to fill after this difficult winter. A resident will be able to send in a photo of a pothole fill request, and we will know the location from the phone's GPS. As this technology rolls out to the public, so too does the training and technology help needed for the staff. A request to hire a Help desk for this function — as is done in many communities that offer this service — was not affordable in FY 15, but will be re- evaluated next year. Our Human Resources Administrator is retiring at the end of FY 15, and we know it will be very challenging to replace her ability to serve the Town, School and Light departments, and cover a wide variety of areas. This may turn into a very high priority, possibly even for November 2014 Town Meeting, but is unknown at this time. Community Services $49,225 Community Health Administrator $11,082 additional Elder/Human Services hours $ 5,000 additional staff OT for projects *0.5 FTE social worker (make the position added full time) A Community Health Administrator position would best fulfill one of the Town Manager's FY15 Goals from the Board of Selectmen for FYI 5, which is listed below: 17. Focus Public Health, School, Substance Abuse, and other resources on a Healthy Community model with an initial focus on obesity prevention. Find ways to encourage walking, cycling, and other activities. These efforts may involve many departments, with efforts led by the Health Division. Promote healthy eating. Include reminders of area Farmers Markets in addition to Reading. Work with food establishments on menu options that are healthy. For now, we attempt to take best practices from our shared staff with Melrose and Wakefield. For example, a subtle change to broadening the use of the Health Revolving Fund seeks to have a significant impact in this area. This change would allow, for instance, a reduced cost bicycle helmet distribution program for residents, as is very successful in Melrose. As was discussed with FINCOM, the Town has seen a steady increase in outreach efforts needed to many portions of the community. Factors include the demographics of an aging population, the recent economic dislocation that continues to affect many individual residents, and increases in both mental health and substance abuse issues. Increased hours for some part-time elder/human services staff as well as hiring a full -time Social worker (in addition to the current Case worker) would be ideal, but we decided to fund only a new part-time position in FY 15. We will monitor community needs and respond as best we are able in future budgets. Finance $4,000 additional staff OT for projects The re- organized Finance department is evaluating their staffing needs, and for now the situation is fine. The Board of Selectmen has discussed a possible change towards monthly billing for the Enterprise Funds - this would not be possible without the addition of clerical help, however. Next year, we will implement the new Water and Sewer rates three months later, effective for the December 2014 billing. Hopefully this will reduce the high volume of customer service needed when summer water usage was combined with new rates in the past. Last fall the Board of Selectmen renewed for one year the agreement to share the Appraiser position with Wakefield. Pending state legislation caused a simple renewal rather than a longer term formal arrangement — things are working out very well. This new model requires more outsourcing of work, especially in revaluation years. Public Safety — Police * 1.0 to 3.0 FTE police officers * 1.0 FTE substance abuse prevention Proactive staffing changes and a November 2013 change to senior staffing (previously planned for a few years) has left the department in excellent shape. Additional staff would always be helpful. Prosecutions of certain alleged crimes continue to become more complex and demand more Police officer time away from the community. The RCASA substance abuse prevention effort works closely with the Schools. An additional School Resource Officer shared by the middle schools would be desirable as issues previously seen in High School are appearing earlier. Public Safety — Dispatch $77,587 for 2.0 FTE additional dispatchers for overnight shift Funding for two additional staff in Dispatch would be ideal, and leave the coverage for all shifts at the two - person level. As medical technology evolves, and additional legal procedural steps are imposed, the job is difficult to accomplish with one staff member. Police officers in the building assist as they are needed, but this solution is not ideal as demands on their time could also occur during an emergency situation. Once the regional solution to dispatch is decided, this issue will re- appear in a future budget request. Public Safety— Fire/EMS $78,143 Training Officer $78,143 EMS Officer *3.0 FTE additional firefighters to reduce OT (may overlap with two unfunded positions requested above) Fire OT is very difficult to predict or to manage, because of minimum manning requirements. Hiring three additional firefighters would clearly reduce department OT, though not enough to pay the cost of those hires. Formal budget requests for a full time Training Officer and an EMS Officer may help solve this issue, depending if the positions are allowed to count against required manning levels. The Executive Officer position was unfunded until the Board of Selectmen voted in February 2014 to increase ambulance fees to cover this cost. Any further discussion of these issues is deferred as they are subject to collective bargaining negotiations, which are ongoing. Public Works $16,000 a second new Engineering Co -op student $38,782 additional Mechanic *2.0 FTE seasonal workers as needed The Engineering function is staffed at high levels in Reading compared to other communities, and we use less outsourced work as a result. In the past, co- operative education students from area colleges have helped bolster internal staffing levels to avoid outsourcing, and only one of two requested was restored in this budget. The Public Works department is currently evaluating their space needs. Options under consideration include relocating several functions within the existing DPW yard, including Cemetery staff and equipment. In the past when equipment capital funding was not sufficient, the vehicle maintenance effort needed was significant, and annual budget overruns of over $100,000 annually were common. Consideration was given to adding additional work shifts in order to prevent outsourcing the work needed, given limited facility space at the yard. Until this space solution is known, no changes in staffing levels are anticipated. Additional part-time seasonal help for the department is always needed. Over the past many years, this department has seen a reduction in staff from over 100 to approximately 40 employees. Changes in equipment have allowed and encouraged improvements in productivity, but certain annual tasks require manual labor. Public Library $56,000 Digital Services Librarian $ 3,685 staff OT As described previously to FINCOM, the Library is also changing significantly in their use of technology. Hard copy material continues to decline as a percentage of total materials, and this trend in unlikely to reverse for the foreseeable future. Significant staff training is needed and available to adapt to this new environment. A Digital Services Librarian would assist in this transition process for both staff and the public. We expect the work of the Administrative Services Operations Specialist to serve as a path forward towards using the technology of the Town, though admittedly this work will leave out a portion of the Library - specific technology, such as the NOBLE network. Conclusion The Town and Schools have, since the passage of Proposition 2- 1/2, been asked to do more with less. In the private sector, this mission is a daily one of survival in the face of competitive pressures from the marketplace, so it is hardly something new. However, unlike the private sector the Town cannot invent new streams of revenue, or increase existing streams through clever design or marketing efforts. Nor can it discontinue less profitable divisions, as the main mission is one of service to the community. Further, examined through a corporate lens, most of our organization is a `loss leader' by design. By reputation, Reading delivers both a high quality and volume of services given the funding that is available. We understand the daily challenge of improving, and if that was not ingrained upon the passage of Prop 2 -1/2, it sure is now. We use an extensive planning process for both the Town and the Schools that looks ahead several years. We adapt to the rapidly changing present carefully and thoughtfully. The planning process combined with prudent reactions allows us to deliver good value for those revenue streams available. Everyone involved — elected and appointed officials, employees and volunteers- would like to do better, and do more for the community. While improvements at the margin are always possible, we are at the point where increased services have become extremely challenging to provide, without sacrificing the quality or amount of existing services. We appreciate the role of the FINCOM to advise us all when they see better ways to accomplish our service mission.