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HomeMy WebLinkAbout2014-07-30 Finance Committee PacketrR O� r Town of Reading a e Meeting Posting with Agenda orsd.9,Ncollkk Board - Committee - Commission - Council: Finance Committee Date: 2014 -07 -30 Time: 7:30 PM Building: Pleasant Street Senior Center Location: Great Room Address: 49 Pleasant Street Purpose: Financial Forum Meeting Called By: Caitlin Saunders on behalf of Chairman Mark Dockser 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 Topics of Discussion: A) Financial Forum Overview (Mark Dockser) July 30`h September 10`h October 29`h January 28`h (if needed) format; handwritten notices will not be accepted. B) Introductions (Boards, Committees, Commissions, staff & public) C) Review 2010 Financial Forum Brainstorming Sessions (Bob LeLacheur) Cost Cutting Efforts Revenue Ideas D) 2014 Brainstorming Session (FINCOM) Identify and list all ideas Vote on relative importance of each idea 1. community needs and service that you (participants) think are required and are currently being met sufficiently 2. community needs and services that you think are required but are not being met (not at all or not enough) 3. services that are currently being provided but they are nice to have rather than must have 4. services that you think are important but are getting more funding than they should be 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 ' eq O'tt r Town of Reading b Meeting Posting with Agenda E) Gathering Community Input (FINCOM) F) Homework for September 1011h Financial Forum & Closing Remarks (Mark Dockser) 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 2 'L Financial Forum Financial Planning for FY2016 and beyond 0 Financial Forum July 30, 2014 Agenda Financial Forum Overview (Mark Dockser) July 30th September 10th October 29th January 28th (if needed) Introductions (Boards, Committees, Commissions, staff & public) Review 2010 Financial Forum Brainstorming Sessions (Bob Lelacheur) Cost Cutting Efforts Revenue Ideas 2014 Brainstorming Session (FINCOM) Identify and list all ideas Vote on relative importance of each idea 1. community needs and service that you (participants) think are required and are currently being met sufficiently 2. community needs and services that you think are required but are not being met (not at all or not enough) 3. services that are currently being provided but they are nice to have rather than must have 4. services that you think are important but are getting more funding than they should be Gathering Community Input (FINCOM) Homework for September 10th Financial Forum & Closing Remarks (Mark Dockser) IN DRAFT FINCOM FY15 Schedule (All meetings are Wednesday at 7:30pm in Town Hall, unless noted) 2014 regular- fneeting ul 30 Financial Forum I (Pleasant St. Center) August 19 BOS close Warrant for September Special Town Meeting August 20 regular meeting (September TM Warrant Articles) �September 10 Financial Forum II (Pleasant St. Center) V September 16 BOS close Warrant for November Subsequent Town Meeting September 29(M) Special Town Meeting (at RAIHS) October 8 regular meeting (November TM Warrant Articles) ctober 29 Financial Forum III: FY16 budget (Pleasant St. Center) ovember 10(M)- 13(Th)- 17(M)- 20(Th) Subsequent Town Meeting (at RMKS) December 10 regular meeting 2015 January Selectmen Town budget (Tuesday 13`h & 20`h) January School Committee budget (Th 8` ; M 12`h; Th 15'h; Th 22nd; M 26`h) January Possible Special Town Meeting (TBA) -Aanuary 28 Financial Forum IV: FY16 budget (at the Pleasant St. Center if needed) ebruary 24 BOS close Warrant for April Town Meeting March 4 FY16 Budget Meetings (Town) March 11 FY16 Budget Meetings (Town) March 18 FY16 Budget Meetings (Schools) March 25 Vote FY16 Budget & Town Meeting Articles April 7 Local elections April 27(M)- 30(Th) -May 4(M) -7(Th) Annual Town Meeting (at R:VHS) June 24 Year -end meeting E • Community • Why we all volunteer our time • Set Priorities • How to make the Priorities happen.... navigating the best course • Great tradition ..... to continue M We must, indeed, all hang together or, most assuredly, we shall all hang separately. Benjamin Franklin N Fiscal Thinking Reading Home Prices & Values $499,500 12.7% 4.5% ea:hn anatu .vm�e The median home value in Reading is $499,500 Reading home values have gone up 12.7% over the past year and Now predicts they will nse 4 5% within the next year The median list price per square foot in Reading is $271, which is higher than the Boston hletro average of 5230. The median price of homes currently listed in Reading is $499,000 while the median price of homes that sold is $399,375 The median rent price in Reading is $2 047, which is lower than the Boston kietro median of $27300 i QPopulation in 2010. 24,747. Population change since 2000. +4.4% Males 11,722 (47.4 %) Females 13,025 � (52 6 %) Median resident age 41.6 years Massachusetts median age 39.2 years Zip codes: 01867. Estimated median household income in 2012 $103,630 (0 was $77,059 in 2000) Reading $103,630 MA , $65,339 Estimated per capita Income In 2012 $46,347 Reading CDP income, earnings, and wages data wf O *on 1 Estimated median house or condo value in 2012. $436,513 (it was $268,000 in 2000) Reading $436,513 MA $323,800 The hottest housing markets in Massachusetts, Q2 2014 Click on each record's 'Details' link for a full market profile. -!. Search Again Town Per capita Median Median Population Numberof income HH income familyincome households Lexington $67,584 $136,610 $158,888 31,129 11,411 Concord $67,374 $127,951 $156,352 17,523 6,197 Winchester $65,172 $127,665 $160,706 21,205 7,611 Belmont $54,361 $99,529 $121,250 24,548 9,465 Acton $49,603 $109,491 $135,000 21,656 7,924 Natick $49,012 $90,046 $117,259 32,729 13,440 Bedford $48,899 $101,886 $128,448 13,192 4,951 Arlington $47,571 $85,059 $107,862 42,570 19,007 $46,242 $69,017 $94,536 104,322 45,386 ,```Cambridge Q&eading $44,949 $99,131 $117,477 24,504 9, V Chelmsford $42,535 $90,895 $110,967 33,610 13, North Reading $42,256 $104,069 $116,729 14,703 5,077 Middlesex County $41,453 $79,691 $100,267 1,491,762 577,349 Watertown $41,090 $76,718 $90,521 31,792 14,042 Wakefield $40,227 $85,379 $112,293 24,794 10,058 Burlington $40,083 $92,236 $107,339 24,207 9,177 Melrose $39,873 $84,599 $105,893 26,864 10,963 Stoneham $37,573 $77,476 $95,490 21,413 8,909 Marlborough $37,314 $72,853 $94,770 38,087 15,856 Wilmington $37,084 $100,861 $107,436 22,116 7,200 Tewksbury $36,509 $86,378 $103,008 28,778 10,670 -� Massachusetts $35,051 $65,981 $83,371 6,512,227 2,522,409- - Medford $34,615 $72,033 $83,078 55,843 22,461 Hudson $33,734 $68,812 $86,216 14,797 6,129 Woburn $33,725 $72,540 $87,924 37,831 15,357 Waltham $33,717 $68,326 $82,233 60,209 23,520 Framingham $33,665 $66,047 $86,977 67,844 26,167 Somerville $32,785 $64,480 $71,518 75,566 31,476 Ashby $32,434 $82,614 $84,655 3,030 1,060 - United States $27,915 $52,762 $64,293 306,603,772 114,761,359" - Malden $26,893 $52,842 $65,763 58,821 23,422 Everett $24,575 $48,319 $58,045 41,079 15,681 Lowell $23,600 $51,471 $57,934 105,860 39,399 Source: 2010 Census Data; American Community Survey 2007 -2010 Year Average House Price Average Family Income Average Salary (Town and School Dept combined) 2010 $432.939 $99,006 $41.964 2000 $248,714 $77,059 $29,280 1990 $197,963 $52,783 $26,821 Average House Price: Average Family Income Average Salary: From Assessor's data From Census data Total wages divided by total number of Town + school employees Year Average House Price Average Family Income Average Salary (Town and School Dept combined) 2010 2.19 1.88 1.56 2000 1.26 1.46 1.09 1990 1.00 1.00 1.00 L 1�71 For some questions, the red and green color assignments serve to highlight the response for further consideration within the context of your jurisdiction's objectives and circumstances. Several questions have no comparison at all. They tend to be lists of potential incentives, resources, or regulations associated with the municipality and will be discussed in corresponding sections of the report. This section highlights Reading's primary strengths and weaknesses in the realm of economic development. EDSAT does not provide an overall grade for a jurisdiction, but rather assesses a jurisdiction's unique set of strengths, weaknesses, and economic development objectives. The Dukakis Center staff creates a list of significant or notable responses for each of the Very Important, Important, and Less Important location factors, emphasizing strengths and "deal- makers," which are not organized in any particular order of importance. Dukakis Center staff suggests that your municipality review these lists and use them to highlight, enhance, and market your city or town's strengths. Tasks on the weakness and "deal- breaker" lists, however, are prioritized to emphasize the importance of their mitigation. The Dukakis Center staff arranges the tasks according to feasibility, with consideration of the latitude and abilities of local, county, or regional levels of government. For example, in a jurisdiction with limited highway access, building a new highway interchange or connector would likely be cost- prohibitive, time - consuming, and an inefficient use of local resources. However, other tasks are more feasible with modest investments in time and resources. For example, streamlining the permitting process and making related development information readily accessible to both location experts and businesses can be accomplished without significant capital investments. Although location experts rank both highway access and the timeliness of permitting as Very Important location factors, in the prioritized list of potential "deal- breakers," the permitting process is given a higher priority due to its feasibility in implementation. Reading's Strengths or Potential "Deal- Makers" The following lists of Reading's strengths are its powerful economic development assets. The town should build upon these assets and promote them to prospective businesses and developers. Reading should first consider those in the Very Important group, then the Important, and finally the Less Important group. Please note that strengths are not listed in any particular order within the three lists. Strengths among Very Important Location Factors • Highway Access: Reading has excellent highway access with 75 percent or more of all available sites within two miles of a limited access major highway. • Traffic: Traffic in Reading is comparable to the Comparison Group Municipalities (CGM), but unlike the CGM, the town has regular access to a traffic engineer or transportation planner. • Infrastructure: Not only does Reading have sufficient capacity for growth and reliable service for all of its utilities, but the cost for electricity is roughly half the cost of CGM respondents. • Rents: Reading's mix of office space includes more Class A and Class B space than the CGM, indicating better overall quality office space. • Workforce Composition: Reading has a much higher percentage of managerial and professional workers than the CGM. • Labor (available): More than half of Reading's available labor has earned at least a bachelor's degree. \1 Strengths among Important Location Factors • Public Transit: Reading has a transit- oriented development strategy to attract new firms within a quarter mile of public bus or rail rapid transit. • Physical Attractiveness: Reading takes more vigorous measures to maintain the physical attractiveness than the CGM, has a higher percentage of parks, and involves the arts community in the design of open space. • Quality of Office Space: Reading has a lower percentage of contaminated/brownfreld sites than the CGM and more experience with redevelopment of such sites. • Sites Available: Reading has a readily - accessible, up -to -date list of sites that am available for development. • Predictable Permits: Reading provides a development handbook to prospective developers. • Citizen Participation in the Review Process: In Reading, organized neighborhood groups slow the permitting process less than CGMs. In addition, elected officials expedite development by facilitating community group dialogues and have stepped in to rescue development proposals that were endangered by community opposition in the past 5 years. • Cultural and Recreational Amenities: Unlike the CGM, Reading features a professional repertory theater company and a symphony orchestra. • Crime: Crime is lower for all categories in Reading than the CGM. • Housing: The home ownership rate in Reading is higher than the CGM. • Local Schools: Students in Reading have a higher percentage of English and Mathematics proficiency and a higher percentage of high school graduates go on to attend a four -year college. The town also uses assessment/proficiency tests as a measure of performance for teacher assessments and evaluation. • Local Tax Rates. Reading uses a local meals tax to pay for local services and has a flat tax rate that is four percent lower than the CGM for commercial and industrial property. Strengths among Less Important Location Factors • Airport: Reading features a local airport and is closer to its nearest regional and international airports than the CGM. • Rail: Reading has a commuter rail stop within its jurisdiction. • Proximity to Universities and Research: Four major four -year institutions of higher education are located within 10 miles of Reading. • Permitting Ombudsman: Reading's town manager plays a significant role in facilitating the permitting process, and the town features local licenses for specific businesses. • Website: Reading's website includes more information related to economic development and municipal process than the CGM. Reading's Weaknesses or Potential "Deal- Breakers" Despite sizable advantages, Reading has a number of apparent weaknesses which can pose a challenge to successful development. The factors in the Very Important group are the ones that the town should consider addressing first because they are the most critical potential "deal-breakers." Again, the town should next consider those in the Important group, and finally the Less Important group. Unlike the strengths or deal - makers, the list of weaknesses is arranged in order of priority. It is suggested that Reading review the prioritized lists and the detailed narrative about all location factors, while keeping in mind its 021 economic development objectives and the resources available for addressing "deal - breakers" and other weaknesses. This report is an opportunity for an informed dialogue among colleagues and for establishing a roadmap to turn "deal- breakers" into "deal- makers." Weaknesses among Very Important Location Factors ���• Timeliness of Approvals: Site plan reviews, zoning variances, and the appeals process take an average of VA four weeks longer in Reading than in the CGM. • Rents: Rents in Reading for all asset types and classes other than the cost for Class A office space is higher than the CGM. • Parking: A smaller proportion of Reading's available sites for retail and office sites have long -term on -site parking than do sites in the CGM. Weaknesses among Important Location Factors • Critical Mass Firms: Reading lacks an up -to -date economic development plan or strategy, has targeted no specific industry sectors, and does not have an industrial attraction policy. Cross Marketing: Reading does not have a cross - market strategy and, unlike the CGM, does not at present engage regional planning and development organizations to participate in marketing the town. • Quality of Available Space: Reading has a much smaller percentage of vacant/underutilized shopping centers and open land (greenfield) sites than the CGM, which limits opportunities for large developments. Land (space): Reading has very little land available for development, including a much lower percentage of parcels over 5 acres than can be industrial or commercial development. • Sites Available: The town of Reading does not own sites that it markets for development. L • Predictable Permits: Reading does not have a checklist of permitting requirements for prospective r� developers. • State Business Incentives. Though the state of Massachusetts offers a variety of special tax incentives, the town of Reading does little to help firms take advantage of them. O • Local Business Incentives: Reading does not use Tax Increment Financing or other tax breaks. It does not tic participate in or offer a brownfield revolving loan fund. • Housing: Reading's high cost of housing and low vacancy rates indicate housing challenges for the workers of prospective firms. • Amenities. Reading has a lower proportion of fast food restaurants, fine dining, day care facilities, and retail shops than the CGM. Weaknesses among Less Important Location Factors • Workforce Training: Reading does not support public - private partnerships or adult education programs to provide workforce training. tJrAoc • Website: Reading does not have a designated webmaster or staff person for maintaining its website. • Prozimities to Universities and Research: The town does not have a vocational/technical school within its jurisdiction like the CGM. • Rail: Reading does not have freight rail service available whereas most of the CGM does. The weaknesses that surfaced in the EDSAT analysis provide guidelines to where Reading could exert more effort to improve its ability to attract business and build its tax base. Suggested Planning Process • Community needs to set priorities on services and decide which it will afford and how it will fund them • Accommodated costs including health care rising at a rate much faster than Prop 2 1/2 allows, pressuring operating budget • Even if we want to simply maintain services, we will need new sources of revenue • Reserve position today is above FinComm recommended minimum of 5% (closer to 7 -8% today ?) .... but maintaining services cutting into this each year • Capital Projects remain an active part of Reading as well.... • Library • Infrastructure improvements • School Facilities • Others.... C-2), Reviewing Plans and Policies • FinComm • Reserves (total) • Capital spending • OPEB • Budget planning cycle— 2 years? • Reading 2020 • Early Childhood Center Group • Permanent Building Committee • Economic Development • Space Utilization Planning • Many more.... 0 p �9.,YC0R�R Reserve Status June 20'14 FREE CASH July 1, 2013 $7,584,868 • November TM +$ 75,000 • February TM -$ 400,000 • April TM - $2,254,800 — Article 5 $4,000 — Article 6 $250,800 — Article 7 $300,000 — Article 14 (FY15 budget) $1,700,000 $ 5,005,068 GENERAL STABILIZATION FUND $ 1,549,505 ** FINCOM Reserves $ 93,000 * *total excludes funds designated for specific purpose TOTAL $ 6,647,573 Free cash when combined with other reserves represe 8.2 °lo estimated $80.6 million FYI net available revenue �" t Ir Board of Selectmen & Department Heads "Reading 2020" In 2006 the Town Department Heads held an off -site Retreat to plan for the future, and three significant areas were identified as needing attention. First, the town's technology systems were older than most dump trucks owned, and Town Meeting readily agreed to a funding request — Reading is now on or near the cutting edge in use of public sector technology. Second, the buildings needed some improvement, and a strong capital planning process by the School and Facilities department led to outstanding building results. Now, preventative maintenance and proactive thinking have replaced reacting to emergencies - most of the Town and School buildings are now the envy of many communities. Finally, communication was also identified as needing improvements, and while the Town has had much success in this area, the underlying technology changed more quickly and became more affordable than anyone imagined, so more work is still needed. The Board of Selectmen joined the Town Department Heads recently and held a Saturday Retreat to discuss the future of Reading and to develop an action plan. Town government is a Services organization — which is quite different than a business. Looked at through a corporate lens, most Town departments could be said to be `loss leaders' based strictly on their relative revenues and costs. Compared to many other communities, Reading offers more services (and a high level of quality) than most do. Yet doing a `better job' than these other communities consumes revenues rather than produce more. In terms of how `outsiders' see the community, Standard and Poor's global bond rating organization recently rewarded Reading with the AAA rating — their highest one available — as a result of the Town's disciplined financial practices of spending money carefully. Coupled with the belief that Reading provides more and high quality services, it is clear that Town government and the School department, along with their various Boards and Committees, have done an admirable job producing superior services within these revenue constraints. All present at the Retreat agreed that the approximate +3% annual revenue growth compared to the expectation of the community to provide many services at a high level of quality was the most significant issue to be tackled. The key question for the community will soon be "What services should be cut, and if you can't cut them, would you be willing to pay more ?" The Retreat formally created four working groups, composed of members of the Board of Selectmen (BOS) as well as the Town Department Heads. Together these groups might be said to be using perfect hindsight to look ahead five or so years, an effort we call "Reading 2020 ". The four groups are as follows: 1. Community Partners: Kevin Sexton (BOS), Dan Ensminger (BOS) and Bob LeLacheur (Town Manager). Town government is one of many organizations that serve the Reading residents and businesses. We regularly work with many other organizations — non- profits, volunteer groups, and the private sector. This working group for the first time will compile a comprehensive inventory of all such relationships, and where services overlap we will have discussions as to ways to streamline our mutual efforts and share resources. 2. Services & Performance Measurement: Marsie West (BOS) and Jean Delios (Assistant Town Manager Community Services). This working group will create an inventory of all of the services that are provided by Town government, and create ways to measure the results and the quality of the service delivery. This measurement will include significant input from the community. A few years ago the Finance Committee led a series of Financial Forums, and one session was aimed at a study of services. Community members were asked to list a service that they currently use that they would be willing to give up — and not a single anonymous response was received. A few years later, we want to ensure that the services the Town provides are all important ones, and to identify gaps where services may need to be added or modified. 3. Communication: Sharon Angstrom (Town Accountant) and Jeff Zager (Public Works Director). The field of communication will always evolve, and in recent years the Town has built significant technology infrastructure, with `future flexibility' being the most important design consideration. What are the best ways to communicate with the Community and seek their opinions? The World Cafe was very successful and drew a large number of residents several years ago. Many Volunteer Boards hold public meetings, but usually attendance is sparse unless the issue directly impacts a homeowner. Every year the Finance Committee meets three or four times in joint session with the School Committee, Library Trustees and Board of Selectmen to discuss financial planning, and community involvement in these meetings is usually light. Perhaps there are better ways to conduct community meetings? 4. Strategic Planning: John Arena (BOS), John Halsey (BOS), Jim Cormier (Police Chief), Greg Bums (Fire Chief) and Ruth Urell (Library Director). There are many short - and long -term specific issues that the Town is currently facing that need attention. For example, efforts are underway for an overhaul of the Zoning Bylaw, and revisions to the Town Charter. Town and School space needs have been identified, but resources and locations are not readily apparent. The downtown Post Office is for sale, and is in a vital location as a link between Main Street and lower Haven Street, both areas of significant economic development in recent years. The town has a deficit in recreational space needed. The list goes on ... Reading is a community that has always had significant volunteer interest, and as a result is very open to ideas and suggestions that come from the public. Your Town government as a service organization is here for you. We can help provide insight and guidance, but we alone do not seek to decide community values. The next Reading 2020 planning session will be towards the end of October. If you would like to follow any or all of these working groups and have any opinions to offer or questions to ask, please send an email to townmanager2ci.reading.ma us. _ 2014 Special Town Monday Septe er 29, 2014 WARRANT OUTLIN VISED 071 14 Art. Mover/ Moderator # Article Description Sponsor Comment Notes 1 Reports Board of Selectmen ♦ Permanent Building Committee — Stephen Crook, Bylaw Committee Chair ♦ Motion to Table — John Arena 2 Instructions Board of Selectmen ♦ Motion to Table — 3 Amend the Capital Board of Selectmen ♦ Motion — Improvement Program FY ♦ Presentation —Bob LeLacheur 2015 - FY 2024 ♦ FINCOM report - 4 Dispose of Surplus Tangible Board of Selectmen ♦ Motion — Properties ♦ Presentation — Bob LeLacheur 1998 Leebov Pavement ♦ FINCOM report — Spreader — estimated value $10.000 will flow to Free Cash when sold 5 Rescind Debt Authorization Board of Selectmen ♦ Motion — Amounts not issued & not ♦ Presentation — Bob LeLacheur needed: ♦ FINCOM report — 2010 STM Article 9 $326,772 Green School Repairs 2011 ATM Article 16 $110,607 Green School Repairs 7/30/2014 7/30/2014 30 2014 Special Town Meeting Monday September 29, 2014 WARRANT OUTLINE REVISED 07/30/2014 6 Debt authorization Board of Selectmen • if needed Vest Street ppraisals and easements 203,800 Engineerinq -,93 300 construction 694,934 pub *_otal 1,092,0?4 Cont 4 ngency 115?1 i l 63, ?0,- Tota]. ti?TlC'unt 1, _55,'834 ($1.3 million authorized plus Article 7 surplus of <$100k will be sufficient) Water main work: Details are a work in progress — unlikely to need more authorization until April 2015. 7 Transferring Debt Board of Selectmen • Motion — Authorization in the amount • Presentation —Bob LeLacheur of $94,685 • FINCOM report — Barrows $65.71 -Green Repairs $47,193.63 - Downtown Improvements $7,728.07 - TechnoI S069 59 7/30/2014 30 2014 Special Town Meeting Monday September 29, 2014 WARRANT OUTLINE REVISED 07/30/2014 8 Amend the FY 2015 Budget FfNCOM ♦ Motion — Mark Dockser C99 Capital $23,000 *Presentation — Bob LeLacheur 550,040 Town Hall generator ♦ FfNCOM report — Mark (estimate); Dockser C99 Elder/flurrian Services Van ($27,000) — grant funded $46,495 (80%) — keep Town share $12.000 of 539.000 funded, E99 Vocational Schools: $75,000 Essex North Shore Agricultural-, F99 FINCOM Reserves: $10,000 (DPW trade-in)-, G92 Administrative Svcs expenses: 5100,000 Legal expenses --'lT,'l'RMFlS, K92 Public Works expenses: $18,000 Eng. Traffic Controls due to lightning strike, From Free Cash (or other sources if not yet certified) 5216,000 9 Z oning B y l aw Changes CPDC ♦ Motion - Medical Marijuana ♦ Presentation — ♦ Bylaw Committee report - 10 Summer Avenue TBA ♦ Motion - ♦ Presentation — ♦ Bylaw Committee report - 7/30/2014 Goals for tonight • Start/continue the brainstorming process and get the word out • 1st Creative Brainstorming ... service priorities • No judgments... goal is to generate list, not debate merits M Categories 1. Service provided today, needs being met 2. Services provided today, needs not being met 3. Services not provided today but should be 4. Services provided today but getting more funding than they should 5. Services provided today that should not be funded at all Plan: Brainstorm List Vote— Top 3 per category E Town of Reading Meeting Minutes Board - Committee - Commission - Council: Finance Committee Date: 2014 -07 -16 Building: Reading Town Hall Address: 16 Lowell Street Purpose: General Business Attendees: Members - Present: Time: 7:30 PM Location: Conference Room Chairman Mark Dockser, Vice Chair Paula Perry, FINCOM members Marc Moll, Peter Lydecker, Anne Landry, and Craig Merry. Members - Not Present: FINCOM members Karren Herrick and Paul McNeice. Others Present: Town Manager Bob LeLacheur and Administrative Secretary Caitlin Saunders Minutes Respectfully Submitted By: Topics of Discussion: Mr. Dockser called the meeting to order at 7:30 pm. Mr. LeLacheur stated the Massachusetts General Law changed from $5,000 to $10,000 when disposing of a tangible supply. However, the Towns bylaw takes precedence to the States so Mr. LeLacheur is asking the Bylaw Committee to change the Town to $10,000 as well. Mr. LeLacheur asked FINCOM to declare a list of about 10 items as surplus. He stated most items get traded in for newer ones but they cannot be traded in until they are declared surplus. Ms. Perry made a motion to declare the named items as surplus effective July 16th, 2014, second by Mr. Merry, and approved with a 6 -0 -0 vote. FINCOM then took a look at the Warrant outline for the September Special Town Meeting. Article 7 is Transferring debt authorization. The town has about $94,000 that was not used for projects that are done and that can be transferred to other projects that meet the requirements of the debt. Articles 8, 9, and 10 are the major reasons for having the September meeting. Article 8 is a school issue that does not have a lot of information to be shared at the moment. Article 9 is the Zoning Bylaw changes for the medical marijuana. The town needs to make a plan and submit it to the state to be approved first. Article 10 is also a Zoning Bylaw change for Accessory Apartments. This is on the list because it has received a lot of public attention. Mr. LeLacheur stated he hopes to amend both zoning issues in September and also made note that the medical marijuana is not optional and must be done at some point. FINCOM then took a look at the Warrant outline for the November Subsequent Town Meeting. Mr. LeLacheur said he would first like to fill FINCOM in on what has been going on with RMLD. He stated RMLD is under investigation by the Town Accountant for breaking Page 1 1 0 Finance Committee Minutes - July 16, 2014 - page 2 procurement laws. He noted 3 trucks estimated at a value of $30,000 - $60,000 were sold to an employee for a total of $350. Mr. LeLacheur said RMLD has a history of doing this because they have a policy that allows it however, the policy is not legal and they will be changing it. He noted he got wind of this thru an anonymous letter and after the Town Accountant found legitimation in the letter she started her investigation. They went public with this information on Tuesday, July 15th to the Board of Selectmen. Mr. LeLacheur felt FINCOM needed to know in case they need to step in. Mr. LeLacheur provided an updated list of Revenue Enhancement ideas. With that list he explained ' EDSAT'. EDSAT stands for Economic Development Self Assessment Tool and it rates how the community does on various things compared to about 100 other communities around us. We were below average when it came to working with businesses communicating and marketing. We also should have a full time web master whose sole priority is the website. We ranked high in house and rent prices. We have very low commercial rates and slightly high residential rates, but our electric rates are low as well. Mr. Dockser asked the group what they would like to accomplish at the July 30th Financial Forum. Mr. LeLacheur stated it is too early and we won't have any estimates by then. He said the best thing to probably do, would be to assume the pattern of the past couple years. He said we will probably have estimates for the September forum however we won't have anything on the budgets until the October meeting. Mr. Dockser said the July meeting is a good time to set the tone /overview for the rest of the Financial Forums and to work on getting all the boards to work together to help each other. He also stated this first forum would be a good time to figure out how to set /assess the priorities of the town. Mr. Dockser said we should also ask the boards what their most important things to accomplish in their budget are. Mr. LeLacheur informed the group that our Legislative will be attending the September forum. Mr. Dockser said the September forum will be more of a working session while the October forum will be dealing with the budgets. Ms. Perry said she would like to look at a multi -year budget and thinks that will help people understand the financial road we are on. The committee was brainstorming ideas to better communicate with the community and thought it would be a good idea to use email to try and reach the public about meetings they can attend and other financial news. Mr. Dockser wanted the committee to come up with some ways they could help the Library Building Committee. The group asked if they could get regular updates on the project. Mr. LeLacheur said that will be possible but the financials are still hard to look at right now until the bids come back. FINCOM said they will try and brainstorm ways to raise money if needed besides asking the town for more. Ms. Perry made a motion to accept the minutes from June 25th as written, second by Mr. Merry, and approved with a 6 -0 -0 vote. Mr. Lydecker made a motion to accept the executive session minutes from June 25th as written, second by Mr. Dockser, the votes were as followed: Mr. Merry - Yes Mr. Lydecker - Yes Mr. Moll - Yes Ms. Landry - Yes Ms. Perry - Yes Mr. Dockser- Yes Page 1 2 L; \ Finance Committee Minutes - July 16, 2014 -page 3 The Motion carried with a 6 -0 -0 vote. Ms. Perry made a motion to adjourn the meeting at 9pm, second by Mr. Lydecker, the motion carried with a 6 -0 -0 vote. Respectfully submitted, Secretary Page 1 3 6