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Home My WebLink About2014-10-29 Finance Committee Packetrq J x k Town of Reading Meeting Posting with Agenda 's3'PrrrcoR *' TOWN C L E R K Board - Committee - Commission - Council: tiDING, MASS. Finance Committee 2014 OCT 21 A % Date: 2014 -10 -29 Time: 7:30 PM Building: Pleasant Street Senior Center Location: Great Room Address: 49 Pleasant Street Purpose: General Business Meeting Called By: Paula Schena 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 typed format; handwritten notices will not be accepted. Topics of Discussion: 1) Discussion /Action Items a. Review of FYI Revenues and Expenses b. Update for FYI Revenues and Free Cash C. Projected FY16 — 17 Revenues d. Projected FY16 — 17 Accommodated Costs e. Use of Free Cash in FY16 — 17 Budgets f. FY16 —17 Operating Budget Guidance 2) Approval of Minutes a. October 9, 2014 b. October 9, 2014 Subcommittee minutes 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 fl �A a Q� �� >P � '&) coS operatinq budgets =_> 3.60% 3.75% 3.50% /2.50% 12.0001y/ 1.00 %jvs Oct9 2014 Town of Reading One Yr Recent Changes Current One Yr Changes Projected One Yr Changes Projected One Yr Changes Projected One Yr Changes Projected One Yr Changes Budget Summary 10128114 6:13 PM FY - 2013 FY - 201 FY-20114 FY-2014 FY15 FY - 201 FY16 FY - 201 FY17 FY - 201 FY18 65,391,342 FY - 201 3.2% Revenues 54,479,102 3.4% 55,774,186 2.4% 58,337,728 4.6% 61,442,085 5.3% 63,385,841 3.2% Total Property Taxes Total Other Local Revenue 5,380,000 -0.4% 5,652,474 5.1% 6,072,516 7.4% 6,187,500 1.9% 6,315,000 2.1% 6,442,500 2.0% Total lntergov'tRevenues 12,955,108 -0.1% 13,096,149 1.1% 13,282,318 1A% 13,614,376 2.5% 13,954,735 2.5% 14,303,604 2.5% Total Transfers & Available 4,406,704 7.3% 4,835,042 9.7% 3,709,066 - 23.3% 3,677,003 -0.9% 3,692,043 0.4% 3,699,485 0.2% Revs before Free Cash $ 77,220,914 2.8% $ 79,357,851 2.8% $ 81,401,628 2.6% $ 84,W%964 4.31/6 $ 87, 2.9% $ 89,836,931 2.8% Free Cash 697,733 - 19.2% 1,050,000 50.5% 1,700,000 61.9% 1,700,0 0.0% 1,700,00 0.0% 1,700,000 0.0% Savings 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Net Available Revenues $ 77,918,646 2.5% $ 80,407,851 3.2% $ 83,101,628 3.4% $ 86,620,964 4.2% $ 89,047,620 2.8% $ 91,536,931 2.8% Accommodated Costs Benefits 13,329,635 3.7% 13,515,050 1.4% 14,116,590 4.5% 15,041,993 6.6% 16,047,839 6.7% 17,084,102 6.5% Capital 1,937,700 104.4% 2,355,500 21.6% 2,308,000 -2.0% 2,200,000 -4.7% 2,400,000 9.1% 2,000,000 -16.7% Debt 4,539,575 -25.1% 3,970,500 -12.5% 3,222,730 - 18.8% 4,538,687 40.8% 4,457,064 -1.8% 5,162,084 15.8% Energy 1,911,168 -4.7% 1,938,945 1.5% 1,898,465 -2.1% 1,957,470 3.1% 2,037,369 4.1% 2,120,064 4.1% Financial 740,000 3.4% 750,000 1.4% 775,000 3.3% 795,000 2.6% 815,000 2.5% 835,000 2.5% Education - Out of district 3,344,235 -12.9% 3,598,098 7.6% 3,858,194 7.2% 4,025,000 4.3% 4,226,250 5.0% 4,437,563 5.0% Education - Vocational 325,000 -22.5% 371,250 14.2% 467,000 25.8% 490,350 5.0% 514,868 5.0% 540,611 5.0% Miscellaneous 2,898,937 3.2% 2,957,750 2.0% 2,933,913 -0.8% 3,013,986 2.7% 3,095,902 2.7% 3,203,627 3.5% Community Priorities 0 0 0 0 0 Accommodated Costs $ 29,026,250 -2.1% $ 29,457,093 1.5% $ 29,579,892 0.4% $ 32,062,486 8.4% $ 33,594,291 4.8% $ 35,383,050 5.3% loperating os s Municipal Go'vt Operating 14,543,129 3.6% 15,423,120 3.75% 16,240,552 3.5% 16,866,941 2.5% 17,204,280 2.0% 17,376,322 1.0% adjustments (comm. priori ) 322,528 268,235 215,000 adjustments (entfunds ove 771,190 2.0% 822,418 6.6% 851,203 3.5% 872,483 2.5% 889,932 2.0% 898,832 1.0% TOTAL Muni Governmen 15,636,848 5.7% 16,513,773 5.6% 17,306,755 4.8% 17,739,424 2.5% 18,094,212 2.0% 18,275,154 1.0% School & Bldgs Operating 32,049,069 3.6% 33,764,332 3.75% 35,136,172 3.5% 36,219,577 2.5% 36,943,968 2.0% 37,313,408 1.0% adjustments (comm. priori 494,865 183,661 200,000 Schools circuit breaker adjustment for FY12 TOTAL School & Bldgs 32,543,934 4.5% 33,947,993 4.3% 35,336,172 4.1% 36,219,577 2.5% 36,943,968 2.0% 37,313,408 1.0% Town Bldgs Operating Targ I 439,499 3.6% 455,980 3.75% 425,346 -6.7% 435,980 2.5% 444,699 2.0% 449,146 1.0% adjustments (comm. priority) (45,018) TOTAL Town Bld s 439,499 3.6% 410,962 -6.5% 425,346 3.5% 435,980 2.5% 444,699 2.0% 449,146 1.0% 0 eratin Bud ets $ 48,620,281 4.9% $ 50,872,728 4.6% $ 53,068,273 4.3% $ 54,394,980 2.5% $ 55,482,880 2.0% $ 56,037,708 1.0% Municipal Go'vt Operatinc 32.16% 32.46% 32.61% 32.61% 32.61% 32.61% School & Bldgs Operatinc 66.93% 66.73% 66.59% 66.59% 66.59% 66.59% Town Bldgs Operating Ta 0.90% 0.81% 0.80% 0.80% 0.80% 0.80% TOTAL EXPENSES (L2+ $ 77,646,531 2.4% $ 80,329,821 3.5% $ 82,648,165 2.9% $ 869457,466 4.6% $ 89,077,171 3.0% $ 91,4209759 2.6% 163,498 (29,552) 116,172 0 Town of Reading One Yr One Yr One Yr One Yr One Yr One Yr Revenues - Details Approved Changes FY - 2013 FY - 2013 Projected FY - 2014 Changes FY - 2014 FY15 Changes FY - 2015 FY16 Changes FY - 2016 FY17 Changes FY - 2017 FY18 Changes FY - 201 10128114 6:13 PM Property Taxes Tax levy (within levy limit) 52,483,622 3.2% 54,350,038 3.6% 56,468,821 3.9% 58,745,545 4.0% 60,726,683 3.4% 62,757,350 3.3% New Growth 579,830 78.4% 622,526 7.4% 843,905 35.6% 500,000 -40.8% 500,000 0.0% 500,000 0.0% 343,905 Tax levy (debt exclusion) 2,030,650 -1.4% 1,431,997 -29.5% 1,671,136 16.7% 2,858,828 71.1% 2,838,003 -0.7% 2,829,808 -0.3% Abatements and exemption (615,000 ) 2.5% (630,375 ) 2.5% 646,134 2.5% 662,288 2.5% (678,845 ) 2.5% 695,816 2.5% Total Property Taxes 54,479,102 3.4% 55,774,186 2.4% 58,337,728 4.6% 61,442,085 5.3% 63,385,841 3.2% 65,391,342 3.2% 343,905 Other Local Revenues 2,650,000 -1.9% 2,852,474 7.6% 3,147,516 10.3% 3,250,000 3.3% 3,325,000 2.3% 3,400,000 2.3% Motor Vehicle Excise Meals Tax 300,000 50.0% 350,000 16.7% 350,000 0.0% 350,000 0.0% 360,000 2.9% 370,000 2.8% Penalties /interest on taxes 160,000 10.3% 175,000 9.4% 180,000 2.9% 200,000 11.1% 205,000 2.5% 210,000 2.4% Payments in lieu of taxes 325,000 3.2% 325,000 0.0% 330,000 1.5% 335,000 1.5% 340,000 1.5% 345,000 1.5% Charges for services 1,475,000 0.0% 1,500,000 1.7% 1,620,000 8.0% 1,600,000 -1.2% 1,625,000 1.6% 1,650,000 1.5% Licenses & permits 140,000 -10.3% 140,000 0.0% 145,000 3.6% 150,000 3.4% 155,000 3.3% 160,000 3.2% Fines 110,000 - 15.4% 110,000 0.0% 100,000 -9.1% 102,500 2.5% 105,000 2.4% 107,500 2.4% Interest Earnings 120,000 -40.0% 100,000 -16.7% 100,000 0.0% 100,000 0.0% 100,000 0.0% 100,000 0.0% Medicaid Reimbursement 100,000 42.9% 100,000 0.0% 100,000 0.0% 100,000 0.0% 100,000 0.0% 100,000 0.0% Other Total Other Local Revenul 5,380,000 -0.4%1 5,652,474 5.1% 6,072,516 7.4%.1 6,187,500 1.9% 6,315,000 2.1%j 6,442,500 2.0%l 0 Intergovernmental Revenue 12,955,108 5.3% 13,096,149 1.1% 13,282,318 1.4% 13,614,376 2.5% 13,954,735 2.5% 14,303,604 2.5% State Aid Total Inter ov't Revenue 12,955,108 -0.1% 13,096,149 1.1% 13,282,318 1.4% 13,614,376 2.5% 13,954,735 2.5% 14,303,604 2.5% 0 Operating Transfers and Available Funds 25,000 0.0% 25,000 0.0% 25,000 0.0% 25,000 0.0% 25,000 0.0% Cemetery sale of lots 25,000 0.0% Sale of real estate funds 250,000 -16.7% 200,000 - 20.0% 150,000 -25.0% 100,000 - 33.3% 50,000 -50.0% 0 0.0% Reading Ice Arena Authorit. 100,000 0.0% 50,000 -50.0% MSBA payments 215,828 - 70.0% 817,305 278.7% RMLD payment 2,200,738 -0.2% 2,313,318 5.1% 2,332,863 0.8% 2,379,520 2.0% 2,427,111 2.0% 2,475,653 2.0% Enterprise Fund Support 771,190 2.0% 822,418 6.6% 851,203 3.5% 872,483 2.5% 889,932 2.0% 898,832 1.0% 40R Stabilization Fund 368,000 100.0% 257,000 - 30.2% Overlay surplus 1 475,947 100.0% 350,000 - 26.5% 350,000 0.0% 300,000 - 14.3% 300,000 0.0% 300,000 0.0% Total Transfers & Availabi 4,406,704 7.3% 4,835,042 9.7% 3,709,066 -23.3% 3,677,003 -0.9% 3,692,043 0.4% 3,699,485 0.2% 0 OPERATING REVENUES 77,220,914 2.77% 79,357,851 2.77% 81,401,628 2.58% 84,920,964 4.32% 87,347,620 2.86% 89,836,931 2.85% 343,905 Free Cash & Savings 697,733 - 19.2% 1,050,000 1,7009000 1,700,000 1,700,000 1,700,000 343,905 TOTAL REVENUES $ 77,918,646 2.52% $ 80,4079851 3.19% $ 83,101,628 3.35% $ 86,620,964 4.23% 89,047,620 2.80% 91,536,931 2.80% 0 Free Cash to pay TBA Town of Reading A Costs - Summary One Yr One Yr One Yr One Yr One Yr One Yr 10128114 6:13 PM Projected Changes Projected Changes Changes Changes Changes Changes FY - 2013 FY - 2013 FY - 2014 FY - 2014 FY15 FY - 2015 FY16 FY - 2016 FY17 FY - 2017 FY18 FY - 201 13,515,050 1.4% 14,116,590 4.5% 15,041,993 6.6% 16,047,839 6.7% 17,084,102 6.5% Benefits 13,329,635 3.7% Capital 1,937,700 104.4% 2,355,500 21.6% 2,308,000 -2.0% 2,200,000 1 -0.7% 2,400,000 9.1% 2,000,000 - 16.7% Debt 4,539,575 - 25.1% 3,970,500 -12.5% 3,222,730 -18.8% 4,538,687 40.8% 4,457,064 -1.8% 5,162,084 15.8% Energy 1,911,168 -4.7% 1,938,945 1.5% 1,898,465 -2.1% 1,957,470 3.1% 2,037,369 4.1% 2,120,064 4.1% Financial 740,000 3.4% 750,000 1.4% 775,000 3.3% 795,000 2.6% 815,000 2.5% 835,000 2.5% Education - Out of distric 3,344,235 - 12.9% 3,598,098 7.6% 3,858,194 7.2% 4,025,000 4.3% 4,226,250 5.0% 4,437,563 5.0% Education - Vocational 325,000 - 22.5% 371,250 14.2% 467,000 25.8% 490,350 5.0% 514,868 5.0% 540,611 5.0% Miscellaneous 2,898,937 3.2% 2,957,750 2.0% 2,933,913 -0.8% 3,013,986 2.7% 3,095,902 2.7% 3,203,627 3.5% Community Priorities TOTAL Accommodated Cl $ 29,026,250 -2.1% $ 29,457,093 1.5% $ 29,579,892 0.4% $ 32,062,486 8.4% $ 33,594,291 4.8% $ 35,383,050 5.3% 0 37.3% 36.6% 35.6% 37.0% 37.7% 38.7% 48,892,396 50,950,758 4.2% 53,521,736 5.0% 54,558,478 1.9% 55,453,328 1.6% 56,153,880 1.3% 62.7% 3,125,885 3.6% 63.4% 3,266,550 4.5% 64.4% 3,413,545 4.5% 63.0% 3,567,154 4.5% 62.3% 3,727,676 4.5% 61.3% 3,895,422 4.5% Accom Costs - Detail Accommodated Costs - Benefits Contributory Retirement Non - Contrib. Retirement 67,500 -10.0% 35,000 -48.1% 0 - 100.0% 0 0 0 OBRA fees & OPEB study 40,000 166.7% 15,000 - 62.5% 40,000 166.7% 20,000 - 50.0% 40,000 100.0% 20,000 - 50.0% OPEB contribution 420,000 100.0% 450,000 7.1% 475,000 5.6% 500,000 5.3% 500,000 0.0% 500,000 0.0% Workers Compensation 341,250 5.0% 300,000 - 12.1% 275,000 -8.3% 288,750 5.0% 303,188 5.0% 318,347 5.0% Unemployment Benefits 120,000 - 20.0% 100,000 - 16.7% 100,000 0.0% 100,000 0.0% 100,000 0.0% 100,000 0.0% Group Health 1 Life Ins. 8,475,000 -1.0% 8,593,500 1.4% 9,038,045 5.2% 9,761,089 8.0% 10,541,976 8.0% 11,385,334 8.0% Medicare I Social Security 675,000 3.8% 685,000 1.5% 700,000 2.2% 725,000 3.6% 750,000 3.4% 775,000 3.3% Police 1 Fire Indemnificatio 65,000 8.3% 70,000 7.7% 75,000 7.1% 80,000 6.7% 85,000 6.3% 90,000 5.9% Total Benefits 1 $13,329,635 3.7% $13,515,050 1.4% $14,116,590 4.5% $15,041,993 6.6% $16,047,839 6.7% $17,084,102 6.5% 0 5% of net available revs(esi 3,748,055 3,851,389 3,986,525 4,103,107 4,225,481 4,350,356 Energy Savings to pay deb $ 300,000 $ 200,000 $ - 4,048,055 4,051,389 3,986,525 4,103,107 4,225,481 4,350,356 less debt (net, inside levy) (2,279,765) (1,640,427) (1,551,594) (1,679,859) (1,619,061) (2,332,276) Available for cash capital 1,768,290 2,410,962 2,434,931 2,423,248 2,606,420 2,018,080 Temp shift to OPERATING 1 (223,248) (206,420) Extra Capital from 40R Fund 1 257,000 Total Capital F$-1,937,700 104.4%1 $ 2,355,500 21.6%1 $ 2,308,000 -2.0%1 $ 2,200,000 -4.7%1 $ 2,400,000 9.1%1 $ 2,000,000 - 16.7% 0 Accommodated Costs - Debt (net inside levy limit) 3,010,000 -14.9% 2,135,000 - 29.1% 3,322,000 55.6% 3,373,000 1.5% 4,019,000 19.2% Debt Service - Principal 3,535,000 - 15.5% DebtService - Interest 1,004,575 -46.5% 960,500 -4.4% 1,087,730 13.2% 1,216,687 11.9% 1,084,064 - 10.9% 1,143,084 5.4% Excluded debt (2,043,982) - 26.8% (1,512,768) - 26.0% (1,671,136) 10.5% (2,858,828) 71.1% (2,838,003) -0.7% (2,829,808) -0.3% MSBA reimbursements (215,828) - 53.3% (817,305) 278.7% Total Included Debt $ 2,279,765 - 18.8% $ 1,640,427 -28,0%1 $ 1,551,594 -5.4% $ 1,679,859 8.3% $ 1,619,061 -3.6% $ 2,332,276 44.1% Total Debt $ 4,539,575 - 25.1% $ 3,970,500 - 12.5% $ 3,222,730 - 18.8% $ 4,538,687 40.8%1 $ 4,457,064 -1.8%1 $ 5,162,084 15.8% 0 0 Free Cash to pay 82,062,136 Reduce for two ye Town of Reading Accom Costs - Detail Voted One Yr Changes Projected One Yr Changes One Yr Changes One Yr Changes One Yr Changes One Yr Changes 1012911410:37 AM FY - 2013 FY - 2013 FY - 2014 FY - 2014 FY15 FY - 2015 FY16 FY - 2016 FY17 FY - 2017 FY18 FY - 201 200,000 -1.8% 200,000 0.0% 200,000 0.0% 210,000 5.0% 220,000 4.8% 230,000 4.5% Accommodated Costs - Energy Street Lighting Heating of Buildings -Town 93,000 6.0% 93,979 1.1% 4;885 1.0% 158,390 66.9% 164,726 4.0% 171,315 4.0% Heating of Buildings -Schoo 456,358 -2.3% 417,341 -8.5% 928 -4.9% 440,981 11.1% 458,620 4.0% 476,965 4.0% Utilities -Town 173,050 -7.9% 199,692 15.4% 194,153 -2.8% 183,614 -5.4% 190,959 4.0% 198,597 4.0% Utilities - Schools 708,760 -7.0% 737,933 4.1% 726,499 -1.5% 664,485 -0.5% 691,064 4.0% 718,707 4.0% Fuel - vehicles (in DPW bu 280,000 -5.5% 290,000 3.6% 286,000 -1.4% 300,000 4.9% 312,000 4.0%1 324,480 4.0% Total Energy $ 1,911,168 -4.7%1 $ 1,938,945 1.5%1 $ 1,898,465 -2.1% $ 1,957,470 3.1% $ 2,037,369 4.1%1 $ 2,120,064 4.1% 0 Accommodated Costs - Financial 340,000 7.6% 375,000 10.3% 400,000 6.7% 420,000 5.0% 440,000 4.8% 460,000 4.5% Casualty Insurance Veteran's Assistance 250,000 0.0% 225,000 -10.0% 225,000 0.0% 225,000 0.0% 225,000 0.0% 225,000 0.0% FINCOM Reserve Fund 150,000 0.0% 150,000 0.0% 150,000 0.0% 150,000 0.0% 150,000 0.0% 150,000 0.0% Total Financial $ 740,000 3.4% $ 750,000 1.4% $ 775,000 3.3% $ 795,000 2.6% $ 815,000 2.5% $ 835,000 2.5% 0 Accommodated Costs - Education Out of district 969,001 1.6% 1,059,313 9.3% 1,075,000 1.5% 1,128,750 5.0% 1,185,188 5.0% Out of district SPED transp, 954,000 6.8% Out of district SPED tuition 3,680,235 -4.0% 3,825,726 4.0% 3,985,129 4.2% 4,200,000 5.4% 4,410,000 5.0% 4,630,500 5.0% Out of district SPED rev. o 1,290,000 45.9% 1,196,629 -7.2% 1,186,248 -0.9% 1,250,000 5.4% 1,312,500 5.0% 1,378,125 5.0% Total Education - Out of c $ 3,344,235 -12.9%1 $ 3,598,098 7.6%1 $ 3,858,194 7.2%1 $ 4,025,000 4.3%1 $ 4,226,250 5.0%1 $ 4,437,563 5.0% 0 Accommodated Costs - Education Vocational School Voc School - NERMVS 200,000 -26.1% 240,000 20.0% 230,000 4.2% 241,500 5.0% 253,575 5.0% 266,254 5.0% Voc School - Minute Man 125,000 -15.9% 131,250 5.0% 137,000 4.4% 143,850 5.0% 151,043 5.0% 158,595 5.0% Voc School - Essex North 100,000 105,000 5.0% 110,250 5.0% 115,763 5.0% Total Education - Voke $ 325,000 -22.5% $ 371,250 14.2% $ 467,000 25.8% $ 490,350 5.0% $ 514,868 5.0% $ 540,611 5.0% 0 Accommodated Costs - Miscellaneous 1,500,000 1.9% 1,490,000 -0.7% 1,490,000 0.0% 1,549,600 4.0% 1,611,584 4.0% 1,676,047 4.0% Rubbish Collection 1 Dispos Snow and Ice Control 600,000 6.2% 625,000 4.2% 625,000 0.0% 625,000 0.0% 625,000 0.0% 650,000 4.0% State Assessments 617,079 5.3% 649,044 5.2% 613,513 -5.5% 628,851 2.5% 644,572 2.5% 660,686 2.5% Cemetery 181,858 -1.69/6 193,706 6.5%1 205,400 6.0% 210,535 2.5% 214,746 2.0% 216,893 1.0% Salaries and Wages 142,758 -2.0% 150,606 5.5% 161,750 7.4% 165,794 2.5% 169,110 2.0% 170,801 1.0% Expenses 39,100 0.0% 43,100 10.2% 43,650 1.3% 44,741 2.5% 45,636 2.0% 46,092 1.0% Total Miscellaneous $ 2,898,937 3.2% $ 2,957,750 2.0% $ 2,933,913 -0.8% $ 3,013,986 2.7% $ 3,095,902 2.701. $ 3,203,627 3.5% 0 0_�__ )er MS 10/28 )er MS 10128 )er MS 10128 )er MS 10128 Der MS 10128 Town of Reading A Costs - Detail Voted One Yr Changes Projected One Yr Changes One Yr Changes One Yr Changes One Yr Changes One Yr Changes 10128114 6:13 PM FY - 2013 FY - 2013 FY - 2014 FY - 2014 FY15 FY - 2015 FY16 FY - 2016 FY17 FY - 2017 FY18 FY - 201 Accommodated Costs - Energy Street Lighting 200,000 -1.8% 200,000 0.0% 200,000 0.0% 210,000 5.0% 220,000 4.8% 230,000 4.5% \� Heating of Buildings -Town 93,000 6.0% 93,979 1.1% 94,885 1.0% 66.9% 164,726 4.0% 171,315 4.0% �0 S Heating of Buildings Schoo 456,358 2.3% 417,341 8.5% 396,928 4.9% 11.1% 458,620 4.0% 476,965 4.0% Utilities -Town 173,050 -7.9% 199,692 15.4% 194,153 -2.8% 1836 -5.4% 190,959 4.0% 198,597 4.0% G Utilities - Schools 708,760 -7.0% 737,933 4.1% 726,499 -1.5% 664,48 -8.5% 691,064 4.0% 718,707 4.0% Fuel - vehicles in DPW bug 280,000 -5.5% 290,000 3.6% 286,000 -1.4% 300,000 4.9% 312,000 40% 324,480 4.0% Total Energy $ 1,911,168 -4.7% $ 1,938,945 1.5% $ 1,898,465 -2.1% $ 1,957,470 3.1% $ 2,037,369 4i;.,$ 2,120,064 4.1% 0 Accommodated Costs - Financial 340,000 7.6% 375,000 10.3% 400,000 6.7% 420,000 5.0% 440,000 4.8% 460,000 4.5% Casualty Insurance Veteran's Assistance 250,000 0.0% 225,000 -10.0% 225,000 0.0% 225,000 0.0% 225,000 0.0% 225,000 0.0% FINCOM Reserve Fund 150,000 0.0% 150,000 0.0% 150,000 0.0% 150,000 0.0% 150,000 0.0% 150,000 0.0% Total Financial $ 740,000 3.4% $ 750,000 1.4% $ 775,000 3.3% $ 795,000 2.6% $ 815,000 2.5% $ 835,000 2.5% 0 Accommodated Costs - Education Out of district 969,001 1.6% 1,059,313 9.3% 1,075000 1.5% 1,128,750 5.0% 1,185,188 5.0% Out of district SPED transp, 954,000 6.8% Out of district SPED tuition 3,680,235 -4.0% 3,825,726 4.0% 3,985,129 4.2% 4,200,000 5.4% 4,410,000 5.0% 4,630,500 5.0% Out of district SPED rev. of 1,290,000 45.9% 1,196,629 -7.2% 1,186,248 -0.9% 5.4% 1,312,500 5.0% 1,378,125 5.0% Total Education - Out of c $ 3,344,235 -12.9%1 $ 3,598,098 7.6%1 $ 3,858,194 7.2% $ 4,025,000 4.3%1 $ 4,226,250 5.0%1 $ 4,437,563 5.0% 0 Accommodated Costs - Education Vocational 200,000 School - 26.1% 240,000 20.0% 230,000 -4.2% 241,500 5.0% 253,575 5.0% 266,254 5.0% Voc School - NERMVS Voc School - Minute Man 125,000 - 15.9% 131,250 5.0% 137,000 4.4% 143,850 5.0% 151,043 5.0% 158,595 5.0% Voc School - Essex North 100,000 105,000 5.0% 110,250 5.0% 115,763 5.0% Total Education - Voke $ 325,000 - 22.5% $ 371,250 14.2% $ 467,000 25.8% $ 490,350 5.0% $ 514,868 5.0% $ 540,611 5.0% 0 Accommodated Costs - Miscellaneous 1,500,000 1.9% 1,490,000 -0.7% 1,490,000 0.0% 1,549,600 4.0% 1,611,584 4.0% 1,676,047 4.0% Rubbish Collection I Dispos Snow and Ice Control 600,000 6.2% 625,000 4.2% 625,000 0.0% 625,000 0.0% 625,000 0.0% 650,000 4.0% State Assessments 617,079 5.3% 649,044 5.2% 613,513 -5.5% 628,851 2.5% 644,572 2.5% 660,686 2.5% Cemetery 181,858 -1.6%1 193,706 6.5% 205,400 6.0% 210,535 2.5% 214,746 2.0% 216,893 1.0% Salaries and Wages 142,758 -2.0% 150,606 5.5% 161,750 7.4% 165,794 2.5% 169,110 2.0% 170,801 1.0% Expenses 39,100 0.0% 43,100 10.2% 43,650 1.3% 44,741 2.5% 45,636 2.0% 46,092 1.0% Total Miscellaneous $ 2,898,937 3.2% $ 2,957,750 2.0% $ 2,933,913 -0.8% $ 3,013,986 2.7% $ 3,095,902 2.7% $ 3,203,627 3.5% 0 0�_� W MS 10128 per MS 10128 per MS 10128 per MS 10/28 U er MS 10128 s r Town of Reading Meeting Minutes �s'�KCOa� Board - Committee - Commission - Council: Finance Committee Date: 2014 -10 -09 Building: Reading Town Hall Address: 16 Lowell Street Purpose: General Business Attendees: Members - Present: Time: 7:30 Location: Conference Room Chairman Mark Dockser, Vice Chair Paula Perry, members Peter Lydecker, Anne Landry, Craig Merry, and Marc Moll Members - Not Present: Members Karen Herrick and Paul McNeice Others Present: Town Manager Bob LeLacheur, Superintendent of Schools John Doherty, School Committee Chair Chris Caruso, School Committee member Chuck Robinson, Town Accountant Sharon Angstrom, and Martha Sybert Minutes Respectfully Submitted By: Topics of Discussion: Chairman Mark Dockser called the meeting to order at 7:50pm. Town Accountant Sharon Angstrom started the meeting off by going over FY14 revenues saying we had some pleasant surprises this year including motor vehicle excise taxes and property taxes. She mentioned Smart Growth reimbursement and FEMA storm reimbursements were a nice surprise because we don't always get those so we can't budget for them. Mr. LeLacheur stated the projected revenues for FY16 -17 is just under three percent and a few things we need to watch for is State Aid being higher or lower and RMLD wants to reduce or eliminate their $2.3 million payment to the town. The biggest accommodated cost this year will be health insurance as we are in the middle of the RFP. It is typically a one year negotiation and we have asked for a plan similar to the one we have now and the carriers will offer the closest match plus other money saving options. The town has considered joining the GIC however the only problem with that is we won't know any numbers when we sign up. Mr. LeLacheur noted the Reading 2020 working groups have a lot of ideas in the works for revenue however they are more long term. He said the casino vote will have an effect on revenues but we are not sure when we would see those changes. Dr. Doherty was asked to give the committee a look at the accounts the school is dealing with. Dr. Doherty explained the school department programs have revolving funds which means what money gets put into an account must be used for what the account was made for. l.0 Page 1 1 FINCOM Minutes 2014110109 page 2 Ms. Perry asked if there was a general amount that needs to be in the funds and Dr. Doherty stated they try to keep a years' worth in the account as a cushion but sometimes that is just not doable. Dr. Doherty explained the special education tuition is for bringing in students from outside communities. Special education kids do not pay tuition but Rise students do and that's why the gain /loss numbers fluctuate so much. If they do the lottery system with the full day kindergarten again, it will bring in less revenue and they will have to adjust the budget for that. Dr. Doherty said they need to build up the account so if they want to offer free full day kindergarten to everyone, they can, but if they put money into the full day kindergarten account they can only use that money for that program. Dr. Doherty explained there is more in Chapter 70 funding if more kids are in free full day kindergarten which would bring up revenues for the budget. He said we would get more in Chapter 70 funding if we offered the free full day kindergarten than we get from the tuition so that's why they want to offer the free full day kindergarten. He also noted the more kids in free full day, the more money we would receive from Chapter 70. Mr. Dockser reminded the committee that they will have to make a recommended use of free cash soon and at some point we will need some sort of an override to not shrink the funds. Health insurance is the biggest question right now in the budget but it is estimated to go up between 11 -16% this year. Nationally, between 8 -11% and then another 3 -6% on the Federal side. One percent is equivalent to $100,000 increase. The committee decided to build the budget on an 8% increase and let free cash handle the over, if need be, when we find out the real number. If by some miracle it is less than 8% increase, FINCOM will then decide if they want to put that money back into free cash or somewhere else depending on how much it is. Mr. Dockser made a motion to accept Article 3, second by Mr. Lydecker and passed with a 6 -0 -0 vote. Ms. Landry will report on this Article to Town Meeting. Ms. Perry made a motion to accept Article S. second by Mr. Moll and passed with a 6 -0 -0 vote. Mr. Lydecker will report on this Article to Town Meeting. Ms. Landry made a motion to declare a short list of five items as surplus, second by Ms. Perry and passed with a 6 -0 -0 vote. Ms. Angstrom shared with the board her final report on the disposition of surplus trucks at the RMLD. She stated an anonymous letter informed her of the situation. Upon further investigation she found multiple areas of concern. She received a second anonymous letter stating the town has also sold to employees in the past. She looked into that incident which was in October of 2013 but did not find anything too concerning. She stated the violation will fall on the employee not the town if the employee purchases equipment from the same division and does not fill out a disclosure form. Ms. Angstrom stated she also looked back 3 -4 years and did not see anything else that stood out. The Finance Committee formed a subcommittee at their last meeting for their investigation into the RMLD matters. They will hold open and public meetings and the members of that subcommittee will be Mark Dockser, Paul McNeice, Peter Lydecker, and Craig Merry. Page 1 2 FINCOM Minutes 2 01 411 010 9 page 3 Ms. Perry made a motion to accept the minutes as written from the September loth Financial Forum, second by Ms. Landry and passed with a 6 -0 -0 vote Ms. Perry made a motion to accept the minutes as written from the September 29th meetino, second by Mr. Lvdecker and passed with a 6 -0 -0 vote. Ms. Perry made a motion to adiourn at 10:10 pm, second by Mr. Moll and approved with a 6 -0 -0 vote. Respectfully submitted, Secretary Page 1 3 0 R w i B3! °IlICONT' Town of Reading Meeting Minutes Board - Committee - Commission - Council: Finance Committee Subcommittee Date: 2014 -10 -09 Building: Reading Town Hall Address: 16 Lowell Street Purpose: Investigation Attendees: Members - Present: Time: Location: Conference Room Mark Dockser, Craig Merry, Peter Lydecker Members - Not Present: Paul McNeice Others Present: Town Accountant Sharon Angstrom and Administrative Secretary Caitlin Saunders Minutes Respectfully Submitted By: Topics of Discussion: Mr. Dockser called the meeting to order at 10:10. He suggested they start their investigation with the RMLD followed by the Town and Schools. He thinks they should start with the current issues and concerns on the table followed by policy issues. Mr. Dockser then stated he thinks they should hire an outside firm to help with the policy changes. It was noted that RMLD was asked for background information on other transactions with employees but RMLD did not provide that information. The subcommittee will look into further transactions. The subcommittee agrees it is a good idea to get an outside third party to look at what happened and then look at the new policy to see if it resolves the issues. Mr. Dockser came up with a list of other towns close by that have Municipal Light Boards and he thinks it would be a good idea to research or talk to them to see how they operate and what their policies are. Mr. Merry asked how deep are we digging and the group agreed to take it as it comes. If they keep finding things they will keep digging, if it seems to be an isolated incident then they will just deal with this. The group will also decide if they want to look past or further into the incident than what Sharon was allowed to do. One of the anonymous letters included something about a personal relationship between the general manager and the buyer of the trucks but that was not Sharon's duty to look into and FINCOM can decide if they want to go that route or not. FINCOM believes an unrelated third party that also has knowledge of the way municipal boards work and previous experience with issues like this would be of great help. 00� Page 1 1 Finance Committee Subcommittee Minutes 2014 -10 -09 Page 2 The group also wants to review the new policy that has been put into place as they have not seen it yet. Mr. Dockser suggested that after this investigation FINCOM should take regular looks from now on to hopefully prevent anything else from going unnoticed again. The subcommittee agreed to contact two outside firms to ask them to sit down with the group for an hour or so and specify the scope of the investigation. Mr. Lvdecker made a motion to adiourn at 10:50 am, second by Mr. Merry and approved with a 3 -0 -0 vote. Respectfully submitted, Secretary Page 1 2 OW