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HomeMy WebLinkAbout2014-10-28 Board of Selectmen PacketDRAFT - BOARD OF SELECTMEN 2014 AGENDAS 2014 1012312014 Responsibility Start time October 28, 2014 HEARING Tax Classification Hearing SantanielloBd of Assessors 7:30 Mystic Valley Elder Services Delios 8:30 Financial Forum III preview LeLacheur 9:15 Preview Jan '15 Special Town Mtg Warrant Permanent Building Committee (Bylaw Comm) Charter (Charter Review Comm) LeLacheur 9:30 Request authorization for internal borrowing for the Public Library Project LeLacheur 9:55 October 29, 2014 Financial Forum III November 4, 2014 - Election Subsequent Town Meeting November 10, 2014 Monday Town Meeting November 13, 2014 Thursday Town Meeting November 17, 2014 Monday November 18, 2014 Office Hour John Arena 6:30 HOLD for Tax Classification (if needed) SantanielloBd of Assessors 7:30 Approve Liquor licenses LeLacheur 8:30 RMLD Presentation - LED Program and Organizational/Reliability Study Coleen O'Brien 9:00 Executive Session To discuss strategy with respect to collective bargainning LeLacheur 9:45 Town Meeting November 20, 2014 Thursday December 2, 2014 Office Hour John Halsey 6:30 Approve licenses LeLacheur 7:30 Private/Public Road discussion Town Counsel 8:00 Enterprise Funds Workshop ILeLacheur 9:00 December 9, 2014 HEARING Close Warrant for January 5, 2015 Special Town Meeting LeLacheur 7:30 HEARING Approve FY15 Classification Plan LeLacheur 7:45 Vote on Special Town Meeting Articles LeLacheur 8:00 Review FY15 Town Manager Goals LeLacheur 9:30 Discuss Reading 2020 Working Groups LeLacheur 9:45 December 23, 2014 If Needed Future Agendas Reading 2020 Community Meeting Winter'15 Downtown Parking Spring ' 15 Multi BCC Summit RMLD joint meeting Strout Avenue Master Plan (after Town Forest planning work is done) Feudo Recurring Items Close Town Meeting Warrants by Sep 23/Nov by Mar 3 /April Review BOS/TM Goals Mar -July -Dec Tri -ann Review Customer Service survey results Feb & Aug Semi -ann Review Regionalization efforts June Annual Appointments of BCCs June Annual Approve Classification & Compensation June Annual Appoint Town Counsel June Annual Tax Classification Hearing October Annual Approve licenses December Annual Reports to BOS Town Accountant Report Qtrly RCTV members Report Semi -ann CAB (RMLD) member Report Semi -ann MAPC member Report Semi -ann BOS Appointed Boards, Committees & Commissions Annual Reading Housing Authority Report Annual Reading Ice Arena Report Annual O� OF I? tic Office of the Town Manager �0 16 Lowell Street '6,9`NCOAP0 Reading, MA 01867 To: Board of Selectmen From: Robert W. LeLacheur, Jr. CFA 781 - 942 -9043 townmanager@ci.reading.ma.us www.readingma.gov /town - manager Date: October 23, 2014 RE: October 281h BOS Meeting At 7:30pm the Board of Assessors and Appraiser Victor Santaniello will come in for the Tax Classification Hearing. Attached in your packet is the background information on Tax Classification. The draft results show an average single family home in Reading rose by over 49/o in the past year to over $460,000 — passing the previous all -time high set in 2007. The tax rate if not split will be $14.71 per thousand, a slight reduction from the previous year. Next year is expected to be the first year of the impact of the Library debt exclusion, as we will borrow in February 2015. If you have any Tax Classification questions over the weekend, please send an email to Victor at either vsantaniello @ci.reading.ma.us or vsantaniello @wakefield.ma.us. At 8:30pm, Mystic Valley Elder Services will be in for a 30 -45 minutes presentation about their services provided to the community. Assistant Town Manager Jean Delios will lead that discussion. At 9:15pm I will provide the Board a preview of the Financial Forum, to be held on Wednesday October 29tH The financial present is strong, but the future does look very challenging. At 9:30pm I will preview the January 2015 Special Town Meeting Warrant, consisting of ten Articles thus far. I will review the draft Permanent Building Committee as proposed by the Bylaw Committee, which will be a Bylaw change suggested for January 2015 Town Meeting. Then we will spend some time reviewing the Charter Committee's plans for Charter changes — that will constitute five Articles at January Town Meeting. If all are approved, one which accomplishes most of the desired changes will go to local voters in April 2015, and the other four sets of minor changes will go to the State Legislature in the form of a Home Rule Petition. See this link for a current bold /cross -out version that will be the basis of a Public Information Session held on Monday October 27th at 7:30pm at Coolidge: http• / /www readingma.gov/ sites /readingma /files/u227/20141027 draft charter review.pdf Finally I will give the Board a brief update on the Library building project, and request permission to borrow funds internally to bridge a possible funding gap between the timing of construction and the state aid that we have on hand, until we borrow as mentioned in February 2015. October 28, 2014 Board of Selectmen LEGAL NOTICE OF$O r �o s'r9�rNCOweo� �o TOWN OF READING .To the Inhabitants of the Town of Reading: Notice is hereby given that a public hearing will be held in accordance with the Massachusetts General Laws, Chapter 369 of the Acts of 1982 on the issue of determining a residential factor in assessing the percentage of tax burden to be bome by each class of prop- erty for Fiscal Year 2015. Thb hearing will be. held on Tuesday, October 28, 2014 at 7:30 p.m. In the Selectmen's Meeting Room, 16 Lowell Street, Reading, MA. The five classes of property involved are residential, open space, com mercial, industrial and personal property. A copy of the proposed doc- ument regarding this topic is available in the Town Manager's office, 16 Lowell Street, Reading,. MA, M -W- Thurs from 7:30 a.m. - 5:30 p.m., Tues from 7:30 a.m. - 7:00 p.m. and is attached to the hearing notice on the website at www.reacringma.gov All interested parties are Invited to attend the hearing, or may submit their comments in writing or by email' prior to 6:00 p.m. on October 28, 2014 to townmanager @ci.reading.ma.0 s - By order of Robert W.LeLacheur Town Manager 10/14,21 — �� FY 2015 Classification Information Presented by the Reading Board of Assessors October 28, 2014 e • Selection of a Minimum Residential Factor. • Selection of a Discount for Open Space. • Granting of a Residential Exemption. • Granting of a Small Commercial Exemption. Reading has never adopted a split rate. The MRF will be 1. The anticipated tax rate is $58,829,894 $3,999,6377753 � 0.01471 x 1000 � $14.71 • Single Tax Rate $14.71 est. The average single family home value for FY 2015 is $464,200. The table below summarizes the anticipated FY 2015 average tax bill amounts at various shift intervals. CIP SHIFT MRF RES % RES TAX RATE EST 2015 BILL 1 100 91.4360 $14.71 $6,828 1.1 99.0634 90.5796 $14.57 $6,763 1.2 98.1268 89.7232 $14.43 $61698 1.3 97.1902 88.8668 $14.30 $6,638 1.4 96.2536 88.0104 $14.16 $6,573 1.5 95.3169 87.1540 $14.02 $6,508 Average single family tax bill history from 2003 to present. Fiscal Year Single Family Assessed Values Single Fam parcel Single Family Avg Value Residential Tax Rate Avg Single Family Tax Bill percent Change 2003 29295,2075400 69473 3549582 11.49 41074 2004 2953254359800 6,470 3915412 12.23 49787 17.50% 2005 2572295995400 6,483 419,960 12.57 5,279 10.28% 2006 2,912,2735100 69490 448,732 12.08 59421 2.69% 2007 2,99497599900 69487 4619656 12.07 59572 2.79% 2008 2993399099900 6,490 452,066 12.6 506 2.23% 2009 29882578700 69501 443,438 13.21 59858 2.84% 2010 29816927000 6,505 432,939 13.75 59953 1.62% 2011 20097969500 69508 4429655 13.8 6,109 2.62% 2012 2989554759600 6,514 444,500 14.15 69290 2.96% 2013 298169675,700 69516 4329300 14.94 6,459 2.68% 2014 2591055955200 6,524 4469100 14.74 69575 1.76% 2015 3903096635500 1 6,528 4645250 14.71 69828 3.70% The average commercial property valuation for FY 2015 is $1,449,700. The table below summarizes the anticipated FY 2015 average commercial tax bill amounts. CIP SHIFT MRF CIP % CIP TAX RATE EST 2015 BILL 1 100 8.5640 $14.71 $219325 1.1 99.0634 9.4204 $16.18 $239456 1.2 98.1268 10.2768 $17.65 $255587 1.3 97.1902 11.1332 $19.12 $275718 1.4 96.2536 11.9896 $20.59 $29,849 1.5 95.3169 12.8460 $22.06 $31,980 �J f1 .0 80 i 50 40 30 20 MI IC Commercial Property Value Breakdown for FY 2014 97 properties < $500K 66 from $500K - $1M 39 from $lm to 2M 23 from 2M to 10M 6 Properties above MOM <500K 500K - IM IM-2M 2M - IOM > IOM Average commercial tax bill history from 2003 to present. Fiscal Year Total Commercial Value Comm. Parcels Average Commercial Value Tax Rate Average Commercial Tax Bill Percent Change 2003 1569623,500 175 $894,991 11.49 109283 2004 15555609000 176 $88304 12.23 101810 5.12% 2005 186,3395900 178 $150469853 12.57 139159 21.73% 2006 2199005,200 179 $151223,493 12.08 149780 12.32% 2007 236,51611816 198 $191949529 12.07 149418 -2.45% 2008 256,5825400 203 $1,263,953 12.6 15,926 10.46% 2009 2625919,463 206 $192769308 13.21 169860 5.87% 2010 270169033 205 $1,321,054 13.75 189164 7.74% 2011 3195506,376 204 $195669208 13.8 21,614 18.99% 2012 32094819055 205 $1,563,322 14.15 225121 2.35% 2013 3005063,400 199 $1,5079900 14.94 22,527 1.84% 2014 28550689700 198 $19439,700 14.76 21,221 -5.7% 2015 284,1419800 196 $194499700 14.71 219325 .488% Discount for Open Space • MGL C59, sec 2A defines class 2 open space as: "land which is not otherwise classified and which is not taxable under provisions of Chapters 61A or 61 B, or taxable under a permanent conservation restriction, and which land is not held for the production of income but is maintained in an open or natural condition and which contributes significantly to the benefit and enjoyment of the public." • An exemption of up to 25% could be adopted for property classified as Class 2 Open Space. • Reading has never adopted a discount for Class 2 Open Space. 0 • 6QS may adopt a Residential Exemption for residential properties in town that are owner occupied. • Amount up to 20% of the average assessed value of ALL residential properties, including vacant land. • Adopting this would raise the residential tax rate to $17.82 from the $14.71 est. This would apply to all residential properties before the exemption which is estimated to be approx. $1,575 off for all owner occupied residential properties. The est. break -even point is $468,600 and a tax amount of $6,750. • Adopted by only 13 communities including Boston, Chelsea, Cambridge & Waltham. • Since the shift is only in the res class, higher valued homes will pay for the exemption to those homes of lower value. Small Commercial Exemption • Up to 10% of prop value for commercial properties only. (No industrial or personal property). • Total Property Value less than $1,000,000 • Not more than 10 employees as certified by the Dept. of Employment & Training. • One business in a building of several would qualify only if all other businesses qualified. • Exemption goes to the real estate owner and not the business owner. • Less than a dozen communities in the Commonwealth have adopted this exemption. N Neighboring Communities / FY 2014 Community Res% Split Shift Avg. S. E Tax Bill Tax Rate /$1000 RES / CIP Lynnfield 90.80 Yes 1.11 $7,810 14.77 / 16.59 No. Reading 86.40 No 1.0 $7,464 16.43 Stoneham 88.50 Yes 1.52 $59297 13.49 / 22.00 Wakefield 84.10 Yes 1.75 $59161 12.78 / 26.07 Wilmington 75.30 Yes 1.75 $59102 14.24 / 33.04 Woburn 69.20 Yes 1.75 $39571 10.44 / 27.41 READING 90.9 No 1.0 $6,576 14.74 Only Lynnfield & Reading have a CIP sector less than 10 %. \1 W Middlesex League / FY2014 Community Res% Split Shift Avg. S.F. Tax Bill Tax Rate / $1000 RES / CIP Arlington 93.9 No 1.0 $73,099 13.79 Belmont 94.4 No 1.0 $10,566 13.50 Burlington 63.8 Yes 1.67 $49652 12.00 / 32.24 Lexington 86.6 Yes 1.70 $11,481 15.51 / 29.56 Melrose 93.7 Yes 1.36 $59383 13.28 / 18.51 Stoneham 88.5 Yes 1.52 $59297 13.49 / 22.00 Wakefield 84.1 Yes 1.75 $59161 12.78 / 26.07 Watertown 80.7 Yes 1.75 Res Ex 14.96 / 27.96 Wilmington 75.3 Yes 1.75 $55102 14.27 / 33.04 Winchester 94.6 Yes 1.0 $109195 12.66 / 11.91 Woburn 69.2 Yes 1.75 $3,571 10.44 / 27.41 READING 90.9 No 1.0 $69576 14.74 Largely Residential Comparable Communities Fiscal Year 2014 Data Community Res% Split Shift Avg. S.F. Tax Bill Tax Rate / $1000 RES / CIP Arlington 93.9 No 1.0 $79099 13.79 Belmont 94.4 No 1.0 $109566 13.50 Concord 90.6 No 1.0 $129249 14.45 Lincoln 96.3 Yes 1.30 $13,742 14.41 / 18.95 Lynnfield 90.8 Yes 1.11 $7,810 14.77 / 16.59 Melrose 93.7 Yes 1.36 $59383 13.28 / 18.51 Milton 95.9 Yes 1.50 $7,740 14.99 / 22.97 Sudbury 93.3 Yes 1.35 $119544 18.03 / 24.94 Wakefield 84.1 Yes 1.75 $5,161 12.78 / 26.07 Winchester 94.6 Yes 1.0 $109195 12.66 / 11.91 READING 90.9 No 1.0 $6,576 14.74 Reading had the third lowest average single family tax bill of those listed. All communities except Wakefield had a 1.5 shift capacity. Community Res % Split Shift Avg. S.F. Tax Bill Tax Rate / $1000 RES / ClP Andover 80.20 Yes 1.47 $8,343 15.18 / 25.26 Bedford 79.60 Yes 1.75 $8,461 15.71 / 34.04 Belmont 94.40 No 1.0 $10,566 13.50 Burlington 63.80 Yes 1.67 $4,652 12.55 / 32.24 Canton 76.50 Yes 1.65 $5,805 12.87 / 26.53 Danvers 73.40 Yes 1.27 $5,215 14.85 / 20.90 Dedham 79.80 Yes 1.75 $6,217 16.08 / 34.72 Lynnfield 90.80 Yes 1.11 $7,810 14.77 / 16.59 Mansfield 75.90 Yes 1.21 $5,628 15.77 / 20.45 Marshfield 93.70 No 1.0 $5,002 13.29 Milton 95.90 Yes 1.5 $7,740 14.99 / 22.97 Natick 77.00 No 1.0 $6,459 14.18 North Reading 86.40 No 1.0 $7,434 16.43 North Andover 86.80 Yes 1.29 $6,738 14.41 / 19.45 Shrewsbury 86.70 No 1.0 $4,483 12.17 Stoneham 88.50 Yes 1.52 $5,297 13.49 / 22.00 Tewksbury 80.90 Yes 1.47 $5,066 16.11 / 26.64 Wakefield 84.10 Yes 1.75 $5,161 12.78 / 26.07 Walpole 86.00 Yes 1.275 $6,405 15.76 / 21.04 Westborough 63.50 No 1.0 $8,134 19.29 Westford 84.80 No 1.5 $7,312 16.60 / 16.83 Wilmington 75.30 Yes 1.75 $5,102 14.24 / 33.04 Winchester 94.60 No 1.0 $10,195 12.66 / 11.91 READING 90.90 No 1.0 $6,576 14.74 ADDITIONAL CLASSIFICATION NOTES The information contained in this handout is intended to provide the Board of Selectmen with the information necessary to conduct a public hearing on the classification options available under Massachusetts General Law. The classification amendment allows the board to consider several options that will be explained further along in this handout. Also, the decision of the board for each of the options must be submitted to the state's Department of Revenue on form LA -5. The options presented for consideration are: • Selection of a Minimum Residential Factor • Selection of a discount for Open Space • Granting of a Residential and / or Small Commercial Exemption Selection of a Residential Factor The Board of Selectmen has the option of selecting a factor of `1' which in effect would adopt a single tax rate for all residential, commercial, industrial and personal property classes instead of shifting some of the tax burden off of the residential class and onto the CIP class. If a factor of '1' were to be adopted, the single tax rate for all classes of property would be $14.71. This rate is determined by dividing the tax levy by the total value of all taxable property in Reading and then multiplying that result by 1000. $3,999,637,753 / $58,829,894 = .01471 x 1000 = $14.71 Chapter 200 In accordance with the provisions of MGL Chapter 200, The Board of Selectmen can choose to split the tax rate by shifting some of the tax burden from the residential class to the CIP classes of property. This results in a lower residential tax rate and a higher rate for the CIP sector. In choosing to split the tax rate, the board must remain cognizant of two important limitations contained within Chapter 200: 1) The residential share of the tax burden cannot fall below 50% of their tax burden prior to shifting, and 2) The CIP sector cannot absorb more than 150% of their tax burden prior to the shift. Historically, Reading has never adopted a split tax rate. S� Selection of a Discount for Open Space: Massachusetts General Law, Chapter 59, section 2A defines class 2 open space as: "land which is not otherwise classified and which is not taxable under provisions of Chapters 61 A or 61 B, or taxable under a permanent conservation restriction, and which land is not held for the production of income but is maintained in an open or natural condition and which contributes significantly to the benefit and enjoyment of the public." A maximum exemption of 25% may be adopted for all property that is classified as Open Space under this definition. The Town has never voted a discount for open space since no properties have been identified which fulfill the requirements of this section. Granting a Residential and /or Small Commercial Exemption: Residential: The Board of Selectmen may adopt a residential exemption for all residential properties in the town that are owner occupied. The exemption amount could be up to 20% of the average assessed value of all eligible properties to be taxed at the residential tax rate, including vacant parcels as part of the total parcel count. Although the thought of granting a residential exemption to owner occupied residential properties appears to be a form of tax relief, it is not the case here in Reading. It is true that some properties would receive tax relief through the adoption of this measure, however, since the tax levy remains the same and the tax shift is only among the residential class, the overall residential tax rate would increase substantially to compensate for this form of tax relief. In our case for FY2015, the residential tax rate would rise from $14.71 to an estimated $17.82 According to the mechanics of this exemption, the tax burden for those owner occupied properties below the break -even point would be decreased. For all other residential properties, the tax burden would significantly increase. This includes all non -owner occupied residential properties and vacant residential land, as well as owner occupied properties above the break -even point since the exemption is deducted after the application of the much higher residential tax rate. Additionally, more assessing staff would be needed to accomplish the implementation and maintenance of this exemption program. The residential exemption had been adopted by only a handful of communities in the Commonwealth including Boston, Cambridge, Chelsea and Brookline and had never been adopted in Reading. In summation, adoption of a residential exemption will significantly raise the residential tax rate while providing a benefit ONLY to those properties below the break -even point. ,�� 9 Commercial: An exemption of up to 10% of the property valuation can be granted to commercial, not industrial or personal, properties that meet the requirements set forth under the law. To qualify, eligible businesses must have occupied the property as of January 1, 2014 and must have had no more than 10 employees as certified by the Department of Employment and Training during the previous calendar year and the building must have a valuation of less than $1,000,000. A business which is just one of several businesses within a commercial building would not be eligible for an exemption unless every business in that property qualified as well. Similar to the residential exemption, the tax levy does not change and the exemption is borne within the commercial class resulting in and overall increase of the CIP tax rate. The assessing department is unaware of any qualifying business properties in Reading. Other Information: The following pages contain some important terms and various forms completed by the Assessor as part of our FY 2015 Tax Rate Recapitulation submission to the State's Department of Revenue. sa) IMPORTANT TERMS TERM DEFINITION The property tax levy is the revenue a community can raise Levy through real and personal property taxes. Levy Limit The maximum amount a community can levy in a given year equal to last year's levy plus 2.5% plus new growth plus debt exclusion / override if applicable. Levy Ceiling Equal to 2.5% of the total full and fair cash value of all taxable real and personal property in the community. New Growth Increase in the tax base due to new construction, parcel subdivisions, condo conversions and property renovations, but not due to revaluation. It is calculated by multiplying the increased assessed value by the prior year's tax rate for the property class. Override A permanent increase to a community's levy limit. Override The difference between the levy ceiling and the levy limit. It is Capacity the maximum amount by which a community may override it levy limit. Debt Exclusion A temporary increase to the levy limit for the payment of a specific debt service item over a specified period of time. Capital Outlay A temporary exclusion for the purpose of raising funds for Expenditure capital projects. Excess Levy The difference between the actual levy and the levy limit. Capacity S�2,0 Page 1 of 2 Send to Printer Status: FORM SUBMIT READING 2015 Jurisdiction juhdg4j c 579 v Fiscal Year 5348 El F—Go Property Type Parcel Class1 Class2 Count Residential Open Space Class3 Commercial Class4 ClassS Industrial Pers Prop 101 6,528 3,030,633,500 (Board of Assessors) (Date) 102 F171-1 T­11326,114, 100 Misc 103,109 15,817,800 Comments: 104 1141,509,700 105 114,858,600 111,125 1110,165,100 130 -132, 106 111,404,100 200 -231 ro —� 300 -393 1284,141,800 400 -452 19,711,300 Ch-61 Land 10 1511 Ch-61A Land 10 0 Ch-61B Land 10 1,139,912 012 -043 27 16,606,018 110 1110,400,082 110 501 16,199,330 502 19,619,760 503 10 504, 550 -552 110,460,940 505 19,317,600 506 1931,400 508 606,200 TOTALS 8,885 3,657,108,918 0 295,682,305 9,711,300 37,135,230 Real and Personal Property Total Value 3,999,637,753 Exempt Value 1280,091,200 Signatures 0 VICTOR SANTANIELLO, Chief Assessor, Reading, 781 -942 -9027 10/15/2014 11:32 AM (Board of Assessors) (Date) Comments: ISubmitted under the authirization of the Board of Assessors. Original signed copies are on file in the department. (Board of Assessors) (Date) Comments: (Board of Assessors) (Date) Comments: (Board of Assessors) (Date) Comments: 1 1 �2A https:Hdlsgateway.dor. state. ma. us / gateway / Private /WebForms /TaxRate/LA4.aspx 10/21/2014 Send to Printer Status : FORM ENTERED READING 2015 Jurisdiction undgi:lj c 579 Y Fiscal Year 5348 v FG7o LA4 VALUES Residential 3,657,108, 918 Open Space lo Commercial 2 95, 662, 305 Industrial 19,711,300 Pers Prop 137,135,230 Total 3,999,637,753 INPUT OPTIONS Estimated Levy 58,829,894 SHIFT PERCENTS Res % 191.4360 O S % 0.0000 Com %17.3927 Ind %10.2428 P P %10.9285 Total %1100.0000 RESIDENTIAL EXEMPTION Total Res Value 3,657,108,916 Avg Res Value 10 SMALL COMMERCIAL EXEMPTION No.Eligible Com 0 Parcels Selected Com 0.0000 Exem% Total C & I Value 305,393,605 minus Exemption Signatures Signatures for LA5 FFCV PERCENTS Res % 191.4360 OS % 0.0000 Com % .3927 Ind % 10.2428 P P %P.9285 Total % 1100. 0000 Resid Factor 1.000000 Selected CIP Shift 1.00000 Single TR 14.71 Res TR 14.71 OS TR Com TR 114.71 Ind TR 14.71 PP TR 14.71 / Total Res Parcel Count lo X Selected Res 0.0000 Exemption % No.Eligible Res 0.0000000 Parcels Page 1 of 3 MRF 95.3169 175% Shift .0000 Chapter 3P.0000 Historic Low % 06.9080 Prior Res % 190.8536 Lowest RF 195.3169 OPEN SPACE DISCOUNT Selected 0 S o.0000 Discount 0 S Factor 1.00000 = Avg Res Value = Residential Exemption = Tot Res Value minus Exempt X Total Value of 0 = Total Value to 0 Eligible Pcls be Exempt (Board of Assessors) (Date) Comments: OD 8Whanr jHdW1rq I hereby attest that notice was given to tax a ers that a public hearing on the issue of adopting the tax leyy percentages for fiscal year 2015 would be held on (date), (time), at (place), by (describe type of notice). ° 22 https:Hdlsgateway.dor. state. ma. us / gateway / Private/ WebFonns ITaxRatelLa5Options.aspx 10/21/2014 Town of Reading inancial Forum Agenda g October 29, 2014 Budgets DRAFT VERSION for 10/9 FINCOM Financial Forum October 29, 2014 FINCOM Opening Remarks - Chair Mark Dockser Financial Updates Review of FY14 Revenues 8 Expenses - Sharon Angstrom Update for FY14 Revenues & Free Cash - Sharon Angstrom Projected FY16 -17 Revenues - Bob Lelacheur Projected FY16 -17 Accommodated Costs - Bob LeLacheur Use of Free Cash In FY16 -17 Budgets - All FYI G-17 Operating Budget guidance - FINCOM FINCOM Closing Remarks — Mark Dockser FINCOM Opening Remarks Mark Dockser, Chair FY16 Budget Public Meetings in 2015 January 7,12,15,22 & 26 School Committee January 13 & 20 Board of Selectmen January 28 Financial Forum (if needed) February 4 School Committee voles budget February 13 Town Manager Budget to FINCOM FINCOM +$150k February 25 Summary & Benefits, Capital, Debt March 4 &11 Town budgets March 18 School & Facilities budgets March 25 Vote Budgets & Warrant Articles FINCOM Opening Remarks - Chair Mark Dockser Financial Updates Review of FY14 Revenues 8 Expenses - Sharon Angstrom Update for FY14 Revenues & Free Cash - Sharon Angstrom Projected FY16 -17 Revenues - Bob Lelacheur Projected FY16 -17 Accommodated Costs - Bob LeLacheur Use of Free Cash In FY16 -17 Budgets - All FYI G-17 Operating Budget guidance - FINCOM FINCOM Closing Remarks — Mark Dockser S'G� FY14 Revenues Sharon Angstrom, Town Accountant Total $1.8 million over estimates Motor Vehicle Excise taxes +$448k Property taxes +$276k Charges for services & permits +$ 93k 'Delinquent taxes, penalties & interest +$351k "Smart Growth Reimbursement +$150k 'FEMA storm reimbursement +$134k `Miscellaneous <$100k each +$378k possibly sustainable + $ 817k 'one -time payments +$1,013k S'G� FY15 Revenues Sharon Angstrom, Town Accountant Revise based on FY14 performance Motor Vehicle Excise taxes FY14 actual $3.35 mil. FY15 budget $3.00 mil. Sept TM revise +$ 48k, Nov TM revise +$100k $3.15 mil. Property taxes - 100% of $276k non - delinquent taxes paid already became part of tax base No revisions needed Charges for svcs & permits FY14 actual $1.57 mil. No revisions needed FY15 budget $1.62 mil. $517k in possibly sustainable now in FY15 forecast Reserves - October 2014 Sharon Angstrom Free Cash 6/30/14 $ 8,531,022 (certified) General Stabilization Fund $ 1,552,950' FINCOM Reserves $ 140,500 TOTAL $ 10.2 million - 12.5% of est $81.7 mil FY16 projected net available revenue FINCOM 5% Minimum Reserves Policy is under consideration *total excludes funds designated for specific purpose s'G21- 2 FY14 Expenditures Sharon Angstrom Total $1.8 million under budget 5 Year Free Cash Analysis Employee Benefits -$307k Snow and Ice -$200k Capital expenses -$121k FINCOM Reserve Fund 93k Beg. Bal. at $721k School Out of District Placements 593k $593k Town Salaries -$329k Various Other Town Accounts 157k $486k s'G21- 2 5 Year Free Cash Analysis (millions) Certified $5.20 $4.95 $5.50 $8.53 $7.58 Beg. Bal. at 7/1 Revenue -.06 1.13 1.03 1.13 1.83 over budget Expenses 1.15 .94 1.05 117 1.85 under budget Use of Free -1.55 -1.48 -1.53 -1.97 -2.93 Cash Other Adj. to .21 -.04 .49 .62 .2 Free Cash Certified $4.95 $6.50 $6.54 $7.58 $8.63 Bal at 6130 s'G21- 2 Stabilization Funds General Stabilization Fund $1,552,950 Smart Growth Stabilization 353,000 Sick Buyback Stabilization 11,628 Stabilization Total $1,917,578 Projected FY16 -17 Revenues Bob LeLacheur, Town Manager FY16 FY17 State Aid $13.6 million $13.9 million +2.5 % +2.5% Guesswork using Prop 2 -1/2 figure Transfers /Available $3.7 million $3.7 million -1.2% +0_2% Continued decrease of Sale of Real Estate per t0yr plan No new sources or significant changes forecast October 1611 discussion with Assessors on Overlay Surplus Projected FY16 -17 Revenues Bob LeLacheur, Town Manager FY16 FY17 Property Taxes $61.1 million $63.0 million +5.3% (bump from excluded debt) +3.3% +3.2% $5001k new growth assumed each year (slight reductions) Local Revenues $ 6.2 million $6.3 million +3.5% +2.1% FY16 recognizes Excise tax increase No new sources or significant changes forecast Projected FY16 -17 Revenues Bob LeLacheur, Town Manager FY16 FY16 FY17 Revenues ($ millions) 80.96 64.56 86.97 new excluded debt impact 1.19 82.15 84.56 86.97 2.9% 2.9% Free Cash used 13 Revenues + Free Cash 83.85 - 7 2.9 S65 3 Projected FY16 -17 Revenues Bob LeLacheur, Town Manager Possible Surprises State Aid - higher OR lower than projected (not sustainable - no local control) New Growth /New Revenues - higher new growth with good planning & development efforts; Reading 2020 ongoing (sustainable - local tax base) Overlay Surplus - extra due to Assessors' negotiations (one -time) RMLD - wishes to reduce or eliminate $2.3 million payment tip Projected FY16 -17 Accommodated Costs Bob LeLacheur Driving Factors National Health Insurance trends projected as +11% to +17% +8% to 11 % core cost +3% to 6% Federal level efforts & programs -) We use +14% (FY16) and +12% (FY17) assumptions 4 Reading Health Insurance Premiums paid FYI 1- FY15 (YTD) School department +20.5% Town government + 4.9% Enterprise Funds + 69% Projected FY16 -17 Accommodated Costs Bob LeLacheur Driving Factors Health Insurance RFP underway Hired Gallagher Benefits Services July 2014 Met with MIIA July 2nd Strategy Sessions with PEC (all School, Town & RMLD unions & Retirees) July 1711: August 71h: September 41h. October 2nd Upcoming significant dates November 14th RFP responses due November 201h PEC meeting to decide GIC option December 1 °' deadline for choosing the GIC for FY16 -18 December 4th PEC meeting to select non -GIC plan SGH u Projected FY16 -17 Accommodated Costs Bob LeLacheur ($ millions) FY15 FY16 FYI Benefits 14.12 15.58 17.05 Capital +Debt 5.53 5.71 5.82 adjust for new Excluded debt 1.19 1.19 Energy 1.90 1.99 2.07 Financial 0.78 0.80 0.82 Out of District SPED 3.86 3.88 4.07 Vocational Education 0.47 0.49 0.52 Miscellaneous 2.93 3.04 3.12 TOTAL 29.59 32.68 34.66 6.2% 6.0% Projected FY16 -17 Accommodated Costs Bob LeLacheur Driving Factors Health Insurance RFP underway Hired Gallagher Benefits Services July 2014 Met with MIIA July 2nd Strategy Sessions with PEC (all School, Town & RMLD unions & Retirees) July 1711: August 71h: September 41h. October 2nd Upcoming significant dates November 14th RFP responses due November 201h PEC meeting to decide GIC option December 1 °' deadline for choosing the GIC for FY16 -18 December 4th PEC meeting to select non -GIC plan SGH u Projected FY16 -17 Accommodated Costs Bob LeLacheur Driving Factors Energy Costs Significant pressures on natural gas prices because pipeline capacity has not kept up with demand in the Northeast FY16 assumes -5% and FY17 assumes +4% - will be updated as needed before the 10/29 Fin'[ Forum, the Town does have some long term contracts in place Out of District Special Education Costs School department evaluating FY15 budget in place - FY14 costs came in significantly below expectations, but the needs of the affected student population is uncertain FY16 assumes +0.4 % versus FY15 and then +5 % in FY17 �� Projected FY16 -17 Operating Budgets Bob LeLacheur ($ millions) Revenues Accom. Costs Remainder add Free Cash Available Operating Budgets FY15 FY16 FY17 80.96 84.56 86.97 29.59 32.68 34.65 51.37 51.88 52.32 1.70 1.70 1.70 53.07 53,58 54.02 =2. ° + .8 71.0 r +0.8% Use $1.7 million Free Cash FY16 -17 n't use any Free Cash FY16 -17 Projected FY16 -17 Operating Budgets Bob LeLacheur ($ millions) FY15 FY16 FY17 Revenues 80.96 84.56 86.97 Accom. Costs 29.59 32.68 34.65 Remainder 51.37 51.88 52.32 add Free Cash 1.70 3.05 4.55 Available 53.07 54.93 56.87 Operating Budgets +3.5% +15% Target +3.50%/. Operating Budgets FY16 -17 Projected FY16 -17 ($ millions) FY16 FYI FY17 Revenues 80.98 84.56 86.97 Accom. Costs 29.59 32.68 34.65 Remainder 51.37 51.88 52.32 add Free Cash 1.70 Available 53.07 51.88 52.32 Operating Budgets =2. ° + .8 n't use any Free Cash FY16 -17 Projected FY16 -17 Operating Budgets Bob LeLacheur ($ millions) FY15 FY16 FY17 Revenues 80.96 84.56 86.97 Accom. Costs 29.59 32.68 34.65 Remainder 51.37 51.88 52.32 add Free Cash 1.70 3.05 4.55 Available 53.07 54.93 56.87 Operating Budgets +3.5% +15% Target +3.50%/. Operating Budgets FY16 -17 1111111111111114, — FY16 -17 Budget Dilemma What Can We Do? Sustainable Revenues +2.9% Accommodated Costs +6.1% - --rimed qrc rangy, r liking Sap o! *1i1! cn > ✓✓✓ FY16 -17 Budget Dilemma Increase Revenues State Aid is the annual revenue wildcard State faces same type of funding gap issue — revenues grow 5% but state aid increases < 2% because of their Accommodated Costs (plus other higher Operating priorities) Forecast of +2.5% is risky ahead of the casino vote Prop 2 -1/2 override "every ten years' (1993, 2003 ...) Town should target the same +10% ($6 mil.) area as last time, today free cash is far superior — but so are the long term planning skills that forecast the need: a higher amount could be phased in over time, Free Cash use to balance budgets could cease; Free Cash could instead be used for one -time needs, such as medium scale capital projects FY16 -17 Budget Dilemma Increase Revenues Assume higher revenues — something good always happens Not always, risk since using high levels of Free Cash One -time revenues good to match with capital in Nov. TM Economic development = new growth = more taxes Reading 2020 - Selectmen & Town department heads engaged in five -year strategic planning efforts — more to follow Note that it takes about $70 million of new development to yield $1 million in property tax revenues (plus one time permit fees) Example: Atlantic Grocery & Johnson Hardware became office, retail & residential spaces — added about $250.000 1year grz FY16 -17 Budget Dilemma Reduce Accommodated Costs Health Insurance — we have limited options according to our independent consultant — this issue is a national problem. As we are in the midst of an RFP and then union negotiations, further comments will be deferred at this time. Every 1 % reduction in projected premiums saves about $100k. Fingers crossed! Decrease Capital /Debt spending — we have discussed this internally over the summer. The Capital Plan is not quite balanced but in 'OK shape. An informal reduction for FY16 -17 to about 4.75% ($200k/yr) would be tolerable, however we would need to rely on mid -year capital spending with Free Cash. S C Ge 2015 Special Town Meeting Monday January 5, 2015 WARRANT OUTLINE REVISED 10/23/2014 Art. Mover/ Moderator # Article Description Sponsor Comment Notes 1 I Reports I Board of Selectmen I ♦ Motion to Table — John Arena 2 Instructions Board of Selectmen ♦ Motion to Table — Marsie West 3 Amend the Capital Board of Selectmen ♦ Motion —John Halsey Improvement Program FY ♦ Presentation —Bob LeLacheur 2015 - FY 2024 ♦ FINCOM report — 4 Amend the FY 2015 Budget FINCOM ♦ Motion — Mark Dockser ♦ Presentation — Bob LeLacheur ♦ FINCOM report — Mark Dockser 5 Set up Permanent Building Bylaw Committee ♦ Motion — Dan Ensminger Committee ♦ Presentation — ♦ Bylaw Committee report — ♦ Finance Committee Report - 6 Revise Town Charter Town Charter Review ♦ Motion - Committee ♦ Presentation — ♦ Bylaw Committee report — 7 Revise Town Charter — Town Charter Review ♦ Motion - Section 2 -3 `Town Meeting Committee ♦ Presentation — Membership' Request ♦ Bylaw Committee report — Special Act 8 Revise Town Charter — Town Charter Review ♦ Motion - Section 2 -5 ` Nomination Committee ♦ Presentation — Procedures' Request Special ♦ Bylaw Committee report — Act 9 Revise Town Charter — Town Charter Review ♦ Motion - Section 8 -10 `Elections' Committee ♦ Presentation — Request Special Act ♦ Bylaw Committee report — 10/23/2014 1 S ' 2015 Special Town Meeting Monday January 5, 2015 WARRANT OUTLINE REVISED 10/23/2014 10/23/2014 5p." PBC Bylaw Draft Revision 2.00 3.3.6 Permanent Building Committee There shall be a Permanent Building Committee (PBC) consisting of five (5) Permanent Members appointed by an Appointment Committee consisting of the Chair of the Board of Selectmen, the Chair of the School Committee and the Town Moderator. The Permanent Members shall be volunteers having practical experience and skills in professions that concentrate on the design, construction, management and financing of commercial / institutional buildings such as architects, engineers (civil, structural, MEP (Mechanical, Electrical, Plumbing)J, building contractors, project managers, property managers, attorneys and building tradespersons. The terms shall be so arranged that as nearly an equal number of terms as possible shall expire each year. The Permanent Building Committee (PBC) shall be responsible for the oversight and management of all major municipal and school building design studies and construction projects whose aggregate costs are expected to exceed two million dollars ($2,000,000). The PBC shall present all such projects to the Finance Committee for consideration of funding options and shall sponsor and present all such projects to Town Meeting for its consideration and approval of funding. The Permanent Building Committee shall work with the School Committee, the Board of Selectmen, and any other Board or Committee which proposes building or renovation projects (the Sponsoring Agency). When a Sponsoring Agency requests the commencement of a building project to the PBC, a < proiect name> Buildina Committee shall be formed consisting of the five (5) members of the PBC and include up to two (2) additional members appointed by the Sponsoring Agency. The membership of the <_ proiect name> Buildina Committee may change to satisfy the participant requirements of a co- involved government authority. Each <proiect name> Building Committee so formed shall have the duties and responsibilities of the Permanent Building Committee as defined in this Bylaw but only for its specific project. The Sponsoring Agency shall notify the Permanent Building Committee of their intention to undertake any such projects within seven (7) calendar days of a positive vote or general affirmation to do so. The Permanent Building Committee shall work with the Director of Facilities to compile an inventory of the physical condition and anticipated repairs and renovations of all existing municipal buildings and will summarize their findings in a bi- annual report to Town Meeting. General Bylaw — Date TBD 0� OF FF fgOi yc a Office of the Town Manager 781 - 942 -9043 16 Lowell Street townmanager@ci.reading.ma.us 6J9'fHCORP0RP Reading, MA 01867 www.readingma.gov /town - manager To: Reading Residents, Businesses and Interested Parties From: Robert W. LeLacheur, Jr. CFA Date: October 23, 2014 RE: Charter Committee Information Session On Monday, October 27, 2014 the Charter Committee invites everyone to attend a meeting at 7:30pm at the Coolidge Middle School Multipurpose Room (89 Birch Meadow Drive). Over one year ago Moderator Alan Foulds, upon the Instruction of Town Meeting, formed a Charter Committee whose purpose was to simplify, clarify and modernize the Reading Home Rule Charter, first created over twenty -five years ago. The Committee is composed of all Town Meeting members that volunteered for this project, listed below. The Charter Committee has held several public meetings to discuss and debate what changes would be beneficial to make at this time. They held one well- advertised and attended Information Session nearer to the beginning of their work, and received significant feedback that formed the basis for many suggested changes. Next Monday they are offering the public one last chance to review the proposed changes before the Committee votes on the final results. A Special Town Meeting will be called by the Board of Selectman to meet on Monday, January 5, 2015 (and continue on Tuesday and Wednesday as needed) that will discuss these changes. There will be a total of five Articles presented. The first Article is the bulk of the suggested changes, and if approved by Town Meeting they will then be presented to the Reading voters at the April 2015 local election for final approval. The remaining four Articles concern certain suggested election changes, and if approved by Town Meeting would then be sent to the State Legislature for approval. For further information, please review the work by the Committee at http://www.readingma.gov/ad- hoc- committees /pages /charter- review - committee. Note that the links titled Current Draft Version (voted changes shown) and Current Draft Version (clean copy shown) contain all the information that will be discussed on Monday night. If you have any questions or comments, please feel free to send those along to me at the email address shown above, and I will be glad to pass them to the Charter Committee. We look forward to seeing you! Sent on behalf of the Charter Committee, Alan Foulds, non - voting Chair William Brown Precinct 8 Janice Jones Prct 5 Jeffrey Struble Prct 7 John Carpenter Prct 7 Philip Pacino Prct 5 Paul Sylvester Prct 3 Richard Coco Prct 4 Philip Rushworth Prct 5 Carolyn Whiting Prct 7 Stephen Crook Prct 2 Margaret Russell Prct 3 Glen Hartzler Prct 4 John Segalla Prct 7 s�K a r �} Y Bbl; �11CAN *' R Town of Reading Meeting Minutes Board - Committee - Commission - Council: Board of Selectmen Date: 2014 -10 -14 Building: Pleasant Street Senior Center Address: 49 Pleasant Street Purpose: General Business Attendees: Members - Present: Time: 7:00 PM Location: Great Room Chairman John Arena, Vice Chairman Marsie West, Secretary Daniel Ensminger, John Halsey and Kevin Sexton Members - Not Present: Others Present: Town Manager Robert LeLacheur, Police Chief James Cormier, Town Accountant Sharon Angstrom, Office Manager Paula Schena, Anne Marie and Paul Gooley, Tom and Jan Jones, Joan Rohracker, Jaon Mahoney, Kathy Greenfield, Frank Coccoluto, Robert and Kelly Corwin Minutes Respectfully Submitted By: Secretary Daniel Ensminger Topics of Discussion: Reports and Comments Selectmen's Liaison Reports and Comments - Marsie West noted that the Measuring Committee did meet and they are working on the list of services. John Halsey noted that he attended a Board of health meeting and strategic planning. They are looking back on tobacco 21 and urging other towns to do the same. They received information on ticks and the information will be posted on the website. The Recreation Committee invited him to participate in updating the Birch Meadow Plan. The Recreation Committee also invited him to look at an indoor facility that hosts lacrosse in Wilmington and he will pass the information along to the Board. RCASA is hosting an Opiate Forum on October 23. Town Manager's Report - The Town Manager noted that the Finance Committee met and took a two year look at 2% each year. There will be further information at the Financial Forum. The Board of Assessors wants to know if the Selectmen want to do a preview of the tax classification on October 28th and the hearing on November 18 or just do the hearing on October 28th. They should be able to get the information to the Board on October 23rd to hold the hearing on October 28th. The consensus of the Board was to hold the hearing on October 28th if the material is ready by October 23rd Personnel and Appointments Badge Pinning - Police Chief James Cormier noted these are newly hired and promoted officers as of July 1, 2014. There are eight badge pinnings this evening for two new officers and six promotions. He reviewed each of their credentials. Page 1 1 (Pa.,, l Board of Selectmen Minutes - October 14, 2014 - Daoe 2 Officer Kaylen Gooley was pinned by her parents; Officer Matthew Orr was pinned by his wife; Sgt. Corey Santasky was pinned by his wife; Sgt. Christine Amendola was pinned by her husband; Sgt. Patrick Silva was pinned by his wife and daughter; Sgt. Christopher Jones was pinned by his wife; Lt. David Clark was pinned by his sons and Lt. Richard Abate was pinned by his daughters. Chairman John Arena thanked everyone for being present and indicated he was very impressed with the credentials of the officers. He commented on how fortunate the Town is to be able to hire officers who are the "cream of the crop" because we are no longer part of Civil Service. Conservation Commission - Daniel Ensminger noted that the Volunteer Appointment Subcommittee met and interviewed Rebecca Longley for a position on the Conservation Commission. She is a former member of the Commission. A motion by Ensminger seconded by West that the Board of Selectmen confirm the Volunteer Appointment Subcommittee's recommendation to appoint Rebecca Longlev to a position on the Conservation Commission with a term expiring June 30, 2017 was approved by a vote of 5 -0 -0. Recreation Committee - Daniel Ensminger noted that Mary Ellen Stolecki is stepping down to an Associate position creating the vacancy that exists. The vacancy has been posted. The Volunteer Appointment Subcommittee interviewed Daniel Foley for a full membership position on the Recreation Committee. A motion by Ensminger seconded by West that the Board of Selectmen confirm the Volunteer Appointment Subcommittee's recommendation to appoint Daniel Foley to a position on the Recreation Committee with a term expiring June 30, 2015 was approved by a vote of 5 -0 -0. A motion by Ensminger seconded by West that the Board of Selectmen confirm the Volunteer Appointment Subcommittee's recommendation to appoint Mary Ellen Stolecki to an Associate position on the Recreation Committee with a term expiring June 30, 2015 was approved by a vote of 5 -0 -0. Discussion /Action Items Ricky's Liquor License Suspension - The Town Manager noted that Ricky's liquor appealed their suspension to the ABCC last week and this was placed on the agenda as a place holder should the Board of Selectmen need to take additional action. As of this moment, the Town has not received a decision from the ABCC so no action is needed this evening. Town Accountant Report - Town Accountant Sharon Angstrom was present to discuss the issue regarding the sale of RMLD trucks to an RMLD employee. She noted that a timeline of events is in tonight's handout and also attached to these minutes. It took a couple of weeks to receive some of the information. She noted the transaction has been reversed. RMLD General Manager Coleen O'Brien and Julie Parenteau were present. Ms. O'Brien noted that the previous policy was over 20 years old and needed to be updated. All policies are in the process of being updated. She understands that the Town and Schools will also update their policies and she would be interested in seeing those when they are done. She noted that the RMLD policies are available on the website though there seemed to be some confusion as to where they could be found on the website. Ms. O'Brien noted that the RMLD core mission is reliability and they are in the 95th percentile. She noted that 80% of the budget is power supply. They are undergoing a comprehensive organizational study and looking at succession planning. They are developing a 20 year strategic plan. 4P Page 1 2 Board of Selectmen Minutes - October 14 2014 - page 3 John Arena noted that he looks forward toward a continued collaborative relationship. He noted the dialogue should be collegial but it hasn't always been. He noted this issue is out of the hands of the Board of Selectmen and he is confident that the Finance Committee will do a good job. Ms. O'Brien noted that she is coming in to talk with the Selectmen on November 18th about the LED lighting, tree trimming and charging stations. Daniel Ensminger noted that he would like to see her Board on a face to face basis. John Arena suggested a dedicated meeting to talk about what is possible. On another note, Town Accountant Sharon Angstrom noted an anonymous letter was received regarding a DPW employee who purchased a DPW Town truck a while back. It was a 1976 Chevy Dump Truck and $2195 was the high bid. The comparable range from $700 - $3300 depending on condition. The truck was in terrible condition and sold for parts. The truck is not comparable to what was given but she hasn't had the chance to review it yet. She recommends that in the future the Town get a value before going out to bid. The Town also needs a policy to help employees not make any mistakes about a conflict of interest. John Halsey asked if we can require a phone call to the Ethics Commission to see if the employee is allowed to bid and Ms. Angstrom noted she will check with the Town Clerk. She also noted that he was supposed to notify the Town Clerk but he didn't. Marsie West noted that the vehicle needs to be advertised long enough (longer than one day) and to the right audience. Ms. Angstrom noted that this-vehicle was advertised in many locations and we received multiple bids. John Halsey suggested putting a reserve clause on the auction and if the reserve is not met then go to the high bidder and see if we can get fair value. The Board thanked Ms. Angstrom for her work on this. Discuss Fees and Collection Policies - Ms. Angstrom reviewed the fee analysis and noted that she is only showing the fees that need to change. The Fire Department proposed fee increases include the fire alarm permit fee increasing from $15 to $25; the flammable storage from $10 to $25; day care inspections from $0 to $25; gun powder storage from $15 to $25; single family smoke detector from $25 to $50; two family smoke detector from $50 to $100; miscellaneous permit from $15 to $25 and the sprinkler permit from $15 to $25. Ms. Angstrom noted that these are not a source of big revenue. The proposed fee increases for Community Services permits include residential plumbing 1 fixture from $22 to $45; commercial plumbing 1 fixture from $55 to $100; residential gas 1 fixture from $22 to $45; commercial gas 1 fixture from $55 to $75; residential plumbing and gas up to 3 fixtures from $22 to $45; electrical 1 - 10 outlets from $22 to $25. There seems to be a problem with the $22 amount in View Permit so the request is to increase to $25. The proposed fee increase for street opening /occupancy permits includes increasing all of the street opening permits to $50. The sewer permits all require the same effort so the proposal is to increase from $75 to $100. The water fees are low and should be increased to cover the cost of the actual parts being replaced. This would include increasing the 3 /4" valve replacement from $30 to $75 and the 1" valve replacement from $30 to $100. The meter test increase from $15 to $50 - we do a lot of these at the request of the homeowner and very seldom is there a problem with the meter. Hydrant test flow from $0 to $75 plus cost of ad; and the tapping fee for a new house from $0 to $250. The proposal for connecting the storm water to the Town's drainage from $0 to $75. Other Engineering proposals include plan scans from $0 to $5 and soil test witness /inspection from $0 to $25. Page 1 3 60/3 Board of Selectmen Minutes - October 14, 2014 - Daae 4 For late fees on dog licenses the proposal is to keep the fee at $10 or $20 plus the $50 bylaw violation on May 1 and then lien against the tax bill in a timeframe as prescribed by law including a $75 recording fee and $75 release fee. If the dog owner is not the property owner the matter would go to court as it currently does. John Arena asked what the timeframe is for this and Ms. Angstrom indicated nine months to one year. John Halsey noted this is not only a fee reduction but a recovery process and he likes this because it is practical. The Town Manager noted this also simplifies the workload. Mary Ellen O'Neill asked what happens if a dog passes. Town Clerk Laura Gemme noted that if the dog passes in the year issued then it will be voided for that year. She noted that the biggest problem is that people return the form but don't put their name on it. Compost Sticker /Depot Parking - The Town Manager noted that the MBTA charges $4 per day which works out to be $983 per space per year or $70,000 for 71 spaces. The Town of Reading collects $80,000 per year for 545 spaces. Most people don't know that the Town pays $536,000 per year to the MBTA for costs and that comes out of State aid. He suggests splitting the Compost Center /Depot parking fees. The Town can pay our trash contractor to pick up more leaves for approximately $25,000 per year. It costs $40,000 per year to run the Compost Center. The community would need a lot of lead time of at least one year to make this change. Marsie West noted that she parks at the depot every day and the cost is too low - $.10 per day. Vote Subsequent Town Meeting Warrant Articles - Regarding Article 6 the Town Manager noted that the owner of Stop and Shop is a Dutch company and they are not interested in acting on this issue. They are actually thrilled that we are doing this and this gives the Town the ability to put a bus shelter there. Article 8 are zoning changes to be made over four Town Meetings. Marsie West noted that the ones in November are core articles. The Town Manager noted that every Town Meeting Member will get a large handout to read in advance. We will start Articles 7 and 8 on the second night of Town Meeting. Robert Corwin, 199 Summer Avenue and member of the 01867 Neighborhood Preservation Group spoke regarding Article 9. He noted that there are over 500 lawn signs throughout Town and 900 residents signed petitions. They are asking the Board of Selectmen to support sending Article 9 to Town Meeting. John Arena noted that 22 houses responded and 2 did not. He asked about the relationship between 01867 and the sponsor or the Article the West Street .Historic District Commission. Daniel Ensminger asked for the rationale of not going all the way down Summer Avenue. Kathy Greenfield noted that decision was up to the West Street Historic District Commission to create the boundaries and she knows that they wanted to capture Wisteria Lodge. Daniel Ensminger asked if the West Street Historic District Commission noticed the homes and Kathy Greenfield indicated they did. John Halsey noted that there was no one from the West Street Historical District Commission here this evening. He noted they are having a public hearing on October 27tH He would love the see the house preserved but can't vote to support an Article that the Selectmen do not sponsor. He can't vote until he hears from the West Street Historic District Commission and the public. 4,-,q Page 1 4 Board of Selectmen Minutes - October 14, 2014 - page 5 John Arena asked how many homes are involved and Kathy Greenfield indicated there are 25 parcels and 23 owners. John Arena noted he is surprised that the West Street Historic District Commission is not here tonight. John Arena noted there are legal letters in tonight's packet regarding Article 9. The Town Manager noted that the first letter is from August from Criterion and the second letter is from the 01867 Attorney. Town Counsel agrees with the 01867 Attorney. If he didn't agree, it wouldn't be on the Warrant. The Town Manager noted that he spoke with Everett Blodgett, the Chairman of the West Street Historic District Commission today. He asked Mr. Blodgett if anyone objected and Mr. Blodgett indicated that one person objected in writing. Mr. Blodgett requested that the Board of Selectmen not support this Article because they are not sponsoring it. John Halsey noted he would rather wait and hear what everyone has to say. The Town Manager noted that the Selectmen will be posted for October 27, and there will be a place holder on the 10/28 Selectmen's agenda for this and take no official action tonight. Article 10 - Daniel Ensminger asked if there was any safety evidence regarding this article. The Town Manager noted that there is no proven evidence and page 50 of tonight's handout shows how many areas of Town could be affected by this article. John Arena noted this is what he meant about unintended consequences. The proponent said there were only two or three affected by this and the Board of Selectmen acted in haste. That is a long list on page 50. He can't support this Article. John Halsey noted that he feels the same as John Arena and believed the process was flawed. This Article is tied to the testimony of one complainant and this applies to thousands of acres. People can hunt with bow and arrow and only firearms allowed by law and those firearms do not shoot two miles. He noted that the Board heard from one person who proposes the change the law without due process. He suggests tabling the Article. Daniel Ensminger noted this is like chasing a ghost and he read Section 70 of the Mass General Law that restricts the use of weapons. Marsie West indicated after seeing this long list of properties that would be affected she cannot support this Article. She was originally in favor of putting this on the Warrant but is not supporting until due process is done. The Town Manager noted that the Article could be indefinitely postponed or tabled. Town Meeting will be looking for an explanation. John Halsey and Kevin Sexton indicated they would help with the write up of the background. A motion by Ensminger seconded by West that the Board of Selectmen recommend the subiect matter of Article 3 of the 2014 Subsequent Town Meeting Warrant was approved by a vote of 5 -0 -0. A motion by Ensminger seconded by West that the Board of Selectmen recommend the subiect matter of Article 5 of the 2014 Subseguent Town Meeting Warrant was approved by a vote of 5 -0 -0. I ov Page 1 5 Board of Selectmen Minutes - October 14 2014 - page 6 A motion by Ensminaer seconded by West that the Board of Selectmen recommend the subiect matter of Article 6 of the 2014 Subsequent Town Meeting Warrant was approved by a vote of 0 -5 -0. A motion by Ensminger seconded by West that the Board of Selectmen recommend the subiect matter of Article 8 of the 2014 Subseauent Town Meeting Warrant was approved by a vote of 5 -0 -0. A motion by Ensminger seconded by West that the Board of Selectmen recommend the subiect matter of Article 10 of the 2014 Subseauent Town Meeting Warrant failed by a vote of 5 -0 -0. A motion by Ensminger seconded by West that the Board of Selectmen move to indefinitely postpone Article 10 of the 2014 Subseauent Town Meetina Warrant was approved by a vote of 5 -0 -0 Town Manager Evaluation - Daniel Ensminger noted that he took 31 goals and numerous objectives and used a four number ranking system - #1 is n /a; #2 is not met; #3 is met; and #4 is exceeds. John Arena noted that composite #1 is the most significant goal and he exceeds in the succession planning and back up to eliminate the single point of failure. Number 19 commends Community Services and the Town Manager in working with the state to shape 40B developments. The Town Manager also stepped in when the Library Building Project was going astray. John Halsey indicated he found that since he was a newly appointed Selectmen and didn't have the experience that the other Selectmen had he found this a difficult task. Kevin Sexton noted that he was not able to fill out his portion due to personal commitments but he feels the same as John Halsey because he is new too. He noted that the Town Manager took the ball and ran with it. Reorganization was a big factor and tough in the first year. He is juggling a lot and the Board of Selectmen want everything done right away. He feels the Town Manager exceeds expectations in key areas. Marsie West noted that so many goals were met and very few didn't get done. She feels he is moving in the right direction. John Arena noted that the Town Manager is willing to hear critical feedback and he runs with it. He understands and meets goals and is a real success story. The Town Manager thanked the Board for their honesty. He noted that the Charter Committee suggests the Town Manager not being the Ombudsman. He also feels his review should extend beyond goals i.e. just because a goal was accomplished doesn't mean it was done well. Approval of Minutes A motion by Ensminger seconded by West to approve the minutes of September 10, 2014 was approved by a vote of 5 -0 -0. A motion by Ensminger seconded by West to approve the minutes of September 23, 2014 as amended was approved by a vote of 5 -0 -0. A motion by Ensminger seconded by West to approve the minutes of September 29, 2014 was approved by a vote of 4 -0 -1 with Arena abstaining. A motion by Ensminger seconded by Arena to ao into Executive Session to consider the purchase, exchange, lease or value of real property and to discuss rn Page 1 6 "� �� Board of Selectmen Minutes - October 14, 2014 - page 7 strateov with respect to litigation and that the Chairman declares that an Open Meeting may have a detrimental effect on the negotiating position of the body and not to reconvene in Open Session was approved on a roll call vote with all five voting in the affirmative. Respectfully submitted, Secretary Page 1 7 b pJ-7 r N + Town of Reading Meeting Minutes Board - Committee - Commission - Council: Board of Selectmen Date: 2014 -10 -20 Building: School - Memorial High Address: 49 Pleasant Street Purpose: Litigation & Real Estate Attendees: Members - Present: Time: 7:00 PM Location: Superintendent Conference Room Vice Chairman Marsie West (acting Chair), Secretary Daniel Ensminger, Selectmen John Halsey and Kevin Sexton. Members - Not Present: Chairman John Arena Others Present: Town Manager Bob LeLacheur, Police Chief Jim Cormier, Town Counsel Ray Miyares Minutes Respectfully Submitted By: Secretary Daniel Ensminger Topics of Discussion: Ricky's Liquors license suspension Town Counsel Miyares explained the decision by the ABCC, received late on Friday afternoon, to uphold the 90 -day license suspension but to request that it be split into 50 days immediate and 40 days held in abeyance for two years, to be rescinded if no other license violations occur during that time frame. He was quite pleased that the ABCC had taken the offense very seriously by upholding the suspension, which as far as he knew was unprecedented in the state. Mr. Ensminger asked that if another violation happened whether the new penalty would be 40 days, and Mr. Miyares replied that a new Hearing would need to be held, and the Board was free to make a decision at that time on the merits of the circumstances, but 40 days would be additional to a new penalty. Mr. Miyares stated that when Ricky's went to court to seek a stay of the license suspension, that request was denied by a judge. He believes that fact had some influence over the ABCC decision. The ABCC worked quickly to render a decision. He stated that if the Board had not been able to meet tonight, or if they do not agree with the ABCC suggestion, then Ricky's liquors would have a much greater chance of success at getting a stay from a court this week. Mr. Ensminger spoke about the Board revisiting their guidelines to ensure that flexibility for different circumstances is made very clear, and Mr. Miyares said that the ABCC did recognize their current guidelines did have such a disclaimer that allowed flexibility, but that it was a reasonable idea for the Board to examine those guidelines in light of these recent events. Mr. Cormier asked that both the Police department and RCASA be involved in any such discussion about liquor policy guidelines, and Mr. Halsey agreed. (, b 1 Page 1 1 Board of Selectmen Minutes - October 20, 2014 - page 2 Mr. Halsey said that it was clear that the Board's message had been delivered with the length of the suspension. To speak for himself, it was never his intent to ruin a business, but it seemed as if the Board did not get their full attention the first time around as another violation happened so quickly. Other Board members agreed with that assessment. Mr. Miyares said he pointed out to the judge deciding the original request to stay the suspension that the business had no other employees, and aside from rent paid suffered no real economic loss. Mr. Ensminger asked if the ABCC decision was binding, and Mr. Miyares said that it was not - merely a suggestion, but one the Board should take seriously. Mr. Cormier said that the 50 + 40 day suspension was historic, and the Board should be very pleased with the strength of the message delivered to the entire community. Mr. Miyares noted that the ABCC cited three violations, and under current Selectman's policy the fourth violation includes the possibility of license revocation. Ms. West thanked Town Counsel and the Police department for a job well done. Mr. Ensminger moved that the Board of Selectmen accent the recommendation of the ABCC dated October 17, 2014, and vote to amend its prior vote so as to suspend the liauor license for Jay & Ricky, Inc. DBA Ricky's Liquor for a period of ninety (90) days, with fifty (50) days to be served /closed, and forty (40) days to be held in abeyance for a period of two (2) years provided no further violations of Chapter 138, Local Board, or Commission Regulations occur. The fifty (50) day period shall begin on September 3, 2014 and expire on October 23, 2014. The licensee did not appeal a four (4) day suspension imposed earlier this year, so the four (4) day suspension will be served as voted on September 2, 2014, to begin at the end of the current suspension period, beginning October 23, 2014, and ending on October27, 2014, seconded by Mr. Sexton, and approved by a 4 -0 -0 vote. The liquor license shall be available at Town Hall in the Town Manager's Office between 8:00am and 5pm on Monday, October 27tH Mr. Sexton moved to adiourn at 7:25pm, seconded by Mr. Halsey, and passed by a 4 -0 -0 vote. Respectfully submitted, Secretary Page 1 2 �a s� Schena, Paula From: willfinch @juno.com Sent: Thursday, October 09, 2014 9:59 AM To: Tirone, Charles; Schena, Paula Cc: Gemme, Laura; James.Maughan @CH2M.com; brian.sullivan2000 @live.com; aev49 @wildcats.unh.edu; annika_scanlon @gmail.com; Gentile, Ann; Terence Selle Subject: Cons Com Position Effective immediately I am resigning from my position on the Conservation Commission. It has been a good two years but commitments at work and home have made this move necessary. Respectfully submitted, Will Finch 0W'ivWUw.1 Ya4ue4v 30 HavevStreet, #2008 Rea dZvt,� M 018 6 7 781-944-7087 L-/ C- !3 is October 14, 2014 Board of Selectmen Town of Reading 16 Lowell Street Reading, Massachusetts 01867 Dear Selectmen, I am writing in order to resign as a member of the Council on Aging, Town of Reading. A family medical crisis prompts my resignation. The Council of Aging provides vital services and programs to the senior residents of the Town of Reading. The Council is also responsible for fun, food and laughter among seniors. Thank you for the opportunity to serve the seniors in our community as an advocate and volunteer. Cordially, Christine Hansen a v► 0 a- 0 N E10 CYLriWi! net Ya+e-w 30 Uave vStreet, #2008 Rea "i, , M 0186 7 781 -944 -7087 4G 3r,S October 14, 2014 Board of Selectmen Town of Reading 16 Lowell Street Reading, Massachusetts 01867 Dear Selectmen, I am writing in order to resign as a member of the Human Relations Advisory Committee, Town of Reading. A family medical crisis prompts my resignation. Thank you for the opportunity to serve our community as a human rights advocate and volunteer. Cordially, Aweiczc Christine Hansen .a T r v 0 a O N q C/ r Town of Reading Meeting Minutes e3s.�MCOa� Board - Committee - Commission - Council: Board of Selectmen Date: 2014 -10 -14 Building: Pleasant Street Senior Center Address: 49 Pleasant Street Purpose: Litigation & Real Estate Attendees: Members - Present: Time: PM Location: Great Room Chairman John Arena, Vice Chairman Marsie West, Secretary Daniel Ensminger, Selectmen John Halsey and Kevin Sexton. Members - Not Present: Others Present: Town Manager Bob LeLacheur Minutes Respectfully Submitted By: Secretary Daniel Ensminger Topics of Discussion: Executive Session Recently attorney Donna Brewer ( Miyares and Harrington) along with Community Development Administrator Jessie Wilson met in Executive Session with the Zoning Board of Appeals to discuss the Kevin Fulgoni v. Town of Reading Zoning Board of Appeals case, originally filed in 2006. Mr. LeLacheur reviewed the legal brief prepared for the Selectmen by attorneys Ray Miyares and Donna Brewer, which described the history and current status of the case. Town Counsel has negotiated a two -part settlement offer. The first part to be discussed tonight is a $20,000 payment; the second part is a zoning change brought to November 2014 Subsequent Town Meeting which would allow the lot in question to be classified as buildable for the purposes of a single - family house. Absent this settlement, the Town had lost a judgment due to the fact previous Town Counsel did not appear at a Hearing - a strategic decision described as made in conjunction with a previous Town administration. A judge was due to rule on damages in October 2014 - Town Counsel estimated this could be deep into six figures as it would represent years of legal costs as well as the value of a land taking dating back to 1966, plus 12% interest. The Zoning Board of Appeals, the Town Manager and Town Counsel urged the Board to consider the $20,000 cash payment as the first part of the settlement. Mr. LeLacheur said that since the settlement was less than $25,000 it did not require Town Meeting approval, and therefore such a payment could come from the Town's FY15 legal budget. Mr. Ensminger moved to approve the proposed $20,000 legal settlement in the Kevin Fulgoni versus the Town of Reading Zonina Board of Appeals CA #09 -03499 in Middlesex Superior Court, seconded by Mr. Sexton and passed by a 5 -0 -0 role call vote: Arena - yes; West - yes; Ensminger - yes; Halsey - yes; Sexton - yes. Page 1 1 ��� Board of Selectmen Executive Session Minutes - October 14, 2014 - page 2 Mr. LeLacheur spent some time reviewing three Real Estate situations that did not require any action by the Board. Reading Ice Skating Arena area Mr. LeLacheur described a meeting held with Ms. Delios and Salvatore Lupoli, the owner of Sal's Pizza as well as other related restaurants, and also a significant real estate developer. Initially Mr. Lupoli expressed interest in the Post Office location, but was very excited to hear about the possible Recreation expansion project over near the skating rink. In fact he is engaged presently in a mini - Patriots place type of project in a community north of Boston. He expressed strong interest to be included in these discussions. Mr. Halsey described a recent trip to North Reading's Ipswich River Park and the similarities for a very successful project off Symonds Way. He described a field trip where Recreation Administrator John Feudo, Community Development Administrator Jessie Wilson and the Town Manager joined him to visit a nearby indoor arena. The Board enthusiastically discussed many options to be considered in the area - one that is ideal because of the low neighborhood impact. Mr. LeLacheur will set up a meeting with the Zanni family, owners of some parcels contiguous to the land that the skating rink resides on. If land acquisition proves to be a real possibility, he will also approach the nearby Gun Club to see if they have interest in selling surplus land. Post Office Mr. LeLacheur reported that he and Assistant Town Manager Jean Delios met with Jim Cronin, Senior Vice President of Operations and Asset Management of The Bulfinch Companies. His firm has developed over 20 Post Office locations around the country, and Jim is a Reading resident. The meeting was a follow up to a previous informal discussion between Mr. LeLacheur and Mr. Cronin. A Mr. Schlager joined the meeting via conference call. Bulfinch is highly interested in developing the property, and Ms. Delios described the Smart Growth zoning in place for the area. Ideally mixed use would result, with residential on the top floors and retail on the lower floors. The group explored many options as Bulfinch had already mapped out possible projects. Mr. LeLacheur said that he would contact the Masons to see if that contiguous property could be added into the discussion. That would most easily allow the concept of a community theater to be added to the project. Otherwise Bulfinch is in touch with an upscale grocery store that has interest in the location, although deliveries in the tight space and traffic might be a concern. Mr. LeLacheur reported that he and Ms. Delios have a pending meeting with Bob Crockett, Chair of the Mason's Board of Directors. The Board heard the idea and endorsed pursuing further information. Most likely, the Post Office and Mason's building would be demolished and replaced completely. Bulfinch described a variety of historic preservation and commemoration efforts done in similar projects. Reading Cooperative Bank building on Haven Street Mr. LeLacheur described a series of meeting with bank president Julie Thurlow and staff held over recent weeks. The Board of Directors after two meetings has allowed Ms. Thurlow to pursue any financial arrangement that the Town wishes to engage in. This would range from leasing the second floor to buying the entire building and all associated parking spaces - including a lot to the rear of the Post Office that could greatly enhance a project there. g G/Z Page 1 2 Board of Selectmen Executive Session Minutes - October 14, 2014 - page 3 In previous discussions, School Committee Chair Chris Caruso and Vice Chair Chuck Robinson, as well as Superintendent Dr. John Doherty, expressed an interest in the second floor in order to relocate the Central Office out of the High School. This would be the first step in solving the full -day Kindergarten and expanded RISE preschool program as the latter could expand at the current location, and free up some classrooms in elementary schools to be used for Kindergarten. Mr. LeLacheur described the primary financial considerations and said that the best case deal to purchase all bank assets mentioned would combine some one -time cash on hand (for example from the Sale of Real Estate fund) with debt such that there was no significant cash flow impact on the budget. The bank then would desire to sign one or two very long term leases. Once the debt was repaid in 15 or so years, there would be an expected positive revenue source to the Town from lease payments net of maintenance costs. Mr. LeLacheur also reported very positive results from Kelly Colon, Director of Facilities and Joe Huggins, Assistant DPW Director. They jointly conducted two exhaustive building inspections along with Reading Cooperative senior staff. The systems are in very good shape, and have been maintained well. Mr. LeLacheur reported that next steps were the bank was considering what leasehold improvements they would be interested in, as in general they preferred to exit the facilities maintenance business. He also reported that he had received some informal estimates of commercial value but expected to require professional services in this regard. Mr. Arena moved to adiourn at 11.10um, seconded by Mr. Halsey, and uassed by a 5 -0 -0 role call vote: Arena - yes; West - yes; Ensminaer -yes: Halsey - yes; Sexton - ves. Respectfully submitted, Secretary Page 1 3 1MfLV