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Home My WebLink About2015-03-04 Finance Committee PacketTown of Reading Meeting Posting with Agenda Board - Committee - Commission - Council: Finance Committee Date: 2015 -03 -04 Time: 7:00 PM Building: Pleasant Street Senior Center Location: Great Room Address: 49 Pleasant Street Purpose: FY16 Budget Meeting Meeting Called By: Caitlin Saunders on behalf of Chairman Mark Dockser kECEIVED f OWN CLERK ADING. Mr1SS. ZQII MAR -2 A 9* 3b 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) Introduce new FINCOM member (Dockser) b) FY16 Budget meeting schedule (Dockser) c) FY16 Budget overview (LeLacheur) Benefits, Capital, Debt (LeLacheur) Public Services (Delios) Administrative Services (LeLacheur) Finance (Angstrom) Public Safety ICormier & Burns) Public Works (Zager) Public Library (Urell & Trustees) Enterprise Funds (LeLacheur) 2) Approval of Minutes a) January 14, 2015 b) January 21, 2015 O This Agenda has been prepared In advance and represents a listing of topics that the chair reasonably anticipates wIQ be discussed at the meetino. However the agenda does not necessarily include all matters which may be taken uo at this meetino. OFR iy a � r r C b PO,�•'9rhKOR��O Office of the Town Clerk 781- 942 -9050 Town -of Reading 16 Lowell Street Reading MA 01867 tKCEI�: M FOWN CLERK L)WING. MASS, 205 JAN 13 P b: 0:14 fax: 781- 942 -9070 website: www.readingma.gov Application for Appointment to Boards. Committees and Commissions Name: 1 V-gr4d 0 Vowas4 _T (Last) (First) (Middle) Address: 7 6Dreo / , S. , gee, �!��, ,n �4 Phone (Home): Phone (Work): ' Date: J / l3L %!E: Which number should be listed? _ A/�Z Occupation: Ake6 � *Coclate ^r- Rvpe anJ Cr-rtl Number of years in Reading: .5— Are you a registered voter in Reading? E -mail address: (14nrs -rim RIV4rg1110 9 140 -.41.. Place a number next to your preferred position(s) (up to four choices) with number 1 being your first priority. (Please attach a resume if available) Animal Control Appeals Committee Audit Committee Board of Appeals Board of Cemetery Trustees Board of Health - Board of Registrars Bylaw Committee Celebration Committee Cities for Climate Protection Commissioner of Trust Funds Community Planning & Development Conservation Commission Constable Contributory Retirement Board Council on Aging Cultural Council Custodian of Soldiers' & Sallors' Graves Please outline relevant experience for the position(s) sought: Economic Development Committee Finance Committee Historical : Commission Housing Authority Human.Relations Advisory Committee MBTA Advisory . Committee Metropolitan Area Planning Council Mystic Valley Eider Services RCN Board of Directors Recreation Committee RMLD Citizens Advisory Board Telecommunications and Technology Advisory Committee Town Forest Committee Trails Committee West Street Historic District Commission Other _rrnun�e LOOr�inct��r' tom 4e i.��etArv�io�A� /Aw jr4j4/y-2 5`fv�Jes- gf' Nkry4 n FINCOM FY15 Schedule (All meetings are Wednesday at 7:30pm in Town Hall, unless noted) 2014 September 23 BOS close Warrant for November Subsequent Town Meeting September 29(M) Special Town Meeting (at RAIHS) October 8 regular meeting (Vote November TM Warrant Articles) October 29 Financial Forum III: FY16 budget (Pleasant St. Center) November 10(M)- 13(Th)- 17(1f)- 20(Th) Subsequent Town Meeting (at RMIIS) December 10 regular meeting (Vote January TM Warrant Articles) 2015 January Selectmen Town budget (Tuesda 13`h & 20`h) January School Committee budget (Th 8` ,M 12`h; Th 1 S`h; Th 22"d M26`h) January 5(M- 6(T) -7M Special Town Meeting(al RMHS) January 28 Financial Forum IV: FY16 budget (at the Pleasant St. Center if needed) February 23'd Snow & Ice (Town Meeting RMHS PAC) February 24 BOS close Warrant for April Town Meeting March 4 FY16 Budget Meetings (Town at Pleasant St Center 7:00pm) March 11 FY16 Budget Meetings (Schools at Pleasant Street Center 7:30pm) March 18 FY16 Budget Meetings (Town Meeting Articles) March 25 Vote FY16 Budget & Town Meeting Articles April 7 Local elections April 27(M)- 30M)-May 4(M) -7(TI) Annual Town Meeting (at RMHS) June 24 Year -end meeting r3' o� OF 1{FgO' yc b Office of the Town Manager 781- 942 -9043 16 Lowell Street townmanager@ci.reading.ma.us 'fNCORp�RP� Reading, MA 01867 www.readingma.gov /town - manager To: Finance Committee From: Robert W. LeLacheur, Jr. CFA Date: March 4, 2015 , J RE: FY16 Town Manager Budget update Two pieces of good news to share: 1) The Retirement Assessment may be reduced by $52,067 due to a recalculation done over a year ago. I noticed this year's funding was too high which led to this realization. 2) The FY16 debt service budget inside the levy may be reduced by $150,241. This was a product of our recent refinancing, which took a while to run through the math involved. The savings was a combination of lower interest payments and borrowing West Street for a longer term as the rates were so low. As a result, the Town Accountant, Superintendent of Schools and the Town Manager all agree to recommend to FINCOM that they reduce the usage of Free Cash to balance the FY16 budget by $200,000, revised down to $1.5 million. Recall that Free Cash may also be asked to supplement any shortfalls of State Aid increasing by 2.5% in FY16. If this happens, we would expect such an adjustment to be made at November 2015 Town Meeting. n4 General Fund FYI 5: $1.057,000 $1.0 mil. TBA Birch Meadow field lighting (moved up from larger project in FY17)* $_ 34,000 DPW Car #5 Chevy Blazer (replace 2000 model) $ 23,000 Firefighter breathing air bottles & related safety face pieces* FY16: - $314,000 ($134,000) Town Fac: Main Fire Station roof repair project (defer to FY17) ($120,000) Town Fac: Town Hall roof repair project — retain only $80,000 for connector repairs ($ 60,000) Town Fac: West Side Fire Station roof repair project (defer to FY17) FY17: +$519,000 $134,000 Town Fac: Main Fire Station roof repair project (from FY16) +$120,000 Town Fac: Town Hall roof repair project (from FY16 - now $420k total) $115,000 DPW Truck #10 (move up from FYI 9) $100,000 Aerial Pickup Truck #14 (replaces 1994 model) $ 60,000 Town Fac: West Side Fire Station roof repair project (from FY16) ($ 10,000) Firefighter breathing air bottles* FY17+ Reduce Birch Meadow field project by a total of $300,000 (lighting portion moved up)* Various other chanaes made enterprise Funds - water FY15: 0 No changes made FY16: +$150,000 $150,000 Utility Truck #5 (move up from FY22) FY17: $O No changes made FYI 8+ Various chances made tnter rise Funds - Sewer FY16: +$600,000 $520,000 Batchelder Road Sewer Station (move up from FY16) $ 80,000 SCADA programming for Sewer Station projects* FY16: ($480,000) $40,000 Pickup truck #8 (moved up from FY17) ($520,000) Batchelder Road Sewer Station (move up to FY15) FY17: ($40,000, ($40,000) Pickup truck #8 (moved up to FY16) FY18+ Various chanaes Enterprise Funds — Storm Water FYI 5: 0 No changes FY16: ($25,000) +$100,000 General drainage improvement projects (total now $125,000) ($125,000) Eliminate purchase of new dump truck C-5 FYI 7: ($25,000) +$125,000 General drainage improvement projects (total now $125,000) ($150,000) defer Saugus River Design to FY18 FYI 8+ Various changes Finance Committee Report: The Finance Committee recommends the proposed amendments to the FY 2015 — FY 2025 Capital Improvements Program by a vote of xx at their meeting on March 25, 2015. Placing items in the Capital Improvement Program is a prerequisite but in itself does not authorize spending funds towards these items. Bylaw Committee Report: No report. By Charter, both the Finance Committee and Bylaw Committee are advisory to Town Meeting and their votes must be reported to Town Meeting, preferably in writing in advance when possible. Other volunteer Boards and Committees also vote on Warrant Articles, and when possible those votes are noted herein with an asterisk (') next to their name. Please note that the Board of Selectmen may act as the sponsor for Articles at Town Meeting, but they do so as a courtesy and may or may not agree with it. *Board of Selectmen Report: The Board of Selectmen at their meeting on March 24, 2015 voted xx to support this Article. ARTICLE 5 To see if the Town will vote to amend the Town's Operating Budget for the Fiscal Year commencing July 1, 2014, as adopted under Article 14 of the Annual Town Meeting of April 28, 2014 and amended under Article 8 of the Special Town Meeting of September 29, 2014, further amended under Article 4 of the Special Town Meeting of January 5, 2015 and further amended under Article 6 of the Special Town Meeting of February 23, 2015; and to see if the Town will vote to raise and appropriate, borrow or transfer from available funds, or otherwise provide a sum or sums of money to be added to the amounts appropriated under said Article, as amended, for the operation of the Town and its government, or take any other Action with respect thereto. Finance Committee Background: . General Fund — Wages and Expenses DRAFT Account Line Description Decrease Increase B91 — Benefit Disability Retirement (Three Firefighters — cost $151,662 wages new line shifted from department to central location B99 — Benefits Retirement ($49,000) $199,000 Expenses Health Insurance Premiums $150,000 C99 — Capital Birch Meadow field lighting $1.0 mil. TBA $1,057,000 Expenses DPW Car #5 Chevy Blazer $34,000 Firefighter breathing air bottles & related safety face piece s $23,000 l l4J G92 — Legal expenses $80,000 Decrease $115,000 Administrative Charter $20,000 (8,500 copies mailed) Sewer station project (Batchelder Road) moved up from FY16 $520,000 SCADA for sewer station projects $80,000 Services Expenses Technology /Public Safety software license to June 2016: compile internal statistics, track and Subtotals $0 $600,000 compare crime to benchmarks $15,000 Net Operating Expenses J91 - Public Safety Disability Retirement ($151,662) see above $ 36,662 wages Vacation & Sick leave buyback at Retirement Police & Fire $115,000 J92 — Public Police Academy tuition reimbursed by $ 3,500 Safety Expenses employee directly to the General Fund $3,500 K91 — Public Sick leave and vacation buyback at Retirement $ 15,000 Works wages $15,000 K92 — Public Highway Patching (potholes) $50,000 $. 35,000 Works expenses Professional Development $10,000 Shade Trees $2,000 Fuel $27,000 K93 — Public Snow & Ice removal $550,000 $550,000 Works snow & ice K94 — Public Rubbish disposal ($75,000) $ 75,000 Works street lights K95 — Public Street lights ($25,000) $ 25,000 Works Rubbish L92 — Library Library Long Range Plan TBA Expenses Subtotals Net Operating Expenses From Free Cash' From Sick stabilization fund $ 11,628 From Inspections Revolving Fund $145,000 `Note: Free cash usage includes $163,579 from Reading Ice Arena, historically spent on recreational capital Enterprise Funds — Wages and Expenses Account Line Description Decrease Increase X99 Sewer Sewer station project (Batchelder Road) moved up from FY16 $520,000 SCADA for sewer station projects $80,000 $600,000 Subtotals $0 $600,000 Net Operating Expenses $600,000 From Sewer Reserves $600,000 Finance Committee Report: The Finance Committee recommends this Article by a vote of xx at their meeting on March 25, 2015. Bylaw Committee Report: No report. l �l Birch Meadow Complex How to add much - needed recreation space without building a new field Birch Meadow Complex The demand for space • In -town activities continue to expand at over 10% /year • Over 2,000 participants - Softball fields alone! • The unmet demand is even higher 3/4/2015 The Goal 3/4/2015 I� 3 Birch Meadow Complex Vendor Actual Quotes for System (Installed) Birch Meadow Complex Town Manager comments Current Capital Plan $2.3 million $1.0 mil. Field work (includes some lighting costs) $500k Pavillion $230k Basketball/Multipurpose courts $150k softball field lights $150k tennis court lights $ 70k Morton Field Improvements ($110k total - $40k donations) $200k other /misc. 3/4/2015 u 4 Now FY17 (A) Street and Lot Fields $225,000 $245,000 (B) Softball Field $175,000 $190,000 (C) Morton Field $275,000 $300,000 (D) Little League Field $150,000 $170,000 (E) Turf 2 $180.000 $200,000 TOTAL PROJECT —$1.0 mil. $1.1 mil. Birch Meadow Complex Town Manager comments Current Capital Plan $2.3 million $1.0 mil. Field work (includes some lighting costs) $500k Pavillion $230k Basketball/Multipurpose courts $150k softball field lights $150k tennis court lights $ 70k Morton Field Improvements ($110k total - $40k donations) $200k other /misc. 3/4/2015 u 4 Birch Meadow Complex Town Manager comments New Capital Plan Field work: eliminate moving the fields = BIG savings > no change in usage or revenues add lighting to other areas (Little League, Turf 2) > Increased field usage & net revenues Pavillion community discussion for details Tennis Courts as needed Basketball Courts as needed Birch Meadow Complex Town Manager comments FINCOM Financial Forum: Community Brainstorming Services provided today, needs not belne met 0 Effective communication to community 19% new Admin Sys dept head -hire date May 2015 0 Full day Kindergarten 15 %Town Meeting Feb 2015 /Modulars Athletics — field space, lights, surfaces, revenues 14 0 RISE preschool — room, space, revenues 11%Superintendent Working Group 0 K -12 Special Ed space 7%Town Meeting Feb 2015 /Modular: 0 Senior housing/transportation 7%Town Master Plan effort beginning 0 Student counselling— anxiety prevention 6% 0 Affordable housing — Workforce, youth 4%Town Master Plan effort beginning Youth activities 4 0 Institute tech specialists 4% 0 Cultural space 3% Reading 2020 0 Elder services 3% Budget look ahead 2016 -2013 0 Website 1%new Admin Svs dept head - hire date May 2015 0 Art/Musk space 1%Town Meeting Feb 2015 /Muduism 0 RMHS programs 1% 3/4/2015 to 5 Birch Meadow Complex Town Manager comments Priorities Make sure our Recreation space is safe to use. How can we generate more sustainable revenue? Where can we be more efficient spending ongoing operating costs? What are the priorities of Reading Residents? Funding strategy for entire project April 2015: Use free cash for highest priorities November 2015: Use free cash if good regeneration/new growth April 2016: debt for Master Plan results Birch Meadow Complex Our goal is to enhance the recreational opportunity to our crown jewel — the Birch Meadow complex. Our current 30 year old system is antiquated, inefficient, and at times unsafe. This project not only brings functionality & expanded use, but it also allows us to remove the unsightly telephone poles, tire bumpers and overhead wires. Next step: Board of Selectmen presentation March 24th Stay tuned: Board of Selectmen "Reading 2020" BIG Ideas! 3/4/2015 �3 0 Reading Public Library Budget Fiscal Year 2016 TRUSTEES' OVERVIEW The Board of Trustees of the Reading Public Library approved a FY16 budget request with the goal of providing full library services to the community while acknowledging budget realities. The library must maintain traditional services while also meeting the needs of an increasingly robust and expanding digital environment. The budget request includes initiatives in two areas: a half -year Digital Services and Instructional Librarian position and a small increase in the line item for public technology. Digital Services and Instructional Librarian In the past the library had a part-time Technology Librarian position but it was eliminated for budget reasons in 2008. The FY15 budget request had included a full -time position that was not funded. For FY16 we include this position again, but for a half -year, beginning in January 2016, to accommodate the town's budgetary constraints. This librarian will manage all aspects of the library's digital content and technologies in order to increase the effectiveness and usability of digital library services by staff and the public. In an increasingly complex digital environment, this is an important position for educating the community in digital literacy and electronic services. �D Public Technology The line item for public technology took a dramatic reduction in FY15 based on. the library's move into temporary quarters. The small increase requested for FY16 is to begin to rebuild these services. Summary While the focus of the budget initiatives is in digital services, patron expectations for traditional library services remain high. New digital services complement and extend, but do not replace, traditional ones. We have not increased any other line item expenses accounts. However, the library must meet the Massachusetts Board of Library Commissioners municipal appropriation requirement to ensure quality of library services. This is reflected in an increase in the library materials line. While we strive to meet the town's budget guidance, the limitations of a 2.75% budget increase are problematic in a budget as relatively small as the library's. Even with only a minimal COLA and step increases, this percentage does not provide a level- services budget, much less allow the library to move forward to meet the demands of modern library services. LIBRARY BUDGET NARRATIVE The library currently provides and will continue to provide services and collections from its temporary location at 80 General Way for a full schedule of 63 hours per week during FY2016. Librarians teach and lead educational and informational classes and activities for adults, teens, and children from the temporary library and in several locations in Reading. In addition to providing access to curated lending and research collections, public access computers, online resources and digital collections, the library provides weekly homebound delivery, literacy and education services, and deposit collections to Reading citizens. Construction on the Middlesex Avenue library building is expected to be completed towards the end of Fiscal Year 2016. Therefore, the library will remain in temporary quarters throughout most of FY16, and will move back into its permanent home in early summer 2016. Salaries All positions are increased with a 1% COLA. Step increases are budgeted for eligible staff members. The budget covers two additional workdays in Fiscal Year 2016 as instructed. Salaries (level services) net increase is $35,014 or 3.2% over the FY2015 budget. The Library is again proposing funding for a Digital Services & Instructional Librarian to begin in January 2016 within Administration Division, DC-T\ In 2008, the position of "Technology Librarian" was eliminated by the Town for budget reasons and has been vacant for the past seven years. This position has evolved and the need for it has grown substantially. Library services and bibliographic content are changing. Reading Public Library lends digital devices, provides public information and assistance in electronic resources and digital technologies, and creates and makes accessible digital content to enhance and supplement traditional library collections. This librarian would lead staff and public in instruction, planning, .and programming new and emerging technologies and services. Public Technology FY16 Budget adds $3,470 to begin to resume the regular replacement /update cycle of public technology purchases during the second half of Fiscal Year 2016. The Library reduced its Public Technology budget from $15,000 to $6200 in Fiscal Year 2015 to postpone purchasing public computers and related tech equipment during the move into temporary space. Books & Materials The materials budget is set at 15% of the total budget as one of several requirements for Massachusetts Board of Library Commissioners (State) certification. BUDGET SUMMARY TABLE The summary table highlights the proposed changes in FY2016 funding levels in three areas: • Digital Services and Instructional Librarian ($28,500 increase in Admin) • Public Technology ($3,470) • Requisite Increases to Books & Materials (15% in all budgets presented) FY15 FY16 PROPOSED FY16 LEVEL Salaries Admin $223,481 $259,222 $230,722 Circulation $222,103 $229,826 $229,826 Children's $234,884 $239,064 $239,064 Ref /Adult $281,263 $292,018 $292,018 Tech Services $133,824 $138,939 $138,939 Salaries subtotal $1,095,555 $1,159,069 $1,130,569 Expenses Supplies, network, etc $79,000 $79,000 $79,000 Public Technology $6,200 9 670 $6,200 Books & Materials $207,530 $220,200 $215,400 Expenses subtotal $292,730 $308,870 $300,600 Budget Total $1,388,285 $1,467,939 $1,431,169 1) Why was the median, rather than the mean, used as a basis of comparison for the salaries among similar towns? (Bob) Consultant decision & industry convention. The explanation given was to avoid the impact of any high wage data found in some towns or circumstances. With a 20+ responses for most positions, either approach would be similar. Remember that Reading did NOT receive community - specific data, only the summary form. 2) Could you clarify the new accounting practice described on page 11 vor using OT to cover the shift of an employee who is applying for a disability retirement? (Bob) This is an approach we discussed last year briefly with FINCOM — it is pure accounting with no financial impact. For example, let us say that a firefighter is injured in the line of duty and ultimately does not return but instead retires with a disability pension. While the FF is out on medical leave and rehabilitation, existing staff must almost always fill in at a cost of 1.5x. So for that period of time, the cost of running the Fire department includes the wages for the injured FF as well as the FF OT filling in. To move the underlying wage for the injured FF out of the department — once it is indisputable that a retirement is underway — more accurately shows the cost of running the department. If the retirement process were not so long, instead of wages the injured FF would be receiving retirement benefits. Again recall there is no financial impact, just a better accounting picture of what is going on. We will have such transfers at April Town Meeting due to several such circumstances. 3) Also on page 11, could you explain "restoration" of the co -op engineering student? Does this mean that last year, no students were used, but two have been used in the past, and for FY15, one was used? (Bob) This year one co -op student was budgeted, next year two were requested. In years gone by there has been a range from zero to two students hired, but for FYI one student is budgeted again. 4) On page 15, what is the "abatements and exemptions overlay account "? (Bob) This is set by the Board of Assessors by law — and no one else has the right to dispute the figure. About ten years ago the Board raised the figure significantly and their actions were upheld by the state. An agreement was struck whereby this figure increases by 2.5% each year — rounded by the Town Accountant during the tax rate setting process. Since then there seems good balance in the overlay account — at one point it had reached a $1 million surplus but is now less than half that amount with a continued draw -down plan to supplement revenues. One complex issue is lawsuits state -wide regarding telecommunications property taxes. n 5) With regard to the reference to reductions in premiums, what percentage of health insurance premiums for town employees does the town pay? (Bob) The town pays 71% for employees and retirees. The last comprehensive survey suggested this figure in comparable communities was decreasing from 80 -85% towards 75 -80 %, but Reading remains on the low side. 6) Page 19: What does "target baseline capital spending" mean? Is there a list of " FINCOM policy" I can review? FINCOM targets 5% of revenues (not counting debt exclusion) to be dedicated towards capital plus debt payments. (Bob) For the next two years FINCOM has voted to lower that amount to 4.75 %. The capital plan can stand 4.75% or even 4.5% provided mid -year capital spending occurs with one -time revenues. Here is the FINCOM policy: http://www.readingm A.gov/sites/readinmalfiles/file/file/debt and capital poligy.pdf 7) Page 20: Is Reading proportionately responsible for its contributions towards regional vocational school based on its enrollment? Is it true we don't subsidize any non - Reading students? (Bob) We have students at three vocational schools. Our main one is Northeast in Wakefield, but when a student desires a major they do not offer then the Reading Superintendent of Schools may authorize school choice for a vocational school that does offer the major. While this may seem innocuous there is much discussion about strong marketing efforts of some vocational schools that happen to have high tuitions and unique- sounding majors. The tuition formula for one's main vocational school is so complex there is likely no one that actually understands or can mathematically explain it. The theory is that it is set by the ability to pay by each community. Tuitions at Northeast range enormously per student from rough $4,000 to $14,000 for different communities. Reading is on the high side but below that top figure. So yes every community over the average tuition does subsidize other communities. Reading through the Town Manager is very active in the vocational school district, along with Chelsea, Wakefield and Melrose. In the near term we face a significant capital cost for a new building, however the SBA will subsidize this at a very high rate. In this instance, the cost of capital will be equal per student without such a subsidy. 8) Page 45: What does the school choice tuition and charter school tuition go towards? This question is best answered by the Superintendent — it is a subtraction from our state aid. C\%) 9) Page 47: What are our FINCOM expenses? (Bob) On page 50 the audit will cost $55,000 and there is an additional $600 for other professional development expenses, such as about $300 to join the state -wide FINCOM organization. 10) Page 65: What is the "increase to professional development" driving the increase in Accounting expenses? (Sharon) The accounting professional development was increased $500 from the prior year. These funds are used to fund the Town Accountant's CPE to maintain her CPA and CGA designations. To maintain the CPA license requires 80 hours of CPE every two years. The CGA requirement is to attend a 3 -day MMAAA conference at UMass Amherst at least once every three years. Since this conference is 3 days it cost $600 -700 between the conference and hotel stay. The MMAAA conferences are focused on topics related to working for a municipality so the Town Accountant tries to attend at least one MMAAA conference each year, however since these conferences are rarely close by they can be costly so the budget is very tight as additional CPEs are still needed to maintain the CPA license. *********** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** 11. Accomodated costs — comment about restated costs without library. Can you make this clearer? In other words, if we remove the debt service from the library project from the accommodated costs, the remaining costs are still up 4.4% which trending higher.... (Bob) Correct, without the impact of the Library project accommodated costs are budgeted +4.4% which is certainly better than stretches of 8% we have experienced, but higher than recent trends that have allowed operating budgets to do relatively well. Including the Library project shows these costs up 8.5% because of the additional debt service. 12. Page 2 —The Town and School Budgets.....last sentence, suggest you add "FYI 17" to make it clearer (Bob) Agreed! 13. Page 2-Town Department Budget Process —"the town has developed a staffing model"... suggest you don't say that the 19% increase will certainly not happen without additional revenues. Will need to review level of service that townspeople want so that we can prioritize and then decide what will be funded. (Wording sounds like it is inevitable). (Bob) If the point is that an implication is made that an override is inevitable, that was certainly not my intention and I will clarify. If the point is that Town staffing might increase by 19% without an override if it is enough of a priority, I would state that is simply not possible as funds would need to come from the Schools or capital: Recall that for many years the lack of appetite to cut any service that one uses when making such choices. 14. Page 3 -3rd paragraph. "...Reading spends considerably more on schools than on Town Government ". What is context? More as a % of total? Don't we spend less per student from the Town budget than most other communities (per pupil expenditure numbers). (Bob) Yes, that is what this section describes. School spending is less per pupil but 0�) greater for the total relative share of the School department versus what happens in other comparable communities. Data presented below is not meant to be precise; I have not seen or verified the components. For example, some communities report benefit costs within departments. Notes: (1) from the Pay & Class study; (2) figure includes the $3.2 mil. School Facilities budget, and (3) restated to include all Facilities as was likely typical in the survey data 15. AAA rating —how many other communities in our comparables have this rating? What is the savings on the library financing as a result of this rating? (Bob) Four of the 23 communities are rated AAA. According to our Financial Advisor "the savings on that specific day were about $100,000 because quality spreads are very tight. Over a longer market cycle the advantage is considerably more." 16. When is go to print deadline for the warrant? I need to write up my "state of the budget ". As I am sure you know, I plan to hammer on need to set priorities and override (and how much) vs. decrease services. Selectman and School Committee need to guide the priorities discussion. TM and voters then decide. (Bob) The Bylaw Committee meets and votes on March 26th — they are the last public meeting scheduled. The soft deadline is early /mid next week —say April 1 ". 17. Page 5--is there an opportunity to regionalize technology help desks and both get better service and shared costs? (Bob) If you mean with other towns, we have discussed that with Melrose and Wakefield and share `expertise' as we are able _ this is much more on the hardware side though. The software systems used by each community varies, so in that sense a shared help desk would not work. We have also discussed this with the School department for several years — again there is something shared there but more on the hardware side. 18. Page 5 -- Human Resources Administrator —I thought the schools have their own HR? I think they face some very different issues and many more of them. What is current and envisioned role for Town HR Administrator? (Bob) Both the schools and RMLD have an HR lead position,_and each does things entirely within their own organization. The Town also has an HR Director which takes care of Town government issues, but also a significant amount of time and effort goes into benefits for the entire organization. I'm not sure why the impression about `many more of them'? 19. Page 6 —what vintage of MS Office do we have? How far behind are we on MUNIS? Still supported? How often do we need to upgrade? We pay for maintenance and support, correct? How much do we pay for this? How long will they support our versions? (Bob) We are using MS Office 2010, a relatively recent upgrade (from 2003) on the Town side, which will do for a while. We need to upgrade MUNIS annually. The best approach seems to be to surf Town Schools Town Facs. Comparable Communities $48.7 mil $47.4 mil Reading. $20.6 $40.32 $0.7 Reading restated $24.5 $37.1 $0 Notes: (1) from the Pay & Class study; (2) figure includes the $3.2 mil. School Facilities budget, and (3) restated to include all Facilities as was likely typical in the survey data 15. AAA rating —how many other communities in our comparables have this rating? What is the savings on the library financing as a result of this rating? (Bob) Four of the 23 communities are rated AAA. According to our Financial Advisor "the savings on that specific day were about $100,000 because quality spreads are very tight. Over a longer market cycle the advantage is considerably more." 16. When is go to print deadline for the warrant? I need to write up my "state of the budget ". As I am sure you know, I plan to hammer on need to set priorities and override (and how much) vs. decrease services. Selectman and School Committee need to guide the priorities discussion. TM and voters then decide. (Bob) The Bylaw Committee meets and votes on March 26th — they are the last public meeting scheduled. The soft deadline is early /mid next week —say April 1 ". 17. Page 5--is there an opportunity to regionalize technology help desks and both get better service and shared costs? (Bob) If you mean with other towns, we have discussed that with Melrose and Wakefield and share `expertise' as we are able _ this is much more on the hardware side though. The software systems used by each community varies, so in that sense a shared help desk would not work. We have also discussed this with the School department for several years — again there is something shared there but more on the hardware side. 18. Page 5 -- Human Resources Administrator —I thought the schools have their own HR? I think they face some very different issues and many more of them. What is current and envisioned role for Town HR Administrator? (Bob) Both the schools and RMLD have an HR lead position,_and each does things entirely within their own organization. The Town also has an HR Director which takes care of Town government issues, but also a significant amount of time and effort goes into benefits for the entire organization. I'm not sure why the impression about `many more of them'? 19. Page 6 —what vintage of MS Office do we have? How far behind are we on MUNIS? Still supported? How often do we need to upgrade? We pay for maintenance and support, correct? How much do we pay for this? How long will they support our versions? (Bob) We are using MS Office 2010, a relatively recent upgrade (from 2003) on the Town side, which will do for a while. We need to upgrade MUNIS annually. The best approach seems to be to surf behind those that beta test the newest versions, and stay ahead of when M`MS stops supporting a version, which is typically about a 2 -3 year window. We upgraded recently a bit faster than one year because of issues with the version being used slowing down work in the Collector's Office, and unhappily the issue is not much better despite never showing up in testing. We do not pay a $10 -15k annual cost for annual support, but we do pay the license fees that come with support for product errors. Our Town staff can generally do the trouble shooting, and as needed we pay an hourly rate for MUNIS assistance. 20. Page 8— please review what the Melrose regionalization plan review services for $13k? (Bob) Jeri Keough in the Melrose Health division has been part of the regional agreement and we have agreed to continue this portion into next year. She helps us with all of the plan review work (when a new business such as a restaurant is planning to open up). As we hire a new full -time Health Administrator, it is possible that this will be eliminated next year (FYI 7) – we will continue our extensive work with the Reading Board of Health to see what makes the most sense. 21. Page 9— revaluation. When is the next scheduled reval? 2017 or 2018? (Bob) Fall 2016. 22. Page 13: staffing projections. Can you include FY12,13,14 as well for comparison purposes? (Bob) Will do – that will take some time to research as we do not trck FTEs in our Financial system. 23. Page 14 Library —so is the projected headcount of 24 (chart on page 13) up from 19 or from 22.5? Need to understand this in depth. I would have expected the new library and technology to allow us to decrease staffing....don't understand why not. (Bob) I don't know the answer. We have stated a figure of 18 to 19 FTES in budgets for several years, and a recent 9 -month payroll audit confirmed that range for the period before the library moved to the temporary space. The Library Director says that she has reported 22.5 FTES to the state for many .years – I was only recently made aware of that. I cannot explain the difference, but point it out as the future staffing estimates provided by the Library perhaps should be compared to that 22.5 FTE figure. In other words, their guess at staff increases may not be as large as they appear. Beyond that we'll let the staffing study give us information – certainly as technology grows there is the fundamental debate as to if that is additional or replacement to other staffing. (Ruth) Here's a table of library staffing levels as reported to the State annually for the most recent three years. The State asks for the TOTAL HOURS PER WEEK and uses a standard formula to calculate its "FTE" figure. The State uses 35 hours per /week as FTE 1 and Reading uses 37.5 hours per /week for its FTE 1. For detail see the table below. Also, because of the large number of part-time library staff with no benefits, the nine month payroll number does -not capture vacancies and absences since the staff with no benefits are not paid for absences. c Reading Public Library LIBRARY STAFFING Full Time Equivalents Columnl Total hours FTE /35 FTE /37.5 Staff >35 Staff <35 Total staff per week hrs hrs b Staffing level 7/1/13 760 21.7 20.3 8 33 41 24. Page 15: what has the historical level of annual abatements been? Is $662k a reasonable number of is it too high? (Bob) Please see question #4 above. 25. Page 16: Please provide historical numbers on intergovernmental transfers. (Sharon) Operating Transfers and Other Available Funds FY10 FY11 FY12 FY13 FY14 FY15 FY16 Cemetery Sale of Lots 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Sale of Real Estate 410,000 300,000 300,000 250,000 200,000 150,000 100,000 Reading Ice Arena Authority - 95,000 100,000 100,000 50,000 - - MSBA 676,220 696,990 720,070 215,828 817,305 - - RMLD Payment 2,186,719 2,171,880 2,205,957 2,200,738 2,301,221 2,332,863 2,379,520 Enterprise Support 756,069 756,069 756,069 771,190 822,418 851,203 874,611 40R Stabilization Fund - - 331,000 368,000 257,000 - - Overlay Surplus 390,447 204,827 - 475,947 350,000 350,000 300,000 4,444,455 4,249,766 4,438,096 4,406,703 4,822,944 3,709,066 3,679,131 26. Page 16: Sharon, please detail your estimates on Free Cash .... looks too severe. Please also add a line that shows a 5% level and a 6% level for FY 2015. Let's carry this out to FYI 16 as well. (Sharon) The FYI figures I used on the free cash chart assumed no regeneration. I have updated the chart to assume $750k of regeneration in both FYI and FYI 6. The uses of free cash for FYI were as follows: November `14 TM $280,095 Facilities $594k; DPW $80k (also used new growth for funding source Jan '15 TM $151,000 Legal $100k; misc. capital $51k n February ' 15 TM $1,240,000 Modular classrooms $1.2mi1; fields $40k April '15 TM $1,700,000 FYI budget $150,000 Possible State Aid shortfall? $750,000 Mostly snow & ice (see handout) TOTAL $4,271,095 The updated chart is below. I was unable to provide a line for 5% or 6% reserves as that figure would vary from year to year based on the Net available revenues. For FYI the net available revenue is $82.2 million so 5% would be approx. $4.1 million and 6% would be approx. $4.9 million $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Town of Reading, Massachusetts Certified "Free Cash" Last Twenty Fiscal Years (Amounts Expressed in Thousands) 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Fiscal Year n�� 27. Page 18. Need to mention that we agreed on slight decrease in 16 and 17. For FY16, agreed that we are at capacity in DPW so this number is right. We also agreed that capital could take this breather in 17. Otherwise it sounds like we just cut it willy -nilly which is not accurate. (Bob) Not sure what is being asked here? 28. Page 18 —OPEB. Have we always done $500 or didn't we do $400 one year? (Sharon) 2012 was the first year that the town contributed to the OPEB trust fund at 500k, 2013 was budgeted at $420k but the actual contribution was $800k due to a surplus in health insurance, FY14 contribution was $450k and 2015 is budgeted at $475k. 29. Page 19: UE comp —is $100k needed? History? (Sharon) I would say the $100k is needed based on the history below: Unemployment Compensation FY10 FY11 FY12 FY13 FY14 . FY15 Budgeted 55,000 127,160 100,000 120,000 100,000 100,000 Actual 118,424 99,725 57,879 77,243 82,288 63,259 Difference (63,424) 27,435 42,121 42,757 17,712 36,741* $95k pace 30. Please update debt section based on TM approval of article on library debt. (Bob) Please clarify? 31. Page 21: what is retirement OBRA management fees and why up to $20k? (Bob) Several years ago the Town contributed to social security for part-time seasonal workers, such as for sports camps in the summer. After some research we determined that if we instead offered a self - directed retirement plan we could save about $150,000 /year. We agreed to pay the annual fees per account in order to save these FICA funds. Recent enrollment and annual costs have risen slightly to above $15,000 – in the context of the benefits budget more precision is not needed. 32. Page 47: Legal budget —text says $150k but table shows $170k? which is correct? (Bob) Both are correct – the actual budget was $170,000 at the time, and an estimate going forward is stated as $150,000. 33. Page 55: Staffing. Please show FTE's by department. (Bob) For the Public Services department: Administration (6); Conservation (1); Planning (2); Inspections (2.5); Health (2.5); Human/Elder Services (4.3); Veterans (1); Recreation (2); Historical (0). Recall that we have additional help from Melrose that does not appear here as a wage, and also that we provide regional services from Planning for three other communities (and receive revenues). (RA, 34. Page 70: what is up with police OT? Right number of officers? (annual discussion) (Bob) Police OT is actually quite well behaved this year, not sure of the question? Through seven months it is running at about 45% of the budget. OT is seasonal and largest in summer months. 35. Page 77/78: Fire and EMS — (annual) analysis of number of fire fighters vs. OT? (Bob) Please see question #2 above. 36. Page 77: Expenses just confirming that we are paying more for ambulance billing service because we are generating more revenue (over and above the increased cost, correct)? (Bob) Yes this is correct. 37. Page 80: Wage section should talk about succession planning (not secession planning 'unless the are planning to separate from either Massachusetts or the United States). (Bob) LOL, you know we might be better off in some ways ... 38. Page 93: reduced budget must meet state materials purchase requirements. Needs to be confirmed. If not, other items must be reduced. (Bob) The reduction details are up to the Library Trustees, but I would advocate for the 15% materials budget to be met as well. Note that the chartable accounts (Friends, Foundation) held for this department may not be spent on wages, but are allowed to supplement the materials budget and be spent on expenses. CP LeLacheur, Bob From: Karen G. Herrick Sent: Wednesday, March 04, 2015 1:45 PM To: Mark Dockser; LeLacheur, Bob Subject: Re: FinComm Town budget Review, Hi Mark and Bob, AA night 7 _"pp easant Street Center Read the budget and all the responses to the questions. (Thank you as they answered some of mine.) I am not able to be there tonight because of a previously scheduled commitment. I will be able to make the rest of the March meetings and I suppose that one of the last two might be the right time to provide a LBC update as well although it may come up tonight. My comments questions: 1) I found the number regarding sale of real estate confusing - perhaps because they are spread over several accounts. I'd like to see the sales from last years lots as well as any revolving funds detailed. I have the growing sense that there are a number of buckets of funds that we ought to be looking at all together. 2) Glad to see us getting out of the flower watering business. 3) Generator purchases. Are we purchasing two generators? and if so for what purposes. 4) Library request for digital media specialist. I'd like to see the staffing review completed before we start adding new positions. Could we address some of this need before then via contract/temp help? 5) What is the intended goal for the funds remaining in the 40R stabilization fund? (This goes along with Nbr 1 above. We have a growing number of these dedicated smaller accounts which are hard to track and perhaps can be better managed &. utilized. 6) Mobile technology repair - what kind of mobile repair business are we getting into? Is this something we can outsource rather than staff up for? 7) How much revenue does Mattera Cabin bring in? 8) The Fin Comm Reserves amount is pathetically small vis a vis our budget and the typical cost of yearly budget surprises from $400k for new curriculum or purchases of new DPW/Fire equipment. What is this doing for us and is it the right amount? Thank you! Karen cl* 2015 Annual Town Meeting Monday April 27, 2015 Art. Mover/ Moderator # Article Description Sponsor Comment Notes 1 Election " .a., _b�tt`�_.mmy. �F ^SF 2 Reports Board of Selectmen ♦ "State of the Town" report —Board of Selectmen Chair TBA ♦ 16 Budget Report & Financial Overview — Fin ommittee Chair Mark Dockser ♦ Library Building Project — Library Building Committee Chair David Hutchinson ♦ Update on Firearms Instructional Motion — BOS member TBA ♦ Motion to Table — 3 Instructions Board of Selectmen ♦ Motion to Table — 4 Amend the Capital Improvement Board of Selectmen ♦ Presentation — Program FY 2015 -FY 2025 Town Manager Bob LeLacheur ♦ FINCOM report — 5 Amend the FY 2015 Budget FINCOM ♦ Presentation — Bob LeLacheur ♦ FINCOM report - 6 Additional funding - Smart Growth Board of Selectmen ♦ Presentation — Stabilization Fund Town Accountant Sharon Angstrom ♦ FINCOM report — 3/4/2015 1 Cl� / 2015 Annual Town Meeting Monday April 27, 2015 7 Fund OPEB Trust Board of Selectmen ♦ Presentation — Sharon Angstrom ♦ FINCOM report- 8 Accept Complete Streets Program Board of Selectmen ♦ Presentation — Community Development Director Jessie Wilson ♦ FINCOM report — 9 Accept Public Ways Board of Selectmen ♦ Presentation — George Zambouras ♦ Bylaw Committee re ort — X10 Approve Rubbish Contract extension Board of Selectmen ♦ Presentation — Jeff Zager ♦ Finance Committee ' report — 11 General Bylaw Changes - Animal Board of Selectmen ♦ Presentation — Control Bylaw Police Chief James Cormier ♦ Bylaw Committee report — 12 General Bylaw Changes — Associate Board of Selectmen ♦ Presentation — Members Town Counsel Ray Miyares ♦ Bylaw Committee report — 13 General Bylaw Changes — Posting of By Petition ♦ Presentation — the Warrant Petitioner ♦ Bylaw Committee report — 17A,r p rove Cell Tower Wireless Board of Selectmen ♦ Presentation — Bob eases/Licenses LeLacheur ♦ Finance Committee ' report - 3/4/2015 2 no% 2015 Annual Town Meeting Monday April 27, 2015 15 Dispose of Surplus Tangible Property Board of Selectmen ♦ Presentation — Sharon Angstrom ♦ FINCOM report — 16 Authorize Debt — allow MWRA Board of Selectmen ♦ Presentation — Bob 2/3 vote Sewer loans LeLacheur ♦ FINCOM report — 1 Authorize Debt — Cemetery Garage Board of Cemetery ♦ Presentation — 2/3 vote Trustees Board of Cemetery Trustees member Bill Brown ♦ FINCOM report — 18 Approve Affordable Housing Trust Board of Selectmen ♦ Presentation — Fund Allocation Plan Assistant Town Manager Jean - Delios ♦ FINCOM report — 19 Approve Revolving Funds Board of Selectmen ♦ Presentation — Sharon Angstrom ♦ FINCOM report — 20 Adopt FY 2016 Budget FINCOM Presentation — Bob 2/3 vote for some LeLacheur and Dr. sections — and John Doherty therefore for the ♦ FINCOM report — entirety. Begin discussion on 2 °d night (April 30th) 21 Authorize FY 2016 Chapter 90 Board of Selectmen ♦ Presentation — Bob 2/3 vote Expenditures LeLacheur ♦ FINCOM report — 22 Remove Town Meeting members Board of Selectmen ♦ Presentation — pursuant to Section 2.6 of the Precinct Chairs Reading Home Rule Charter 3/4/2015 3 rf Town of Reading Meeting Minutes Board - Committee - Commission - Council: Finance Committee Date: 2015 -01 -14 Building: Reading Town Hall Address: 16 Lowell Street Purpose: General Business Attendees: Members - Present: Time: 7:30 PM Location: Conference Room Chairman Mark Dockser, Vice Chair Paula Perry, Members Ann Landry, Karen Herrick, Marc Moll, Peter Lydecker, Craig Merry, and Paul McNeice. Members - Not Present: Others Present: Town Manager Bob LeLacheur, Superintendent of Schools Dr. John Doherty, Director of Finance of Schools Martha Sybert, Administrative Assistant Caitlin Saunders Minutes Respectfully Submitted By: Topics of Discussion: Chairman Mr. Dockser called the meeting to order at 7:30pm. He explained the main topic of tonight's meeting is to hear a proposal from the School Committee about modular classrooms for the elementary schools. Dr. Doherty said he will be speaking on behalf of the School Committee tonight while he is making this presentation. Dr. Doherty stated full day Kindergarten enrollment is at a historic high and if this does not get approved they will have to do a lottery. He explained as of right now if they go to a lottery, 80 students will be denied full day kindergarten. He also stated the numbers will probably be a little higher as there are still several months before next school year. Dr. Doherty explained if they do not get the modular classrooms, a lot of those students who get turned away will go to private kindergarten but then come right back for grade 1 and we will have the same problem all over again for space. Ms. Perry asked why we couldn't take the students from the schools that are full and move them to one of the other schools with fewer students? Dr. Doherty said we could do that however then those kids will have to continue their whole elementary career at that school and then they would have to decide what to do once they move up to the middle school, either keep them in the new district or send them back to their old district and away from their friends. He said a lot of parents also like to keep their kids with the neighborhood schools they are near. Ms. Sybert then explained where the possible space would be to put the modular classrooms. They came to the conclusion the best places would be 2 at Barrows, 2 at (i� Finance Committee Meeting - January 14. 2015 - page 2 Klllam, and 2 at Joshua Eaton for a total of 6 modular classrooms. Ms. Sybert then went on to talk about the estimated costs. She noted DPW has too many projects coming up to help with the site prep work so that would be an estimated extra $25k per site. It would also cost roughly $25k per classroom to furnish and supply. The costs projected are pretty accurate; the most varying cost will be the site prep work. It is an additional $77k to "Lease to own" compared to just purchasing six modular classrooms. Dr. Doherty explained if they have to turn down students, that is tuition money they won't be getting and putting into their funds. Also, they will be losing money on before /after school programs that a lot of these students pay for. Estimated costs are between 950k -1.2M. Dr. Doherty said there will be no other costs because they will not need any additional staff as they will use what they already have. The primary costs will be utilities. Dr. Doherty went on to say if we do not fund the modular classrooms.the revolving funds will be down which will cause a reduction in the operating budget next year, and we are only prolonging the problem because when all the kids who do not get full time kindergarten come back for first grade we will still need space or class sizes will be extremely large. Dr. Doherty also explained if we have to do a lottery for full day kindergarten, which hasn't been done in years, then it will only be at the schools that can't hold any more students. There will be approximately 80 students that will not be able to get full day kindergarten if they have to do the lottery. FINCOM asked if there would be a cost to get rid of the modular classrooms when we don't need them anymore? Ms. Sybert said it would depend on if we were scrapping them or selling them. Ms. Perry asked what the costs would be if we possibly made them more permanent? Ms. Sybert explained an architect would have to determine that. Mr. McNeice asked if 6 modular classrooms would be enough, Dr. Doherty answered with hopefully but it is hard to predict numbers this early still. Rebecca Ward of Kingston Street stated she moved to Reading specifically for the school system and thinks when people hear that Reading can't put kids in full day kindergarten it will drive people away. Linda Snow Dockser of Beaver Road wanted to inform everyone that she went and visited the modular classrooms and looked at them and went inside and she wanted everyone to know they have come a long way and they look much better than you think. Nancy Docktor of Pearl Street asked what the financial ramifications would be if we can't charge for full day kindergarten. Dr. Doherty answered it would be around an 850k reduction. Mr. Nichols from West Street said he has invested his future in Reading and the people of this community need support from the town to further keep our schools top notch. n Pane 1 7 Finance Committee Meeting - January 14. 2015 - naae 3 Ms. Landry voiced that financing and providing school space should be on the top of the list for Reading to do. Mike Fitzgerald of Scotland Road asked if we funded the modular classrooms what would that mean for taxpayers of Reading? Mr. LeLacheur said it would change nothing for the taxpayers. Mr. Dockser stated we will most likely need an override next year so we need to keep mentioning that so people get used to hearing it. Linda Snow Dockser stated it's important to be a part of the discussion and be involved and it would be really wonderful if people could come to Town Meeting as well. Mr. Dockser thanked the School Committee and appreciate them coming to FINCOM to present this before the Financial Forum next week. School Committee leaves at 8:45 PM. Mr. Dockser said the committee needs to authorize the transfer of funds for the investigation. Mr. Dockser made a motion to transfer funds from the reserve fund to the audit account in the amount of $35,000, second by Ms. Perry and approved with an 8 -0- 0 vote. Mr. LeLacheur said the budget he has right now is simply what was requested and not balanced. He stated he will not balance it until the Selectmen have heard all the presentations. Mr. LeLacheur said this is a hard budget because there are a lot of things we put off that must be budgeted now. He also mentioned health insurance rates came in at 8.2% and we are staying with MIIA because they are giving us an incredible deal. He also informed FINCOM that Reading got $300,000 for road repairs from the state that hopefully we will be able to use next year. Ms. Perry made a motion to accent the December 8a' minutes as written, second by Ms. Herrick and approved with an 8 -0 -0 vote. Mr. Dockser said he will reach out to RMLB Chair Dave Talbot and RMLD's General Manager Coleen O'Brien to give them a heads up that the investigation process will begin soon. Mr. McNeice made a motion to adiourn at 9:30, second by Ms. Herrick and approved with an 8 -0 -0 vote. Respectfully submitted, Secreta ry A)-" O� OFRO' yc Town of Reading U Meeting Minutes G'6�9. tNCOA�4� Board - Committee - Commission - Council: Finance Committee Date: 2015 -01 -21 Building: Pleasant Street Senior Center Address: 49 Pleasant Street Purpose: Financial Forum Attendees: Members - Present: Time: 7:30 PM Location: Great Room Chairman Mark Dockser, Vice Chair Paula Perry, Members Peter Lydecker, Paul McNeice, Anne Landry, Craig Merry, Karen Herrick, and Marc Moll. Members - Not Present: Others Present: Town Manager Bob LeLachuer, Assistant Town Manager Jean Delios, Police Chief Jim Cormier, Deputy Police Chief Mark Segalla, Fire Chief Greg Burns, Superintendent of Schools John Doherty, Director of Finance of Schools Martha Syburt, Community Development Director Jessie Wilson, Recreation Director John Feudo, Director of Public Works Jeff Zager, Assistant Director of Public Works Joe Huggins, Business Administrator Jane Kinsella, Administrative Assistant Caitlin Saunders, Board of Selectmen Members John Arena, John Halsey, and Kevin Sexton, School Committee Members Chris Caruso, Chuck Robinson, Jeanne Borawski, Gary Nihan, and Elaine Webb, Board of Library Trustees Vicky Yablonsky, residents Pete Torell, Steven Zessis, Kristen Roberts, Elizabeth Gustaysen, Jennifer Hillery, Kate Grant, Denise Ewald, Heather Stepler, Nancy Docktor, Kevin Cashin, Alice Collins, Cherrie Dubois, Linda Snow Dockser, John Brzezenski, Mary Pastore, Lauren Dahm, Ashley Quinn, Sean Quinn, Dan Tremblay, Beth Tremblay, Ryan Morgan, Sarah Doane, Kate McLeod, Ben Tafoya, Rebecca Ward, Jessica Kaufman, Mark Liteplo, Kate DePalma, Elain O'Dea, Chris Copeland, Brian Souza, Christine Lotterhand, Steve Therrien, Heather Clish, Reginald Nichols, Bill Brown, Greg Richardson, and Barry Berman. Minutes Respectfully Submitted By: Topics of Discussion: Chairman Mark Dockser called the meeting to order. Mr. Dockser first wanted to go over how the budget process works in terms of the Finance Committee. He stated FINCOM reviews budgets and reports to Town Meeting. FINCOM sets budget guidance. Reading is doing a good job with their reserve funds, we are at the top of peer communities and we also received a Triple A Bond rating; which is the best you can receive. Mr. LeLacheur stated costs are going up faster than revenue and we cannot sustain them much longer. FY16 will require meaningful cuts and FY17 will be even worse. FINCOM has a 5% minimum for reserves but may be time to rethink that number. Pace 1 1 �� Finance Committee Minutes - January 21, 2015 - page 2 Mr. LeLacheur discussed Prop 2 1/2 which limits increases in property tax to a maximum of 2.5 % per year on existing stock. It essentially forces local government to set priorities and rely heavily on state aid. Historically there's an override every 10 years, we are currently at 12 years without one. New growth brings more people to town but also puts a strain on current services. Town Accountant Sharon Angstrom said our reserves are at 7.7 Million. Our projected revenues for FY16 are an increase in property taxes by 3.3% and increase in local revenue by 3.6 %. No significant changes. The health insurance RFP came in at 8.2% which is good because we budgeted for 8 0/0. The town also received $300,000 in funds from the state for roads. Ms. Angstrom explained the operating' budget can only go up 2.75% in FY16 if we use that $1.7 Million free cash number. Borrowing will be going down because we just borrowed $11 Million for the library out of the . $13 or $14 million total. Revolving funds have limited amount of uses which is why it's not included in the cash number. We have regenerated around $1 Million dollars each year the past couple of years however, we cannot rely on that to happen again because it is an unknown. Superintendent of Schools Dr. Doherty explained the school budget. He noted the budget drivers were salary/benefits for employees, an increase in Special Ed, and non -union salary increases. He noted they made a reduction in substitute teachers and increased athletic fees. Dr. Doherty said they are trying their best to keep cuts out of the classroom but won't have a choice if it continues the way it is. FY17 will be the breaking point for continuing all of the services we offer today. Dr. Doherty stated they will not need more staff for the new modular classrooms so it would not affect the budget that way. He noted the schools fall short providing non -sped help for struggling students. Dr. Doherty said there is a growing gap between expectations of schools and services being provided. Mr. Dockser said this is why we need to sort out the towns priorities to figure out what we want, as a town. Mr. LeLacheur stated the level of service gap on the Town side is large as well. The balanced budget took a $1 million hit. He noted FY16 will be tolerable but FY17 will be a hard struggle. He also mentioned the elderly are a growing population in Reading and we are struggling to provide the services they need. Mr. LeLacheur noted we need to figure out what the Town wants to be versus what we're willing to pay for. Our level of services will go down in FY17 if we don't get a random, positive surprise in the budget. Barry Berman asked if the town has a conservative state aid number because there is a shortfall in the state budget that may impact us. Mr. LeLacheur answered state aid will probably be shorter than 2.5% which is what we budgeted for. He noted there is a serious problem at the state level but there is no immediate impact to Reading. Dine I I 1 1 Finance Committee Minutes - January 21. 2015 - page 3 Dr. Doherty then went on to present the School Committee's presentation asking for modular classrooms. He explained three elementary schools have a large incoming population that requires more space. He noted there has been a steady increase in enrollment for full day kindergarten over the past couple years and they need space to put them or else they are going to have to do a lottery system. Nancy Docktor of Pearl Street said other states have had lawsuits over charging for full day kindergarten so she does not think it is responsible for the town to fund this when we can't count on tuition if Mass ever has a lawsuit and we have to stop charging. Mr. Caruso wanted to note that having tuition free Kindergarten would not change our Chapter 70 funding as we thought it would, because Reading makes too much money. Dr. Doherty noted that is also why we are only getting $25/ per student from State Aid. Mr. Arena stated if we are not going to get a lot of State Aid why wouldn't we make it available to as many students as possible so we can pull in their tuition. Mr. LeLacheur noted that if we were to offer free full day kindergarten it would cost about $120 extra per household to taxpayers. Mr. McNeice said ' there seems to be such a high demand for full day kindergarten with parents willing to pay the tuition, why would we not make. space for those kids? Mr. Dockser asked if they have looked into costing for used modular instead of buying brand new ones. Ms. Syburt stated she only found one vendor that has used modulars and they would be available in March which would be good for our timeline, however she does not have the cost differences for those. She also noted the life expectancy of a modular that is taken care of is 20 -25 years. Assistant Town Manager Jean Delios noted that the modulars are considered structures and would need to follow all building codes. Fire Chief Greg Burns noted that it is too early to have any concerns other than making sure there is fire access to all modulars. Mr. Halsey moved to close the warrant for Special Town Meeting for February 23`d at 7.30 PM in the Performing Arts Center at RMHS consisting of 6 articles, second by Mr. Sexton and approved with a 3 -0 -0 vote. Ms Herrick made a motion to recommend Article 5, second by Ms. Perry-, and approved with an 8 -0 -0 vote. Ms. Perry will report to Town Meeting on Article S. Ms Herrick made a motion to recommend Article 6 second by Ms. Landry, and approved with an 8 -0 -0 vote. Mr. Dockser will report on Article 6 to Town Meeting. Mr. Arena noted free cash is meant for a one time use /emergency and these modular classrooms qualify as that. Mr. Halsey said we are going to have a $200,000 shortfall annually if we don't do this and we'd have to go to free cash for that anyway so why not get the modulars. Ms. Herrick wanted to know if free cash is the right place for this to be coming from though or if there is a better place to find the money. �5 Page 1 3 Finance Committee Minutes - January 21 2015 - page 4 Mr. McNeice stated he does not like the idea of leasing the modulars and would rather us use the free cash now and buy them. Ms. Landry said she would like to make it known that she has heard a lot of positive community comment in support of these modulars. Bill Brown asked to speak to FINCOM about the Cemetery Department and what they are asking for. He stated they are asking for $2 Million for a new building based on estimates from Town Engineer George Zambouras. He noted the building is safe but it is falling down and the truck does not fit in the building. He told FINCOM the most recent renovations on the building were back in the 60's when they only had two cemeteries but now we have four. Mr. LeLacheur stated this is something that should go before the Permanent Building Committee. Mr. LeLacheur explained Article 3. Article 3 states there is a $1 million premium on the $10 million we sold for the library project. We can either borrow the $1 Million now or in 2 years at an unsure interest rate. Mr. LeLacheur said he would rather do it now so we don't have to borrow more in the future. Ms. Landry made a motion to recommend Article 3 second by Ms Herrick approved by a vote of 8 -0 -0. Ms. Herrick will report on this article to Town Meeting. Ms. Landry made a motion to recommend Article 4 second by Mr. McNeice approved with an 8 -0 -0 vote. Mr. McNeice will report on Article 4 to Town Meeting. Mr. McNeice made a motion to adiourn at 10 pm, second by Ms Landry and approved with an 8 -0 -0 vote. Respectfully submitted, Secretary D- 1 A (0-. 1-0 I r u k Town of Reading gip= Meeting Posting with Agenda r R" Board - Committee - Commission - Council: Finance Committee Date: 2015 -03 -04 Time: 7:00 PM Building: Pleasant Street Senior Center Location: Great Room Address: 49 Pleasant Street Purpose: FY16 Budget Meeting Meeting Called By: Caitlin Saunders on behalf of Chairman Mark Dockser i�;ECEIVED TOWN CLERK __DING, MASS. 1011 MAR -2 A cl; 3b 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) 2) Discussion/Action Items a) Introduce new FINCOM member (Dockser) b) FY16 Budget meeting schedule (Dockser) c) FY16 Budget overview (LeLacheur) Benefits, Capital, Debt (LeLacheur)C4 Public Services (Delios) �''jj Administrative Services (LeLacheur) Finance (Angstrom) Public Safety (Cormier & Burns) Public Works (Zager) Public Library (Urell & Trustees) Enterprise Funds (LeLacheur) Approval of Minutes a) January 14, 2015 b) January 21, 2015 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 Birch Meadow Complex How to add much - needed recreation space without building a new field Birch Meadow Complex The background • Previous Master Plan conducted by and approved by Board of Selectmen • Current funding is $2.3 million in the Capital Plan (page 35 of Town Manager budget) for FY17 through FY25 • New Town Manager and Board asked the Recreation Committee to examine that Master Plan - Summer 2014 • Master Plan Review not finalized, but suggestions include: — Do NOT move the fields slightly (limited improvements, high cost) — Add more field lighting than was initially proposed Birch Meadow Complex The demand for space • In -town activities continue to expand at over 10% /year • Over 2,000 participants - Softball fields alone! • The unmet demand is even higher Birch Meadow Complex The opportunity • Add 4 -5 extra hours /night in the fall (per unlit field) Add 2 -3 extra hours /night in the spring & summer • Economies of scale to combine lighting work on fields • For existing lighting - energy savings similar to performance contracting • Recreation revenues — Increased 'sales' — Rec Committee will consider raising fees — All surplus goes back to General Fund annually (- 75k/yr now) • Improved aesthetics for area 3/4/2015 1 Birch Meadow Complex Vendor Actual Quotes for System (Installed) 3/4/2015 Birch Meadow Complex Town Manager comments Current Capital Plan $2.3 million $1.0 mil. Field work (Includes some lighting costs) $500k Pavillion $2301k Basketball /Multipurpose courts $150k softball field lights $1501k tennis court lights $ 70k Morton Field Improvements ($110k total - $401k donations) $2001k othedmisc. n Now FY17 (A) Street and Lot Fields $225,000 $245,000 (B) Softball Field $175,000 $190,000 (C) Morton Field $275,000 $300,000 (D) Little League Field $150,000 $170,000 (E) Turf 2 $180,000 $200.000 TOTAL PROJECT —$1.0 mil. $1.1 mil. 3/4/2015 Birch Meadow Complex Town Manager comments Current Capital Plan $2.3 million $1.0 mil. Field work (Includes some lighting costs) $500k Pavillion $2301k Basketball /Multipurpose courts $150k softball field lights $1501k tennis court lights $ 70k Morton Field Improvements ($110k total - $401k donations) $2001k othedmisc. n Birch Meadow Complex Town Manager comments New Capital Plan Field work: eliminate moving the fields = BIG savings > no change in usage or revenues add lighting to other areas (Little League, Turf 2) > Increased field usage & net revenues Pavillion community discussion for details Tennis Courts as needed Basketball Courts as needed Birch Meadow Complex Town Manager comments Priorities Make sure our Recreation space is safe to use. How can we generate more sustainable revenue? Where can we be more efficient spending ongoing operating costs? What are the priorities of Reading Residents? Funding strategy for entire project April 2015: Use free cash for highest priorities November 2015: Use free cash if good regeneration /new growth April 2016: debt for Master Plan results 3/4/2015 Birch Meadow Complex Town Manager comments FINCOM Financial Forum: Community Brainstorming s.ma.a papmaee mea.. p «a. I,m b.i- mm m r„e ear u„a<rer... - eele awa, ggnn, a.rn,ea, M. �o sro��w O RSf q.unod -rwm, apace, menuea �.z5upar�mme.�, ww wp 0 x. 12 Special fe space �xao.�u inls/MUew.,r O Senor bwsing /va auon B Sa �z *o.�ra.au. ala�.laur, g g rice counulling'pamiery prevennan 0g elwus wor4brtt ouN ^ zx „ya.,.. pla�e,.or, g g pooh ab.iviaies m wp.�.e a abaaa ,x cuN, gxp.a o o fl r 0 -111e 0 AIV. is space 0 -.1 gograms Birch Meadow Complex Our goal is to enhance the recreational opportunity to our crown jewel — the Birch Meadow complex. Our current 30 year old system is antiquated, inefficient, and at times unsafe. This project not only brings functionality & expanded use, but it also allows us to remove the unsightly telephone poles, lire bumpers and overhead wires. step: Board of Selectmen presentation March 201 Stay tuned: Board of Selectmen "Reading 2020" BIG Ideasl