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Home My WebLink About2015-10-28 Finance Committee PacketTown of Reading ' Meeting Posting with Agenda 3a RECEIVED °jq,acac.odho TOWN CLERK Board - Committee - Commission - Council: READING, MASS. Board of Selectmen ZUIS OCT 2b A & W Date: 2015 -10 -28 Time: 7:30 PM Building: Pleasant Street Senior Center Location: Great Room Address: 49 Pleasant Street Purpose: Financial Forum Meeting Called By: Caitlin Saunders on behalf of Chairman Dan Ensminger 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. Review FYSS - Angstrom 2. Preview FY17 - Lelacheur 3. Discuss Override - Board of Selectmen 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 I 1 LeLacheur, Bob From: recapdata @docstate.ma.us Sent Tuesday, October 20, 2015 3:36 PM To: Reading - Selectmen; Assessor; Heffernan, Nancy; LeLacheur, Bob; Finance; Angstrom, Sharon; Santaniello, Victor; dlsitgroup @dor.state.ma.us Subject: Freecash Approval Notification for Reading Attachments: Reading FC 6- 30- 15.pdf Massachusetts Deuartment of Revenue Division of Local Services Mark Nunnelly, Commissioner of Revenue Sean R. Cronin, Senior Deputy Commissioner of Local Services Tuesday, October 20, 2015 Sharon Angstrom Accountant Town of Reading Re: NOTIFICATION OF FREE CASH APPROVAL - Reading Based upon the unaudited balance sheet submitted, I hereby certify that the amount of available funds or "free cash" as of July 1, 2015 or the n of Reading is: ,, Q�w General Fund 6,765,913 Water Enterprise Fu $ 3,205,953 Sewer Enterprise Fu $4,039,512 Lisa, `�' Aj'f�fBt%•TM 1° ' Storm Water _ Enterprise F $ 951,526 - This certification is in accordance with the provisions of G. L. Chapter 59, §23, as amended. Certification letters will be e- mailed to the mayor /manager, board of selectmen, prudential committee, finance director and treasurer immediately upon approval, provided an e-mail address is reported in DLS' Local Officials Directory. Please forward to other officials that you deem appropriate. Sincerely, Anthony A. Rassias Deputy Director of Accounts cc: This email and any flies transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the system manager at posarmeder at doretats.me.us. 9 Town of Reading, Massachusetts Statement of Revenues and Expenditures - Budgetary Basis General Fund Year Ended June 30, 2015 M Variance Actual and Favorable Budget Encumbrances (unfavorable) Revenues: $ 681,625 $ 545,574 $ (136,051) Property taxes. 57,455,318 57,835,058 379,740 Current - 200,520 200,520 Delinquent 3,143,083 3,378,535 235,452 Excise taxes 350,000 355,968 5,968 Meals tax Penalties and interest on taxes 180,000 294,751 114,751 Payments in lieu of taxes 330,000 334,458 1,880,385 4,458 213,635 Charges for services 1,666,750 145,000 - 171,605 26,605 Licenses and permits 13,382,318 13,612,031 229,713 Intergovernmental 17,292 17,292 Special assessments 100,000 109,958 9,958 Fines Investment income (including Stabilization interest) 100,000 198,273 98,273 248,011 248,011 Other Total revenues 77,534,094 79,1820419 1,646,325 - (1,648,325) Expenditures Current Year Only: 5,075,795 4,712,751 363,044 General government 9,473,641 9,360,006 113,635 Public safety 41,547,973 41,29,842 248,131 Education 6,856,700 6,565,084 291,616 Public works and facilities 702,300 599,314 102,986 Human services 2,489,860 2,223,172 266,688 Culture and recreation 14,044,252 13,936,496 107,756 Employee benefits 1,075,794 1,106,829 (31,035) Intergovernmental 2,952,730 2,937,592 15,138 Debt service Sub-total current In gen fund 84,219,045 82,741,086 1,477,959 Continuing Appropriations 0200 fund Unused (140,2119) .14028$ 0�niised Carryforward B Purchase Orders Total expenditures 84,219,045 1 82,600,797 1,618,248 1,618,248 Excess (deficiency) of revenues (6,684,951) (3,418,378) over expenditures 3,266,573 M IImporic Revenues Variance from original budget 2M 291E 2w 2aa 2a" PropeM tares. 262.`M1 141,899 363,4]6 22257 530,991 444,209 Motor Venice Excise Wes 82,330 486,623 50,982 370,081 555.928 235452 W.I. Tax 6 months est M 140k P<tuat was 172k car 2011 In 2012 a wneervatve ubm to was rnede given de I of hiMm l doh 32,710 123,293 42,781 10.249 5,989 Promotion and ireeert ch Wes 49,528 41.836 27,401 17,647 95,992 114,751 Payments in also of Wes 23,270 12,291 31,80 7,186 8,639 4,456 GMT., for services 94,337 61Mt 92,603 12.960 89,W4 213,635 Lianxa and Wraft 25,594 138 9,923 57,196 30.531 28,805 InleryovernmaMal(incluses$We Aid 6 Medical Ramp) -315.500 89.716 256,712 6169 172943 79,713 IrW.rgovemmenhl(Smartgr Reimb) 0 0 0 4591000 1501000 15.000 Speoal assessments -252 .1457 2,972 7,436 KOS 17,292 Fine. 40,297 .18,410 .14,475 42.282 15,324 9,968 Investmentinmme 59,403 - 28,728 418,794 7.859 46,402 98,273 Offer 10].877 303.311 14.983 119,732 86,268 248,011 Tout revenue variance fran budgeted amount -1571813 1.126,616 1,024,986 1,1}6,800 1,830,]98 1,64412b Property taxes. Pmperry Taxes calMed in prior years ware mae man brdge bar m of our wnsena6ve eshm. h in the gr on new tanble proparbes. to FY13, new growm was 6u0pe0etl aa.er N acNel and many o batemenp were settled seduung FY13 revenues. In FY14 $255k in tlelinP+ad taxes were Capitol said apparel, 5 0k mom in wncnt year tyres thin budgeted In FY15 $2011, in Oairxryant taxes were wlleded arq awrox 52441, rmxae b Ivnent Sear tacos Man budgeletl. Mona Veride Excse nixes MV Excise was M 29 millon M 5 years then dropped to 27 million In 2009 and 2.5 million in 2010 Back up b 2.9 in 2011 down again In 2012 p 2.8 milkon and up again a 3.0 million In 2013. In 2014 3 3 million was wllecbtl which Is 812 %inceas. over Vie acNal receipts ham me pion GV. In 2015 jug urger 334 million was mlleaed $235k ova budget. Wals Tax 6 months est M 140k P<tuat was 172k car 2011 In 2012 a wneervatve ubm to was rnede given de I of hiMm l doh asu8ing in a $1231, sun us. In FY13, r s tact was budgeted based on me prior yea resulting in a sr [W surplus. FY14 budged was based w FYt3 achal receipts wim a 4 %increase me FY14 =uals Wi shod his year as me Indeed was only 3 %over PY actuala Actual reraiph in 2015 came injust ESk above prgec5on Penalties artl interest are dependent on anal decades In pry o6 old lax kabiliUes and therefore. very unpredic}ede. PeralLes acct mterost on taxes Charges for servies inulde Parmila from me Inspection department which are dependent on ewnOmid ceremony. In 2015 RvMUes for building inapecLOns ante in $128k over budget and revenues fir importance came In E45k aver butlget. Cheaper for servces Intergoxemmenhl firldudes State Pod 4 Medsoo, d Reimb) State Aid is net krnwn during the budget rlwMdpmeM 2009 had 9c Clab(Md year Way made by curs office.) In 2012. Mare was a one time shle aid sumdus pmt of 198K In FY 14 $1341, in FEW funds were mreived Mat were rot butlgetetl fa. In FY15 Mon igid Reimbursements came in $821, over budget Intergovemmenhl(Includes Small GmoMh Ramp) Srmed Growtn'muntive is net bdgeted MaE the tlmirg is urrcetain. Smarr GraWrreceiphinF l3wem3459k.FY14$150 Investments a Lderest raps tar Mss Sy r period .1 ban 6 %b less man l Is, We pan• interest on moray we baraw for pgects (eg High Stlad Con., Energy Improvements. Lamery, Project) We dal rot inGUde interest on borrowed funds when bgpepng revenues Eecuse 4 is not sushinahe. Other Otner income iseljoes one -0rre, InanSdWted, non- rewning, inwhament revenues. Insunna Dividends, MIIA re..ares. legal monomers, marrona mnt of adorn year egamdlrwas end FEW reimbMae4nenh. O IOi11M15 "N158ta erbw.tlal... Expenditures Varianm from original budget 2M 2022 2022 2923 2w 2RU Gaaaal goverment MI,W3 182.290 134,225 198,55¢ 300,818 363.044 Puttlicsaky 117,993 66.062 54,142 79,757 218.801 119,635 EWOlion 2116,158 11,132 W,565 24.113 593.851 248.131 Public wads and fadlltla 189,609 246,162 534,225 302,794 319,665 291,616 Human survida 27,353 21,062 44,607 119,050 49.291 102,966 Culture and maratnn 23654 12,303 7,302 33,515 48.106 266,698 Empotee tensfik 214,982 160,834 15,621 474.215 306,743 107,756 Intergovernmental 50,717 -2,494 14,385 21.449 11.438 31835. Not arvv. 19.644 4,558 41,750 13,708 81 15,136 Total expenditure variance from budget amount 1,182,113 10.914 1.051,680 1.281,155 1,84860 1,4",808 Sum of Revenue a Espermiture Varknees 1,O9e,s00 1,69,490 2086A15 2,392955 3,679,278 3,12,284 OrlYllQptS FrN1uflWPtineou.., Fmi Aeserve Fund uropent FY 10 Me FY11 IO FY1274K FY13$INK FY 14593K and FY15 SIR 1h. 825k from pMOUrenler4 audit FY13 Unuan h br CaMWy Garage In FY13 SlWK. FY14 UMBIed pa ms 2142k 8W dekye0 GIS General ga..n[ RinnesSM FY15 unfilled sessions 3/ 37ka1d8124kin unusdcapsel and notaardmi repairs. FY13Unused PDli�.reltipd Wa OURant Unused Sick9uyblWFireat$MK. FY14Unfmtposfcru9187kant $911 leftover from pDlid spaetl treiler. FY15 8551, in unfilled positions plus 56DK above budget of additional grant cuppdt Public sak1Y Edlxason FY09 ndd bad, cover re0lxtion in Skk Ak - Fy10 Emr9y caWrgc umunt b awertfn Edgy Impovemenl Loan Interest FY12 652K In unuxd eNrat inary minim (faalNes). FYI4 unused WM was bWgeted for out of dshid pladme" Nat dme p lover Nan apltckd. FY15unlasenfuMS butlgeledbrlw[dhs plamr Natmmelnie ftnwpxtetl. Public wpds arm fauli4es FY10, FYI 1. FV12. FV13. FY14, FY16 Gso6ro pd. do so -seed oue 50K ascif year, trill lee havgy saMd Min FY10. 101( n FY11, 1121( M FY12, 78K in FY13, S42K in FY15. Untied oden52021(earner and cane r, FY14 SROOk kftavc Bin harWae FYtS 3541( kftover ham oanskr Cedue,•IWI - Unfilled positions in DPW Mecnanic and Cemekry skilled 113E in FY12 isi in FYt]. Enpkceirlp lud a reerelneM in FY13 and did rtd fill die Iklsitm Unfilled! positions in DPW MedW3 and insw montai Cemeteryradamraan mean W/C .1 10 mon,sin FY13. Unfilled passionsa 9661(. West J35kws rotenwmbered M Year eM F14RNdrokrer West 51bil FY14 68ok IehOV<r man dplkl ,,deb In FV1 it .under b disposal was wren budget by SiOl Human services on in Seem Samince, ant position NeetekMwrVeteran's Aid04oner Unfi8e0 in in FYin of Veterans salary 5121( and kftover Velaran'a Aitl 04 3741( Buinfide Flow Unused $ies ens 8Heate In FY13 of $79 uess, in F 9a9k (HeaIN Nurse artl Nude Advocate) Unfi6 L positonc in Culture and rxreatipn am m FYt] Unfilled n in Parka - Feld Impmvementa 320Uk tamed bark due bids Nan budget FY15 Killiam Fld Employre pedfik m Arl s Aid Rah tim $994,000 FY09ARRA funds Paid TeaNa Heals lA T.a eoffset r Ma FYU Wwka Come 50k Heals ins ]3k Towns Maan for Medicare .F W6mer Comp 17k Heats ins 621, Towns Mann for Mediram 26k, UnemDloymat 44k, Lib Ineuranm 17k, 26k ord 1tkeaiiins2 Y13woouBerefik kTelamehn191( -FY1 Worker Comes 69F Mats iv 223k Tows I4aRt Ica Medicare 961,, Unemp,ymes 43k, lak IIIwMnd 7k, NandMdb BC 321( c FY1a Woke C Comp 4Th Heals ns 115XTgwa ktaldr br Medeara 56k, Nondnnt Berrefik 151(, PolimrFim IrlOpmifKetm 151( -0 worker Comp Heats ins Inkr9ovemmenkl Re sse Stlml PasamwM Ioorr Water Po FYI t Ckar4sr19dad Claim A Cielok WxngMM - Ise et, God semde refinancing Knoll nett FYI fa ruse 0, Bud Ytludif a9r�WS b efin eat its e6ew m ErKRy IrrprppnaM Deq FY1241 W awfla n ce 0312411( plilserlat savings allntubde, mfirondrq M long tern debt Ofirmat OrlYllQptS FrN1uflWPtineou.., Amount $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 0102 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Fiscal Year QSSJrr -01 Fiscal Year June 30 0j 000 1995 1,755 1996 2,100 1997 2,240 1998 1,967 1999 1,101 2000 1,464 2001 986 2002 1,288 2003 1,704 2004 2.339 2005 2,634 2006 3,234 2007 4,863 2008 5,267 2009 5,189 2010 4,953 2011 5,499 2012 6,535 2013 7,585 2014 8,531 2015 8,766 CK rSat 2016 7,365 $2milb III 4I.SMrI � nyewaalrr tk 0 YaMb a cinpn �� cmn.a'r,.mn• buua ,n. or, unmiv✓ ,x�w L.y.m1 vaw vsVf, vv.r.a �ww v >im e3lAil a..Vlai ls.M.m asn.W ,ww .1t,m aMU. ..aY.ru u33.ru '"e J" �•. .ue..0 .»l.au lam +,uY r... ,..ev: ..n.n. mw ss.m saA �::'c'm "' DOAL IS1J13 'Ym un a. AR .am.® ,w LMYI 1J6M I i.Ma I }Yayi I.dYem aMm v s{�Li )SIMW S,LTIY LTAna Lid as ]TAY )SMw I�STFiI 1laa� YaIM omNa.mW me ✓rx. .,myul Lla.ax Law.ln ay)LS Y, .ariM .>Ow IMJn WJO }f }p aRS.ry alY s� O One Yr One Yr 4,511.541 ;hanges I Requested Changes I Nov. TM Revised I FY15 FY16 FY16 Chances FY16 Total property Tax es 4.6 %I 61,517,780 5.5 %I $ 412,485 $61,930,265 Total Other Local Revenue 8.3% 6,362,500 4.0% $ - $ 6,362,500 Total lnteroJl Revenues 1.4% 13,612,031 2.5% $ - $13,612,031 Total Transfers B Available -22.3% 3,679,131 -2.0% $ 109.4 $ 3,779,131 Debt -18.8% 4,511.541 40.0% 0 $ 4,511,541 Energy -2.1%1 1,985,858 4.6% (85,000) $ 1,900,858 Financial 3.3% I 810,000 4.5% 150,000 $ 960,000 Education - Out or district 7.2% 4,008,269 3.9% 0 $ 4,008,269 Education - Vocational 25.8% 490,350 5.0% 0 3 490,350 ODerat1110 Costs Y HR Gon'ISt $62k; Purchasing $24k; a* E Municipal Go'vl Operating J.5%J 16,971,528 2.75% $ adjustments (comm. prior $ 506,000 11,709 $ adjustments lent funds on 3.5% 874,611 2.75% $19,724,523 TOTAL Muni Government 5.2% 17,857,948 2.82% School B Bldgs Operating 3.5% 36,307,917 2.75% $ adjustments (comm. priori (905,766) $35,402,151 Schools circud breakeredjustment for FY12 TOTAL School " "d s e 4.1% 36,307,917 2.75% Town Bldgs Operating l- -6.7% 454,909 6.95% $ adjustments (comm. prior TOTAL Town Bldas 3.5% 454,909 6.95% Municipal Govt Operatinj 1 32.69% School & Bldgs Operatin 66.47% T,..., atn.,. nnn.arinn T 1 0.83% 1W k; IppN S75k; Animal C11 E50k; DPW One $30k, PD $10k; $259kFac 1,360,675 $18,343,912 506,000 $ 506,000 $ 874,611 1,866,675 $19,724,523 (905,766) $35,402,151 S (905,766) $35,402,151 (454,909) $ 0 UUNYAylyA SLlS'jzltn4bk. K,re auRS 275% 25% 325% 3.25% Town of Reading Yr Draw One Yr One Yr One Yr One Yr One Yr Budget BVmmg One Changes Change. Chmgas Requested Changes Projected Changes Projected Chan9ee Projected Changes lowl55:12PM FY13 FY 14 FY75 FY76 FY16 FY17 1M77 FY70 FY78 FY19 FY19 Revenues 2.4% 4.6% 61,930,265 62% 63,984,267 3.3% 65,948,983 3.1% 67,984.756 3.1% Total Property Taxes 3.4% 51% 8.3% 6,362,500 4.0% 6,580,000 3.d% 6,792,500 3.2% 090,000 2.9% Total Other Local Reveooe -0.4% 1.1% 14% 13,612,031 25% 13,952,332 2.5% 14,301,140 25% 14,658.689 2.5% Total lnteigovI Revenues -01% 9.7% 3,779,131 0.6% 3,805,146 03% 3,836,287 0.8% 3,919,458 2.2% Total Transient B Available 7.3% 2.8% 28% -22.3% 2.7% 5858&1921 5.1% $80 3.1% 90 70 10 593,552, 29% Rev. baton Free Cash -9.2% 50.5% 61. % 2, All 65 29. 029% Free CaSh Net Available Revenues 25% 3.2% 3.5% S87.883,692 5.6% 28% 592,818,910 2.BY. 595,552883 2.9% Accommodated Costs 3.7% 1.4% d.5% 14,965,743 60% 15,908500 68% 16,919220 5.8% 17,811.575 5.3% Benefits 701.4% 21.6% .2.0% 2,889,250 25.2% 1,900,000 34.2% 2,350,OOD 237% 2,550,000 8.5% Capl7al -18.8% 4,511,547 40.D% 5.075,000 12.5% 4932315 -2.8% 4,818.933 -2.3% Debt -25.1% -12.5% 1.5% -21% 1,860,044 .2.0% 1,943,632 4.5% ZW9314 49% 2;111 4:9% Energy -4.7% 14% 3.3% 960,000 23.9% Btl,000 -155% 815,000 05% 040,000 3.1% Finarcial 34% 7.2% 4,008,259 3.9% 4,768,600 4.0% 4,335,344 4.0% 4,508,758 a.0% Education - Out of distml -02.9% 7.6% 14.2% 25.8% 490,350 5 0% 518.387 5.7% 594,306 5.0% 577,522 5.8% Education - Vocational -22.5% 3.2% 2.0%0.0% 2,957,184 0.6% 2,943.991 -0.2% 3,010080 2.5% 3,101715 �8% Miscellaneous Emantabd 1. 4 a J3, ,170 0 eratin Costs Munidpal Go,vl Opseacup 3.6% 335% 3.5% 18,343,912> 11.06% 19.462,534 33% 20,095.066 3.3% 2Q746158 3.5% adjustments (comm. Priority) 2.0% 6.6% 3.536 506.004; 874,651 --; 2.75% 903,036 3.3% 935,634 3.6% %9,292 3.6% a0lusOnents (and lands a✓e 5.7% 5A% 5.2 °G 19,724,57!` 17.56% 28385.570 3.7% 21,030,707 S.Sx 27,711,N9 3.3% TOTAL MUnI GOVemmem School 801dgs OperaSng 3.6% 3,75% 3.5 ",5 35,402,151. 0.19% 36,552721 33% 37,740,fi84 3.3% 38,967,257 3.3% adjushnenls l(,wnm. Pdodry) TOTAL School S Bldg$ 4.5% 4.3% Town Bkgs OPeratng Tag 3.6% 3.75% 4.1% -67% 35;402,157. 0.19% 38.552,721 33% 77,740,684 3.3% 38,967,357 3.3% adjustments (comm. PriOft TOTAL Town Bid 3.8% 4t.5% 4.9% 4.8% ].5% 1A% .. .. S55,126.674 3.76Y. 588,918,281 7.3% S ,771,,885% 3.3Y $80.684.'05 3.3% Operating Bud eta J5.T8'° 7 Munklpal KOpe ng fi4.22% fi4.22% 64.22Y. fi4.21% Sehopl8 Skills Operating 0.00% 0.00% Town Bldge Operating Target SPENDING 216% 7S% 3.MA 587,763,051 6.11% 590,267,101 2.9% 597,72/,961 38% 597,026A86 7.5% TOTAL FY17 Budget As of a late October 2015 examination of revenues and accommodated costs, the FY17 operating budgets look to be in the area of +3.25%. Recall the recent history for operating budgets is 2.75% in FY16 and between 3.5% and 3.75% during the three previous years. During that time, generally speaking, we have not added very many of the new services requested by the community, nor are we a shining example of staff retention. Thus the 3.25% outlook for FY17 could be said to be below what the situation calls for. A closer look at FY17 shows three important assumptions: 1) a use of $2 million in Free Cash to balance the budgets; 2) use of Free Cash to supplement any state aid shortfalls below +25%; and Free Cash to supplement any health insurance increases beyond 8% (we are seeing forecasts of double digit increases nationwide). Thus the use of Free Cash over and above reasonable regeneration assumptions is likely to be somewhere over $1.0 million. FY18 — FY20 Budgets The forecast beyond FY17 is bleak, with operating budgets expected to be in the +0.9% area. Some assumptions for these years revert back to financial best practices, which squeeze these operating budgets. For example, use of Free Cash to balance declines to $1.5 million in FY20, a level which may still be above expected regeneration. Budgets for OPEB contributions and Snow & Ice increase each year, as has been past practice. No capital funding is diverted from the 5% FINCOM policy. The FINCOM Reserve Fund is increased to $200,000 — it has remained at $150,000 for twenty years or more. Below is a depiction of the annual struggle of Operating Budgets under Prop 2.5 when Accommodated Costs are forecast at 'reasonably modest +5% increases'. The annual structural deficit is about $1 million each year. 9 p 80,000,000 Operating Budgets +3.5% annual growth (top line) versus those resulting from + Revs and +5 Accom. Costs(bottom) 75,000,000 70,000,000 65,000,000 60,000,000 55,000,000 50,000,000 1 2 3 45 6 7 8 9 30 9 p Unmet Needs In the FY15 budgets presented to Town Meeting in April 2015, both the Superintendent of Schools and Town Manager indicated their respective Operating budgets at +2.75 %were about $1 million (each) below a level desired by the community. Each indicated that there were additional new services requested by the community that were not included in those totals. Combine the $2 million current shortfall with some additional desire for new services and a $1 million annual structural deficit and the background for an operational override is present. Readings last operational override was 13 years ago, and one was forecast to be needed every 8 to 10 years at that time. Since then the Town has undergone significant strengthening of financial practices and operating procedures, and the time frame has been extended. Working against such internal efficiencies has been the large double -digit increases seen nationwide in health insurance. Reading has fared much better, but the trend is troubling. Currently the Reading voters have approved debt exclusions for the High School (about $1.3 million annually through FY24) and the Library ($1.5 million through FY25). Thus absent any other strategies, it could be said that ten years from now there may be a capacity for another operating override that could 'replace' those one -time exclusions. Finally, the Board of Selectmen have been working in Executive Sessions on some long term Real Estate projects that could bring additional revenues to the Town. However these are likely to be several years into the future. town of g•"iip Bud pSumma On•Tr On•1r 0•s1r 0n•rr Ow1r One Tr On•Yr N.Y, IMN1511:03AM Ch". t•ngn Chmgp R.,x CM,. proJs Ch•nM Prof g ChM Pm7MM C " Pm3Wtl Chmgr M3 MR FY115 HIS F1} E(]j EM His FY16 Q19 EM [TA1 Revenues Tdd Piapeq Tm 34% 24% 4.8% 61,93020 62% 0,9 ",M7 IN 6594983 3.1% 67,9 ",756 11% ]0,0]4,500 11% TddO Lard Peaua 44% 51% 89% 8,%;500 40% 6,566000 14% 6.730M IN 6,890,000 2.2% 7,032,500 22% Told lnpW Peeaxar 0.1% 1.1% t4% 13,612,031 25% 13,952,332 25% 14301140 25% 14,658669 25% 15.025,135 25% Top Tm &AVallahb 7.3% 9.2% - 223% &719131 aft INSM 07% 3,812716 0.2% 3,8]1,33] f.5% 3.931031 15% $vAflT 3.1% ^0.0%� Free Cmh 15M 50% 61.n 1 ]fi5 261 2 ODD -9.1 IM. 1]50, -125% 1.500000 - .3% WM•IMOYR•••nun 29% 2B% 36% sA 192 3.6% 1,70 2A% $92M" 27% 19. TOM 25% 59],563,16] 25% Amommodated Costs fienefib SM 11% 4MI 1AWO 80% 15,9K500 6.8% 171101M ].0% 18 W7,475 7.0% 1956838 7.p% C*W 104.4% 216% -20% 280150 MA 1906000 J M Z4 ,M M3% 2,600000 ON 285,W0 6.7% Oad -25.1% -125% -18.6% 46ll Ml 40A% O] 000 12. 4M,315 -20% 4814M 4.3% 4138714 .1 ]% Ercnry 4.]% 1.5% 21% 1,860044 20% 1,90,fi0 4.6% 2"6314 82% 2,1489 51% 225/,218 &0% Fiivndd &4% 1.4% IN 980,000 23.9% 811000 .1515% B].M 7.3% 933000 89% 905000 in Education- Mddishkl 429% 7.6% TM 4,004,269 IN 4,16&114 CA 43922M 50% 4611,883 50% 4. &2.48 5.0% Erlunhon VOZOOnd -225% 142% 25.8% Mw 5.096 518,367 M 5",338 an 5]1,522 50% 606098 50% 66s llaneous IN IN 40% 2 %11" 0.616 2943991 -02% 053091 11% 189913 1.5% 3,329,551 44% s 22% 0 radn g Costs Munkim GO'W Ope, 36% 175% 15% 11.06% 19,462,534 3.3% 19,01,69] 0.9% 19,814,436 0.9% 19,992]66 ON a4usN N loamm pdodhl a9ustmenls (entfuMSO.a 20% 6.6% IN 2.75% 903,06 3.3% 912063 1.0% 921,171 1.0% 93630 1.0:6 TOTA WMGOVa• 57% 56% 52% 13.56% M,365,570 3A% 26519]60 0A% M,3356" 0.9% 20,9M.1" OA% 51od 8 Bkgs ome ng 16% 175% 3.5% 0.19% 35552,]21 in 36016% 0.9% 3],213,01 0.9% 37,54850 0.9% atll lwmm. piodryl X Sch TOTABWVOl1 45% 41% 41% 0.19% ",552,Y41 31% M,"1,695 OA% 311U,"1 0.9% 17,511932 OAX ngT iary Toj-g Sfi% 3.75% b.7% %Opa. minsmwn %(panm. wadN) TOTAL Tam BI • IA% 49% 398 536915,291 1.116 Munklpe GoMOpw•Bng MM 35.76% 3576% 1511% 1571% 9dreol&Mdgs0,M ng 6422% 64.22% 6422% 6412% WA Twm OM n Ta M OAO% 0.00% O.M OAM.6 OAO% TOTMSPEXOIXG I 24% IN 1O% 1 tR7� 0.10% S90 61,915 29% 59287 76 M 59512)7" 2Sf4 S97 m% 60 .1 office of the Town Manager 781- 942.9043 16 Lowell Street townmanager@ci.reading.ma.us ° °•'•r Reading, MA 01867 www.readingma.gov /town - manager PBC October 22n° Members present: Chair Greg Stepler, Michael Bean, Brad Congdon, John Coote, Patrick Tompkins and Nancy Twomey Member absent: David Traniello Others present: Town Manager Bob LeLacheur, DPW Supervisor of Parks, Forestry and Cemeteries Bob Keating, Facilities Director Joe Huggins, Board of Cemeteries Trustee Bill Brown Mr. Keating gave a history of Reading cemeteries, and responded to some questions from the PBC. He followed that with an overview of vehicles that include two dump trucks, one pickup truck and a large back hoe. They also have lots of smaller equipment classified as either burial or grounds keeping in nature. He noted that their business is labor intense. Ms. Twomey asked if the equipment was getting larger, and he replied that it was. Another change Is that the crews are now a travelling landscaping show of sorts, with much of the equipment carried on vehicles requiring that larger size. Mr. Tompkins asked which cemetery required the most work, Including both burials and landscaping, and Mr. Keating replied that it was Laurel Hill. At 20 acres it was much larger than other cemeteries, even though there were less burials there. He added that most communities have alternative to public cemeteries (such as private or religious) but Reading does not. Mr. Coote asked if all cemeteries could have a garage except for land constraints, and Mr. Keating said that they could. However conservation and other limitations narrow the practical choices to Laurel Hill and Forest Glen. Mr. Coote asked how large a facility should be and Mr. Keating replied 4,000 sqaure feet. Mr. Coote asked about heated space and Mr. Keating replied that was needed only for the diesel (larger) vehicles. Mr. Stepler asked about seasonal equipment and Mr. Keating replied that leaf blowing equipment was stored December through March, depending on the weather. Mr: Coote said that Forest Glen would be the least attractive location because placed on a high rise would dominate the view. From his experience the best place is the old place, where something is already and Mr. Keating agreed. Mr. Brown said that Medford had an 80 acre cemetery with a maintenance garage front and center in that location, and Mr. Coote replied that the example didn't mean we should copy it. Ms. Twomey said the PBC should first determine what are trying to achieve on the location, and to certainly consider the neighborhood impact. She encouraged creative thinking on the multiple sites. 13 Mr. Stepler asked about open trailers and Mr. Keating described the current use, where they must load and unload every day because of space constraints, but at the DPW garage some equipment may stay on the trailers for overnight storage. Mr. Congdon asked if a closed trailer would be better, and Mr. Keating replied that travel was not a big deal as the cemeteries are closer together, and the security is better in one location. Mr. Congdon asked about staffing and Mr. Keating replied that there are four full -time and two seasonal employees in the division. Mr. Stepler asked about the need for ADA compliance in a new building, and Mr. Huggins replied that it would need to be fully compliant. Mr. Tompkins asked if Mr. Keating should move his office there from Town Hall, and he replied that it was best kept at Town Hail because he sat with multiple other DPW divisions that he interacted with daily. Mr. Stepler said the goal would be to optimize the footprint of a facility for the equipment and easy access to it. Mr. Keating said they had not previously studied that aspect of the issue. Mr. Brown reminded the PBC about the tour offer on 10/31 at 11am, and members indicated they would attend. Mr. LeLacheur suggested they park and meet at Town Hall. Mr. Keating left the meeting at Sam, thanked by the PBC. Mr. Tompkins said that Weston and Sampson had suggested design funding would be in the area of $1361k to 5150k for a building project. Mr. LeLacheur sair4that Town Meeting would strongly prefer that a thorough job was done up front and that amount should be increased to $200k, and Ms. Twomey agreed. This would allow construction documents to be completed. Mr. LeLacheur gave a brief financial overview and how this idea would fit into the upcoming Town Meeting. (Associate member Bean was also in favor) r Brown suggested he would move to indefinitely postpone Article 13 at November Town Meeting. Mr. Tompkins left the meeting at 8:15pm. Ms. Twomey described the process of CPDC Public Hearings, and what type of information would be discussed about a proposed building, and how the neighborhood impact would be considered. Mr. Brown left the meeting at 8:25pm. Mr. Stepler went to the white board and began outlining the following processes for the PBC: Prolect Development 1. Need /issue identified — who has the right to do this? What criteria are used, may the PBC decline to consider the request? The PBC would like to standardize the format for input here. 2. Data collection — clarify the roles and responsibilities of the parties at this step l` 3. Evaluation — request funding 4. Report — deliver to whom? Selectmen, Town Meeting... Project Management 1. Project approval —Town Meeting, possibly the voters 2. Procurement —RFP, OPM, design consultant 3. Oversight— define PBC role 4. Post mortem— lessons learned, changes needed. Consider bylaw revision Nov. 2016 as needed Ms. Twomey thought the Library Building Committee experience has been generally positive, although she had a concern that in the early stages they were very much left out of the loop, when the architect and the Library seemed to be In charge. The Town Manager agreed with her observation and that he often felt the same way. Ms. Twomey would have liked to be included more in design questions and the upfront work, but said the monitoring of the project and the OPM are going very well Mr. Stepler agreed with her observations and said the PBC should use a process whereby all Town staff should work together early on to avoid LBC mistakes, such as the design before consulting with the Police and Fire Chiefs. (Associate member Bean was also in favor) was also in favor) Mr. Coote moved to adjourn at :35om seconded by Ms Twomey and approved by a 4 -0-O vote. Mr Ensm nger moved to adjourn at 7-20pm seconded by Mr. Foulds and approved by a 2-0-0 vote. l5 Bylaw Committee Report: No report. ARTICLE 3 To see if the Town will vote to amend the FY 2016 -26 Capital Improvements Program as provided for in Section 7.7 of the Reading Home Rule Charter and as previously amended, or take any other action with respect thereto. - Board of Selectmen Backaround: This Article is included in every Town Meeting Warrant. The Reading General Bylaw (section 6.1.3) states "... No funds may be appropriated for any capital item unless such' item is included in the Capital Improvements Program, and is scheduled for funding in the Fiscal Year in which the appropriation is to be made." Bond ratings agencies also want to ensure that changes to a long -term CIP are adequately described. The following changes are r lus ten $175, 060 School & Town technology ($100,000 snarea alsaster recovery sysreu phone project includes new Library; $15,000 Town data security audit) $140,000 DPW Snow blower (supplement to 1999 snow blower) $ 60,000 Fac: Generator (Main St Fire station) $ 45,000 Fac: Condensate Tank (Coolidge) $ 40,000 Fac: Vehicle — Chevy K2500 $ 30,000 Fac: Masonry (RMHS) $ 28,250 DPW Fuel Canopy & Suppression System (costs shared with RMLD) $ 25,000 DPW Vehicle — Ford Escape $ 15,000 Fac: Masonry (Parker) -$ 15,000 Fac: HVAC (Barrows) -$ 15,000 Fac: Flooring (Parker) -$ 40,000 Fac: Flooring (RMHS) \ 41-0 mil. Cemetery garage as debt & other sources of funding (increased from $1.5 million \ -0` moved up from FY18) — please see Article 13 for a full discussion. 4527.400 yl. $350,000 Pub Svc Killam Field and parking lot repairs (Field not done in FY15) $150,000 DPW Snow Bombardier#1 (1993 moved up from FYI and increased by $25k) $ 75,000 School Technology biennial network upgrades (moved up from FY18) +$60,000 Fac: Fire Alarm panel (Joshua Eaton, total now $170,000) $ 36,000 School Passenger Van $ 35,000 DPW Forklift +$ 12,600 Add funding for DPW Bobcat Loader 743 (1987; now $45k) $ 10,000 Fac: DPW door repairs (DPW) +$ 5,000 Add funding for DPW Dump Truck C3 (now $65k) - $ 20,000 Reduce funding for DPW Aerial Pickup Truck (now $80k) -$ 20,000 Fac: Pleasant Street Center HVAC (defer to FY18) -$ 34.000 DPW Eliminate Ford sedan Car#2 (2007) replacement 10 -$ 36,500 DPW Eliminate HV3 Ford van (1997) replacement -$ 41,500 Public Safety (Fire) Vehicle (defer to FY18) -$ 50,000 DPW Yard Improvements (defer to FY18) -$ 50,000 DPW Road Improvements -$ 60,000 Fac: West Side Fire station roofing (defer to FY19 as debt) -$ 60,000 Fac: Flooring (RMHS) - $100,000 Town Technology biennial network upgrades (moved up to FY16) - $115,000 DPW Truck #10 (defer to FY18 and add $35k) - $120,000 DPW Chipper (defer to FY18) - $134,000 Fac: Main Street Fire station roofing (defer to FY19 as debt) - $420,000 Fac: Town Hall roofing (defer to FYI gas debt) FY18+ Various FY17: None Funds - FY1s• +s1.z15.000 SCADA for sewer station rehab projects & Sewer station projects for Batchelder and West Street $1,215,000 (note that $782,000 of funds previously allocated to these projects were turned back to Sewer Reserves in FY15) FY17:- 8345.000 $ 25,000 Portable generator for Grove St. Sewer station - $370,000 Sewer station repairs for Joseph's Way and Small Lane $3.0 million debt Charles Street & Sturges sewer station repairs (moved up from FY20 & FY18 and increased from $1.89 million) Enter rise Funds — Storm Water_ FY 76: None FY17. None FY18+ Various changes made Finance Committee Report: The Finance Committee recommends the proposed amendments to the FY 2016 — FY 2026 Capital Improvements Program by a vote of 6 -0 -0 at their meeting on October 14, 2015. Placing items in the Capital Improvement Program is a prerequisite but in itself does not authorize spending funds towards these items. Please see Article 13 for a more complete discussion about the cemetery garage issue. 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. Board of Selectmen Report: The Board of Selectmen on October 6, 2015 voted 5 -0 -0 to support this Article, with one exception. The Board does not support the proposed $2 million change in the capital plan for the cemetery garage, shown above as debt. For further discussion please see the Board's Report under Article 13. ARTICLE 4 To see if the Town will vote to raise and appropriate, transfer from available funds or otherwise provide a sum or sums of money to pay bills remaining unpaid from prior fiscal years for goods and services actually rendered to the Town, or take any other action with respect thereto. Board of Selectmen Background: In advance of Annual Town meeting in April 2015 the Town received an estimate for expected legal expenses for the balance of the fiscal year related to the ongoing RMHS construction project litigation. The Town received a June 2015 legal invoice in a timely fashion in the amount of $40,516.10 which far exceeded the earlier estimate and there were not sufficient funds to make payment. On September 10, 2015 the Fire department was notified that repairs made in January and February 2015 would not be covered by a warranty as had been expected, and shortly thereafter DPW received an invoice for $15,763.39 for these repairs. The Fire department appealed the invoice, and on September 30, 2015 they were told a. three -way settlement was being negotiated. Therefore this prior year invoice is in the amount of $5,254.46. A prior fiscal year bill was discovered by the School department in August 2015 — an invoice for $837.75 for Addiro Inc. Plumbing for services performed in August 2013 that was never paid. Lastly, a prior fiscal year bill was discovered by the DPW in September 2015 for unpaid May and June 2015 legal ads placed in a local newspaper for $861.90. Finance Committee Report: The Finance Committee recommends Article 4 by a vote of 6.0-0 at their meeting on October 14, 2015. Each of these bills is an obligation that should be paid by the Town, with a source of Free Cash. Please note that a 9/10 majority vote by Town Meeting is required to make these payments, which in total are $47,470.21. Bylaw Committee Report: No report. -Board of Selectmen Reports The Board of Selectmen on October 6, 2015 voted 5 -0 -0 to support this Article ral ARTICLE 5 To see if the Town will vote to amend the Town's Operating Budget for the Fiscal Year commencing July 1, 2015, as adopted under Article 20 of the Annual Town Meeting of April 27, 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: Account Line Description Decrease Increase # indicates Facilities Department changes PC: movin around a /class funds B99 — Benefits Retirement ($50,000) $ 85,000 Ex enses Worker Comp Premiums ($35,000 C99 — Capital School & Town technology $175,000 $48 Expenses ($100,000 shared disaster recovery system; $60,000 phone project includes new Library; $15,000 Town date secudly audit) DPW Snow blower $140,000 Fac: Generator (Main St Fire sta.) $60,000 Fac: Condensate Tank (Coolidge) $45,000 Facilities Vehicle —Chevy K2500 $40,000 Fac: Masonry (RMHS) $30,000 DPW Fuel Canopy/ Suppression System (costs shared with RMLD) $28,250 DPW Vehicle — Ford Escape $25,000 Fac: Masonry (Parker) $15,000 Fac: HVAC (Barrows) - $15,000 Fac: Flooring (Parker) - $15,000 Fac: Flooring (RMHS) - $40,000 F99 — FINCOM Replenish Reserves for Modular $150,000 Reserves classroom expenses $75,000 Increase Reserves for unforeseen expenses $75,000 G91 — Administrative PC: Fund all pay & class transfers $ 35,700 Services Wages $(55,000) _ PC: Fund pay & class results in this department $4,700 HR Generalist (shared Town /Schools) $82,000 #Upgrade Business Analyst position to be a Procurement Agent position (related to the addition of Facilities ) $24,000 G92 — Administrative Legal Services (RMHS litigation) $75,000 $ 80,000 Services Expenses Communication software license $ 5,000 H91 — Public PC: Fund pay & class results $19,200 $ 19,200 Services Wages A!1' pao"r. Ott t.pk.3 la H92 - Public 'Hazard Mitigation Planning consulting Decrease $ 25,000 Services Expenses services $25,000 - X99 Sewer 191 - Finance PC,. Fund pay & class results $12,010 $1,215,000 $ 12,010 Wages 192 - Finance Assessing Full Field Review in preparation $1 215,000 $ 88,000 Expenses for FY17 Revaluation $88,000 $1,215,000 J91 - Public Safety PC: Fund pay & class results $9,675 51,215,000 $ 9,675 Wa es J92 - Public Safely Police: regionalize Animal Control with $ 50,000 Expenses K91 ,- Public Works North Readin PC: Fund pay & class results $3,950 $ 3,950 wages K92 - Public Works Road line painting $30,000 $ 10,000 Expenses Professional development $10,000 Fuel $50,000 K94 -Public Works Street Lighting expenses ($35,000) $ 35,000 Street Lighting K95 - Public Works Rubbish disposal ($50,000) $ 50,000 Rubbish L91 -Libra Wa es P :Fund a &class results $5 465 $ 5,465 M91 - Core Facilities #Transfers from u99 Schools $1,948,199 $2,683,341 #Transfers from V99 Town Fac $525,142 #(a) Additions requested $110,000 # b Additions re uested $100,000 M92 Facilities: #Transfers from V99 Town Fac $252,835 $ 292,835 Town buildings #(a) Additions requested $ 40,000 U99 - School #Transfers to M91$1,948,199 $1,948,199 Department V99 -Town Facilities #Transfers to M91 $525,142 7 #Transfers to M92 $252,835 Subtotals L906 6 et O eratln Ex nses $4-83:;390' From Permits Revolving Fund From New Growth - 'iR+4 #(b) From Revenues from Rental of $100,000 School Properties via Free Cash From Free Cash SZ12�t50-" Gu�Ae_ Wfnua ➢nA FYn.nAan 4rt3,v7il, l,237iXO Account Line Description Decrease Increase X99 Sewer Sewer stations projects (Batchelder & West St) $1,215,000 and related SCADA for all sewer station rehabs Subtotals $0 $1 215,000 Net O eratln Ex 3enses $1,215,000 From Sewer Reserves (note +$433,000 is net 51,215,000 - request from previous capital Ian 0 14,000 13,000 12,000 - - - -. 11,000 10,000 9,000 - - -- 8,000 • - -_ __.. -__. 7,000 6,000 --■ ` -�glb 5,000 4,000 �- 300,000 400,OOD 500,000 Taxes paid versus SF Assessed values 600,000 700,000 80%000 900,000 1,000,000 %SF FY 15 1AvZSF Avg Tax 91 Concord 902,043 12,890 98 Lexington 820,368 12,191 94 Belmont 847,928 10,938 95 Winchester 872,118 10,588 80 over 8 80 Bedford 588,699 8,607 87 N Reading 482,670 8,022 87 Lynnfield 553,557 8,021 85 Westford 464,442 7,543 91 Reading'16 1 499,500 7,748 87 IN Andover 476,092 6,851 90 Rea in 15 464.2511 9.11M 85 Wakefield 416,013 5,608 89 Stoneham 417,488 5,411 82 Tewksbury 327,145 5.355 87 Shrewsbury 381,043 5,030 Reading change 935,249 $ 424 "breakeven" 83 years Data: Use DOR data from peer Communities north & west of Boston, as defined by independent consultants in the town's last two pay & Class studies; exclude Burlington, Danvers, Wilmington and Westborough because they have larger commercial tax bases (avg 30%+ versus <10% in Reading) Assumption: Assessed values of single family homes (SF) serve as a proxy for services provided by town & schools SF property taxes represent the cost of receiving those services Conclusion: Using 2015 data, Reading remained slightly below the trendline in taxes levied for the services provided Using 2016 data for Reading, values increased by $35,249 or +7.6% Using estimated 2016 pre Tax Classification data for Reading, taxes increased by $424 or +6.2% the reason for this large tax increase was the impact of the Library project debt exclusion It appears that even with the impact of the debt exclusion, Reading will remain below trendline Study the communities above for those most often cited by residents when discussing what quality and quantity ofservices they demand 9 Town of Reading Election and Town Meeting Calendar for 2016 Voter Nomination Last Day to Nomination Iclonse Regiatratbn Papers Obtain Papers Withdraw Last Day to Last Day to Closee Availabto No Nomination Due Name Event Event Date rr Waant Post Warrant -8:00 PM Later Than Papers - 5:00 PM - 5:00 PM Presidential Primary March 01 February 23 February 23 February 10 Town Election March 01 January 26 February 23 February 10 December 02 January 11 January 12 January 28 Annual Town Meeting April 25 January 26 February 23 April 28 May 02 May 05 State Primary Q September 20 September 13 September 13 August 31 State Election . .�NOVember 08 November 01 November 01 October 19 6rN r( Subsequent Town Meeting November 14 September 27 October 31 November 17 November 21 November 28 9 Town of Reading Meeting Minutes Board - committee commission - Council: Finance Committee Date: 2015 -10 -14 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Purpose: General Business Session: Attendees: Members - Present: Vice Chair Paul McNelce, Vanessa Alvarado, Peter Lydecker, Marc Moll, David Neshat, Anne Johnson -Landry (at 8:10PM) Members - Not Present: - Mark Docsker, Paula Perry, Craig Merry Others Present: Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, Administrative Assistant Caltlin Saunders, Bill Brown Minutes Resnectfally Submitted By: Topics of Discussion: Acting Chair Paul McNelce called the meeting to order at 7:30 PM. Mr. LeLacheur explained there are a few things from the Fire Department to be declared as surplus and one Item from DPW. Yr. Lydecker made a motion to declare the Items es surplus second by Mr. Neshat Mr. LeLacheur then explained the Warrant and said the only thing that has changed from the last time FINCOM has seen it is Article 3 changes to the Capital Plan; the generator for the Fire Department is new. Enterprise funds for Sewer changed because we added 5 years to the sewer project so rates would not increase. Now that prices are higher in the future we will do debt. Mr. Moll asked If we can get any financial help with the sewer project and Mr. LeLacheur noted no. Mr. LeLacheur noted the Board of Selectmen did not approve of the cemetery building. Article 4 Is the invoice for TLT that the town did not have sufficient enough funds to pay at the end of the year. Also the Fire Department found out a warranty doesn't cover something _ they expected it to cover. Chief Burns Is still working on It but It looks like we will need funds for that. Article 5 Is budget transfers. Line G91 is moving money around for the pay and class. Line 192 is new; it's for regionalizing animal control with North Reading. He noted this may or may not make it to Town Meeting. Mr. Neshat asked if this Is a really big problem. Mr. LeLacheur noted yes, It is higher than you would think. 2015 -10 -14 FINCOM Mlnules Page 1 O a3 Pape I 1 The regionalization would be a combo position with North Reading that would have three officers. Right now we only have one person part time. Ms. Alvarado asked after the initial $50,000 if we do this, how would this be funded In the future. Mr. LeLacheur noted it would go Into the base budget because it is reoccurring. Mr. Moll asked if this would save us money and Mr. LeLacheur answered It would not but we would be providing a better service. Article 12 is the Sutton Brook litigation. Town Counsel was negotiating and got more Information about the case. He suggested we settle. The Board of Selectmen supported the settlement In an executive session. Article 13 is to fund a new cemetery building from three sources. The Board of Selectmen voted not to support this article and wants It to go to the Permanent Building Committee. Mr. LeLacheur noted he would suggest, if the PBC and Cemetery Trustees are okay with it, asking for funds to do a design study and make sure this project Is done correctly. Mr. McNelce said he thinks FINCOM should follow the Selectmen and vote It down and let the PBC handle it while suggesting we get funds for a design study. Ms. Johnson - Landry arrives at 8:10 PM. Ms. Landry noted she thinks we should word our decision to vote against the cemetery building to say we encourage the PBC to propose a design study so that It does not sound like as long as they do a design study we will approve. Mr. Lydecker made A motion to recommend Article 3 to Subseauent Town Meeting In November, second by Mr. Moll and approved with a 6 -0 -0 vote Mr. Lydecker will report on this Article to Town Meeting. dr. Moll m dg a motion to recommend Article 4 to Subsequent Town Meeting in November second by Me Landry and aooroved with a 6 -0 -0 vote. Ms. Landry will report on this Article to Town Meeting. Moll made a motion to recommend Article 5 to Subseauent Town Meeting in November second by Mr. Lydecker and aooroved with a 6 -0 -0 vote. Mr. McNeice will report on this Article to Town Meeting. Mr, Moll made a motion to recommend Article 12 to Subseauent Town Meeting In November. dr. by Mr. Lydecker and approved with a 6 -0 -0 vote. Ms. Alvarado will report on this Article to Town Meeting. Mr. 12 to Subseguenj Town Meeting In ber, second by Mr. Lydecker and aooroved with a 6 -0 -0 vote. Mr. McNeice will report on this Article to Town Meeting. Town Accountant Sharon Angstrom explained the budget vs. actual for FY15. For revenues we were favorable In real estate, delinquent taxes, excise taxes and charges for services. She explained we do not budget for smart growth because it Is just too hard to predict. We were favorable in General Government, Public Safety and HR due to many vacant positions. We were favorable in DPW due to cheaper gas prices and snow and Ice leftovers. Culture and Recreation had a big project that was turned back. Free cash started at $8.5M and we spent about $2.8M so we only Increased free cash by about $200,000. 2015 -10 -14 FINCOM Minutes Page 2 Page 1 2 R Mr. LeLacheur then explained what will be happening at Town Meeting. We will be using $1 Million more of reserves. He then gave a preview of the Financial Forum. He noted some numbers will change before then. Revenues are up 3% which is okay. Accumulated costs are also at 3% which is probably too low. Right now we are looking at a 3% operating budget with a $2 Million free cash number. He noted he is currently waiting for an update from the schools. Mr. LeLacheur also said health Insurance will be another huge increase this year and we are still waiting for that number as well. FINCOM started discussing possibilities of asking for an override. Mr. McNelce noted we keep getting regeneration which Is saving us but the first year we don't get any we are going to be In trouble. Mr. LeLacheur said we have to think of the right way to frame how we ask for an override. Residents don't want to cut any services but we need more money to keep providing all of them. Ms. Alvarado said we need to think of ways to go about educating the residents about why we need the override because it seems like they don't think we NEED It. Mr. McNelce suggested we try getting people to come to the financial forums. Mr. LeLacheur noted we need to get the schools on board as well. Mr. Lvdeck!lr de motion to adjourn at 930PM second by Ms Landry and approved with a 6 -0 -0 vote. Respectfully submitted, Secretary Page 1 3 �� rpd Town of Reading Meeting Minutes �IMOP Board - Committee - Commission - Council: Finance Committee Date: 2015 -09 -16 Time: 7:30 PM Building: School - Coolidge Location: Conference Room ,Address: 89 Birch Meadow Drive Purpose: Financial Forum Session: Attendees: Members - Present: Chairman Mark Dockser, Vice Chair Paul McNeice, Paula Perry, Peter Lydecker, Marc Moll, Craig Merry, David Neshat, Vanessa Alvardo, Anne Johnson Landry Members - Not Present: Others Present: Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, Superintendent of Schools John Doherty, Facilities Director Joe Huggins, Assistant DPW Director Jane Kinsella, Director of Finance of Schools Martha Sybert, School Committee Members Linda Snow Dockser, Chuck Robinson, Elaine Webb, Gary Nihan, Jeanne Borawskl and Julianne Joyce, Selectmen Kevin Sexton, Dan Ensminger and Barry Berman, Administrative Assistant Caltlin Saunders, Nancy Docktor, BIII Brown and Stephen Crook. Minutes Respectfully Submitted Topics of Discussion: Chairman Mark Dockser called the meeting to order right after 7:30 PM. Chairman Chuck Robinson called the School Committee to order. Town Manager Bob LeLacheur explained that he and Superintended John Doherty have been talking about restructuring the Facilities Department. The restructuring would consist of creating a new Town Facilities Department that would be overseen by the Facilities Director and Supervised by both the Superintendent and Town Manager. The Town budget will Increase with facilities being added. Number wise, nothing will change with facilities, It will just be where it is shown in the budget. The Town added an Assistant Facilities Director position and another custodian. The new line Ml in the proposed FY16 will need to be voted on since it is truly shared costs. Joe Huggins Is going back to his position as Facilities Director and will answer to Mr. LeLacheur and Dr. Doherty. Chairman Dan Ensminger called the Board of Selectmen to order at 7:45 PM. Mr. LeLacheur then explained the changes being proposed to November Town Meeting under Article S. The Article proposed a net increase of $977,250 to the FY16 budgets. A total of $478,250 of Capital is being requested for technology and DPW equipment. An addition of $150,000 is being requested for FINCOM reserves In case the modular classrooms exceed their budget. Ongoing legal expenses in the amount of $75,000 are being requested for RMHS litigation. There Is a transfer request of $25,000 from the Permits Revolving Fund to Public Services to complete the Hazard Mitigation Planning work. The last Page I t 0;�D 2015 -09 -16 RNCOM Minutes Page 2 request of the total is $88,000 for consulting help for the Assessor's tri- annual revaluation. All of those expenses would be one -time. Mr. LeLacheur stated the Town and Schools are agreeing to share one more Human Resources person. Mr. Ensminger suggested using a graph to present this to Town Meeting. The meeting then talked about Article 5 which would be to see if Town Meeting will vote to amend the Town's Operating Budget. Une B99 would reduce the benefits cost. Technology would be using a large chunk for a shared disaster recovering system with the school and a phone project. Line G91, Administrative Services Wages, the Business Analyst position is being upgraded to a Procurement_ Officer. Mr. LeLacheur said the sewer projects came In higher than expected. Mr. Robinson asked what free cash is and Mr. LeLacheur said to subtract $850k from what the free cash number is today. He also noted It is possible we may use a little less depending on how the tax rates are set up. Ms. Alvarado asked where the money to fund all these new positions will come from next year after the Initial money we use from free rash. Mr. LeLacheur noted they will go into the budget next year because they are reoccurring costs. Ms. Alvarado then asked when all the projects we weren't able to do, get done, what will that do to free cash. Mr. LeLacheur said we will have to do less In those years. Ms. Alvarado asked when the committee will be able to see the free cash number. Ms. Angstrom said hopefully in October. Will Brown asked If the new Facilities Director will have any Impact on the new Assistant DPW Director position and Mr. LeLacheur answered no, the positions do not have anything to do with each other. Mr. Dockser noted he would like to get a handle on what is going on with the RMHS litigation and suggested a joint executive session to discuss it If possible. Taking a look at the warrant outline for Subsequent Town Meeting in November, Mr. LeLacheur explained Article 3 is to amend the FY16 -26 Capital Improvements program. A lot of numbers are being moved around because they are being deferred to other years. FY17 and beyond will have debt for sewer stations. Article 4 Is to vote to approve funds to pay a very large Invoice In the RMHS litigation that we were not expecting to be so high and did not have the funds to pay immediately. Article 12 will recommend Town Meeting to settle this litigation and pay the $125k which will most likely come from free cash. Article 13 is to see If the Town will approve to borrow $1.2 million for a new cemetery garage. Mr. LeLacheur noted on September 23 the Permanent Building Committee will be set up. He also asked if anyone has any ideas on how to present the new facilities to Town Meeting, feel free to suggest them. Mr. Ensminger made a motion to ar,0121 shared faclllties second by Mr. Berman and approved y4th a 3 -0 -0 vote. Lion to accent shared facilities rand by Mr. Mihan and approved with a 6 -0 -0 vote. O Page 1 2 � 1 2015 -09-16 FINCOM Minutes Page 3 Mr. Sexton made a motion for the Board of Selectmen to adtourn at 8.15 PM second by Mr. Berman and approved with a 3 -0 -0 vote. Dr. Doherty noted the Killiam kids will be in their modulars on Monday and all of the modulars will be up and running by the end of the month. The original plan approved $1.2 million for this project. The modulars were a little over a million which did not leave a lot to use on other things. Dr. Doherty explained with all the change orders they are at their $1.2 Million so tonight they are asking for $75,000 reserve fund transfer. Ms. Sybert explained there were unforeseen site conditions that required us to approve about $55,000 in change orders. They had to change the ramps at one of the schools and that cost $6,000. Then the project had 4" pipes but the Town standard Is 6" so that was a $10,000 change order. Dr. Doherty said they also hired a project manager. Mr. McNelce asked about the delay of the project and if the days we lost are legitimate. Dr. Doherty noted they approved a certain amount of days that had legitimate reasons and they also denied days for reasons they felt were their own . doing in delays. Ms. Johnson -Landry asked where the kids who will be going into the modulars are currently and Dr. Doherty said they have set up temporary classrooms In the gymnasium. Mr. McNiece made a .notion to transfer $75,000 for modu_la_r_s, second by Mr. Lvdecker and approved with a 9 -0 -0 vote. Ms Borawskl made a motion for the School Committee to adtourn at 8.30PM second by Ms. Webb and approved with a 6 -0 -0 vote. Mr. Dockser commented he does not feel comfortable making a recommendation on the RMHS litigation. He would like to look Into seeing If we have any other options since we keep paying out so much money. Mr. Neshat asked how we budget for this and Mr. Dockser said we don't because we just don't know how much it will be. Mr. LeLacheur noted we had money set aside but we cannot use it anymore so now we have to use the town legal budget to pay. Ms. Johnson -Landry asked If the new facilities will cost the town money and Mr. LeLacheur noted yes because it is a restructuring but it will save money in the capital plan because we will have less project managers. Mr. Neshat noted he went to the Library Building meeting and said he is not a construction expert but he was very Impressed with the process. He said Bob Labrecque seemed like he is very hands on with the project and said the move -in date is pushed out about 6 weeks. Mr. Moll noted they're close to budget so everything seems good from a financial point. Mr. LeLacheur commented that Joe Huggins and Bob Labrecque are a great team and they meet all the time. He said they come to him very often with updates every step of the way. Mr. Dockser said the Permanent Building Committee is for projects over $2 Million so we will have to discuss if we want the cemetery building to go In front of them. Page 1 3 f 2015 -09 -16 FINCOM Mlnures Page 4 Ms. Alvarado made a comment that she was surprised to learn the Library Trustees are using donailons to pay for basic supplies. Ms. Johnson -Landry noted schools are not In compliance with learner services for English so she would expect to see a request for money to correct that coming before us at some point. Ms Perry made a motion to accept the minutes from 6124 as amended, second by Mr. Moll and approved with an 8 -0-1 with Ms Johnson -Landry abstaining. Mr. Lvdecker made a motion to adiourn at 9.00PM second by Ms Johnson -Landry and approved with a 9 -0 -0 vote Respectfully submitted, Secretary Page 1 4 V