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HomeMy WebLinkAbout2016-03-09 Finance Committee PacketbFq Town of Reading Meeting Posting with Agenda RECEIVED TOWN CLERK READING. MASS. Board - Committee - Commission - Council: Finance Committee 1016 MAR -1 A qt 1`11111 Date: 2016 -03 -09 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Purpose: General Business Meeting Called By: Caitlin Saunders on behalf of Chairman Mark Dockser Notices and agendas are to be posted 48 hours in advance of the meetings excluding Saturdays, Sundays and Legal Holidays. Please keep in mind the Town Clerk's hours of operation and make necessary arrangements to be sure your posting is made in an adequate amount of time. A listing of topics that the chair reasonably anticipates will be discussed at the meeting must be on the agenda. All Meeting Postings must be submitted In typed format; handwritten notices will not be accepted. Topics of Discussion: Review FYI Town Manager budget • Public Services • Public Library • Public Works • Enterprise Funds Review Annual Town Meeting Warrant • Article 2 - FYI Budget Report & Financial Overview • Article 4 - FY16 -26 Capital Plan • Article 5 - FY16 Budget • Article 6 - OPEB Trust • Article 8 - Affordable Housing Trust • Article 9 - Revolving Funds • Article 10 - Surplus Property • Article 11 - Prior Years Bills • Article 12 - FYI budget is Article 13 - FY17 Chapter 90 funds Approve Minutes • January 20'", 2016 • February 10", 2016 This Agenda has been However In agenda and not necessarily a listing of a all Mate rs chair reasonably anticipates u at this will be discussed at the meeting. However the agentla tloes not neassatlly Inclutle all matters which maybe taken up a0 Mls meetlng. � page I 1 LeLacheur, Bob From: David Neshat <davidneshat @hotmail.com> Sent: Thursday, March 03, 2016 5:18 PM To: LeLacheur, Bob Cc: mdockser @gmail.com; PMCNeice @edgewater.com Subject: RE: budget Hi Bob, Thanks for last night. That was an impressive presentation by you and all the other department heads. I look forward to next week's presentations. I wanted to follow up on two things 1) 1 did ask my FP &A team today what they used to assume for the outer years regarding healthcare cost, and they assume 8% increase per year (close to your 7.5 %) 2) 1 wanted to follow up on my WC insurance question. Just to put it into perspective so that you see where I am coming from. I just renewed our WC policy, which is based on almost $600M in wages and we paid a premium of almost $290K. We also do benchmark to see what the average rates are out there which last year was at about 5bps on the notional amount. Now granted that when you compare insruance premimums it may not always be apples -to- apples, as you need to take into considerations the deductible limits and also what the claims history have been but this still provides some sort of baseline for us. That's why when I saw the insurace premium number yesterday and did the quick math (apply Slaps to the total wages), it seemed very high to me.You mentioned yesterday that we do receive some other services that was included in this number. I was hoping that you could break it up for us in terms of what those are and how much we are paying for those services. Thanks again David From: LeLacheur, Bob (blelacheur @ci.reading.ma.us) Sent: Wednesday, February 17, 2016 7:34 PM To: Anne Johnson (anne.iohnson5@zmail.com); Craig Merry (craiem2940comcast.net); David Neshat; Mark Dockser(h); Mark Moll (mollmlm(demail.com); Paul McNeice(w); Paula Perry(h); Peter Lydecker; vanessa alvaradol@vahoo.com Subject: FW: budget Good afternoon, Attached please find the Town Managers FY17 budget that is formally submitted to FINCOM at least four months before of the start of that fiscal year as required by the Reading Home Rule Charter Article 7 section 7.2. This budget is balanced by available revenues as forecast by the Town Accountant with the addition of $2 million from Free Cash as voted by the Finance Committee. Please know that this budget is balanced using the Governors proposed state aid for FY37. If an Early Aid Resolution is passed, it is possible that FINCOM or Annual Town Meeting can adjust as needed to this figure. In the event no final figure is available for Annual Town Meeting, which is often the case, adjustment will be made at November 2016 Subsequent Town Meeting. LeLacheur, Bob From: David Neshat <davidneshat @hotmail.com> Sent: Tuesday, March 08, 2016 1:05 PM To: LeLacheur, Bob Cc: mdockser @gmail.com; PMCNeice @edgewater.com Subject. Re: budget Yes- that's more apples -to- apples on the 8810 code. And you are right that we are being killed on the 8868. We use AJG as broker so let me know how it goes and /or if you need me for anything on that. Thnx for sharing the data and the next steps you suggested makes sense. David Sent from my iPhone > On Mar 8, 2016, at 10:23 AM, LeLacheur, Bob <blelacheur @ci.reading.ma.us> wrote: > Hi David, > Here is some additional detail about our Worker Comp program. It's interesting that your folks quote Sbps, when for example you see that our clerical workers are quoted at 9bps. Never underestimate the angry taxpayer :). If you look at the other categories you might be surprised at the associated risk levels. For example, teachers are about 7x more risky than our clerical workers - incidents in classrooms are quite common, with resulting injuries. Some other categories jump out as risky but might be more expected. > You raised a good point though and HR is in the process of asking our contact at Arthur J Gallagher & Co if they could provide an independent assessment of our program and suggest if we should go out to bid next fall for the FY18 rates. I don't see any harm in going out to bid but will await their expertise. > Mark & Paul - if you wish I'll include this as part of your meeting packet for the last meeting in March? > Thanks, > Bob • Robert W. LeLacheur, Jr. CFA • Town Manager, Town of Reading • 16 Lowell Street, Reading, MA 01867 • townmanager @ci.reading.ma.us >(P)781- 942- 9043;(F)781- 942 -9037 • www.readingma.gov; Please fill out our brief customer service survey at: • http:/ /readingma- suwey.virtualtownhall ,net /survey /sid /ff5d3a5f03e8eb6 > 0/ > Town Hall Hours: > Monday, Wednesday and Thursday: 7:30 a.m - 5:30 p.m.;Tuesday: 7:30 1 03/08/16 MIA PROPERTY AND CASUALTY GROUP, INC. Extension of Information Page Town of Reading 16 Lowell Street ESTIMATED PAYROLLS Reading, MA 01867 POLICY PERIOD JULY 1, 2014 - JUNE 30, 2015 Classification of Operations Code No Payroll Rate Premium Tree Dept 0106 47,441 14.64 6,945 Street or Road Maintenance 5509 1,009,180 3.43 34,615 Drivers NOC 7380 34,968 5.71 1,997 Waterworks Operation 7520 634,853 3.15 19,998 Electric Light or Po 7539 4,034,347 1.18 47,605 Telephone, Telegraph 7601 13,857 5.39 747 Caseworkers 8742 109,757 0.15 165 Clerical NOC 8110 2,021,383 0.09 1,819 DPW Clerical 8810D 269,351 0.09 242 Electric Clerical 8810E 3,413,871 0.09 3,072 Fire Clerical 8810F 47,277 0.09 43 Library Clerical 8810L 1,059,510 0.09 954 Police Clerical 8810P 557,054 0.09 501 Sewer Clerical 88105 19,155 0.09 17 Water Clerical 8810W 19,154 0.09 17 Health Dept - Exc Insp 8832 48,696 0.22 107 Building Maintenance 9015 170,123 2.72 4,627 Parks & Recreation 9102 649,599 2.24 14,551 Cemetery Operations 9220 247,815 3.49 8,649 Sewer Cleaning & Maint 9402 397,615 4.92 19,563 Municipal NOC 9410 681,209 1.94 13,215 SUBTOTAL 15,486,216 179,450 School Dept Crossing Guards 7720 121,071 1.73 2,095 Schools -Prof & Clerical 8868 32,842,782 0.61 200,341 Library/Other 9101 2,002,636 3.17 63,484 SUBTOTAL 34,966,489 265,920 TOTAL 50,452,705 445,370 Total Manual Premium 50,452,705 445,370 Employers Liability Charge 0.01 4,454 Premium Subject to Exp. Mod. 449,824 Experience Modification 1.13 58,477 Total Estimated Premium 508,301 ARAP Surcharge 1.07 35,581 Premium Discount (52,128) Net Premium 491,754 Expense Constant 338 Estimated Premium 492,092 OL, All Credits (176,730) Net Estimated Premium 315,362 Facilities Capital Project Status -March 7,2016 School Facilities Location Status Amount Remaining $ Birch Meadow HVAC Completed $20,000 $160.00 Birch Meadow Doors Completed $10,000 $0.00 Birch Meadow Tile floor Completed $15,000 $4040 Killam HVAC Completed $15,000 $2100 Killam Carpet Completed $24,000 $0.00 Wood End Flooring Scheduled $30,000 $9666 Coolidge Carpet Completed $40,000 $18,334 Coolidge Cond -Tank Scheduled $45,000 $45,000 Coolidge Phones Pre -bid $40,000 $40,000 Parker Masonry Scheduled $15,000 $15,000 RMHS Masonry Scheduled $30,000 $30,000 Town Facilities Town Hall Roof Completed $80,000 $53,000 Fire HQ Generator Completed $60,000 $26,780 Fire HQ Electrical Pre -bid $100,000 $100,000 Sr. Center HVAC Completed $20,000 $4749 Cemetery study Pre bid $200,000 $200,000 7 orx£ o HEADQUARTERS e READING FIRE DEPARTMENT 0 �`° Reading, Massachusetts 01867 GREGORY J. BURNS, Chief 757 Main Street BUS. Phone: 781- 942 -9181 STA. Phone: 781 -944 -3132 Fax: 781- 942 -9114 TO: Mr. Robert W. LeLacheur, Jr. CFA, Town Manager FROM: Chief Gregory J. Burns DATE: March 8, 2016 RE: FINCOM Request Regarding Capital Purchases FINCOM has requested information on the status of Fire Department capital purchases. Currently, in FY 16 the Fire Department has $630,000 appropriated for a fire engine and $27,000 appropriated for a defibrillator /monitor. The status of each project is below: Defibrillator/Monitor. We have purchased a Physio Control Life Pak 15 defibrillator/ monitor. The unit was purchased from the manufacturer using the Massachusetts State bid list (FIR04). As part of the purchase, our oldest defibrillator /monitor was traded in to reduce cost. The manufacturer applied a $5,000 credit to the purchase of the new unit. The cost of the defibrillator /monitor totaled $25,724.25. The remaining $1,275.75 in the account will be used for capnography sensors, defibrillation pads and oxygen sensors. Fire Engine: We have $630,000 appropriated to purchase a replacement fire engine. A four person committee has been appointed and is in the process of examining our current fire engine design and will recommend any required changes. The committee has met several times and the final specification is close to completion. We anticipate going out to bid sometime in May. 2016 Annual Town Meeting Monday April 25, 2016 Art. MqW"l Mover/ Moderator # Article Description Sponsor Comment Notes MqW"l March 1, 2016 2 Reports f the Town" repo— Board of - Selectmen Chair xx FY1 BBudget Report & Financial Overview — Finance Committee Chair ♦ Library Building Project Update — LBC member Greg Stepler ♦ Cemetery Garage Project Update - Permanent Building Committee Chair Greg Stepler ♦ Comprehensive Zoning Project update — CPDC Chair Jeff Hansen ♦ Motion to Table — Selectmen xxx 3 Instructions Board of Selectmen ♦ Motion to Table — Selectman 4 end the Capital Improve ent Board of Selectmen ♦ Presentation — Program FY 2016 -FY 2026 Town Manager Bob LeLacheur ♦ FINCOM report — 5 Amend the FY 2016 Budget FINCOM ♦ Presentation —Bob LeLacheur ♦ FINCOM re rt — 3/7/2016 1 2016 Annual Town Meeting Monday April 25, 2016 6 Fund OPEB Trust Board of Selectmen ♦ Presentation — Town Accountant Sharon Angstrom ♦ FINCOM report — 7 General Bylaw Changes - Animal Board of Selectmen ♦ Presentation — Bob Control Bylaw LeLacheur ♦ Bylaw Committee report — Chair Steve Crook 8 ove Affordable Housing Trust Board of Selectmen ♦ Presentation — Fund Allocation Plan Assistant Town Manager Jean Delios ♦ FINCOM INrt Approve Revolving Funds Board of Selectmen ♦ Presentation — Sharon Angstrom ♦ FINCOM report — 0 Dispose of Surplus Tangible P rty Board of Selectmen ♦ Presentation — Sharon Angstrom ♦ FINCOM report — Approve Payment of Prior Year' Board of Selectmen ♦ Presentation — 9/10 vote Bills Sharon Angstrom ♦ FINCOM report — 2 Adopt FY 2017 Budget FINCOM ♦ Presentation — Bob 2/3 vote for some LeLacheur and sections — and Superintendent Dr. therefore for the John Doherty entirety ♦ FINCOM report — _ see votes printed in Budget packet Authorize FY 2017 Chapter 90 goard of Selectmen ♦ Presentation — Bob Expenditures LeLacheur ♦ FINCOM report — 14 Remove Town Meeting members Board of Selectmen ♦ Presentation — pursuant to Section 2.6 of the Precinct Chairs Reading Home Rule Charter 3/7/2016 2 //' COMMONWEALTH OF MASSACHUSETTS Middlesex, as. Officer's Return, Reading By virtue of this Warrant, I, on , 2016 notified and warned the inhabitants of the Town of Reading, qualified to vote in Town elections and Town affairs, to meet at the place and at the time specified by posting attested copies of this Town Meeting Warrant in the following public places within the Town of Reading: Precinct 1 J. Warren Killam School, 333 Charles Street Precinct 2 Reading Police Station, 15 Union Street Precinct 3 Reading Municipal Light Department, 230 Ash Street Precinct 4 Joshua Eaton School, 365 Summer Avenue Precinct 5 Waller S. Parker Middle School, 45 Temple Street Precinct 6 Barrows School, 16 Edgemont Avenue Precinct 7 Birch Meadow School, 27 Arthur B Lord Drive Precinct 8 Wood End School, 85 Sunset Rock Lane Town Hall, 16 Lowell Street The date of posting being not less than fourteen (14) days prior to April 25, 2016, the date set for Town Meeting in this Warrant. I also caused a posting of this Warrant to be published on the Town of Reading website on ,2016. . Constable A true copy Attest: Laura Gemme, Town Clerk TOWN WARRANT OFNFgO COMMONWEALTH OF MASSACHUSETTS Middlesex, ss. To any of the Constables of the Town of Reading, Greetings: In the name of the Commonwealth of Massachusetts, you are hereby required to notify and warn the inhabitants of the Town of Reading, qualified to vote in the Local Elections and Town affairs, to meet in the following place designated for the eight precincts in said Town, namely: Precincts 1. 2. 3. 4. 5, 6. 7 and 8 Reading Memorial High School, Hawkes Field House, Oakland Road TUESDAY, the FIRST DAY OF MARCH, A.D., 2016 from 7:00 a.m. to 8:00 p.m. to act on the following Articles, viz: ARTICLE 1 To elect by ballot the following Town Officers: A Moderator for one year; Two members of the Board of Selectmen for three years; Two members of the Board of Library Trustees for three years; Two members of the Municipal Light Board for three years; Two members of the School Committee for three years; and Sixty -Nine Town Meeting Members shall be elected to represent each of the following precincts: Precinct 1 Eight members for three years; Precinct 2 Eight members for three years; One member for two years; One member for one year; Precinct 3 Eight members for three years; Precinct 4 Eight members for three years; Precinct 5 Eight members for three years; Precinct 6 Eight members for three years; One member for two years; One member for one year; Precinct 7 Eight members for three years; One member for two years; and Precinct 8 Eight members for three years. l� and to meet at the Reading Memorial High School, 62 Oakland Road, in said Reading on MONDAY, the TWENTY -FIFTH DAY of APRIL A.D., 2016 at seven -thirty o'clock in the evening, at which time and place the following Articles are to be acted upon and determined exclusively by Town Meeting Members in accordance with the provisions of the Reading Home Rule Charter. ARTICLE 2 To hear and act on the reports of the Board of Selectmen, School Committee, Library Trustees, Municipal Light Board, Finance Committee, Bylaw Committee, Town Manager, Town Accountant and any other Town Official, Board or Committee. Board of Selectmen Background: This article appears on the Warrant for all Town Meetings. At this Subsequent Town Meeting, the following reports are anticipated: Board of Selectman Chair "Stale of the Town" Finance Committee Chair "FY17 Budget Report & Financial Overview" ➢ TBA "Library Building Committee Project Update" ➢ Permanent Building Committee Chair "Cemetery Garage Project Update" ➢ CPDC Chair "Comprehensive Zoning Project Update" ARTICLE 3 To choose all other necessary Town Officers and Boards or Committees and determine what instructions shall be given Town Officers and Boards or Committees, and to see what sum the Town will vote to appropriate by borrowing or transfer from available funds, or otherwise, for the purpose of funding Town Officers and Boards or Committees to carry out the instructions given to them, or take any other action with respect thereto. Board of Selectmen Background: This Article appears on the Warrant of all Town Meetings. There are no known Instructional Motions at this time. The Town Moderator requires that all proposed Instructional Motions be submitted to the Town Clerk in advance so that Town Meeting Members may be "warned" as to the subject of an Instructional Motion in advance of the motion being made. Instructional Motions are normally held until the end of all other business at Town Meeting. Finance Committee Report: No report. Bylaw Committee Report: No report. /) ARTICLE 4 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 m Background: 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 proposed to the FY2016 — FY2026 CIP (current year plus ten years): General Fund FY16: 0 $65,000 DPW: Replace Dump Truck C3 (1999; moved up from FY17) $25,000 Fac: Replace batteries for emergency UPS units for schools & town buildings ($15,000) DPW: Dump Truck surplus ($25,000) Fac: Generator project surplus ($50,000) Fac: Town Hall roof.project surplus FY17: $85.000 ($20,000) Police AEDs pushed back two years to match Fire dept. replacement cycle ($65,000) DPW Dump Truck C3 (moved up to FY16) FY18+ Various other changes made SY'kt(Al FY16: None FY17: +$610.000 $575,000 Grove Street water main (1500 ft) $ 30,000 Unidirectional Water Main flushing 4 -year program +$ 5,000 add to Car #2 Replacement (now $35,000) FY18+ Enterprise Funds - Sewer FY16: None FY17: +$35.000 $35,000 Replace Car #1 (2006 — moved up from FY18) $3 million debt for Charles & Sturges sewer stations moved back to FY18 (reduces debt service for FY17 by $420,000) FY18+ Various changes made Enterprise Funds — Storm Water FY16: None FYI 7: +$155.000 $150,000 Grove St. drainage repairs (new) $ 80,000 Bond St. outfall and drainage repairs (new) ($ 75,000) generic drainage projects reduced from $125k to $50k 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 x -0 -0 at their meeting on March 23, 2016. 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. *Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted x -0 -0 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, 2015, as adopted under Article 20 of the Annual Town Meeting of April 27, 2015 and amended under Article 5 of the Subsequent Town Meeting of November 9, 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 Backaround: General Fund — Wanes and Expenses Account Line Description Decrease Increase B91 — Benefits Disability Retirement (One Firefighter — $75,000 Wages cost shifted from department to central location ) $75,000 B99 — Benefits Health Insurance premiums - $100,000 $100,000 expenses C99 — Capital DPW: Replace Dump Truck C3 (1999; $0 Expenses moved up from FY17) $65,000 Fac: Replace batteries for emergency UPS units for schools & town $25,000 Fnfernrise Funds -Wanes and Expenses Account Line DPW: Highway Dump Truck - $15,000 Decrease Increase Fac: Generator project - $25,000 Water - expenses Specialty tools for utility truck #5 $45,000 Hydrants for new water mains $25,000 Fac: Town Hall roof project - $50,000 $70,000 E99 - Vocational Reduced for actual enrollment (Minuteman $100,000 Education & Essex North ) - $100,000 F99 - FINCOM Not needed for modular classrooms $75,000 Reserves - $75,000 (remaining balance $150,000 G91 - Administrative Vacant positions during the year - $70,000 $70,000 Services Wages G92 - Administrative HR - Hiring Process expenses $21,500 $42,000 Services Expenses Technology - software for elder /human services to tie into state system $7,500 Technology - emergency repairs for engineering hardware $6,000 Technology - software for HR to streamline Personnel Reviews $4,000 Town Clerk - Vital Records project $3,000 G91 - Public Services Economic Development planner* $15,000 $15,000 Wages 191 - Finance Wages Finance Vacation /Sick buybacks $20,000 $20,000 J91 - Public Safety Police Vacation /Sick buybacks $75,000 $75,000 Wages K91 - Public Works DPW Vacation /Sick buybacks $30,000 $65,000 Wages Town Engineer overla $35,000 K92 - Public Works Fuel - $50,000 $50,000 Expenses K93 - Public Works Snow & Ice Removal Snow & Ice K94 - Public Works Street Lights - $25,000 $25,000 Street Lights K95 - Public Works Rubbish Disposal - $80,000 $100,000 Rubbish M91 - Core Facilities Consulting Services for Security System $125,000 Evaluation U99 - School First year funding for new K -12 Science $150,000 Department Curriculum materials $150,000 Subtotals $520,000 1 $567,000 Net Operating Expenses $47,000 From Free Cash 2, *From Ins ections Revolving Fund $15,0000 Fnfernrise Funds -Wanes and Expenses Account Line Description Decrease Increase Water - expenses Specialty tools for utility truck #5 $45,000 Hydrants for new water mains $25,000 $70,000 Subtotals $0 1 $70,000 ON Finance Committee Report: The Finance Committee recommends this Article by a vote of x- 0-0 at their meeting on March 23, 2016. Bylaw Committee Report: No report. 'Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted x -0 -0 to support this Article. /T ARTICLE 6 To see what sum the Town will appropriate to the irrevocable trust for j/GQj`J "Other Post - Employment Benefits Liabilities" or take any action with respect thereto. Board of Selectmen Background: As part of the FY16 budget the town voted $500,000 in the general fund, $50,000 in the water fund, $20,000 in the sewer fund and $6,000 in the storm water fund for the Other Pnatployment Benefit (OPEB) contributions. This Article will therefore move the total % 576,00 f all these OPEB contributions to the irrevocable trust for Other Post Employment iabilities. The most recent OPEB valuation shows the Town's OPEB liability at $67.2 million. The three Enterprise Funds and the Light Department are on an aggressive fully funding twenty year schedule, and the General Fund is on a partial funding schedule projected over thirty years. The latter will transition to a full funding schedule as soon as possible, as is required by law or after the Pension Fund is fully funded in FY29. Finance Committee Report: The Finance Committee recommends this Article by a vote of x- 0-0 at their meeting on March 23, 2016, Bylaw Committee Report: No report. *Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted x -0 -0 to support this Article. ARTICLE 7 To a if the Town w ote to delete Section 8.8 Animal Control of the General By and insert th ollowing i s place: 8.8 Animal Control Pursuant to the authority set forth in MGL ter 140 Sections 136A -174E, inclusive, and any other relevant statutes and regulations ' ued pursuant thereto, the following requirements are adopted for the regulation of dogs in Town of Reading. 7 04 Net Operating Expenses $70 nog J From Water Reserves 70,000 Finance Committee Report: The Finance Committee recommends this Article by a vote of x- 0-0 at their meeting on March 23, 2016. Bylaw Committee Report: No report. 'Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted x -0 -0 to support this Article. /T ARTICLE 6 To see what sum the Town will appropriate to the irrevocable trust for j/GQj`J "Other Post - Employment Benefits Liabilities" or take any action with respect thereto. Board of Selectmen Background: As part of the FY16 budget the town voted $500,000 in the general fund, $50,000 in the water fund, $20,000 in the sewer fund and $6,000 in the storm water fund for the Other Pnatployment Benefit (OPEB) contributions. This Article will therefore move the total % 576,00 f all these OPEB contributions to the irrevocable trust for Other Post Employment iabilities. The most recent OPEB valuation shows the Town's OPEB liability at $67.2 million. The three Enterprise Funds and the Light Department are on an aggressive fully funding twenty year schedule, and the General Fund is on a partial funding schedule projected over thirty years. The latter will transition to a full funding schedule as soon as possible, as is required by law or after the Pension Fund is fully funded in FY29. Finance Committee Report: The Finance Committee recommends this Article by a vote of x- 0-0 at their meeting on March 23, 2016, Bylaw Committee Report: No report. *Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted x -0 -0 to support this Article. ARTICLE 7 To a if the Town w ote to delete Section 8.8 Animal Control of the General By and insert th ollowing i s place: 8.8 Animal Control Pursuant to the authority set forth in MGL ter 140 Sections 136A -174E, inclusive, and any other relevant statutes and regulations ' ued pursuant thereto, the following requirements are adopted for the regulation of dogs in Town of Reading. 7 04 (6) will ensubsthat the Town's records include all such verbally. dogs provide detailed ruTteafor the Appeals Committee or "ACA to substantially all of the bylaw reg exemptions, findings, declarations, any chance of conflict with state st: person may file a written complaint investigated and addressed in acyf even those made The statutes re rdin' nuisance and dangerous Baring Auth y (in Reading, the Animal Control py when a rrying out its duties. Therefore, refore, ce or dangerous dog complaints, hearings, e 'es and appeals have been deleted to avoid ut Instead, the bylaw now provides that any the C and that such complaints shall be dance with G.L. c.140, §157. (7) Penalties. The penalties secffin remains largely unchan . The only substantive amendment that has bee ace is to add a provision provide or penalties for no with an ord of the ACAC. Finance Committee R ort: No report. B law Committee a ort: The Bylaw Committee recommends this Article by a vote of x -0 -0 at their meeting o xxx. F RTICLE 8 To see if the Town will vote to approve an Affordable Housing Trust Fund llocation Plan pursuant to Chapter 140 of the Acts of 2001 entitled "AN ACT AUTHORIZING HE TOWN OF READING TO ESTABLISH AN AFFORDABLE HOUSING TRUST FUND ", or take any other action with respect thereto. Board of Selectmen Background: Chapter 140 of the Acts of 2001 authorized the Town of Reading to establish a separate fund known as the Affordable Housing Trust Fund (AHTF). The AHTF requires Town Meeting approval of an annual allocation plan submitted by the Board of Selectmen. AHTF expenditures require approval by a majority vote of the full combined membership of the Board of Selectmen and the Reading Housing Authority. AHTF uses include: • Create or preserve affordable housing; • Maintain or operate affordable housing; • Develop new or rehabilitate existing housing as affordable homeownership or rental units; The purpose of the Affordable Housing Allocation Plan is to provide a framework for the Town to expend funds on affordable housing. The current AHTF balance of $261,391.75 reflects revenue generated through the actions of the CPDC, as well as proceeds from the loss of an affordable unit. There are no Town tax generated funds in the AHTF. The only expenditure to date from the AHTF, in the amount of $200,000, was to assist Oaktree development with financing affordable housing at 30 Haven Street. At the 2012 Annual Town Meeting, approval was given for funding to hire a consultant to assist a staff initiative to update the Town's Housing Plan, including the five -year "Housing Production CIL") Plan ". This effort is important as a defense against unfriendly 40B developments in the community, and requires the Town to develop a phased plan to produce housing to reach the 10% threshold as required by MGL Ch. 40B. Reading's Housing Production Plan has been approved by the Board of Selectmen and by the Commonwealth of Massachusetts. The Town commissioned and received a supplemental report on how the AHTF can best be used to support the "Planned Production" goals of the Housing Plan. This report was received in late winter 2012, and a presentation was made in April of 2013 to the Board of Selectmen and the Reading Housing Authority. The report recommends a significant restructuring of the Town's AHTF efforts. The Board of Selectmen considered these recommendations two years ago, but decided against any changes. Therefore, the current recommendation is to adopt the AHTF Allocation Plan as shown below as the framework for the use of Affordable Housing Trust Fund in FY 2017. Note that Reading as lead community is part of a regional effort (along with North Reading, Wilmington and Saugus) to share a Regional Housing Services Office (RHSO). The RHSO monitors and administers affordable housing requirements including tracking and updating the Subsidized Housing Inventory (SHI) as well as maintaining ready buyer and ready renter lists. Affordable Housing Trust Fund Allocation Plan FY 2017 Pursuant to Article 8 of the 2016 Annual Town Meeting, an Affordable Housing Trust Fund Allocation Plan for the Fiscal Year 2017 in accordance with the provisions of Chapter 140 of the Acts of 2001 is as follows: Available Balance — Unrestricted Funds: $261,391.75 Available Balance — Restricted Funds $ 0 Unrestricted funds shall be used for the following purposes: 5% up to a maximum of $10,000 for administration of Affordable Housing Remainder for constructing affordable housing (including loan and grant programs); or for maintaining and improving affordability of existing housing stock; or for the purchase of existing housing stock to add it to or maintain it as a part of the existing affordable Finance Committee Report: The Finance Committee recommends this Article by a vote of x- 0-0 at their meeting on March 23, 2016. Bylaw Committee Report: No report. /�I ARTICLE 9 To see if the Town will vote to authorize revolving funds for certain Town ( /l7'6� Departments under Section 53E %2 of Chapter 44 of the Massachusetts General Laws for the fiscal year beginning July 1, 2016 with the receipts, as specified, credited to each fund; the purposes, as listed, for which each fund may be spent, the maximum amount that may be spent from each fund for the fiscal year, and the disposition of the balance of each fund at fiscal year- end. Revolving Spending Revenue Allowed penditure Ex Limits Year End Account Authority Source Expenses Balance Fees as Consulting and provided for in engineering services for Conservation Reading General the review of designs $25,000 Commission Bylaws Section and engineering work Available for Consulting Conservation 5.7, Wetlands for the protection of expenditure Fees Commission Protection wetlands. next year Legal, oversight and inspection, plan review, initial property Building, appraisals and appeals, Plumbing, Public Services Wiring, Gas and plannina and general $200,000 other permits for management, curb he Oaklree, sidewalks and Addison-Wesley/ pedestrian safety Inspection Pearson and improvements, records Available for Revolving Town Johnson Woods archiving and other expenditure Fund Manager developments project related costs. next year Clinic fees, Materials and costs Public Health charges and associated with clinics $25,000 vailable for Clinics and Board of third party and public health expenditure Services Health reimbursements programs next year Library Library Charges for lost Acquire Libra Available for Materials Director and or damaged materials to replace lost $15,000 expenditure Replacement Trustees Libra materials or damaged items next year Facilities Mattera Director Utilities and all other $10000 Available for Cabin maintenance and , expenditure Operating Rental Fees operatinq expenses next year Director of Public Works upon the recommenda ion of the Sale of timber; Planning and Available for Town Forest fees for use of Improvements to the $10,000 expenditure Town Forest Committee the Town Forest Town Forest next ear or take any other action with respect thereto. Board of Selectmen Background: The revolving funds established in this article are subject to annual renewal by Town Meeting. '-1 Cu, • Conservation Consultina Revolvina Fund - These funds are used to receive payments from applicants, hire expert consultants where required, and return the balance to the applicant. The balance in the Conservation Consulting Revolving Fund as of February 2016 is $2,888. • Inspections Revolving Fund - Beginning in 2004, Town Meeting approved the Inspections Revolving Funds as a way to deposit building and other permit fees from three large projects (the Oaktree, Pulte Homes and Johnson Woods developments). The balance available as of February 2016 in this fund is $772,105, and of that total $200,000 is proposed by the Town Manager: $75,000 to be used to help offset some building division related activities in the FY16 Public Services budget, as has been the case for several years, plus upon the advice of the Board of Selectmen along with the support of a Financial Forum $125,000 is set aside to fund a new economic development planning position. The balance in this fund will allow four years of expenses at this pace at which point the results of the economic development efforts can be fairly judged and should be self- funding. • Health Clinic Revolvina Fund - The Reading Health Division contracts for third party payments for a number of immunizations. The funds are used to augment the influenza vaccine supply from the State Department of Public Health to insure vaccine for the homebound clients and first responders. The Division also uses these funds for materials for other screening clinics. Clinic client fees are also deposited into this fund to offset vaccine and clinical supply costs. The balance available as of February 2016 this fund is $60,459. The State has been cutting back on the free flu and other vaccines to be distributed to cities and towns, and the Town therefore needs to purchase extra doses. The necessary amounts used for clinic vaccine, supplies and staff salaries related to the clinics each year directly from the revolving fund is therefore approximately $25,000. • Library Materials Replacement Fund — During the course of a year, the Library recovers funds from patrons who have lost or damaged books or other materials. Previously, those funds went into the Town's General Fund and at the end of the year went into Free Cash. Once this Revolving Fund was adopted (beginning in FY 2010), those funds recovered from patrons for lost or damaged materials were available directly to the Library for expenditure to purchase replacement materials and processing supplies. The balance available as of February 2016 in this fund is $433. • Mattera Cabin Operatina Fund — The log cabin on the Matters conservation land was purchased several years ago, and was renovated by the Vocational School. Some of the use is revenue generating, and it is anticipated that over time the site will generate enough funding to pay the operating costs of the cabin — primarily utilities. This Article allows those revenues that are generated to be used directly for the operating expenses of the cabin. The balance available as of February 2016 in this fund is $1,006. In response to an instructional motion by Town Meeting, the Town Manager has moved the responsibility for both the Mattera Cabin and Cemetery garages to be moved to the Facilities department. • Town Forest Revolvina Fund was created in 2011. The purpose is to allow revenues from controlled timber harvesting and permit fees to then be spent by the DPW Director upon the recommendation of the Town Forest Committee, on improvements to the Town Forest, including planning efforts. The Town Forest Committee has had a forest stewardship plan created (through a grant) to make recommendations on forest management including controlled timber harvesting. The balance available as of February 2016 in this fund is $0. 10 It is anticipated that timber harvesting on a limited basis could begin at any time, and therefore there will be future proceeds which can be used for the purposes of the revolving fund. Finance Committee Report: The Finance Committee recommends this Article by a vote of x- 0-0 at their meeting on March 23, 2016. Bylaw Committee Report: No report. ARTICLE 10 To see if the Town will vote to authorize the Board of Selectmen to sell, exchange, or dispose of, various items of Town tangible property, upon such terms and conditions as they may determine; or take any other action with respect thereto. Board of Selectmen Background: The following equipment is scheduled for disposal: De artment Item Year Est. Value omments DPW International 25541Truck #8 2000 $20,000 cracked frame DPWNVater Ford F550/Pickup #5 2002 $15,000 4x2 DPW Ford F450/Dump Truck #12 1997 $5,000 od rot DPW Ford F250 /Picku 2 1997 $3,000 bod rot r43i DPW Chevy Blazer /Car#5 1997 $1,000 n ine DPW Select Till Rototille r nil ot work DPW Holder V -Plow 4150 nil DPW McConnel Boom Flail nil DPW Bucket nil DPW fn 10" Radial Saw Ent; 1980 nil DPW I FMC John Bean Sprayer nil Motor missing arts DPW WIT Generator nil Does not tun DPW Wayne Ray Backhoe Bucket nil Police Crown Vic/Car #2 2011 <$2,000 90k miles Police Crown Vic/Car#9 2004 <$2,000 80k miles Police Crown Vio/Car#11 -20-11-<$2,000 100k miles Police Crown Vic/Car#14 2011 <$2,000 100k miles Fire Frei htline Pumper/Engine #3 1 1995 $18,000 Finance Committee Report: The Finance Committee recommends this Article by a vote of x- 0-0 at their meeting on March 23, 2016. BVlaw Committee Report: No report. `Board of Selectmen Report: The Board of Selectmen at their meeting on March 22, 2016 voted x -0 -0 to support this Article. l/ l., ARTICLE 11 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 December 2015 the town became aware of an outstanding invoice to Canon Financial Services in the amount of $328.65 that had been bundled into current balances due, while it was in fact for services rendered in April 2015. The services rendered were a copier lease managed through the Town Manager's office. Finance Committee Report: The Finance Committee recommends this Article by a vote of x- 0-0 at their meeting on March 23, 2016. This bill is an obligation that should be paid by the Town, with a source of Free Cash. Please note that a 9110 majority vote by Town Meeting is required to make these payments. Bylaw Committee Report: No report. *Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted x -0 -0 to support this Article. ARTICLE 12 To see if the Town will vote to determine how much money the Town will appropriate by borrowing, or from the tax levy, or transfer from available funds, or otherwise, for vthe operation of the Town and its government for Fiscal Year 2017 - beginning July 1, 2016, or take any other action with respect thereto. •my�jlMo� Finance Committee 1MJ' Background: Please see the yellow pages of this document for the full details of the FY17 budget. Finance Committee Report: Please see the yellow pages — Spending Scorecard of this document for the votes of the Finance Committee online items in the FY17 budget. The Finance Committee recommends the subject matter of Article 12 as explained by these votes at their meeting on March 23, 2016. Bylaw Committee Report: No report. ®ARTICLE 13 To see what sum the Town will vote to appropriate by borrowing, whether in anticipation of reimbursement from the State under Section 6 of Chapter 44 of the Massachusetts General Laws, or pursuant to any other enabling authority or from the tax levy, or transfer from available funds, or otherwise, for highway projects in accordance with Chapter 90 of the Massachusetts General Laws, or take any other action with respect thereto. Board of Selectmen (91 Background: After a one -time increase in FY15 to $900,000, Reading has settled back into the $600,000 range which is what is projected for FY17 for Chapter 90 (local road repairs). The motion made at Town Meeting will be to accept the Chapter 90 state assistance at whatever level is ultimately available, a trend in other communities in order to avoid this uncertainty of the timing of the state budget process. Finance Committee Report: At their meeting on March 23, 2016 the Finance Committee voted x -0 -0 to recommend this Article. Bylaw Committee Report: No report. *Board of Selectmen Report: The Board of Selectmen at their meeting on March xx, 2016 voted x -0 -0 to support this Article. ARTICLE 14 To see if the Town will vote, pursuant to Section 2 -6 of the Reading Home Rule Charter, to declare the seats of certain Town Meeting Members to be vacant and remove certain described persons from their position as Town Meeting Members for failure to take the oath of office within 30 days following the notice of election or for failure to attend one -half or more of the Town Meeting sessions during the previous year, or take any other action with respect thereto. Board of Selectmen Background: The Reading Home Rule Charter provides for the removal by Town Meeting of Town Meeting Members who did not attend at least half of the Town Meeting sessions during the previous year. Total of 2 Town Meetings resulting in 6 nights to attend Listed below are those who attended less than 3 nights Walter J Carroll 2017 Carol Sampson Total Precinct First Name MI Last Name Term Attended Walter J Carroll 2017 Carol Sampson 2017 Patrick P O'Sullivan 2018 Jacqueline MK Petrillo 2017 Drucilla Wood- Beckwith 2018 and you are directed to serve this Warrant by posting an attested copy thereof in at least one (1) public place in each precinct of the Town not less than fourteen (14) days prior to April 27, 2015, or providing in a manner such as electronic submission, holding for pickup or mailing, an attested copy of said Warrant to each Town Meeting Member. Hereof fail not and make due return of this Warrant with your doings thereon to the Town Clerk at or before the time appointed for said meeting. Given under our hands this _m day of , 2016. , Constable Chairman Vice Chairman Secretary SELECTMEN OF READING Spending Since the last Override since Pre - Override Mid Override After Override 10verride Actual Actual Budget Recommended Recommence vs03 vs 04 v805 vs 08 Expenditures Expenditures (Revised) Budget Budget FY -2003 FY -2004 FY -2005 FY -2006 FY -2017 General Fund TOWN 15,161,804 16,386,972 17,317,246 18,126,090 25,350,650 3.7% 3.d% % Schools 24,891,038 25,705,383 28,130,066 28,712,503 40,697,666 3.6% l.6% 3.1% Debt Service and Capital 3,922,129; 4,620,241 8,260,140 7,691,796 6,970,000 4.2% 3.2% 1.4% Emolavee Benefits 6.839.6671 7.421,349 8.044.049 9.178.809 15.988.500 6.3% 6.1% 5.9% n Service anti uapllal Far less debt is crowding out the operating budgets- prior school projects were done inside the levy. A much better capital plan is in place that has reduces some operating budget costs This net reduction of infrastructure costs inside the levy has paid for the growth in Health Insurance, but there seems little room for that to confine - therefore the 3% town 8 school budgets are at risk, Service 3,897,129 4,178,178 6,790,140 6,898,508 4,900,000 EnlDlovee Benefits Contributory Retirement 2,136,600 2,186,300 2,407,094 2,463,851 3,673,000 3.9% 4.1% 3.6% Non-Contrib. Retirement 99,183 93,745 97,625 99,257 0 - 100.0% . 100.0% - 100.0% Unemployment Benefits 78,167 47,685 75,000 60,000 101 1.8% 5.9% 2.4% Medicare l Social Security 436,765 493,385 495,350 530,211 750,000 3.9% 3.3% 3.5% Workers Compensation 171,068 192,804 223,650 225,528 280,000 3.6% 2.9% 1.9% Police l Fire Indemnification 36,985 66,147 36,000 50,000 100,000 7.4% 3.2% 8.9% 3,080,066 3,334,719 3,428,847 4,903,000 3.7% 3.6% 3.3% Benefits excluding Health Ins. 2,958,768 Group Health I Life Ins. 3,880,899 , 4,341,283 4,709,330 5,749,962 10,560,500 7.4% 7.1% 7.0% Total Employee Benefits 6,839,667 7,421,349 8,044,049 9,178,809 15,463,500 6.0% 5.8% 5.6% Enterprise Funds Water Ent. Fund 2,746,997 2,791,647 2,909,731 3,187,133 6,240,274 6.0% 6.4% 6.6% 6.3% Sewer Ent. Fund 3,883,379 3,942,101 4,066,823 3,975,906 5,706,390 2.8% 2.9% 2.9% 3.3% Storm Water Ent. Fund 0 0 0 0 530,430 100% 100.0% 100% 100% TOTAL 6,630,3761 6,733,748 6,976,554 7,163,039 12,477,094 4.6% 4.9% 319/2016 `2 2016 Town of Reading -Town Financial Calendar Courtesyof WinCalendar WinCalendar Sunday Monday Tuesday Wednesday Thursday Friday Saturday 27 28 29 30 31 1 2 Dee 2015 HOLIDAY 8 9 3 4 5 6 7 10 11 12 13 14 15 16 SC FY17 budges KS FY17 budges SC FY17 budges 17 18 19 20 21 22 23 Jan HOLIDAY BOS H17 W4iAs FW Fbivm SC FY17 budges 2016 azsrcb 24 25 26 27 28 29 30 SC FY17 butlgeb 31 1 2 3 4 5 6 7 8 9 10 11 12 13 FINC mrerview 14 16 16 17 18 19 20 HOLIDAY Feb 2016 21 22 23 24 25 26 27 BosweNiarl az Pazeaz MS 28 29 2 3 4 5 8 FINC FYI bagis 9 6 7 10 11 12 Be$mWerps FINC FY17 bdg5 13 14 15 16 17 18 19 FINC FYI 0095 Mar 2016 20 21 22 23 24 25 26 BOS win FINC FY17 bdg5 az S Cb 27 28 29 30 31 1 2 3 4 5 6 7 8 9 Bas 10 11 12 13 14 15 16 Apr 2016 17 18 19 20 21 22 23 HOLIDAY BOS 24 25 26 27 28 29 30 Toes Meeting Term Meeting L/ 1 2 3 4 5 6 7 DOS 10 11 12 13 14 8 9 NEIGHBORHOOD METING$ May 15 NEIGHBORHOOD 16 17 BOB 18 19 20 21 2016 EETINGS 22 23 24 25 26 27 28 NEIGHBORHOOD MEETINGS 29 30 , 31 1 2 3 4 NEIGHBORHOOD HOLIDAY MEETINGS 5 6 7 8 9 10 11 NEIGHBORHOOD BOS MEETINGS 12 13 14 15 16 17 18 NEIGHBORHOOD Jun MEETINGS 2016 19 20 21 22 23 24 25 BOB 6 27 28 29 30 1 2 r- FINC yrend 3 A 5 6 7 8 9 HWmy 10 11 12 13 14 15 18 DOS Jul 17 18 19 20 21 22 23 2016 24 25 26 27 28 29 30 BOB 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 BOS -�uu wlTv Aug 2016 21 22 23 24 25 26 27 28 29 30 31 1 2 3 WinCalendar I Sunday Monday Tuesday Wednesday Thursday Friday Saturday 4 5 6 7 9 10 HOLIDAY 'SOS FdI F... 11 12 13 14 18 16 17 Spec T.. Mtg Notiy TO Clerk Spx Yawn Nb ": Sep _ 18 20 21 22 24 2016 19- 608 25 26 27 28 29 30 1 2 3 4 5 6 7 8 LOS 9 10 11 12 13 14 15 HOLIDAY FIND MAr Oct 16 17 19 20 21 22 2016 23 24 25 26 27 28 29 BOS HIM F.. 30 31 1 8 2 3 4 5 6 7 9 10 11 12 F�l ors FINCregoler HOLIDAY 13 - 14 15 16 17 18 19 Town Meeting BOS Town MNpq Nov 2016 20 21 22 23 4 ` -. 25 26 Town Meeting HOLIDAY 27 26 29 30- 1 2 3 Tam Meeting BOS 4 5 6 7 8 9 10 14 - 11 12 13 16 16 17 SOS FINCregelar Dec 2016 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ;HOLIDAY 2) Financial Forum July 30, 2014 Agenda Financial Forum Overview (Mark Dockser) July 30" September 10Y' October 29" January 28" (if needed) Introductions (Boards, Committees, Commissions, staff & public) Review 2010 Financial Forum Brainstorming Sessions (Bob LeLacheur) Cost Cutting Efforts Revenue Ideas 2014 Brainstorming Session (FINCOM) Identify and list all ideas Vote on relative importance of each idea 1. community needs and service that you (participants) think are required and are currently being met sufficiently 2. community needs and services that you think are required but are not being met (not at all or not enough) 3. services that are currently being provided but they are nice to have rather than must have 4. services that you think are important but are getting more funding than they should be Gathering Community Input (FINCOM) Homework for September 30' Financial Forum & Closing Remarks (Mark Dockser) Y Financial Forum July 30th, 2014 Brainstorming 1) Services provided today, needs being met ➢ Trash /recycling pick up ➢ Police and fire ➢ Town hall ➢ Library ➢ DPW — streets ➢ Youth activities ➢ Schools ➢ RMLD ➢ Capital ➢ Cultural opportunities 2) Services provided today, needs not being met ➢ Effective communication to community (13 votes) ➢ Full day K (11 votes) ➢ Athletics — field space, lights, surfaces, revenues (10 votes) ➢ RISE preschool — room /space, revenues (8 votes) ➢ Senior housing /transportation (5 votes) ➢ K -12 Special Ed space (5 votes) ➢ Student counselling— anxiety prevention (4 votes) ➢ Affordable housing— workforce, youth (3 votes) ➢ Youth activities (3 votes) ➢ Institute tech specialists (3 votes) ➢ Cultural space (2 votes) ➢ Elder services (2 votes) ➢ RMHS programs (1 vote) ➢ Art /Music space (1 vote) ➢ Website(1 vote) ➢ Safe places for youths— informal and academic clubs ➢ Health programs ➢ Student socia l services ➢ Parking ➢ Signage for activities ➢ Diversity ➢ Cross generation activities ➢ Measure performance ➢ Grant funding — matching -I, 3) Services not provided today but should be ➢ Fund innovative ideas toward 2020 (13 votes) • Active economic development (7 votes) • Free full day K (7 votes) • Technology proactive planning (6 votes) • Retain staff (6 votes) ➢ Improve solar incentives — stretch code (3 votes) ➢ RAD (2 votes) ➢ Community policing — funding (1 vote) ➢ Infrastructure planning (1 vote) ➢ Small business 4) Services provided today but getting more funding than they should/ services that should not be funded at all ➢ PVT — PUB partnerships (12 votes) • Collaboration with other organizations (11 votes) • Shift in library programming (10 votes) • Constant pruning activities philosophy (8 votes) • Cutsource student health and socia l issues— insurance funded IS votes) • Plant watering (4 votes) • More grant funding from outside sources (3 votes) • Veterans services— full funding State • Some capital expenses at the margin in projects • Snow plowing cpµ orq� 0 +° Town of Reading Meeting Minutes vaP�t Board - Committee - Commission - Council: Finance Committee Date: 2016 -01 -20 Time: 7:30 PM Building: Pleasant Street Senior Center Location: Great Room Address: 49 Pleasant Street Purpose: Financial Forum Session: Forum Attendees: Members - Present: Chair Mark Dockser, SPaula Perry, Members Craig Merry, Marc Moll, Peter Lydecker, Anne Landry, Vanessa Alvarado, David Neshat and VIC4- Paul McNeice C^m Members -Not Present: Others Present: Town Manager Bob LeLacheur, Assistant Town Manager Jean Dellos, Town Accountant Sharon Angstrom, Community Development Director Julie Mercier, Town Treasurer Nancy Heffernan, Police Chief Mark Segalla, Community Services Director John Feudo, Director of Administrative Services Matt Kraunelis, DPW Director Jeff Zager, Assistant DPW Director lane Kinsella, Facilities Director Joe Huggins, Superintendent of Schools John Doherty, Director of Finance of Schools Martha Syburt, Administrative Assistant Caitlin Saunders, Board of Selectmen members John Halsey, Barry Berman and Kevin Sexton, Ben Tafoya, Angela Binda, Amy Cole, Harriet Lyons, Ashley Quinn, Melissa Murphy, Katherine Dufosse -La Plant, Caitlin Koehler, Michele Sanphy, Katherine Brown, Karen Herrick, Ann Cruickshank, Ruth Urell, Alice Collins, Vicki Yablonsky, John Brzezenski, Eileen Lettereo, Elizabeth Love, Elain O'Dea, Michael Moren, Joel Murdock, Meg Powers, Robyn Ferrazzanl, Denise Iozzo, Victoria LeBlanc, Brian Souza, Carolyn Wilson, Craig Martin, Bob Holland, Samantha Carreiro, Kern Fahey, Maryann Sweester, Rochelle Luongo, Martha Moore, Eric Guffa, Kristen Roberts, Connie Quackenbush, Linda Snow Dockser, Kate Grant, Jen Hillery, Harry Wheeler, Josh Goldlust, Mike Boston, Mary McGrath, Eric Goldstein, Colleen DeRosa, Pam Boston, Julie Gilchrist, Marla Morgan, Brian O'Maria, Rebecca Schruman, Julie Joyce. Minutes Respectfully Submitted By: Secretary Topics of Discussion: Finance Chair Mark Dockser called the meeting to order at 7:30 PM. The Library Trustees called to order. The School Committee called to order. Town Manager Bob LeLacheur gave a financial overview of the town. State aid is lagging and Reading depends heavily on state aid. He noted a lot of towns around us have a lot of undeveloped land, however, Reading does not. The Board of Selectmen called to order at 7:40 PM. C9, Page i 1 fnance Committee Minutes - January 20 2016 - oaoe 2 Mr. LeLacheur explained the difference between an override and debt exclusion. An override is a permanent change to your taxes where as a debt exclusion your taxes go up until the debt is paid off and then it goes back down. Our neighbors are growing at a 1.8% rate while Reading is at 1.2% which is about a $300,000 annual average difference. Reading was compared to 25 peer communities to show the differences. Reading has a big difference in the amount of taxable land. Reading's CIP% is much lower. Reading is behind on revenue compared to our peers. When it comes to spending Reading is similar. Reading spends a tad above average on public safety and culture and recreation. Reading spends average on education and DPW. Reading spends below average on human services however stabilization and free cash are average. Overall Reading falls a little short on the revenue side however our spending is very average considering we have a large number of school kids compared to our peers. Eric Burkheart asked if we changed the unit of measurement does the story change about how we compare. Mr. LeLacheur noted we average 2.6 people per household and Massachusetts at 1.9 so yes the story would change slightly however, he could not find the per household numbers for our peer communities so he used the per capita. Harry Wheeler of 51 Ash Hill Road asked what free cash number Is. Mr. LeLacheur noted it is the percent of everything we have. Dr. Doherty gave an overview of the schools financials. He noted the schools are funding the budget based on the goals that focus on where they want to go as a school district. The state aid Chapter 70 funding formula was created in 1993 and has not ever been changed. Costs have certainly changed from 1993 but the formula for the amount of aid we receive has not. The budget before the School Committee Is $150,000 higher than the 3.25% budget number. The $150,000 is for implementation of a new science program. Dr. Doherty noted to have level service the budget would need 4.6 %. Level service reductions have gone down the past 3 years. The budget priorities are to implement courses and keep the class sizes down. The budget drivers are salaries and benefit obligations. The additions to the FY17 budget are to restore the per pupil building funding back to FY15 levels, a social worker at Killiam and restore some regular teachers. Reductions to the FY17 budget Include 2 elementary teachers, 3.4 high school teachers, extended day, full day kindergarten, athletics and extra - curricular activities. Sixty -one percent of the budget goes to regular day operations. What the budget does not address is long term improvements such as full day kindergarten, restructuring the elementary school schedule, restructuring the high school and providing more opportunities for our students. Dr. Doherty commented that five teachers left this year for higher wages and better benefits. Cherrie Dubois of 9 Meadow Brook Lane said she would like to compare MCAS scores with peer communities forgetting about the per pupil expenditure. Michele Sanphy of 75 Glenmere Circle asked if the offsets are sustainable and Dr. Doherty answered for the most part, yes. Eric Burkheart asked what percent of state aid is Chapter 70. Mr. LeLacheur answered about a quarter. Page 1 2 / Finance Committee Minutes - January 20. 201 Mr. Burkheart then asked what the cuts have been In the past couple of years. Dr. Doherty answered that he tried to do non - personnel cuts up until this year. This is the first year they have to make personnel cuts. Mr. LeLacheur noted unlike the schools, it is hard to compare town services to other towns. The FY17 Town Operating Budget department requests are about $1.6 Million over the target and the town needs about $.7 Million to level service. Next year's budget will have to reduce services and quality of services. It would cost about $1.6 Million to have the services the community desires. The town is budgeting for 8% health Insurance increase however It will probably be more. Jeanne Borawski asked Mr. LeLacheur to break down the Pension and OPEB funds. Mr. LeLacheur noted $3.5 Million for the pension and $500,000 for OPEB. He also noted in 2029 OPEB will be fully funded. Ben Tafoya asked if the number for free cash used was what we budgeted for or what we actually used and Mr. LeLacheur noted that number is what we actually used. Mr. Tafoya then asked about regeneration and Mr. LeLacheur noted it has gone up the past couple of years. Mr. Tafoya asked what new growth percent is and Mr. LeLacheur noted it is the percent of collected property tax. Angela Binda asked where capital improvements are in the budget and Mr. LeLacheur noted they are under capital and debt. Karen Herrick asked if we have any idea where we should be with free cash. Mr. LeLacheur noted conversation is 10% of operating budget. The town has a 5% rule. Mr. Dockser commented free cash is like our rainy day fund but also if health insurance comes in high, free cash will take the extra hit, state aid shortfall and unseen litigation would also be free cash uses. Elaine Webb asked if there was data to show the amount of teachers that leave for higher paying jobs. Mr. LeLacheur said the cost of turnover is real and the effort or hiring and finding the right is not an easy task. Connie Quackenbush, a teacher, noted not getting raises will not attract more teachers. Colleen DeRosa asked if we are paying our teachers in the middle of the pay grade, are we only trying to attract middle grade teachers. Michele Sanphy commented that people need to take into consideration that teachers spend a lot of their own money on supplies and things for their classrooms. Angela Binda asked if Reading's teachers' salaries have historically been higher or lower than average. Mr. LeLacheur noted we have been slipping every year. Eric Burkheart asked what the turnover percentage is in teachers. Dr. Doherty noted there are a lot of reasons why teachers leave but we average about 30 -40 (10 %) new teachers every year. Mr. Burkhart asked, with regards to town staff, if it is solely a pay and class problem or if he was serious with the hard working conditions as well. Mr. LeLacheur noted It is not uncommon for staff to work until 10 or 11 PM and then be in the next morning at 7 AM. Kate Grant asked how we compare with turnover compared to other towns. Mr. LeLacheur noted it is hard to compare turnover rates for a lot of reasons because it all depends on the , type of employee you hire. Page 1 3 Finance Committee Minutes - January 20 201L-Daae A Melissa Murphy asked in regards to commercial tax, why has the town never raised it since we are so far behind compared to our peer communities. Selectmen John Halsey commented one reason is because Reading does not have as much commercial property as our surrounding towns. Another reason is if we split the tax rate it would have a large impact on our small businesses, a very small impact to the households and it would not Increase our revenues. Selectmen Barry Berman noted it is a very dangerous game raising taxes because our large elderly population can't afford them. He said we could do it but assessed value and assume people with pricey houses can afford more taxes but that Is not always the case. Linda Snow Dockser noted she was at the Board of Selectmen meeting about the tax rate and small businesses are already struggling and if we raise the tax rate on them it will only get worse. Mr. Berman said we are not going to grow out of this budget and every now and then we need to hit the reset button. Mr. Halsey commented Reading has a very small opportunity for development and growth but there is some and the next step Is to figure out how and what we want to develop these areas. Selectmen Kevin Sexton noted setting tax rates is not as easy as it looks. There are state guidelines for us to follow as well. He noted he did not think there was enough community feedback to make the decision last time. Caitlin Geller noted she heard there have been a lot of failed overrides in Mass recently and we need to find a way to make sure that doesn't happen here in Reading. Mr. LeLacheur said Melrose recently had a failure because they were trying to be proactive, as we are, when people tend to wait until they are hurting until they will vote yes for an override. Paula Perry noted tonight's meeting turnout is a wonderful start but now everyone in the room should start talking and educating their friends to get this information out around town. Linda Snow Dockker noted she feels the Town is already hurting. We have so many employees doing a bunch of different jobs just to get things done. Mr. Berman said he feels for this to work we need to present one budget for the town and schools both agreeing they cannot sustain their budgets anymore so people will not vote no just because they think only the town or only the schools need it. Mr. Halsey agreed and asked the new faces in the room to bring more new faces next time so we can get even more feedback and educate their friends in town on what they have learned tonight. A resident asked if the town knew they were in this financial position when they asked for $18 Million for a new library, because if we did and now we are asking for an override, a lot of people are going to want to know the answer to that. Mr. LeLacheur noted as employees of the town we cannot tell the town what to do. We can educate the residents and that is it. We personally can have an opinion but professionally there is a big gray area of what we can't do. Page 14 Yj FindlIC9 Committee minu tes - January 20 2016 pace Angela Binda brought the conversation back to the split tax rate and commented that a lot of people do not want to be seen as against local businesses but we need to consider a large part of our commercial is Walkers Brook Drive which is filled with big chains that can afford the increase. She also said she has heard conversation around town saying residents would not support an override until there is a split tax rate to show them that the town is trying to do something to correct it. Mr. Halsey said the real issue with the split tax rate is the fact that we have the smallest amount of commercial property in any town around here and we don't want to see empty store fronts because small businesses can't afford the rate. Michelle Sanphy asked when the Selectmen would decide if an override vote would go on the September ballot. Mr. Halsey noted only three Selectmen are present tonight but if they keep hearing from residents over the next month or so then they will decide. Mr. Berman wanted to mention that there are a lot of open spots for Town Meeting and if you join Town Meeting you would get to help make some of these decisions. Mr. LeLacheur noted that compared to our neighbors we have low /below average property taxes. Ashley Quinn asked how residents can contact the Board of Selectmen. Mr. Halsey responded that their emails are on the town website and please attend our meetings every other Tuesday night. Mr. Halsey made a motion the Board of Egiectmen adiourn at 10.30 PM n by Mr. Berman and approved with a 3 -0 -0 vot Vanessa Alvarado commented that people are talking about how we just paid for a library and want to know how much more our taxes would go up if we do an override too. Mr. McNeice made a motion to adiourn at 110.40 PM second by Mr. Moll and approved with a 9 -0 -0 vote. Respectfully submitted, Secretary Page 1 5 �y orxr�a Town of Reading I?' 4r ��; Meeting Minutes f`INCOPP�' Board - Committee - Commission - Council: Chair Mark Dockser; members Vanessa Alvarado, Anne Landry, Craig Merry, Marc Moll, Paula Perry and David Neshat (arrived 7:40pm) Members - Not Present: Paul McNeice and Peter Lydecker Others Present: Town Manager Bob LeL.acheur, Bill Brown, Eric Burkhart, Brian Scouter, Kyle Scouten Minutes Respectfully Submitted By: Topics of Discussion: Chair Mark Dockser called the meeting to order at 7:35pm Bill Brown made some comments to FINCOM about their role, and included a letter as did Tom Ryan in their packets. Each noted that FINCOM was straying from their role as advisory to Town Meeting by essentially advocating for an Override. Mr. Dockser noted that FINCOM's role is to deal with any local municipal finance questions, and how services and home values for example might be impacted. He said that they are allowed to state their opinions on these questions Ms. Landry did not recall any advocacy for an Override as opposed to a discussion of the surrounding issues. She though that FINCOM was simply providing information on the state of the town finances. She did appreciate the reminder about the ethics involved. Mr. LeLacheur said that Town Counsel would be in to a Board of Selectmen meeting in the next month to outline this issue from a legal standpoint. Mr. Dockser said that FINCOM was to create a factual document, and asked members to discuss what information should be on the document. He provided an outline of his suggestions in the meeting packet. Ms. Perry said that the charts done by the Town Manager at the January 2016 Financial Forum served as a good background for these issues, to explain how Reading compares to peer communities. Ms. Landry Page I 1 6) Finance Committee Date: 2016 -02 -10 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Session: Purpose: General Business Version: Attendees: Members - Present: Chair Mark Dockser; members Vanessa Alvarado, Anne Landry, Craig Merry, Marc Moll, Paula Perry and David Neshat (arrived 7:40pm) Members - Not Present: Paul McNeice and Peter Lydecker Others Present: Town Manager Bob LeL.acheur, Bill Brown, Eric Burkhart, Brian Scouter, Kyle Scouten Minutes Respectfully Submitted By: Topics of Discussion: Chair Mark Dockser called the meeting to order at 7:35pm Bill Brown made some comments to FINCOM about their role, and included a letter as did Tom Ryan in their packets. Each noted that FINCOM was straying from their role as advisory to Town Meeting by essentially advocating for an Override. Mr. Dockser noted that FINCOM's role is to deal with any local municipal finance questions, and how services and home values for example might be impacted. He said that they are allowed to state their opinions on these questions Ms. Landry did not recall any advocacy for an Override as opposed to a discussion of the surrounding issues. She though that FINCOM was simply providing information on the state of the town finances. She did appreciate the reminder about the ethics involved. Mr. LeLacheur said that Town Counsel would be in to a Board of Selectmen meeting in the next month to outline this issue from a legal standpoint. Mr. Dockser said that FINCOM was to create a factual document, and asked members to discuss what information should be on the document. He provided an outline of his suggestions in the meeting packet. Ms. Perry said that the charts done by the Town Manager at the January 2016 Financial Forum served as a good background for these issues, to explain how Reading compares to peer communities. Ms. Landry Page I 1 6) asked if that presentation was on the town's website yet and the Town Manager said that he would check and make sure that it was. Mr. Docker said that a copy of the Financial Forum was available on the RCN website. He said that FINCOM needed to condense the main points to a postcard size. He added that these were important points from the packet: 2) free cash definition; 3) average tax bill and a perception of value. Ms. Alvarado added that 5) was important for the historical sense of Prop 2 A and the expectations of demographics changing in the future. Ms. Landry said that 8) other revenue options had been covered, and liked the history of local overrides. Mr. Moll added that the need for consequences of a lack of an override needed to be mentioned in addition to these facts. Mr. Dockser wanted a simple graphic of 'my tax bill' and how funds are spent. These assignments were developed: 2) Mr. Dockser 3) Mr. Moll 5) Ms. Perry 6) Selectmen & School Committee (FY37 level services budgets— done already) 8) Ms. Alvarado 10) Selectmen (long term town plans) Mr. LeLacheur asked the FINCOM to send questions in advance. Mr. Dockser asked about ambulance billing and the break even for overtime versus hiring an additional firefighter. On a motion by Mr. Moll seconded by Ms. Per FINCOM voted 7-0-0 to adjourn at 930om �7 Page 12