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Home My WebLink About2016-06-07 Board of Selectmen Packet - community listeningTown of Reading Community Listening Meetings I iiipiiiii�p W. Mr.W11111 Ill,lilillllllll I F, III III Tuesdayjune 11• Thursday June 16th 7:00pm Parker MS Auditorium Summer/Fall 2016 Discussiow.,I- Late June through early August Board and Committee public meetings to review what was heard at the initial CLMs and draft a response. Tuesday August 16th Board of Selectmen decide - call for a Special Election /Override vote? If YES: Thursday September 1 St Community Financial Forum 7:OOpm RMHS PAC Monday September 12th Tuesday October 18th Special Town Meeting Special Election Financial Overview: 13 yrs Since the last Override (13 years ago), annual REVENUES have grown at these rates: Since the last Override, annual REVENUES have grown at these rates: +3.6% Taxes (2.5% limit plus new growth, which is slowing lately) +2.7% State Aid (some good years but < +2% recently) +0.1% Local Receipts ( +1.4% growth plus much less interest earnings) +1.3% Other Receipts (RMLD dividend only +1.9%) + 3.1 % TOTAL The annual forecast for the next three years is: Using Cash Reserves Not using Cash Reserves +2.9% Taxes +2.5% State Aid +2.6% Local Receipts +0.4% Other Receipts +2.6% TOTAL +2.1 % TOTAL Since the last Override, annual SPENDING has grown at these rates: + 3.1 % Town -0.9% Capital & Debt +5.2% Shared Benefits + 3.1 % TOTAL - Debt reduced inside the tax levy (Barrows & Wood End should have been excluded) - Capital increased, far better planned and helping reduce annual operating costs - Benefits: Reading has done far better than national averages for Health Insurance - Premiums paid +5.2% ( +7.7% National trends - PwC Health Research Institute) - Employees and Retirees took on more costs in order to preserve jobs for the organization - Result comparatively good but increases far exceed 3% revenues Financial Overview Since the last Override , annual SPENDING have grown at these rates: The annual forecast for the next three years is: Using Cash Reserves +0.7% Schools Not using Cash Reserves -0.3% Schools +0.7% Town -0.3% Town +3.9% Capital & Debt +3.9% Capital & Debt +7.0% Shared Benefits +7.0% Shared Benefits +2.6% TOTAL +2.1 % TOTAL I, Day aka 'Free Ca $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Fiscal Year Peer Communities Tax Levy 60.5% 66.6% Residential 91.4% 76.9% Residential 63m il_ $54.8mil. CIP 8.6% 23.1% CiP $5.0 m 1. $17.3 aril. State Aid 13.7% 11.0% Local Receipts 21.6 % 17.5% Other 4.2% 4.9% State Aid - not keeping p Education $8,881 $7,740 - 12.8 %' Environ & Recr 355 212 -40.1% Health Care 11,810 19,401 +64.3% Human Service 4,409 4,109 -6.8% Infrastructure 2,389 2,323 -2.8% Law /Pub Safety 3,056 2,655 -13.1% LOCAL AI D 2,090 1, 22 -51.1% Other 5,513 5,012 -9.1% TOTALS 38,501 42,473 +10.3% 1 3, 500 12,500 10,500 Single Family 9,500 Home Taxes* 8,500 7,500 6,500 5,500 4,500 60,000 80,000 100,000 12 0, 000 140,000 160,000 1 3, 500 12,500 11,500 1 Single 0,500 Family 9,500 Home Taxes* 8,500 7,500 6,500 5,500 4,500 60,000 RMT M. t- 0 - 70 M 80,000 100,000 120,000 140,000 160,000 Peer Expenses Public Safety 9.2% 8.7% +0.5% Culture & 2.1% 1.7% +0.4% Recreation Education 39.3% 39.11 +0.2% DPW 5.1% 4.9% +0.2% Human Service 0.6% 0.7% -0.1% Fixed Costs & 17.7% 17.8% -0.1% Debt Other (Ent Funds) 22.4% 22.8% -0.4% Gen'l Gov't 3.6% 4.3% -0.7% Peer Education Expenses Peer average is 15.8% enrollments/ population; Reading is higher at 17.4% Pop. Enroll % Enroll % Budget Pop. Enroll % Enroll % Budget Westford 23,265 5,139 22.1% 45.0% North Andover 29,217 4,795 16.4% 41.0% Lexington 32,650 6,785 20.8% 36.0% Walpole 24,818 3,946 15.9% 41.9% Winchester 22,079 4,505 20.4% 36.8% Natick 35,214 5,368 15.2% 34.2% Westborough 18,630 3,624 19.5% 44.4% Canton 22,221 3,326 15.0% 35.8% Bedford 13,975 2,522 18.0% 39.7% Wilmington 23,147 3,448 14.9% 44.0% Lynnfield 12,395 2,205 17.8% 43.9% Milton 27,270 4,011 14.7% 38.3% Andover 34,477 6,076 17.6% 42.3% Burlington 25,463 3,499 13.7% 39.7% Mansfield 23,566 4,144 17.6% 44.9% Wakefield 26,080 3,439 13.2% 31.7% Reading 25,327 4,407 17.4% 39.3% Danvers 27,483 3,588 13.1% 31.9% Belmont 25,332 4,283 16.9% 34.2% Tewksbury 30,107 3,658 12.1% 36.3% Marshfield 25,509 4,267 16.7% 44.4% Dedham 25,299 2,776 11.0% 31.5% North Reading 15,377 2,556 16.6% 38.8% Concord 19,285 2,114 11.0% 50.2% Shrewsbury 36,309 6,016 16.6% 43.4% Stoneham 21,734 2,317 10.7% 35.2% Reading is a bedroom community with a low commercial tax base has residential property taxes that are below Peer averages has a large student population to educate ® desires a high quantity and quality of services from town & schools Revenues are constrained below 3% for the foreseeable future ® economic development efforts are underway but will take — 5 years Non - Town /School Expenses are projected to increase by 5% annually => Town /School budgets will need to increase at 0.7% annually Reserves are projected to decline ® $2 million annual Reserves support to Town /School budgets will need to stop => Town /School budgets will need to decrease by 0.3% annually An Operating Override can moderate or eliminate the need for the Town & Schools to curtail staffing & services Selectmen concerns: Increasing gap in expectations of the community Elderly residents ability to pay Maintaining quality of services — no more creative cost cuts Maintaining quantity of services Any proposed Override should project to last for many years 16_�_ A top priority of the Board is to encourage seniors to `age in place' in their homes, and the community we all call home. This issue is becoming a national challenge, especially in suburbs near urban centers as a new generation moves in. The town has already taken some proactive steps —for example the recently enacted `inlaw apartment' zoning change is now being considered state -wide by the MA Senate. Our economic development planning efforts have the interests of our senior population front & center. This segment of the population has the highest projected growth rate over the next 20 years. 1. Accept Optional Cost of Living Increases for Seniors and Surviving Spouses OGR 15 -206) affects about 20 residents but that may grow Increase 2. the Elderly - • • 1 to $1000 ' 02-209; 59 s 5 cl 41 c) NOT the tax work-off program which is already $ 1,000 3. Lower the interest rate on those who qualify to defer taxes on their homes from 8% to 4 %. Note the state law penalty of 16% if the owner passes away while living in the home Possible , A4,j lVatiohal Guard /l�_Qservist deferral; Veteran's work -off program 4. Horne Rule Petition to shift taxes to other taxpayers. Likely qualification will be those that are eligible for the state tax circuit breaker (about 650 residents ?) and the tax benefit would be graduated depending on income levels. Sudbury has a framework we like, but we will customize it to work in Reading. We have met with our legislators and they will be fully supportive. Other communities are aware of our efforts and very interested —this may also evolve to a state -wide effort. Further discussion by the Selectmen for the next six weeks, meeting jointly with the Board of Assessors in July. I i I jj�ljllji p I Sorted by reliance on Residential Tax Base: Milton Winchester Belmont Marshfield FEADI NG Concord Stoneham Lexington North Reading Lynnfield North Ando\,er Shrewsbury Walpole TOT Most Rec 8 2009 YES 10 2015 NO 6 2015 YES 15 2008 YES' 5 2003 YES 22 2006 YES 6 2011 NO 19 2007 YES 14 2009 NO 4 2011 YES 8 2007 YES 6 2014 YES 4 2012 YES Fbs% SPUT 6/09 96.1 1.61 3/07 95.0 0.94 4115 94.4 1.0 4107 92.1 1.0 4103 91.4 1.0 4106 91.0 1.0 88.9 1.70 6/07 87.6 1.96 2/05 87.3, 1.0 6/11 87.2 1.19 6(07 87.2 1.41 6/ 14 87.0 1.0 6/12 86.4 1.33 Wakefield Westford Tewksbury Dedham Ando\,er Bedford Canton Natick Mansfield Wilmington Dan\ers Westborough Burlington TOT Most Fbcent t YES 1 1990 YES 3190 212006 NO 3199 2 2007 NO 0 2 2003 NO 0 2 2008 YES 5/08 4 2008 Y6B 3108 2 2000 YES 4100 3 1995 NO 0 0 0 Feb% SPUT 84.9 2.02 84.7 1.01 81.8 1.69 80.5 2.14 80.2 1.65 78.6 2.20 77.4 2.06 77.4 1.0 76.5 1.34 76.4 2.28 74.0 1.44 64.5 1.0 62.7 2.59 Conservative Financial Practices Earned an upgrade to AAA by S &P Spent money in order to save money Reduce Out of District Special Education; Energy Improvements; Capital Equipment upgrades; Modern Technology infrastructure Intra- regionalization Town /Schools share software systems & personnel Regionalization Share staff & resources with several communities Spent one -time money on one -time expenses Warned Town Meeting for several years of the underlying Financial Condition Listen to the Community What Services should be added? What Services do you use that you would be willing to give up? (past community forums have had difficulty with this request) Would you prefer to target fees instead of taxes? (for example, a trash fee) What are you concerned about as a resident of Reading? Listen to the Community For example: Town departments Run rate +3.2% Wages $17.2 million If available -0.3% Expenses $ 8.2 million CUTS: $890,000 $1.3 Admin Services ($0.6 mil insurance & legal;$0.4 mil technology) $0.4 Public Services ($0.3 mil Veterans & health) $0.1 Finance $0.5 Public Safety $3.2 Public Works ($2.3 mil is rubbish /snow /street lights) $0.3 Library $2.4 Facilities ($1.5 mil energy; $0.8 mil maint.) Town of Reading Community Listening Meetings . .. Thursday June 16th 7:00pm Parker MS Auditorium