The URL can be used to link to this page

Home My WebLink About2016-08-09 Board Of Selectmen PacketOF 1?f c `.., Office of the Town Manager 16 Lowell Street 6J9'InC Reading, MA 01867 To: Board of Selectmen From: Robert W. LeLacheur, Jr. CFA Date: August 4, 2016 RE: BOS Agenda for August Stn 781 - 942 -9043 townmanager @ci.reading.ma.us www.readingma.gov /town - manager Your meeting next week will be held at the Pleasant Street Center due to expected public interest. More information in advance of this meeting will be sent out to the Board over the weekend, as Victor and I are still working over some details on tax policy. The first item on your agenda is a vote to accept Phase 9 of MWRA Infiltration and Inflow Local Financial Assistance Program funding. This phase totals $844,000 and is comprised of a $633,000 grant and a $211,000 low- interest loan. Article 16 of the April 2015 Annual Town Meeting authorized the debt portion for both Phases 9 & 10. At approximately 7:30pm the Board will then be in a Workshop mode for the remainder of the meeting. The first item of discussion is a combination of Senior Tax Relief and Tax Classification. Recall from your last meeting that some draft version Senior tax benefits could be as high as 50% of the property tax bill. After some digging and informal discussions with state officials, Victor and I have concluded that there is too much risk in providing such a large tax benefit, as the state may introduce a model in the next couple of years that caps the benefit. We are therefore working out details and planning to cap the benefit somewhere below the $2,000 level. Otherwise Seniors may get a larger benefit offered by Reading then taken away by the state in future years. On tax classification, I will describe some impacts on both commercial and single family residential property owners. It is important to keep in mind that these two types of owners represent 85% of their respective property classes. Victor will then continue his analysis for the Board on Senior Tax Relief. I suggest the Board consider all the information, have a thorough discussion, and take a vote on a factor. This vote will not be legally binding, but a good -faith indication to the community of expected Board action next November when actual tax rates are set. I will then conduct a discussion of our current and future financial condition. I have modelled through FY25, a time when both the High School and Library excluded debt will be fully repaid. The projected $3 million structural deficit in FY18 will require a $6 million Override in order to meet the conditions I will describe, including a target +3.5% annual operating budget. This projected annual operating increase, given good financial management, should allow both the town and the schools to �61 achieve additions to their baseline budget from time to time. In general terms, up front additions to FY18 budgets will need to be added dollar- for - dollar to an Override amount, as I will describe. The schools have presented a figure of just less than $2 million of requested additional FY18 funds, and have agreed that the current budget model works well for them. As such, I will show a set of loosely ranked priorities for the town side to match our 64/36 split in the operating budget. Lastly after some discussion with Chairman Halsey, we believe it would beneficial for the Board to call for a Special Town Meeting for September 12th and for a Special Election for October 18th by a formal vote on August 9th. The details of such a Town Meeting will be determined on August 16th when the Board closes a Warrant. The details of Ballot questions (Override and Senior Tax Relief — though the latter could wait until next spring's local election if you prefer) need to be completed by mid - September, and we will discuss the timeline thoroughly on August 9th On August 16th the Board will have about an hour of previously scheduled business, including a license for underground storage that is straightforward, and then two Public Hearings on 1) a liquor license transfer to Stop & Shop and 2) Alteration of the premises (currently Fusilli's) proposed by Bistro Concepts Inc. Note that previous Boards imposed a series of conditions for a liquor license at the Atlantic Market — we will share those in advance for your review. The rest of the meeting will be with invited members from the Board of Library Trustees and the School Committee to discuss the size of the Override. While the deadline is later, I believe it would be helpful for the Board to close in on the form of the question and a figure, or at least a narrow range of figures. In the financial overview on August 9th I will present impacts of a range of Overrides to various types of taxpayers. At the end of your meeting, you have a Public Hearing to close the Warrant for a September 12th Special Town Meeting. I have included draft language for seven of the eight articles in this packet — with Senior Tax Relief remaining an open issue. Other important dates are: August 31St — FINCOM meeting to preview the Override discussion; and September 1St a Community Financial Forum at the RMHS PAC. Your next scheduled Board meeting is th September 6 0 LeLacheur, Bob From: Heffernan, Nancy Sent: Tuesday, August 02, 2016 11:35 AM To: LeLacheur, Bob; Schena, Paula 0 p,. Cc: Percival, Ryan; Kinsella, Jane Subject: MWRA Sewer I/I funding Bob /Paula, I just received the initial documents from the MWRA for the $844,000 funding request submitted by George for the August funding. In order to meet the MWRA deadlines, it would require a vote of the BOS at their meeting on 8/9. Is this possible? Thanks, Nancy Nancy J. Heffernan, CMMT, CMMC Town of Reading Treasurer - Collector /Asst. Finance Director 16 Lowell St Reading MA 01867 Ph: (781) 942 -6634 Fax: (781) 942 -9037 Please note Town Hall Hours: Monday, Wednesday and Thursday: 7:30 a.m - 5:30 p.m. Tuesday: 7:30 a.m. - 7:00 p.m. Friday: CLOSED web www.readingma.gov email nheffernan(c�ci. reading. ma. us When writing or responding, please remember that the Secretary of State's Office has determined that email is a public record. This communication may contain privileged or other confidential information. If you are not the intended recipient, or believe that you have received this communication in error, please do not print, copy, retransmit, disseminate, or otherwise use the information. Also, please indicate to the sender that you have received this email in error, and delete the copy you received. s p � tlAfe_ and /or replacement of sanitary sewer collection ,systems, Including the costs of consulting services, audits, plans, documents, cost estimates, bidding services and all related expenses Incidental thereto and necessary in connection therewith, said sum to be oxponded by and under the direction of the Town Manager; and to see if the Town will authorize the Board of Selectmen, Town Manager, or any other agency of the Town, to apply for a grant or grants, to be used to defray the cost of all, or any part of, said sanitary sewer improvements; and to authorize the Town Manager to enter into any and all contracts and agreements as may be necessary to carry out the purposes of this Article, or take any other action with respect thereto. Board of Selectmen Backciround: The MWRA's Infiltration and inflow (III) local f=inancial Assistance Program provides support to MWRA member communities to perform sewer rehabilitation to minimize excess (tows due to infiltration and Infiow into the sewer system. In previous years the Assistance Program provided financial assistance to member communities through a combination of a 45% grant and a 55% low- interest loan. MWRA has revised the program for the current Phase 9 and future Phase 10. The financial assistance for these two phases will be allocated to member communities in the form of a 75% grant and a 25% low - interest loan. MWRA Assistance • The assistance Is provided through a combination grant and low - interest loan • Phase 8 Allocation balance $71,000 (45% grant; 55% low- interest loan) Phase 9 Allocation is $844,000 ($633,000 grant; $211,000 low- interest loan) • Phase 10 Allocation Is $844,000 ($633,000 grant; $211,000 low - Interest loan) • Loan pay back to the MVVRA - equal installments up to a ten year period beginning one year after distribution of the funds Acceptance of the grant/loan offer will enable the Town to continue with its 1/1 removal program to remove unwanted sewage flows from the sewer system which reduces excess assessments from MWRA and decreases the excess demand on the sewer system. The anticipated project for thls Phase will be to perform manhole rehabilitation, spot repairs, lining and replacement of sewers. Infiltration occurs when surface water enters sewers through leaks, cracks and faulty joints In pipes and manholes. Inflow is caused frorn storm water runoff that enters the sewer system through Improper connections such as cross connected drains, roof drains and sump pumps. Since the Inception of MWRA's Assistance Program the Town's 1/1 removal program has consisted of the following types of projects: • House -to -house inspections o The house -to -house Inspections identify inappropriate direct connections (inflow) to the Town's sewer system with the purpose of assisting residents with Identifying methods to remove the connections. The Town also provides limited financial assistance to the homeowner. • TV Inspections, testing and sealing of manholes and sewer mains 26 (Z Office of the Town Clerk 781- 942 -9050 ARTICLE 16: Town of Reading 16 Lowell Street Reading MA 01867 ANNUAL TOWN MEETING APRIL 30, 2015 P1�4 -((\g, 9 �- r0 fax: 781- 942 -9070 website: www.readingma.gov On motion made by the Board of Selectmen it was voted to appropriate the sum of Four hundred twenty - two thousand ($422,000) dollars for the purpose of making extraordinary repairs and /or replacement of sanitary sewer collection systems, Including the costs of consulting services, audits, plans, documents, cost estimates, bidding services and all related expenses Incidental thereto and necessary In connection therewith, said sum to be expended by and under the direction of the Town Manager; and, for the purpose of meeting such appropriation, to authorize the Town Treasurer, with the approval of the Board of Selectmen, to borrow said sum in accordance with Chapter 44, Section 7 (1) of the Massachusetts General Laws, or any other enabling authority; and to see If the Town will authorize the Board of Selectmen, Town Manager, or any other agency of the Town, to apply for a grant or grants, to be used to defray the cost of all, or any part of, said sanitary sewer Improvements; and to authorize the Town Manager to enter Into any and all contracts and agreements as may be necessary to carry out the purposes of this Article. 2/3 Vote Required Declared by Moderator 150 Town Meeting Members in Attendance A true copy Attest: Laura A Gemrne, CMMC Town Clerk 'J FR ,PJO° rNtoaP °� Office of the Town Manager 16 Lowell Street Reading, MA 01867 For Immediate Release 781 - 942 -9043 townmanager @ci.reading.ma.us www.readingma.gov /town - manager *Media Advisory* Contact: Matt Kraunelis mkraunelis@—ci.reading.ma.us or 781 - 942 -6611 Reading Selectmen To Discuss Key Tax Policy Initiatives WHO: The Board of Selectmen and Town Manager announce a meeting at which key tax policy for the town will be discussed. WHAT: The Reading Board of Selectmen will discuss important tax policy for the town focusing on the senior citizen population, businesses, and residential tax rates. WHEN: Tuesday, August 9, 2016 beginning at 7PM WHERE: Pleasant Street Center 49 Pleasant St., Reading, MA 01876 Parking lot and street parking available BACKGROUND: Recent discussions in the community regarding a Proposition 2 `/z override vote for Fiscal Year 2018 has prompted the Board of Selectmen to look at certain aspects of tax policy before voting to call for a special election. The Selectmen will be discussing offering $1 million (or more) of tax relief to seniors that own property in town and have limited income. Tax relief would be in the form of a Home Rule Petition, which would need to receive approval from Town Meeting, Reading voters, and the Commonwealth. If tax relief is granted, by law the amount of the relief would be shared only by the rest of the residential class of taxpayers. On August 9"' the Selectmen will discuss whether the commercial taxpayers should share in senior tax relief, which would be accomplished by changing the Tax Classification factor. While a formal Classification Hearing cannot be held until later in the fall when tax rates are certified, the Board is expected to indicate what their future tax policy will be. �3 DRAFT - BOARD OF SELECTMEN 2016 AGENDAS 2016 81412016 Responsibility Start time August 9, 2016 Senior Center 7:00 MWRA Infiltration and Inflow Local Financial Assistance Program LeLacheur 7:20 Senior Tax Relief & Tax Classification Discussion LeLacheur & Santaniello 7:30 Financial Review & Proposition 2 -1/2 Override discussion LeLacheur 8:45 Discuss calling for Special Town Meeting on September 12th followed by a Special Election on October 18th LeLacheur 9:45 August 16, 2016 Office Hour Barry Berman Amend license for underground storage tank at 83 - 85 Main Street to change one tank from gasoline to diesel 7:20 Hearing Transfer Liquor License from Brooks Brew and Fine Wines, 676 Main Street, to Anastasi Brookline, 25 Walkers Brook Drive 7:30 Hearing Alteration of Premises for Bistro Concepts Inc. 7:45 Override discussion - joint meeting with School Committee and Board of Library Trustees 8:00 Hearing Close Warrant for September 12th Special Town Meeting LeLacheur 9:30 Community Financial Forum 9/1/16 @RMHS Thursday 7:OOpm September 6, 2016 Office Hour Kevin Sexton Fire Badge Pinnings Burns 7:20 FY17 Goals & Reading 2020 update LeLacheur 7:45 Preview Warrant for November Subsequent Town Meeting (begins 11/14/16) LeLacheur 9:00 State Election September 8, 2016 Thursday Special Town Meeting September 12, 2016 Monday Call for Special Election on October 18, 2016 (formal notification to Town Clerk) we September 20, 2016 Trust Fund Commissioners 7:30 Close Warrant for November Subsequent Town Meeting (begins 11/14) LeLacheur Town Manager Performance Evaluation Halsey October 4, 2016 Office Hour Dan Ensminger Close Warrant for October 18, 2016 Special Election LeLacheur Vote Warrant Articles for Subsequent Town Meeting 11/14/16 LeLacheur Special Election October 18, 2016 (TBA) Tuesday October 25, 2016 Close Warrant for Presidential and State Elections 11/8/16 Finacial Forum 10/26/2016 Pleasant St Ctr 7:30 Presidential and State Elections 11/8/16 Tuesday Town Meeting November 14, 2016 Monday November 15, 2016 we Office Hour John Halsey Town Meeting November 17, 2016 Thursday Town Meeting November 21, 2016 Monday Town Meeting November 28, 2016 Monday November 29, 2016 Town Meeting December 1, 2016 Thursday December 13, 2016 Office Hour John Arena Future Agendas Board of Selectmen Policies: Article 1 General Operating Procedures LeLacheur Board of Selectmen Policies: Article 2 Volunteer Boards /Committees /Commissions LeLacheur Board of Selectmen Policies: Article 3 Licenses LeLacheur Recurring Items Close Warrant: Nov TM by 9/27 Close Warrant: Presidential & State Elections by 11/1 (Elections are 11/8) Review BOS /TM Goals Mar & Sep Semi -ann Appointments of Boards & Committees June Annual Hearing Approve Classification & Compensation June Annual Hearing Tax Classification October Annual Approve licenses December Annual Reports to BOS Town Accountant Report Qtrly RCTV members Report Semi -ann CAB (RMLD) member Report Semi -ann MAPC member Report Annual Reading Housing Authority Report Annual Reading Ice Arena Report Annual BOS Appointed Boards & Committees Annual DRAFT - BOARD OF SELECTMEN 2017 AGENDAS 2017 81412016 Staff Estimated January 10, 2017 Pleasant St Ctr Office Hour Barry Berman 6:30 FY18 Town Budget 7:15 Budget Overview LeLacheur Public Services Delios Facilities Huggins Finance Angstrom Administrative Services Kraunelis January 11, 2017 Pleasant St Ctr FY18 Town Budget 7:15 Public Safety - Fire /EMS Burns Public Safety - Police Segalla Public Safety - Dispatch Segalla Public Library Lannon & Trustees Public Works Zager Enterprise Funds LeLacheur Benefits, Miscellaneous LeLacheur Capital /Debt LeLacheur Budget Summary LeLacheur January 24, 2017 Preview - Annual Town Meeting LeLacheur 7:20 January 25, 2017 - Financial Forum Pleasant St Ctr 7:30 February 7, 2017 Office Hour John Arena 6:30 February 21, 2017 Senior Center Town Accountant Quarterly Report Angstrom 7:20 Hearing Close Annual Town Meeting Warrant LeLacheur 7:45 Hearing Water, Sewer and Storm Water Rates for FY18 (effective December 2017 billing) LeLacheur 8:00 March 7, 2017 Office Hour John Halsey 6:30 3 Vote Annual Town Meeting Warrant Articles LeLacheur March 21, 2017 Local elections April 4, 2017 Tuesday April 11, 2017 Office Hour Dan Ensminger 6:30 Board Reorganization LeLacheur 7:00 Appoint Board of Assessor VASC 7:05 Discuss Board Liaison Assignments Chair 7:10 Town Meeting April 24, 2017 Monday Town Meeting April 27, 2017 Thursday Town Meeting May 1, 2017 Monday May 2, 2017 Office Hour Kevin Sexton 6:30 Town Accountant Quarterly Report Angstrom 7:20 Board & Committee updates LeLacheur 7:45 Town Meeting May 4, 2017 Thursday May 16, 2017 Board & Committee updates LeLacheur 7:20 May 30, 2017 Board & Committee updates LeLacheur 7:20 June 13, 2017 Office Hour Barry Berman 6:30 Appoint Boards & Committees VASC 7:20 Hearing FY18 Non Union Classification & Compensation Plans LeLacheur 7:50 June 27, 2017 ED Future Agendas Board of Selectmen Policies: Article 1 General Operating Procedures LeLacheur Board of Selectmen Policies: Article 2 Volunteer Boards /Committees /Commissions LeLacheur Board of Selectmen Policies: Article 3 Licenses LeLacheur Review Inflow & Infiltration policy Percival Oakland Road status & plans LeLacheur Strout Avenue Master Plan Delios Downtown Parking Segalla Recurring Items Close Warrant: Apr'17 TM by 2/28 Close Warrant: Nov ' 17 TM by 9/26 Review BOS /TM Goals Dec & June Semi -ann Appointments of Boards & Committees June Annual Hearing Approve Classification & Compensation June Annual Hearing Tax Classification October Annual Approve licenses December Annual Reports to BOS Town Accountant Report Qtrly RCTV members Report Semi -ann CAB (RMLD) member Report Semi -ann MAPC member Report Annual Reading Housing Authority Report Annual Reading Ice Arena Report Annual BOS Appointed Boards & Committees Annual ED Saunders, Caitlin From: Schena, Paula Sent: Thursday, August 04, 2016 7:43 AM To: Saunders, Caitlin Subject: FW: [Reading MA] On the subject of the override From: LeLacheur, Bob Sent: Wednesday, August 03, 2016 4:23 PM To: Schena, Paula Subject: FW: [Reading MA] On the subject of the override BOS packet Robert W. LeLacheur, Jr. CFA Town Manager, Town of Reading 16 Lowell Street, Reading, MA 01867 townmanaeerCcDci.readine.ma.us (P) 781 - 942 -9043; (F) 781 - 942 -9037 www.readingma.gov Town Hall Hours: Monday, Wednesday and Thursday: 7:30 a.m - 5:30 p.m.;Tuesday: 7:30 a.m. - 7:00 p.m.; Friday: CLOSED - - - -- Original Message---- - From: vtsdmailer @vt -s.net [mailto:vtsdmailer @vt- s.net] On Behalf Of dorian.hart @comcast.net Sent: Wednesday, August 03, 2016 4:23 PM To: Reading - Selectmen Subject: [Reading MA] On the subject of the override Hello Board of Selectmen, Dorian Hart (dorian.hart@comcast.net) has sent you a message via your contact form (http: / /www.readingma.gov /user /475 /contact) at Reading MA. If you don't want to receive such e- mails, you can change your settings at http: / /www.readingma.gov /user /475 /edit. Message: Dear Reading Board of Selectmen, Earlier this year we attended a meeting wherein you outlined the financial challenges facing Reading, and presented the pros and cons of a tax override for the town. In case you are looking for resident input as to whether to hold a vote on the override, please allow us to say a few words. ':J We have been Reading residents for 12 years, and we have two children in the school system (one at Killam Elementary, and one just about to start at Parker Middle as a 6th grader). We have enjoyed living here immensely, and think highly of the way the town has been administered. With the fiscal difficulties coming down the pike, we find it overwhelmingly clear that an override is the right thing for Reading. At the same time the town is losing good teachers and other personnel, and finding it difficult to attract new talent, Reading has gone far longer than the surrounding towns in asking its citizens to pay a little more to maintain its high standards. We are overdue for an override. We are not unmindful of the impact of a tax increase on our poorer senior citizens, and we support efforts to include tax relief for poor seniors alongside a general tax increase. But letting our schools, infrastructure, and services fall increasingly behind our peer communities will not lead to a stronger town for *any* of our residents, young or old. And as you know, due to the lack of an override, the typical Reading resident has actually seen an effective tax *decrease* over the last decade. Reading's residents can, and we hope will, make the financial contributions necessary to keep and hire the best teachers, keep and expand town programs, and make sure we do not fall farther behind the surrounding towns. We wholeheartedly support an increase in our property taxes to strengthen our schools, our services for the elderly, and all the other programs that the town of Reading provides to its people. As such, we urge you to go forward with plans to hold a vote in October allowing Reading residents the option to vote on an override. And when the time comes for the vote itself, you can be certain we will vote, resoundingly, "yes." Thank you for your consideration, Dorian Hart & Kate Jenkins John Street, Reading ' S LeLacheur, Bob From: vtsdmailer @vt -s.net on behalf of ecalvobacci5 @gmail.com Sent: Thursday, August 04, 2016 10:40 AM To: Reading - Selectmen Subject: [Reading MA] Split Tax Hello Board of Selectmen, Erin Calvo -Bacci (ecalvobacci5 @gmail.com) has sent you a message via your contact form (http: / /www.readingma.gov /user /475 /contact) at Reading MA. If you don't want to receive such e- mails, you can change your settings at http: / /www.readingma.gov /user /475 /edit. Message To the Reading Board of Selectmen and Town Manager, my name is Erin Calvo -Bacci and I own 494 Main Street, home to The Chocolate Truffle. With the current commercial conditions in Reading, I strongly oppose a commercial split tax because it will hurt more than help the town. Two of a business's largest expenses are overhead and payroll. The commonwealth has been making it increasingly hard for Main Street retailers with increasing minimum wage and costly mandates. Currently the town has four empty storefronts on Main Street in the center and two on Haven Street. I understand and see value of a split tax in neighboring communities such as Wilmington because they have industry. Unlike residential, businesses do not receive services for the taxes they pay and in the end the town residents will pay for the increase in either the goods and services they purchase or the continuation of the overburdens from the hefty amount of residential properties compared to commercial. The current Town Manager once asked what services are we, the town residents willing to go without to help cut costs. So what are retail business going to do without? A business might go without staff or even having a brick and mortar and leaving the town all together. The retail business climate is challenging and there currently isn't a plan for Reading to attract, retain or support retail. Sadly just because you bring them through more housing doesn't mean they'll shop. Just as Selectman Berman said, the current lack of support for retail is based on the number of people who live here, but shop where they work which isn't in Reading. So who will this split tax benefit and who will it hurt the most? Sincerely, Erin K. Calvo -Bacci l(O I, the Clerk of the Board of Selectmen of the Town of Reading, Massachusetts, certify that at a meeting of the board held August 9, 2016, of which meeting all members of the board were duly notified and at which a quorum was present, the following votes were unanimously passed, all of which appear upon the official record of the board in my custody: Voted: that the sale of the $211,000 Sewer Bond of the Town dated August 22, 2016, to the Massachusetts Water Resources Authority (the "Authority ") is hereby approved and the Town Manager is authorized to execute on behalf of the Town a Loan Agreement and a Financial Assistance Agreement with the Authority with respect to the bond. The bond shall be payable without interest on August 15 of the years and in the principal amounts as follows: Year Installment Year Installment 2017 $21,100 2022 $21,100 2018 21,100 2023 21,100 2019 21,100 2024 21,100 2020 21,100 2025 21,100 2021 21,100 2026 21,100 Further Voted: that each member of the Board of Selectmen, the Town Manager, the Town Clerk and the Town Treasurer be and hereby are, authorized to take any and all such actions, and execute and deliver such certificates, receipts or other documents as may be determined by them, or any of them, to be necessary or convenient to carry into effect the provisions of the foregoing vote. I further certify that the votes were taken at a meeting open to the public, that no vote was taken by secret ballot, that a notice stating the place, date, time and agenda for the meeting (which agenda included the adoption of the above votes) was filed with the Town Clerk and a copy thereof posted in a manner conspicuously visible to the public at all hours in or on the municipal building that the office of the Town Clerk is located or, if applicable, in accordance with an alternative method of notice prescribed or approved by the Attorney General as set forth in 940 CMR 29.03(2)(b), at least 48 hours, not including Saturdays, Sundays and legal holidays, prior to the time of the meeting and remained so posted at the time of the meeting, that no deliberations or decision in connection with the sale of the bond were taken in executive session, and that the official record of the meeting was made available to the public, all in accordance with G.L. c.30A, § §18 -25 as amended. I further certify that the votes have not been amended, supplemented or revoked and remain in effect on this date. Dated: August 9, 2016 Clerk of the Board of Selectmen AM 58542014.1