HomeMy WebLinkAbout2016-08-09 Board of Selectmen Minutes FR
Town of Reading
x c
o Meeting Minutes
RECEIVED
TOWN
CLERK
loam READING. MASS,
Board - Committee - Commission - Council:
4
Board of Selectmen 181b SEP 21 p`
Date: 2016-08-09 Time: 7:00 PM
Building: Pleasant Street Senior Center Location: Great Room
Address: 49 Pleasant Street Session: Open Session
Purpose: General Business Version:
Attendees: Members - Present:
Chairman John Halsey, Vice Chairman Kevin Sexton, Secretary Barry
Berman, John Arena (remotely) and Daniel Ensminger
Members - Not Present:
Others Present:
Town Manager Bob LeLacheur, Administrartive Services Director Matt
Kraunelis, Assessor Victor Santaniello, Executive Assistant Paula Schena,
Carol Shattuck, Jan and Art Triglione, Dave Crowley, Samantha Carreiro,
Robin Krane, Kathy Hudd, Rosemary Murphy, Andrew DiGiacomo, Craig
Burkinshaw, Jayne Miller, Jack Devir, Peter E. Branch, Tom O'Connor, Lisa
Egan, Stephen Crook, Ralph Colorusso, Christine Hansen, Leslie Leahy, Tina
and John Brzezenski, Angela Binda, Rick Nazaro, Jen Hillery, Rachel Hitch,
Elaine Webb, Mark Dockser, Julie Thurlow, Al Sylvia, James Martin, Karen
Dolan, Michele Sanphy, Amy Cole, Paula Perry, Kathi Crook
Minutes Respectfully Submitted By: Secretary Barry Berman
Topics of Discussion:
Reports and Comments
Selectmen's Liaison Reports and Comments - Barry Berman noted that the 2020 Planning
Group has created a plan for filling the Economic Development Planner position.
John Halsey noted that he attended the School Committee meeting 10 days ago. They
discussed their budget and finances and will be sending the Board some information. The
School Committee is expecting $1.9 million and some members of the School Committee
will be at the August 16th meeting.
Public Comment - Bill Brown noted that the topic of the sign board on the Common was
brought up at the last meeting and he noted that the Selectmen have control over the
Common.
Rosemary Murphy, 47 Batchelder Road noted that she is opposed to the Wood End Garage
that is being proposed and everyone on Batchelder Road is opposed.
Katy Hudd, 34 Batchelder Road, noted that the proposed garage would be in her backyard
and she is opposed to it.
Page 1 1
Board of Selectmen Minutes - August 9 2016 - page 2
Bill Brown noted that there is no room at the DPW for the cemetery garage. John Halsey
noted that this will eventually end up at Town meeting and she should speak with Town
Meeting members.
Rick Nazarro asked why the garage has to be at a cemetery and John Halsey noted that we
have been charged by Town Meeting to find a location for a cemetery garage.
Bobbie Botticelli noted that she is not affected by a cemetery garage. She also noted that
Partridge Lane was not easy because there was a cemetery there and a garage would be
awful.
Daniel Ensminger asked who has control of the expenditure of funds for this and the Town
Manager noted that Town Meeting authorized him but he does not have to spend the
money. He feels it is good that the neighbors are attending the meetings.
Rick Nazzaro asked if the families of people who are buried there have been notified
because not everyone has email or computers.
Town Manager's Report - The Town Manager noted that the Permanent Building Committee
met last night. Their next meeting is August 29th at Town Hall. Their desire is to find the
best location in a cemetery under the direction of Town Meeting.
Discussion/Action Items
MWRA infiltration and Inflow - The Town Manager noted that this is for a 55/45% grant loan
program and Town Meeting will finalize it.
A motion by Berman seconded by Ensminger 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 move 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. The motion
was_approved on a roll call vote with all five members voting in the affirmative.
Senior Tax Relief and Tax Classification Discussion - The Town Manager noted that ,the tax
classification usually happens in November. He reviewed tax data information from FY16,
FY11 and FY06 and noted that the commercial has grown at a faster rate than residential.
The largest growing sector is personal property at 9.5%.
Page 1 2
Board of Selectmen Minutes - August 9, 2016 - page 3
The commercial property assessed value ranges in Reading are as follows:
84 parcels at $100k - $500k
61 parcels at $500k - $1 m
35 parcels at $lm - $2m
8 parcels at $2m - $3m
12 parcels at $3m - $10m
6 parcels at $10+m
The Town Manager noted that the desire is to grow each by 50% but there is not enough
land. If we can double Walkers Brook Drive property on another location then we would
increase the commercial by 50%.
Assessor Victor Santaniello talked about senior tax relief. He noted that we already employ
some that is allowed by law. Two towns - Wayland and Sudbury - have a Home Rule
Petition.
The Senior Circuit Breaker Credit is a refundable real estate credit for people who are 65
years or older; who's income if single is no more than $57,000, married is up to $85,000
and head of household is $71,000; they must also have an assessed real estate value that
does not exceed $693,000. The Circuit Breaker Credit is income based and we would use
that as a qualifier. The person would have to have a domicile in Reading for the past 10
yea rs.
Daniel Ensminger asked if the person has to have owned the home for 10 years and Victor
Santaniello noted no, they could have been renting some of those years but they have to
own property to qualify.
Barry Berman asked how many got the Circuit Breaker Credit last year and Victor
Santaniello noted 642 in 2014.
Mr. Santaniello noted that other residential tax payers will pay for the tax relief. If he took
$1 million and shifted it would add about $.25 to the tax rate. For a maximum circuit
breaker amount of $1070 he would recommend a multiple of 1.5 so someone who gets
$1070 for the Circuit Breaker would get $1605. If 400 people qualify with a 1.5 shift that
would equal $642,000.
John Halsey asked how the percentage gets chosen. The Town Manager noted that there is
a range of 1.5 - 2% and the Board of Selectmen can determine where in that range we
want to be.
John Arena clarified that the percentage increase of $.25 is per thousand not just $.25.
John Arena also asked about a cap on the amount and the Town Manager noted that the
legislation wouldn't have a cap, just a percentage.
Barry Berman noted that we need a fixed number that we are willing to shift when we set
the budget.
John Halsey summarized noting that the Board of Selectmen decide what percentage to
use; 642 more or less is the maximum number to qualify; and the 10 year requirement will
prevent people from moving to Reading just for the tax break.
Barry Berman indicated that he thinks a lot more people will qualify. He asked if there is
any way to know how many more might apply and Victor Santaniello responded no, but we
can also set by income so that the more you make the less you get.
Page 1 3
Board of Selectmen Minutes - August 9 2016 - page 4
Daniel Ensminger asked about the form of the tax break and Victor Santaniello noted it is a
credit on the tax bill.
Kevin Sexton asked if we can go lower at .5% and Victor Santaniello noted they can set
whatever they want.
John Arena suggested the Selectmen create a policy explaining this Board's think for the
future Selectmen. Victor Santaniello noted that most Home Rule Petitions are good for
three years and then they have to be reapproved.
Barry Berman noted that there are a lot of people who are not seniors who make under
$85,000 as a joint income. Victor Santaniello noted that the qualifying number also
includes water and sewer. The tax plus water and sewer must exceed 10% of their total
income.
John Halsey noted that for a single senior on minimal social security income of $15,000 and
the property taxes are $6,000 that is half of their income. That person would receive the
maximum multiplier but the couple making $85,000 won't get as much.
The Town Manager noted that walking before running is better. He spoke with state officials
and this is a huge topic statewide and they are all looking at Reading. He recommends the
Board be prudent incase the state says no after three years which is what the state did to
Sudbury.
Elaine Webb asked if the Board of Selectmen set the multiplier each year doesn't the cap
increase each year? John Halsey noted that when the applications come in they will have
indicators of how much the Selectmen can reduce the multiplier.
Tina Brzenzenski noted that the retirement age is increasing to 68 years old. John Halsey
noted that we will use whatever the state is using and they use 65. Tina Brzezenski noted
that other state programs use different income levels. John Halsey noted that they picked
the one that most resembles the housing situation. We don't have the time or resources to
look at something else. Ms. Brzenzenski noted that the Town has the census couldn't we use
that and Victor Santaniello noted that we cannot because the census includes renters. Tina
Brzenzenski commented that the person making $20,000 more will be subsidizing the
person making $85,000 and that doesn't seem fair to her. John Halsey noted that the
person making $85,000 is not going to get anything.
John Arena noted that Tina is talking about a different group with different concerns and we
need to separate what we are talking about. The person must live in Reading for 10 years,
own a house and qualify for the Circuit Breaker and there are not a lot who qualify. He
noted that if someone midcareer has a bad year it happens but we're talking about retired
people.
Mike Monihan noted that he feels it is unfair to provide financial benefit to one segment of
the population when there are struggling families with kids. He feels this is discrimination.
85 with les
Angela Binda noted that she doesn't consider older couples 000 income as having
9 P $ � 9
limited income. She can't make a decision without knowing what the other things are.
Michael Giacalone asked if $125 is the top level and Victor Santaniello noted yes, $125 for a
home assessed at $499,000. Mr. Giacalone noted that everybody's situation is different.
He is already paying into the Circuit Breaker and now this will be double dipping. He thinks
this is a back door to shifting the tax split to commercial. Victor Santaniello noted that
income and assets can be adjusted. Mr. Giacalone noted that he thinks we will get a lot
more people than we think. He asked if assets are separate and Victor Santaniello noted
that eligibility is determined by income, assets and the value of the house.
Page 1 4
Board of Selectmen Minutes - August 9, 2016 - page S
Julie Thurlow noted that the Department of Housing and Community Development has
tables for income limits and assets must be considered.
Mark Dockser asked if there was any reasoning of the State guideline of $1070 and Victor
Santaniello noted he wasn't sure.
Carol Shattuck noted that she is a senior and the Board of Selectmen are trying to do the
right thing. She agrees with Michael Giacalone but we have to think about our community
such as the veteran in the wheelchair. We need to do the right thing. There is no right or
wrong and everyone gets their vote.
Barry Berman noted that the override discussion drove this discussion. The Board of
Selectmen believes people can age in place. If a senior sells their house then a developer
will come in, knock it down and build a bigger house. This benefit will go to the people who
really need it. We will be the third town in the state to do this.
John Halsey noted the seniors want to live in their homes. They like to live in Reading. This
is the right thing to do and it stands alone from the override.
Paula Perry noted she doesn't believe this is a separate item because it all ends up in the
tax bill. The Town wants to keep the seniors because it is healthy for the Town and cheaper
for the Town instead of a family with children. She feels it is appropriate. John Halsey
agreed and noted the voters will weigh each piece and vote on it. Voters need all of these
pieces to decide to vote for or against.
A resident asked how Wayland and Sudbury deal with the predictability factor. Victor
Santaniello noted that Sudbury uses a percentage of the total tax levy. They pick a number
and don't exceed it. Wayland has no cap - it is paid for by the overlay. Either way the
burden is passed through to the taxpayers. The resident noted that John Arena wants a
policy and she asked how that would be done. John Halsey noted the Selectmen could vote
that policy if they want. The resident noted that a policy gives her faith because vision is
important to understanding.
Daniel Ensminger noted that a Home Rule Petition would be a Town Meeting Article - it does
not go to the voters. The only thing that goes to the voters is the override. He also noted
that if the tax rate is shifted to commercial it doesn't change the tax levy.
The Town Manager noted that if Town Meeting doesn't approve then we stop right there
with Senior Tax Relief.
Michael Giacalone indicated he feels everything is getting buried in the details.
Daniel Ensminger noted that the Selectmen have been discussing an override for over one
year and Senior Tax Relief for the past four to five months.
Kevin Sexton noted that if they put everything out to the voters then we would have ballots
every day.
Andrew DeGiacomo asked if there is anyway the Town will look at past tax returns to see if
people are hiding their income so they will be eligible. Victor Santaniello noted that we
would only look at the last calendar year and he also noted that people sign under pains and
penalties of perjury.
The Board took a five minute break and reconvened at 9:25 p.m.
Page 1 5
Board of Selectmen Minutes - August 9, 2016 -page 6
Tax Classification Discussion
The Town Manager noted that right now the residents will pay 100% of the senior tax relief
if it is approved. With the senior tax relief equivalent to $1 million a factor of 1.02 will split
the amount for commercial to pay 8% and residents to pay 92%. If we wanted to transfer
all of the costs to the commercial then a factor of 1.19 will do that. We could also split the
amount 50/50 with a factor of 1.10. This is the only tool that the Selectmen have to
override how to share the cost.
Barry Berman noted that we have maintained a single tax rate and asked if we should look
at splitting the tax rate so that all tax payers share in the cost. With a factor of 1 the
residents pay the highest. With a factor of 1.02 then commercial pays 8% and residents
pay 92%. He noted that the other argument is whether the tax split will put businesses out
of business. Surrounding towns have commercial tax rates that are higher than ours and
they are doing well.
Daniel Ensminger recommended deferring this until April when we know the result of the
override. John Halsey asked if he would agree to the tax classification in November and
Daniel Ensminger noted yes, but he doesn't want to rush through because this is very
complex. He feels this will jeopardize the override discussion.
John Halsey noted that the Home Rule Petition for seniors is the right thing to do. It just
happens at the same time but is not related. It should have been done years ago. He
asked if we can select the year that it starts and the Town Manager noted we can but he
reminded the Board that it takes nine months to get a Home Rule Petition through the
legislation. He noted that the clear objective is FY18.
Barry Berman noted that everyone should share the burden. He noted that we are looking
at a very small shift in the payment. The ones paying the biggest share are the big
businesses who don't care. He recommends doing 1.05 to split 50/50.
John Halsey noted that the Town Manager talked about a second Walkers Brook Drive and
that is not a far-fetched thought. He feels with a 92% and 8% split everyone is paying their
fair share. Small business owners get hurt but the delta is not much - maybe $90. He
feels we can't compare ourselves to other communities.
The Town Manager noted that one tool the Selectmen has is the small commercial property
exemption so some can be exempt from the tax burden.
Elaine Webb noted that she thinks Town Meeting will want to know where the Selectmen are
with this. It will help people understand and give senior tax relief a better opportunity to
pass. The Selectmen should at least let Town Meeting know what the intent is.
Lisa Egan noted that on behalf of the businesses it is not the time to split the rate until we
are over 10%. John Halsey noted that businesses have a revenue stream but his home
doesn't. Barry Berman noted that the Town is looking at changing zoning to support
businesses. If we do zero then we make the residents pay a higher tax rate.
Robin Krane, owner of Fitness Within, a small fitness studio, noted that she just wants what
is fair and equitable.
A motion by Ensminger seconded by Sexton that the Board of Selectmen approve
the proposed senior Tax Relief Home Rule Petition as discussed and request that
the final language will allow flexibility in setting the annual financial terms the
Board further stipulates that implementation of this position shall occur not earlier
than FY18. Halsey offered an amendment to strike "...and request that the final language
allow local flexibility in setting annual financial terms," and replace it with wording that says
that our multiplier recommendation is a range between 0.5 and 2.0. This would allow the
Page 1 6
Board of Selectmen Minutes - August 9, 2016 - page 7
Board of Selectmen to set the factor in accordance with the amount of applications that are
submitted. The final motion moved by Ensminger seconded by Sexton that the
Board of Selectmen approve the proposed Senior Tax Relief Home Rule Petition as
discussed; that the multiplier recommendation is a range between 0.5 and 2.0 and
the Board further stipulates that implementation of this position shall occur not
earlier than FY18 was approved on a roll call vote with all five members voting in
the affirmative.
A motion by Ensminger seconded by Sexton that the Board of Selectmen, upon
implementation of the senior tax relief, indicate their intention to adopt a
residential factor of 1.02 for the fiscal year of enactment to be enacted at a
subsequent tax classification hearing was approved on a roll call vote with Halsey.
Arena, Sexton and Ensminger voting in the affirmative and Berman opposed.
Discuss Calling for Special Town Meeting/Special Election - A motion by Berman
seconded by Arena that the Board of Selectmen call for a Special Town Meeting to
be held at the Reading Memorial High School Performing Arts Center on Monday
September 12th beginning at 7:30Rm and that the Warrant for the Special Town
Meeting be closed on August 16th at the next Selectmen's meeting was approved
on a roll call vote with all five members voting in the affirmative.
A motion by Berman seconded by Ensminger that the Board of Selectmen indicate
to the community their intention to call for a Special Election to be held on
Tuesday October 18th at the Reading Memorial High School Fieldhouse between
7:OOam and 8:OOpm for the purpose of requesting an Override of Proposition 2-
1/2. The exact terms and language of the Override will be voted by the Board on
or before September 12th as required by state law was approved on a roll call vote
with all five members voting in the affirmative.
A motion by Berman seconded by Arena to adiourn the meeting at 10:52 p.m. was
approved on a roll call vote with all five members voting in the affirmative.
Respectfully s ted,
Secretary
Page 1 7