HomeMy WebLinkAbout2016-09-12 Special Town Meeting Warrant ReportSPECIAL TOWN MEETING
SEPTEMBER 12, 2016
TABLE OF CONTENTS
Article
Title
Sponsor
Pane
1
Reports
Board of
2
Selectmen
2
Instructions
Board of
2
Selectmen
3
Amending the Capital Improvement Program FY2017 —
Board of
2
FY2027
Selectmen
4
Increase Senior Exemption from $750 - $1000
Board of
4
Selectmen
5
Accept Optional Cost of Living Increases for Seniors and
Board of
4
Surviving Spouses
Selectmen
6
Lower Interest Rate on Tax Deferrals
Board of
5
Selectmen
7
Home Rule Petition — Tax Relief for State Senior Circuit
Board of
5
Breaker Filers
Selectmen
6
Proposition 2'% Override Ballot Question
Board of
9
Selectmen
APPENDIX
Capital Improvement Plan (blue pages)
21
Conduct of Town Meeting
29
Town Meeting Handout Guidelines
36
COMMONWEALTH OF MASSACHUSETTS
Middlesex, ss. Officer's Return, Reading:
By virtue of this Warrant, I, on August 23 , 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
Walter 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 September 12, 2016, the date set for
Town Meeting in this Warrant.
I also causeda posting of this Warrant to be published on the Town of Reading website on
August 23 , 2016.
omas Fr eman Jr Constable
A true copy Attest:
(A-, a., -
Laura G ime, Vo*n Clerk
1
TOWN WARRANT
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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 vole in elections and Town affairs, to meet at the
Reading Memorial High School Performing. Arts Center, 62 Oakland Road, in said Reading, on
Monday, September 12, 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 1 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. No reports are anticipated at
this Special Town Meeting.
ARTICLE 2 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.
ARTICLE 3 To see if the Town will vote to .amend the FY 2017-27 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
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 FY2017 — FY2027 CIP:
7r11L
+ $1,700 Fire: Ambulance purchase (now $276,700)
$24,300 Fire: Ambulance/EMS equipment
Debt: Reduce Birch Meadow Phase I Field Lighting from $1.0 million to $0.1 million -
FY18: +$610.600
$462,000 FacSchools: Parker roof repair project (moved up from debt in FY19)
$350,000 FacSchools: RMHS boilers (new item, replacement for energy efficiency)
$115,000 PSRec: Replace backstop & infield at Barrows (moved up from FY20 and increased by $201k)
$ 40,000 FacGen: F-350 Box truck (new - replace 2006 model)
$ 40,000 FacGen: Chevy 250OHD Pickup (new — replace 1999 Chevy 2500)
$ 30,000 DPW: Engineering Scanner/Plotter (unknown age)
$ 22,000 DPW: Mover SKAG 72" (1998) moved up from FY19
$ 18,000 DPW: Mover SKAG 52" (1995) moved up from FY19 and decreased from $19,000
$ 18,000 DPW: Mover SKAG 52" (2008) moved up from FY19 and increased from $17,500
$ 12,000 DPW: 2GV Leaf Vac (2000) moved up from FY21 and decreased from $43,600
+$ 1,000 DPW: Dump Truck #24 Parks (2000) - increase from $641k to $65k
($10,000) Library: delete equipment
($14,000) FacSchools: Parker furniture moved to FYI (below)
($26,800) DPW HW Compressors moved up to FY20 and increased to $50,000
($34,000) DPW: Move Engineering vehicle from FY18 to FY20
($39,500) DPW: delete HV4 Ford Van (1995)
($78,100) PSRec: Move Barrows basketball court repairs to FY19
($125,000) PSRec: Move Barrows tennis court repairs to FY19
($170,000) DPW: Woodsman Chipper (2004) moved from FY18 to FY19 and increased to $1951k
Note that FY18 debt service reduced by $637,500 including changes to Birch Meadow Phases 1 and 11
and the roof project below:
Debt: Increase Birch Meadow Phase II from $1.5 million to $2.5 million, add Field Lighting
component and move out from FY18 to FY19
Debt: Eliminate $2.7 million School and Town building roof repair projects (fund as capital)
Funding Expected to be Proposed for Future FY17 Town Meetings:
FY17• +$490,000 ($365,000 net funding at November TMJ
$210,000 DPW: Loader JD 624G (2007) move up from FY19 and increase by $10,000
$125,000 FacGen: Security Systems Evaluation (reclassified from FYI expenses)
$ 65,000 FacSchools: Furniture increased from $14k in FY18 (Parker as placeholder if code issues)
$ 50,000 FacGen: EMS upgrades to buildings
$ 40.000 FacGen: Plumbers Van Ford E350
FY17: +$120.000 (April TM)
$ 75,000 FacTown: West Side Fire Station roof repairs
$ 30,000 FacSchools: Wood End Masonry
$ 15,000 FacSchools: Parker Masonry
Because the Department of Revenue is expected to certify the Town's June 30" Free Cash balance by
October 2016, but has not yet done so, FINCOM Reserves must be used to fund the two current
requests by the Fire department. The other changes will be requested at November 2016/April 2017
Town Meeting if financial resources are sufficient, or they will be deferred. _
The FY17 capital plan had allocated $275,000 towards the purchase of a new ambulance. The winning
bid, including necessary related equipment, was about $1,700 over budget. In addition, the Fire
Department is requesting (1) a new $14,700 power ambulance stretcher, which has become necessary
as extrication have become more complex with heavier patients resulting in too many Firefighter
injuries; and (2) to replace a $9,600 recently broken CPR compression unit.
Finance Committee Report: Action pending — they expect to vote the $26,000 of Reserve Fund
transfers at their meeting on August 31, 2016. At November Town Meeting they may request that their
Reserve Funds be replenished.
Bylaw Committee Report: None
ARTICLE 4 To see if the Town will vote to amend the vote taken under. Article 15 of the May
2010 Annual Town Meeting to further increase the elderly tax exemption specified in Chapter 59,
Section 5, Clause 41C of the Massachusetts General Laws from $750.00 to $1,000.00; or take any
other action with respect thereto.
Board of Selectmen
Background: This Article increases an outright property tax exemption for elderly taxpayers with very
low income and assets, as determined under MGL Chapter 59, Section 5, Clause 41C. Currently about.
20 taxpayers qualify for this exemption, which would bring the additional cost to $5,000. This cost is
bome by the Overlay under the care of the Board of Assessors. This $1,000 exemption brings the town
back up to area community practices, much as was done by Town Meeting in 2010.
Finance Committee Report: Action pending — they expect to vote at their meeting on August 31,
2016 and will give a report on the floor of Town Meeting.
Board of Assessors Report: Action pending — they expect to vote at their meeting on August 30,
2016 and will give a report on the floor of Town Meeting.
Bylaw Committee Report: None
ARTICLE 5 To see if the Town will vote to accept the provision of General Laws Chapter 59,
Section 5 added by Chapter 181 of the Acts of 1995, which authorizes an annual increase in the
amount of the exemption granted to senior citizens, surviving spouses and surviving minors under
General Laws Chapter 59, Section 5, Clause 17D, by up to 100% of the percentage increase in the
U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index (CPI) for the previous
year as determined by the Commissioner of Revenue, and to fix that annual increase at 100% of the
CPI, to be effective for exemptions granted for any fiscal year beginning on or after July 1, 2017; or take
any other action with respect thereto.
Board of Selectmen
Background: This Article annually changes the property tax exemption cited under Article 4 by an area
consumer price inflation measure. This will allow the exemption to track local inflation, and perhaps
avoid future trips to Town Meeting. Again this nominal cost is borne by the Overlay under the care of
the Board of Assessors.
Finance Committee Report: Action pending — they expect to vote at their meeting on August 31,
2016 and will give a report on the floor of Town Meeting.
Board of Assessors Report: Action pending — they expect to vote at their meeting on August 30,
2016 and will give a report on the floor of Town Meeting.
Bylaw Committee Report: None
ARTICLE 6 To see if the Town will vote to reduce the interest rate specified in any tax
deferral and recovery agreement to be entered into pursuant to Chapter 59, Section 5, Clause 41A of
the Massachusetts General Laws, for any fiscal year beginning on or after July 1, 2017, from 8% to 4%;
or take any other action with respect thereto.
Board of Selectmen
Background: Currently state law allows elderly (65 years or older) homeowners that earn a maximum
of $40,000 (with no asset test) to defer real estate tax payments while living in their home. Deferred
taxes accumulate with simple interest at 8% as a lien on the property until it is sold. If the owner passes
away while in the home, the estate is liable for taxes for all deferrals at a higher interest rate. The town
may change only the 8% interest rate, and this Article requests a decrease to 4% which is the lowest
allowed by the state under this tax policy. Any taxes deferred result in lost revenues for a given year,
and eventually those revenues are recouped. -
Finance Committee Report: Action pending — they expect to vote at their meeting on August 31,
2016 and will give a report on the floor of Town Meeting.
Board of Assessors Report: Action pending — they expect to vote at their meeting on August 30,
2016 and will give a report on the floor of Town Meeting. .
Bylaw Committee Report: None
ARTICLE 7 To see if the Town will vote to authorize the Board of Selectmen, on behalf of the
Town,. to petition the General Court for passage of a special law substantially as provided below. The
Legislature may make clerical or editorial changes in form only to the bill, unless the Board of
Selectmen approves amendments to the bill before enactment by the Legislature. The Board of
Selectmen is hereby authorized to approve amendments that shall be within the scope of the general
public objectives of this petition.
AN ACT AUTHORIZING THE TOWN OF READING TO ESTABLISH A MEANS TESTED SENIOR
CITIZEN PROPERTY TAX EXEMPTION
SECTION 1. With respect to each qualifying parcel of real property classified as class one, residential
in the town of Reading there shall be an exemption from the property tax in an amount to be set
annually by the board of selectmen as provided in section 3. The exemption shall be applied to the
domicile of the taxpayer only. For the purposes of this act, 'parcel" shall be a unit of real property as
defined by the board of assessors under the deed for the property and shall include a condominium
unit. The exemption provided for herein shall be in addition to any and all other exemptions allowed by
the General Laws.
SECTION 2. The board of assessors may deny an application if they find the applicant has excessive
assets that place them outside of the intended recipients of the senior exemption created by this act.
Real property shall qualify for the exemption under section 1 if all of the following criteria are met:
(a) The qualifying real property is owned and occupied by a person whose prior year's income
would make the person eligible for the circuit breaker income tax credit under section 6(k) of
chapter 62 of the General Laws;
(b) The qualifying real property is owned by a single applicant age 65 or older at the close of the
previous year or jointly by persons either of whom is age 65 or above at the close of the
previous year and if the joint applicant is 60 years of age or older,
(c) The qualifying real property is owned and occupied by the applicant or joint applicants as their
domicile;
(d) The applicant or at least 1 of the joint applicants has been domiciled and owned a home in the
town of Reading for at least 10 consecutive years before filing an application for the exemption;
(e) The maximum assessed value of the domicile is no greater than the prior year's maximum
assessed value for qualification for the circuit breaker income tax credit under Section 6(k) of
chapter 62 of the General Laws as adjusted annually by the Department of Revenue; and
(f) The board of assessors has approved the application.
SECTION 3. The board of selectmen shall annually set the exemption amount provided for in section 1,
provided that the amount of the exemption shall be within arange of fifty per cent to two hundred per
cent of the amount of the circuit breaker income tax credit under section 6(k) of chapter 62 of the
General Laws for which the applicant qualified in the previous year. The total amount exempted by this
act shall be allocated proportionally within the tax levy on all residential taxpayers.
SECTION 4. A person who seeks to qualify for the exemption under section 1 shall, before the deadline
established by the board of assessors, file an application, on a form to be adopted by the board of
assessors, with the supporting documentation of the applicant's income and assets as described in the
application. The application shall be filed each year for which the applicant seeks the exemption.
SECTION 5. No exemption shall be granted under this act until the Department of Revenue certifies a
residential tax rate for the applicable tax year where the total exemption amount is raised by a burden
shift within the residential tax levy.
SECTION 6. This act shall expire after 3 years of implementation of the exemption.
or take any other action with respect thereto.
Board of Selectmen
Background: In preparation for a future Override, almost two years ago Town Finance staff began
researching tax policy that could assist the Reading seniors for which property taxes were a high
financial burden. The three previous Articles all assist a very small number of seniors as has been
mentioned. However, Town Public Safety and Human/Elder Services staff routinely interact with a
much larger senior population, which face both medical and financial challenges to remain in their
Reading homes. Many of them have lived in town for decades. .
No such tools existed in state tax policy to accomplish this assistance. Several months ago we learned
of two relatively recent Home Rule Petitions — in Sudbury and in Wayland — that aim to protect senior
taxpayers. The Assessing division and the Town Manager began researching these options, asking
peer communities, local legislators, and the state Department of Revenue. The research showed that
interest was high, but only these two communities had. made an effort.
The Sudbury model appealed at first, but the two main drawbacks were a tax benefit as high as 50% of
the tax bill ($3,600 on an average home in Reading) and the amount of staff labor involved in reviewing
applications and applying local rules to determine eligibility. Combining the approaches from both
Sudbury and Wayland lowered the potential benefit, as shown below, and significantly reduced the staff
workload. Therefore this Article seeks a 'third -in -the -state' Home Rule Petition to address property tax
financial challenges faced by seniors. In a discussion with our peers, this approach may become a
model for other communities, and in speaking to our legislators this effort may find its way into state
legislation. It is important to note that the state made clear that it would only consider approving a
Home Rule Petition with a term of three years or less. Recently Sudbury sought to extend their initial
three year term to be permanent, but the state denied their request and allowed a three-year extension.
To be eligible for the Reading property tax exemption, the senior:
(1) has filed and been deemed eligible for a prior year Schedule CB (Circuit Breaker) for the
purpose of state income taxes; -
(2) has owned property in Reading for at least ten previous consecutive years; and
(3) applies annually to the Board of Assessors for the exemption.
Using the state's Schedule CB takes local government out of the business of determining eligibility. Our
Assessing division has been reduced to 1.5 FTEs plus clerical help from 2.7 FTEs plus clerical help five
years ago. Placing local eligibility determinants beyond the Schedule CB will require additional staffing
— and this needs to be done by full-time town staff due to the confidential nature of the information. In
addition, the CB state income tax break serves as the basis for determining the local property tax relief.
Annually the Board of Selectmen at their Tax Classification Hearing (usually in November, to be
effective the following July), will set the exemption between 50% and 200% of the Schedule CB income
tax relief. The exact % multiplier will be determined by how many seniors qualify for the exemption, and
the total amount of senior tax relief (discussed below) desired by the Board. Please see the following
Table for some examples of possible local property lax relief seen by applicants:
Sehedule CB benefit
1 50% local tax relief
125% tax relief 200% local tax relief
$1,070 Maximum
$535
1 $1,337 $2,140
$856 (Average)
$428
1 $1,070 $1712
The only data we have from the state from 2014 is that the average CB income tax benefit in Reading
was $856, and that 645 local residents qualified. Thus the income tax relief was 645 x $856 =
$552,120. We know some of those that qualified under CB rent property and others have not owned
property for ten years. Both factors shrink the pool that is eligible for local property tax relief. We don't
know how many seniors did not file Schedule CB that might otherwise do so in order to obtain a
property tax benefit, however.
It is this real lack of data that led the Board to request a wide 50% to 200% variance in terms of setting
the local tax relief. If only that 2014 income tax pool were fully eligible, the total local tax relief would be
between $276k (at 50%) and $1.1 million (at 200%). In a discussion, the Board indicated a strong
desire to set the % figure to keep the total amount under $1 million, and that a reasonable annual goal
would be the 125% midpoint, or $0.7 million of tax relief.
According to state tax policy, by default only the rest of the residential taxpayers would bear the full cost
of this tax relief. However at a recent meeting the Board of Selectmen indicated a unanimous desire to
share this tax relief across all classes of property by splitting the tax rate. Here are some examples of
what this proposed senior tax relief will cost various taxpayers under that scenario:
Single
Family
Homes
%
parcels
60% relief -
$276k tax
benefit
125% relief -
$700k tax
benefit
Max relief -
$11.0mil tax
benefit
$7001k
13.5%
$19
$48
$69
$600k
14.0%
$25
$64
$192
$5001k
31.4%
$32
$81
$115
$400k
30.9%
$38
$97
$138
$300k
10.3%
$44
$113
$161
Commercial
%
parcels
50% relief -
$276k tax
benefit
125% relief -
$700k tax
benefit
Max relief -
$1.0mil tax
benefit
<$500k
40.8%
$25
$63
$90
$500k -$l mil
29.6%
•$58
$146
$209
$1-2mil
17.0%
$110
$279
$398
$2-3mil
3.9%
$183
$464
$663
$3-10mil
5.8%
$353
$895
$1,278
$10mil+
2.9%
$1,530
$3882
$5,545
Here are the qualifications for state income tax relief Schedule CB for 2014:
(1) You, or your spouse if married filing jointly, must be at least 65 years of age before January
1, 2015 to qualify for this credit. Also, you must file as single, married filing jointly or head of
household to qualify for this credit. If married filing separately, you do not qualify for this credit;
(2) The assessed value of principal residence as of January 1, 2014 must be $691,000 or less;
(3) Qualifying Income (includes MA Adjusted Gross Income (AGI) + social security benefits +
untaxed pensions + miscellaneous income - certain income tax exemptions) is capped at
$56,000 (single); $70,000 (head of household); or $84,000 (married filing jointly); and
(4) Real estate taxes
paid
in calendar year 2014 for your principal
residence (plus some
adjustments, including
50%
of water & sewer charges) must exceed
10% of the Qualified
Income above.
When reviewing this proposed senior tax relief, Town Meeting members are asked to consider these
factors:
- The state has extensive data that we do not have, and they have set tax policy for a wide
variety of policy issues using this criteria posted above;
- Please examine Qualifying Income (above) to see that MA AGI alone is not the basis for
income in this calculation;
- Any changes to this approach will require additional town staffing, and open up possible
perceptions of subjectivity at the local level;
- Senior residents must apply annually in order to receive this benefit — they are not required
to apply if they do not wish to be considered;
- As with all local tax exemption requests, all residents that apply for and either receive or are
denied tax relief are a matter of public record, and such lists are published in the town's
Annual Report.
Finance Committee Report: Action pending — they expect to vote at their meeting on August 31,
2016 and will give a report on the Floor of Town Meeting. -
Board of Assessors Report: Action pending — they expect to vote at their meeting on August 30,
2016 and will give a report on the floor of Town Meeting.
Board of Selectmen Report: The Board voted 4-0 in favor of this proposed Article at their meeting on
August 16, 2016. Chairman -John Halsey was absent and did not vote, although he expressed his
support in a letter to fellow Board members that was read into the record of the meeting.
Bylaw Committee Report: None
ARTICLE 8 To hear the reports of the Board of Selectmen, School Committee, Board of
Library Trustees and Finance Committee regarding the Town's budgeting for future Fiscal Years, and to
provide any advice or guidance or take any other action with respect thereto.
Board of Selectmen
Background: Proposition 2%, passed as an Initiative Petition in 1980 and enacted in 1982, caps
increases to property taxes in the Commonwealth by 2.5% annually. Proponents would cite the
significant decline in property taxes paid as a percent of income over a twenty year period as evidence
of its success. Opponents would suggest that a cap does not hold down certain costs outside of a
town's control. Both statements are accurate.
As Town Meeting members know, we have explicitly cautioned that balancing the budget with
increasing amounts of Free Cash was not a good or sustainable practice. As was mentioned last
winter, the town is at a crossroads, and must now decide how to balance the financial resources
available with the demand for services.
Community Listening Meetings
In a series of meetings held after the Annual Town Meeting and before the start of summer, the Town
invited residents and business owners to hear a brief overview of these crossroads, and to tell us their
views. The meetings were heavily attended, and many'new faces' were in the audience.
Participants learned some of the following basic financial facts:
(1) Revenues have grown at +3.1% since the last Override: +3.6% Taxes (includes New Growth);
+2.7% State Aid (slower lately); +0.1% Local Receipts; and +1.3% Other;
(2) Since the last Override, the +3.1% Spending has been divided up as follows: Schools +3.2%;
Town +3.1%; Capital and Debt -0.9%; and Shared Costs +5.2%;
(3) In FY17 the town had a $2.0 million structural budget deficit requiring the use of Free Cash in
order to balance. In FY18 that structural deficit looks to have increased to $3.0 million, and each
year thereafter it is forecast to grow by another +$0.7 million;
(4) Town and School Operating Budgets, growing at a target rate of +3.5% annually, should be able
to maintain and occasionally enhance service levels to the community within future Revenue
forecasts, once this structural deficit is repaired;
(5) Accommodated Costs- are expected to be the source of the +$0.7 million increase to the
structural deficit. Since the last Override, staff has worked diligently to wring out inefficiency and
add creativity in this area, but there are few ideas on the horizon.
Participants also learned how Reading is either similar to or different from our 25 so-called Peer
Communities. On the revenue side, there is a big difference in that Reading is much more residential
than an average Peer Community, deriving about $12 million less in tax revenues annually from the
Commercial, Industrial and Personal Property (CIP) sectors. As a result, Reading relies more on the
other non -tax categories of revenue, which are less predictable and have historically had lower rates of
growth, as shown above. Here is a quick summary of the Revenue comparison:
Revenues from:
Reading
Peers
Tax Levy
60.5%
66.6%
Residential
$53.8 mil
$54.8 mil
CIP
$5.0 mil
$17.3 mil.
State Aid
13.7%
11.0%
Local Receipts
21.6%
17.5%
Other
4.2%
4.9%
On the spending side, Reading looks a lot like our Peer Communities. Because of the high residential
tax base, Reading has a larger student population. Using 2014-15 MA Department of Education data,
Reading has 17.4% of the population of the town in the public school system, compared to.15.8%
among Peers (the range is from 22.1% in Westford to 10.7% in Stoneham). Thus while the town
spends slightly more than average of the budget allocation on Schools, we also spend a low per -pupil
amount. Because of our proximity to the highways, and presence of a lot of commuter 'cut -through'
traffic, the town also spends a bit more in Public Works and Public Safety. Because we offer Advanced
Life Support, about $800,000 in ambulances fees flow to the general fund each year to be used by the
10
Town and School budgets. This revenue more than offsets the above average spending in Public
Safety. The town spends less on Town Hall staffing, and on fixed and other costs.
Here is a chart showing the Spending comparison:
% of Budget Sendin
Reading
Peers
Difference
Education
39.3%
39.1%
+0.2%
Fixed Costs & Debt
17.7%
17.8%
-0.1%
Public Safety
9.2%
8.7%.
+0.5%
Public Works
5.1%
4.9%
+0.2%
General Gov't
3.6%
4.3%
-0.7%
Culture&Rec&Hmn Svc
2.7%
2.4%
- +0.3%
Other incl. Ent. Funds
22.4%
22.8%
-0.4%
A final piece of information presented at the Community Listening Meetings was that the Single Family
Home annual property tax burden in Reading is below that of our Peers, when looked at either on an
average ($500 below) or regressed against median family income ($700 below). The following chart
uses MA Department of Revenue 2015 tax data and Boston Globe 2010-2014 median household
income data:
Peer Residential Tax Burden
While opinions at the Community Listening Meetings certainly varied, there was a strong sense from
participants that town and school services needed to be maintained, restored or enhanced, and an
understanding that both the town and schools were being good stewards of taxpayer funds.
During the past two months, elected Boards and their staff have worked on this issue, reflecting what
was heard from the community at these meetings. Following is a deeper analysis of the problem, and a
proposed solution.
11
Overview
The first question to answer was if the Town and Schools were satisfied with the current budget model
that has been in place for about ten years. A set of Accommodated Costs are subtracted from
Revenues, and the remainder are divided up in a pro -rata share between the Town and Schools. Due
to the shift of the Facilities department last year, that ratio is now approximately 64% Schools and 36%
Town. After a discussion between senior management and elected officials, both sides agreed that the
budget model has worked well, and has enough built-in flexibility to handle unforeseen circumstances.
The first assumption that was discussed by the Superintendent, the Town Accountant and the Town
Manager was what figure to use as the right target for an annual operating budget increase for the
Town and Schools? We know since the last Override that figure has been about 3.2%, but we also
know in recent years that increases of 3.6% have required staffing reductions. We settled on 3.5% as a
reasonable long-term target. Prudent annual financial management should allow the Town and Schools
to add new services as needed within that framework, and minimize budget reductions. Note that an
assumption of how long an Override would need to last is a decision made later in this process.
The next set of assumptions involved our expected Revenues and Accommodated Costs. All estimates
were done line -by-line by the Town Accountant (Revenues) and Town Manager (Costs) in a bottom-up
fashion, though only the summary results are described below.
Revenues:
Property taxes ($61 million) are straightforward at +2.5% annually plus New Growth. The latter is
conservatively estimated at $500,000/year from FY18 through FY21, below the recent $830,000 three-
year average. This figure is then increased to $1,000,OOO1year gradually by FY24 given staff ground
work being done in the commercial development sector.
Loral Revenues ($6.6 million) were estimated at about +2.5% annually.
State Aid ($14 million) was estimated to grow at 2.5% annually. FINCOM has previously supplemented
any shortfall with Free Cash. This practice is still plausible because future budgets will plan to use no or
low amounts of Free Cash to balance.
Operating Transfers and Available funds are projected to increase at less than 2% annually, driven by
the RMLD dividend calculation that is CPI -based. All measures of inflation are significantly lower than
when that arrangement was decided many years ago.
In general, aside from Free Cash usage. Revenues are protected to increase by between 3.2%
and 3.5% using this approach for the foreseeable future. -
Accommodated Costs:
Health Insurance as a driver of Benefits was the first hurdle. National models of about +8% declining
over time to +5% annually are typically used in the actuarial community. The predicted reduction from
8% to 5% is generally stated as 'because the nation cannot afford to continue these increases and
needs to figure out something'. While we have historically managed the Reading rate of. growth in this
area reasonably well below national averages, we believed it was important to use +7.5% annually
throughout in this model. If someone figures out something — so much the better! Combined with other
benefit costs this area is forecast to climb at about 6.4% annually. Note that the Town Accountant and
Town Manager strongly believe that future costs should include a stepped-up pension contribution of
about $350,000/year in order to fully fund this obligation faster, allowing for an earlier shift of funding
towards OPEB. That pension increase is within that +6.4% annual forecast above.
12
For now, continuing the FINCOM Policy of 5% towards capital and debt is continued by this model -
more on this topic later. Energy costs were forecast at +5% annually, in line with national forecasts. Out
of District Special Education costs are also forecast at +5% annually, in line with recent trends. Other
accommodated costs were forecast at just below +3% annually.
In general Accommodated Costs are forecast to increase at about 5.4% annually, after a first
year increase closer to 7% to allow for that stepped ug increase in Pension contributions.
Funding Gap
As shown below, the squeeze will be on the Operating Budgets for the foreseeable future as Revenue
growth (3.2% to 3.5%) is not expected to keep pace with Accommodated Costs (5.4%). That Funding
Gap translates to an annual $660,000 budget shortfall - and the effect is cumulative.
By contrast, the Funding Gap is much smaller on the $57 million Operating Budgets growing at +3.5%
annually. These differences should easily be made up by conservative revenue assumptions, such as
New Growth, and may be ignored:
Table 2. Operating Budgets Gap
Annual Gap Annual Gawp
._._. t-____.
FY78 . $__650000 FY22 ; $.� 425,000
FY19 : $ 170,0001 FY23 $ _ 510,000
___- _—_
FY20 $ .255,000 FY24 $ 595,0001
FY21 $ 340,000 FY25 E _ 680,000
These Funding Gaps cause a fundamental structural deficit in the budget, which in recent years has
caused an increasing amount of Free Cash to be used in order to balance and not significantly reduce
services. Every year that structural deficit is expected to grow - although the town has worked hard on
many of the Accommodated Costs during the past several years to keep the Gap smaller. For FY18,
given the assumptions above, a structural deficit of $3 million exists ($1.925 million Schools and $1.075
million Town), in order to fund +3.5%, Operating budgets.
Baseline Override
At this point we can begin to discuss the 'for how long?' part of an Override. Each year will add to the
$3 million baseline figure because of that Funding Gap. Models looked at the period until FY25 and
FY30 as two possible objectives. The shorter 8 -year period coincides with when most of the RMHS and
Library excluded debt is fully repaid, theoretically opening up some space in the taxpayer's pockets to
consider another Override. The longer 13 -year period is where we are now, compared to the last
Override. Anything shorter or longer seemed unrealistic.
Here are the somewhat astonishing results, hinted at by Table 1 above:
Table 3—. projected Structural Defidt_(S millions))
Now FY25 FY30
....._.. _. _
'Bruaral Defat . $ 3.0 ' $ 6.0 $ 13.0
13
Table 1. Accommodated Costs Gap
Annual Gap
Annual Gap
FY18
$ 660,000
FY22
$ 3,300,000
FY79
$ 1,320,000
FY23
$ 3,960,000 '.
FY20
$ 1,980,000
FY24
$ 4,620,000
FY21
$ 2,640,000
FY25
$ 5,280,000
By contrast, the Funding Gap is much smaller on the $57 million Operating Budgets growing at +3.5%
annually. These differences should easily be made up by conservative revenue assumptions, such as
New Growth, and may be ignored:
Table 2. Operating Budgets Gap
Annual Gap Annual Gawp
._._. t-____.
FY78 . $__650000 FY22 ; $.� 425,000
FY19 : $ 170,0001 FY23 $ _ 510,000
___- _—_
FY20 $ .255,000 FY24 $ 595,0001
FY21 $ 340,000 FY25 E _ 680,000
These Funding Gaps cause a fundamental structural deficit in the budget, which in recent years has
caused an increasing amount of Free Cash to be used in order to balance and not significantly reduce
services. Every year that structural deficit is expected to grow - although the town has worked hard on
many of the Accommodated Costs during the past several years to keep the Gap smaller. For FY18,
given the assumptions above, a structural deficit of $3 million exists ($1.925 million Schools and $1.075
million Town), in order to fund +3.5%, Operating budgets.
Baseline Override
At this point we can begin to discuss the 'for how long?' part of an Override. Each year will add to the
$3 million baseline figure because of that Funding Gap. Models looked at the period until FY25 and
FY30 as two possible objectives. The shorter 8 -year period coincides with when most of the RMHS and
Library excluded debt is fully repaid, theoretically opening up some space in the taxpayer's pockets to
consider another Override. The longer 13 -year period is where we are now, compared to the last
Override. Anything shorter or longer seemed unrealistic.
Here are the somewhat astonishing results, hinted at by Table 1 above:
Table 3—. projected Structural Defidt_(S millions))
Now FY25 FY30
....._.. _. _
'Bruaral Defat . $ 3.0 ' $ 6.0 $ 13.0
13
It is this type of analysis that causes actuaries to shrug and say that 'somebody will need to do
something'! We revisited the model several times, loosening up a bit on the conservatism. Finally
enough was enough, and we chose to focus on the shorter 8 -year period and stand behind all financial
assumptions, understanding that they still lean a bit to the conservative side. Therefore a $6 million
Override is needed to sustain +3.5% Operating budgets through FY25.
The financial model therefore tells us to request $6 million in the first year and use $3 million to fill the
current gap, and to save $3 million for the future. That situation seems unrealistic and almost
unbelievable to any rational person not deep into the town's budget situation. So the next step was to
find a set of costs that could act to mitigate that funding gap — something that could be budgeted lower
each year. The best solution was to change the FINCOM policy on spending 5% annually on capital
plus debt. Instead, spend more than 5% in early years, and less than 5% in the later years. Given that
the capital plan is showing a strong surplus of funding available after the next five or so years, this
seems a plausible approach. This requires that bigger building projects are considered outside the tax
levy, as per current FINCOM policy. Also consider the fact that the Town usually has one-time funds
available at November Town Meeting to supplement budgeted annual capital spending.
RMHS construction litigation
We do not know either the final, amount or even the final timing of when we will know the final amount.
However we must plan to take care of this issue within our normal budget process and model shown
above, which means we need some creativity and we need to build in some Flexibility.
The Town Accountant and the Town Manager agree that some amount of Free Cash should be used
as part of any settlement, and the rest needs to be paid by the overall annual budget over as short a
period of time as is possible in to minimize borrowing costs. This approach suggested above to
increase capital spending in early years may fit well with this potential legal liability.
Thus a baseline $6 million Override could look this way in FY18:
$3.0 million structural deficit
$2.0 million additional capital
$0.7 million to the general stabilization fund (to help fund future budgets)
$0.3 million in additional Pension funding
Each year thereafter will see an increase in the portion of additional funds devoted to the structural
deficit, and reductions to both the additional capital and contributions to a stabilization fund.
Property Taxes
Today, the $499,500 average Single Family Home (SFH) pays a tax bill of $499,500 x $14.51/$1.000 or
$7,247.75 --let's call it $7,250. Here are the components of that tax bill:
Tax Bill
Tax Levy
RJAHS Libra
$7,250
$6,905 1
$161 1 $184
The RMHS amount remains about $160 until being fully repaid in FY24; the Library amount declines to
about $160 and is fully repaid in FY25. Any Override would be added only to the Tax Levy portion.
Therefore over the next ten years, the table below shows the average Single Family Home Tax Bill and
annual change assuming no Override, no more Excluded debt or capital, no Senior Tax Relief, the full
tax levy is assessed, current tax property classification ratios (92% residential; 8% CIP) are maintained,
and the town has a Uniform tax rate.
14
Note the impact in FY25 and FY26 when the RMHS and Library are fully repaid. Over this ten-year
period, the SFH tax bill will have increased at an average rate of +2.0% annually.
Tax Impact of Baseline Structural Override
Over the next ten years, the table below shows that for the same average SFH as described above, a
$6 million Override would pay the equivalent of +2.9% annually:
Override — Additions above a Baseline Structural Amount
As has been mentioned, both the Town and Schools have had to pare back budgets, consolidate
positions, regionalize with other communities and find creative solutions to keep service levels as high
as possible. Each side would agree that the reductions have not allowed for "level service" budgets in a
couple of years. One comment we heard clearly from the Community Listening Meetings was the desire
to restore some of these budget reductions if we were to request an Override from the community.
Over the summer, the School department discussed this issue at length, creating a list of these six
challenges:
1. Retaining and Attracting Staff
2. Developing well-balanced and prepared students for college, career, and life
3. Supporting. teachers and administrators as we transition to more rigorous standards and
curriculum
4. Continuing to improve our special education services and in district programs
5. Identifying long term space needs to address program changes
6. Remaining comparable and competitive with other towns and school districts
In response to five (14 and 6) of these challenges, they created two lists that constituted a request for
funding. The first was to solve the structural deficit, estimated at 2l3 of $3 million. The second list was
an additional $1.925 million that was a mix of add -backs and additions. Following is that entire list, not
in priority order:
to Address
Deficit
1. Salary Adjustments
_
2. FuII IID_ School on Wednesday at Elementary Level
3. Middle School Health Education
4. High School Program Improvement
S. Additional Supports for Struggling Students (Tutors, BCBA)
15
$360,000
$455,000
$140,000
$220;000
$150,000
FY18
I FY19
I FY20
I FY21
I FY22
1 FY23
1 FY24
FY25
1
FY26
FY27
Rate
+11.67%
+2.33%
1 +2.33%
1 +2.32%
1 +2.32%
1 +2.32%
1 +235%
+0.72%
+0.88%
1 +2.50%
Override — Additions above a Baseline Structural Amount
As has been mentioned, both the Town and Schools have had to pare back budgets, consolidate
positions, regionalize with other communities and find creative solutions to keep service levels as high
as possible. Each side would agree that the reductions have not allowed for "level service" budgets in a
couple of years. One comment we heard clearly from the Community Listening Meetings was the desire
to restore some of these budget reductions if we were to request an Override from the community.
Over the summer, the School department discussed this issue at length, creating a list of these six
challenges:
1. Retaining and Attracting Staff
2. Developing well-balanced and prepared students for college, career, and life
3. Supporting. teachers and administrators as we transition to more rigorous standards and
curriculum
4. Continuing to improve our special education services and in district programs
5. Identifying long term space needs to address program changes
6. Remaining comparable and competitive with other towns and school districts
In response to five (14 and 6) of these challenges, they created two lists that constituted a request for
funding. The first was to solve the structural deficit, estimated at 2l3 of $3 million. The second list was
an additional $1.925 million that was a mix of add -backs and additions. Following is that entire list, not
in priority order:
to Address
Deficit
1. Salary Adjustments
_
2. FuII IID_ School on Wednesday at Elementary Level
3. Middle School Health Education
4. High School Program Improvement
S. Additional Supports for Struggling Students (Tutors, BCBA)
15
$360,000
$455,000
$140,000
$220;000
$150,000
6. Maintain School Transformation Grant Funded Positions - $160,000
(Data Analyst/Coach, Administrator for Social Emotional Learning)
Salary Adjustments & Professional Development
7. Curriculum Supervision Leadership
$285,000'..
8. Special Education Leadership
$490,00Q.
$95;000
9. Additional Clerical Support
$60,000
TOTAL --'�,
Support for volunteer Boards
$3925,000 --_
The Town conducted a similar exercise and created the following list of restored or additional services
for the Board of Selectmen to consider, also not in priority order:
1.
Salary Adjustments & Professional Development
$225,000
i. 2.
Public Safety (6.0+.FTE) -
$490,00Q.
3.
Library staffing & hours (1.0+FTE)
$100,000
I 4.
Support for volunteer Boards
$75,000
Town and School wages 1
Technology
$ 70,000
5.
1 $ 65,000
6.
Additional Town. Hall Clerical Support(1.S FTE)
- 7.
Public works (1.0 FTE)
$ 40,000
S.
Facilities
$15,000
-
:TOTAL
^$2,080,000
In recent years, both the Town and Schools have faced increasing difficulty in attracting and retaining
staff. On the Town side, staff is expected to perform at top quartile levels, but average compensation is
below Peer averages. Once upon a time, more Town and School employees were perhaps more
involved in the community because they were also residents. The following table describes the ability of
employees to continue to live in the community:
Using the 1990 census as a baseline, in 2010 Reading home values had grown by a factor of 119%;
average family income by 88%; and town and school wages by 56%. Thus the challenge as a more
mobile generation enters our workforce.
16
1990
2010
Annual
Readin avem a home values
1.0o
2.19
4.0%
Reading average family income 1
1.00 1
1.88
3.2%
Town and School wages 1
1.00 1
1.56
2.2%
Using the 1990 census as a baseline, in 2010 Reading home values had grown by a factor of 119%;
average family income by 88%; and town and school wages by 56%. Thus the challenge as a more
mobile generation enters our workforce.
16
Override- How Much?
The Board of Selectmen has the sole authority under state law to call for an Override; to determine the
language and number of ballot questions; and to determine the funding amount(s) requested. In their
discussions they focused on the impact to the taxpayers as well as what funding levels would support
various services. For example, the following table shows the impact in FY18 on Single Family Homes at
the various assessed value segments. The figures shown are increases in taxes over and above the
normal +2.5% cap.
Residential
$6mil
$7 mil
$7.5
mil
$8mil
$8.5
mil
$9mil
$
$
300,000 -
400,000.
10%.
31%
$
$
398
531.
$
$
464
619
$
$
497
663
$
$
530
707
$
$
563
751;
$ 596
$ 795
$
500,000
31W
$
664
'. $
774
$
829
'', $
884
$
939
$ 994
$
$
60%000 -
700,000
1491
14%
$
$
797
930
$
$
929
1,084
;, $ _
$
995
1,161
$
$
1,061 j_$
1,238.
$
1,127
1,315
$ 1,193_
$ 1,392
Over the next ten years, that same average SFH would pay the equivalent of +2.9% annually for a $6.0
million Baseline Structural Override, and +3.4% annually for a $9.0 million Override. The latter takes
into consideration the full funding requested by the Schools.
For the Commercial property class, here is that same marginal impact in FY18 at the various assessed
value segments:
Commerical
$6 mil
$7mtl $7.5mll $8 mil
$8.5 mil $9mll
$100k - $500k
41%'.
$
413
$
481 $
$
550
$ 584 $_ 618
$500k-$lmil
31%'
$
_
955.
$
_ ..
1,113 $
,516
1,192 $
1,271
$ 1,350 $ 1;429
$1md �.,
17%'_$_
1,82_3
_$
2,125
$_2,276
$
2,427_
$ 2,578 $ 2,730
_$2mil
$2mil - $3mil '
4%.
$
3,037
$
3,54D
$
3,792 $
4,043
$ 4,295 $ 4,547
$3mil-$10mi(
6%,
$5,852$,.6,822
$,.7,307
$
7,792.':
$ 8,276 ,$_8,761
$30md+ !
3%1 $
25,391
$29,5981
$31,701 $33,804:
$35,907 1$38,011
At their meeting on August 16�, with representatives from the School Committee and Board of Library
Trustees, as well as many other interested parties, present, the Selectmen discussed the Override and
decided that one question written generically 'for the operation of the schools and town' was
appropriate to simplify to the voter the basic request for more funding.
After extensive discussion, the Board voted 4-0 to request $7.5 million in additional funding through an
Override of Proposition 2'/:. Chair John Halsey was absent from the vote but had a statement of his
support for a $7.5 million Override read into the record, after the public discussion and just before the
final vote. This amount is meant to cover the $6.0 million structural deficit and add/restore $1.5 million
of other items from the lists above. Using the current budget model, the Schools receive $960,000 and
the Town receives $540,000 of this additional funding.
The School Committee will prioritize their requests at an upcoming meeting and discuss their list with
Town Meeting members. Prior to the Override vote by the Board of Selectmen, all parties involved
agreed that it was appropriate for the Selectmen not to know such information before they selected an
Override amount, as the School Committee has full spending authority over their budget. The
Selectmen were also viewing the situation from a taxpayer affordability standpoint as opposed to a
budget funding need standpoint.
17
The Town, however, had prioritized their list of additions. The table below shows the Town priorities to
be funded:
What Happens if an Override Does Not Pass?
Over one year ago the Town Manager and Superintendent met to discuss employee morale, and the
challenging hiring process as has been discussed. The conversation evolved to the timing of a future
Override election. The usual April choice would mean that two budgets would need to be created and
then presented in public during the preceding winter, which would damage employee morale. A
September/October election was a preferable choice, even considering the extra costs involved.
During the winter of 2016, an FY17 Town budget that eliminated several positions was presented in
public. All but one of those positions could be handled through planned attrition; that one position might
be handled the same way depending on an upcoming retirement and promotion. The one employee
involved decided not to wait for the promotional process and was hired by another community quickly.
Employee morale is difficult to place a financial value on, but it is quite real, as is the high
organizational cost of turnover.
Given this background, both the Town and Schools are reluctant to layout exact ramifications of a
failed Override.vote at this time. In so doing, we are keenly aware that the public has less transparency
than they might desire, and hope that the public understands our thought process.
Each side has publicly stated that positions and services will be eliminated in FYI without an Override.
The Schools have a higher proportion of their budget spent on labor costs, and have indicated that up
to 30 positions could be in jeopardy. The Town with less labor costs relative to expenses could need to
eliminate up to 8 positions. The Town has also built in some one-time budget costs, such as technology
Um
Structural Deficit (.7% Budget Increase in FY18)
^$1,000,000
`$1,000;000
1.
Salary Adjustments & Professional Development
$225,000
$200,000
.....
2.
__ __ -. --.. _
Public Safety -School Resource (Police)Officer
..__
$49p000 -�
$160,0110
& Firefighter/Paramedic
3.
Library staffing
$100,000
$60,000
4
Support for Volunteer Boards
$ 75;000
$,OifO
5.
Technology (licenses and hardware in year 1)
$ 70,000
$70,000
6,
Additlonal.Town HaILGlerical 9uppot(0
r.5 FFE
T
$ 65,000 --
$25,000
for Finance department)
:{
7.
Public works -
i
$ 40,000
8
FadlWas
-- -
-
--
-
TOTAL
$2,080,000
$1,540,000
What Happens if an Override Does Not Pass?
Over one year ago the Town Manager and Superintendent met to discuss employee morale, and the
challenging hiring process as has been discussed. The conversation evolved to the timing of a future
Override election. The usual April choice would mean that two budgets would need to be created and
then presented in public during the preceding winter, which would damage employee morale. A
September/October election was a preferable choice, even considering the extra costs involved.
During the winter of 2016, an FY17 Town budget that eliminated several positions was presented in
public. All but one of those positions could be handled through planned attrition; that one position might
be handled the same way depending on an upcoming retirement and promotion. The one employee
involved decided not to wait for the promotional process and was hired by another community quickly.
Employee morale is difficult to place a financial value on, but it is quite real, as is the high
organizational cost of turnover.
Given this background, both the Town and Schools are reluctant to layout exact ramifications of a
failed Override.vote at this time. In so doing, we are keenly aware that the public has less transparency
than they might desire, and hope that the public understands our thought process.
Each side has publicly stated that positions and services will be eliminated in FYI without an Override.
The Schools have a higher proportion of their budget spent on labor costs, and have indicated that up
to 30 positions could be in jeopardy. The Town with less labor costs relative to expenses could need to
eliminate up to 8 positions. The Town has also built in some one-time budget costs, such as technology
Um
purchases, and has an option to eliminate some of these in order to minimize any FY18 staffing
reduction.
Over the past year or more, the Town has stated that in order to balance a budget without an Override,
services will need to be eliminated or curtailed. Past budget cuts have focused on Town Hall, but future
ones will need to be expanded to include Public Safety and the Public Library, which have been exempt
from recent staffing reductions. At a minimum, one Police Officer and one Firefighter willbe eliminated
in each subsequent year without an Override, and frankly the cuts may need to go deeper. It is
impossible to avoid this conclusion, given that Public Safety constitutes over 60% of the Town's wage
budget. The Library Trustees have discussed lowering FY18 costs through attrition and expense
reductions and then FY19 costs through a reduction in Hours of Service. Public Works, once staffed at
120 employees and now staffed with about 45 employees, may need to cul back on some services and
staffing provided to the community.
As is mentioned in every annual budget message, we will all strive to meet the expectations of the
community with whatever level of resources that are made available. Regardless of the path ahead,
Reading remains a very special place in which to work — and to live.
Finance Committee Report: Action pending — they expect to give a report on the floor of Town
Meeting.
Bylaw Committee Report: None
19
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 September 12, 2016, 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 this16 "day of aue,,.t , 2016.
John Halsey, Chairman
U ' Sexton, ChbiFtban
C
B an, Secretary
- SELECTMEN OF READING
oma. Freema JFConstable
20
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CONDUCT OF TOWN MEETING
Reading's Town Meeting is conducted in accordance with the rules set down in Article 2 of the
Charter and the General Bylaws. Although Town Meeting Time Third Edition is the basic source,
a Town Meeting Member need only be familiar with what is contained in the Charter. These
notes are intended to outline the major points all Town Meeting Members should know, and
which by knowing will make Town Meeting more understandable.
Organization
• Town Meeting consists of 192 elected members, of which 97 constitute a quorum.
• There are two required sessions: The Annual Meeting in Spring which is primarily for fiscal
matters and acceptance of the annual budget, and the Subsequent Meeting in November.
Special Town Meetings may be called at any time that the need arises.
• There are three main committees which review certain Articles and advise Town Meeting of
their recommendations:
Finance for all expenditures of funds,
Bylaw for all bylaw changes, and the
Community Planning and Development Commission for all zoning changes.
Their reports are given prior to discussing the motion.
General Rules Of Procedure
• The Meeting is conducted through the Warrant Articles which are presented (moved) as
motions. Only one motion may be on the floor at a time; however, the motion may be
amended. Often two or more Articles which address the same subject may be discussed
together; however, only one is formally on the floor, and each when moved is acted upon
individually. Note that the vote on one may. influence the others.
• Members who wish to speak shall rise, state their name and precinct in order to be
recognized.
• A Member may speak for ten (10) minutes but permission must be asked to exceed this
limit.
• Seven (7) Members can question a vote and call for a standing count, and twenty (20) can
ask for a roll, call vote; however, a roll call vote is seldom used because of the time it takes.
Principal Motion Encountered At Town Meeting
The following motions are the principal ones used in most cases by Town Meeting to conduct its
business. Experience shows that the Members should be familiar with these.
• Adjourn: Ends the sessions, can be moved at any time.
• Recess: Stops business for a short time, generally to resolve a procedural question or to
obtain information.
• Lay on the Table: Stops debate with the intention generally of bringing the subject up again
later. May also be used to defer action on an Article for which procedurally a negative vote is
undesirable. Note that tabled motions die with adjournment.
•
Move the Previous Question: Upon acceptance by a two-thirds (2/3) vote, stops all debate
and brings the subject to a vote. This is generally the main motion, or the most recent
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amendment, unless qualified by the mover. The reason for this as provided in Robert's
Rules of Order is to allow for other amendments should they wish to be presented.
• Amend: Offers changes to the main motion. Must be in accordance with the motion and
may not substantially alter the intent of the motion. In accordance with Robert's Rules of
Order, only one primary and one secondary motion will be allowed on the floor at one time,
unless specifically accepted by the Moderator.
• Indefinitely Postpone: Disposes of the Article without a yes or no vote.
• Take from the Table: Brings back a motion which was previously laid on the table.
• Main Motion: The means by which a subject is brought before the Meeting.
The Following Motions May Be Used By A Member For The Purpose Noted:
• Question of Privilege: Sometimes used to offer a resolution. Should not be used to "steal"
the floor.
• Point of Order: To raise a question concerning the conduct of the Meeting.
• Point of Information: To ask for information relevant to the business at hand.
Multiple Motions Subsequent (Multiple) Motions
If the subsequent motion to be offered, as distinct from an amendment made during debate,
includes material which has previously been put to a vote and defeated, it will be viewed by the
Moderator as reconsideration and will not be accepted. If the subsequent motion contains
distinctly new material which is within the scope of the Warrant Article, then it will be accepted.
An example of this latter situation is successive line items of an omnibus budget moved as a
block.
Subject To The Followina Considerations
• The maker of any proposed multiple motion shall make their intent known, and the content
of the motion to be offered shall be conveyed to the Moderator - prior to the initial calling of
the Warrant Article.
• Once an affirmative vote has been taken on the motion then on the floor - no further
subsequent alternative motions will be accepted. (Obviously does not apply to the budget,
for example.)
• Also - There can only be one motion on the floor at any one time. You have the ability to
offer amendments to the motion that is on the floor. You also have the ability to move for
reconsideration.
Town Of Readina Bylaw - Article 2 Town Meetina
2.1 General
2.1.1 Date of Annual Town Election
The Annual Town Meeting shall be held on the third Tuesday preceding the fourth
Monday in April of each year for the election of Town Officers and for such other matters
as required by law to be determined by ballot. Notwithstanding the foregoing, the Board
of Selectmen may schedule the commencement of the Annual Town Meeting for the
same date designated as the date to hold any Federal or State election.
2.1.2 Hours of Election
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The polls for the Annual Town Meeting shall be opened at 7:00 AM and shall remain
open until 8:00 PM.
2.1.3 Annual Town Meeting Business Sessions
All business of the Annual Town Meeting, except the election of such Town officers and
the determination of such matters are required by law to be elected or determined by
ballot, shall be considered at an adjournment of such meeting to be held at 7:30 PM on
the fourth Monday in April, except if this day shall fall on a legal holiday, in which case
the meeting shall be held on the following day or at a further adjournment thereof.
2.1.4 Subsequent Town Meeting
A Special Town Meeting called the Subsequent Town Meeting shall be held on the
second Monday in November, except if this day shall fall on a legal holiday, in which
case the meeting shall be held on the following day. The Subsequent Town Meeting
shall consider and act on all business as may properly come before it except the
adoption of the annual operating budget.
2.1.5 Adjourned Town Meeting Sessions
Adjourned sessions of every Annual Town Meeting after the first such adjourned session
provided for in Section 2.1.3 of this Article and all sessions of every Subsequent Town
Meeting, shall be held on the following Thursday at 7:30 PM and then on the following
Monday at 7:30 PM, and on consecutive Mondays and Thursdays unless a resolution to
adjourn to another time is adopted by a majority vote of Town Meeting Members present
and voting.
2.1.6 Postina of the Warrant
The Board of Selectmen shall give notice of the Annual, Subsequent or any Special
Town Meeting at least fourteen (14) days prior to the time of holding said meeting by
causing an attested copy of the warrant calling the same to be posted in one (1) or more
public places in each precinct of the Town, and either causing such attested copy to be
published in a local newspaper 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.
2.1.7 Closina of the Warrant
All Articles for the Annual Town Meeting shall be submitted to the Board of Selectmen
not later than 8:00 PM on the fifth (5") Tuesday preceding the date of election of Town
officers, unless this day is a holiday in which case the following day shall be substituted.
All articles for the Subsequent Town Meeting shall be submitted to the Board of
Selectmen not later than 8:00 PM on the seventh (7th) Tuesday preceding the
Subsequent Town Meeting in which action is to be taken, unless this day is a holiday in
which case the following day shall be substituted.
2.1.8 Delivery of the Warrant
The Board of Selectmen, after drawing a Warrant for a Town Meeting, shall immediately
deliver a copy of such Warrant to each member of the Finance Committee, the
Community Planning and Development Commission, the Bylaw Committee and the
Moderator.
2.2 Conduct of Town Meeting
2.2.1 In the conduct of all Town Meetings. the following rules shall be observed
Rule 1 A majority of Town Meeting Members shall constitute a quorum for doing
business.
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Rule 2 All articles on the warrant shall be taken up in the order of their arrangement in
the warrant unless otherwise decided by a majority vote of the members present
and voting.
Rule 3 Prior to debate on each article in a warrant involving the expenditure of money,
the Finance Committee shall advise Town Meeting as to its recommendations
and the reasons therefore.
Rule 4 Prior to a debate on each article in a warrant involving changes in the bylaw or
Charter, petitions for a special act, or local acceptance by Town Meeting of a
State statute, the Bylaw Committee shall advise Town Meeting as to its
recommendations and reasons therefore.
Rule 5 Every person shall stand when speaking as they are able, shall respectfully
address the Moderator, shall not speak until recognized by the Moderator, shall
state his name and precinct, shall confine himself to the question under debate
and shall avoid all personalities.
Rule 6 No person shall be privileged to speak or make a motion until after he has been
recognized by the Moderator.
Rule No Town Meeting Member or other person shall speak on any question more
than ten (10) minutes without first obtaining the permission of the meeting.
Rule 8Any non -Town Meeting Member may speak at a Town Meeting having first
identified himself to the Moderator. A proponent of an article may speak on such
article only after first identifying himself to the Moderator and obtaining
permission of Town Meeting to speak. No non -Town Meeting Member shall
speak on any question more than five (5) minutes without first obtaining the
permission of the Meeting. Non -Town Meeting Members shall be given the
privilege of speaking at Town Meeting only after all Town Meeting Members who
desire to speak upon the question under consideration have first been given an
opportunity to do so.
Rule 9 Members of official bodies and Town officials who are not Town Meeting
Members shall have the same right to speak, but not to vote, as Town Meeting
Members on all matters relating to their official bodies.
Rule 10 No speaker at a Town Meeting shall be interrupted except by a Member making
a point of order or privileged motion or by the Moderator.
Rule 11 Any person having a monetary or equitable interest in any matter under
discussion at a Town Meeting, and any person employed by another having such
an interest, shall disclose the fact of his interest or his employer's interest before
speaking thereon.
Rule 12 The Moderator shall decide all questions of order subject to appeal to the
meeting, the question on which appeal shall be taken before any other.
Rule 13 When a question is put, the vote on all matters shall be taken by a show of
hands, and the Moderator shall declare the vote as it appears to him. If the
Moderator is unable to decide the vote by the show of hands, or if his decision is
immediately questioned by seven (7) or more Members, or if the Moderator
determines that a counted vote is required such as for a debt issue or Home Rule
Petition, he shall determine the question by ordering a standing vote, and he
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shall appoint tellers to make and return the count directly to him. On request of
not less than twenty (20) members, a vote shall be taken by roll call.
Rule 14 All original main motions having to do with the expenditure of money shall be
presented in writing, and all other motions shall be in writing if so directed by the
Moderator.
Rule 15 No motion shall be received and put until it is seconded. No motion made and
seconded shall be withdrawn if any Member objects. No amendment not relevant
to the subject of the original motion shall be entertained.
Rule 16 When a question is under debate, no motion shall be in order except:
• to adjourn,
• to lay on the table or pass over,
• to postpone for a certain time,
• to commit,
• to amend,
• to postpone indefinitely, or
• to fix a time for terminating debate and putting the question, and the aforesaid
several motions shall have precedence in the order in which they stand
arranged in this rule.
Rule 17 Motions to adjourn (except when balloting for offices and when votes are being.
taken) shall always be first in order. Motions to adjourn, to move the question, to
lay on the table and to take from the table shall be decided without debate.
Rule 18 The previous question shall be put in the following form or in some other form
having the same meaning: "Shall the main question now be put' and until this
question is decided all debate on the main question shall be suspended. If the
previous question is adopted, the sense of the meeting shall immediately be
taken upon any pending amendments in the order inverse to that in which they
were moved, except that the largest sum or the longest time shall be put first and
finally upon the main question.
Rule 19 The duties of the Moderator and the conduct and method of proceeding at all
Town Meetings, not prescribed by law or by rules set forth in this article, shall be
determined by rules of practice set forth in "Town Meeting Time Third Edition"
except that to lay on the table shall require a majority vote.
2.2.2 Attendance by Officials
It shall be the duty of every official body, by a member thereof, to be in attendance at all
Town Meetings for the information thereof while any subject matter is under
consideration affecting such official body.
2.2.3 Appointment of Committees
Al[ committees authorized by Town Meeting shall be appointed by the Moderator unless
otherwise ordered by a vote of the Members present and voting. All committees shall
report as directed by Town Meeting. If no report is made within a year after the
appointment, the committee shall be discharged unless, in the meantime, Town Meeting
grants an extension of time. When the final report of a committee is placed in the hands
of the Moderator, it shall be deemed to be received, and a-vote to accept the same shall
discharge the committee but shall not be equivalent to a vote to adopt it.
2.2.4 Motion to Reconsider
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2.2.4.1 Notice to Reconsider
A motion to reconsider any vote must be made before the final adjournment of
the meeting at which the vote was passed but such motion to reconsider shall not
be made at an adjourned meeting unless the mover has given notice of his
intention to make such a motion, either at the session of the meeting at which the
vote was passed or by written notice to the Town Clerk within twenty-four (24)
hours after the adjournment of such session. When such motion is made at the
session of the meeting at which the vote was passed, said motion shall be
accepted by the Moderator but consideration thereof shall be postponed to
become the first item to be considered at the next session, unless all remaining
articles have been disposed of, in which case reconsideration shall be
considered before final adjournment. There can be no reconsideration of a vote
once reconsidered or after a vote not to reconsider. Reconsideration may be
ordered by a vote of two-thirds (213) of the members present. Arguments for or
against reconsideration may include discussion of the motion being reconsidered
providing such discussion consists only of relevant facts or arguments not
previously presented by any speaker.
2.2.4.2 Federal or State Law Affecting Reconsideration
The foregoing provisions relating to motions to reconsider shall not apply to any
such motion made by the Board of Selectmen and authorized by the Moderator
as necessary for the reconsideration of actions previously taken by Town
Meeting by reason of State or Federal action or inaction or other circumstances
not within the control of the Town or Town Meeting. In the event such a motion to
reconsider is made and authorized, said motion may be made at any time before
the final adjournment of the meeting at which the vote was passed, said motion
may be made even if the vote was already reconsidered or was the subject of a
vote not to reconsider, and reconsideration may be ordered by a vote of two-
thirds (213) of the Members present. .
2.2.4.3 Posting and Advertising
Notice of every vote to be reconsidered at an adjourned Town Meeting shall be
posted by the Town Clerk in one (1) or more. public places in each precinct of the
Town as soon as possible after adjournment, and he shall, if practicable, at least
one day before the time of the next following session of said adjourned meeting,
publish such notice in some newspaper published in the Town. Said notice shall
include the vote to be reconsidered and the place and time of the next following
session of said adjourned meeting. The foregoing notice provisions shall not
apply when a motion to reconsider any Town Meeting action is made publicly at
Town Meeting before the adjournment of any session of any adjourned Town
Meeting.
2.2.5 State of the Town
The Selectmen shall, at each Annual Town Meeting, give to the Members information on
the "State of the Town."
2.2.6 Annual Precinct Meeting
Town Meeting Members and Town Meeting Members -elect from each precinct shall hold
an annual precinct meeting after the annual Town election but before the convening of
the business sessions of the Annual Town Meeting. The purpose of the meeting shall be
the election of a Chairman and a Clerk and to conduct whatever business may be
appropriate. Chairmen shall serve no more than six (6) consecutive years in that
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position. Additional precinct meetings may be called by the Chairman or by a petition of
six (6) Town Meeting Members of the precinct.
2.2.7 Removal of Town Meeting Members
2.2.7.1 Notice of Attendance
The Town Clerk shall mail, within thirty (30) days after the adjournment sine die
of the Annual Town Meeting, to every Town Meeting Member who has attended
less than one-half of Town Meeting sessions since the most recent Annual Town
Election, a record of his attendance and a copy of Section 2-6 of the Charter.
2.2.7.2 Precinct Recommendation
All Precinct meeting held prior to consideration by Town Meeting of the warrant
article pursuant to Section 2-6 of the Charter. Town Meeting Members of each
precinct shall adopt a recommendation to Town Meeting on whether each
member from the precinct listed in the warrant per Section 2-6 of the Charter
should be removed from Town Meeting. The Chairman of each precinct or his
designee shall make such recommendations along with supporting evidence and
rationale to Town Meeting.
2.2.7.3 Grouped by Precinct
The names of the Members subject to removal in accordance with Section 2-6 of
the Charter shall be grouped by precinct in the warrant article required by said
section.
2.2.8 Meetings During Town Meeting
No appointed or elected board, committee, commission or other entity of Town
government shall schedule or conduct any hearing, meeting or other function during any
hours in which an Annual, SubsequentorSpecial Town Meeting is in session or is
scheduled to be in session. Any such board, committee or commission which schedules
or holds a meeting or hearing on the same calendar day, but at a time prior to a session
of Town Meeting, shall adjourn or recess not less than five (5) minutes prior to the
scheduled session of Town Meeting.
Any board, committee or commission may, at the opening of any session of Town
Meeting, present to that Town Meeting an instructional motion requesting an exemption
from this bylaw and asking that Town Meeting permit it to meet at a date and hour at
which a future session of Town Meeting is scheduled, and may present reasons for
Town Meeting to give such permission. Notwithstanding the foregoing, any board,
committee or commission which meets the requirements of M.G.L. Chapter 39, Section
23B concerning emergency meetings may, upon meeting such requirements, conduct
such a meeting or hearing at a time scheduled for a Town Meeting.
2.2.9 Rules Committee
The members of the Rules Committee, established under Section 2-12 of the Charter,
shall hold an annual meeting within thirty (30) days after the adjournment of the Annual
Town -Meeting for the purpose of electing a Chairman and a Clerk and to conduct
whatever business may be appropriate. Additional Rules Committee meetings may be
called by the Chairman.
In the absence of a Chairman, the Moderator shall convene a meeting of the Rules
Committee within sixty (60) days after a vacancy for the purpose of electing a new
Chairman.
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FAX: (781) 942-9070
Website: www.readingma.gov
Town of Reading
16 Lowell Street
Reading, MA 01867-2685
Town Meeting Handout Guidelines
TOWN CLERK
(781)942-9050
To ensure that all Town Meeting members have access to the same information, distributed in the same
manner, please follow the below listed guidelines for handout materials:
Materials that are prepared by a Town Board / Committee / Town Department must include the following:
o Article name and number
o Name of Town Board / Committee / Commission or Town Department
o Date the document was created
o Contact Information
o Approval of Town Clerk's Office
Materials that are prepared by petitioners or other voters must include the following:
o Article name and number
o Contact information of person who created handout
o Date the document was created
o Approval of Town Clerk's Office
All handouts:
• Must contain facts only unless specifically stating "This is the opinion of
• Should be on white paper only
• Should be double -sided copies if more than one page
• May be distributed only by giving adequate copies for all Town Meeting members (192) to the
Town Clerk or designee by 6:30 PM on the night in which the subject article will be discussed
• All handouts not approved will be removed and recycled
• All handouts not distributed must be picked up at the end of each night or they will be recycled at
the end of each night.
All PowerPoint Presentations:
• Must consult with the Town Clerk before the meeting
• Provide a copy before the meeting
• All presentations will be given using the Town of Reading laptop computer
February of 2010
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