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HomeMy WebLinkAbout2017-01-10 Board of Selectmen Minutes OFR�goi Town of Reading b Meeting Minutes TUIVE0 ,.T68,lM OP L Bf1 1{ ' /��1� ��jI1�! oard - Committee - Commission - Council: S. Board of Selectmen 1�I1 JAN ?}� A �I; 31 Date: 2017-01-10 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, Daniel Ensminger Members - Not Present: Others Present: Town Manager Bob LeLacheur, Fire Chief Greg Burns, Police Chief Mark Segalla, Assistant Town Manager Jean Delios, Facilities Director Joe Huggins, Human Resource Director Judi Perkins, Administrative Services Director Matthew Kraunelis, Deputy Chief Mark Dockser, Kevin Gerstner, Assistant DPW Director Jane Kinsella, DPW Director Jeff Zager, Stephen Crook, Nancy Heffernan, Tim Kirman, Neil Cohen, Andrew Friedman, Al Sylvia, Amy Cole, Kate Goldenst, Erin Gaffen, Library Director Amy Lannon, Executive m Assistant Paula Schena Minutes Respectfully Submitted By: Secretary Barry Berman Topics of Discussion: Public Comment — Andrew Friedman spoke on behalf of the Budget Parents and read the following statement: Good Evening. My name is Andy Friedmann and I am speaking on behalf of myself, Becky Liberman and Alan Rosh. The three of us are part of the budget parent team for the high school. Last night the superintendent gave us a preview of the proposed budget cuts and what they will mean for the high school. The three of us were very discouraged by what we heard last evening. Although there are many proposed cuts, we feel the following proposed changes will have the greatest negative impacts on education at the high school: 1. Loss of approximately four full-time high school teachers, maybe more, depending upon contract negotiations; 2. Eliminating 'CollegePrep' from the curriculum, with a potential increase in class size for all of the English and Math Programs. This will make things more difficult for students who are placed into higher level classes, will require more of the teachers' time to assist these students, which will detract from the education of Strong College Prep students. Page 1 1 Board of Selectmen Minutes - January 10, 2017 - page 2 Obviously, cuts to the middle and elementary schools will also, ultimately, have a negative impact on the high school, as well as elimination of funding for computer technology, such as replacing a server or router that breaks down. We note that the projected school budget shortfall is small, about $1.8 million, compared to predicted total town revenue, $92 million. We would like to pose two questions to the Board this evening: 1. Are there options that can be taken to address the Fiscal Year 2018 Budget and the immediate challenge to close the $1.8 Million gap? 2. Long term, what steps are being taken to develop a more permanent solution to address repeated shortfalls in the school budget? As budget parents, we will work with the superintendent and the school committee to help see that our education dollars continue to be used as efficiently as possible. Almost universally, other residents we know say that the quality of the Reading School System was a driving factor to move this town. We all now know a number of families who are dissatisfied with our school system and have decided to send their children to private schools. We are deeply concerned that, in the near future, the effect of these budget cuts will be to cause more families to make the same decision. We are asking that the town leadership make it a priority to find a permanent long term solution to these consistent budget challenges. John Halsey noted that his comments are well taken. The Trust Fund Commissioners called to order. Budget Overview The Town Manager noted that the organizational chart is unchanged. The three elected boards are sovereign nations. The goal is to work closely with the School Department. We are sharing employees with technology, Human Resources, Facilities and Finance. During the summer listening sessions we found that our peer communities collect around 12% more from the commercial sector. Reading spends money on public safety and we share our income with the schools. We spend a little more on education but we have more students so we spend less per pupil than other communities. John Halsey noted that the average peer community has $11 million more than we do. The Town Manager noted that the average Reading tax bill is below peers—we are not high. The Town Manager noted that the schools found ways to save $200,000 on SPED out of district; we found $50k in fuel savings and $100k in pension savings. The Town Manager noted that fees do not fix the problem. We will honor the will of the voter and not increase if Prop 2 `/2 doesn't pass. The only large fee is trash. The departments will discuss fees as they review their budgets. The Town Manager noted that the train depot and compost center stickers could be split but they are already selling them for this year. Page 1 2 Board of Selectmen Minutes - January 10, 2017 - page 3 Daniel Ensminger noted that on January 24h he would like to discuss fees and a lower amount override. The Town Manager noted that all fees have to be justified, we can't make a profit. Barry Berman noted that the standard fees for services are clear and we should look at parking fees. John Halsey noted that when the Town takes in a fee it goes into the general fund and it gets shared with the schools. The Town Manager noted there are a few exceptions. John Arena asked if that is the same on the school side and John Halsey noted it is not. The schools take in fees and keep them. Mark Dockser noted that fees are important are to look at. Kevin Sexton noted that the State tells us it doesn't matter what the market will pay—the fee must be justified. .Andrew Friedman noted that you can ask 10 Accountants to justify and they will all come up with 10 different numbers. John Halsey noted that the fee has to be fair. The Town Manager noted that the Board of Selectmen are advisory to the Town Manager regarding the budget. The budget has been reduced by 7.5 FTE's. The management team eliminated one position and with other reductions had a savings of $126,000. He noted that Reading only has eight Department Heads and they also do the everyday management. Barry Berman noted that when the Town Manager first came on he looked at redundancy and he asked if he is sacrificing that with only eight Department Heads. The Town Manager noted there will be less hours of service, loss of Sunday hours and a reduction in staff participation in community events. Kevin Sexton asked if the Town Manager looked at the number of Boards, Committees and Commissions that we have and the Town Manager noted that he looked at other towns websites and they list groups of interested residents. The Town Manager noted that we are reducing one Patrol Officer, but if the override passed we were going to hire two more Officers. We are not at the staffing levels in Police that were recommended 15 years ago. In addition, there is a trend of unhappy residents. Reading is a high value Town and we cannot continue the level of services with the FYI projections. He will try to minimize layoffs for employee morale. Administrative Services Administrative Service Director Matthew Kraunelis noted that Administrative Services consist of Operations, the Town Clerk, Town Manager, Human Resources and Technology. He noted it is a level funded budget. The Operations Specialist position is being cut from $40,000 to $20,000 which is equal to .50 FTE reduction. Pay and class is being cut $23,000 so there will be no pay and class raises in FY18 and that could have an effect on morale. In addition, there is a 15% cut on the temporary help. The Town Manager's department has an increase of $20,000 in legal services. Human Resources services the Town, School, RMLD and retirees and professional services will be cut from that budget. Page 1 3 Board of Selectmen Minutes - January 10, 2017 - pace 4 John Arena noted that previously labor counsel ran low and Matthew Kraunelis noted that Labor Counsel is looking at all of the contracts this year. John Halsey asked if the TLT number has increased and the Town Manager noted that he has not received the bills yet. He is hoping to get them before April Town Meeting. Mark Dockser asked if TLT and zoning is included in the Town Counsel budget line and the Town Manager noted they are. Mark Dockser asked if they will be trending down and the Town Manager noted there will always be zoning. He will share the analysis of legal services with the Finance Committee. Matthew Kraunelis reviewed Technology and noted that they need an increase of $40,000 for upgrade to Microsoft 16; $30,000 for rugged field tablets for DPW and a$10,000 upgrade to the firewall. In the Town Clerk's budget they are keeping $15,000 for electronic archiving but reducing $50,000 in election workers which is equal to 1.5 FTE. The wish list for this department is an admin for Town Clerk instead of sharing one with Finance; a Software Coordinator and a laserfiche upgrade for$80,000. Barry Berman noted that we had early voting this year and he asked how much we received from the state. Matthew Kraunelis noted that we only did early voting for the Presidential election. Sharon Angstrom noted that the difference in cost was about$4200. Andrew Friedman noted that some software upgrades are available on line for free and they work well. Matthew Kraunelis noted that we have licenses that we have to conform to. The Town Manager noted that the schools get deals that we are not eligible for and we also have licenses. Mark Dockser noted that the budget for the Business Administrator has been up and down. Matthew Kraunelis noted that the previous person was from the Police Department, then.the position was vacant and now it has been filled. Finance Town Accountant Sharon Angstrom noted that there is a 1.8% increase in the Finance budget. They have 12.3 FTE's in the Finance Department so that amount is for COLA's. The $100 in professional development is to renew her CPA license. There is a 3.1% increase in the Assessor's budget as required for the Assessor. The Finance Department is a shared service department so they charge funds back to enterprise funds. The volume of work is not going away. They do payroll for 1200 employees, collect all cash for the Town. They had 129,000 cash receipt transactions last year and the volume is consistent. They did not add staff for senior tax relief in FY18. John Halsey noted if the Board is going to discuss fees he wants Sharon at the January 24th meeting to discuss revenues and expenses. Benefits and Miscellaneous The Town Manager noted that we have an additional $150,000 in Retirement assessment. There is an increase in the unemployment budget to cover layoffs. Health insurance has increased 7.5%. From 2007 to 2014 health insurance has increased 4.2%. We saved $500,000 with the opt out program. Reading spends approximately 10% of the budget on health insurance and it is hard to predict year to year. They have pushed costs onto the employees with higher co-pays but those tools don't exist anymore. Health insurance is budgeted at $18,000,000 in FYI 8. The Page 1 4 Board of Selectmen Minutes - January 10, 2017 - page 5 Town is not doing a good job of funding pensions—we are under funding. The question is do we layoff to fund. Mark Dockser noted that the PPO plan for health insurance is more expensive. The Town Manager noted that Blue Cross offered us a tiered plan and priced the HMO and PPO too close together but the tiered plan doesn't work. The Trust Fund Commissioners adjourned at 8:30 p.m. Facilities Facilities Director Joe Huggins noted that his department is responsible for eight schools and nine Town buildings. We have an electrician, plumber and carpenter along with 23 full time custodians. They contract out for cleaning. Included in his budget is the Maintenance Director, Facilities Director, GS automation, critical alarm automation, EMS and utility trac plus. John Arena asked if costs and fees are broken down for heating and venting and Joe Huggins noted they are broken down by the hour. John Arena asked if that was just for schools and Joe Huggins noted the Town buildings will brought online next year. The Town Manager noted that will have to be discussed with the three elected boards. Amy Lannon noted that Library rooms are used mostly while the building is open. Joe Huggins noted that his department processed 2400 work orders and the summers are busy at the schools. Capital projects completed include UPS battery replacement; many flooring and carpet replacements; a new DPW garage door and repaired the RMHS sidewalk. Remaining capital includes Wood End HVAC upgrades; Honeywell EMS and West Side fire Roof replacement. Special projects completed include faucet and water fountain repairs/replacements; painting and lighting. John Halsey asked what is missing and Joe Huggins noted that aesthetics is usually what we do when we have a little extra. He noted that all buildings are in high use and high demand. Kevin Sexton noted that results in more wear and tear on equipment. John Halsey noted that we need to keep the maintenance system strong. Mark Dockser asked if fuel costs are locked in and Joe Huggins noted they are until 2018 except for RMLD. Capital and Debt The Town Manager noted that TLT has a big impact on debt. The big change is in facilities, it is substantially less and most projects in the future are roofs. The Permanent Building Committee has a fund of $150,000 for FY18 and FY19. The Voke School in Wakefield did not receive MSBA funding. TLT has moved out artificial turf at Parker Middle School and has also moved out a lot of field improvements to several years. Kevin Sexton asked about paving and the Town Manager noted that it has been moved out to 2024. A resident asked if Hunt Park is being done this year and John Halsey noted yes, the equipment has been scheduled. The same resident noted that the playground is fine why is it being replaced. John Halsey noted that the money was earmarked. If not Hunt Park then it would have been spent on something else. Page 1 5 Board of Selectmen Minutes - January 10, 2017 - page 6 Barry Berman asked if there is any foreseeable need to borrow within the levy and the Town Manager noted that Birch Meadow lighting is possible. A motion by Ensminger seconded by Sexton to adiourn the meeting at 10:40 p.m. Was approved by a vote of 5-0-0. Respectfully submitted, Secr ry Page 1 6