The URL can be used to link to this page

Home My WebLink About2016-04-25 Annual Town Meeting MinutesANNUAL TOWN MEETING Reading Memorial High School April 25, 2016 Preforming Arts Center The Precincts listed below met at 7:00 PM to conduct the following business: Precinct 1 - With a Quorum present elected Douglass Webb as Precinct Chair and Elaine Webb as Precinct Clerk. A vote was taken to appoint Edward Orsini to fill a vacancy. Precinct 2 - With a Quorum present elected Tony D'Arezzo as Precinct Chair and Denise Iozzo as Precinct Clerk. A vote was taken to remove Walter J Carroll and Carol Sampson as Town Meeting members. A vote was taken to elect George A Snow, and Gjergji Bica on a tie breaker vote from the March 1, 2016 election. Precinct 3 - With a Quorum present elected Paul Sylvester as Precinct Chair and John Breslin as Precinct Clerk. No action was taken on a tie breaker vote from the March 1, 2016 election. Precinct 4 - With a Quorum present elected Glen Hartzler as Precinct Chair and Mary Ellen O'Neill as Precinct Clerk. Precinct 5 - With a Quorum present elected Anne Landry as Precinct Chair and Patrick O'Sullivan as Precinct Clerk. A vote was taken to keep Patrick P O'Sullivan as a Town Meeting member. A vote was taken to elect Christine Lusk on a tie breaker vote from the March 1, 2016 election. Precinct 6 - - With a Quorum present elected Greg F Selvitelli as Precinct Chair and Cynthia Tozian Cool as Precinct Clerk. A vote was taken to keep Jacqueline MK Petrillo and Drucilla Wood -Beckwith as a Town Meeting members. A vote was taken to elect Etain O'Dea on a tie breaker vote from the March 1, 2016 election. Precinct 7 - With a Quorum present elected Daniel A Ensminger as Precinct Chair and John Lippitt as Precinct Clerk. Precinct 8 - With a Quorum present elected Kathleen Golini as Precinct Chair and Dan Ross as Precinct Clerk. The meeting was called to order by the Moderator, Alan E. Foulds, at 7:36 PM, there being a quorum present. The Invocation was given by Philip Pacino, Precinct 5 followed by the Pledge of Allegiance to the Flag. Motion made by John Halsey, Board of Selectmen to dispense of the reading of the warrant and all motions in their entirety. Motion Carried ARTICLE 2: 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. Reading Memorial High School Preforming Arts Center ANNUAL TOWN MEETING State of the Town John R Halsey, Board of Selectmen April 25, 2016 The annual "State of the Town" address given under Article 2 typically reviews the past year and briefly looks ahead. This year, Selectmen Chair John Halsey and School Committee Chair Chuck Robinson will instead only look ahead and assess the prospects for local public services given the current financial resources available and the growing community demands. R. Buckminster Fuller is said to have coined the term 'ephemeralization', which is the notion that through continuous technological advancement one can do "more and more with less and less until eventually you can do everything with nothing (citing various sources)". Your elected officials and staff have worked together towards this end over several years, and while we admire the ultimate objective, we do see one important limiting factor - many public services still need to be provided by people. Later next month, the town will publish the Annual Report for 2015 on the newly designed website. You will be able to read this report on any technological device available to modern society and at a rate much faster than ever before. This report has more detail than any "State of the Town" summary could possibly capture, and Town Meeting members are urged to skim through the report when they get a chance. Below is a snapshot of parts of the Annual Report: The Year 2015 in Review The year 2014 might be said to have been a 'Policy Year' with the first significant set of revisions to the Reading Home Rule Charter in twenty-five years and the first comprehensive review and revisions to the Zoning bylaws in almost seventy-five years. In that sense the year 2015 was a 'Financial Planning Year' as steps towards protecting the long term financial health of the community were taken. Permanent Building Committee Town Meeting approved a General Bylaw that created a Permanent Building Committee, and the PBC was then formed from a cross-section of expert professionals from the community. Past building projects have met with Town Meeting criticism, and the PBC has designed a process that adds significant independent formal review and evaluation. Collaboration During the summer extensive discussions between management and senior elected leadership of the Town and Schools resulted in the approval by Town Meeting of changes to the Facilities department and sharing staff in the Human Resources function. The town continued regional shared staffing with Wilmington, North Reading, Wakefield, Melrose and Saugus, and worked closely with North Reading on efforts to give them access to the MWRA water supply, piped through Reading's existing infrastructure. Budgets Town Meeting members have access to the intricate details of the FY2017 budget as part of the Annual Town Meeting Warrant Report. Your attention is especially directed to pages 24-40 which provide a good summary of the financial reality of today with a look ahead, as well as an examination of how Reading compares to 25 Peer Communities in the Commonwealth, both as to how we fund our local budget and how we allocate those funds among departments. Highlights In the annual report you can read high level summaries of projects such as the new Public Library, or of the accomplishments of our exemplary school district; you may also drill down to learn that the average per capita usage of water in Reading is 27% below State conservation guidelines, or that 24,481 excise tax bills were issued in a town with only 25,821 residents, or that an average of two volunteers worked ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 every hour around the clock all year - just through the Human/Elder Services division. Below are some highlights from town departments. Police & Dispatch Calls for service at 55/day were flat to the previous year - national recognition as a safe community Expand community policing efforts through RCASA, HRAC, the schools and visits to seniors Vigilance on underage alcohol sales enforcement efforts Fi re Emergency responses almost 10/day were up 9%; ambulance revenues $784,518 up 27% Emergency Management - very active in federal and state planning efforts School oriented SAFE program extended to seniors in town Public Works New online 'See -Click -Fix' service requests about 2/day Resurfaced 5.3 roadway miles; installed 1,400 feet of curbing; relined 9,500 feet of water mains Maintain 80 acres of grasslands Facilities Substantial time spent on project management for Library renovation and addition Seamless transition to organizational change moving to town government Significant capital plan items accomplished, buildings are in very good condition Public Library Groundbreaking for the Library renovation and addition while operating in a temporary location Added services and programs at off-site locations Strategic planning process completed to examine operations in the new space Town Hall Ombudsman role filled - created by Charter Committee as advocate for residents Significant planning foundation completed for economic development Busy construction year as Building division permits & inspections increased by 21% Social Services very busy, expanded to include intergenerational activities Historic District extended to Summer Avenue Recreational program participation increased by 8% Conclusion Reading is at a crossroads between the growing demands for services from both the town government and school department compared to limited revenue growth. We look forward to a dialogue with the community in coming months in order to resolve this imbalance. Thank you for your service and representation of our neighbors as we face these crossroads together. Challenges Facing Reading Town Government over the Next Few Years...... • Protecting public safety and community infrastructure o Reactive - our public safety staff are increasingly busy responding to calls for service o Proactive - planning for emergencies is imperative in a more dangerous world o Water, sewer, roads, grounds and facilities need constant maintenance .... perpetuation of our capital funding (free cash) is essential • Provide high quality services 0 97% of respondents rank service as excellent or good of five choices o Demands for most public services are increasing..."Bluestone / MAPC"; average age evolution (65+ growing 72% over next twenty +years) o Reading offers more services than most peer communities • Retaining and attracting staff ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 0 7 full- or part-time positions eliminated in FY2017 Budget o Possibility of up to 10 + retirements over the next 2-4 years... replacement concerns o Independent study showed non-union pay is 7% below the average of 25 Peer towns o Performance expectations are for high quality services o Same staff work day -time and night-time government o Next generation has very different requirements for the work place Supporting staff with training & tools o Changing technology requires training o Staffing levels don't allow for many training opportunities o Looming retirements add a high level of training challenges; especially if our starting salaries exclude or minimize the hire of deeply experienced replacements Strong communication with a wide array of customers o The Greatest Generation (1910-1925) and The Silent Generation (1923-1944) never asked for much o Baby Boomers (1945-1964) are amazed at all the changes and adapt at different paces o Gen-Xers (1961-1981) prefer technology to help them seek out answers o Millennials (1975-1995) use the small device in their hand and expect answers to appear o Gen-Zers (1995 -present) represent the next challenge Financial planning both for operations and economic development o Town has the strongest financial management practices according to S&P global ratings; maintenance of appropriate "free cash" levels is one of the many key contributing factors o Town Manager budget overview describes why Reading has revenue challenges o Bedroom community - missed commercial economic development opportunities, but some remain o Key element to support economic development will be highly skilled staffing with focused responsibilities Leveraging private and community resources o Continuous discussions with many groups, and neighboring towns o Permanent Building Committee a perfect example of leveraging the expertise of residents o Town and Schools continue to collaborate ...... Facilities, HR. Reduce costs, improve efficiencies. State of the Town Charles Robinson, School Committee Opening Thank you. The Reading Public Schools have a lot positive momentum and successes to celebrate, and in order to continue this trend and maintain the reasons why citizens stay in Reading and come to Reading we must look to address a potentially bleak and uncertain financial future. Our current financial outlook will require us to cut back and or delay initiatives of the things that make Reading's education system great and the envy of many. Now is not the time to stand still or take a step backwards. It wouldn't be fair to our residents and more importantly our children. A sample of financial challenges that are only expected to get worse are as follows: • Retaining and Attracting Staff 0 7.3 positions are reduced in the budget you will be presented this Tonight (6.3 teachers) o We have seen an increase in teachers leaving district over last four years o Our teacher salaries rank in bottom half of 30 comparable communities • Developing well balanced and prepared students for college and career ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 o Implementing new science and engineering curriculum in our schools o Implementing dedicated health and wellness curriculum in grades 3-8 o Addressing social and emotional needs of our students o Restructuring elementary, middle, and high school schedules and course offerings to reflect changes in curriculum and practices o Increase AP and Honors Course Offerings o Provide support for struggling students Supporting teachers and administrators as we transition to more rigorous standards and curriculum o Maintaining and updating technology and technology infrastructure o Providing adequate supervision and support to teachers and administrators o Offering training in key areas to give teachers the tools they need to address all students in the classrooms o Creating time for teachers to work together to improve student learning • Continuing to improve our special education services and programs o We need to utilize the information provided in the Walker Report to improve our programs - Talk about Walker Report • Identifying long term space needs to address program changes o Special Education Programs - Cost us less to keep students in the District o Full Day Kindergarten and Preschool o Restructured Program Offerings to meet the needs of our ever changing society • Remaining competitive with area schools o We understand we cannot be everything to everyone when it comes to students and teachers but we don't want to lose students because we can't offer a high quality, competitive and challenging public school education. And at the same time our teachers are a reflection of this we don't want to lose quality teachers due to points previously mentioned • Ongoing litigation with RMHS Building Proiect o As previously reported to Town Meeting there has been an ongoing dispute over who is responsible for some of the parts of the RMHS Building Project. o At some point, we may need to address some of these issues with the town reserve funds which will impact their use for other things. Closing I stand here tonight in collaboration with Chairman Halsey to signify the unified front shared by the School Committee and Board of Selectmen when it comes to advocating and obtaining the necessary resources to maintain and move our entire town forward. I also celebrate the collaboration that has already taken place with the combination of building maintenance and the many other areas being explored to achieve savings for our residents and streamline services. I look forward to continuing our collaborative relationship as we navigate the times ahead. Thank you. Reading Memorial High School Preforming Arts Center ANNUAL TOWN MEETING Financial Overview Mark Dockser, Finance Committee April 25, 2016 Thank you Mr. Moderator, Mr. Moderator, I would like permission to speak for about 14 minutes. Thank you. Good evening Town Meeting members, board and committee members and residents. My name is Mark Dockser, Precinct 1 and Chair of the Finance Committee. To provide perspective on this year's budget and budgets moving forward, I want to provide a little bit of background information on what the Finance Committee does, and just a little bit of history. The role of the Finance Committee goes back to 1870, when some Quincy citizens gathered to "restore financial order in their municipality". The Massachusetts Division of Local Services describes the basic roles and responsibilities of the Finance Committee as: "The finance committee is the official fiscal watchdog for a town. Because it is difficult for all taxpayers to be completely informed about every aspect of a town's finances, finance committees were established so a representative group of taxpayers could conduct a thorough review of municipal finance questions on behalf of all citizens." This is a responsibility that we take quite seriously. We are a group of 9 citizens, many of whom are also town meeting members, that regularly reviews and discusses financial activities in the town, with a focus on budgets, current and future. The Finance Committee is charged with creating financial policies that allow us to monitor revenues, spending, and town liabilities. One of our key policies is to set a minimum threshold of reserves, "rainy day funds" if you will, and to recommend to town meeting if and how these reserves should be maintained, grown or spent. We have been using a policy of holding at least 5% of our budget to be held in what the Commonwealth of Massachusetts classifies as "Free Cash", as well as additional reserves that are held in stabilization funds that can focus on a particular purpose. We currently hold approximately 10% in a combination of Free Cash and stabilization funds a high number for Reading but similar to some of our peer communities. We do budget the use of some free cash, between $1.5 and $2.2 MM per year in recent years, to balance our budget. In the last few years, we have regenerated funds (a combination of underspending, and higher than expected revenues) which has resulted in a net increase in free cash year to year. A question that is often asked of us is why can't you spend more free cash to support the annual budget? The answer is that using free cash for one time projects is a very good use of these funds. The expense is one time and so is the cash. But if we use free cash to hire people or spend on a new program, the need for that money remains in each year going forward. So we would have to dig in to our cash that same amount (or slightly more) each year to support that hire or program. Spending an additional $1MM this year for an ongoing person or activity would require us to spend that same amount each year going forward from free cash. We try to be careful in using free cash for this reason. Just to round out the picture of Finance Committee, we also lead the audit committee which with representatives from the Selectmen, School Committee, RMLD and citizens, reviews the Town's compliance with the Municipal Government version of what in the private sector are called Generally Accepted Accounting Principles or GAAP. Through the use of an outside, independent audit firm, we monitor the town's accounts overall and focus in on different areas each year to assure compliance. Finance Committee policy has been to support a spending level on capital projects of 5% of our budget. For FY2016 and FY2017, we have spent slightly below this level recognizing how much we have done and how much is already going on in town. We anticipate returning to the 5% level for FY2018. ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 We also have some informal policies that involve recommending an annual contribution for unfunded liabilities, for what is known as OPEB, of approximately $500k per year ... Town Meeting will be voting to move those funds this evening. We also recommend using a limited amount of free cash to support operating budgets. Budgets Finance Committee spends most of its meeting time working on budgets: Each year in October, we provide guidance to the Town and the Schools about what level of spending we believe is appropriate and affordable based on the Town's financial position—on the revenue side, this is largely our property taxes based on 2.5% growth per year (Prop 2 1/2) + any new growth that we believe we can include for the coming year, local taxes like car excise taxes and meals tax, and state aid. Please also note on the right side of this chart how Reading has become more reliant on property taxes to pay for our town services. In 2003, property taxes represented 62% of our revenues vs. 72% in the FY2017 budget. The biggest drop has been in State Aid which in 2003 was 24% of our revenues ... for FY2017 it is only 16%. On the expense side, we estimate with the help of the Town Manager, Town Accountant and Superintendent of Schools, budgets for what we call "accommodated costs" (notably health insurance, employee benefits, debt and capital) that are not discretionary, and then with estimates of both revenues and accommodated costs we recommend a not to exceed amount of free cash to support the budget. This total revenue then is used to calculate a maximum % increase that the Schools and Town should build their budgets to live within. The Superintendent and Town Manager then work with their teams to develop a budget to deliver the best possible services to the town, being conscious not to exceed the budget guidance. The Town Manager presents his budget to the Selectman for comments/adjustments/approval and the Superintendent presents his budget to the School Committee for comments/adjustments/approval. The Town Manager then presents the full budget including Schools and Town sides to the Finance Committee for review. Finance Committee holds weekly meetings in March during which we review the budgets by department and by line item with the department heads and ask questions about services, possible efficiencies, and if they can do their jobs and deliver excellent services to the town given the recommended budgets. This process culminates at the end of March with any adjustments and then a vote. At this point, the budget becomes the Finance Committee's budget, which we are presenting to you this evening at Town Meeting for your review and approval. Over the last 10+ years, our budgets have grown about 3.1% per year between the Schools and Town. In this time frame, our schools have had to work with largely unfunded mandates, our needs for core services to combat opiods and other community wide issues has required new resources, and our needs for core town services in veterans affairs, in elder affairs, and yes, in snow and ice spending in most years other than this past one, have been strong pulls on our resources. The town has been able to provide strong services based on finding efficiencies in operations, spending wisely, hiring carefully, and by finding ways to get $1.50 in services for every $1.00 that we spend. We have done a very good job of managing our spending within the tax levy, despite the fact that we are a 90% residential community. Many of our peer communities have a substantial commercial and industrial tax base that allows for more sharing of the tax burden. In Reading, it is mostly residential taxpayers that have to pick up the load. That said, our taxes, as you can see on the attached chart, are slightly below that of similar communities. Prop 2 1/2, passed in 1980, is the governing law about the maximum allowable growth rate in taxes each year. It was passed at a time when most communities enjoyed new growth (explain new growth a little?) that had revenues increasing by 4-5+% per year. Cities and towns with stronger commercial and ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 industrial bases were able to sustain these strong revenue growth rates, but Reading does not have the commercial and industrial base to do this. As costs, many of them uncontrollable like health care, continue to increase at rates far higher than 2.5-3% per year, the ability to fund the operations for schools and the town are strained. Many cities and towns will override prop 2 '/i every approximately 10 years, to maintain their services that otherwise would have to be cut. The last time Reading voted on and passed an override was 13 years ago, April 2003. By a show of hands, how many people here tonight were Town Meeting Members @ the last override? FY2017 We have been both careful and fortunate over the past few years as we budgeted conservatively, both the Town and Schools underspent their budgets, and the net result has been that our Free Cash has increased while we have been able to provide close to level services to the taxpayers. For the past 3 years, Finance Committee has shared with Town Meeting our belief that our operating budgets would be getting very tight to support the level of services that we are currently enjoying in the town. You have heard from the Chairs of the Selectman and School Committee, and you will hear from the Town manager and the Superintendent, that we are at a point where we are no longer able to sustain level services in this budget that we are bringing forward this evening. We are approximately $1.5-$2.0 MM below a spending level that the Town and Schools would consider to be level. The budget increase this year is 2.6%, well below that of years past. That said, all of the departments are providing a high level of services within the budget constraints. However, our budgets are such that people are the largest part of our expenditures, and some cuts were required this year. Tonight, we will review each line item of the budget, with presentations from the Town Manager and Superintendent of Schools explaining the key drivers of the budget and the requested amounts for Town Meeting to vote on. Finance Committee believes this budget to be an effective use of the taxpayers money, balanced, fiscally sound, and although it does not provide level services, cuts have been made in people and programs to allow for the highest possible level of services such that the department heads do not foresee any major shortfalls in services they can provide in FY2017. FY2018 The outlook for FY2018, however is much more serious. Expected increases in accommodated costs and our return to 5% for capital will leave our operating budget with very little possible increase within our current ability to raise revenues. We are probably looking at 1-1.5% increases in the operating budget compared to the 3.1% which is what we have achieved annually over the last 10+ years, and what is required for level or close to level services. The departments will have to look at their budgets to make substantial cuts if our revenues are capped by Proposition 2 1/2 as they are now. As you heard from Chairs of the Selectman and School Committee, the town boards and committees will be listening to taxpayers in the coming months to better understand taxpayer priorities in order to frame the best option to bring forward for an election in October. October 2016 is when Finance Committee will be providing guidance to the Town and Schools about their FY2018 budget preparation, so this timing is very important. The Finance Committee will work with the boards and committees as that representative group of taxpayers that will review the financial issues in depth for all taxpayers. Thank you for your attention. ANNUAL TOWN MEETING Reading Memorial High School April 25, 2016 Preforming Arts Center Comprehensive Zoning Project Update Jeff Hansen, Community Planning and Development Commission Thank you Mr. Moderator, Hello fellow Town Meeting members, Jeff Hansen, precinct 7 and Chairman of the Community Planning and Development Commission, Thank you for this opportunity to update you on the work the CPDC currently has underway for November 2016 Town Meeting and beyond. For starters, our areas of focus have changed since the last time I stood here in November 2015. At that time, the CPDC envisioned a certain set of logical priorities that would allow us to wrap up our Comprehensive Zoning Rewrite, which we began in early 2013. Everything to the left of the green arrow in the slide behind me reflects all of the work completed to date since we started our work. It's the work on the right of the arrow that's changed. Those priorities originally slated for November 2016 included the rewrite of the Planned Unit Development section, the Planned Residential Development section and, if conditions allowed, signs and parking. Since then, a few events have occurred that have given the CPDC pause and made us ask ourselves - do we have the right set of priorities? These events are notably the December 2015 publication of Reading's Economic Development Action Plan and the United States Supreme Court ruling in the case of Reed vs. the Town of Gilbert, Arizona. The decision of this case impacts how local governments can regulate signage and, as a result, has an impact on our existing sign bylaw. Additionally, Town Planning staff has identified a few areas of potential adjustments, based on actual use of the revised bylaw. So, the rationale to adjust our priorities was there. Following discussion in our regularly scheduled meetings, the CPDC held a public forum on February 22, 2016 where we presented and finalized our 2016 and beyond zoning priorities. This restated list of priorities is now: 1. Signs - The CPDC is revising Reading's sign bylaw, based on Town Counsel advice following the Supreme Court's decision and subsequent clarifications by the late Justice Antonin Scalia. 2. Overlay Districts - The CPDC is reviewing possible expansion of the mixed use 40R overlay district, following recommendations to evaluate expansion by the Economic Development Action Plan. 3. Site Plan Review - The CPDC is making adjustments to our Site Plan Review process, identified after some use of the recently revised procedures. 4. Minor Changes - The CPDC is making minor adjustments to our revised bylaw including accessory structures and uses and our definition of lot shape. The public input collected in the February forum supported our priorities and emphasized the importance of communication and public input, particularly for those residents that live in areas that may be impacted by proposed changes. As a way of managing these workflows and ensuring transparency, the CPDC has implemented four working groups to oversee each of the priorities. Each workgroup is led by a different CPDC member and include volunteer participation. As of today, the work groups have made excellent progress with their work. The sign work group has completed multiple reviews of and revisions to our existing bylaw to bring it into alignment with the Supreme Court ruling, with each draft building off of previous suggestions. In the coming weeks, this work group will coordinate closely with Town Counsel to ensure it stays within the four corners of the law. The Overlay District work group has decided to expand the focus of their original mandate beyond 40R mixed- use and the areas recommended by the Economic Development Action Plan. They're considering other types of zoning, including overlay districts, sub -districts and 40R. The CPDC recently hosted a public forum attended by over 80 residents, local business owners, Town Meeting members and other interested parties who provided feedback on general ideas, concepts and proposals. The feedback was both verbal and interactive, using maps and stickers to designate preferences. This feedback was recently compiled ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 and shared with the attendees and can be found on the Town website. It will be discussed in greater detail in our next CDPC meeting on May 9th. Ultimately, the goal will be to identify specifically where we should focus our zoning efforts and then develop vision statements for those areas. Public hearings will be held as we continue this discussion. The Site Plan Review and Minor Amendment work groups are making excellent strides with compiling proposed amendments. The work groups have collected feedback from the Town's building inspector, Planning Department and local businesses as well as reviewed how other Towns are handling specific situations... all with the goal of introducing amendments that fit the fabric of Reading and our unique needs. So ... a lot of good work is underway with more to come. The challenge we face is one of time. Do we have enough time to complete our work, collect and incorporate public input, vote and approve to have these amendments added to the November Town Meeting warrant? The answer is ... probably not, not for everything. I fully expect the Minor Amendments will make it before November Town Meeting, as well as revisions to Site Plan Review. The goal is to have Signs on the warrant for November as well, but there is a significant amount of work and outreach still required. The Overlay District changes are complex with a large education and public outreach component that require more planning and time. I would like to thank you for your time and attention tonight. My ongoing commitment as Chairman of the CPDC is transparency and awareness of the work we're doing. My request of you is your ongoing support and participation. I've seen many of you at our meetings and public forums. I thank you for your involvement and invite all of you to our sessions. Be sure to check in with the Town's new website, where information related to this work will be posted and regularly maintained. It's your voice as the representatives of the citizens of Reading that will help shape our work towards developing the best possible vision and roadmap for Reading. Thank you. On motion made by Kevin Sexton, Board of Selectmen Article 2 was tabled ARTICLE 3: Move to choose all other necessary Town Officers and Special Committees and determine what instructions shall be given Town Officers and Special 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 Special Committees to carry out the instructions given to them, or take any other action with respect thereto. Finance Committee Report: No report Bylaw Committee Report: No report Motion made by Kevin Sexton, Board of Selectmen to table Article 3 Motion to Table Carried ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 ARTICLE 4: Move that the Town vote to amend the FY2016-26 Capital Improvements Program as provided for in Section 7.7 of the Reading Home Rule Charter and as previously amended, by making these changes: General Fund FY2016: -$15,000 $65,000 DPW: Replace Dump Truck C3 (1999; moved up from FY2017) $35,000 Facilities: Fire & Police station carpet/flooring $25,000 Facilities: Replace batteries for emergency UPS units for schools & town buildings ($15,000) DPW: Dump Truck surplus ($25,000) Facilities: Generator project surplus ($50,000) Facilities: Fire station technology infrastructure ($50,000) Facilities: Town Hall roof project surplus FY2017: +$65,000 $150,000 Facilities: Cemetery garage project ($20,000) Police AEDs pushed back two years to match Fire Dept. replacement cycle ($65,000) DPW Dump Truck C3 (moved up to FY2016) FY2018+ Various other changes made tnterprise runas - water FY2016: None FY2017: +$610,000 $575,000 Grove Street water main (1500 feet) $30,000 Unidirectional Water Main flushing 4 -year program +$5,000 add to Car #2 Replacement (now $35,000) FY2018+ Various changes made C11LCfPf1,C ru11uao — JCWCI FY2016: None FY2017: +$35,000 $35,000 Replace Car #1 (2006 - moved up from FY2018) $3 million debt for Charles & Sturges sewer stations moved back to FY2018 (reduces debt service for FY2017 by $420,000) FY2018+ Various changes made CIIIC/ FJI MC rullu.7 — .7LU1111 VVCILCI FY2016: None FY2017: +$155,000 $150,000 Grove Street drainage repairs (new) $80,000 Bond Street outfall and drainage repairs (new ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center ($ 75,000) generic drainage projects reduced from $125k to $50k FY2018+ Various changes made April 25, 2016 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. Finance Committee Report - given by Marc Moll: The Finance Committee recommends the proposed amendments to the FY2016 - FY2026 Capital Improvements Program by a vote of 6-0-0 at their meeting on April 25, 2016. Placing items in the Capital Improvement Program is a prerequisite but in itself does not authorize spending funds towards these items. Bylaw Committee Report: No report Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted 3-0-0 to support this Article. Presentation given by: Robert LeLacheur - See Attached After some discussion a vote was taken: Motion Carried ARTICLE 5: Move that the Town vote to amend the Town's Operating Budget for the Fiscal Year commencing July 1, 2015, as adopted under Article 20 of the Annual Town Meeting of April 27, 2015 and amended under Article 5 of the Subsequent Town Meeting of November 9, 2015; and to see if the Town will vote to raise and appropriate, borrow or transfer from available funds, or otherwise provide a sum or sums of money to be added to the amounts appropriated under said Article, as amended, for the operation of the Town and its government: General Fund - Wages and Expenses Account Line Description Decrease Increase B91 - Benefits Disability Retirement (One Firefighter - $75,000 Wages cost shifted from department to central location $75,000 B99 - Benefits Health Insurance premiums -$135,000 $135,000 expenses C99 - Capital DPW: Replace Dump Truck C3 (1999; $15,000 Expenses moved up from FY2017) $65,000 Facilities: Fire & Police station carpet/flooring $35,000 Facilities: Replace batteries for ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 emergency UPS units for schools & town $25,000 DPW: Highway Dump Truck -$15,000 Facilities: Generator project -$25,000 Facilities: Fire Sta tech infrastructure - $50,000 Facilities: Town Hall roof project - 50 000 E99 - Vocational Reduced for actual enrollment $70,000 Education Minuteman & Essex North -$70,000 F99 - Finance Not needed for modular classrooms $75,000 Committee Reserves -$75,000(remaining balance $150,000) G91 - Administrative Vacant positions during the year - $70,000 Services Wages $70,000 G92 - Administrative HR - Hiring Process expenses $22,000 $42,500 Services Expenses Technology - software for elder/human services to tie into state system $7,500 Technology - emergency repairs for engineering hardware $6,000 Technology - software for HR to streamline Personnel Reviews $4,000 Town Clerk - Vital Records project $3,000 H91 - Public Services Economic Development planner* $10,000 Wages $10,000 I91 - Finance Wages Finance Vacation/Sick buybacks $20,000 $20,000 391 - Public Safety Police Vacation/Sick buybacks $75,000 $75,000 Wages K91 - Public Works DPW Vacation/Sick buybacks $30,000 $65,000 Wages Town Engineer overlap $35,000 K92 - Public Works Fuel -$50,000 $50,000 Expenses K93 - Public Works Snow & Ice Removal -$32,500 $32,500 Snow & Ice K94 - Public Works Street Lights -$25,000 $25,000 Street Lights K95 - Public Works Rubbish Disposal -$80,000 $80,000 Rubbish M91 - Core Facilities Consulting Services for Security System $125,000 Evaluation $125,000 U99 - School First year funding for new K-12 Science $150,000 Department Curriculum materials $150,000 Subtotals $552,500 $562,500 Net Operating Expenses $10,000 From Free Cash $0 *From Inspections Revolving Fund $10,000 ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 Finance Committee Report - given by David Neshat: At their meeting on March 30, 2016 the Finance Committee voted 8-0-0 to recommend this Article to Town Meeting. Bylaw Committee Report: No report Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted 3-0-0 to support this Article. Presentation given by: • Robert LeLacheur - See Attached Motion made by William Brown, Precinct 8 as follows: H91 - Delete $10,000 to $0 Motion to Amend does not Carry After some discussion a vote was taken: Motion Carried as Presented ARTICLE 6: Move that the Town vote to appropriate the sum of Five hundred and seventy six thousand ($576,000) dollars to the irrevocable trust for "Other Post -Employment Benefits Liabilities" or take any action with respect thereto. Background: As part of the FY2016 budget the town voted $500,000 in the general fund, $50,000 in the water fund, $20,000 in the sewer fund and $6,000 in the storm water fund for the Other Post Employment Benefit (OPEB) contributions. This Article will therefore move the total $576,000 of all these OPEB contributions to the irrevocable trust for Other Post Employment Benefit liabilities. The most recent OPEB valuation shows the Town's OPEB liability at $67.2 million. The three Enterprise Funds and the Light Department are on an aggressive fully funding twenty year schedule, and the General Fund is on a partial funding schedule projected over thirty years. The latter will transition to a full funding schedule as soon as possible, as is required by law or after the Pension Fund is fully funded in FY2029. Finance Committee Report - Anne Johnson Landry: At their meeting on March 30, 2016 the Finance Committee voted 8-0-0 to recommend this Article to Town Meeting. Bylaw Committee Report: No report Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted 3-0-0 to support this Article. W99 - Water expenses Specialty tools for utility truck #5 $45,000 Hydrants for new water mains $25,000 $70,000 Subtotals $0 $70,000 Net Operating Expenses $70 000 From Water Reserves $70,000 Finance Committee Report - given by David Neshat: At their meeting on March 30, 2016 the Finance Committee voted 8-0-0 to recommend this Article to Town Meeting. Bylaw Committee Report: No report Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted 3-0-0 to support this Article. Presentation given by: • Robert LeLacheur - See Attached Motion made by William Brown, Precinct 8 as follows: H91 - Delete $10,000 to $0 Motion to Amend does not Carry After some discussion a vote was taken: Motion Carried as Presented ARTICLE 6: Move that the Town vote to appropriate the sum of Five hundred and seventy six thousand ($576,000) dollars to the irrevocable trust for "Other Post -Employment Benefits Liabilities" or take any action with respect thereto. Background: As part of the FY2016 budget the town voted $500,000 in the general fund, $50,000 in the water fund, $20,000 in the sewer fund and $6,000 in the storm water fund for the Other Post Employment Benefit (OPEB) contributions. This Article will therefore move the total $576,000 of all these OPEB contributions to the irrevocable trust for Other Post Employment Benefit liabilities. The most recent OPEB valuation shows the Town's OPEB liability at $67.2 million. The three Enterprise Funds and the Light Department are on an aggressive fully funding twenty year schedule, and the General Fund is on a partial funding schedule projected over thirty years. The latter will transition to a full funding schedule as soon as possible, as is required by law or after the Pension Fund is fully funded in FY2029. Finance Committee Report - Anne Johnson Landry: At their meeting on March 30, 2016 the Finance Committee voted 8-0-0 to recommend this Article to Town Meeting. Bylaw Committee Report: No report Board of Selectmen Report: The Board of Selectmen on March 22, 2016 voted 3-0-0 to support this Article. ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center Motion Carried April 25, 2016 ARTICLE 7: Move that the Town vote to vote to delete Section 8.8 Animal Control of the General Bylaw and insert the following in its place: 8.8 Animal Control Pursuant to the authority set forth in MGL Chapter 140 Sections 136A -174E, inclusive, and any other relevant statutes and regulations issued pursuant thereto, the following requirements are adopted for the regulation of dogs in the Town of Reading. 8.8.1 Definitions The definitions of words and terms set forth in MGL. Chapter 140 Section 136A are incorporated into Section 8.8 and shall be applicable to the interpretation thereof. In addition, unless the context clearly indicates otherwise, the following words and terms, as used in Section 8.8, shall have the following meanings: 8.8.1.1 Animal Control Appeals Committee (ACAC) The "Hearing Authority," as that term is defined in MGL Chapter 140 Section 136A, charged with the responsibility of handling dog complaints for the Town of Reading, pursuant to MGL Chapter 140 Section 157. 8.8.1.2 Animal Control Officer (ACO) A person appointed by the Town Manager who is authorized to enforce this Bylaw and MGL Chapter 140 Sections 136A -174E. 8.8.1.3 Effective Voice Control An animal shall be deemed to be "under effective voice control" if it is within the owner's or keeper's sight, the owner or keeper is carrying a leash, and the animal refrains from illegal activities. 8.8.1.4 Running at Large A dog is running at large if it is not on the private property of its owner or keeper, or on private property with the express permission of that property's owner, or on a leash, or under effective voice control. 8.8.2 Licensing and Fees 8.8.2.1 License and Vaccination Requirements In accordance with MGL Chapter 140 Section 137, the owner or keeper of a dog(s) six months of age or older, while residing in the Town of Reading, shall obtain a license for the dog from the Town Clerk, which shall be affixed to the dog's collar. To obtain or renew a license, each dog owner or keeper shall annually present proof of a current rabies vaccination or a certification of exemption from the vaccination requirement, pursuant to MGL Chapter 140 Sections 137(b) and 1458. 8.8.2.1.1 New Dogs and Puppies Within thirty (30) days of either (a) acquiring a dog six (6) months of age or older or (b) a puppy's six-month birthday, each dog owner or keeper in Reading shall present ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 proof of that dog's current rabies vaccination and obtain a license and dog tag from the Town Clerk. 8.8.2.1.2 Lost Tags and Replacement Tags Dog owners and keepers shall replace a lost tag within three (3) business days of the loss, by obtaining a replacement tag from the Town Clerk. 8.8.2.1.3 Tag Exemptions for Dog Events While actually participating in an official dog sporting or dog fancy event, a dog may, if the event sponsors do not allow participants to wear tags, be exempt from the requirement of section 8.8.2.1 that its license tag be affixed to its collar; provided, however, that the dog owner or keeper shall have the tag at the event and available for inspection by the ACO. 8.8.2.1.4 Tag Exemptions for Medical Reasons During any period when a veterinarian has determined that a dog cannot wear a collar for medical reasons, the dog shall be exempt from the requirement of section 8.8.2.1 that its license tag be affixed to its collar; provided, however, that its owner or keeper shall have the tag in his or her possession and available for inspection by the ACO. 8.8.2.1.5 Annual Renewal Dog owners and keepers shall renew each dog license annually. The annual licensing period runs from January 1 through December 31. 8.8.2.1.6 License due Date and Late Fee Application forms for obtaining, renewing or transferring a license shall be made available annually no later than December 31 each year. Dog owners and keepers shall return forms and fees to the Town Clerk by March 31 or, if such date is not a business day, by the first business day thereafter. Any license renewed after this date shall be deemed overdue, and the owner or keeper shall be required to pay a late fee as determined by the Town Meeting in addition to the license renewal fee. The license fee and the late fee may be secured through the imposition of a municipal charges lien on any property standing in the name of the dog owner or keeper, pursuant to MGL Chapter 40 Section 58. 8.8.2.1.7 License Fees Fees for licensing each dog shall be determined by the Town Meeting; provided, however, that the fee for neutered or spayed dogs shall be less than the fee for non - neutered or non -spayed dogs. No dog license fee shall be charged for any service dog as defined by the Americans with Disabilities Act or regulations issued thereunder; or for a license for a dog owned by a person 70 years of age or older. 8.8.2.2 Kennel Licenses No person may own or board four or more dogs within the Town of Reading without first obtaining a Kennel License from the Town Clerk, in accordance with MGL Chapter 140 Section 137A; provided, however, that this requirement shall not apply to medical boarding by any licensed veterinarian practicing in the Town of Reading. To obtain or renew such kennel license, the owner or keeper of the dogs shall: ANNUAL TOWN MEETING Reading Memorial High School April 25, 2016 Preforming Arts Center (a) Present proof of current rabies vaccinations for each dog older than six months in the kennel or a certification of exemption from the vaccination requirement, pursuant to MGL Chapter 140 Sections 137(b) and 145B; and (b) Pass an inspection by the Animal Control Officer pursuant to MGL Chapter 140 Sections 137A and 137C. 8.8.2.2.1 New Dogs and New Puppies A kennel licensee who is also the owner or keeper of dogs shall report to the Town Clerk each new dog in the kennel within thirty (30) days of its acquisition; shall show proof of current vaccination; and shall obtain a kennel tag for that dog. The kennel licensee shall show proof of current vaccination and obtain a tag for each puppy when it reaches six months old. 8.8.2.2.2 Periodic Inspections The Town may perform an inspection of any kennel at any time pursuant to MGL Chapter 140 Section 137C. 8.8.2.2.3 Annual Renewal Each kennel licensee shall renew the kennel license annually. The annual licensing period runs from January 1 to December 31. 8.8.2.2.4 License Due Date Application forms for obtaining, renewing or transferring a kennel license shall be made available annually no later than December 1 each year. Kennel licensees shall return forms and fees to the Town Clerk by January 15 or, if such date is not a business day, by the first business day thereafter. Any kennel license renewed after this date shall be deemed overdue, and the owner or keeper shall be required to pay a late fee as determined by the Town Meeting in addition to the license fee. The overdue license fee and the late fee may be secured through the imposition of a municipal charges lien on any property standing in the name of the kennel licensee, pursuant to MGL Chapter 40 Section 58. 8.8.2.2.5 Fees The fees for licensing each kennel shall be established by the Board of Selectmen. 8.8.2.2.6 Penalties Any person maintaining a kennel after the kennel license therefor has been denied, revoked or suspended shall be subject to the penalties set forth in Section 8.8.6. 8.8.3 Conduct of Dogs 8.8.3.1 Nuisance and Dangerous Behavior No dog owner or keeper shall permit the dog to become or remain a nuisance dog or a dangerous dog, as those terms are defined and used in MGL. Chapter 140 Sections 136A and 157. 8.8.3.2 Leash Law When not on the private property of its owner or keeper, or on private property with the express permission of that property's owner, a dog shall be on a leash; provided, however, that it may be under effective voice control when within the Town Forest or on conservation lands. ANNUAL TOWN MEETING Reading Memorial High School April 25, 2016 Preforming Arts Center 8.8.3.2.1 Public Gatherings - Leash Control Only Except as otherwise specified in Section 8.8, a dog may be at any public gathering only if it is on a six-foot or shorter leash and refrains from illegal activities. 8.8.3.2.2 School Grounds Unless the School Principal gives permission in advance, no dog may be on school grounds from thirty (30) minutes before classes begin until thirty (30) minutes after classes end. At all other times, the dog may be on school grounds only if it is on a six-foot or shorter leash or remains within a vehicle. 8.8.3.2.3 Exception for Assistance Animals (service animals) The provisions of this Section 8.8.3.2 shall not apply to any properly trained assistance animal or service animal while performing its duties. 8.8.3.3 Dog Litter Every dog owner or keeper shall be responsible for expeditiously removing any feces that the dog deposits anywhere except on its owner's or keeper's private property, or on other private property with the property owner's permission 8.8.4 Animal Control Officer 8.8.4.1 Appointment The Town Manager shall appoint an ACO pursuant to MGL Chapter 140 Sections 151 and 151A to carry out the provisions of Section 8.8 and to perform such other duties and responsibilities as the Town Manager or its designee may determine. 8.8.4.2 Duties The ACO's duties shall include the enforcement of the provisions of Section 8.8 and of MGL Chapter 140 Sections 136A -174E and any relevant state or local regulations. 8.8.4.3 Issuance of Temporary Restraint Orders The ACO may issue a Temporary Restraint Order to the owner or alleged to be a nuisance dog or a dangerous dog and is 8.8.5.2. A Temporary Restraint Order shall be in force f unless the ACO renews it in writing for subsequent thirty rescind or stop renewing the order when, in the ACO's required. The ACO's order shall expire upon receipt of nuisance dog or dangerous dog hearing. keeper of any dog that is awaiting a decision under Section or no more than thirty (30) days (30) day periods. The ACO may judgment, restraint is no longer a decision from the ACAC on the 8.8.4.4 Issuance of a Temporary Confinement Order The ACO may make arrangements for the temporary housing of any dog that requires such temporary housing, and may issue an Order of Temporary Confinement authorizing such temporary housing. The housing may be at local veterinary clinics, or at dog kennels within the Town or neighboring towns, and shall be at the dog owner's or keeper's expense. 8.8.4.5 Complaint Investigation The ACO shall make a written record of and shall investigate all complaints arising within the Town pertaining to violations of Section 8.8 or MGL Chapter 140 Sections 136A -174E and report its findings to the ACAC. ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 8.8.4.6 Recordkeeping The ACO shall keep accurate, detailed records of the confinement and disposition of all dogs held in custody, all bite cases reported, and the results of investigations. The ACO shall maintain a telephone log of all calls received regarding dogs and submit a monthly report summarizing the log to the ACAC. 8.8.5 Animal Control Appeals Committee 8.8.5.1 Composition of the ACAC The Animal Control Appeals Committee shall be composed of three Reading residents, none of whom shall otherwise be employees of the Town, appointed to three-year overlapping terms by the Board of Selectmen. The ACAC shall annually select a member to serve as the Chair. At least one of the three members must be a dog owner. 8.8.5.2 Nuisance or Dangerous Dog Hearings Any person may file a complaint in writing to the ACAC that a dog owned or kept in the Town is a nuisance dog or a dangerous dog. All such complaints shall be investigated and addressed in accordance with MGL Chapter 140 Section 157. 8.8.6 Penalties 8.8.6.1 Fines Any dog owner or keeper who maintains a kennel after the kennel license has been denied, revoked or suspended, or who fails to obtain a kennel license; and any dog owner or keeper who fails to comply with Section 8.8.3 shall be subject to penalties as determined by the ACAC, not exceeding Three Hundred ($300) Dollars per day for every day of the violation. 8.8.6.2 Reimbursement of Costs If the ACO confines a dog and the dog owner or keeper does not pay all fees directly to the kennel or veterinary clinic, then the dog's owner or keeper shall be required to reimburse the Town for any expenses incurred in boarding that dog. If the dog has not been licensed, the owner or keeper shall obtain a license and pay any applicable late fee before the dog can be released. 8.8.6.3 Penalties for Violating Temporary Restraint Orders The ACAC shall determine a schedule of penalties not exceeding Three Hundred ($300) Dollars per day for each and every violation of Temporary Restraint Orders. 8.8.6.4 Penalties for Non -Compliance with and Order of the ACAC An owner or keeper of a dog who fails to comply with an order of the ACAC shall be punished in accordance with MGL Chapter 140 Section 157A. 8.8.6.5 Enforcement In addition to any other means of enforcement, the provisions of Section 8.8 and the regulations adopted pursuant thereto may also be enforced by non -criminal disposition in accordance with the provisions of Section 1.8, and MGL Chapter 40 Section 21D. The penalty for such violation shall be $300 for each offense. Each day or part thereof shall constitute a separate offense. Presentation given by: Robert LeLacheur - See Attached ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center Finance Committee Report: No report April 25, 2016 Bylaw Committee Report - given by Marcel DuBois: The Bylaw Committee recommends this Article by a vote of 5-0-0 at their meeting on March 28, 2016. Motion made by William Brown, Precinct 8 to amend as follows: 8.8.3.2.1 Public Gatherings - Leash Control Only Except as etheFW'se specified prohibited on Town property by the authority having care, custody, management and control thereof in Seetien a dog may be at any public gathering only if it is on a six-foot or shorter leash and refrains from illegal activities. Motion Withdrawn Motion made by William Brown, Precinct 8 to amend as follows: Inserting a new section 8.8.3.2.3 as follows: 8.8.3.2.3 Cemetery Grounds No dogs shall be allowed on cemetery grounds at any time. and to renumbering the section entitled 'Exception for Assistance Animals (service animals)" as section 8.8.3.2.4. Motion Does Not Carry Motion made by Thomas Ryan, Precinct 1 to amend as follows: 8.8.2.1.7 License Fees Fees for licensing each dog shall be determined by the Town Meeting; provided, however, that the fee for neutered or spayed dogs shall be less than the fee for non Re teFe ! ^F n0R spayed dE)gs nonneutered or nonspayed dogs. No dog license fee shall be charged for any service dog as defined by the Americans with Disabilities Act or regulations issued thereunder; or for a license for a dog owned by a person 70 years of age or older. Motion Carried Motion made by Thomas Ryan, Precinct 1 to amend as follows: 8.8.1.3 Effective Voice Control ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center April 25, 2016 An animal shall be deemed to be "under effective voice control" if it is within the owner's or keeper's sight, the owner or keeper is carrying a leash. ar+'`avcry ities.. Motion Does Not Carry Motion made by Ron D'Addario, Precinct 6 to amend as follows: 8.8.3.2.3 Cemetery Grounds Dogs on a six-foot or shorter leash shall be allowed on Cemetery Grounds at any time that the Cemetery is open to the public and to renumbering the section entitled "Exception for Assistance Animals (service animals)" as section 8.8.3.2.4. Motion Does Not Carry Motion made Jamie Maughan, Precinct 4 to amend as follows: 8.8.3.2 Leash Law When not on the private property of its owner or keeper, or on private property with the express permission of that property's owner, a dog shall be on a leash; provided, however, that it may be under effective voice control when within the Town Forest or on conservation lands if allowed by Conservation Commission rules. Motion Carried After some discussion a counted vote was taken: Counted Vote 131 Voted in the affirmative 2 Voted in the negative 163 Town Meeting Members in Attendance Motion Carried as Amended On motion by Bill Brown, Precinct 8 it was voted that this Annual Town Meeting stand adjourned to meet at 7:30 PM at the Reading Memorial High School Preforming Arts Center, on Thursday, April 28, 2016. Meeting adjourned at 10:36 PM with 163 Town Meeting Members in attendance. Motion Carried ANNUAL TOWN MEETING Reading Memorial High School Preforming Arts Center A true copy Attest: AauAAGemme Town Clerk April 25, 2016 FY17 Budget Review & Financial Overview Report to Annual Town Meeting Mark Dockser--Chair, Reading Finance Committee April 25, 2016 Role of the Finance Committee "The finance committee is the official fiscal watchdog for a town. Because it is difficult for all taxpayers to be completely informed about every aspect of a town's finances, finance committees were established so a representative group of taxpayers could conduct a thorough review of municipal finance questions on behalf of all citizens." Source: Massachusetts Division of Local Services 4/13/2017 1 "Free Cash" Free Cash/Revenue 124 a% \6% 4% 2% ox 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017P FREE CASH & STABILIZATION FUNDS VERSUS PER CAPITA INCOME 121M Free Cash & Stabilization uox • mox •� ♦A •AK � • duo%. AM 4%ac►7 ......� ,. .,... . ,.,.., ,.... .. FY2015 Stabilization funds of ^2% of budget are held in addition to Free Cash Using Free Cash-- 1 -time Project vs. Operations One time aroiect: 51MM • Year 1 impact from FC: $1MM • Year 2 impact from FC: $0 • Year 3 impact from FC: $0 • TOTAL IMPACT: $1 MM From FC Ooeratinla expense: 51 MM • Year 1 impact from FC: $1MM • Year 2 impact from FC: $1 MM • Year 3 impact from FC: $1 MM • TOTAL IMPACT: $1 MM/year From FC 4/13/2017 2 4/13/2017 FinComm Activities and Policies • Audit Committee • FinComm Chairs Town Audit Committee + 2 members on RMLD Audit Committee • Formal Policies • Minimum 5% of annual town budget to be held as "Free Cash" • 5% of annual town budget to be spent on capital improvement projects • Informal Policies • Annual contribution toward unfunded liabilities (OPEB) • Use of limited free cash to support operating budget FY17 Revenues Source % of Source % of Budget 2003 Budget2017 Property Taxes $63,984,267 $61,930,265 3.3% . 62% 73% Other Taxes & Fees: $6,615,000 $6,362,500 4.0% 9% 8% Excise, Meals, Services, Misc State Aid $13,725,000 $13,612,031 0.8% . 24% 16% Transfers: $3,868,490 $3,779,131 2.4% 5% 4% RMLD, Enterprise Funds,Misc TOTAL OPERATING $88,192,757 $85,683,927 2.9% .--, Budgeted Free Cash $2,000,000 $2,199,765 -9.1% .- TOTAL REVENUES $90,192,757 $87,883,692 2.6% .- 3 FY17 Budget—General Fund FY17 Budget Finance Committee --General Fund* Category Budget % change YA % of Budget Accomodated Costs $23,492,850 2.1% 26.2% Administrative Services $2,764,040 1.0% 3.1% Public Services $1,621,125 0.9% 1.8% Finance $781,300 -7.6% 0.9% Public Safety $9,953,350 3.6% 11.1% Public Works $5,604,655 0.6% 6.3% Library $1,485,500 3.4% 1.7% Facilities $3,140,680 5.5% 3.5% School Department $40,697,666 3.1% 45_5% TOTAL $89,541,166 2.6% 100% *Excludes Enterprise Funds, Voke FY17 Budget Finance Committee --General Fund Public Services 2% -Finance 1% Facilities_ Library 4% 2% Revenue Growth Averages 3.1% (2006-2015) Annual Revenue Growth 12.0% 100% ride 6.0% 4.0% 2.0% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -2.0% -0.096 6.096 Reading • Peer Communities Commercialwith Larger •industrial 4/13/2017 M Comparative Taxes Taxes paid versus 5F Assessed values FY17 Budget—General Fund FY17 Budget Finance Committee --General Fund FY17 Budget Finance Committee—General Fund* FY 15 Avg SF Avg Tax 14.000 %of Bud,.f Concord 902.043 12,890 13,000 Lexington 820.366 12,191 Public Services Belmont 847,928 10.938 17.0002 — 0.9% Public5afety $9,953,350 3.6% 11.1% Winchester 872.118 10.588 11,000 ice'' Andover 577,689 8.648 10,000 -- ! Bedford 588.699 8.607 9,000 - N Reading 482,670 8 022 8,000 Lynnfield 553.557 8.021 100% \ 2% Westford 464,442 7,543 1000 wq Reading'16 499,500 7,248 6000 ..._...... t , N Andover 476 092 6.851 5,000 Reading'15 464,251 6.824 4,000 " -- Wakefield 416.013 5 608 300,000 400,000 SOO,000 600.000 100,000 800,000 900,000 1.000.000 Stoneham 417,488 5.411 Tewksbury 327145 5,355 Shrewsbury 381.043 5.030 FY17 Budget—General Fund FY17 Budget Finance Committee --General Fund *Excludes Enterprise Funds, Voke Facilities) Library 4% 2% 4/13/2017 5 FY17 Budget Finance Committee—General Fund* category Budget %than¢. YA %of Bud,.f Accomodated Costs $23,492,850 2.1% 26.2% Adminisomfrve Services $2,764,040 1.0% 3.1% Public Services $1,621,125 0.9% 1.874 Finance $781,300 -7.6% 0.9% Public5afety $9,953,350 3.6% 11.1% TEGORY Publicworks $5,604,655 0.6% 6.3% 1 AME] CENTAGE Library $1,485,500 3.4% 1.7% Facilities $3,140,680 5.5% 3.5% Public School Department 540 69] fi66 3.1% /5_5% Services TOTAL 589,561,166 2.6% 100% \ 2% *Excludes Enterprise Funds, Voke Facilities) Library 4% 2% 4/13/2017 5 FY18 Budget • Drivers: • Modest revenue growth • Return to 5% capital projects • Continue to use limited amount of free cash • Health care and accommodated costs remain very high (8.2% health 2017) • Implications: Without additional revenues, anticipated FinComm Operating Budget guidance of 1-2% growth (vs. 3.1% for level services, 2.6% FY17) • Substantial cuts required 4/13/2017 L