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HomeMy WebLinkAbout2018-03-28 Finance Committee Minutes FR O�� r a Town of Reading RECEIVE, D p Meeting Minutes �, ., o C READ'IN n, A-0 A. s39�7NCOAQO� Board - Committee - Commission - Council: 2016 APP t2 PPS I2: 20 Finance Committee Date: 2018-03-28 Time: 7:30 PM Building: Reading Community Television -RCTV - Location: Meeting Room Address: .557 Main Street Session: Purpose: Financial Forum Version: Attendees: . Members - Present: Chair Peter Lydecker, Mark Dockser, Vanessa Alvarado, Eric Burkhart, Marc Moll, Anne Landry Members - Not Present: Paula Perry, Paul McNeice,.David Neshat Others Present: Town Manager Bob LeLacheur, Assistant Town Manager Jean Delios, Administrative Assistant Brendan Sweeney, Chief Appraiser Victor Santaniello, Library Director Amy Lannon, Assistant DPW Director Jane Kinsella, Superintendent of Schools John Doherty, Facilities Director Joe Huggins,.Assistant Facilities Director Kevin Cabuzzi, Police Chief Mark Segalla, Finance Director Sharon Angstrom, School Finance Director Gail Dowd, Fire Chief Greg Burns, Administrative Services Director Matt Kraunelis, Erin Gaffen, Michelle Sanphy, George Katchen, Bill Brown, Bob Holmes, School Committee Members: Chuck Robinson, Elaine Webb, Sherri VandenAkker, Linda Snow Dockser; Selectmen: Barry Berman, Andy Friedmann, and John Halsey Minutes Respectfully Submitted By: Brendan Sweeney Topics of Discussion: Chairman Peter Lydecker called the meeting to order at 7:30 PM. The Board of Selectmen and School Committee were called to order at this time as well. Mr. Lydecker began by summarizing the information on the Proposition 2 1/2 Operational Override question going before the voters on April 3rd. He additionally commended the exemplary work of town employees over the years to work within the constraints of Proposition 2 1/2, but noted that unfortunately due to Reading's primarily residential makeup. the burden has become too much to bear and additional revenue is needed: Bill Brown, 28 Martin Road, then posed a challenge to the composition of the question, specifically to whether or not the ballot question can specify the allocation of school funding. Mr. Friedmann responded to Mr. Brown's claim by noting that the specific allocation of funds on the ballot question is.non.-binding, and still subject to Town Meeting approval, and so the - ballot question is legal. He.added that this concern was previously run by Town Counsel and cleared. Mr. Lydecker then began to give a brief history on the operational override vote, noting that it has been 15 years since the last operational override was passed in Reading. Most peer Page 1 1 communities to Reading have passed at least 1 or 2 operational overrides in that time. Additionally, Mr. Lydecker compared and contrasted this operational override request against the one that failed in the fall of 2016,.noting that the amount requested is significantly lower and is primarily tailored to the essential needs of public safety and the schools. Police Chief Mark Segalla then spoke to the specific needs of his department within this override request; noting the need for 5 more officers and specifically a school resource officer, a crucial positon. Fire Chief Greg Burns illustrated similar staffing needs within his department. Finance Director Sharon Angstrom informed those in attendance of the town's free cash balance, which is currently just under $8.6 million. Mr. Lydecker noted, however, that the town cannot depend on free cash to fund recurring expenses as there is no guarantee that the funding will be available the next year. Additionally, Mr. Berman spoke to the importance of strong reserves, like the town's free cash balance, in securing Reading's strong bond rating (AAA, the best available) and allowing for the town to borrow at a low interest rate. Mr. LeLacheur noted that the tax hit of the override to the average single family home will be $488; and Chief Appraiser Victor Santaniello added that there is a senior tax relief program available to those who qualify. Mr. Lydecker then began to address questions that had been emailed to him over the past couple-of weeks, beginning with one asking whether or not the town could just cut $4.15 million from their budget to avoid the override. . Mr. Lydecker and Ms. Webb both noted how much the town and schools have already had to cut in recent years, and that any further cuts would result in a notable reduction in the level of services provided. Mr. Brown inquired about a vacant piece of property that the town could potentially sell to generate revenue, but Mr. Berman and Mr. Halsey noted that the piece of property in question could not be sold that easily, and is still considered a capital asset of the town. Mr. Lydecker and members of the panel addressed other questions that were sent in prior, including the use of fees in generating revenue, the process behind funding capital projects, and the school specific needs going forward. One woman then spoke, highlighting that she has been a Reading resident since 1977, and noted that she cannot afford to pay for the increase in taxes. Specifically, she spoke to the concern that the town was asking too much of its senior citizens. Mr. Santaniello responded by explaining the details of the senior tax relief program, and urging any who think that . they might qualify to apply for the exemption in the Assessor's office. Additionally, Mr. Santaniello outlined the appraisal process, and noted other tax relief programs offered by the Assessor's Office. Mr. Dockser explained some of the specifics behind the need for an override, such as a 6% rise in non-discretionary spending that composes 40% of the town's budget, and stated that for the town an override is the last resort option. On a motion by Mr. Lydecker, seconded by Mr. Moll the Finance Committee voted 6-0-0 to adjourn the meeting at 9:02 PM. Respectfully Submitted, Secretary Page 12 N FR �c Town of Reading ; Meeting'Minutes i � L RA, -1 CO � Board - Committee - Commission - Council: APR 2- PH 12' 20 Finance Committee Date: 2018-03-07 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell-Street Session: Purpose: Vote Town Meeting Warrant Version: Articles Attendees: Members - Present: Chair Peter Lydecker, Paula Perry, Mark Dockers, Marc Moll, Eric Burkhart, David Neshat, Anne Landry Members - Not Present: Vanessa Alvarado, Paul McNeice Others Present: Town Manager Bob LeLacheur, Administrative Assistant Brendan Sweeney, Finance Director Sharon Angstrom, Deputy Police Chief David Clark, Fire Chief Greg Burns,.Superintendent of Schools John Doherty, Schools Finance Director Gail Dowd, Elaine Webb Minutes Respectfully Submitted By: Brendan Sweeney Topics of Discussion: Chairman Peter Lydecker called the meeting to order at 7:33 PM. Mr. Lydecker set the early topic of conversation to the discussion-of the warrant articles for Town Meeting. Town Manager Bob LeLacheur explained to the finance committee that he will need their written report on each warrant article that they vote on by next week. Town Manager Bob LeLacheur then began to explain the articles that the finance committee would be voting on, starting with Article 4 - Amending the FY18-28 Capital Improvement Program. He outlined notable changes as well as explained the funding specifically for the water, sewer, and storm water enterprise funds. He then moved into Article 5 Amend FY18 Budget, and outlined benefits expenses first, noting how well the town has been able to contain costs through strategy and working with the unions. Mr. LeLacheur outlined other changes as well and explained the reasoning behind them. Still within th.e Article 5 discussion Mr. LeLacheur the turned the focus to public safety, noting how the timing of injuries within the departments has made predicting wages and expenses a difficult task. Ms. Perry inquired as to whether or not the departments can receive temporary help from the departments of nearby towns, and Fire Chief Greg Burns clarified that different equipment as well as union restrictions.makes that unfeasible. He also explained the department's vacancies due to retirement and how he was unable to get the replacement hires into the academy until this past.January. Mr. LeLacheur then noted that the overtime expenses add up, and that adding positions can somewhat pay for itself due to the reduction of overtime expenses. He also identified that this problem is not unique to just Reading. Mr. Dockser noted that the actuals for the fire department almost always add up to the initial budgeted amount as well as the later amount transferred in due Page 1 1 to the overtime expenses. Additionally there was an inquiry about animal control expenses, and Mr. LeLacheur stated that he.is trying to work with nearby communities to increase efficiency and lower costs in this area. Discussion on Article 6 was tabled as there are no prior,year's bills at this time. Mr. LeLacheur then proceeded to explain Articles 7, 8, 9; 10, 11, and 12 to the committee, briefly addressing the reasoning for'each. On Article 13 Schools Finance Director Gail Dowd spoke to the increasing use of digital content in the schools. The schools will be able to receive better pricing for this content if they can negotiate contracts with a length of 5-6 years, rather than the'3 year frame that they are currently bound by. Superintendent of Schools John Doherty added that the content is constantly updated throughout the length of the contract as well. Mr. Moll inquired about whether or not the finance committee needed to weigh in on the matter, and it was explained that it would make sense for them to due to the eventual expenditure of funds once these contracts are negotiated. Mr. LeLacheur then briefly explained Article 16 to the committee and noted that they had already voted on Article 17 - Adopt FY19 Budget during their February 15th meeting. On a motion by Ms. Perry, seconded by Mr. Dockser, the Finance Committee voted 7-0-0 to recommend Article 4 to Town Meeting. On a motion by Mr. Dockser, seconded by Mr. Moll, the Finance Committee voted 7- 0-0 to recommend Article 5 to Town Meeting. On a motion by Ms. Perry, seconded by Mr. Dockser,the Finance Committee voted 7-0-0 to recommend Article 7 to Town Meeting. On a motion by Mr. Dockser, seconded by Ms. Perry, the Finance Committee voted 7-0-0 to recommend Article 8 to Town Meeting. On a motion by Mr. Dockser, seconded by Ms. Perry, the Finance Committee voted 7-0-0 to recommend Article 9 to Town Meeting. On a motion by Ms. Perry, seconded by Ms. Landry, the Finance Committee voted 7-0-0 to recommend Article 10 to Town Meeting. On a motion by Mr. Moll, seconded by'Mr. Burkhart, the Finance Committee voted 7-0-0 to recommend Article 11 to Town Meeting. On a motion by Ms. Perry, seconded by Mr. Dockser, the Finance Committee voted 7-0-0 to recommend Article 12 to Town Meeting. On a motion by Ms. Landry, seconded by Mr. Dockser, the Finance Committee voted 7-0-0 to recommend Article 13 to Town Meeting. On a motion by Mr. Dockser, seconded by Ms. Perry, the Finance Committee voted 7-0-0 to recommend Article 16 to Town Meeting. Mr. Lydecker then moved the conversation to discussion of the Financial Forum to take place on March 28th. Mr. LeLacheur noted that Town Counsel has advised that the meeting not be held in a public building, and Mr. Lydecker brought up the possibility of holding it at the RCN studio. Mr. Dockser noted that he has been in discussion with RCTV about this possibility, and that they should have enough space for the event. The Unitarian Church was also.floated among the committee as a possibility. The committee agreed that RCN was likely the best venue to host the event if available. Mr. Lydecker then outlined that the .format of the event would be questioning from the audience, with the committee providing Page 1 2 answers and information to the community as needed. Mr. Dockser noted that he is looking into ways to bring technology into the fold for this event to help things run more efficiently. Additionally Mr. Dockser noted that as town employees cannot legally engage in the preparation of the meeting that it will be on the finance committee to take charge of organization as well as communication between the various boards to make sure that the meeting happens. Mr. Dockser stated just how important this meeting is, as many in town do not truly understand what the override vote entails. On a motion by Ms. Perry, seconded by Mr. Dockser, the Finance Committee voted to auarove the meeting minutes from February 7 2018 by a vote of 5-0-2 On a motion by Ms. Perry, seconded by Mr. Dockser, the Finance Committee voted to aoorove the meeting minutes from February 15 2018 by a vote of 7-0-0 Mr. Dockser then clarified that the Financial Forum on the 28th will begin at 7:30 PM, and Mr. Lydecker also pointed out that the next finance committee meeting after the forum will be on April 11th On a motion by Ms. Perry, seconded by Mr. Moll the Finance Committee voted 7-0- 0 to adiourn the meeting at 8:40 PM. Respectfully Submitted, Secretary Page i 3