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HomeMy WebLinkAbout2019-03-06 Finance Committee Minutes Town of Reading 9 e Meeting Minutes RECEIVEQ TOWN CLERKQ�--- _'''"°"°° READING, MA. Board - committee - commission - Council: Finance Committee 2919 MAR 14 AM 8: 12 Date: 2019-03-06 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Session: Open Session Purpose: Budget Meeting Version: Final Attendees: Members - Present: Chair Eric Burkhart, Vice Chair Mark Dockser, Paula Perry, Karen Herrick, Shawn Brandt, Mark Mall, Anne Landry, Dan Dewar Members- Not Present: Paul McNeice Others Present: Town Manager Bob LeLacheur, Assistant Town Manager Jean Delios, Accountant Sharon Engstrom, Library Director Amy Lannon, Assistant DPW Director Chris Cole, Director of Administrative Services Matt Kraunelis, School Superintendent John Doherty, Chief Financial Officer of Schools Gail Dowd, Deputy Police Chief David Clark, Fire Chief Greg Burns, Assistant Fire Chief Paul Jackson, Director of Facilities Joe Huggins, Assistant Director of Facilities Kevin Cabuzzi, Barry Berman, Nina Pennacchio Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: Chair Eric Burkhart called the meeting to order at 7:32 pm. Town Manager Bob LeLacheur announced the passing of Camille Anthony, former member of the Select Board, and asked for a moment of silence in her honor. Mr. Burkhart stated that this meeting will discuss all Town department budgets except DPW. The next meeting on March 13th will discuss DPW budget, capital, and enterprise funds. The Committee was originally scheduled to vote on warrant articles at a meeting on March 20th. However, he would like to accomplish the vote at the meeting on the 13th. He also noted that he will need to leave this meeting between 9:00 and 9:30 pm, and directed Vice Chair Mark Dockser to run the meeting at that time. Following the December budget meetings, Mr. LeLacheur encouraged the Committee to submit questions ahead of the meeting so that staff could prepare detailed answers for the discussion. He began by addressing the questions relating to the need for a new senior center including: what is driving the conversation, and what is being done to assess the need. A needs assessment was conducted by UMass in 2017 which focused on the current state and future needs of aging in the community. The full report can be found on the Elder and Human Services webpage. A Select Board subcommittee is currently examining the issue and will bring suggestions to the full Board in the spring. The current senior center, originally a fire station built in 1850, is a historic structure, which was renovated in 1993. As the senior population is the fastest growing demographic in the community, the use of the building Is becoming limited. Though the Town is open to remodeling the current site, it Page I 1 is also considering establishing an intergenerational center. Ms. Landry asked whether a regional senior center had been considered, as seniors seem willing to drive elsewhere for the right programming. Ms. Delios stated that several years ago, the Public Services department had engaged with neighboring communities on the prospect of establishing a regional senior center. However, there was no Interest. Seniors may be driving to a center in another community because specific programs are attracting them. Mr. Dockser asked about exploring the use of both public and private space in Town for different activities. Mr. LeLacheur stated that he has had discussions with businesses In Town. However, the private sector is reluctant to cooperate with the Town for insurance reasons. If the Town were to assume liability Insurance, private businesses might be more agreeable. The School department, Permanent Building Committee, and a Select Board subcommittee have all studied available land. Mr. LeLacheur noted that he has considered many possibilities and some ideas do include the use of private land. Ms-. Perry noted that churches may be willing to allow the use of their space. Mr. LeLacheur noted that he has had those discussions and continues to consider those options. The next question asked about the frequency of commercial property assessments, and whether the shared Assessor has adequate time and attention to conduct those assessments. Mr. LeLacheur confirmed that the shared assessor does have sufficient time, performs high quality work, and maintains communication with him. Assessments are performed annually with full cost evaluations every five years. The difference between residential and commercial assessment is that residential property is already at its highest and best use, whereas commercial property must be assessed based on its current use and what kind of cash flow the property is producing, as opposed to market rate for the property. Mr. Brandt asked whether there is a minimum valuation, such as if a property remains vacant. Mr. LeLacheur stated that the property owner can file an abatement, but the property has to be vacant for a very long time. Vacancies still pay a full tax bill based on cash flow prior to vacancy. Mr. Dockser asked if the Town has any tools to help Influence and encourage development of commercial properties. Mr. LeLacheur stated that there are informal conversations, but the Town cannot decide what types of businesses come in. The next question asked what figure Is used to project a sustainable salary Increase for step increases and cost of living adjustments. Mr. LeLacheur stated that a 2.5% to 3.5% Increase Is a good range for an annual raise, and is correlated to the job market. For FY20, the non-union COLA increase was 3.25%, though separate bargaining units may differ. The next question asked the status of hiring a new Economic Development Director. Mr. LeLacheur noted that the position has been posted and applications are being received. The position had been posted previously as a 11h year position. However, there were no satisfactory candidates. The current posting is for a three-year position and he is optimistic that will attract more desirable candidates. Mr. Dockser stated that filling this position is high priority and recommended revamping the job description if the job remains hard to fill. Another question inquired about private space that may be coming up for sale and whether the Town is trying to work with those landowners before they sell. Mr. LeLacheur stated that the Town is not always informed when parcels are coming up for sale. The former Economic Development Director was aware of some of this Information by engaging with the business community. Mr. LeLacheur and Ms. Delios will speak with landowners and renters if they learn that a property or business is closing. However, the Town Is not in the land acquisition business, and commercial real estate prices can be quite high. Mr. Dockser asked how much it would cost to conduct an economic development study/long term development plan and what the benefits would be, and expressed concern for loss of green space. Mr. LeLacheur stated that the Planning Department has a series of economic development plans on its webpage. A Master Plan was done approximately ten years ago. The cost to do another one would be approximately $150,000-$200,000. Ms. Delios noted that there are design guidelines, which includes green space and landscaping, that the CPDC Page 1 2 applies when evaluating projects. Mr. Dockser explained that he would like to see a plan that outlines space and activity needs, and a strategy to meet those future needs while maintaining green space. The next question asked for clarification on the additional clerical position requested for the Town Clerk's Office. Mr. LeLacheur stated that the new full time 37.5-hour clerical position is created by the elimination of an 8-hour part time position, and 9-hour shared position in the Finance Department, resulting in a 20-hour gain for the Clerk's Office. The need for additional clerical support in the Clerk's office is due to the insurgence of public records requests both from residents, and from professionals who gather the information and resell it. Information before it is released must be reviewed carefully for confidential information. Mr. Brandt asked if it was possible to control the process of records requests through policies, and if certain types of information from frequently asked questions could be proactively posted on the website for people to access on their own. Deputy Police Chief David Clark provided an example of lawyers requesting all accident reports from the past 30 days, which need to have confidential information, such as social security and drivers license numbers, redacted before the documents can be released. The Police Department receives over 400 records requests a year. Mr. Dockser asked if the Town is allowed to charge costs for records. Mr. Kraunelis stated that the law requires the Town provide two hours at no cost and $25 per hour If researching and compiling information takes more than two hours. Most records are disseminated electronically, so paper is largely not used. However, if the records are requested on a thumb drive, the Town can charge for the cost of the thumb drive. The next question asked for a review of the legal budget and why the cost is so high. Mr. LeLacheur stated that it Is difficult to summarize due to the confidential nature of the cases, and the unpredictabllity of how much non-routine work Town Counsel may need to provide. The total Town Counsel budget is an estimate and includes Legal and Labor counsel. Approximately 60% of Legal counsel's work is considered routine (such as Town Meeting support and policy review), and 40% non-routine (response to litigation and threats of litigation). There Is little routine work for labor counsel. Mr. Dockser asked if there was an hourly rate based on usage. Mr. LeLacheur stated that It is all hourly, and can vary depending on which attorney is working on the case. The next question asked if more Police personnel is needed to enforce parking at development sites. Mr. LeLacheur noted that this has really only come up with one development site in Town and at this point, there Is no regulation to enforce. The Select Board plans to discuss creating some regulations at their meeting on March 23r4. But until there are regulations in place, the Police cannot issue fines. Mr. Dockser asked if there Is a solution for a hardship situation and whether the goal is consistent enforcement. Mr. LeLacheur stated that all laws are enforced equally. Ms. Landry asked if the court admonished the Town for parking fines. Mr. LeLacheur stated that the fines the court warned about were for development, not for parking. Deputy Chief Clark stated that the courts want fines Issued fairly and consistently across Town. His preference Is to educate someone who Is not conforming with regulations. Usually most problems can be resolved with a conversation, and if not, fines will be Issued. The next question asked when the last review of ambulance fees was performed and when it might be assessed again. Mr. LeLacheur stated that assessment was done approximately 2- 3 years ago. A past Select Board wanted fees to be slightly below average, as It is mostly Reading residents in need of the service. Fire Chief Greg Burns stated that Reading's rate is the medicare rate plus 125%, while some communities are higher. The average ambulance bill is between $1,000 and $1,700. Rates could be raised, however, more of the burden to pay ambulance bills has been shifted to the patients due to the increase In Insurance deductibles. Most of the patients are elderly and on medicare, and medicare only pays a fixed rate for the level of service plus mileage. Because of Reading's location along transportation routes including 95, 93, 28, and 129, it can be difficult to collect from people who received ambulance service who were just passing through Town. Page 13 The next question asked if the Library charges for the use of meeting rooms given the new coordinator position, and whether the process can be automated. Ms. Lannon had provided the fee schedule for meeting rooms. Mr. LeLacheur noted that the coordinator position is not new, rather formalizing the tasks of an existing position. The last question asked if there are underutilized technology modules used by DPW and facilities software and whether there are plans to expand the use of technology. Mr. LeLacheur noted that there is not a lot of software overlap between DPW and Facilities. DPW uses very detailed Fleet maintenance software, the GIS coordinator Is helpful with maps layers, and technology Is often used to track usage and can identify a problem before It develops. Smart meters are In the Capital Plan for three years. Facilities software uses many analytical tools. Overall, technology is used widely throughout all Town departments. { Mr. Brandt asked what the $63,000 Finance Committee budgeted expense is for. Ms. Angstrom answered that it is to pay for the audit. Mr. Brandt asked how the grant funds for RCASA are reflected in the budget given the grant runs through the calendar 3f° quarter. Mr. LeLacheur stated that the grant runs out on September 30' . The full year was added to the budget so that more money will not need to be requested in the following budget cycle. There will be an additional $30,000-$40,000 ! from the grant which will help to offset some costs this year, but the grant will not continue the next year. Mr. Brandt asked how being a consumer of mutual aid impacts the budget and if it is sustainable. Chief Burns stated that Reading Is part of the mutual aid agreement of Fire District 13, as drawn up by the state. It does not cost the Town anything to receive mutual aid, and Reading does not charge neighboring communities. If a patient needs an ambulance, the patient will be billed by the community that responds. Communities of the mutual aid agreement are notified If they are placing too much of a burden on mutual aid resources. Mr. Dockser asked about the Community Priorities $220,000 budget line item. Mr. LeLacheur noted that the line is a place holder as the funds appear elsewhere in the budget under RCASA ($150,000) and School Resource Officer ($70,000). Mr. Dockser noted that the School Department budget is $300,000 above the School Committee approved budget and asked if the $300,000 was taken from the benefits line item. Mr. LeLacheur confirmed that it is. Ms. Dowd noted that the School Committee will vote on the balanced budget following Town Meeting. Mr. Dockser asked what the current OPEB liability is and if the plan is to increase funding over time until pension is fully funded. Ms. Angstrom stated that the current liability Is $64 million and is 60% funded. The auditors approve of the contribution plan. Ms. Landry asked about the surge in domestic violence calls and whether those types of calls require any reallocation of resources. Deputy Chief Clark stated that there was a significant spike in domestic disturbance calls and that the Police Department has more than enough resources to handle them. Typically, three officers will respond to a call. Other communities have seen an increase in domestic disturbance calls as well. Ms. Herrick expressed concern in the $0 increase in road and sidewalk repair, as the roads are in tough shape from winter weather and snow removal. Mr. LeLacheur stated that the sources for funding come from Reading Capital money, and state funds. Mr. Cole noted that each year DPW develops its pavement management plan, which Is funded through a combination of local and Chapter 90 state funds. Mr. LeLacheur noted that a request might be made in April or May for additional funds for road repairs if needed. Mr. Burkhart thanked the Town Manager and the staff who prepared the budget and attended the meeting to answer questions. Mr. LeLacheur asked the Committee for Page 14 feedback on the amount of budget information distributed and budget process of the last two years. Mr. Burkhart noted that he would like to see the dollar change in addition to the percent change on line Items. Mr. Brandt asked for a little more narrative at the department level. Mr. Dockser noted that attendance at Select Board and School Committee budget meetings has been helpful and asked if override funds can be tracked and Identified In future budgets. Mr. Burkhart left the meeting at 9:17 pm. Mr. LeLacheur reviewed the warrant articles the Committee needs to vote on Including: Article 4 for the Capital Improvement Plan; Article 5 for FY19 budget adjustments; Article 7 for disposition of surplus; Article 8 which seeks to change the process for surplus; Article 9 for OPEB allocation; Article 10 to accept the M.G.L. to establish an enterprise fund for cable TV public access; Article 12 for the annual expenditure limit; Article 13 to approve the annual Housing Trust Fund; Article 14 to authorize the Town Manager and School Superintendent to negotiate a contract for backup technology; Article 15 to fund the Turf II project; Article 16 for building security; Article 17 to replace the Auburn Street water tank; Article 18 for Grove Street water main; Article 19 to accept state funds for road repair; Article 20 for the operating budget; Articles 21, 22, and 23 are related to the acquisition of properties which will be addressed at Town Meeting. Mr. Dockser stated that it might be helpful to explain how Capital items are partially or fully funded, what process is required, and how funds are allocated. Mr. LeLacheur explained that if funds are not available to complete a project, it is not done. Other types of Capital requests are for permission to borrow the funds, and the money is not allocated and just not being used. Until Town Meeting votes to rescind the permission, the request remains on the books. Ms. Herrick asked if Article 17 to replace the Water Tank was a Capital project. Mr. LeLacheur stated that it is in the Water Enterprise Capital Plan. Mr. Dockser asked if Article 15 to replace Turf II is segregated because it was expedited. Mr. LeLacheur stated that if it did not need debt to complete, it would have been in the budget as a capital item. But because it is above a certain dollar amount, it is set aside as its own article for Town Meeting approval. On a motion by Ms Perry, seconded by Mr. Brandt. the meeting minutes from February 27 2019 were approved by a vote of 7-0-0. On a motion by Ms Perry, seconded by Mr. Moll. the meeting minutes from October 10, 2018 were approved by a vote of 7-0-0. Mr. Dockser reminded the Committee that the next meeting will be on Wednesday, March 13, 2019, with the goal of completing Town budget discussions and voting on the Town Meeting warrant articles. On a motion by Mr. Moll seconded by Mr. Brandt, the Finance Committee voted 7- 0-0 to adiourn the meeting at 9:540m. Page 1 5