Loading...
HomeMy WebLinkAbout2021-03-03 Finance Committee Minutes rq fkECEVVEL Town of Reading OWN CLERK� , = Meeting Minutes " 2921 M;iis I 1 AM B: 45 Board - committee - Commission - council: Finance Committee Date: 2021-03-03 Time: 7:00 PM Building: Location: Address: Session: Open Session Purpose: Open Session - Remote Meeting Version: Final Attendees: Members - Present: Chair Ed Ross, Nick Boivin, Jeanne Borawski, Eric Burkhart, Marianne Downing, Andrew Mclauchlan, Mark Zarrow Members- Not Present: Vice Chair Dan Dewar Others Present: Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, Library Director Amy Lannon, Library Trustee Chair Nina Pennacchio, Library Trustee Alice Collins, Administrative Services Director Matt Kraunelis, Human Resources Director Sean Donahue, Public Services Director Jean Delios, Economic Development Director Erin Schaeffer, Fire Chief Greg Burns, Police Chief David Clark, Select Board Chair Mark Dockser, Select Board Member Carlo Bacci, DPW Director Jane Kinsella, Assistant DPW Director Chris Cole, Facilities Director Joe Huggins Minutes Respectfully Submitted By: Jacquelyn La Verde Topics of Discussion: This meeting was held remotely via Zoom. Chair Ed Ross called the meeting to order at 7:01 pm and announced that member Sean Jacobs recently resigned due to new family commitments, and Vice Chair Dan Dewar would not be in attendance this evening. Vote to allow deficit spending as needed for the FY21L DPW Snow &ice budge[ Town Accountant Sharon Angstrom requested that the Finance Committee allow deficit spending for snow and ice removal. Though there is about $60,000 remaining in the budget for snow and ice, in the event of another major storm, the Town would need Finance Committee approval for deficit spending. Should any deficit spending be needed, funding would be requested at Town Meeting to cover it. On a motion by Mr. Mclauchlan, and seconded by Mr. Burkhart, the Finance Committee voted 7-0-0 to approve deficit spending for snow and ice removal. Roll call vote: Marianne Downing-Yes, Mark Zarrow-Yes, Jeanne Borawski-Yes, Nick Boivin-Yes, Andrew Mclauchlan-Yes, Ed Ross-Yes. Financial Update: Revenues Ms. Angstrom reviewed the revenue projections for FY22. Revenue from property taxes increases 3.34%, which includes a tax levy increase by 2.5%. Local revenue is increased 6.6%. There is some expected recovery in revenue after the pandemic, but the Town is still Page I 1 budgeting conservatively. State Aid is Flat, as the state says that revenue will not decrease, but it is not expected to increase. There is a reduction in overlay surplus of $50,000. The proposed use of free cash was reduced from $300 million to $2.775 million. FY21 funds will be used for surplus and there were some reductions in insurance premiums. Overview Town Manager Bob LeL.acheur offered his introductory remarks. There are some risks with this budget. The first being related to the use of free cash, but with revenue impacts due to the COVID-19 pandemic, this is the proverbial rainy day. The second, there are no COVID related costs built into this budget. There is still a little over $1 million available in grants that can be used until next December. With cases declining, vaccinations rolling out, and things improving, those funds should be enough unless something drastic happens. Over the next two meetings, the Finance Committee will hear from the eight Town departments, and hear about shared costs between the Town, Schools, and RMLD. There will also be discussions on incurring debt, as upcoming projects, such as building security, Parker Middle School roof replacement, stadium track and turf improvements, and turf 2 replacement, cannot be paid for any other way. Review Town Deoartment FY22 Budoets- Public Library Library Director Amy Lannon reviewed some notable events from the past year. The periodic Strategic Plan was updated and filed with Library Board of Commissioners, and the Mission and Core Values were updated. There was a lot of cooperation and collaboration with other Town departments including; work with the Town Clark's office on the census, and voting; promoting the Mask Up Reading campaign; and working with the Pleasant Street Center on their Dementia Friendly campaign. The proposed Library budget increased 7.1% overall. Wages increased 7.8% due to a new full time Equity and Social Justice Director. Administration is the smallest division when it comes to salary. Hours for the Communications Specialist increase from 20 to 25 hours per week. The hours were transferred from another division and are intended to provide backup. For expenses, there is a larger than usual increase in materials, due to the increase in salaries, in order to stay above the minimum requirement for certification. Based on the size of the population of the town, materials must be at least 13% of the budget. The Library Trustees recommend 14% for materials in case of an increase in community size. For FY22, materials account 13.5% of the budget. A new Equity and Social Justice division is proposed to provide an educational, empowering, and engaging resource. The new director of the division will work to collaborate with Town departments and the community at large on communication and programming. The director will be supported by an advisory board, similar to the Coalition's model, of individuals from the community who want to make the Town better and more inclusive. The Public Services budget decreases due to the hours moved to Administration and Collection Services. The Collection Services budget increases 6.3%, as a support staff member retired, and that position was reworked into a Librarian I position. Administrative Services Administrative Services Director Matt Kraunelis provided an overview of the department, which supports all Town boards and departments in the areas of communication, technology, Human Resources, elections, procurement, insurance, and legal. The Administrative Services budget increased 1.7%. Staffing levels remain the same. The Operations division includes procurement, communication, and postage and equipment maintenance. The budget increases 2.1% in wages and 3.6% in expenses. COVID impacts Page 1 2 on Operations include: staggering staff, increased mailings, increased electronic equipment for remote work, and Safe Voting and Mask Up campaigns. The Technology division provides computer and telecommunications services, network management, and Geographic Information Systems (GIS) services. The budget increases 2.4% in wages and 4.5% in expenses. COVID impacts to Technology include: the use of remote hardware and software, use of Zoom and Zoom webinar for Virtual Town Meeting, and a move to online permitting. The Human Resources division oversees hiring, training, testing, and provides benefits for all Town departments, School Department, and RMLD. There is a 0.1% increase in wages and an 18.1% increase in expenses due to an increase in hiring and training. COVID impacts on Human resources are an increase in tracking federal and state requirements, and employee issues. The Town Manager's Office is hub for the Select Board, Finance Committee, and legal services. The budget increases 3% in wages and 3.4% in expenses. COVID impacts to the Town Manager's Office was an increase in time spent on emergency management issues. The Town Clerk and Elections division is responsible for elections, voter registration, annual census, Town Meeting, licensing, and document storage. The budget decreased due to fewer elections in FY22. There were four elections in FY21, and only one in FY22. Wages decrease 60.8% and expenses decrease 4.8%. COVID impacts for Town Clerk and Elections include safe voting and Virtual Town Meeting. Public Services Assistant Town Manager Jean Delios shared news of changes to Public Health, which is currently a division of Public Services. The FY22 budget proposes that Public Health migrate under Public Safety, and a new Public Health Director to be a ninth department head. The Public Services budget is level funded with a 2.2% increase with an overall $1.6 million budget. There are some slight increases to salaries, mostly or part time hours, and a small increase in administrative expenses for mileage and advertising. The tenets of how the department is able to maintain a level funded budget and continue to provide a level of service are by utilizing regionalization resources, and collaborating with other departments. Erin Schaeffer, Economic Development Director, continuously works with community partners to provide support and resources in the business community. The Town staffs a Regional Affordable Housing Office, which serves Reading, North Reading, Saugus, Wilmington, and most recently Woburn. School Nurses have been a hugely helpful resource with contact tracing and COVID vaccination clinics. Finance Town Accountant Sharon Angstrom reviewed the three divisions of Finance including: General Finance (Treasury and Collections), Assessors, and Accounting (financial reporting, paying bills, etc.). The overall Finance budget increased 3%. All staff is non-union and salaries increase 3.3%, which reflects a 2% step increase and .75% COLA increase. There is a 32-hour per week administrative position in Accounting that is proposed to increase to 37.5 hours per week to facilitate cross-training and backup. Expenses increase 1.1%. Public Safety: Public Health Mr. LeLacheur presented the changes to the Public Safety organization, As proposed, Public Safety would include Fire and EMS, Police, and now Public Health. There is an 8% increase in the Public Health budget, which includes $140,000 for a new Health Director and retention of services for the Interim Health Director to assist with the transition. Currently, there are no other communities in the state that classify Public Health with Public Safety. However, with the significant collaboration needed between Public Health and Page 1 3 Publics Safety throughout the pandemic, and the Coalition located with the Police, it seems logical that this could be the model going forward, and could provide a leadership opportunity for Reading in the Public Health region. There is $85,000 budgeted for Health Inspectors, an increase of 4.6% and $80,000 budgeted for Public Health Nurses, a 99% increase due to COVID. Fire Chief Burns began by noting that the FY21 budget for the Fire department will be $35,000 short for FY21 due to overtime, COVID expenses, shift quarantining due to exposures, and EMS assistance and oversight at COVID vaccination clinics. COVID response costs to date are just under $52,000. For FY22, there are no proposed changed to department staffing. Due to recent retirements, there will be two new Captains and 2 new Lieutenants by the end of the month. Three firefighters have been hired to fill the vacancies, and the department is waiting for the next Civil Service list for the fourth. Due to COVID, the Fire Academy had to adjust their education program, so the new firefighters will not graduate until August. The new firefighters will need to be outfitted for turnout gear and uniforms. The current union contracts expire at the end of the fiscal year, and new contracts are still being negotiated for July ht. Police Chief Clark reviewed changes in procedures to limit interactions within the department to prevent exposures to COVID. The number of calls throughout the pandemic did not decrease, but the types of calls shifted. While there was a decrease in arrests and car accidents, calls for fraud, domestic incidents, and mental health skyrocketed. For FY22, the department remains staffed at 46 people, however there are some role changes proposed. An additional sergeant is requested, as a supervisor is needed to oversee the policy of the newly state mandated Civil Rights Officer. There were two recent retirements. One of the positions was filled by a current dispatcher, so a new dispatcher will need to be hired. With the promotion of Lt. Amendola to Deputy Chief, a sergeant will likely be promoted to Lieutenant, and a patrol officer will likely be promoted to sergeant, leaving another vacancy to be filled. Academy is six months long and due to COVID, class sizes were reduced to 25 from 50, and a new officer cannot start until they complete the academy. Additional funding is requested for more professional development and training, especially training for mental health and related to changes stemming from the Police Reform Bill. Additional training is requested for the dispatchers as well. The biggest increase in the budget has been for The Coalition for Prevention and Support. The program just came off the grant, and fully part of the operating budget. Additional funding is requested for the interface referral service, and a new system called Apricot, which tracks people from their initial call for mental health through to the end of services. Minutes, On a motion by Ms. Downing, and seconded by Ms. Borawski, the Finance Committee voted 7-0-0 to approve the meeting minutes of February 24, 2021 as presented. Roll call vote: Jeanne Borawski-Yes, Nick Boivin-Yes, Marianne Downing-Yes, Mark Zarrow-Yes, Eric Burkhart-Yes, Andrew Mclauchlan-Yes, Ed Ross-Yes. On a motion by Ms. Borawski, and seconded by Mr. Mclauchlan, the Finance Committee voted 7-0-0 to adjourn at 9:02 pm. Roll call vote: Jeanne Borawski-Yes, Nick Boivin-Yes, Marianne-Downing-Yes, Mark Zarrow-Yes, Eric Burkhart-Yes, Andrew Mclauchlan-Yes, Ed Ross-Yes. Page 1 4