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HomeMy WebLinkAbout2021-08-31 Finance Committee Minutes�N r?"�o IVE TOWNECL8RK Town of Reading 5 Meeting Minutes READING, MA. °.,,�D,.oII 2021 SEP 14 PMT 30 Board - Committee - Commission - Council: Finance Committee Date: 2021-08-31 Time: 7:00 PM Building: Reading Public Library Location: Community Room Address: 64 Middlesex Avenue Session: Forum Purpose: Financial Forum Version: Final Attendees: Members - Present: Chair Ed Ross, Vice Chair Jeanne Borawski, Eric Burkhart, Geoffrey Coram, Marianne Downing, Joseph McDonagh (remote), Jackie McCarthy, Mark Zarrow Members - Not Present: Andrew Mclauchlan Others Present: Staff: Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, Assistant Town Manager Jean Delios, Library Director Amy Lannon, Fire Chief Greg Burns, Police Chief David Clark, School Superintendent Tom Milaschewski, Assistant DPW Director Chris Cole (remote), DPW Director Jane Kinsella (remote), Administrative Services Director Matt Kraunelis, Human Resources Director Sean Donahue (remote) Select Board Members: Chair Karen Herrick, Vice Chair Anne Landry (remote), Secretary Mark Dockser (remote), Carlo Bacci (remote), Chris Haley School Committee Members: Chair Tom Wise (remote), Vice Chair Shawn Brandt (remote), Erin Gaffen (remote), Sarah McLaughlin (remote), Carla Nazzaro, Chuck Robinson Members from the Public: Angela Binda, Bob Holmes; Remote: Nancy Docktor, Martha Moore Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: This meeting was held in-person and remotely via Zoom. Chair Ed Ross called the meeting to order at 7:10 pm. School Committee Chair Tom Wise called the School Committee to order at 7:10 pm Select Board was already in session having started a meeting at 6:00 pm. Mr. Ross began the Financial Forum by Introducing the Committee's goal and Its members, explaining the purpose and agenda of the Forum, and reviewing the upcoming Finance Committee meeting schedule. Mr. LeLacheur explained that the scheduled Special Town Meeting in September would not work for logistic reasons. It may be rescheduled to October, or articles can just wait until November Town Meeting. If an October Town Meeting is scheduled, the warrant would be closed on September 14th, so it would be too Page 1 1 early to vote on warrant articles at the September 13th meeting, but the Committee is welcome to meet that evening to conduct other business if needed. Review Federal Grant Funding; Town Accountant Sharon Angstrom provided an overview of how the American Rescue Plan Act (ARPA) funds are intended to be used. The law provides resources for the COVID Local Fiscal Recovery Fund to local governments to respond to the public health emergency caused by COVID. The funds are available until December 31, 2026. This Is guidance from the federal government on what the funds can be used for. Reading is going to be awarded just under $7.6 million which is a combined municipal allocation specific to Reading, and Middlesex County allocation, which Is reallocated to the communities that make up Middlesex County. Eligible uses for the ARPA grant include: Public Health Spending for COVID mitigation efforts, medical expenses, behavioral health, and certain health and public safety staff; Economic Impacts of the Public Health Emergency, such as economic harm to workers, households, small businesses, affected industries, and the public sector; Loss of Public Sector Revenue payments to use for services based on the lost revenue due to the pandemic; Premium Pay for Essential Workers that can be used to pay the essential workers who were exposed to the greatest health risks; and Water Sewer and Broadband Infrastructure to Improve access to clean drinking water, support wastewater and stormwater infrastructure, and expand access to broadband Internet. The funds cannot be used for a rainy day or reserve fund, or a deposit to the pension fund. The guidelines are Intended to help the Town identify the COVID Impact on the community and use the funds to address those Impacts. Chris Haley asked if the funds could be used for the water tower and to bring wifi to downtown businesses. Ms. Angstrom explained that it is not COVID related, but points toward clean water, and would need to confirm if a portion of it could be covered. The Internet infrastructure Is Intended more for low income families who do not have broadband access. Chuck Robinson asked if the funds cannot be used to replenish rainy day funds, could they be used to pay for things that might otherwise have been paid for using rainy day funds. Ms. Angstrom stated that it might be used to cover lost revenue. Carla Nazzaro encouraged a focus on the senior population. The well-being of senlors could be Improved If nursing facilities had appropriate aids making an appropriate wage. Mark Dockser echoed Ms. Nazzaro's comments and suggested looking at longer term benefits, assessing the needs of facilities and resources for seniors. He also asked if getting lead out of pipes would be considered a potential use of funds. Tom Wise suggested strategic thought of the categories because there are more single income families, who have a reduced ability to pay for full day kindergarten, and many students are behind due to COVID Impacts. Shawn Brandt suggested vocational training might be a potential Investment because people of color had higher rates of unemployment due to COVID. Marianne Downing proposed supplementing low wage workers, such as substitute teachers and paraprofessionals, as they are essential for the school system. Ed Ross asked if there are expenses that are already being Incurred for health response, in particular mental health, that ARPA funds could be used to replenish. Ms. Angstrom explained that the Coalition is already in place to identify substance abuse and mental health issues, and the salary of the mental health professional, or a portion of it, could potentially be covered by the grant. However, they would have to prove that time spent was COVID related. The Town also has to consider that It is not an endless pool of money. All parties echoed the need to assess the needs in the community, who would be tasked with those decisions, and whether to create a subcommittee to explore those needs. Lona Term Financial Planning: Town Manager Bob LeLacheur reviewed the financial health of the Town. He discussed the benefits and cautions of Incurring debt, upcoming projects that are already approved for borrowing, and potential projects for borrowing. He also reviewed the current Capital Plan, Page 1 2 with spending just under 5.5% for the next three years. At the Financial Forum in October, the FY23 budget will be previewed. There will be approximately a 3.25%-3.5% Increase in the operating budget for Schools and the Town based on assumptions. Twelve years ago, the Town conducted its first phase of performance contracting in partnership with Noresco to make energy Improvements to Town buildings. Noresco guaranteed certain savings and would pay the Town if promised savings were not met. Noresco continues to work with the Town to make sure preventative maintenance Is kept up. They have not yet had to make a payment to the Town, and significant amounts of money and energy have been saved over the last ten years. The Town planned to revisit phase two of performance contracting in 15 years, when the debt was paid off, but the opportunity to join Green Communities prompted the Town to review two years sooner. Noresco will be at the Climate Advisory Committee meeting in September and will provide more information. There is a proposed $5 million for Improvements that will save energy and money, and meet a key need to join Green Communities. Because of the work Reading has already done In energy Improvements, it is a little more difficult to meet the 20% energy reduction that Green Communities asks for. The proposed improvements can reach 16% reduction, but as long as the Town has a plan for the other 4%, Noresco and MAPC believe Reading can be approved. The urgency in the project is due to Noresco's ability to guarantee pricing and sourcing through December In the current uncertain and competitive market for materials. If a Town Meeting is held in October, this project could be included on the warrant. If it has to wait until November Town Meeting, it may still be doable, but the timeline will be extremely tight. Another proposed project is for $1.5 million for the Police Station. It would be a two-part project with part one converting unused space In the secure section of the building Into a training/conference room. The second part would be to convert the former conference room in the public part of the building into offices for Public Health, the Coalition, and the Mental Health Professional, which will allow more public access to those resources and privacy for guests seeking those services. The Water Tower project was put out to bid. However, options for replacement, and the cost of those options, will be reassessed, as bids came in much higher than budgeted due to the current price of steel. It may be brought back to Town Meeting to ask for additional funds, or the Town may just wait. When the project was originally proposed a few years ago, It was more cost effective to replace it then to repaint and maintain it. Taking the tank offline will not cripple the water system, as it is a redundant water supply, and the Town now has two connections to MWRA. Mr. LeLacheur recommended listing the project on every Town Meeting warrant for the foreseeable future so it is there and can be done when the time is right, or just left until the next Town Meeting. There may be enough in water reserve funds to cover the cost, but the Town needs to decide how much it is willing to pay for It. Other potential projects include: window safety film, especially for schools; Mass GIS Flyover; Lowell Street repaving from the square to West Street; Strout Avenue sports park and parking area; Memorial Park rock wall repairs; and Birch Meadow Elementary site Improvements. Other projects not currently on the Capital Plan Include the Birch Meadow Master Plan, which is expected to cost between $9 million -$11 million, and larger projects such as Killam Elementary School, that do not yet have a cost associated with them. The Northeast Metropolitan Vocational School in Wakefield plans to build a new school, which is estimated to cost $317 million. It is a complicated system, as the school cannot have a negative vote from any of the towns In their district. However, they have not been transparent. Reading would be assessed $250,000 for 30 years for this project. The voke school is now becoming a financial Issue that it was not before, and Mr. LeLacheur stated that he welcomes discussion on it. There Is no question that vocational schools provide a great education, but there needs to be more transparency in their financial practices. Page 1 3 Mr. LeLacheur finished his presentation with a summary of land use. The Town owns a lot of land and the Committee may want to study the land and its possible uses. School Committee and Select Board have talked about what they need for land. Angela Binda, Recreation Committee member and resident of 10 Orchard Park Drive, spoke about the Birch Meadow Master Plan, the grouping of the projects into critical, sustainable, and visionary, and grouping by cost, and the potential for a phased in approach, and outside funding, for the many features of the project. The top project considered critical, and with moderate cost, was the "central spine" and restrooms. She urged the assembled Boards and Committees to consider adding the "central spine" of the Birch Meadow Master Plan to the Capital Plan. On a motion by Mr. Dockser, and seconded by Mr. Haley, the Select Board voted 5- 0-0 to adjourn at 9:54 pm. Roll call vote: Mark Dockser-Yes, Chris Haley -Yes, Carlo Bacci-Yes, Anne Landry - Yes, Karen Herrick -Yes. On a motion by Ms. Nazzaro, and seconded by Chuck Robinson, the School Committee voted 5-0-0 to adjourn at 9:55 pm, as Ms. McLaughlin had left the meeting. Roll call vote: Carla Nazzaro-Yes, Chuck Robinson -Yes, Erin Gaffen-Yes, Shawn Brandt -Yes, Tom Wise -Yes. Minutes: On a motion by Ms. Borawski, and seconded by Mr. Zarrow, the Finance Committee voted 7-0-1 to approve the meeting minutes of August 18, 2021, with Mr. Burkhart abstaining as he was not present at that meeting. Roll call vote: Joe McDonagh -Yes, Jackie McCarthy -Yes, Jeanne Borawski-Yes, Mark Zarrow-Yes, Geoffrey Coram -Yes, Eric Burkhart -Abstain, Marianne Downing - Yes, Ed Ross -Yes. New Business: The Committee briefly discussed the upcoming meeting schedule. Mr. LeLacheur noted that if there is no new business prior to September 13th, that meeting may not be needed. Prior to the pandemic, the Committee had discussed whether to vote to move money into a stabilization fund. The reason to move funds into a stabilization fund is to reduce the amount of free cash, and spending from the stabilization fund would require a 2/3 vote of Town Meeting. Mr. Ross noted that it would be a worthy discussion and may help ease the upcoming transition for the next Town Manager following Mr. LeLacheur's departure in February. On a motion by Ms. Borawski, and seconded by Ms. Downing, the Finance Committee voted 8-0-0 to adjourn at 10:04 pm. Roll call vote: Joe McDonagh -Yes, Jackie McCarthy -Yes, Jeanne Borawski-Yes, Mark Zarrow-Yes, Geoffrey Coram -Yes, Eric Burkhart -Yes, Marianne Downing -Yes, Ed Ross -Yes. Page 1 4