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HomeMy WebLinkAbout2022-08-17 Finance Committee Packet Town of Reading Meeting Posting with Agenda w , Board - Committee - Commission - Council: Finance Committee Date: 2022-08-17 Time: 7:00 PM Building: Reading Town Hall Location: Select Board Meeting Room Address: 16 Lowell Street Agenda: Purpose: General Business Meeting Called By: Jacquelyn LaVerde on behalf of Chair Ed Ross Notices and agendas are to be posted 48 hours in advance of the meetings excluding Saturdays, Sundays and Legal Holidays. Please keep in mind the Town Clerk's hours of operation and make necessary arrangements to be sure your posting is made in an adequate amount of time. A listing of topics that the chair reasonably anticipates will be discussed at the meeting must be on the agenda. All Meeting Postings must be submitted in typed format; handwritten notices will not be accepted. Topics of Discussion: This meeting will be held in-person at the Town Hall Select Board Meeting Room, remotely via Zoom, and will be streamed live on RCTV. Join Zoom Meeting hltps://us06web.zoom.usZiZ86954957400 Meeting ID: 869 5495 7400 One tap mobile +16465189805„86954957400# US (New York) +16465588656„86954957400# US (New York) Dial by your location +1 646 518 9805 US (New York) +1 646 558 8656 US (New York) Meeting ID: 869 5495 7400 Find your local number: https://us06web.zoom.us/u/kKncn9caz AGENDA: 1. Liaison Reports 2. FY23 meeting schedule 3. Communication Policy(Email, Website) 4. Discuss Financial Forum Agenda 5. Discuss Affordable Housing Trust Fund -from SB 7/19 6. Review Preliminary FY2024 Capital Plan 7. Review FY2024 Budget Process 8. Discuss Current and Expiring Grants 9. Approve Meeting Minutes:July 27, 2022 This Agenda has been prepared in advance and represents a listing of topics that the chair reasonably anticipates will be discussed at the meeting. However the agenda does not necessarily include all matters which may be taken up at this meeting. Page 1 1 FINCOM FY22 Meeting Schedule (All meetings are shown in bold and begin at 7:00pm at the Town Hall conference room using hybrid/zoom unless noted) 2021 August 18 Regular Meeting (zoom only) August 31 Financial Forum I *Public Library/zoom September 13 Regular Meeting September 14 SB close Warrant for October& November Town Meetings September 30 Regular Meeting (vote Oct& Nov TM Articles) October 18 (Mon) Special Town Meeting October 20 Financial Forum II*Public Library/zoom November 4 Regular Meeting (if needed) November 8(Mon)-15(Mon)-18(Thurs)-22(Mon) Subsequent Town Meeting December 1 Regular Meeting (if needed) December 8 Town FY23 Budget meeting with Select Board December 14 Town FY23 Budget meeting with Select Board December 15 Town FY23 Budget meeting with Select Board December 16 Schools FY23 Budget meeting with School Committee 2022 January 6 School Committee FY23 Budget meeting January 13 School Committee FY23 Budget meeting January 20 School Committee FY23 Budget meeting January 27 School Committee FY23 Budget meeting (vote) January 31 School budget to Town Manager per Charter February 28 Entire balanced budget to FINCOMper Charter March I SB deadline to close Warrant for April Town Meeting (planned in Feb) March 2 FINCOM FY23 Budget meeting (Schools) March 9 FINCOM FY23 Budget meeting (Town) March 15 FINCOM FY23 Budget meeting (vote TM Articles) March 23 FINCOM FY23 Budget meeting (if needed) April S Local elections April 25 Annual Town Meeting begins June 29 Regular Year-end Meeting (if needed) HOME(/) EMPLOYMENT OPPORTUNITIES(/EMPLOYMENTOPPORTUNITIES) CALENDAR(/CALENDAR-DATE) FOR PRESS(/NEWS EVENTS/PRESS RELEASES) CONTACT(/C'ONTAC'T) s,,a,chus e s Sc ;. About Us(/about) air i IIII° , Girard lii r i II ilei lber Working With Us Sean Cronin is the Senior Deputy Commissioner for Local (/WOrking_Wlth U Services at the Department of Revenue and serves as the s/Getting_Started) Secretary of Administration&Finance's designee. Building With Us Prior to starting this role in 2015,Sean spent 17 years working in (/building) Brookline,the last 12 as the Deputy Town Administrator.During his tenure he helped develop fiscal policy that allowed Brookline to retain its AAA credit rating and better address both their OPEB Policies,Forms& Guidelines liabilities and outstanding pension liabilities.He also led capital (/guidelines) improvement programs to deal with aging infrastructure and invest in programs that yield long-term budget relief such as energy t , efficiency and new IT systems. Our Programs& Initiatives He holds a bachelor's degree in government from Wesleyan (/pro rams g ) , University and a master's degree in public administration from the Maxwell School at Syracuse University. Your School (/district-map/all) News&Events (/news_events) Public Records Requests (/public_records_r eq u ests) Employment Opportunities (/employmentopp ortunities) ;I` A48,EA d,llAps//S `d h wu11 utu us Enrollment Projection (https:llsystems.massschoolbuildings.org) Maintenance and Capital Planning (https:llsystems.massschoolbuildings.org) OPM Report (haps://systems.massschoolbuildings.org) Pro-Pay Reimbursements (https:llsystems.massschoolbuildings.org) NT EN T (/�uull^(un^,,ja SII w) ik(Ii.J, on Facebook y ll]Itpi ll,vvvvq ( uc II000�I,;;, to/ll iva�C'/n �i 11 Draft Special Legislation An act authorizing the Town ofReading to dissolve its Affordable Housing Trust Fund Whereas, Chapter 140 of the Acts of 2001 authorized the Town of Reading to establish an Affordable Housing Trust Fund; Whereas, in 2005, the legislature enacted Section 55C of Chapter 44 of the Massachusetts General Laws (the "Municipal Affordable Housing Trust Fund Law"), which empowers municipalities to establish a local affordable housing trust, managed by a Board of Trustees; Whereas, the Municipal Affordable Housing Trust Fund Law presents significant and important opportunities for the creation and maintenance of affordable housing stock; Whereas, Reading Town Meeting voted to accept the Municipal Affordable Housing Trust Fund Law and adopt a bylaw establishing Board of Trustees at ; And whereas, the Town of Reading hereby seeks to dissolve its existing affordable housing trust created by Chapter 140 of the Acts of 2001 and transfer all funds to the trust fund established pursuant to the Municipal Affordable Housing Trust Fund Law. SECTION 1. Chapter 140 of the Acts of 2001, An Act Authorizing the Town of Reading to Establish an Affordable Housing Trust Fund, is hereby repealed. SECTION 2. All properties and funds held by the Reading Affordable Housing Trust previously established under Chapter 140 of the Acts of 2001 is hereby transferred to the Reading Affordable Housing Trust established pursuant to G.L. c. 44, s. 55C and shall only be managed, disposed of, or expended in accordance with said Section 55C. SECTION 3. This act shall take effect upon the posting or publication, by the Town Clerk in accordance with G.L. c. 40, s. 32, an amendment to the Reading General Bylaws to establish an affordable housing trust for the Town of Reading under the authority of G.L. c. 44, s. 55C. Town Meeting Action Town Meeting will need to (1) authorize the Select Board to file the Special Legislation outlined above; (2) accept G.L. c.44, s.SSC; (3) adopt an AHTF bylaw (see below); and(4) authorize the Board of Trustees to file a declaration and certification of trust with the registry, which it may amend on its own initiative. Here is the language of the acceptance of G.L. c.44, s.SSC. Move to accept the provisions of Chapter 44, Section 55C of the Massachusetts General Laws to establish a trust to be known as the Reading Affordable Housing Trust Fund, whose purpose shall be to provide for the creation and preservation of housing that is affordable in the Town of Reading for the benefit of low and moderate income households. Draft Bylaw Language READING AFFORDABLE HOUSING TRUST FUND BYLAW XX.1 Purpose. Pursuant to the authority of Chapter 44, Section 55C of the Massachusetts General Laws, there is hereby created a local municipal affordable housing trust fund to be known as the Reading Affordable Housing Trust Fund, hereinafter the "Trust", whose purpose shall be to provide for the creation and preservation of housing that is affordable in the Town of Reading for the benefit of low and moderate income households. XX.2 Membership. There shall be a Board of Trustees of the Reading Affordable Housing Trust Fund, hereinafter the "Board of Trustees", which shall include no less than 5 and no more than 7 voting members. The voting members shall include a member of the Select Board and four members appointed by the Select Board, each of whom, to the extent possible, shall have a background or interest in affordable housing, and in finance, law, real estate, or real estate development. XX.3 Term. l"��a�1ru1��.�1��ru�➢� u � "���,�°1ua� u . .�. ➢. y. 1 he Select Board shall appoint the Trustees for a term of two years, except that three of the initial trustee appointments shall be for a term of one year, provided said Trustees may be re-appointed at the discretion of the Select Board. Vacancies shall be filled by the Select Board for the remainder of the unexpired term. Any member of the Board of Trustees may be removed by the Select Board for cause after the opportunity of a hearing. XX.4 Declaration of Trust. The Board of Trustees is hereby authorized to execute a Declaration of Trust and Certificate of Trust for the Reading Affordable Housing Trust to be recorded with the Middlesex Registry of Deeds and filed with the Middlesex Registry District of the Land Court. XX.5 General Duties. The Board of Trustees shall have the following powers, all of which shall be carried on in furtherance of the purposes set forth in G.L. c.44, §55C, except ffi,,o �. iu E�'1V ?La:w ask"ffi 4-h-��+phi- ll!�eo-r�.p..14KI91-�-t:�hj+fi.�.tH..ir��i:+ 1 u�'... a uP �1��a � � u��.. a� �1���n Select Board ...to borrow money„ 4+a mortgage or pledge trust assets,,,.,; or 4+a purchase, accept, sell, lease, exchange, transfer, abandon, or convey any interest in real (2r; personal .y u a��r �� fflNi?di ffi:JWo-t.'Iy:: a. To accept and receive real property, personal property or money, by gift, grant, contribution, devise or transfer from any person, firm, corporation or other public or private entity, including but not limited to money, grants of funds or other property tendered to the Trust in connection with any by-law or any general or special law or any other source; b. To purchase and retain real or personal property, including without restriction investments that yield a high rate of income or no income; c. To sell, lease, exchange, transfer, or convey any personal, mixed, or real property at public auction or by private contract for such consideration and on such terms as to credit or otherwise, and to make such contracts and enter into such undertaking relative to Trust property as the Board of Trustees deems advisable notwithstanding the length of any such lease or contract; d. To execute, acknowledge, and deliver deeds, assignments, transfers, pledges, leases, covenants, contracts, promissory notes, releases, grant agreements, and other instruments sealed or unsealed, necessary, proper, or incident to any transaction in which the Board of Trustees engages for the accomplishment of the purposes of the Trust; e. To employ advisors and agents, such as accountants, appraisers, and lawyers as the Board of Trustees deems necessary; f To pay reasonable compensation and expenses to all advisors and agents and to apportion such compensation between income and principal as the Board of Trustees deems advisable; g. To apportion receipts and charges between incomes and principal as the Board of Trustees deems advisable, to amortize premiums and establish sinking funds for such purpose, and to create reserves for depreciation depletion or otherwise; h. To participate in any reorganization, recapitalization, merger, or similar transactions; and to give proxies or powers of attorney with or without power of substitution to vote any securities or certificates of interest; and to consent to any contract, lease, mortgage, purchase or sale of property, by or between any corporation and any other corporation or person; i. To deposit any security with any protective reorganization committee, and to delegate to such committee such powers and authority with relation thereto as the Board of Trustees may deem proper and to pay, out of Trust property, such portion of expenses and compensation of such committee as the Board of Trustees may deem necessary and appropriate; j. To carry property for accounting purposes other than acquisition date values; k. To borrow money on such terms and conditions and from such sources as the Board of Trustees deems advisable, to mortgage and pledge Trust assets as collateral; any debt incurred by the Board of Trustees shall not constitute a pledge of the full faith and credit of the Town of Reading and all documents related to any debt shall contain a statement that the holder of any such debt shall have no recourse against the Town of Reading with an acknowledgement of said statement by the holder; 1. To make distributions or divisions of principal in kind; m. To comprise, attribute, defend, enforce, release, settle, or otherwise adjust claims in favor or against the Trust, including claims for taxes, and to accept any property, either in total or partial satisfaction of any indebtedness or other obligation, and subject to the provisions of G.L. c. 44, § 55C, to continue to hold the same for such period of time as the Board of Trustees may deem appropriate; n. To manage or improve real property; and to abandon any property which the Board of Trustees determines not to be worth retaining; To hold all or part of the Trust property uninvested for such purposes and for such time as the Board of Trustees may deem appropriate; and o. To make recommendations on proposals to Town Meeting, subject to approval by the Select Board, when such proposals create or support affordable housing for low- and moderate-income households. p. To extend the time for payment of any obligation to the Trust. XX.6 Custodian of funds. The Town of Reading Treasurer shall be the custodian of the funds of the Trust. Any income or proceeds received from the investment of funds shall be credited to and become part of the fund. The Board of Trustees shall provide for an annual audit of the books and records of the Trust. Such audit shall be performed by an independent auditor in accordance with accepted accounting practices. Costs associated with the annual audit shall be borne by the Trust. Upon receipt of the audit by the Board of Trustees, a copy shall be provided forthwith to the Select Board. .nrienidluiuruient to Section .3.1..5 Amend Se.�.1a � . . �. ..a �.. own . ,n(m By � ✓. r &�� �..aqu..a 1 u�;, .rayW...��nd u1&�: u�.uzed. as IoHows: m� m i mei .:�C�n,�•�ur� m:�i" �� i"i��°�^; The lean ani a;flii aii �� iP.member a of ��(2a 'mls�.,.(Muu��,r OI es�....�'qnd: ,ouuurne,au�.e on hP � in 1 u��, �,��� of" ��nd the 'ffl eXpire on hPne310 in ffie 1N,M ia�ii.a��� �u���,,... ��u y �)a, ( o �'�";vl ihu :r u ���� aur;➢„ 1e rms of 1 ue members ani 1h( V � ��i➢u�u .I1ja P�un,u�� �P��ia�uul 2„ /t ' &'64din'R: rust Fund i(��u i u �. t�I'O.. ^ �)�r"�., ) \ \ � \ \ � � \ \ � \ \ \ \ \ \ m2M2 - - - - - - - - ( \ \ � 12 / \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ � \ E - - - - - - - - - - - ( ( \ \ \ m. § / - E / - - - - ! - - - - - - - : , ,- ® : : R , _ o ! e : ; ! : f - - - - - - - - - / GG / / / / . / . . ) / \ \ \ \ / \ \ \ \ \ . . . . . . . . . . § / ¥ ¥ 6 + \ \ k ; ) { ) \ Ez ° ( ! _ � ) \ )neer - - - - / } / » / ` , \ o c4 16 m c4 c4 ! /\ - - - ] { ; / E - - - E . 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LL EE a N N o O E N � LL M N LL N � O N � N � � O � N LL N W N N d � y N O a " N E y o y o � � r m o w o oo 0 o p 0 IL� N ' 1 E;'%u '20'%u '625'%u h 00'%u 3 00'%u Town of Reading Budget Summary One Yr One Yr One Yr One Yr One Yr 8/11/22 2:35 PM Final Chng Final Chng Projected Chng Projected Chng Projected Chng FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 Revenues - Total Property Taxes 78,080,852 3.6% 81,577,120 4.5% 84,387,451 3.4% 87,257,353 3.4% 88,890,222 1.9% Total Other Local Revenues 7,185,000 8.2% 6,995,000 2.6% 7,848,000 12.2% 8,180,500 4.2% 8,441,000 3.2% Total Intergov't Revenues 14,539,863 0.0% 14,777,471 1.6% 15,165,883 2.6% 15,545,030 2.5% 15,933,656 2.5% Total Transfers&Available 4,017,513 -1.1% 3,882,684 -3.4% 4,150,205 6.9% 4,259,288 2.6% 4,294,089 0.8% Revs before Free Cash $103,823,228 2.01% $107,232,275 3.28% $111,551,539 4.03% $115,242,171 3.31% $117,558,966 2.01% Free Cash 2,082,000 108.2% 2,640,052 26.8% 2,275,000 -13.8% 2,225,000 -2.2% 2,301,713 3.4% Extra for Capital 0 0.0% 760,000 0.0% 475,000 -37.5% 525,000 10.5% 448,287 -100% Net Available Revenues $105,905,228 3.04% $110,632,327 4.46% $114,301,539 3.32% $117,992,171 3.23% $120,308,966 1.96% CCCII II C 'te CS'ts Benefits 18,416,670 1.5% 19,088,534 3.6% 19,837,500 3.9% 20,735,438 4.5% 21,676,894 4.5% Capital 2,304,500 -36.1% 3,955,000 71.6% 2,781,000 -29.7% 3,029,000 8.9% 2,736,500 -9.7% Debt(inside levy) 2,145,415 39.9% 1,970,801 -8.1% 3,250,959 65.0% 3,098,601 -4.7% 3,316,619 7.0% Debt excluded 2,848,182 -1.9% 2,792,043 -2.0% 2,732,582 -2.1% 2,686,112 -1.7% 1,279,700 -52.4% Energy 2,000,000 -4.5% 2,010,550 0.5% 2,045,000 1.7% 2,100,000 2.7% 2,145,000 2.1% Financial 1,030,000 13.7% 1,010,000 -1.9% 1,055,000 4.5% 1,075,000 1.9% 1,090,000 1.4% Education-Out of district 5,325,000 5.5% 5,446,250 2.3% 5,580,000 2.5% 5,803,200 4.0% 6,035,328 4.0% Education-Vocational 550,000 21.6% 788,000 43.3% 870,000 10.4% 904,800 4.0% 1,140,992 26.1% Miscellaneous 3,539,927 5.3% 3,340,650 -5.6% 3,430,054 2.7% 3,508,805 2.3% 3,589,822 2.3% Community Priorities 931,803 0.0% 150,000 0.0% 0 0.0% 150,000 0.0% 150,000 0.0% Accommodated Costs $ 39,091,497 2.17% $ 40,551,827 3.74% $ 41,582,095 2.54% $ 43,090,956 3.63% $ 43,160,855 0.16% Net Accommodated Costs $ 39,091,497 2.17% $ 40,551,827 3.74% $ 41,582,095 2.54% $ 43,090,956 3.63% $ 43,160,855 0.16% $ 112 $ 303 $ 172 0lwtllra''If1108 Costs Municipal Gov't Operating 22,928,427 3.46% 23,888,374 3.20% 25,262,939 3.85% 26,080,567 3.00% 26,862,984 3.00% adjustments 219,222 438,000 58,000 adjustments EF+RF 1,115,046 3.15% 1,150,727 3.20% 1,195,030 3.85% 1,230,881 3.00% 1,267,808 3.00% TOTAL Muni Govt OPER 24,262,695 4.39% 25,477,101 5.01% 26,515,969 4.08% 27,311,449 3.00% 28,130,792 3.00% School Operating 42,805,463 2.77% 44,249,748 3.20% 45,953,363 3.85% 47,589,464 3.00% 49,017,148 3.00% adjustments 72,200 250,000 TOTAL School OPER 42,877,663 2.95% 44,249,748 3.20% 46,203,363 4.41% 47,589,464 3.00% 49,017,148 3.00% Operating Budgets 1$ 67,140,357 3.46%1$ 69,726,849 3.85% $ 72,719,333 4.29% $ 74,900,912 3.00% $ 77,147,940 3.00% Municipal Gov't Operating 36.1% 36.5% 36.5% 36.5% 36.5% School Operating 63.9% 63.5% 63.5% 63.5% 63.5% TOTAL SPENDING $106,231,854 2.98% $110,278,676 3.81% $114,301,428 3.65% $117,991,868 3.23% $120,308,795 1.96% Muni Govt OPER $ 24,262,695 4.39% $ 25,477,101 5.01% $ 26,515,969 4.08% $ 27,311,449 3.00% $ 28,130,792 3.00% Muni GovtACCOM $ 5,534,550 -0.95% $ 5,401,050 -2.41% $ 5,550,000 2.76% $ 5,684,250 2.42% $ 5,805,278 2.13% Muni Govt TOTAL $ 29,797,245 3.36% $ 30,878,151 3.63% $ 32,065,969 3.85% $ 32,995,699 2.90% $ 33,936,070 2.85% School OPER $ 42,877,663 2.95% $ 44,249,748 3.20% $ 46,203,363 4.41% $ 47,589,464 3.00% $ 49,017,148 3.00% School ACCOM $ 5,325,000 4.07% $ 5,446,250 2.28% $ 5,580,000 2.46% $ 5,803,200 4.00% $ 6,035,328 4.00% School TOTAL $ 48,202,663 3.07% $ 49,695,998 3.10%1$ 51,783,363 4.20%1$ 53,392,664 3.11%1$ 55,052,476 3.11% Town of Reading One Yr One Yr One Yr One Yr One Yr Revenues-Details Projected Chng Projected Chng Projected Chng Projected Chng Projected Chng 8/11/22 2:35 PM FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 Property Taxes Tax levy(within levy limit) 75,014,685 3.3% 77,955,852 3.9% 81,558,766 4.6% 84,520,235 3.6% 87,530,116 3.6% New Growth 967,303 63.2% $ 1,613,676 66.8% $ 900,000 -44.2% 875,000 -2.8% 925,000 5.7% Tax levy(debt exclusion) 2,848,182 -1.9% 2,791,882 -2.0% 2,732,582 -2.1% 2,686,112 -1.7% 1,279,700 -52.4% Abatements and exemptions 749,318 2.5% 784,290 4.7% 803,897 2.5% 823,995 2.5% 844,595 2.5% Total Pro a Taxes 1 78,080,852 3.6%1 81,577,120 4.5%1 84,387,451 3.4%1 87,257,353 3.4%1 88,890,222 1.9% Other Local Revenues Motor Vehicle Excise 3,700,000 -7.5% 3,750,000 1.4% $ 4,000,000 6.7% 4,150,000 3.8% 4,250,000 2.4% Meals Tax 250,000 -37.5% 365,000 46.0% $ 440,000 20.5% 450,500 2.4% 485,500 7.8% Penalties/interest on taxes 160,000 -22.0% 200,000 25.0% $ 250,000 25.0% 265,000 6.0% 275,000 3.8% Payments in lieu of taxes 385,000 2.7% 375,000 -2.6% $ 418,000 11.5% 425,000 1.7% 430,000 1.2% Charges for services 2,000,000 2.6% 1,870,000 -6.5% $ 2,150,000 15.0% 2,270,000 5.6% 2,350,000 3.5% Licenses&permits 140,000 -17.6% 125,000 -10.7% $ 165,000 32.0% 170,000 3.0% 175,500 3.2% Fines 75,000 -25.0% 30,000 -60.0% $ 80,000 166.7% 90,000 12.5% 100,000 11.1% Interest Earnings 375,000 -16.7% 200,000 -46.7% $ 215,000 7.5% 230,000 7.0% 240,000 4.3% Medicaid Reimbursement 1 100,000 -42.9%1 80,000 -20.0%1$ 130,000 62.5%1 130,000 0.0%1 135,000 3.8% Total Other Local Revenue4 7,185,000 -8.2%1 6,995,000 -2.6%1 7,848,000 12.2%1 8,180,500 4.2%1 8,441,000 3.2% Intergovernmental Revenue State Aid 14,539,863 0.0% $ 14,777,471 1.6% 15,165,883 2.6% 15,545,030 2.5% 15,933,656 2.5% Total Inter ov't Revenues 14,539,863 0.0%1 14,777,471 1.6% 15,165,883 2.6% 15,545,030 2.5% 15,933,656 2.5% Operating Transfers and Available Funds Cemetery sale of lots 25,000 0.0% 25,000 0.0% 25,000 0.0% 25,000 0.0% 25,000 0.0% RMLD payment 2,468,728 0.0% 2,300,000 -6.8% 2,500,000 8.7% 2,550,000 2.0% 2,550,000 0.0% Enterprise Fund Support 1,115,046 3.2% 1,150,727 3.2% 1,195,030 3.9% 1,230,881 3.0% 1,267,808 3.0% School Revolving Funds 50,000 -50.0% 100,000 100% 100,000 0.0% 100,000 0.0% 100,000 0.0% Premiums Reserve for Debt 8,739 -17% 6,957 -20% 5,175 -26% 3,407 -34% 1,281 -62% Overlay surplus 1 350,000 -6.7%1 300,000 -14.3%1 325,000 8.3%1 350,000 7.7%1 350,000 0.0% Total Transfers&Available 4,017,513 -1.1%1 3,882,684 -3.4%1 4,150,205 6.9%1 4,259,288 2.6%1 4,294,089 0.8% OPERATING REVENUES 103,823,228 2.01% 107,232,275 3.28% 111,551,539 4.03% 115,242,171 3.31% 117,558,966 2.01% Free Cash 2,082,000 108.2% 3,400,052 63.3% 2,750,000 -19.1% 2,750,000 0.0% 2,750,000 0.0% TOTAL REVENUES 105,905,228 3.04% 110,632,327 4.46% 114,301,539 3.32% 117,992,171 3.23% 120,308,966 1.96% Town of Reading Acc.Costs-Summary One Yr One Yr One Yr One Yr One Yr 8/11/22 2:35 PM Projected Chng Projected Chng Projected Chng Projected Chng Projected Chng FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 Benefits 18,416,670 1.5% 19,088,534 3.6% 19,837,500 3.9% 20,735,438 4.5% 21,676,894 4.5% Capital 2,304,500 3,955,000 2,781,000 3,029,000 2,736,500 Debt(inside levy) 2,145,415 -13.4% 1,970,801 33.2% 3,250,959 1.8% 3,098,601 1.6% 3,316,619 -1.2% Debt excluded 2,848,182 2,791,882 2,732,582 2,686,112 1,279,700 Energy 2,000,000 -4.5% 2,010,550 0.5% 2,045,000 1.7% 2,100,000 2.7% 2,145,000 2.1% Financial 1,030,000 13.7% 1,010,000 -1.9% 1,055,000 4.5% 1,075,000 1.9% 1,090,000 1.4% Education-Out of district 5,325,000 5.5% 5,446,250 2.3% 5,580,000 2.5% 5,803,200 4.0% 6,035,328 4.0% Education-Vocational 550,000 21.6% 788,000 43.3% 870,000 10.4% 904,800 4.0% 1,140,992 26.1% Miscellaneous 3,539,927 5.3% 3,340,650 -5.6% 3,430,054 2.7% 3,508,805 2.3% 3,589,822 2.3% Community Priorities 931,803 $ 150,000 $ 150,000 $ 150,000 TOTAL Accomm.COSTS $ 39,091,497 2.2%1$ 40,551,666 3.7% $ 41,582,095 2.5% $ 43,090,956 3.6% $ 43,160,855 0.2% Town of Reading One Yr One Yr One Yr One Yr One Yr Acc.Costs-Details Projected Chng Projected Chng Projected Chng Projected Chng Projected Chng FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 Contributory Retirement 5,228,670 25.0% 5,568,534 6.5% $ 5,785,500 3.9% 6,161,558 6.5% 6,562,059 6.5% OBRA fees&OPEB study 40,000 -20.0% 40,000 0.0% $ 40,000 0.0% 40,000 0.0% 40,000 0.0% OPEB contribution 100,000 -82.6% 100,000 0% $ 500,000 400.0% 500,000 0.0% 500,000 0.0% Workers Compensation 352,000 0.6% 375,000 6.5% $ 385,000 2.7% 395,000 2.6% 405,000 2.5% Unemployment Benefits 95,000 26.7% 75,000 -21.1% $ 75,000 0.0% 80,000 6.7% 85,000 6.3% Group Health/Life Ins. 11,486,000 -2.5% 11,800,000 2.7% $ 11,922,000 1.0% 12,398,880 4.0% 12,894,835 4.0% Medicare/Social Security 987,000 -1.3% 1,000,000 1.3% $ 1,000,000 0.0% 1,025,000 2.5% 1,050,000 2.4% Police/Fire Indemnification 1 128,000 6.7%1 130,000 1.6% $ 130,000 0.0% 135,000 3.8% 140,000 3.7% Acc.Costs-Benefits 1$ 18,416,670 1.5% $ 19,088,534 3.6% $ 19,837,500 3.9% $ 20,735,438 4.5% $ 21,676,894 4.5% ACC.Costs-Capital 1$ 2,304,500 -36.1%1$ 3,955,000 71.6%1$ 2,781,000 -29.7%1$ 3,029,000 8.9%1$ 2,936,000 -3.1% Debt Service-Principal 4,155,000 15.4% 4,085,000 -1.7% 4,919,000 20.4% 5,020,000 2.1% 3,800,000 -24.3% DebtService-Interest 829,858 0.6% 670,726 -19.2% 1,059,366 57.9% 761,306 -28.1% 795,038 4.4% Excluded debt (2 8 8 182) -1.9% (2 r91 882) -2.0% (2(32 582) -2.1% (2,686 112) -1.7% (1 2N NO) -52.4% Total Included Debt $ 2,136,676 40.3% $ 1,963,844 -8.1% $ 3,245,784 65.3% $ 3,095,194 -4.6% $ 3,315,338 7.1% Premiums for generalfund $ 8,739 -17% $ 6,957 -20% $ 5,175 -26% $ 3,407 -34% $ 1,281 -62% ACC.Costs-Debt $ 4,993,597 12.6% $ 4,762,683 -4.6% $ 5,983,541 25.6% $ 5,784,713 -3.3% $ 4,596,319 -20.5% Street Lighting(DPW) 145,000 -12.0% 150,000 3.4% $ 130,000 -13.3% 135,000 3.8% 140,000 3.7% Electricty(FacCORE) 875,000 -2.7% 873,000 -0.2% $ 890,000 1.9% 915,000 2.8% 930,000 1.6% Natl Gas(FacCORE) 635,000 -5.1% 635,000 0.0% $ 650,000 2.4% 665,000 2.3% 680,000 2.3% Water/Sewer(FacCORE) 180,000 4.8% 187,550 4.2% $ 200,000 6.6% 205,000 2.5% 210,000 2.4% Fuel-vehicles DPW 165,000 -13.2%1 165,000 0.0% $ 175,000 6.1%1 180,000 2.9%1 185,000 2.8% Acc.Costs-Energy 1$ 2,000,000 -4.5%1$ 2,010,550 0.5%1$ 2,045,000 1.7%1$ 2,100,000 2.7%1$ 2,145,000 2.1% Casualty Ins(AD SVC) 560,000 14.1% 660,000 17.9% $ 730,000 10.6% 750,000 2.7% 765,000 2.0% Vets Assistance(PUB SVC) 170,000 -20.9% 150,000 -11.8% $ 125,000 -16.7% $ 125,000 0.0% $ 125,000 0.0% FINCOM Reserve Fund 300,000 50.0% 200,000 -33.3% $ 200,000 0.0% 200,000 0.0% 200,000 0.0% Acc.Costs-Financial $ 1,030,000 13.7% $ 1,010,000 -1.9% $ 1,055,000 4.5% $ 1,075,000 1.9% $ 1,090,000 1.4% SPED transp OOD(Sch) 1,325,000 10.4% 1,391,250 5.0% $ 1,035,000 -25.6% 1,076,400 4.0% 1,119,456 4.0% SPED tuition OOD(Sch) 5,100,000 7.4% 5,355,000 5.0% $ 5,575,000 4.1% 5,798,000 4.0% 6,029,920 4.0% SPED contingency $ 470,000 100.0% 488,800 4.0% 508,352 4.0% SPED offsets OOD Sch 1,100,000 21.8% 1,300,000 18.2% $ 1,500,000 15.4% 1,560,000 4.0% 1,622,400 4.0% ACC.Costs-OOD SPED $ 5,325,000 5.5% $ 5,446,250 2.3% $ 5,580,000 2.5% $ 5,803,200 4.0% $ 6,035,328 4.0% Voc School-NERMVS 455,000 32.6% 572,000 25.7% $ 640,000 11.9% 665,600 4.0% 892,224 34.0% Voc School-Minute Man 35,000 -21.7% 46,000 31.4% $ 50,000 8.7% 52,000 4.0% 54,080 4.0% Voc School-Essex North 60,000 -6.9% 170,000 183.3% $ 180,000 5.9% 187,200 4.0% 194,688 4.0% Acc.Costs-Vocational $ 550,000 21.6% $ 788,000 43.3% $ 870,000 10.4% $ 904,800 4.0% $ 1,140,992 26.1% Rubbish(DPW) 1,850,000 9.2% 1,905,500 3.0% $ 1,975,000 3.6% 2,034,250 3.0% 2,095,278 3.0% Snow and Ice Control(DPW) 675,000 0.0% 675,000 0.0% $ 675,000 0.0% 675,000 0.0% 675,000 0.0% State Assessments 735,377 1.7% 760,150 3.4% $ 780,054 2.6% 799,555 2.5% 819,544 2.5% Cem ry 279,550 4.1% ACC.Costs-Misc. $ 3,539,927 5.3% $ 3,340,650 -5.6% $ 3,430,054 2.7% $ 3,508,805 2.3% $ 3,589,822 2.3% OPINE Town of Reading Meeting Minutes Board - Committee - Commission - Council: Finance Committee Date: 2022-07-27 Time: 7:00 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Session: Open Session Purpose: General Business Version: Draft Attendees: Members - Present: Chair Ed Ross, Joe Carnahan, Geoffrey Coram (remote), Joe McDonagh, Marianne McLaughlin-Downing, Emily Sisson, Mark Zarrow (remote) Members - Not Present: Vice Chair Jeanne Borawski, Andrew Mclauchlan Others Present: Town Manager Fidel Maltez (remote), Town Accountant Sharon Angstrom Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: This meeting was held in-person at the Town Hall Conference Room and remotely via Zoom. Chair Ed Ross called the meeting to order at 7:00 pm. Reorganization: Town Accountant Sharon Angstrom volunteered to accept nominations for Chair. Geoffrey Coram nominated Ed Ross as Chair, which was seconded by Joe McDonagh. There were no other nominations. On a nomination by Geoffrey Coram, and seconded by Joe McDonagh, the Finance Committee voted 7-0-0 to appoint Ed Ross as Chair. Roll call vote: Geoffrey Coram — Yes, Mark Zarrow — Yes, Marianne Downing — Yes, Joe McDonagh — Yes, Emily Sisson — Yes, Joe Carnahan — Yes, Ed Ross — Yes. Ed Ross continued the meeting and opened nominations for Vice Chair. Marianne Downing nominated Joe McDonagh for Vice Chair, which was seconded by Joe Carnahan. Ed Ross nominated Jeanne Borawski for Vice Chair, which was seconded by Emily Sisson. On a motion by Ed Ross, and seconded by Emily Sisson, the Finance Committee voted 4-3 to appoint Jeanne Borawski as Vice Chair. Roll call vote to appoint Jeanne Borawski: Geoffrey Coram — Yes, Mark Zarrow — No, Joe Carnahan — Yes, Marianne Downing — No, Joe McDonagh — No, Emily Sisson — Yes, Ed Ross — Yes. Roll call vote to appoint Joe McDonagh: Geoffrey Coram — No, Mark Zarrow — Yes, Joe Carnahan — No, Marianne Downing — Yes, Joe McDonagh — Yes, Emily Sisson — No, Ed Ross — No. Page 1 1 Joe McDonagh stated that he was honored by the nomination, but fully supports Ms. Borawski as Vice Chair. Liaison assignments: The Finance Committee reviewed the Liaison needs and assigned members accordingly: • Ed Ross: Select Board, Audit Committee (Chair, as Chair of FINCOM), Public Safety • Jeanne Borawski: Schools and School Committee, Administrative Services • Geoffrey Coram: Schools and School Committee, RAAC • Joe Carnahan: Select Board, RMLD, Public Works, Facilities • Marianne Downing: Select Board, Public Services Department/Community Development, RAAC • Joe McDonagh: RMLD, Library and Library Trustees, RAAC • Emily Sisson: Public Services Department/Community Services, Killam School Building Committee, Public Safety • Mark Zarrow: Audit Committee, Permanent Building Committee Reauest to Supplement Veterans Service Officer Salary from FinCom Reserves: Town Accountant Sharon Angstrom explained that the Community Services Director, who also served as the Veterans Agent, retired in June. The Town is required by law to have a full-time Veterans Services Officer, who must be a veteran. The FY23 budget provided for a part-time VSO, but when the Community Services Director retired, a full-time VSO was hired. But $30,000 is needed to fund the position full-time in the new fiscal year. Ms. Angstrom requested a transfer from the FINCOM reserves to make up the difference. The funds will be replenished at November Town Meeting. Town Manager Fidel Maltez noted that the Town has looked into regionalization of Veterans' Services, which can be complex, and requires coordination and an inter-municipal agreement. The timing is not right at the moment, but the Town is still pursuing those conversations for a long-term approach. On a motion by Marianne Downing, and seconded by Emily Sisson, the Finance Committee voted 7-0-0 to transfer $30,000 from the Finance Committee Reserve Fund for the Veterans Service Officer salary. Roll call vote: Geoffrey Coram — Yes, Mark Zarrow — Yes, Joe Carnahan — Yes, Marianne Downing — Yes, Joe McDonagh — Yes, Emily Sisson — Yes, Ed Ross — Yes. Discussion on Continuing Free Cash Support for Extra Capital in FY24: Ms. Angstrom stated that she and Mr. Maltez have begun meeting with DPW and Facilities department heads to discuss capital, and noted that every budget line item is increasing based on inflation. Previously the Finance Committee discussed FY24 being the last year spending 5.5% of the budget for debt and capital. However, Ms. Angstrom noted that an additional $169,000 would be needed over 5.5% for FY24 given the higher costs, and that is before meeting with the Police and Fire departments. She suggested extending the 5.5% one more year to FY25 to try to get these things on the plan done since prices have increased so dramatically. She asked the Committee if they would consider using a little extra free cash in FY24 and FY25 to keep items on the capital plan moving forward, or if things should be pushed out. She noted that she will continue to move things around to keep the number as close to 5.5% as possible. Mark Zarrow recommended that the Town consider using long term funding for long term assets. Ms. Angstrom understood and explained that auditors look at it positively not to borrow, and the Town tries to fit as much in the capital plan as possible without needing to borrow. Geoffrey Coram asked if there were items that the Town should consider buying now before inflation makes them more expensive in the future. Ed Ross asked to see a list of priorities of what items are most sensitive in terms of need and inflation, as that information may help form the Committee's guidance. Financial Forum olannina: Page 1 2 Ed Ross stated that he had a discussion with the Select Board Chair about scheduling a couple Financial Forums. The Vice Chair of the Select Board attended a discussion by Sean Cronin of the Department of Revenue on Municipal Finance. Mr. Ross suggested inviting Mr. Cronin to the first forum to give a similar presentation. Free Cash and large projects can be topics of discussion at the second forum. Based on the availability of other boards, Finance Committee members agreed to schedule the first forum on September 21St Communication oolicv (email, website): Marianne Downing reviewed the changes made to the website to include a contact form for each member of the Reading ARPA Advisory Committee (RAAC), and the benefits and drawbacks of the form. Ed Ross expressed his support to have a similar method of contacting Finance Committee members through the website. Town Manager Fidel Maltez left the meeting at 8:24 pm. Discuss Affordable Housing Trust Fund - from SB 7/19: As Mr. Maltez had left the meeting, the Finance Committee opted to table the Affordable Housing discussion until the next meeting. Killam - Free Cash discussion (if needed) - from KPB 7/18: Ed Ross noted that the Killam School Building Committee had their kickoff meeting. The Finance Committee will discuss at the Financial Forum and ahead of Town Meeting, regarding the proposed use of Free Cash for the design of the new Killam School. Future Meeting Agendas: Ed Ross noted that the next meeting is scheduled for August 171h, and current and expiring grants will be an item on that agenda. Approve Meetina Minutes from June 29, 2022: On a motion by Emily Sisson, and seconded by Marianne Downing, the Finance Committee voted 7-0-0 to approve the meeting minutes of June 29, 2022. Roll call vote: Geoffrey Coram — Yes, Mark Zarrow — Yes, Joe Carnahan — Yes, Marianne Downing — Yes, Joe McDonagh — Yes, Emily Sisson — Yes, Ed Ross — Yes. On a motion by Emily Sisson, and seconded by Joe Carnahan, the Finance Committee voted 7-0-0 to adjourn at 8:37 pm. Roll call vote: Geoffrey Coram — Yes, Mark Zarrow — Yes, Joe Carnahan — Yes, Marianne Downing — Yes, Joe McDonagh — Yes, Emily Sisson — Yes, Ed Ross — Yes. Page 1 3