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Home My WebLink About2022-07-27 Finance Committee MinutesRECEIVED Town of Reading TOWN CLERK Meeting Minutes 2 ADIP!r. FAA, M°••°'' 2022 AUG 18 AH 7: 54 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: Final 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 Request to Supplement Veterans Service Officer Salary from FlnCom 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 tens 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. rum pianni Page 12 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 21°r. Communication policy (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 neededl - 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 Meetina Agendas: Ed Ross noted that the next meeting is scheduled for August 17", and current and expiring grants will be an item on that agenda. Approve Meeting 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. 'a,, 1 3