HomeMy WebLinkAbout2023-03-08 Finance Committee Minutes+ °` REGEIVEU
�� Town of Reading TOWN CLERK
Meeting Minutes READING. 8�.
e '"'"` ° 2123 JUN 29 AM U7: 35
Board - Committee - Commission - Council:
Finance Committee
Date: 2023-03-08 Time: 7:00 PM
Building: Reading Town Hall Location: Select Board Meeting Room
Address: 16 Lowell Street Session: Open Session
Purpose: General Business Version: Final
Attendees: Members - Present:
Chair Ed Ross (remote), Vice Chair Jeanne Borawski, Joe Carnahan, Geoffrey
Coram, Marianne Downing, Joe McDonagh, Emily Sisson, Mark Zarrow
Members - Not Present:
Others Present:
Town Manager Fidel Maltez, Town Accountant Sharon Angstrom, DPW
Director Jane Kinsella (remote), Assistant DPW Director Chris Cole (remote),
Facilities Director Joe Huggins (remote), Administrative & Public Services
Director Matt Kraunelis (remote), Library Director Amy Lannon, Technology
Director Kevin Funlla (remote), Assistant Facilities Director Kevin Cabuzzi
(remote), Town Clerk Laura Gemme (remote), Human Resources Director
Sean Donahue (remote), Business Administrator Jayne Wellman (remote),
Community Services Director Jenna Florente (remote), Community
Development Director Andrew MacNichol (remote), Jackie McCarthy (remote
7:54 pm)
Minutes Respectfully Submitted By: Jacquelyn LaVerde
Topics of Discussion:
Vice Chair Jeanne Borawski called the meeting to order at 7:01 pm, as Chair Ed Ross was
joining the meeting remotely.
Liaison Reports:
Geoffrey Coram shared that the School Committee voted to consider new SPED Counsel,
which was motivated by price Increases.
Marianne Downing and Ed Ross shared updates from the School Committee and Select
Board. Ms. Downing stated that in response to a question raised at the last FINCOM
meeting, the School Committee sent an email explaining that the Assistant Principal line
item was a mix of elementary assistant principals and the Director of Academic Achievement
at the high school. Mr. Ross noted that the Select Board had a discussion on new Town
Counsel, which will be considered at their next meeting, as they want to ensure they are
getting the right value with current counsel. The Birch Meadow project has almost doubled
in cost, and the ARPA money will not be enough. Increased project costs raise concerns
about the upcoming Killam and Senior Center projects.
Ed Ross reviewed the information Town Accountant Sharon Angstrom presented at the
previous meeting on municipal self-assessment from DIS. He stated that the charts,
graphs, and historic data were impressive and will share the link with the Committee. The
Page I 1
Select Board discussions on water rates and Town Counsel may have cost implications, and
will be something the Finance Committee will want to be aware of going forward.
FY24 Town Budget Presentations:
Town Accountant Revenue, Financial Forecast, Spending Scorecard, Shared Costs:
Town Accountant Sharon Angstrom reviewed the Financial Forecast, which includes
accommodated costs and projected revenues. Property tax revenues are projected to
Increase 3.5%, other local revenues are projected to increase 12.6% and are starting to
return to pre -pandemic levels. Intergovernmental revenues through state aid are projected
to increase 2.5% and any shortfall will be covered by Free Cash, though there is usually no
need to use Free Cash to cover shortfalls in state aid. Transfers and other available
revenues are up 3.1%.
Accommodated costs increase 3.8%, capital decreases 4%, energy costs increase 12.6%
(and will see a sharp increase in FY25 due to the rise in gas costs), financial accommodated
costs increase 3.7%, out -of -district special education Increases 4%, Vocational school
Increases 4%, rubbish Increases 3%, snow and ice remain level funded, and state
assessments increase 2.5%.
Administrative Services:
Assistant Town Manager Matt Kraunelis presented the budget for the Administrative
Services Department. Mr. Kraunelis explained that Technology will become its own
department. The remaining divisions of Administrative Services are Operations, Human
Resources, Town Manager's Office, Town Clerk, and Elections. The overall Administrative
Services budget Increases 1.3%, which is a smaller increase due to fewer elections In FY24,
the removal of the pay and class study which was funded at November Town Meeting, no
new proposed positions, and the separation of the Technology budget.
Technology:
Technology Director Kevin Furllla highlighted some increases including the 20% Increase in
permits and licensing software to facilitate inspectors in the field. Other proposed increases
are based on past trends. The need for overtime is increased this year due to an ongoing
project, and is expected to decrease in the following year.
Public Services:
Assistant Town Manager Matt Kraunelis stated that he recently took over the Public Services
Department following Jean Delios's retirement. The overall budget is down 1.5%, largely
driven by the Assistant Town Manager salary now being split between two departments.
There are some increases in Community Services for programming and staff hours at the
Senior Center, and Veterans Services. Community Development has a slight increase in
salaries, but expenses are unchanged.
Finance:
Town Accountant Sharon Angstrom reviewed the Finance Department Budget. The Finance
budget is increasing 4.6%, mostly In wages. All Finance staff is non-union and was included
in the pay and class study. Expenses increased 2.2% for professional development and
office supplies.
Library:
Library Director Amy Lannon reviewed the budget for the library. There was $10,000 added
to expenses. The overall Increase is 4.2%, primarily driven by salary Increases from the
pay and class study.
Facilities:
Facilities Director Joe Huggins presented the budget for Core Facilities and Town Facilities
(School Buildings are voted under the School Committee budget). The whole Facilities
budget is Increased 9.4%. Wages increased 3.2%. There is an increase for overtime due to
increased wages for union staff, and events that are handled by core facilities staff that are
not billable through school rentals. Expenses Increase 12% overall, which Includes a 12.3%
Page 1 2
increase to the energy budget, 20% increase for elevators due to state mandates and
Inspection requirements, $50,000 Increase for alarm expenses due to the new security
systems that have been added over the past couple of years, and 40% increase In pest
management due to a spike in activity over time.
The energy increase is due to an RMLD rate Increase, and a 4% increase for natural gas
that covers two months of the year, as that is when the new gas contract rates take effect.
The following year will see a 33% Increase for the year for natural gas under new contract.
DPW:
DPW Director Jane Kinsella noted that there is no change In FTEs in the general department
or the Enterprise Funds. The department budget Increased 3.3%. Expenses Increased
4.8%, which includes administrative supplies, highway equipment, parks and cemetery for
grave restorations, and forestry for removal of hazardous ash trees.
Enterprise Funds:
The Water Enterprise Fund increased 3.5%. Salaries are up 3.1%, all contractual, with no
change in staffing. Significant increases in expenses include a 25% Increase in police
details, and 2.8% increase in water parts and maintenance due to increased costs for
copper tubing and other materials.
The Sewer Enterprise Fund overall decreased 1.5%. The only changes In wages are
contractual. There is a slight increase in expenses due to Increased costs to dispose of
hazardous waste.
There is no change to the Storm Water Enterprise Fund. Salaries decreased slightly, as
people left, and new employees were hired at a lower rate. There is no increase to
expenses.
Future Aaendas:
At the next meeting, the Finance Committee will hear budget presentations for the
remaining Town departments, vote on the budget and Town Meeting Warrant Articles, and
discuss the FINCOM report to Town Meeting.
On a motion by Mark Zarrow, seconded by Emily Sisson, the Finance Committee
voted 8-0-0 to approve the meeting minutes of March 1, 2023.
Roll call vote: Ed Ross - Yes, Marianne Downing - Yes, Joe McDonagh - Yes, Mark
Zarrow - Yes, Jeanne Borawski - Yes, Joe Carnahan - Yes, Geoffrey Coram - Yes,
Emily Sisson - Yes.
On a motion by Mark Zarrow, seconded by Emily Sisson, the Finance Committee
voted 8-0-0 to adjourn at 9:23 pm.
Roll call vote: Ed Ross - Yes, Marianne Downing - Yes, Joe McDonagh - Yes, Mark
Zarrow - Yes, Joe Carnahan - Yes, Geoffrey Coram - Yes, Emily Sisson - Yes,
Jeanne Borawski - Yes.
Page 1 3