HomeMy WebLinkAbout2023-08-23 Finance Committee Minutesrq kECEIVEL)
Town of Reading TO'NN CLERK
Meeting Minutes - PEAS rlNf= M6A.
20; SEP 21 AM 9:19
Board - Committee - Commission - Council:
Finance Committee
Date: 2023-08-23 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, Vice Chair Joe Carnahan, Geoffrey Coram, Joe McDonagh,
Marianne McLaughlin -Downing, John Sullivan (remote), Mark Zarrow
Members - Not Present:
Endrl Kume, Emily Sisson
Others Present:
Town Manager Fidel Maltez, School Director of Finance Derek Pinto
Minutes Respectfully Submitted By: Jacquelyn LaVerde
Topics of Discussion:
This meeting was held in-person in the Select Board Meeting Room of Town Hall, and
remotely via Zoom.
Chair Ed Ross called the meeting to order at 7:01 pm.
Liaison Reports:
John Sullivan shared updates from last week's CPDC meeting including: the withdrawal of a
40R application for lower Haven Street, the withdrawal of an animal kennel application at
1312 Franklin Street, an approved modification to the stormwater permit plan for a
subdivision on Grandview Road, a request for a three -lot subdivision off Beacon Street, and
a preview of the META Communities survey results.
Joe Carnahan reported on the events from last night's Select Board meeting. The Reading
Food Pantry requested additional ARPA funds, as the Increased demand for food and gift
cards exhausted the ARPA funds they received quicker than they expected. All the ARPA
funds have been allocated, though there was a question of whether funds would be left over
in the COVID allocated line, and the Board discussed other ways the Town could help the
Food Pantry with publicity. There was a dog park discussion that alluded to a time sensitive
grant associated with it. The Board discussed the replacement of the Director of Equity and
Social Justice and the change in reporting structure from the Library to the Town Manager.
The Finance Committee can expect to see a request at Town Meeting to move the salary for
the position from the Library budget to the Town Manager budget.
Marianne Downing also shared updates from CPDC. Dollar Tree is planning to move into the
former Walgreens. Community Development Director Andrew MacNichol said at the
meeting that the Town is temporarily under the 40B 10% threshold for affordable housing
because Eaton Lakeview has not put In building permits yet, but once they do it will be
reported to the state. The Dowd Pediatrics building is for sale, and while it's not in the 4011
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district, it is within the META Communities radius, and a developer could do something
there If the Town is under 40B.
Emily Sisson was unable to attend tonight's meeting, but Ed Ross shared her reports on her
behalf. The Symonds Way Exploratory Committee is issuing a Request for Information (RFI)
to see what private entitles might be interested in developing the area. Community
Services Director Jenna Fiorente will be requesting a part-time assistant for the Veterans
Services Officer in next Oscal year's budget.
Ed Ross provided an update on the Killam School Building Committee. The Committee is
currently working with Colliers, the Owner's Project Manager (OPM), to put together the
Request for Design Services. Interviews with designers will be conducted with the MSBA in
early November, and the district will be able to negotiate a contract with the chosen
designer by the end of November. A meeting was held with Colliers to start the discussion
on what the district wants in a new Killam school. As things develop, the Committee will
start to conduct more community outreach and education on the progress, needs, and
wants of the project. A discussion of the Killam building timeline will be added to the
agenda of the Financial Forum, including when it will go to the voters and other major
milestones.
Finalize Liaison Assianments:
Joe Carnahan noted that Public Works was assigned to another member and should be
removed from his list. Corrections were made and the Committee agreed with the final list
of assignments.
Dr. Derek Pinto, the new Director of Finance and Operations Tor the School Department,
introduced himself to the Finance Committee. He shared his prior experience at Lasell
University, and in K-12 as a teacher, principal, and CEO of a school district in California. He
is acutely aware of the issues with K-12, as his wife is a high school teacher, and he has
three school -aged children. He stated that he looks forward to developing relationships and
continuing with the district's mission.
FY23 Free Cash Estimate Discussion:
Town Manager Fidel Maltez shared the current Free Cash estimate of $18.46 million. Free
cash at the start of the year was $19.93 million. Revenue overbudget is estimated at $3.81
million, expenses under budget are estimated at $1.65 million, and $6.37 million was used
including: $3.28 million to support the FY23 Budget, $2.2 million for the Killam School,
$275,000 for FY23 budget adjustments at November Town Meeting, $414,000 transfer to
the Smart Growth Stabilization Fund, and $338,000 for amendments to the FY23 budget at
April Town Meeting. The current projected total of reserves is $20.46 million, or 17.2% of
the budget, and includes the estimated $18.46 million of Free Cash, $1.8 million in the
General Stabilization Funds, and $200,000 in FINCOM Reserves.
Trash and Recycle Barrel Discussion:
Mr. Maltez stated that Article 7 at November Town Meeting will request funding for
$900,000 from Free Cash to provide each home with one 64 -gallon trash barrel and one 64 -
gallon recycling barrel, to be rolled out in Summer 2024. Homes can lease an additional
trash barrel for $200 per year, and can receive an additional recycling barrel at no cost.
Residents will also be able to purchase 33 -gallon overflow, trash bags at retailers such as
Market Basket and Stop & Shop for $10 for a roll of Ove bags. Smaller barrels will also be
available for those who want them.
During the fall, when Republic took over JRM, and trash collection was compromised, Mr.
Maltez stated that he spoke with six other companies, all of which require automated
collection, and do not provide a manual collection option. Four of those companies also
provided estimates, all of which were a significant Increase over the Town's current
contract.
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The second part of the article proposes creating a solid waste revolving fund. The cost of
the additional barrel leases, and sale of overflow bags, will be put into that fund to offset
the excess costs of transportation and disposal.
Update on Grove Street Lot 5:
Mr. Maltez stated that the Town received five bids for Lot 5, and K & R Construction was the
lowest bidder at $169,250. There will be an article at November Town Meeting to fund the
construction, instead of using FINCOM Reserves.
Preview of November Town Meetina:
Mr. Maltez brought a new issue to the Committee's attention. In FY22, Town Meeting
funded a ladder truck for $1.4 million, which was ordered in March 2022. This past Monday,
the manufacturer of the truck sent a letter stating that they were passing along a material
cost increase of $125,000 to the Town. The Town's current truck Is from 2008 and was
slated for replacement In 2022. If the Town was to cancel this contract, it would have to go
back out to bid. Other communities received a similar letter. Mr. Maltez stated that Fire
Chief Burns reached out to other manufacturers, who indicated that they are experiencing
the same unforeseen cost increases of materials. Legal is reviewing the contract right now
to determine what options the Town may have. A request for additional funding is expected
to be added to the warrant. There are other things the Town could get if it negotiates with
the manufacturer, including guaranteed delivery dates, parts vouchers, additional years of
warranty, and when to make the payment, as other communities received such
considerations through negotiations.
Financial matters on the November Town Meeting warrant Include: changes to the Capital
Improvement Plan, payment of prior years bills (none at this time), Birch Meadow Phase 2
in FY25, trash and recycle barrels, ladder truck, and Grove Street Lot 5. There are also two
non-financial related articles Including a snow removal bylaw for the 40R district, and
acceptance of a local option bonus for any certified municipal Town Clerk up to $1,000.
Financial Forum Plannina/Future Agendas:
The Committee discussed whether to hold one forum or two, and agreed that only one
would be needed, which is scheduled for September 20th. Similar to last year, the Financial
Forum will Include a Financial Forecast, review of the Capital Plan, FY25 budget overview,
FY25 budget guidance, discussion on Free Cash, School financial review, and discussion on
the Killam School.
Joe Carnahan suggested additional Items for the forum agenda, including discussing
whether to change the reserve policy from 7% to 10%, and reviewing reserve funds outside
of the general reserve fund and their uses. Mr. Ross agreed that a review of those funds
criteria and balances could be Included In the Chief Financial Offlcer's budget overview. He
also requested that the Committee receive an update on Capital Plan projects, such as
project successes, and projects that are on -budget and on-time.
Approve Meeting Minutes:
On a motion by Mark Zarrow, seconded by Joe McDonagh, the Finance Committee
voted 7-0-0 to approve the meeting minutes of July 26, 2023.
Roll call vote: John Sullivan — Yes, Geoffrey Coram — Yes, Joe McDonagh — Yes, Joe
Carnahan — Yes, Mark Zarrow — Yes, Marianne Downing — Yes, Ed Ross — Yes.
On a motion by Joe Carnahan, seconded by Mark Zarrow, the Finance Committee
voted 7-0-0 to adjourn at 8:55 pm.
Roll call vote: John Sullivan — Yes, Geoffrey Coram — Yes, Joe McDonagh — Yes, Joe
Carnahan — Yes, Mark Zarrow — Yes, Marianne Downing — Yes, Ed Ross — Yes.
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