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eoard - Committee - Commission - Council:
Finance Committee
Date: 2024-OS-28 Time: 7:00 PM
Building: Reading Public Library Location: Community Room
Address: 64 Middlesex Avenue Session: Porum
Purpose: Pinancial Forum Version: Final
Attendees: Members - Present:
Chair Ed Ross, Vice Chair ]oe Camahan, Geoffrey Coram, Endri Kume, ]oe
MCDonagh, Marianne MCLaughlimDowning, Emily Sisson, ]ohn Sullivan
Members - Not Present:
Mark Zarrow
Others Present:
Select Board Members: Chair Carlo eacci, Vice Chair Karen Gately Herrick,
Mark Dockser, Chris Haley (remote), Melissa Murphy;
Killam School Building Committee Members: Chair Carla Nazzaro, Sarah
MCLaughlin, Nancy Twomey, John Coote;
Town Manager Matt Kraunelis, School Superin[endent Tom Milaschewski,
Chief Financial Officer Sharon Angstrom, Director of Operations Jayne
Wellman; Director of Facilities loe Hu9gins (remote), Assistant Director of
Facilities Kevin Cabuzzi (remo[e), Mollie O'Keeffe - RMLD (remote),
Elder/Human Services Administrator Chris Kowaleski, Tom Wise, Angela
einda, Jeffrey Dietz, Karen JanowSki, Sandy Ma[athia, RoSemarie
Debenedet[o, Patrick Egan, Marilyn Shapleigh, Nancy Ziemlak, ]ohn Sasso,
Michael Coltman, Nancy Docktor, Erin Gaffen, Beth Mosier (remote), ]udy
Coltman (remo[e), Kendrick See (remote), Eric (remote), Linda Snow
Dockser (remote), Neil Gillis (remote), Ron Assini (remote), Steve Martullo
(remo[e), Kate Harrington (remote), Mary Anne Kieran (remote), Barbara
(remote), Karen Pinette (remote), David Swyter (remote), Charlotte
(remote), Carolyn ]ohnson (remote), ]eanne Thomases (remote)
Minutes Respectfully Submitted By: ]acquelyn LaVerde
Topics of Discussion:
This meeting was held in-person in the Library Community Room and remotely via Zoom.
Chair Ed Ross called the meeting to order at 7:03 pm.
The Selec[ Board was called [o order a[ 7:03 pm.
The Killam School Building Committee was called to order at 7:03 pm.
Welcome and Introduction from the Finance Committee Chair:
Mr. Ross explained the focus of the Financial Forum is to address capi[al projects [hat will
come before vo[ers in the near future. He set [he expectations for the evening and noted
that cos[s for these projects are not yet available. This discussion is [o lay [he educa[ion
foundation and demystify the process of what goes into Town projects.
cage I �
Town Finance 101:
Chief Financial Officer Sharon AngsVom reviewed the Finance Commit[ee Debt and Capital
Policy that says 5% of revenue each year is devo[ed to deb[ and capital. Debt should be
spread out so tha[ it does not ezceed [he life of the asset, should be borrowed for the
shortest possible term, and projects over $5 million are enmuraged to use a debt exclusion
so as not to be a burden on the budget. The policy also calls for a minimum five-year
Capital Program. The program is currently a ten-year plan, is presented [o Town Meeting
twice per year, and is reviewed quarterly by department heads.
Ms. Anqs[rom provided an overview of Proposition 2 'h, which means the tax levy cannot be
raised over[he prior year more than 2 'h%. There are two types of ballot votes to allow [he
levy to be raised more than 2 Yz%: an override, which is a permanent increase [o the base;
and a debt exclusion, which is a temporary increase to fund specific projects, and does not
become part of the base for calculating fu[ure levy limits. There are currently three projects
remaining on the debt schedule: wood End and the High School which will be paid off in
FY24; and the Library, which will be paid off in Fv25. Once they are paid off, the average
tax bill will decrease about $299. So, the Town is in a good position with excluded debt
falling off, and it is a good time [o add exduded debt.
Killam School euildina Proiect Overview:
Killam School Building Committee (KSBC) Chair Car�a Nazzaro explained how Reading was
invi[ed into the Massachusetts School Building Authority (MSBA) program for a new Killam
School. The program will provide tens of millions of dollars in reimbursemenL The MSBA
has a very strict pro[oml and process that Reading is following for the Killam School.
Through the M58A process, the Killam School Building Commi[tee was formed, Colliers was
hired as the Owner's Project Manager (OPM) to lead the Town through the MSBA process,
and Lavallee Brensinger Architects (LBA) was hired as the project architect. There are eight
modules in [he MSBA process. Reading is currently in Module three, the feasibility study,
and will move into the schematic design module soon. A milestone Preliminary Design
Program (PDP) submission was made on May 20°". By [he end of August, we should have a
preferred design. The debt exdusion is expected to go to [he voters next May.
Ms. Nazzaro provided a project upda[e. The school is going to be buil[ around the students,
community cen[ered, will be built with responsible sustainabili[y, will be safe and healthy,
and will maintain a sense of belonging. The project team has hosted several community
meetings and listening sessions, developed a projec[ charter, created a sustainability
working group, conducted school visits [o look at sustainability and educational elements,
conducted site and traffic studies, developed preliminary design alternatives, gone through
an educational visioning process, done enrollment studies, and assessed struc[ural and site
existing mnditions. Ms. Nazzaro outlined [he upcoming KSBC meetings and community
meetings and noted that an initial ranqe of mnstruction msts related to the different
altematives, not to[al project costs, will be presented at the community meetin9 on Juty
15'". The final number for the mtal project will be expected in the spring of 2025.
Senior/Communitv Cen[er Proiect Overview:
Select eoard member Mark Dockser presented on behalf of the Reading Center for Active
Living Committee (ReCALC). He reviewed the history and the need for a new senior center.
In 2017, a s[udy was mnducred [hat provided remmmenda[ions m improve the Pleasan[
SVee[ Cen[er, accessibility, and programming. ReCALC was formed in 2021 to assess the
needs of Reading's senior community. BH+A was hired in 2023 to conduct a feasibility
study for a new or renova[ed Senior Center/Center for Active Living. He reviewed the site
selection process, and the three mwn-owned parcels identified as viable: the curren[ Senior
Center on Pleasant Stree[, Oakland Road, and Symonds Way. The current preferred site is
Symonds Way. ReCALC has enga9ed the Permanent Building Committee [o provide [heir
ezpertise before the site is selected. The preliminary cost estimate is between $25 million
antl g30 million. The si[e selection recommendation is expec[ed this summer, and [he
Permanent euiltling Project Commi[[ee formation is planned for Juneputy 2024.
Coordina[ion wi[h other Town projects and priorities, community engagement, and
Pa9e I a
schematic drawing and cost estimates are ongoing. A Town Meeting vote and town-wide
vote is planned for early 2025. Construction is expected to begin late 2025, or early 2026.
Communitv Preservation Act Overview:
Select Board Chair Carlo Bacci presented information on the Community Preservation Ac[
(CPA). Money collected from CPA can be used for open space and recrea[ion, historic
preservation, and affordable housing. A s[udy committee has been established and will hold
its first meeting [omorrow evening. A surcharge range from 0.5% to 3% can be added to
property tax bills, and there are a few exemption options. The state provides maKhing
funds [o money collected each year. The average home value in Reading is $555,000, and
with the $100,000 exemption, a 1% surcharge would add an estimated $84 to the average
tax bill annually. More [han half of the cities and towns in Massachusetts have adop[ed
CPA.
Mr. Bacci reviewed examples of what CPA funds could be used for, provided a summary of
[he steps needed [o adopt CPA, and explained the CPA Committee [ha[ is formed once it is
adopted. The study committee was created later than anticipated. The goal was to ge[ CPA
on the November ballot, but there may not be enough time. The study committee will take
the time needed to mnduct its review.
Marianne MCLaughlin-Downing asked Por clarification if the surcharge woultl be applied
before debt exclusions, or indude the debt exdusions. Mr. Carnahan explained that it does
not appear [o ezdude the debt exdusions.
Discussion on Future Financial Forum/Proiect Uodate Series Meetina Dates:
Mr. Ross thanked all the presenters. He stated tha[ progress will con[inue to be made on
[hese projects, and more will be known around August and September. Ano[her Capital
Project Financial Forum will be scheduled in September.
The Killam School Building Committee and Select eoard adjoumed at 9:24 pm.
Aooroval of Prior Meetina Minutes:
On a motion by Emily Sisson, seconded by loe Carnahan, the Finance Committee
voted 8-0-0 to approve the meeting minutes of March 13, 2024 as presented.
On a motion by Marianne Downing, seconded by Emily Sisson, the Finance
Committee voted e-0-0 to adjourn at 9:26 pm.
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