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Home My WebLink About2024-08-21 Finance Committee MinutesTown of Reading Meeting Minutes Board - Committee - Commission - council: Finance Committee Date: 2024-08-21 Building: Reading Town Hall Address: 16 Lowell Street Purpose: General Business Attendees: Members - Present: Time: 7:00 PM RECEIVED By Town Clerk GP at 7:33 am, Sep 19, 2024 Location: Select Board Meeting Room Session: Open Session Version: Final Chair Joe Carnahan, Vice Chair Marianne McLaughlin -Downing, Geoffrey Coram, Endri Kume, Ed Ross (remote), John Sullivan Members - Not Present: Joe McDonagh, Emily Sisson, Mark Zarrow Others Present: Town Manager Matt Kraunelis, Chief Financial Officer Sharon Angstrom, RMLD General Manager Greg Phipps, RMLD Director of Finance & Accounting Ben Bloomenthal, Assistant DPW Director Mike Kessman 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 Joe Carnahan called the meeting to order at 7:00 pm. Roll Call Attendance: Ed Ross (remote), John Sullivan, Endri Kume, Mariane McLaughlin - Downing, Joe Carnahan. Liaison Reports Marianne McLaughlin -Downing shared that the Select Board was discussing the possibility of second water meters, and heard a presentation on what other communities were doing, but would like to see more data on It. The Select Board also discussed the possibility of moving the annual town election, but it would run into end -of -year things, and one big issue is mail - in ballots and getting them In on time. The Select Board also received an update on the issues residents were having with trash pickup and the new trash barrels. The barrels were expected this summer, but will be ordered soon and rolled out in spring 2025. Ed Ross provided an update on the Killam School Building Committee (KSBC). The KSBC voted on the preferred "Bl" design, which incorporates all Pre -K in Killam, which frees up space at Wood End and at the High School. It will be a three-story building with all Pre -K on the first floor, kindergarten through second grade on the second Floor, and third through fifth grades on the third floor. The sustainability subcommittee is doing more analysis on geothermal, and while no decisions have been made yet, it will have financial implications, and there are a lot of incentives that the Town can apply for through the Inflation Reduction Act. The project is still on schedule and on budget with the $2.2 million allocated for the feasibility study, and still tracking to be on the ballot in the spring. Geoffrey Coram arrived at 7:10 pm. Page I 1 John Sullivan shared that the Reading Center for Active Living Committee recommended Symonds Way as the site for the new Senior Center to the Select Board. And the Community Planning and Development Commission (CPDC) was hoping to have an MBTA Communities plan chosen at this point, but Is still working through legal opinions on conflict - of -Interest Issues. The CPDC's plan to start holding public hearings in September Is still up in the air. Geoffrey Coram stated that applications are open for the Citizens Police Academy. Joe Carnahan stated that the Community Preservation Act (CPA) Study Committee Is not recommending pursuing CPA adoption this November, as the time frame Is too tight and there Is not enough time to educate the voters. The Study Committee will go back to the Select Board and request to extend their charge so they can further research the topic for a later adoption. General Manager Greg Phipps and Director of Finance and Accounting Ben Bloomenthal of the Reading Municipal Light Department (RMLD) provided a financial update. Financial and accounting milestones achieved in the last few months include: calendar year 2025 budget preparation, Implementation of new accounts payable (AP) software, commencement of 2% net plant payments to all four towns totaling $945,988, processing the below the payment to the Town of Reading in the amount of $1.29 million in June, and being awarded its first grant. Cash balances including restricted cash, restricted investments, and unrestricted cash total approximately $62 million. Mr. Bloomenthal provided snapshots of the RMLD operating budget and actual spending, capital budget and actual spending, outside legal services, and other outside contracted services. He also provided an overview of how the new AP software will help speed up the AP process Internally. Lastly, he highlighted grants awarded to RMLD including a $5.15 million grant from the Federal Highway Administration for Level 2 and DC fast chargers throughout the territory, and a $35,000 grant for cyber security training and work. Energy considerations for building projects (e.g. Kiifam) Mr. Phipps explained that RMLD has been participating in the Klllam School Building Committee meetings. Once the School Building Committee decides what type of system will go into the building, RMLD will provide estimates on the energy costs. RMLD does not make a recommendation, as the customer must decide on what equipment will go into the building. But RMLD will participate and educate to the best of their ability. Vote on FINCOM Reserve Fund Transfer Chief Financial Officer Sharon Angstrom reviewed two DPW requests for the purchases of trucks. DPW was awarded $275,000 in Oscal year 2022 for the purchase of a bucket truck. They placed the order and issued a purchase order. The amount for the truck was $258,523, and the excess amount closed out to free cash. A year later, the manufacturer said they could no longer do it for the original amount, and asked for an additional $20,000. Former DPW Director ]ane Kinsella negotiated with the company to split the overage, and the company and the Town each absorbed $10,000. However, someone failed to encumber the money, so DPW is asking for the $10,000 again to make the final payment for the truck. The second request is for a forestry chipper and loader truck, for which Town Meeting approved $210,000 in FY23. The truck was ordered, but due to supply chain Issues, and a fire at the manufacturer, the company cancelled the order. Now that the Town wants to reorder the truck, it will cost $100,000 more, and the quote is only good through October 24th. But DPW Is requesting $125,000 to ensure there will be enough, in case the price changes by the time they place the order. Ms. Angstrom stated that she will request the FINCOM Reserve Fund be replenished as part of the FY25 budget amendments at November Town Meeting. Page 1 2 On a motion by Marianne McLaughlin -Downing, seconded by Endri Kume, the Finance Committee voted 6-0-0 to approve a transfer from reserves in the amount of $135,000 for the purposes outlined in the August 8, 2024 memo. Roll call vote: Ed Ross - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Endri Kume - Yes, Geoffrey Coram - Yes, Joe Carnahan - Yes. Liaison Assignments The Committee reviewed the FY24 list of liaison assignments. Members Joe McDonagh, Emily Sisson, and Mark Zarrow, who could not be in attendance this evening, had sent their preferences to Chair Carnahan ahead of the meeting. Following discussion, the Committee agreed on the following Board/Committee and liaison assignments: Joe Carnahan: Audit Committee (Ex -Officio FINCOM Chair), Community Preservation Act Study Committee, Facilities Geoffrey Coram: School Department and School Committee, Public Safety Marianne McLaughlin-Downina: Select Board, Charter Review Committee, Library and Board of Library Trustees Endri Kume: RMLD, Administrative Services, Public Works Joseph McDonagh: RMLD, Library and Board of Library Trustees Ed Ross: Killam School Building Committee, Reading Ice Arena Authority, Select Board Emily Sisson: Public Services/Community Services, Public Safety John Sullivan: Public Services/Community Development, Permanent Building Committee/Reading Center for Active Living (ReCAL) Building Committee Mark Zarrow: Audit Committee: Public Services/Recreatlon, School Committee Approval of Prior Meeting Minutes On a motion by Marianne McLaughlin -Downing, seconded by Endri Kume, the Finance Committee voted 6-0-0 to approve the meeting minutes of July 24, 2024 as presented. Roll call vote: Ed Ross - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Endri Kume - Yes, Geoffrey Coram - Yes, Joe Carnahan - Yes. Future Agendas Mr. Carnahan noted that Dr. Milaschewski was unable to give his presentation about Killam at the previous meeting, but it may be better to hold that presentation until the Capital Project Financial Forum. The next Finance Committee meeting will be the first Financial Forum on September 18th, and the Committee will hear about projected revenues, projected free cash position, and accommodated costs Impacts on the FY26 operating budget. The Committee will also review Finance Committee policies, including the Capital and Debt Plan, as capital costs continue to increase. The Committee will vote on FY26 budget recommendations and November Town Meeting Warrant Articles at their following meeting on October g'h. The second Financial Forum on October 30th will be a continuation of the Capital Building Project updates. On a motion by Marianne McLaughlin -Downing, seconded by Endri Kume, the Finance Committee voted 6-0-0 to adjourn at 8:43 pm. Roll call vote: Ed Ross - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Endri Kume - Yes, Geoffrey Coram - Yes, Joe Carnahan - Yes. Page 1 3