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Home My WebLink About2024-10-09 Finance Committee MinutesC�f+ v � Town of Reading _ I Meeting Minutes ''nxroxpe� 2�7s 'J , J I hrh � i4 Board - Committee - Commission - Council: Finance Committee Date: 2024-10-09 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 Joe Carnahan, Vice Chair Marianne McLaughlin -Downing, Geoffrey Coram, Joe McDonagh, Ed Ross, Emily Sisson (remote), John Sullivan, Mark Zarrow Members - Not Present: Endri Kume Others Present: Town Manager Matt Kraunelis, Chief Financlal Officer Sharon Angstrom, Chlef Technology Officer Kevin Furilla, Fire Chief Greg Bums, Police Chief David Clark, Community Development Director Andrew MacNichol (remote), Faclllties Director Joe Huggins, Assistant Facilities Director Kevin Cabuzzi (remote), DPW Director Chris Cole, School Superintendent Thomas Mllaschewski, School Committee Chair Tom Wise, Rob Belkner - FJ Roberts Sports Surfaces (remote), Carl McFadden; Select Board Members: Karen Herrlck, Chris Haley (remote), Carlo Bacci (remote), Melissa Murphy (remote); Can McFadden, Jack (remote) Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: This meeting was held in-person in the Town Hall Conference Room and remotely via Zoom Welcome Chair Joe Carnahan called the meeting to order at 7:00 pm. The Select Board called to order at 7:01 pm. Select Board Roll Call: Karen Herrick, Chris Haley (remote), Carlo Bacci (remote), Melissa Murphy (remote). Finance Committee Roll call: Emily Sisson (remote), Geoffrey Coram, Ed Ross, Joe McDonagh, John Sullivan, Marianne McLaughlin -Downing, Mark Zarrow, Joe Carnahan. Geoffrey Coram stated that the School Department appointed Phil Littlehale as the Interim Director of Finance. Marianne McLaughlin -Downing noted that the Select Board discussed reallocating $108,000 of Amerlcan Rescue Plan Act (ARPA) funds originally allocated for Reading Center for Active Living (ReCALC) for pickleball or other proposals such as sewer, paving, and sidewalks. page I i Emily Sisson noted that the pickleball community has raised $120,000, which they are hoping to donate to build pickleball courts. There is also $100,000 for pickleball on the capital plan. The hope Is to bring it to spring 2026 Town Meeting for a vote. Ms. Sisson also noted that Community Services has a Volunteer Coordinator, whose position is funded with ARPA funds through FY25. They are trying to figure out how to use revolving funds to keep her at 10-15 hours per week. Recreation is also trying to figure out how to fund a part time therapeutic person, which might also be funded with revolving funds. Ed Ross shared that the Killam School Building Committee (KSBC) met last week, is still on track, and moving into the Schematic Design phase. Joe Carnahan shared that the Select Board agreed to extend the charge of the Community Preservation Act (CPA) Study Committee. The Study Committee will continue Its work on recommending a date to bring CPA to the ballot, research possible projects, and collect updated information on the amount of funds that could be collected and what it will cost people. Discuss and Vote on Use of Free Cash to Su000rt the FY26 Budget Chief Financial Officer Sharon Angstrom provided a brief update to estimates for accommodated costs, and a rundown of the possible free cash usage for FY26. The Committee engaged in a lengthy discussion on free cash usage and regeneration. Members raised concems about inflation, Increased costs for rubbish, benefits and other expenses, the Impact of continued use of free cash to support the budget, potential debt exclusions for the upcoming Killam and senior center projects, possible adoption of CPA, and the potential for a future override. School Committee Chair Tom Wise noted that union contracts are a big portion of the budget that needs to be accounted for, and stated that a 3.5% use of free cash would work for the School budget. Town Manager Matt Kraunelis noted that figure would work for the Town budget as well. Ed Ross made a motion to recommend using $5.8 million of free cash, or 3.5% of the operating budget, to support the FY26 Operating Budget, seconded by John Sullivan. Joe McDonagh moved to amend the amount to $5.72 million of free cash, or 3.40/a of the operating budget, seconded by Marianne McLaughlin -Downing. The amended motion failed by a vote of 6-2: Emily Sisson - Yes, Geoffrey Coram - No, Ed Ross - No, Joe McDonagh - Yes, John Sullivan - No, Marianne McLaughlin - Downing - No, Mark Zarrow - No, Joe Carnahan - No. The original motion passed by a vote of 8-0: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Discuss and Vote on Financial Articles in the Subsequent Town Meeting Warrant The Committee reviewed the financial articles of the Subsequent Town Meeting Warrant. Article 15 School Superintendent Thomas Milaschewskl, Facilities Director Joe Huggins, and consultant Rob Belkner of FJ Roberts Sports Surfaces, presented the request of Article 15 of the Subsequent Town Meeting Warrant for an additional $1.3 million to replace the field house floor. At Town Meeting last April, $1.7 million of debt was authorized for the replacement of the field house floor and bleachers, and It was noted that options were still being explored, and more funding may be requested later. The field house is very heavily used year-round for physical education, recreation, and other events. Mr. Huggins and Mr. Belkner summarized the two primary replacement options for the floor: foam -backed vinyl and wood athletic. They highlighted the safety and quality factors that made the wood athletic floor more favorable. The wood athletic floor will last an estimated 50 years, versus the estimated 20 years for the foam -backed vinyl. The total project cost of the foam -backed Page 1 2 vinyl floor is $1.7 million, or $3 million for the wood athletic surface. Carl McFadden, a regular user of the field house as a recreation basketball coach, advocated for the wood athletic floor. The consensus of the Committee was to invest in the safety, quality, and longevity of the wood athletic floor. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0 to recommend the content of Article 15 to Town Meeting as amended to include the $1.3 million amount in the motion. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Select Board member Carlo Bacci left the meeting at 8:48 pm. As it was unknown when Select Board member Melissa Murphy left the meeting, the Select Board was de -facto adjourned. Article 3 Ms. Angstrom reviewed the recommended changes to the FY25-FY35 Capital Improvement Program (CIP). She noted that $1.3 million of authorized debt was missing from the draft of the warrant report presented, and the adjusted net change for the FY25 CIP for the General Fund is $2.025 million. On a motion by Ed Ross, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend the content of Article 3 as amended to Town Meeting. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Article 4 Ms. Angstrom reviewed the requested changes to the FY25 operating budget. On a motion by Marianne McLaughlin -Downing, seconded by Emily Sisson, The Finance Committee voted 8-0-0 to recommend the content of Article 4 to Town Meeting as amended to specify Technology Security Upgrades. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Article 5 As there are no prior years' bills at this time, Article 5 is expected to be tabled Article 6 Article 6 requests that $39,000 for 40R smart growth projects, received from the state after April Town Meeting, be transferred from free cash to the Smart Growth Stabilization Fund. On a motion by Ed Ross, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend the substance of Article 6 to Town Meeting. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Article 7 Article 7 requests the adoption of Mass. General Law Chapter 40, Section 5B, which will allow 4011 Smart Growth funds received to be directly put into the Smart Growth Stabilization Fund. On a motion by Ed Ross, seconded by Mark Zarrow, the Finance Committee voted 8-0-0 to recommend the substance of Article 7 to Town Meeting. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Article 8 Page 1 3 Back in 2023, the Town started to receive funds from opiold settlements, which are required to be used for substance abuse programming, before there was legislation to allow the funds to go into a special revenue account. Legislation was eventually approved to setup a special revenue fund, and funds received In 2024 were able to be put directly into that fund. Funds received In 2023 that closed out to free cash, totaling $81,157, need to be transferred to the special revenue fund. On a motion by Ed Ross, seconded by John Sullivan, the Finance Committee voted 8-0-0 to recommend the substance of Article 8 to Town Meeting. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Article 9 Town Manager Matt Kraunells and Community Development Director Andrew MacNichol explained that Article 9 will be indefinitely postponed, as there might be possible additional funding for this project through a federal earmark and other grants. By April Town Meeting, the Town will have a better idea of the funding. Article 13 Article 13 requests $150,000 for the last phase of the Town Forest Thinning Project. On a motion by Geoffrey Coram, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the substance of Article 13 to Town Meeting. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Finance Committee reports to Town Meeting were assigned as follows: Ed Ross: Article 15 Joe Carnahan: Article 3 Joe McDonagh: Article 4 John Sullivan: Article 6 Marianne McLaughlin -Downing: Article 7 Mark Zarrow: Article 8 Geoffrey Coram: Article 13 Endri Kume: Article 5 (if needed) Community Development Director Andrew MacNichol Introduced the Eastern Gateway Steering Committee and provided an overview of the history of the project. The long-term intent of the Steering Committee is to bring the right stakeholders together, engage the whole community, and identify appropriate land use, transportation, and Infrastructure improvements in the area. The deliverables of the Steering Committee will Include policy recommendations to address the land uses Identified, and drawings of the site concepts and land use scenarios. Mr. MacNichol requested that a member of the Finance Committee participate on the Steering Committee. John Sullivan volunteered to be the Finance Committee's representative. On a motion by Ed Ross, seconded by Emily Sisson, the Finance Committee voted 8-0-0 to appoint John Sullivan as the ex -officio Finance Committee member to the Eastern Gateway Steering Committee. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow, - Yes, Joe Carnahan - Yes. Future Agendas. incluci na Financial Forum II The next meeting will be the Financial Forum to hear updates on the Killam School building project and the Reading Center for Active Living Center (ReCAL) building project. The Committee agreed to change the date from October 30 to November 6 if a meeting space is available. Page 14 Other future meeting agenda items include: a discussion on ways to manage cash reserves and the stabilization fund, an Introduction of the new Interim Director of Finance and Operations for the School Department, an introduction of the Assistant Chief Financial Officer/Treasurer, and a discussion of uses of the Burbank Ice Arena funds. Review and Approve Minutes from the September 18 2024 Meeting (Financial Forum I) Joe Carnahan shared some minor edits to the draft minutes to clarify the timing of a potential override, and the amount of free cash regeneration. On a motion by Geoffrey Coram, seconded by Ed Ross, the Finance Committee voted 8-0-0 to approve the meeting minutes of September 18, 2024 as amended. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. On a motion by Ed Ross, seconded by Marianne McLaughlin -Downing, the Finance Committee vote 8-0-0 to adjourn at 10:15 pm. Roll call vote: Emily Sisson - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe McDonagh - Yes, John Sullivan - Yes, Marianne McLaughlin -Downing - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Page 1 5