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Home My WebLink About2024-08-21 Finance Committee Packet Town of Reading Meeting Posting with Agenda 2018-07-16LAG Board -Committee -Commission -Council: Finance Committee Date: 2024-08-21Time: 7:00PM Building: Reading Town Hall Location: Select Board Meeting Room Address: 16 Lowell StreetAgenda: Revised Purpose:General Business Meeting Called By:Jacquelyn LaVerde on behalf of Chair Joe Carnahan Notices and agendas are to be posted 48 hours in advance of the meetings excluding operation and make necessary arrangements to be sure your posting is made in an adequate amount of time. A listing of topics that the chair reasonably anticipates will be discussed at the meeting must be on the agenda. All Meeting Postings must be submitted in typed format; handwritten notices will notbe accepted. Topics of Discussion: This meeting will be held in-person in the Town Hall Select Board Meeting Room and remotely via Zoom: Join Zoom Meeting https://us06web.zoom.us/j/84467456408 Meeting ID: 844 6745 6408 One tap mobile +16465189805,,84467456408# US (New York) +16465588656,,84467456408# US (New York) Dial by your location Find your local number: https://us06web.zoom.us/u/kbnd4QATXE AGENDA: Liaison Reports RMLD Financial Update o Energy considerations for building projects (e.g. Killam) Vote on FINCOM ReserveFundTransfer Liaison Assignments Approval of Prior Meeting Minutes Future Agendas *Revised Aug 08,2024 to add Vote on FINCOM Reserve Fund Transferagenda item Originally posted 3:13 pm, Aug 07, 2024 This Agenda has been prepared in advance and represents a listing of topics that the chair reasonably anticipates will be discussed at the meeting. However the agenda does not necessarily include all matters which may be taken up at this meeting. Page | 1 Financial Update Through 6/30/2024 Presented to Reading Finance Committee August 21, 2024 Finance and Accounting Milestones CY2025 Budget Preparation taking place Selected AP Software, and beginning to install 2% Net Plant Payments to all four towns issued totaling $945,988 processed in June Reading - $197,236 North Reading - $174,604 Lynnfield Center - $62,655 Wilmington - $511,494 Below-the Line Payment to Town of Reading totaling $1.269M processed in June Awarding of first grant Preliminary Cash Balances As of 6/30/2024 June Cash Balances Row LabelsSum of June Balance Restricted Cash$ 37,337,562.32 Cash-Construction Fund$ 4,723,698.00 Cash-Customer Deposits$ 1,803,910.84 Cash-Deferred Fuel Reserve$ 4,376,742.43 Cash-Depreciation Fund$ 13,343,399.12 Cash-EEC Reserves$ 2,324,716.37 $24,033,413.46 Cash-Hazard Waste Fund$ 750,000.00 Restricted Cash $37,337,562.32 Cash-Operating Fund Payable to Town$ 2,211,267.36 Restricted Investments Cash-Rate Stabilization$ 7,579,527.32 Unrestricted Cash Cash-Reserve Uncollectible Accounts$ 200,000.00 Cash-Sick Leave Benefits$ 24,300.88 $965,296.87 Restricted Investments$ 965,296.87 Sinking Fund-MKT Valuation - Sick$ 965,296.87 Unrestricted Cash$ 24,033,413.46 Cash-Operating Fund$ 24,029,913.46 Cash-Petty Cash$ 3,500.00 Grand Total$ 62,336,272.65 Preliminary Operating May financials have been provided to the board. Trending includes projected operating expenses through December. Budget vs. Actuals Average amount expended per month is approximately $8M Through 6/30/2024 As of 5/31/2024, we have spent $6.6M. $3.6M is inclusive of Preliminary Preliminary Capital Investigation Charges, or Construction Work in Progress Significant Milestone Payment for the New Wilmington Substation processed in Budget vs. Actuals May. Further payments in Q3 and Q4. Costs are Preliminary Investigative Charges Through 5/31/2024 Projects monthly Capital spend at $1.6M with the target spend $17.8M Outside Legal Services (6/30) DepartmentBudgetActualRemaining E&O Director$60,000 $4,368 $55,632 General Manager$40,000 $28,029 $11,971 Human Resources$28,000 $28,662 $(-662) Integrated Resources$136,800 $75,720 $61,080 Materials Management$160,000 $25,827 $140,173 Various (Other Areas)$176,000$0$176,000 Grand Total$600,800$162,606 $438,194 Total legal expenses down from June 2023 (which was $261,686) a difference of $99,080. Other Outside Services (6/30) DepartmentBudgetActualRemaining Accounting$45,000$41,625$3,375 E&O Director$82,400 $18,800 $63,600 Energy Services$60,000$3,989 $56,011 Engineering$130,000$30,710$99,290 Human Resources$54,000$41,004$12,996 MIS$100,000$38,066$12,996 Various (Other Areas)$171,000$0$176,000 Grand Total$642,400$174,192$468,208 Accounts Payables Automation (PairSoft) Current process is manually performed, with up to eight individual steps. Potential missing invoices, duplicates, and human errors present risks. We have selected PairSoft as our AP solution Currently our IT Group and Papersave Group are working to install the software on our platform Goal to have up and running by the fall. Grant Awards Grant Responses: Federal Highway Administration -$5.15M Grant for Level 2 and DC Fast Chargers was found to be favorable. Waiting for additional guidance back whether an award will be made. Executive Office of Public Safety -$35k Award for cyber security work Thank you! Finance Committee: Request for FY25 Reserve Fund Transfer To: FINCOM From: Matthew Kraunelis, Town Manager Date: August 8, 2024 It is respectfully requested that a transfer for $35,000 be made from the Reserve Fund to the accounts shown below, which is an unforeseen or extraordinary expense: F-4 Forestry Bucket Truck (FY-22 capital) Town Meeting approved $275k for this truck in FY-22 (acct. 16508584- 584405). Mike Hannaford placed the order with Taylor and Lloyd in April 2022. Mike created a purchase order (22003031) for the original amount of the quote of $258,523. Then about a year later Taylor and Lloyd tells us that the price of the truck is going to increase by $20k caused by increased costs by a sub-vendor. Jane Kinsella was able to work out an agreement in which the vendor would absorb $10k and the Town would pay an additional $10k bringing the final price of the truck to $268,523. On June 29, 2023, FinCom approved an additional $10k towards this truck. However, Chris Cole just realizing that a PO Maintenance was never done, and so the additional $10k was never encumbered and was returned to free cash. The truck was delivered on July 11, 2024. We are requesting the $10k so Taylor and Lloyd can get paid in full. F-5 Forestry Chipper/Loader Truck (FY-23 capital) Town Meeting approved $210k for this truck in FY-23 (acct. 16508585- 585434). Mike Hannaford had an order placed with Taylor and Lloyd for almost a year (PO 23004637), and then due to supply chain issues and a fire at one of their manufacturing facilities, the company was forced to cancel this order along with about 40 other orders from other Towns as they We were able to find another vendor however the cost has now increased by $100k. They also only guaranteed th To acquire the funding sooner than Nov. Town Meeting, would you be preferable to avoid any additional price increases. We are requesting an additional $125k from FINCOM reserves to cover the price difference and any additional further increases on this truck? Current FINCOM Reserve Fund balance: $200,000 Resulting balance if all items approved: $65,000 Town Manager Recommendation: Approve Disapprove Town Manager Signature: ________________________________ Date: August 8, 2024 By a vote of the FINCOM at a meeting held on August 21, 2024 the transfer(s) for the above purpose(s) in the amount of $135,000 was: Approved Denied by a vote of: ____________. Finance Committee _________________ Chair TOWN OF READING FINANCE COMMITTEE LIAISON ASSIGNMENTS - FY25 NAMELIAISON ASSIGNMENTS Audit Committee Killam School Building Committee Ed Ross ('22-'25; '28) Select Board Select Board Chair Joseph Carnahan ('24-'27; '33) Facilities Schools & School Committee Geoffrey Coram ('24-'27; '32) Public Safety Select Board Vice Chair Schools & School Committee Marianne Downing ('23-'26; '32) Charter Review Committee RMLD Administrative Services Endri Kume ('24-'27; '33) Public Works RMLD Library & Library Trustees Joseph McDonagh ('22-'25; '31) Reading Ice Arena Authority Public Services/Community Services Symonds Way Exploratory Committee Emily Sisson ('22-'25; '31) Public Safety Public Services/Community Development John Sullivan (`23-`26; `32) Reading Center for Active Living Committee Audit Committee Mark Zarrow ('23-'26; '29) Permanent Building Committee To contact the Finance Committee, email:finance@ci.reading.ma.us Ϋ5ĻƦğƩƷƒĻƓƷƭ ğƩĻ ǒƓķĻƩƌźƓĻķ Town of Reading Meeting Minutes 2016-09-22 LAG Board -Committee -Commission -Council: Finance Committee Date: 2024-07-24Time: 7:00PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell StreetSession: Open Session Purpose: General BusinessVersion: Draft Attendees:Members -Present: Joe Carnahan, Geoffrey Coram, Endri Kume, Joe McDonagh, Marianne McLaughlin-Downing, Ed Ross, Emily Sisson (remote), John Sullivan (remote), Mark Zarrow (remote) Members -Not Present: Others Present: Chief Financial Officer Sharon Angstrom (remote), Bill Callagy (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. Chair Ed Ross called the meeting to order at 7:03 pm. Roll call attendance: John Sullivan (remote), Emily Sisson (remote), Mark Zarrow (remote), Geoffrey Coram, Joe Carnahan, Endri Kume, Joe McDonagh, Marianne McLaughlin-Downing, Ed Ross. Appointment Update Mr. Ross congratulated Geoffrey Coram, Joe Carnahan,and Endri Kume on their reappointments to three-year terms. Liaison Reports Marianne McLaughlin-Downing shared that she signed on to the Massachusetts Municipal Association (MMA) presentation about financing geothermal projects. She noted there are tax credits through the Inflation Reduction Act and MassSaves that allows towns until 2032 to get direct money back towards certain energy improvements. MSBA has a similar incentive, but it may be something to consider for the new senior center. JoeCarnahan statedthat the Ice Arena Authority has turned over $3.5 million to the Town over 31 years. They just replaced the roof and depleted their reserves, so they will not be turning any money over this year. They explored whether to install solar panels, but decided against them, as they would void the warranty on the roof, and present challenges with snow removal. Emily Sisson stated that the pickleball community has raised a significant amount of funds, and is starting to explore options to repurpose, rebuild, or build new courts. Ms. Sisson noted it willappear on the capital plan at some point. Page | 1 Ms. McLaughlin-Downing reminded the Committee that the Community Planning Department will be hosting another meeting to address MBTA Communities. Killam Discussion and Pre-K Presentation from School Superintendent, Dr. Thomas Milaschewski Mr. Ross provided a Killam project update. The designers are well-versed in geothermal systems, and there has been a lot of talk about the Inflation Reduction Act and associated processes. The KSBC has narrowed down options for the building design. Because the Town included Pre-K as part of its application, the classroom space will be reimbursable. School Superintendent Dr. Milaschewski was not available this evening, but Mr. Ross summarized his presentation on the benefits of consolidating the Rise Pre-K program to Killam, as it will centralize resources, and free space at Wood End and the High School for other opportunities. Community Preservation Act (CPA) Update Joe Carnahan is the FINCOM representative to the CPA Study Committee. He compiled and shared information that he felt would be of interest to the Finance Committee. He Earlier adopters had the highest allowable 3% rate, and more recent adopters range from 0.5% to 1.5%. Reading attempted in 2002, but did not pass by a narrow margin. It was on the same ballot as a debt exclusion for the high school, which did pass. Mr. Carnahan shared that Chase Mack of the Community Preservation Coalition joined the Study Committee at their last meeting and provided a great deal of information, as well as guidance on when the best time would be to put CPA on the ballot, as he was negative about the prospect of getting it on the ballot for this November. Mr. Carnahan noted that the Study Committee will likely recommend against November, and ask the Select Board to extend their charge. He presented projected revenue that could be collected at a 0.5%, 1%, and 1.5% surcharge, and a range of estimates of what the CPA would cost Reading taxpayers. Vote to Reorganize Chief Financial Officer Sharon Angstrom opened nominations for Chair. Ed Ross nominated Joe Carnahan, which was seconded by Emily Sisson. Joe McDonagh nominated Marianne McLaughlin-Downing, which was seconded by Ed Ross. The Finance Committee voted alphabetically by last name, and Joe Carnahan was elected Chair by a vote of 7-2-0. Roll call vote: Ed Ross Yes, Marianne McLaughlin-Downing Yes, Joe McDonagh No, Endri Kume Yes, Joe Carnahan Yes, Geoffrey Coram Yes, John Sullivan Yes, Emily Sisson Yes, Mark Zarrow No. Chair Joe Carnahan then opened nominations for Vice Chair. Ed Ross nominated Marianne McLaughlin-Downing, which was seconded by Joe Carnahan. There were no other nominations. By a vote of 9-0-0, the Finance Committee elected Marianne McLaughlin-Downing as Vice Chair. Roll call vote: Ed Ross Yes, Marianne McLaughlin-Downing Yes, Joe McDonagh Yes, Endri Kume Yes, Joe Carnahan Yes, Geoffrey Coram Yes, John Sullivan Yes, Emily Sisson Yes, Mark Zarrow Yes. Mark Zarrow experienced sudden technical difficulties and was unable to vote on the following: Approve Prior Meeting Minutes May 28, 2024 Page | 2 On a motion by Ed Ross, seconded by Geoffrey Coram, the Finance Committee voted 8-0-0 to approve the meeting minutes of May 28, 2024 as presented. John Sullivan Yes, Emily Sisson Yes, Ed Ross Yes, Marianne McLaughlin- Downing Yes, Joe McDonagh Yes, Endri Kume Yes, Geoffrey Coram Yes, Joe Carnahan Yes. June 26, 2024 On a motion by Marianne McLaughlin-Downing, seconded by Emily Sisson, the Finance Committee vote 7-0-1 to approve the meeting minutes of June 26, 2024, with Endri Kume abstaining, as he was not present at the meeting. John Sullivan Yes, Emily Sisson Yes, Ed Ross Yes, Marianne McLaughlin- Downing Yes, Joe McDonagh Yes, Endri Kume Abstain, Geoffrey Coram Yes, Joe Carnahan Yes. FY25 Meeting Schedule/Next Meeting Dates /Future Agenda Items The Committee reviewed the proposed FY25 meeting schedule. th At the first Financial Forum on September 18, CFO Sharon Angstrom will present projections of accommodated costs and revenues, and if available, free cash estimates. st At the next meeting on August 21, the Committee will discuss liaison assignments. Mr. st Kume volunteered to contact RMLD and invite them to the August 21 meeting for a financial update and a discussion on potential borrowing. Mr. Carnahan will contact RCTV and ask if there is anything they would like to speak to FINCOM about. th The second Financial Forum on October 30 will be a continuation of the capital project series, when more will be known about the Killam School project, and the Senior Center (ReCAL) On a motion by Ed Ross, seconded by Marianne McLaughlin-Downing, the Finance Committee voted 8-0-0 to adjourn at 8:25 pm. Roll call vote: John Sullivan Yes, Emily Sisson Yes, Ed Ross Yes, Marianne McLaughlin-Downing Yes, Joe McDonagh Yes, Endri Kume Yes, Geoffrey Coram Yes, Joe Carnahan Yes. Page | 3