HomeMy WebLinkAbout2024-07-24 Finance Committee Packet
Town of Reading
Meeting Posting with Agenda
2018-07-16LAG
Board -Committee -Commission -Council:
Finance Committee
Date: 2024-07-24Time: 7:00PM
Building: Reading Town Hall Location: Conference Room
Address: 16 Lowell StreetAgenda:
Purpose:General Business
Meeting Called By:Jacquelyn LaVerde on behalf of Chair Ed Ross
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 Conference Room and remotely via Zoom:
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AGENDA:
Appointment Update
Liaison Reports
Community Preservation Act (CPA)Update
Killam Discussion and Pre-K Presentation from School Superintendent,Dr. Thomas
Milaschewski
Vote to Reorganize
Approve Prior Meeting Minutes
1.May 28, 2024
2.June 26, 2024
FY25 Meeting Schedule/Next Meeting Dates /Future Agenda Items
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.
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Town of Reading
Meeting Minutes
2016-09-22 LAG
Board -Committee -Commission -Council:
Finance Committee
Date: 2024-05-28Time: 7:00PM
Building: Reading Public LibraryLocation: Community Room
Address: 64 Middlesex AvenueSession: Forum
Purpose: Financial ForumVersion: Draft
Attendees:Members -Present:
Chair Ed Ross, Vice Chair Joe Carnahan, Geoffrey Coram, Endri Kume, Joe
McDonagh, Marianne McLaughlin-Downing, Emily Sisson, John Sullivan
Members -Not Present:
Mark Zarrow
Others Present:
Select Board Members: Chair Carlo Bacci, 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 Superintendent Tom Milaschewski,
Chief Financial Officer Sharon Angstrom, Director of Operations Jayne
Wellman; Director of Facilities Joe Huggins(remote), Assistant Director of
Facilities Kevin Cabuzzi(remote), Mollie O'Keeffe -RMLD (remote),
Elder/Human Services Administrator Chris Kowaleski, Tom Wise, Angela
Binda, Jeffrey Dietz, Karen Janowski, Sandy Matathia, Rosemarie
Debenedetto, Patrick Egan, Marilyn Shapleigh, Nancy Ziemlak, John Sasso,
Michael Coltman, Nancy Docktor, Erin Gaffen,Beth Mosier (remote), Judy
(remote), Kendrick See (remote), Eric (remote), Linda Snow Dockser
(remote), Neil Gillis (remote), Ron Assini (remote), Steve Martullo (remote),
Kate Harrington (remote), Mary Anne Kieran (remote), Barbara (remote),
Karen Pinette (remote), David Swyter (remote), Charlotte (remote), Carolyn
Johnson (remote), Jeanne Thomases (remote)
Minutes Respectfully Submitted By:Jacquelyn LaVerde
Topics of Discussion:
This meeting was held in-person in the LibraryCommunity Room and remotely via Zoom.
Chair Ed Ross called the meeting to order at 7:03 pm.
The Select Boardwascalled to order at 7:03 pm.
The Killam School Building Committeewascalled 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 capital projects that will
come before voters in the near future. He set the expectations for the evening and noted
that costs for these projects are not yet available. This discussion is to lay the education
foundation and demystify the process of what goes into Town projects.
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Town Finance 101:
Chief Financial Officer Sharon Angstrom reviewed the Finance Committee Debt and Capital
Policy that says 5% of revenue each year is devoted to debt and capital. Debt should be
spread out so that it does not exceed the life of the asset, should be borrowed for the
shortest possible term, and projects over $5 million are encouraged 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 to Town Meeting
twice per year, and is reviewed quarterly by department heads.
Ms. Angstrom provided an overview of Proposition 2 ½, which means the tax levy cannot be
raised over the prior year more than 2 ½%. There are two types of ballot votes to allow the
levy to be raised more than 2 ½%: an override, which is a permanent increase to 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 future 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 FY25. 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 to add excluded debt.
Killam School Building Project Overview:
Killam School Building Committee (KSBC) Chair Carla Nazzaro explained how Reading was
invited into the Massachusetts School Building Authority (MSBA) program for a new Killam
School. The program will provide tens of millions of dollars in reimbursement. The MSBA
has a very strict protocol and process that Reading is following for the Killam School.
Through the MSBA process, the Killam School Building Committee was formed, Colliers was
and Lavallee Brensinger Architects (LBA) was hired as the project architect. There are eight
modules in the MSBA process. Reading is currently in Module three, the feasibility study,
and will move into the schematic design module soon. A milestone Preliminary Design
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Program (PDP) submission was made on May 20. By the end of August, we should have a
preferred design. The debt exclusion is expected to go to the voters next May.
Ms. Nazzaro provided a project update. The school is going to be built around the students,
community centered, will be built with responsible sustainability, 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 project charter, created a sustainability
working group, conducted school visits to 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 structural and site
existing conditions. Ms. Nazzaro outlined the upcoming KSBC meetings and community
meetings and noted that an initial range of construction costs related to the different
alternatives, not total project costs, will be presented at the community meeting on July
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15. The final number for the total project will be expected in the spring of 2025.
Senior/Community Center Project Overview:
Select Board 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 study was conducted that provided recommendations to improve the Pleasant
Street Center, accessibility, and programming. ReCALC was formed in 2021 to assess the
needs of senior community. BH+A was hired in 2023 to conduct a feasibility
study for a new or renovated Senior Center/Center for Active Living. He reviewed the site
selection process, and the three town-owned parcels identified as viable: the current Senior
Center on Pleasant Street, Oakland Road, and Symonds Way. The current preferred site is
Symonds Way. ReCALC has engaged the Permanent Building Committee to provide their
expertise before the site is selected. The preliminary cost estimate is between $25 million
and $30 million. The site selection recommendation is expected this summer, and the
Permanent Building Project Committee formation is planned for June/July 2024.
Coordination with other Town projects and priorities, community engagement, and
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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.
Community Preservation Act Overview:
Select Board Chair Carlo Bacci presented information on the Community Preservation Act
(CPA). Money collected from CPA can be used for open space and recreation, historic
preservation, and affordable housing. A study committee has been established and will hold
its first meeting tomorrow 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 matching
funds to money collected each year. The average home value in Reading is $855,000, and
with the $100,000 exemption, a 1% surcharge would add an estimated $84 to the average
tax bill annually. More than half of the cities and towns in Massachusetts have adopted
CPA.
Mr. Bacci reviewed examples of what CPA funds could be used for, provided a summary of
the steps needed to adopt CPA, and explained the CPA Committee that is formed once it is
adopted. The study committee was created later than anticipated. The goal was to get CPA
on the November ballot, but there may not be enough time. The study committee will take
the time needed to conduct its review.
Marianne McLaughlin-Downing asked for clarification if the surcharge would be applied
before debt exclusions, or include the debt exclusions. Mr. Carnahan explained that it does
not appear to exclude the debt exclusions.
Discussion on Future Financial Forum/Project Update Series Meeting Dates:
Mr. Ross thanked all the presenters. He stated that progress will continue to be made on
these projects, and more will be known around August and September. Another Capital
Project Financial Forum will be scheduled in September.
The Killam School Building Committee and Select Board adjourned at 9:24 pm.
Approval of Prior Meeting Minutes:
On a motion by Emily Sisson, seconded by Joe 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 8-0-0 to adjourn at 9:26 pm.
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Town of Reading
Meeting Minutes
2016-09-22 LAG
Board -Committee -Commission -Council:
Finance Committee
Date: 2024-06-26Time: 7:00PM
Building: Reading Town Hall Location: Conference Room
Address: 16 Lowell StreetSession: Open Session
Purpose: General BusinessVersion: Draft
Attendees:Members -Present:
Chair Ed Ross (remote), Vice Chair Joe Carnahan, Geoffrey Coram, Joe
McDonagh, Marianne McLaughlin-Downing, John Sullivan (remote), Mark
Zarrow
Members -Not Present:
Endri Kume, Emily Sisson
Others Present:
Town Manager Matt Kraunelis, Chief Financial Officer Sharon Angstrom, DPW
Director Chris Cole, Jack Devir (remote)
Minutes Respectfully Submitted By:Jacquelyn LaVerde
Topics of Discussion:
This meeting was held in-person in the Conference Room of Town Hall and remotely via
Zoom.
Chair Ed Ross called the meeting to order at 7:01 pm.
Roll call attendance: Geoffrey Coram, Mark Zarrow, Joe Carnahan, Marianne McLaughlin-
Downing, Joe McDonagh, John Sullivan (remote), Ed Ross (remote).
Liaison Reports:
Geoffrey Coram shared that the School Committee met last week, reviewed their end of
year budget, and discussed how much they would return to the Town, versus how much
they would put into prepaying special education tuition. They plan toreturn somewhere
between $50,000 and $75,000 to free cash. The Committee also reorganized, where Tom
Wise was reelected as Chair. Vice Chair Erin Gaffen was not present for the meeting, so
they postponed voting for a new Vice Chair until the next meeting so the Committee could
ask her whether she wants to be Vice Chair again.
Mark Zarrow attendedthe AuditCommittee for RMLD. RMLD has no debt and has anAA
bond rating. They do not generate their own electricity, but hope to do so in the future, and
may need to take on debt to accomplish that.
Joe Carnahan stated that the Community Preservation Study Committee has been meeting.
The goal was to get the CPA on the November ballot. However, the CPA Study Committee
discussed other timetables, because November seems too aggressive. The CPAStudy
Committee will be gettinga presentation from the Community Preservation Coalition at their
th
nextmeeting on July 9.
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Marianne McLaughlin-Downing stated that at their last meeting, the Select Board voted to
raise water rates by 3.75%, and
discussion of tiered water rates, where they opted to keep the rates by a split 3-2 vote, and
asked if the software can be adapted for multi-unit buildings. She noted that the Select
Board is allowing the Symonds Way Exploratory Committee to sunset, and converting the
Reading Center for Active Living Committee (ReCALC) to a building committee.
John Sullivan also noted that ReCALC will be sunsetting in favor of the building committee.
CPDC is continuing work on MBTA Communities, held a public hearing in June, and is
planning other engagement dates in July.
Ed Ross shared an update from the Killam School Building Committee. The Committee has
engaged with an outside vendor to create educational videos that describe the MSBA
process and tailor it to the community. The project design team has provided nine different
design scenarios. The next benchmark is coming up in August.
FINCOM Reserve Transfers:
Chief Financial Officer Sharon Angstrom stated that she is requesting a $70,000 transfer
from the Finance Committee Reserves. The request is precautionary, and the funds might
not even be needed, but the request is to ensure some line items do not go into a deficit.
There were some lines in DPW that were in a small deficit: $20,000 for Highway Patch to fix
potholes, and $25,000 for Highway Parts & Maintenance for repairs to trucks and vehicles.
Most expenses are likely already encumbered, but Ms. Angstrom stated that she felt it
would be safer to ask for the transfer just in case there were any other unexpected
expenses. Included in the transfer request was $25,000 for Water Debt Service because
funds were temporarily borrowed for the Auburn Street Water Tank, and they were not
included on the debt schedule. However water has a lot of savings, and the request was
still precautionary. If the funds are not needed, they will be returned to free cash.
On a motion by Joe Carnahan, seconded by Mark Zarrow, the Finance Committee
voted 7-0-0 to approve the proposed request for the Finance Committee Fiscal
Year 2024 reserve transfer in the amount of $70,000 as presented.
Roll call vote: Joe Carnahan Yes, Joe McDonagh Yes, Mark Zarrow Yes,
Marianne McLaughlin-Downing Yes, Geoffrey Coram Yes, John Sullivan Yes,
Ed Ross Yes.
Discuss FY25 Meeting Schedule:
The Committee reviewed a draft meeting schedule for FY25. A similar Financial Forum
addressing Town projects that was held in May will be held in September. The Committee
will meet in July to reorganize. Mr. Ross asked the Committee members what other items
they would like to address at future meetings. Suggested topics include an update from
RMLD, and an update on RCTV and PEG payments. Suggested topics for Financial Forums
include a discussion on revenue projections and potential scenarios that might lead to an
override.
Future Meeting Dates and Agenda Items:
th
The Committee agreed to hold the next meeting on July 24. At that meeting, they will
discuss setting the Financial Forum Schedule, reorganize, and possibly receive an update
from RMLD.
On a motion by Joe Carnahan, seconded by Mark Zarrow, the Finance Committee
voted 7-0-0 to adjourn at 8:15 pm.
Roll call vote: Joe Carnahan Yes, Joe McDonagh Yes, Mark Zarrow Yes,
Marianne McLaughlin-Downing Yes, Geoffrey Coram Yes, John Sullivan Yes,
Ed Ross Yes.
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TOWN OF READING
FINANCE COMMITTEE
DRAFT MEETING SCHEDULE - FY25
ЋЉЋЍ LocationTime
July 24thFINCOM: Regular MeetingTown Hall7:00 PM
August 21stFINCOM: Regular MeetingTown Hall7:00 PM
September 18thFinancial Forum ITBD7:00 PM
Vote on Recommendations/Guidance for FY26 Budget
October 9thTown Hall7:00 PM
Vote on Warrant Articles for November Subsequent Town Meeting
October 30thFinancial Forum IITBD7:00 PM
November 6thFINCOM: Regular Meeting (if needed)Town Hall7:00 PM
November 12thSubsequent Town Meeting IRMHS PAC7:30 PM
November 14thSubsequent Town Meeting IIRMHS PAC7:30 PM
November 18thSubsequent Town Meeting IIIRMHS PAC7:30 PM
November 21stSubsequent Town Meeting IVRMHS PAC7:30 PM
December 4thTown FY26 Budget Meeting with Select BoardTown Hall7:00 PM
December 10thTown FY26 Budget Meeting with Select BoardTown Hall7:00 PM
TBDSchool FY26 Budget Meeting with School CommitteeRMHS Library
ЋЉЋЎ
TBDSchool FY26 Budget Night 1RMHS Library
TBDSchool FY26 Budget Night 2RMHS Library
TBDSchool Public Hearing: FY26 BudgetRMHS Library
TBDSchool FY26 Budget Final VoteRMHS Library
February 26thFINCOM: School BudgetTown Hall7:00 PM
March 5thFINCOM: Town BudgetsTown Hall7:00 PM
March 12thFINCOM: Town Budgets (continued), Vote Budgets & TM ArticlesTown Hall7:00 PM
March 19thFINCOM: Vote Budgets & TM Articles (if needed)Town Hall7:00 PM
April 8thTown ElectionRMHS Field House
April 28thAnnual Town Meeting IRMHS PAC7:30 PM
May 1stAnnual Town Meeting IIRMHS PAC7:30 PM
May 5thAnnual Town Meeting IIIRMHS PAC7:30 PM
May 8thAnnual Town Meeting IVRMHS PAC7:30 PM
June 25thFINCOM: Year-End Meeting (if needed)Town Hall7:00 PM