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HomeMy WebLinkAbout2023-09-20 Finance Committee - Financial Forum Packet Town of Reading Meeting Posting with Agenda 2018-07-16LAG Board -Committee -Commission -Council: Finance Committee Date: 2023-09-20Time: 7:00PM Building: Reading Public LibraryLocation: Community Room Address: 64 Middlesex AvenueAgenda: Revised Purpose:Financial Forum 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 Saturdays, Sundays and Legal Holid 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: The Financial Forum will be held in-person in the Community Room of the Reading Public Library, and remotely via Zoom: WƚźƓ œƚƚƒ aĻĻƷźƓŭ ŷƷƷƦƭʹΉΉǒƭЉЏǞĻĬ͵ǩƚƚƒ͵ǒƭΉƆΉБЎЍВЌЌВЍЎЉЎ aĻĻƷźƓŭ L5ʹ БЎЍ ВЌЌВ ЍЎЉЎ hƓĻ ƷğƦ ƒƚĬźƌĻ њЊЏЍЏЎЎББЏЎЏͲͲБЎЍВЌЌВЍЎЉЎϔ { ΛbĻǞ —ƚƩƉΜ њЊЏЍЏЎЊБВБЉЎͲͲБЎЍВЌЌВЍЎЉЎϔ { ΛbĻǞ —ƚƩƉΜ 5źğƌ ĬǤ ǤƚǒƩ ƌƚĭğƷźƚƓ Find your local number: https://us06web.zoom.us/u/kb6EnvhLQk AGENDA: Presenter(s) ƚƦźĭ Killam School PresentationKillam School Building Committee Financial Updates: -Revenue Update -Free Cash Update Chief Financial OfficerSharon Angstrom -FY25 AccommodatedCosts -FY25 Operating Budgetsunder Free Cash Scenarios School Superintendent Tom Milaschewski & FY25 School Finance Overview Finance Director of Schools Derek Pinto 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 Town of Reading Meeting Posting with Agenda Discussion on Free Cash Usage in FY25 BudgetsChief Financial OfficerSharon Angstrom Presentation Pickleball Players Association on Potential Reading Pickleball Players Association Citizens Petition for Burbank Ice Arena Future Meeting AgendasFinance Committee Approve Prior Meeting Minutes Finance Committee -August 23, 2023 *Revised September 18, 2023to add Pickleball presentation. Originally postedSeptember 13, 2023 at4:53 pm. 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 | 2 Reading J. Warren Killam Elementary School July 17, 2023 Prepared by: Colliers Project Leaders Accelerating success. MSBA Modules Modules 1: Eligibility Period 2: Forming the Project Team 3: Feasibility Study 4: Schematic Design 5: Project Funding 6: Detailed Design 7: Construction 8: Project Completion 9: Post Occupancy Evaluation Currently working on Modules 2-4 MSBA Modules Modules 1: Eligibility Period 2: Forming the Project Team 3: Feasibility Study 4: Schematic Design 5: Project Funding 6: Detailed Design 7: Construction 8: Project Completion 9: Post Occupancy Evaluation Currently working on Modules 2-4 Our Schedule Requested in the RFP 20-24 Months Our Schedule 3.5 Months -Mod 2 8.0 Months -Mod 3 7.0 Months -Mod 4 7.0 Months -Mod 5* *Overlap of 4 & 5 = 5 months 20.5 Months -Overall Schedule Module 2 Selecting the Team / Designer Selection StartFinish Next Steps Dates ActionItems 09/13/2023 Designer Ad on Central Register 09/22/2023 Site Walk 10/11/2023 Applications due to District 10/19/2023 Applications due to MSBA 11/07/2023 DSP Selection Panel Meeting to Select Shortlist 11/21/2023 Designer Interviews 11/30/2022 Award Contract ** Designer selection panel meeting dates 08/0808/2209/12 10/0310/1711/07 11/2112/0512/19 Thank you! Town of Reading Financial Forum September 20, 2023 Financial Forum Agenda September 20, 2023 FINCOM Opening Remarks Chair Edward Ross Killam School Presentation-Killam School Building Committee Financial Updates Revenue Update Sharon Angstrom Free Cash Update Sharon Angstrom FY25+ Accommodated Costs Sharon Angstrom FY25+ Operating Budgets under Free Cash Scenarios Sharon Angstrom FY25 School Finance Overview Tom Milaschewski and Derek Pinto Discussion about Free Cash Usage in FY25 Budgets FINCOM Citizens Petition for Burbank Ice Arena Pickleball Players Association FINCOM meeting in October agenda items? Approve Minutes FINCOM Closing Remarks Edward Ross FY25 Revenues Property Taxes$ 89.0 mil. +1.9% Baseline levy $87.62 mil.+ 3.7% New Growth$ .95 mil.+ 0.0% Excluded debt $ 1.28 mil. -52.4% Abate/Exempt -$ 0.85 mil.+ 2.5% Other Local Rev. $ 9.5 mil. +11.2% State Aid $15.9 mil. +2.5% Other $ 4.4 mil. +1.8% Free Cash TBD Projected FY23FY24FY25 FY23-25 Revenues ($ millions) 108.80113.26117.78 Revenues excluded debt impact 2.732.691.28 111.53115.95119.06 4.0%3.96%2.68% Free Cash used 3.233.28TBD Revenues + Free Cash114.76119.23 3.7%3.9% 5 Year Free Cash Analysis (millions) FY19FY20FY21FY22FY23 (est.) Certified Beg. Bal. at $11.01$15.64$14.79$17.73$19.93 7/1 Revenue over budget 2.99.931.692.614.59 Expenses under 3.202.943.032.481.72 budget Use of Free Cash -1.0-4.13-2.95-3.67-6.57 Other Adj. to Free -.56-.59-1.2.78-.35 Cash Certified Bal at 6/30 $15.64$14.79$17.73$19.93$19.32 FY23 Revenues Total $4.59 million over estimates Investment Income +$2.74mill Property Taxes+$205k Penalties & Interest +$134k Meals Taxes+$111k Payment in Lieu of Taxes+$ 44k Motor Vehicle Excise taxes-$ 30k *Delinquent taxes +$738k *Miscellaneous<$100k each+$437k *Medicaid Reimb. +$ 65k *Local Assistance/Other State Rev.+$ 55k mostly sustainable + $3.23 million *one-time payments + $1.29 million FY23 Expenditures Total $1.72 million under budget Employee Benefits-$ 97k Capital Expenses-$126k FINCOM Reserves-$190k Snow & Ice-$ 23k Street Lighting -$ 14k $ .45 mill. Schools -$ 101k $ .10 mill. Town Salaries(PS, PW, & Pub Safety vacancies)-$609k Town Salaries (All Other Departments)-$140k Various Town Expense Accounts-$426k $1.17 mill. Projected FY24-26 Accommodated Costs (millions) C—ЋЍC—ЋЎ/ŷğƓŭĻC—ЋЏ/ŷğƓŭĻ Accommodated Costs43. 47744.3902.10%44.588.4% .ĻƓĻŅźƷƭЋЉ͵ЏБЋЋЊ͵БВЋЎ͵БіЋЌ͵ЉЎЉЎ͵Ќі /ğƦźƷğƌ ε 5ĻĬƷВ͵ЉЉЎА͵БЍБΏЊЋ͵БіЏ͵ЊЌАΏЋЊ͵Бі 9ƓĻƩŭǤЋ͵ЋВЊЋ͵ЎЏЌЊЊ͵ВіЋ͵ЏЌБЋ͵Ві CźƓğƓĭźğƌЊ͵ЊЌЋЊ͵ЊАЉЌ͵ЍіЊ͵ЋЉЉЋ͵Џі 9ķǒĭğƷźƚƓ Ώ{t95 hh5Ў͵БЉЌЏ͵ЉЌЎЍ͵ЉіЏ͵ЋААЍ͵Љі 9ķǒĭğƷźƚƓΏƚĭ͵Љ͵ВЉЎЊ͵ЊЍЊЋЏ͵ЊіЊ͵ЊБАЍ͵Љі aźƭĭ͵ ε /ƚƒƒ tƩźƚƩЌ͵ЏЎВЌ͵АЍЉЋ͵ЌіЍ͵ЊЉЉЊЉ͵Љі Projected FY24-26 Benefits (millions) FY24FY25ChangeFY26Change Benefits20.68321.8925.8%23.0504.5% wĻƷźƩĻƒĻƓƷЏ͵ЊБЉЏ͵ЏБВБ͵ЌіА͵ЋЍЋБ͵Ќі ht9.Љ͵ЎЉЉЉ͵ЎЉЉЉ͵ЉіЉ͵ЎЉЉЉ͵Љі ‘ƚƩƉĻƩ /ƚƒƦЉ͵ЌВЉЉ͵ЍЉЉЋ͵ЏіЉ͵ЍЉЎЊ͵Ќі ƓĻƒƦƌƚǤƒĻƓƷЉ͵ЉАЎЉ͵ЊЋЉЏЉ͵ЉіЉ͵ЊЋЉЉ͵Љі IĻğƌƷŷΉ\[źŅĻ LƓƭ͵ЊЋ͵ЌВБЊЌ͵ЉЊБЎ͵ЉіЊЌ͵ЏЉЌЍ͵Ўі aĻķźĭğƩĻΉ{ƚĭ {ĻĭЊ͵ЉЉЎЊ͵ЉЋЎЋ͵ЉіЊ͵ЉЌЎЊ͵Љі tƚƌźĭĻΉCźƩĻ LƓķĻƒЉ͵ЊЌЎЉ͵ЊЍЉЌ͵АіЉ͵ЊЍЎЌ͵Џі Projected FY24-26 Capital + Debt (millions) FY24FY25ChangeFY26Change Capital/Debt9.0057.848-12.8%6.137-21.80% Capital 2.9383.0303.1%3.1794.9% Debt inside levy3.3813.5384.0%2.958-6.6% Excluded Debt2.6861.279-52.4%- FY25 Free Cash FY25 Free Cash to Usage support Free Cash Increase to Total Free Operating Usage for extra Operating Cash Usage (note that BudgetCapitalBudgets ($millions) approx. ~$700k υЌ͵ЊЎυЋ͵ЍЎυЉ͵АЉЋ͵ЎЉі is directed at υЌ͵ЌЌυЋ͵ЏЌυЉ͵АЉЋ͵АЎі υЌ͵ЎЋυЋ͵БЋυЉ͵АЉЌ͵ЉЉі υЌ͵АЉυЌ͵ЉЉυЉ͵АЉЌ͵ЋЎі υЌ͵БВυЌ͵ЊВυЉ͵АЉЌ͵ЎЉі υЍ͵ЉБυЌ͵ЌБυЉ͵АЉЌ͵АЎі υЍ͵ЋЏυЌ͵ЎЏυЉ͵АЉЍ͵ЉЉі υЍ͵ЍЎυЌ͵АЎυЉ͵АЉЍ͵ЋЎі FY25 Budget Public Meetings September 20Financial Forum I October 11Recommendations/Guidance for FY25 Budget Vote Items for November Town Meeting FINCOM October 25Financial Forum II November 1Regular Meeting (if needed) Dec 5, 6 & 12Attend Select Board Meetings January 4, 11, 18 & 25Attend School Committee Edward Ross, February 21FINCOM: School budget February 28FINCOM: Town budgets March 6 & 13FINCOM: Vote Budgets & TM FINCOM Chair Articles January 31Charter: School Committee Budget to Town Manager February 28Charter: Balanced TM Budget to FINCOM 4.00%3.25%2.75%2.75% Town of Reading Budget Summary One YrOne YrOne YrOne Yr 9/18/23 1:01 PMProjectedChngProjectedChngProjectedChngProjectedChng FY24FY24FY25FY25FY26FY26FY27FY27 Revenues Total Property Taxes87,348,4193.5%89,008,5641.9%90,947,0862.2%94,270,7633.7% Total Other Local Revenues8,750,00012.3%9,731,00011.2%10,310,0006.0%10,891,0005.6% Total Intergov't Revenues15,545,0302.5%15,933,6562.5%16,331,9972.5%16,740,2972.5% Total Transfers & Available4,309,2893.1%4,385,5891.8%4,472,1272.0%4,561,9662.0% Revs before Free Cash$ 115,952,7383.96%$ 119,058,809 2.68%$ 122,061,2102.52%$ 126,464,027 3.61% Free Cash2,580,0001.6%3,000,00016.3%3,200,0006.7%3,350,0004.7% Extra for Capital700,0002.0%700,0000.0%0-100%0-100% Net Available Revenues$ 119,232,7383.90%$ 122,758,809 2.96%$ 125,261,2102.04%$ 129,814,027 3.63% Accommodated Costs Benefits20,682,6884.3%21,892,1925.8%23,049,9015.3%24,252,5745.2% Capital2,938,000-4.8%3,030,0003.1%3,179,0004.9%3,221,0001.3% Debt (inside levy)3,380,6944.0%3,538,3634.7%2,958,275-16.4%3,104,8505.0% Debt (excluded)2,686,112-1.5%1,279,700-52.4%0-100.0%0 Energy2,290,70012.0%2,563,80011.9%2,637,5582.9%2,723,9893.3% Financial1,132,0003.7%1,170,0003.4%1,200,0002.6%1,226,1252.2% Education - Out of district5,803,2004.0%6,035,3284.0%6,276,7414.0%6,527,8114.0% Education - Vocational904,8004.0%1,140,99226.1%1,186,6324.0%1,234,0974.0% Miscellaneous3,508,8052.3%3,589,8222.3%3,949,60210.0%4,332,0389.7% Community Priorities150,0000.0%150,0000.0%150,0000.0%150,0000.0% Accommodated Costs$ 43,476,9993.72%$ 44,390,197 2.10%$ 44,587,7090.44%$ 46,772,484 4.90% Net Accommodated Costs$ 43,476,9993.72%$ 44,390,197 2.10%$ 44,587,7090.44%$ 46,772,484 4.90% $ 2,822$ 904 $ 680$ 220 Operating Costs Municipal Gov't Operating 26,457,5374.00% 27,317,406 3.25% 28,069,6882.75% 28,841,604 2.75% adjustments 1,025 adjustments (EF+RF) 1,243,8824.00% 1,284,308 3.25% 1,319,6272.75% 1,355,916 2.75% TOTAL Muni Govt OPER 27,701,4194.00% 28,602,739 3.25% 29,389,3152.75% 30,197,521 2.75% School Operating 48,051,4984.00% 49,613,171 3.25% 51,133,5062.75% 52,693,802 2.75% adjustments 151,798 150,000 150,000 TOTAL School OPER 48,051,4984.00% 49,764,969 3.57% 51,283,5063.05% 52,843,802 3.04% Operating Budgets$ 75,752,9164.00%$ 78,367,708 3.45%$ 80,672,8202.94%$ 83,041,323 2.94% Municipal Gov't Operating36.6%36.5%36.4%36.4% School Operating63.4%63.5%63.6%63.6% TOTAL SPENDING$ 119,229,9153.90%$ 122,757,905 2.96%$ 125,260,5292.04%$ 129,813,806 3.64% Muni Govt OPER$ 27,701,4194.00%$ 28,602,739 3.25%$ 29,389,3152.75%$ 30,197,521 2.75% Muni Govt ACCOM$ 5,931,9506.17%$ 6,304,078 6.27%$ 6,747,1277.03%$ 7,221,119 7.03% Muni Govt TOTAL$ 33,633,3694.38%$ 34,906,817 3.79%$ 36,136,4423.52%$ 37,418,639 3.55% School OPER$ 48,051,4984.00%$ 49,764,969 3.57%$ 51,283,5063.05%$ 52,843,802 3.04% School ACCOM$ 5,803,2004.00%$ 6,035,328 4.00%$ 6,276,7414.00%$ 6,527,811 4.00% School TOTAL$ 53,854,6984.00%$ 55,800,297 3.61%$ 57,560,2473.15%$ 59,371,613 3.15% Town of ReadingOne YrOne YrOne YrOne Yr Revenues - Details ProjectedChngProjectedChngProjectedChngProjectedChng 9/18/23 1:01 PMFY24FY24FY25FY25FY26FY26FY26FY26 Property Taxes Tax levy (within levy limit)84,536,3013.7%87,623,4593.7%90,787,7953.6%94,108,1153.7% New Growth950,0003.7%950,0000.0%1,025,0007.9%1,050,0002.4% Tax levy (debt exclusion) 2,686,112-1.5% 1,279,700-52.4% --100.0% -#DIV/0! Abatements and exemptions(823,995)2.5%(844,595)2.5%(865,709)2.5%(887,352)2.5% Total Property Taxes87,348,4193.5%89,008,5641.9%90,947,0862.2%94,270,7633.7% Other Local Revenues Motor Vehicle Excise4,000,0001.4%4,250,0006.3%4,500,0005.9%4,750,0005.6% Meals Tax515,00017.0%565,0009.7%590,0004.4%630,0006.8% Penalties/interest on taxes350,00029.6%380,0008.6%400,0005.3%420,0005.0% Payments in lieu of taxes435,0008.7%465,0006.9%480,0003.2%495,0003.1% Charges for services2,350,00010.6%2,560,0008.9%2,755,0007.6%2,950,0007.1% Licenses & permits165,0000.0%175,0006.1%185,0005.7%200,0008.1% Fines80,0000.0%86,0007.5%90,0004.7%95,0005.6% Interest Earnings700,000197.9%1,085,00055.0%1,140,0005.1%1,176,0003.2% Medicaid Reimbursement155,00019.2%165,0006.5%170,0003.0%175,0002.9% Total Other Local Revenues8,750,00012.3%9,731,00011.2%10,310,0006.0%10,891,0005.6% Intergovernmental Revenue State Aid15,545,0302.5%15,933,6562.5%16,331,9972.5%16,740,2972.5% Total Intergov't Revenues15,545,0302.5%15,933,6562.5%16,331,9972.5%16,740,2972.5% Operating Transfers and Available Funds Cemetery sale of lots25,0000.0%25,0000.0%25,0000.0%25,0000.0% RMLD payment2,587,0002.4%2,625,0001.5%2,677,5002.0%2,731,0502.0% Enterprise Fund Support1,243,8824.0%1,284,3083.3%1,319,6272.8%1,355,9162.8% School Revolving Funds100,0000.0%100,0000.0%100,0000.0%100,0000.0% Premiums Reserve for Debt3,407-34%1,281-62%0-100%0#DIV/0! Overlay surplus350,0007.7%350,0000.0%350,0000.0%350,0000.0% Total Transfers & Available4,309,2893.1%4,385,5891.8%4,472,1272.0%4,561,9662.0% OPERATING REVENUES115,952,7383.96%119,058,8092.68%122,061,2102.52%126,464,0273.61% Free Cash3,280,0001.7%3,280,0000.0%2,600,000-20.7%2,600,0000.0% TOTAL REVENUES119,232,7383.90%122,338,8092.61%124,661,2101.90%129,064,0273.53% Town of Reading Acc. Costs - Summary One YrOne YrOne YrOne Yr 9/18/23 1:01 PMProjectedChngProjectedChngProjectedChngProjectedChng FY24FY24FY25FY25FY26FY26FY26FY26 Benefits 20,682,688 4.3% 21,892,192 5.8% 23,049,901 5.3% 24,252,574 5.2% Capital 2,938,000 3,030,000 3,179,000 3,221,000 Debt (inside levy) 3,380,694-0.3% 3,538,363 4.0% 2,958,275-6.6% 3,104,850 3.1% Debt (excluded) 2,686,112 1,279,700 - - Energy 2,290,700 12.0% 2,563,800 11.9% 2,637,558 2.9% 2,723,989 3.3% Financial 1,132,000 3.7% 1,170,000 3.4% 1,200,000 2.6% 1,226,125 2.2% Education - Out of district 5,803,200 4.0% 6,035,328 4.0% 6,276,741 4.0% 6,527,811 4.0% Education - Vocational 904,800 4.0% 1,140,992 26.1% 1,186,632 4.0% 1,234,097 4.0% Miscellaneous 3,508,805 2.3% 3,589,822 2.3% 3,949,602 10.0% 4,332,038 9.7% Community Priorities$ 150,000$ 150,000 $ 150,000$ 150,000 TOTAL Accomm. COSTS$ 43,476,9993.7%$ 44,390,197 2.1%$ 44,587,7090.4%$ 46,772,484 4.9% Town of ReadingOne YrOne YrOne YrOne Yr Acc. Costs - Details ProjectedChngProjectedChngProjectedChngProjectedChng FY24FY24FY25FY25FY26FY26FY27FY27 Contributory Retirement6,140,0006.1%6,649,6208.3%7,201,5388.3%7,799,2668.3% OBRA fees & OPEB study40,0000.0%40,0000.0%40,0000.0%40,0000.0% OPEB contribution500,0000.0%500,0000.0%500,0000.0%500,0000.0% Workers Compensation390,0001.3%400,0002.6%405,0001.3%410,0001.2% Unemployment Benefits75,0000.0%120,00060.0%120,0000.0%125,0004.2% Group Health / Life Ins.12,397,6884.0%13,017,5725.0%13,603,3634.5%14,188,3084.3% Medicare / Social Security1,005,0000.5%1,025,0002.0%1,035,0001.0%1,045,0001.0% Police / Fire Indemnification135,0003.8%140,0003.7%145,0003.6%145,0000.0% Acc. Costs - Benefits$ 20,682,6884.3%$ 21,892,192 5.8%$ 23,049,9015.3%$ 24,252,574 5.2% Acc. Costs - Capital$ 2,938,000-4.8%$ 3,030,000 3.1%$ 3,179,0004.9%$ 3,221,000 1.3% Debt Service - Principal 5,220,0006.1% 3,900,000 -25.3% 2,200,000-43.6% 2,365,000 7.5% Debt Service - Interest 846,806-20.1% 918,063 8.4% 758,275-17.4% 739,850 -2.4% Excluded debt (2,686,112) -1.5% (1,279,700) -52.4% - -100.0% - #DIV/0! Total Included Debt$ 3,380,6944.0%$ 3,538,363 4.7%$ 2,958,275-16.4%$ 3,104,850 5.0% Premiums for general fund$ - #DIV/0!$ - #DIV/0!$ - #DIV/0!$ - #DIV/0! Acc. Costs -Debt$ 6,066,8061.5%$ 4,818,063 -20.6%$ 2,958,275-38.6%$ 3,104,850 5.0% Street Lighting (DPW)135,0003.8%135,0000.0%140,0003.7%140,0000.0% Electricty (FacCORE)1,070,00018.9%1,095,0002.3%1,122,3752.5%1,161,6583.5% Natl Gas (FacCORE)676,0004.0%878,80030.0%909,5583.5%945,9404.0% Water/Sewer (FacCORE)219,7009.9%225,0002.4%230,6252.5%236,3912.5% Fuel - vehicles (DPW)190,00015.2%230,00021.1%235,0002.2%240,0002.1% Acc. Costs - Energy$ 2,290,70012.0%$ 2,563,800 11.9%$ 2,637,5582.9%$ 2,723,989 3.3% Casualty Ins (AD SVC)787,0002.6%820,0004.2%845,0003.0%866,1252.5% Vet's Assistance (PUB SVC)$ 145,00016.0%$ 150,000 3.4%$ 155,0003.3%$ 160,000 3.2% FINCOM Reserve Fund200,0000.0%200,0000.0%200,0000.0%200,0000.0% Acc. Costs - Financial$ 1,132,0003.7%$ 1,170,000 3.4%$ 1,200,0002.6%$ 1,226,125 2.2% SPED transp OOD (Sch)1,076,4004.0%1,119,4564.0%1,164,2344.0%1,210,8044.0% SPED tuition OOD (Sch)5,798,0004.0%6,029,9204.0%6,271,1174.0%6,521,9614.0% SPED contingency488,8004.0%508,3524.0%528,6864.0%549,8344.0% SPED offsets OOD (Sch)(1,560,000)4.0%(1,622,400)4.0%(1,687,296)4.0%(1,754,788)4.0% Acc. Costs - OOD SPED$ 5,803,2004.0%$ 6,035,328 4.0%$ 6,276,7414.0%$ 6,527,811 4.0% Voc School - NERMVS665,6004.0%892,22434.0%927,9134.0%965,0294.0% Voc School - Minute Man52,0004.0%54,0804.0%56,2434.0%58,4934.0% Voc School - Essex North187,2004.0%194,6884.0%202,4764.0%210,5754.0% Acc. Costs - Vocational$ 904,8004.0%$ 1,140,992 26.1%$ 1,186,6324.0%$ 1,234,097 4.0% Rubbish (DPW) 2,034,2503.0% 2,095,278 3.0% 2,409,56915.0% 2,771,004 15.0% Snow and Ice Control (DPW) 675,0000.0% 675,000 0.0% 700,0003.7% 700,000 0.0% State Assessments799,5552.5%819,5442.5%840,0332.5%861,0342.5% Cemetery (DPW) Acc. Costs - Misc.$ 3,508,8052.3%$ 3,589,822 2.3%$ 3,949,60210.0%$ 4,332,038 9.7% Financial Forum I: School Finance Overview for FY25 3¤¯³¤¬¡¤± ΕΓǾ ΕΓΕΖ Overview of FY25 Budget Development Our approach to developing a responsive and responsible FY25 budget includes: Articulating "´£¦¤³ '® «² that align with the Strategic Plan Defining "´£¦¤³ /¡©¤¢³¨µ¤² that are accountable and measurable Mapping a "´£¦¤³ $¤µ¤«®¯¬¤­³ 0±®¢¤²² that employs a multi-year vision Creating aligned "´£¦¤³ # «¤­£ ± FY25 Budget Goals The FY25 Budget will: Reflect our commitment to building a sense of belonging for all students and staff and to delivering rigorous instructional practices districtwide. Add precision to staffing schedules, structures, ratios, and student groupings to optimize resources. Maximize all funding sources by focusing on strategies and programs that have proven to produce gains in student learning relative to their cost. Continue the pathway toward universal free Full Day Kindergarten and Meet contractual obligations post successful negotiations with all five (5) of the Bargaining Units (Cafeteria, Custodians, Paraeducators, Teachers, Secretaries) FY25 Budget - Multi-Year Vision Scrutinize Data: Review FY23 end year status, assess FY24 projected expenses and fund balances Forecast student enrollment and class sizes and examine staffing schedules, structures, and ratios through FY27 Project SPED accommodated costs through FY27 Plan for expense trends, contractual obligations, and Federal/State mandates through FY27 Optimize Funding: Maximize all sources of funding - while managing expenses Revenues: Grant writing, revolving funds, special revenues Expenses: Review vendor contracts, heightening efficiencies Engage Stakeholders: District Leadership Teams, Bargaining Units, School Councils, School Committee, Community, Town FY25 Budget Calendar 3¤¯³¤¬¡¤±  ­£ /¢³®¡¤± Meet with Finance Committee - Budget Process and Budget Guidelines Review Budget Timeline, Process, and Discuss Priorities with Stakeholders Forecast Enrollment and Class Sizes Discuss Priorities and Resource Allocations with District Leadership Teams .®µ¤¬¡¤±  ­£ $¤¢¤¬¡¤± Make Resource Allocation Decisions with District Leadership Teams Present Preliminary Budget, Conduct Planning Sessions with School Committee * ­´ ±¸ Budget Presentation and Publication Overview at School Committee Meetings Questions & Responses Following Cost Center Presentations Public Hearing Discussion with and vote by School Committee Founded this year as a 501(c)(3) to advocate and raise funds for permanent, lighted pickleball courts in Reading Pickleball Outreach Pickleball Community Day Kickoff event in March Nearly 200 people played in the field house across two, two hour sessions Unity Day at RMHS High School students chose pickleball as one of their activities 4 active courts of play Played games facilitated by RPPA board members Friends and Family Day Our booth attracted frequent visitors to try our game & ask about where to play Pickleball Growth The number of people playing pickleball has grown by 159% over the past three years according to the Sports & Fitness Industry Association (2022) The sport is a significant recreation and social activity for older adults while also growing in popularity among younger populations Many Massachusetts towns have built dedicated pickleball courts over the past 5 years Woburn, Wilmington, and Wakefield have added courts to meet demand Pickleball in Reading Our goal is to help fund permanent, lighted, pickleball courts in Reading Reading has a dedicated community of regular pickleballers estimated to be over 400 players with many more casual players looking to learn the game Current court constraints limit residents from the health benefits of being active in their chosen sport Finding Appropriate Court Space The Memorial Park courts are over capacity during peak morning and evening hours. All courts are booked within minutes of availability posting every day. Courts require enough distance from homes to mitigate noise and sufficient parking to not fill neighborhoods with cars. The Recreation Department and RPPA have not been able to identify any location for courts currently available to the town due to space and noise concerns. Planned courts for the Birch Meadow phase 2 plan were removed in June with no plan to re-site them. The change to the Birch Meadow Phase 2 plan removes the 4 basic courts currently there creating a further court shortage. Symonds Way Opportunity Only identified location for courts due to available space and distance from homes Burbank Ice Arena Authority made a preliminary offer for use a portion of their parking area for pickleball courts. RPPA was to assess feasibility and follow up with the town. Courts would need an athletic asphalt base with painted lines and barrier fencing to parking areas to create a safe playing area. There is minimal site work or changes to the property needed to create a temporary solution that does not disrupt long term plans for the property. To meet the pressing demand for pickleball courts in Reading and mitigate the planned loss of existing and Our Request proposed courts at Birch Meadow, we request the Select Board pursue using part of the Burbank Ice Arena Authority parking lot for pickleball courts in 2024 while a future plan for the Symonds Way property is developed. Draft Warrant Article Article To see if the Town will vote to raise and appropriate, borrow, transfer from available funds or otherwise provide a sum or sums of money not to exceed $200,000 to pay to build eight (8) temporary, outdoor pickleball courts on the land adjacent to the Burbank Ice Arena off Symonds way. Background The temporary courts would be on land leased to the Burbank Ice Arena Authority through a long term lease and will provide a much needed recreation facility to relieve the resource constraint with proposed courts removed from the Birch Meadow plan and asphalt courts that will be removed at Birch Meadow. We request that Town Meeting approve that $200,000 be funded from the Burbank Ice Arena revolving fund. Cost Estimate for 8 Temporary Pickleball Courts at Burbank Ice Arena Site Prep and Paving$69,500 Acrylic Top Coat and Provided by NE Sealcoating$48,000 Striping FencingProvided by Reliable Fence$14,720 Drainage Contingency$20,000 Project Contingency$20,000 Project Total$172,220 Town of Reading Meeting Minutes 2016-09-22 LAG Board -Committee -Commission -Council: Finance Committee Date: 2023-08-23Time: 7:00PM Building: Reading Town Hall Location: Select Board Meeting Room Address: 16 Lowell StreetSession: Open Session Purpose: General BusinessVersion: Draft Attendees:Members -Present: Chair Ed Ross, 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 Fidel Maltez, School Director of Finance Derek Pinto 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 Ed Ross called the meeting to order at 7:01 pm. Liaison Reports: John Sullivan shared updates fromlast weeks CPDC meeting including: the withdrawal ofa 40R application for lower Haven Street, the withdrawal of an animal kennel application at 1312 Franklin Street, an approved modification to the stormwater permit plan fora subdivision on Grandview Road, a request for a three-lotsubdivision off Beacon Street, and a preview of the MBTA Communities survey results. Joe Carnahan reported on the events from last nights Select Board meeting. The Reading Food Pantry requested additional ARPAfunds, as the increased demand for food and gift cards exhausted the ARPA funds theyreceived quicker than they expected. Allthe ARPA funds have been allocated, though there was a question of whether funds wouldbe left over in the COVID allocated line, and the Board discussed other ways the Town could help the Food Pantry with publicity. There wasadog park discussion that alluded to a time sensitive grant associatedwith it. The Board discussed the replacement of the Director of Equity and Social Justiceand the change in reporting structure from theLibrary to the Town Manager. The Finance Committee can expect to see a request at Town Meeting to move the salary for the position from the Library budget to the Town Manager budget. Marianne Downing also shared updates from CPDC. Dollar Tree is planning to move into the former Walgreens. Community Development Director Andrew MacNichol said at the meeting that the Town is temporarily under the40B10% thresholdfor affordable housing because Eaton Lakeview has not put in building permitsyet, but once they do it will be reported to the state. The Dowd Pediatrics building is for sale, and while its not in the 40R Page | 1 district, it is within the MBTA Communities radius, and a developercould do something there if the Town is under 40B. Emily Sisson was unable to attend tonights meeting, but Ed Ross shared her reports on her behalf. The Symonds Way Exploratory Committee is issuing a Request for Information (RFI) to see what private entities might be interested in developing the area. Community Services Director Jenna Fiorente will be requesting a part-time assistant for the Veterans Services Officer in next fiscal years budget. Ed Ross provided an update on the Killam School Building Committee. The Committee is currently working with Colliers, the Owners Project Manager (OPM), to put together the Request for Design Services. Interviews with designers will be conducted with the MSBA in early November, and the district will be able to negotiate a contract with the chosen designer by the end of November. A meeting was held with Colliers to start the discussion on what the district wants in a new Killam school. As things develop, the Committee will start to conduct more community outreach and education on the progress, needs, and wants of the project. A discussion of the Killam building timeline will be added to the agenda of the Financial Forum, including when it will go to the voters and other major milestones. Finalize Liaison Assignments: Joe Carnahan noted that Public Works was assigned to another member and should be removed from his list. Corrections were made and the Committee agreed with the final list of assignments. Introduction to School Director of Finance and Operations, Dr. Derek Pinto: Dr. Derek Pinto, the new Director of Finance and Operations for the School Department, introduced himself to the Finance Committee. He shared his prior experience at Lasell University, and in K-12 as a teacher, principal, and CEO of a school district in California. He is acutely aware of the issues with K-12, as his wife is a high school teacher, and he has three school-aged children. He stated that he looks forward to developing relationships and continuing with the districts mission. FY23 Free Cash Estimate Discussion: Town Manager Fidel Maltez shared the current Free Cash estimate of $18.46 million. Free cash at the start of the year was $19.93 million. Revenue overbudget is estimated at $3.81 million, expenses under budget are estimated at $1.65 million, and $6.37 million was used including: $3.28 million to support the FY23 Budget, $2.2 million for the Killam School, $275,000 for FY23 budget adjustments at November Town Meeting, $414,000 transfer to the Smart Growth Stabilization Fund, and $338,000 for amendments to the FY23 budget at April Town Meeting. The current projected total of reserves is $20.46 million, or 17.2% of the budget, and includes the estimated $18.46 million of Free Cash, $1.8 million in the General Stabilization Funds, and $200,000 in FINCOM Reserves. Trash and Recycle Barrel Discussion: Mr. Maltez stated that Article 7 at November Town Meeting will request funding for $900,000 from Free Cash to provide each home with one 64-gallon trash barrel and one 64- gallon recycling barrel, to be rolled out in Summer 2024. Homes can lease an additional trash barrel for $200 per year, and can receive an additional recycling barrel at no cost. Residents will also be able to purchase 33-gallon overflow trash bags at retailers such as Market Basket and Stop & Shop for $10 for a roll of five bags. Smaller barrels will also be available for those who want them. During the fall, when Republic took over JRM, and trash collection was compromised, Mr. Maltez stated that he spoke with six other companies, all of which require automated collection, and do not provide a manual collection option. Four of those companies also provided estimates, all of which were a significant increase over the Towns current contract. Page | 2 The second partof the article proposes creating a solid waste revolving fund. The cost of the additional barrel leases, and sale of overflow bags, will be put into that fund to offset the excess costs of transportation and disposal. Update on Grove Street Lot 5: Mr. Maltez stated that the Town received five bids for Lot 5, and K & R Construction was the lowest bidder at $169,250. There will be an article at November Town Meeting to fund the construction, instead of using FINCOM Reserves. Preview of November Town Meeting: Mr. Maltez brought a new issue to the Committees attention. In FY22, Town Meeting funded a ladder truck for $1.4 million, which was ordered in March 2022. This past Monday, the manufacturer of the truck sent a letter stating that they were passing along a material cost increase of $125,000 to the Town. The Towns current truck is from 2008 and was slated for replacement in 2022. If the Town was to cancel this contract, it would have to go back out to bid. Other communities received a similar letter. Mr. Maltez stated that Fire Chief Burns reached out to other manufacturers, who indicated that they are experiencing the same unforeseen cost increases of materials. Legal is reviewing the contract right now to determine what options the Town may have. A request for additional funding is expected to be added to the warrant. There are other things the Town could get if it negotiates with the manufacturer, including guaranteed delivery dates, parts vouchers, additional years of warranty, and when to make the payment, as other communities received such considerations through negotiations. Financial matters on the November Town Meeting warrant include: changes to the Capital Improvement Plan, payment of prior years bills (none at this time), Birch Meadow Phase 2 in FY25, trash and recycle barrels, ladder truck, and Grove Street Lot 5. There are also two non-financial related articles including a snow removal bylaw for the 40R district, and acceptance of a local option bonus for any certified municipal Town Clerk up to $1,000. Financial Forum Planning/Future Agendas: The Committee discussed whether to hold one forum or two, and agreed that only one th would be needed, which is scheduled for September 20. Similar to last year, the Financial Forum will include a Financial Forecast, review of the Capital Plan, FY25 budget overview, FY25 budget guidance, discussion on Free Cash, School financial review, and discussion on the Killam School. Joe Carnahan suggested additional items for the forum agenda, including discussing whether to change the reserve policy from 7% to 10%, and reviewing reserve funds outside of the general reserve fund and their uses. Mr. Ross agreed that a review of those funds criteria and balances could be included in the Chief Financial Officers budget overview. He also requested that the Committee receive an update on Capital Plan projects, such as project successes, and projects that are on-budget and on-time. Approve Meeting Minutes: On a motion by Mark Zarrow, seconded by Joe McDonagh, the Finance Committee voted 7-0-0 to approve the meeting minutes of July 26, 2023. Roll call vote: John Sullivan Yes, Geoffrey Coram Yes, Joe McDonagh Yes, Joe Carnahan Yes, Mark Zarrow Yes, Marianne Downing Yes, Ed Ross Yes. On a motion by Joe Carnahan, seconded by Mark Zarrow, the Finance Committee voted 7-0-0 to adjourn at 8:55 pm. Roll call vote: John Sullivan Yes, Geoffrey Coram Yes, Joe McDonagh Yes, Joe Carnahan Yes, Mark Zarrow Yes, Marianne Downing Yes, Ed Ross Yes. Page | 3