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Home My WebLink About2025-03-05 Finance Committee Packet Town of Reading Meeting Posting with Agenda 2018-07-16LAG Board -Committee -Commission -Council: Finance Committee Date: 2025-03-05Time: 7:00PM Building: Reading Town Hall Location: Select Board Meeting Room Address: 16 Lowell StreetAgenda: 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 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: 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/86835551817 Meeting ID: 868 3555 1817 One tap mobile +16465588656,,86835551817# US (New York) +16465189805,,86835551817# US (New York) Dial by your location Find your local number: https://us06web.zoom.us/u/kbeUFF1hR3 AGENDA: Public Comment Liaison Reports Killam School Project Presentation and Discussion Reading Center for Active Living (ReCAL) Project Presentation and Discussion Vote on Finance Committee Reserve Transfer Request Vote on Snow and Ice Deficit Spending Future Agenda Discussion Approve Prior Meeting Minutes 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 "A PLACE WHERE EVERYONE BELONGS" J. WARREN KILLAM ELEMENTARY SCHOOLJ. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 MSBA MODULES June2021 March2022 Dec.2023 August2024 Feb.2025 J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 PRELIMINARY OVERALL PROJECT SCHEDULE* 20272028 2029 20232024 20252026 Design Construction Schematic FeasibilitySite Demo & Building Dev Documents StudyDesignConstruction Construction June Fall 2028 Sept 2024-August 2026 - Dec 2023 -Nov 2025 Oct Summer Feb 2025 October 2028 August 2024June 2026 2025 2029 Nov May SpringJune Fall August FebAugust Architect PDP 2028 Town2028 PSR SDBid Award Selection VoteSubstantial Move-In Completion *Assumes New Construction and Ch. 149 Procurement J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 FLOOR PLANS J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 PROPOSED SITE PLAN: Site Wall Service Mech. Perimeter Outdoor Buffer Learning 3-5 Play WOW Play Patio Nature Field Center K-2 Main Entry Play Site Exit RISE Play Parking 128 SP Site Entry Additional Perimeter Parking Buffer Bus Dropoff Emerg. Access Site Wall J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 CLASSROOM NEIGHBORHOOD J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 COMMUNITY CAFETORIUM J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 NEIGHBORHOOD VIEW WEST SIDE: K-2 Play 3-5 Play Parking Safe, Accessible Play Areas WOW Nature Center N Site Exit Site Entry J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 NEIGHBORHOOD VIEW EAST SIDE: WOW Nature Center Safe, Accessible Play Areas Parking 2-Story Cafe Masonry Above J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 CHARLES STREET VIEW: J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 HAVERHILL STREET VIEW: J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 MAIN ENTRY VIEW: HVAC SYSTEMS J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 FIRST COST LESS INCENTIVES & GRANTS J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 th MAY 13VOTE -Benefits 1.This updated timeline fits within the overall Typical Annual Town Meeting Timelines and outlines schedule. So, it does burden theSelect Board and Town to have special activities outside the norm. 2.This updated timeline fits best with the current project schedule. The Schematic Design Submission is due to the MSBA on 02/10/25. 3.Potential to save substantial cost, $450k, based on escalation alone Assuming 4% Escalation a year, a construction value around $100,000,000, this translates to = $333,333.33 per month This updated Election Date is 6 weeks sooner so that would be more than $450k. 4.Potential to save money on Bid day because the project schedule is more desirable. 5.Allows us to have funding in place to be able to move Modulars to the High school this summer Move before school starts, minimize impact to students, staff and the project. J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 th MAY 13VOTE -Risks If Town Meeting does not approve the Debt Funding st Authorization on May 1, the vote will still happen on th May 13. The vote will stand. Cost of running an election($20-30K) J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 PROJECT COSTS Total Project Cost = $130,011,783 (this is the number that will appear on the Debt Exclusion Ballot) MSBA contribution = $42,666,829 Town Cost = $87,344,954 (this is the amount of the debt the town will incur) Total cost per household: $82.53 per $100,000 of assessed home value. Leaning towards a 20-year loan. Reading Memorial Highschool and the Wood End School project came off of the tax rolls in fiscal year 2024. $27.15 per $100,000 The Reading Public Library is coming off ofthe tax rolls in 2026. $16.31 per $100,000 J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 AVERAGE HOME EXAMPLE Average home value in Reading is $890,000 The Killam School project will add $734.52 ($61.21/month). If we subtract the three most recent debt exclusions (RMHS, Wood End and the RPL) of $43.46/$100,000 ($386.80), the average homeowner willend up paying $734.52 -$386.80 = $347.72 tax increase. J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 Funding (numbers are old, using this slide for another purpose) J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 SCHEDULE MILESTONES Design Development:May 2025 April 2026 Construction:August 2026 September 2028 Building Demolition and site work: September 2028 Summer 2029 J. WARREN KILLAM ELEMENTARY SCHOOL TOWN OF READINGFINCOM Meeting 3-5-2025 Q&A Reading Center for Active Living (ReCAL) Finance Committee Update March 5, 2025 Schematic Drawings Project History Costing Town Meeting & MetropolitanAreaReadingCenterforReCALC Select Board UMASS new BH+A Feasibility CommunityVotes PlanningCouncilActiveRecommendations & study, details Study: program and (MAPC)Economic Living CommitteeExtend effort need for space needs. DevelopmentPlan(ReCALC)formed programs, new Stakeholder spacemeetings & community charettes, 20152017202120222023 2024 2025 Select Board UMASS RECALC & COA support prioritizes ReCALC, Gerontology Symonds awards ARPA funds Institute Way for feasibility, Community PBC recommends schematic design Needs Symonds Way Assessment 10 Years of Planning Reading Center for Active Living Committee Summary -- Prioritizing a Vulnerable Population Age 60+ NEED: The Reading Center for Active Living is a NEED supported by data provided by professional consultants and 10+ years of exploration. IMPACT ¹: Serve the growing 60+ population: 20% in 2010, 26% 2020, 28.6% 2024, 30% 2030. SPACE: Reaching more members of our 60+ population requires we create better accessible and inclusive spaces acknowledging that individuals will have a varying degree of interests and physical capabilities. 1 Community Engagement and Planning Report, ReCal, December 2022 Reading Center for Active Living Committee update Pleasant Street Center: Unable to Meet the Growing Age 60+ Community Needs Flooding Problems Too Small Old Building TightKitchen Art/Lunch/Meeting Room Non-DividableMulti- Registration in Office in the Hallway (no dedicated storage) Purpose Room (700 Sq. ft.) Stairwell Gas Smell Waitlist for Programs Game Rooms (in Computer Room Nurse & Senior. Case Worker Office Waiting Areas in Hallways basement) Too small(in basement) (no privacy or one-on-one space) Possible Locations Information was collected for each site including zoning, environmental, a site plan and a cost estimate An evaluation sheet was developed for the sites to create an objective analytical process Selecting a Site 6 Sites Considered Finding the Right Location Top 3 Studied Closely ReCALC COA ALL BH+A PBC Unanimous Results ReCALC BH+A 1. Symonds Way 2. Oakland Road 2. Oakland Road 3. Pleasant Street 3. Pleasant Street Symonds Way) ranks the 2. Oakland Roadhighest in terms of value 3. Pleasant Streetbetween the three PBC 1. Symonds Way 2. Oakland Road 5-0 Vote for Symonds Way 3. Pleasant Street Project Vision VISIONSTATEMENT:TheReadingCenterfor MISSIONSTATEMENT:TheTownofReadingcreatedmultiple ActiveLiving(ReCAL)willbeacommunityguidingprinciplesfortheCenterforActiveLivinginorderto asset,designedtosupporttheMissionprovidean inclusive,welcoming,andsupportivespacethat StatementsofElder&HumanServices,meetstheinterestsandneedsofthegrowing60+population. RecreationandVeteransDivisions.ReCALTheReadingCenterforActiveLivingembracesadynamic seeksto fosterhealthandwellnessby approach promotinggrowthandhealthyagingbyenhancing promotingsocialinteraction,strengtheningthesocial,cognitive,andphysicallivesofoursenior thecommunity,andprovidingapointofpopulation.RECALwillalsoprovideadditional indoor accesstoprogramsandservicesforallages.recreationalspaceforallagegroups. Elder & Human ServicesVeterans ServicesRecreation Reading Center for Active Living Project Impact the structure, function, and quality of our relationships with othersis a critical and underappreciated contributor to individual and population health, community safety, can have significant economic costs to individuals, communities, and society. Social isolation among older adults alone accounts for an estimated $6.7 billion in excess Medicare lower academic Achievement, worse performance at work.In the U.S., stress-related absenteeism attributed to loneliness costs employers an estimated $154 connection not only affects individuals, but also the communities they live in https://www.hhs.gov/sites/default/files/surgeon-general-social-connection-advisory.pdf 8 Project Impact Build Environment for Social Connection 9 Site Plan Athletic Community Resource Area Fields PICKLEBALLCOURTS existing. areseparateproject. Ice Arena existing. WildernessWalkway proposed Center for Active Living 2 levels 28,380 SF 15AcresofTown OwnedLand View From Ice Rink Design Update View from Parking Area Design Update View of Senior Patio Design Update View of Second Floor Deck Design Update Potential for future solar array. Outdoor Spaces Floor Plans Shared Spaces Design Update Maker Space for public Space & events & voting Conference Room Use as Emergency Shelter (kitchen, shower, generator) Entrance from Parking Area Recreation Elder & Human Veterans Services Services Offices Offices Second FloorGround Floor Senior Hub Ground Floor Renderings Design Update Second Floor Access To Senior Lounge Reception Program Guide ReceptionMulti Purpose Room Program Guide Lobby Entrance Ground Floor Renderings Senior Hub Senior Cafe Senior Lounge Ground Floor Renderings Design Update Multi Purpose Room Game Room Ground Floor Renderings Design Update Gymnasium with Elevated Walking Track Project Costs Total Project Costs Development Feasibility Study $28.3M -$29.4M 26,300 SF -28,100 SF, construction start 2025, $2.6M contingency Feasibility Study $32.8M -$33.7M (adjusted) 28,380 SF, construction start 2026, $4.7M contingency Neighboring Communities $26.8M -$34.4M Project Goal <$30M Project Budget $27.9M Approved by PBC 28,380 SF, construction start 2026, $4.7M contingency Project Costs Total Project Costs Development Project Budget $27.9M Cost conscientious design Ongoing effort I.Comparative analysis of materials II.Return on Investment (ROI) III.What is really needed/rightsizing IV.Design efficiency/synergy through multiple uses/shared spaces V.Tighten schedule to reduce inflation impacts Responsible financial planningOngoing effort I.Multiple cost estimates II.Detailed Project Budget III.Built in Contingencies IV.Use of Alternates Project Costs $27,900,000 Total Project Costs Development i.All anticipated project costs ii.Design and pricing contingency 10% ($1.6M) iii.Inflation contingency5.5% ($1.1M) iv.Construction contingency 5% ($1.1M) v. Includes: nd i.Range Road Improvements & 2 Parking lot entrance ii.Full Building Propane Generator iii.Triple pane windows iv.Stone Dust Trail Not included: i.Pickleball and associated Range Road Improvements Project Schedule Project Approval: May 2025 Total Project Costs Development Project Design: 2025 Project Bids: End 2025/ Beginning 2026 st Construction Start: 1Quarter 2026 Building Opens: Fall 2027 Public Engagement Coffee Public Outreach & Chat March 27 2025 PUBLIC PUBLIC PUBLIC PUBLIC FORUM #1FORUM #3 FORUM #2 FORUM #4 December 17 2024March 25 2025 January 28 2025 April 2 2025 Killam, ReCAL Project History, Facility Programs, Design, Projects, Tax ReCALC, Design, Design,Project Budget, Lunch & Impacts Reading Capital Comparable Tax Impacts Add. Learn Projects Costs Outreach January 30 2025 April 2025 Community Television Public Engagement Automatic Updates Email Input Town News Flash Website Social Media Newsletters Flyers Press Articles Video Forums Suggestion box Tax Impacts Tax Impacts Borrowing Term: 15/20/25/30 yrs Current Interest Rates Available $387/yr in Annual Debt Service Retired (avg homeowner) For Wood End ES, Reading HS, Library $183-$265/yr Estimated Tax Impact (avg homeowner) Net impact: $122 -$205/yr tax reduction (plus other current projects, not including any other tax increases) Reading Center for Active Living Committee update Programming a Solution 1472 Responses to 24 Questions 2022 Survey Results Where: Open to multiple locations Majority Support All-ages Community Center What: All-ages Community Center Reading Center for Active Living Committee update Programming a Solution 1472 Responses to 24 Questions 2022 Survey Results 59% Support $100-$200+ 30% Support $200-$300+ Are they willing to incur tax increases: Yes Will they Use it: Yes Tax Impacts 2022 survey 59%support $100 -$200 tax increase 2027 support amount of $115 -$230 (15% inflation adjusted) 2022 survey 30%support $200 -$300 tax increase 2027 support amount of $230 -$345 (15% inflation adjusted) Town Leaning toward a 15 yr Term $29.78 per $100,000 ($265/yr for $890k home) Net impact: $122/yr tax reduction(plus other current projects) Tax Impacts Potential Impact of Killam & ReCAL Projects: Killam: $734/yr after MSBA grant (20yr term) ReCAL: $265/yr (15yr term) Retiring Debt Payments: $387/yr Combined impact: $612/yr after grants for $890k home $51/mo, $12/wkmaximum tax increase for both projects (Estimate a gradual tax increase between 2026 and 2029 for this amount) Next Steps DESIGN BUDGET COST APPROVALS REVIEW DEVELOPMENT ESTIMATING 02/11PBCVoteofApproval 03/04SelectBoardVoicesProjectSupport 03/05FinanceCommitteeUpdate 03/12FinanceCommitteeVote 05/01SpecialTownMeeting 05/13SpecialTownVote THANK YOU! Q&A Finance Committee: Request for FY25 Reserve Fund Transfer To: FINCOM From: Matt Kraunelis, Town Manager Date: February 12, 2025 It is respectfully requested that a transfer of $80,000 be made from the Reserve Fund to the accounts shown below, which is an unforeseen or extraordinary expense: 11623511 511153 Election Workers $ 42,000 11625530 530152 Election Ballot Programming $ 4,000 11625530 530153 Election Pro Services $ 3,000 11625540 540000 Election Supplies/Equip $ 10,000 11625540 549307 Election Meals for Workers $ 1,000 14115524 524250 Traffic Control Repairs $ 20,000 The additional $60k of election funds is due to the extra election staff needed for the Presidential Election; the cost exceeded the budget. We will need extra funds to conduct the April 2025 election, and a Special election scheduled for May 2025. The addition of In-Person early voting and Vote- by-Mail adds additional burdens on staff, storage, and equipment. DPW is also requesting funding for traffic control repairs. Since there have been more traffic control repairs than usual in FY25, additional funding is needed to ensure there is enough to get through the end of the fiscal year. Current FINCOM Reserve Fund balance: $200,000 Resulting balance if all items approved: $120,000 Town Manager Recommendation: Approve Disapprove Town Manager Signature: ________________________________ Date: March 5, 2025 By a vote of the FINCOM at a meeting held on March 5, 2025 the transfer(s) for the above purpose(s) in the amount of $80,000 was: Approved Denied by a vote of: ____________. Finance Committee _________________ Chair Town of Reading Meeting Minutes 2016-09-22 LAG Board -Committee -Commission -Council: Finance Committee Date: 2025-02-26Time: 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 Joe Carnahan, Vice Chair Marianne McLaughlin-Downing, Geoffrey Coram, Endri Kume, Joe McDonagh, Ed Ross, Emily Sisson, John Sullivan, Mark Zarrow (remote) Members -Not Present: Others Present: School Superintendent Thomas Milaschewski, Interim School Director of Finance Phil Littlehale, School Committee Chair Tom Wise, Karen Rose-Gillis (remote), Christopher R. Cook (remote 7:48pm) 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. Call to Order and Welcome agenda. Roll call attendance: Mark Zarrow (remote), Joe McDonagh, Emily Sisson, Marianne McLaughlin-Downing, Geoffrey Coram, Ed Ross, Endri Kume, John Sullivan, Joe Carnahan. Public Comment There was no comment from the public. Liaison Reports John Sullivan shared that the Reading Center for Active Living (ReCAL) project anticipated total cost came in at just under $28 million, including $4.7 million for contingencies. It is estimated to add between $190 and $265 per year to the average home property tax bill. Emily Sisson reported that the turf at Parker Middle School is 18 years old and nearing the end of its usable life. The Recreation Division is looking to shuffle some capital around to try and replace it in the near future. There is nocost estimate at this time. Marianne MacLaughlin-Downing reviewed the recent votes of the Select Board to not use the parking kiosks in the downtown parking lots. There was talk of possibly selling them, and she heard that another community was looking to install parking kiosks, so Reading might have a buyer for them. Page | 1 Ed Ross shared an update on the Killam School project. The Killam School Building Committee has voted to move forward with schematic design. The total project budget before any reimbursement is just over $129 million. The reimbursement rate for eligible costs has increased, and the anticipated Massachusetts School Building Authority (MSBA) grant is estimated around $40 million. There are other MSBA and Inflation Reduction Act (IRA) incentives that the Town can also pursue. Endri Kume shared that RMLD residential rates are increasing 6% and industrial/commercial rates are increasing 7%. Joe Carnahan shared that the Community Preservation Act Study Committee continues to meet, and is recommending a vote at the November 2026 state election. The Study Committee is now hearing reports from the various areas that could use CPA funds. School Department/School Committee Recommended FY26 Budget Presentation School Superintendent Dr. Thomas Milaschewski, Interim Director of Finance Phil Littlehale, and School Committee Chair Tom Wise recommended budget for FY26. It is a level service budget. Two significant additions to the budget are universal tuition for full-day kindergarten, and an additional kindergarten teacher due to a projected increase in kindergarten enrollment. Dr. Milaschewski reviewed the nearly 35 positions added over the last three years and highlighted the impacts they have had. Mr. Littlehale provided a brief overview of the federal grants totaling approximately $1.3 million the district currently receives including: $1.2 million IDEA grant used for paraprofessionals and supplies, $90,000 Title 1 used for staffing, $20,000 Early childhood used for preschool, a $10,000 Title 4 grant, and a $43,000 Title 2 grant. He noted that allocations and reliance on federal grants continue to decrease. Mr. Littlehale noted that the department is already planning ahead for FY27 budget challenges. The total General Fund request from the Town is $58,491,591. Mr. Littlehale reviewed the budget by each cost center, and the number of full time Employees (FTEs) totaling 625.80 for FY26. Due to a lot of turnover, salaries increased at a lower percentage, as new staff came in at a lower salary level than what was budgeted. The Department is reviewing changes to the capital plan for Food Services and IT. There is a $600,000 increase in offsets. Future Agendas Discussion The Finance Committee is scheduled to meet this evening, and over the next three th Wednesdays. Tonight was the School Committee Budget Review. On March 5, the Committee will hear presentations from the Project Managers of the Killam School and Reading Center for Active Living (ReCAL) projects, in addition to reviewing a budget transfer request and snow and ice spending. th FY26 budget, and Town Department budget presentations will begin on March 12, and th continue on March 19, if needed. The Committee will also vote on the budget and relevant th Annual Town Meeting Warrant Articles at their meeting on March 19. nd On April 2, the Town Manager has scheduled a public forum for the Killam and ReCAL building projects at the Reading Memorial High School Performing Arts Center. Marianne McLaughlin-Downing requested more information before the votes for the building projects on when the Town might need an override. Approve Prior Meeting Minutes: October 30, 2024 On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to approve the meeting minutes of October 30, 2024 as presented. Roll call vote: Mark Zarrow Yes, Joe McDonagh Yes, Emily Sisson Yes, Marianne McLaughlin-Downing Yes, Geoffrey Coram Yes, Ed Ross Yes, Endri Kume Yes, John Sullivan Yes, Joe Carnahan Yes. Page | 2 On a motion by Ed Ross, seconded by Geoffrey Coram, the Finance Committee voted 9-0-0 to adjourn at 8:55 pm. Roll call vote: Mark Zarrow Yes, Joe McDonagh Yes, Emily Sisson Yes, Marianne McLaughlin-Downing Yes, Geoffrey Coram Yes, Ed Ross Yes, Endri Kume Yes, John Sullivan Yes, Joe Carnahan Yes. Page | 3