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HomeMy WebLinkAbout2025-02-26 Finance Committee Minutes� • orxrae +� Town of Reading Meeting Minutes Board - committee - Commission - Council: Finance Committee Date: 2025-02-26 Time: 7:00 PM Building: Reading Town Hall Location: Select Board Meeting 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, Endn 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), Dana Guarino 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 Chair Joe Carnahan called the meeting to order at 7:02 pm and reviewed the evening's 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 no cost estimate at this time. Marianne McLaughlin -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 I 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 reviewed the School Department's 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 Wednesdays. Tonight was the School Committee Budget Review. On March 5'h, 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. The Public Hearing on the proposed Town Manager's FY26 budget, and Town Department budget presentations will begin on March 12' , and continue on March 19' , if needed. The Committee will also vote on the budget and relevant Annual Town Meeting Warrant Articles at their meeting on March 19'h. On April 2"d, 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 1 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 1 3