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HomeMy WebLinkAbout2025-03-12 Finance Committee Minutesg or � �_ Town of Reading _�, Meeting Minutes 'ixvonw°��� Board - Committee - Commission - Council: Finance Committee Date: 2025-03-12 Time: 7:00 PM Building: Reading Town Hall Address: 16 Lowell Street Purpose: Public Hearing Attendees: Members - Present: RWN %\JEERK R�pp�NG, sots HaP zo an is 2a Location: Select Board Meeting Room Session: Open Session Version: Final Chair Joe Carnahan, Vice Chair Marianne McLaughlin -Downing, Endri Kume, Joe McDonagh, Ed Ross, Emily Sisson, John Sullivan, Mark Zarrow Members - Not Present: Geoffrey Coram Others Present: CFO Sharon Angstrom, Town Manager Matt Kraunelis, Assistant Town Manager Jayne Wellman, Town Clerk Laura Gemme, Community Services Director Jenna Wood (remote), Operations Director Katie Gabriello (remote), Human Resources Director Sean Donahue (remote), Community Development Director Andrew MacNichol (remote), CTO Kevin Furilla, Health Director Ade Solarin, Fire Chief Greg Burns, Assistant Fire Chief Rick Nelson, Police Chief David Clark, DPW Director Chris Cole, Library Director Amy Lannon, Facilities Director Joe Huggins, Assistant Facilities Director Kevin Cabuzzi, Carlo Bacci, Mark Dockser (remote), Chris Haley (remote), Patrick Egan (remote), Karen Rose -Gillis (remote), Nancy D (remote), Christopher Cook (remote), Tony D'Arezzo Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: This meeting was held in -person in the Town Hall Select Board Meeting Room and remotely via Zoom. Chair Joe Carnahan called the meeting to order at 7:02 pm. Roll mll attendance: Mark Zarrow (remote), Joe McDonagh, Emily Sisson, Marianne McLaughlin -Downing, Ed Ross, Endri Kume, John Sullivan, Joe Carnahan. The Select Board was called to order at 7:03 pm. Roll call attendance: Mark Dockser (remote), Chris Haley (remote), Carlo Bacci. Liaison Reports No reports. PUBLIC HEARING: Town Manager Recommended Budget for FY26 Marianne McLaughlin -Downing read the Public Hearing Notice. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to open the Public Hearing. Page 1 1 Roll call vote: Mark Zarrow - Yes, Joe MCDonagh - Yes, Emily Sisson - Yes, Marianne McLaughlin -Downing - Yes, Ed Ross - Yes, Endri Kume - yes, John Sullivan - Yes, Joe Carnahan - Yes. Chair Carnahan welcomed general public comments. Select Board member Mark Dockser advocated for using some amount of free cash to lower the amount of borrowing the community needs to do for capital projects. Chief Financial Officer Sharon Angstrom provided a detailed overview of the projected revenues, shared costs, and capital and debt. FINCOM approved $5.8 million use of free cash back In the fall, but Ms. Angstrom is proposing to use $6 million due to the 13.6% increase in health insurance costs and other Increased costs due to inflation. Assistant Town Manager Jayne Wellman presented the Administrative Services and Public Services department budgets for FY26. Administrative Services delivers a level services budget. Ms. Wellman noted a significant reduction In election costs, as there is only one election scheduled in FY26, versus five elections in FY25. Property and Casualty Insurance increases 2.5%. In Public Services the part-time Volunteer Coordinator position In the Elder Services Division, which was previously funded by ARPA funds, is now Included in the budget. Community Development, Operations, and Human Resources all remain at static staffing levels, with some savings from staffing turnover. The Public Services Department continues to pursue grants to help fund work to support community initiatives. Most of the grants the department currently has are state grants that should not be affected by federal cuts, though the Town is still awaiting payment of the grant money for the Mallet Sommes Morgan project. Chief Technology Officer Kevin Furilla presented the technology department's budget, which shows an 8.1% overall increase, largely due to an additional $54,000 for licensing the town - wide security system, as the licensing the system came with will expire this fall. The budget also includes a $5,000 increase to print services and a decrease in overtime, as there are fewer projects anticipated in FY26. Health Director Ade Solarin reviewed the Health Department proposed budget. There is a $29,900 increase in salaries, which includes a $15,500 increase to the Health Nurse salary, which was previously split between Health and the Elder Human Services Division, but Is now fully funded under the Health department. For expenses, there is a $2,000 increase for mosquito control, and a $1,000 decrease to professional development. Fire Chief Greg Burns and Assistant Fire Chief Rick Nelson presented the Fire Department budget for FY26, proposing a 2.7% overall Increase. The budget includes a 2.5% increase in salaries and an 8.4% increase in expenses including uniforms, protective equipment, and professional development. The Department is currently down five positions, following four retirements and a transfer. They have already hired one replacement, who will not be in the academy until July. Assistant Chief Nelson highlighted several grants the department has received, including a $93,000 federal grant. The first step of the program is underway right now, for which $10,000 will be expended and reimbursed soon. Most of the program will not happen until October, so if federal funding is canceled, the department will come up with another plan. Police Chief David Clark reviewed the budget for the Police Department, Dispatch, and the Coalition for Prevention and Support. The department is fully staffed, but expects two retirements this spring, and the department has already begun reviewing resumes. The budget requests minor Increases for equipment such as radio batteries and cruisers, and a significant increase for new parking enforcement software and devices. Sharon Angstrom presented the Finance Department budget, which sees a 3.0% overall increase. The budget includes a 5.5% Increase in wages due to steps and cost of living adjustments for all staff, which is non -union, and a 12.2% decrease in expenses due to a third community contributing to the shared services of the Regional Assessor. Page 1 2 DPW Director Chris Cole reviewed the proposed FY26 Department of Public Works budget and enterprise funds. There is no change in staffing numbers, but there are currently a few open positions In Engineering, Highway, and Parks/Cemetery. The overall general fund wages are increasing 4.8% based on contractual and non -union compensation requirements. Overall expenses are decreasing 1.6% due to a $150,000 decrease in Professional Services, as the dead tree removal and Invasive plant management in the Town Forest will be done In April of this year. For Enterprise Funds, water wages Increase 3.6% based on contractual requirements, and expenses increase 45%, mostly due to a $200,000 increase for the second water meter program. Sewer wages Increase 4.7% and operating expenses increase 18% for maintenance costs and supplies. Stormwater wages Increase 4.8%, and operating expenses increase 4.7% for drainage, maintenance, equipment, and supplies. Town Manager Matt Kraunelis and CFO Sharon Angstrom briefly reviewed the PEG Cable Access Enterprise Fund, which is decreasing slightly per the contracts with the cable providers, and the Landfill Enterprise Fund, which is the same amount of $37,000 each year for environmental monitoring of the former landfill site, which is now Staples, Home Depot, and Jordan's Furniture. Library Director Amy Lannon reviewed the requested Library budget for FY26, which Increases overall 3.6%. The library Is fully staffed with no increase in FTEs. Wages increase 3.2%. All staff are non -union. Overall expenses Increase 5.4%, due to increase In equipment contracts, and software licenses. There was a new line item for $17,000 for Professional Services for outsourced vendors to assist the Office of Equity and Social Justice. It is a net Increase of $10,500, as $6,500 was moved from other line items. Facilities Director Joe Huggins reviewed the Core Facilities and Town Facilities budget. The overall Increase is 3.4%, with wages increasing 3.6% and expenses increasing 3.3%. There is a 33% increase in the elevator contract, as the old, Inexpensive contract expired. A new contract was competitively bid through procurement, and now the department is paying market rate. Pest management Increases 28% due to the limited allowable materials, and an uptick in rodents. Energy budgets increase a total of 1.3%. Ms. Angstrom reviewed several adjustments to the Capital Plan. The Finance Committee engaged in a lengthy discussion on the use of free cash, the Impact of inflation on the budget, and the potential need for an override. On a motion by Marianne McLaughlin -Downing, seconded by Emily Sisson, the Finance Committee voted 8-0-0 to close the Public Hearing. Roll call vote: Mark Zarrow - Yes, Joe MCDonagh - Yes, Emily Sisson - Yes, Marianne McLaughlin -Downing - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. The Select Board was de facto adjourned, as it is not known when Carlo Bacci and Mark Dockser left the meeting. Future Meetinas and Agendas The Finance Committee will be posted to attend the Capital Project Public Forum at the High School Performing Arts Center on April 2nd. At the next meeting on March 19'h, the Committee will vote on the FY26 Budget and Annual Town Meeting financial articles. There is a Special Town Meeting scheduled for May 1•t, which will consist of warrant articles for the Killam and ReCAL projects. The warrant for the Special Town Meeting will be closed by the Select Board on April ln. The Finance Committee agreed to meet on April 2nd at 6:30 pm at the High School just ahead of the Capital Projects Public Forum, to vote on those warrant articles. Page 1 3 Approve Prior Meetina Minutes The Committee reviewed the draft minutes from March 5, 2025 and agreed on a minor grammatical correction. On a motion by Emily Sisson, seconded by Marianne McLaughlin -Downing, the Finance Committee voted 8-0-0 to approve the meeting minutes of March 5, 2025 as amended. Roll call vote: Mark Zarrow - Yes, Joe McDonagh - Yes, Emily Sisson - Yes, Marianne McLaughlin -Downing - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to adjourn at 10:32 pm. Roll call vote: Mark Zarrow - Yes, Joe McDonagh - Yes, Emily Sisson - Yes, Marianne McLaughlin -Downing - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Page 1 4