The URL can be used to link to this page

Home My WebLink About2020-09-09 Finance Committee Packet Town of Reading Meeting Posting with Agenda 2018-07-16LAG Board -Committee -Commission -Council: Finance Committee Date: 2020-09-09Time: 7:00PM Building: Location: Address: Agenda: Purpose:Public Meeting Meeting Called By:Jacquelyn LaVerde on behalf of Chair Eric Burkhart Notices and agendas are to be posted 48 hours in advance ofthe 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 remotely via Zoom: Join Zoom Meeting https://zoom.us/j/99780871973 Meeting ID: 997 8087 1973 One tap mobile +16465588656,,99780871973# US (New York) +16465189805,,99780871973# US (New York) Dial by your location +1 646 558 8656US (New York) +1 646 518 9805 US (New York) Meeting ID: 997 8087 1973 Find your local number: https://zoom.us/u/acMKdWpawa Agenda: Reorganization Liaison Assignments FY21 Meeting Schedule Discuss FY21 budget updates Minutesfor Approval: o May 12, 2020 o May 18, 2020 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 Finance Committee Liaisons FY21 Name/Address/EmailTelephoneLiaison Assignments -781-325-2887(C)Audit Committee 161 Belmont StreetSelect Board ejburkhart@gmail.com -781-944-2440 (W)Administrative Services 519B Main Street978-337-0520 (C)Permanent Building Committee danieldewar@me.com -781-258-1273(C)Library& Trustees 88 Bay State RoadRMLD Seanjacobs23@gmail.com Andrew Mclauchlan9-28)781-507-5241(C)Permanent Building Committee 128 High StreetRMLD Mclauchlan.andrew@outlook.comSchools& School Committee Edward Ross19-228)781-944-7488(H)Audit Committee 16 Kensington Avenue617-699-7542(C)Schools& School Committee ejross33@yahoo.com Mark Zarrow Departing member roles:FINCOM Vice Chair Public Services (2)Select Board (2) FinanceRMLD Public SafetySchool Committee Public Works Facilities Schools ADMINISTRATION Sharon Angstrom942-6604(W)Town Accountant sangstrom@ci.reading.ma.us John Doherty944-5800(W)Superintendent of Schools jdoherty@reading.k12.ma.us Gail Dowd944-5800(W)Chief Financial Officer, Schools Gail.Dowd@reading.k12.ma.us Bob LeLacheur942-6636(W)TownManager blelacheur@ci.reading.ma.us942-9805(H) **DRAFT** FINCOM FY21Meeting Schedule (All meetings are shown in bold and begin at 7:30pm held remotely, unless noted) September 9Regular Meeting September 22Deadline -SBclose Warrant for November Town Meeting(planned 9/8) September23Financial Forum I October 14Financial Forum II October 14FINCOM vote on any November Town Meeting Articles November 4Regular Meeting (if needed) November 9(Mon)-12(Thurs)-16(Mon)-19(Thurs) Subsequent Town Meeting December 8Town FY22Budget meetingwith Select Board December 9Town FY22Budget meetingwith Select Board December 15Town FY22Budget meetingwith Select Board December 16Town FY22Budget meetingwith Select Board January 7School Committee FY22Budget meeting January 14School Committee FY22Budget meeting January 21School Committee FY22Budget meeting January 25School Committee FY22Budget meeting(vote) January 31 School budget to Town Managerper Charter February 28 Entire balanced budget to FINCOM per Charter March 2SB deadlineto close Warrant for April Town Meeting(planned in Feb) February 24FINCOM FY22Budget meeting(Town/Schools) March 3FINCOM FY22Budget meeting(Town/Schools) March 10FINCOM FY22Budget meeting(vote TM Articles) March 17FINCOM FY22Budget meeting (if needed) April 6Local elections April 26Annual Town Meeting begins May 5Regular Meeting June 30Regular Year-end Meeting(if needed) Town of Reading Meeting Minutes 2016-09-22 LAG Board -Committee -Commission -Council: Finance Committee Date: 2020-05-12Time: 7:30PM Building: Location: Address: Session: Open Session Purpose: General BusinessVersion: Draft Attendees:Members -Present: Chair Eric Burkhart, Vice Chair Paula Perry, Andrew Mclauchlan, Dan Dewar, Jeanne Borawski, Nick Boivin, Ed Ross, Sean Jacobs Members -Not Present: Marc Moll Others Present: Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, School Superintendent John Doherty, School CFO Gail Dowd School Committeemembers: Chair Chuck Robinson, Shawn Brandt, Erin Gaffen, Carla Nazzaro, John Parks, Tom Wise Select Board Members: Vice Chair Anne Landry, Carlo Bacci, Karen Herrick, Vanessa Alvarado Department Heads: Amy Lannon, Jean Delios, Joe Huggins, Greg Burns, David Clark, Matt Kraunelis, Jane Kinsella Others Present: Marianne Downing, Mark Zarrow, Phil Rushworth Minutes Respectfully Submitted By:Jacquelyn LaVerde Topics of Discussion: The meeting was held remotely via Zoom. Chair Eric Burkhart called the meeting to order at7:30pm. Select Board Vice Chair Anne Landry called the Select Board to order. School Committee Chair Chuck Robinson called the School Committee to order. Mr. Burkhart began by welcomingtwonew members,Nick Boivin and Jeanne Borawski,who th were appointed to one-year terms on May 6. He also welcomed Marianne Downing and st Committee as of July 1, 2020 when Pa The purpose of the meeting is to review the estimated impact of the COVID-19 pandemic on the FY21 budget and revenue. The revised budget was put together by Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, School Superintendent John Doherty, and School CFO Gail Dowd. There is still a sense of urgency for Finance Committee to vote on the budget so that it can be delivered to Town Meeting members ahead of Town Meeting in th accordance with the Town Charter. With the rescheduling of Town Meeting to June 15, th 2020, the goal is to deliver the warrant no later thanMay 29. The Committee is scheduled th to meet again this Thursday, May 14so that the discussion and vote will not be rushed tonight. Page | 1 Mr. LeLacheur explained that these are unprecedented times. He has been in contact with answers to finance questions have been hard to get. Only four of those peer communities answered the question as to how they were handling their FY21 budget: one community chose to do nothing and will ask their Town Meeting to approve the budget as presented in February; two communities plan to use a large amount of their rainy day funds; and only one community planned to revise their budget in a similar way to Reading. With so much uncertainty, this revised budget provides some flexibility in the process. Overall, there is a $2.4 million anticipated reduction in revenue including: property taxes reduced $150,000, local revenues reduced $690,000 including a significant decrease in meals tax, State aid reduced $1.5 million, and a $50,000 reduction in transfers and other categories. Estimated costs associated with COVID-19 include $25,000 for legal expenses, $10,000 for miscellaneous expenses, $30,000 for Health, $5,000 for Elder/Human Services meals, $95,000 for personal protective equipment (PPE) for Town buildings and the community, and $60,000 for PPE for School buildings. There is $1 million expected to be permanently cut from state aid, and $1.6 million expected to be temporary cuts to revenue. The temporary impacts can be resolved by using additional free cash, reducing Capital, and reducing voluntary payments such as OPEB. Possible weaknesses with cash flow arise with an increase in abatement applications in January 2021, and if people are unable to make their payments on time. Mr. LeLacheur stated that he hoped that the State sets up a line of credit for municipalities should they run out of cash for operations. Though it is a possibility, the chances of it becoming an issue are slim. Free cash can also be used to help with cash flow issues. To close the permanent $1 million gap, School and Town operating budgets were reduced by $450,000, the pension assessment was reduced by $284,000, Health Insurance was reduced by $125,000, and snow & ice was reduced by $25,000. To close the temporary $1.6 million gap, Capital was reduced $930,000, OPEB was reduced by $400,000, and Finance Committee is being asked for $500,000 support from free cash. Reductions slightly exceeded the $1.6 million to allow funding for a known increase in enrollment for the vocational schools, and anticipated increase of unemployment. These adjustments and estimates were made in an effort to give the Town flexibility with the budget until better information is available and better decisions can be made. Total school reduction was $430,000 by electing a 1% COLA reduction for all non- represented employees, and staff reductions including the new Payroll/HR Assistant position and one FTE Kindergarten classroom teacher. Both positions are currently unfilled. Other reductions include keeping administration and district wide programming at FY20 levels, and very little reduction in Special Education. Ms. Dowd explained that Reading will be receiving a $98,000 grant from the CARES Act, which will need to be shared with private schools, which will provide the ability to pay for technology needed for remote learning. Health Services was not cut, as more nursing will be needed. More substitutes may be needed. The Facilities budget has not been touched because it is not yet known what those expenses will be. Mr. LeLacheur reviewed further impacts on the Town staffing. Seven positions, including five seasonal DPW employees were eliminated from FY21 with the hope of adding some if not all back in for FY22. To avoid layoffs, two vacant full-time positions were reduced to part-time 20-hour positions. The COLA for non-union employees was reduced 1%. The Finance Committee discussed when to schedule the follow up discussion. Because the th School Committee also has a meeting scheduled for Thursday, May 14, the Finance th Committee agreed to cancel their meeting currently scheduled for Thursday, May 14, Page | 2 th 2020, and instead meet remotely via Zoom on Monday, May 18, 2020 at 7:00pm to discuss and vote on the revised budget. On a motion by Mr. Wise, seconded by Ms. Gaffen, the School Committee adjourned by a vote of 5-0. On a motion by Mr. Bacci, seconded by Ms. Herrick, the Select Board adjourned by a vote of 5-0. On a motion by Mr. Mclauchlan, seconded by Mr. Ross, the Finance Committee voted to adjourn at 10:46pm by a vote of 8-0. Page | 3 Town of Reading Meeting Minutes 2016-09-22 LAG Board -Committee -Commission -Council: Finance Committee Date: 2020-05-18Time: 7:00PM Building: Location: Address: Session: Open Session Purpose: Public MeetingVersion: Draft Attendees:Members -Present: Chair Eric Burkhart, Vice Chair Paula Perry, Nick Boivin, Jeanne Borawski, Dan Dewar, Sean Jacobs, Andrew Mclauchlan, Ed Ross Members -Not Present: Marc Moll Others Present: Town Manager Bob LeLacheur, Town Accountant Sharon Angstrom, School Superintendent John Doherty, School CFO Gail Dowd, Facilities Director Joe Huggins, DPW Director Jane Kinsella; Mark Zarrow, Marianne Downing, Phil Rushworth Select Board Members: Chair Mark Dockser, Vanessa Alvarado, Anne Landry; School Committee Members: Chair Chuck Robinson, Shawn Brandt, Erin Gaffen, Carla Nazzaro, John Parks, Tom Wise Minutes Respectfully Submitted By:Jacquelyn LaVerde Topics of Discussion: This meeting was held remotely via Zoom. Mr. Burkhart called the Finance Committee to order at 7:01 pm. Mark Dockser called the Select Board to order and Chuck Robinson called the School Committee to order at the same time. Mr. Burkhart reviewed the presentation from the last meeting discussing the anticipated temporary and permanent cuts in revenue stemming from the COVID-19 pandemic. Mr. Robinson reviewed the discussion the School Committee had at their meeting following the revised budget presentation. At that meeting, Dr. Doherty and Ms. Dowd were asked if they could add one thing back in, what it would be. Their answer was the HR/Payroll Administrative Assistant. Mr. Robinson also expressed concern at the 1% COLA cut for non- represented employees and requested that the Finance Committee consider using Free Cash to reinstate the School HR/Payroll Admin position and the COLA increase for non- represented employees. Following a lengthy discussion, many members from all three committeesagreed on the importance ofrestoringthe HR/Payroll position for the schools. The Finance Committee continued the discussion onthe use of free cash and the Finance Committee Reserve Fund. The current level of the Reserve Fund is $200,000. The Committee agreed that it should be increased by $100,000, at least temporarily, as there are still many unknown expenses that may arise. Page | 1 Members agreed on using free cash to add $100,000 to the Finance Committee Reserve Fund, and $80,000 to restore the School HR Admin position and Town full time HR position. Though some members were still uncertain on restoring $88,000 for the 1% COLA increase. The Committee discussed the many arguments for maintaining the 1% COLA increase, and for keeping the 1% COLA cut, and the possible effect it may have on employee retention. Mr. LeLacheur clarified that Department Heads had a clear preference to not cut any positions, and it was a practical matter that non-union salaries was the only place to make cuts. Even if it is not reinstated at this time, it can be revisited at Town Meeting in the fall. On a motion by Ms. Perry, and seconded by Mr. Mclauchlan, the Finance Committee voted to approve Revised FY 21 budget line items B99 to F99 as presented, by a roll call vote of 8-0-0. On a motion by Ms. Borawski, and seconded by Ms. Perry, to approve budget line items G91-M91, including restoration of the HR position and 1% COLA increase, the Finance Committee voted 4-4-0 as follows: Ms. Perry-Yes, Mr. Ross-No, Mr. Dewar-No, Mr. Jacobs-Yes, Ms. Borawski-Yes, Mr. Boivin-Yes, Mr. Mclauchlan-No, Mr. Burkhart-No. Mr. Ross made a motion, which was seconded by Mr. Mclauchlan, to approve the revised FY21 budget line items G91-M92 with the restoration of the HR position, but not the 1% COLA increase. The Committee continued their discussion. Some members voiced concern about the precedent being set by cutting the COLA for one group, but not others, and the effect on employee retention. Some members expressed concern at the unprecedented times and flexibility to address unknown expenses. Ultimately, the Committee came to a consensus to consider labor costs together. On a motion by Ms. Perry, seconded by Ms. Borawski, to amend the motion to restore the 1% COLA increase, the Finance Committee voted to accept the amendment by a roll call vote of 6-2-0, with Mr. Boivin and Mr. Mclauchlan not in favor, and to approve G91-M92 as amended by a roll call vote of 8-0-0. On a motion by Mr. Ross, and seconded by Mr. Boivin, the Finance Committee approved budget line item U99 as presented, with the 1% COLA and HR position as presented by a roll call vote of 8-0-0. On a motion by Ms. Perry, and seconded by Mr. Ross, the Finance Committee approved the revised W99 and X99 budget line items as shown by a roll call vote of 8-0-0. Mr. LeLacheur explained that the revised Article 4 shows a $935,000 reduction in Capital in FY21 that was moved out one year. On a motion by Ms. Perry, and seconded by Mr. Mclauchlan, the Finance Committee voted to accept Article 4 as shown by a roll call vote of 8-0-0. Mr. LeLacheur explained that Article 5 reflects a $20,000 decrease in Capital that is not needed, and a $35,000 increase for the Vocational School, which is needed. On a motion by Mr. Ross, and seconded by Mr. Dewar, the Finance Committee voted to accept Article 5 as presented by a roll call vote of 8-0-0. Minutes: On a motion by Ms. Perry, and seconded by Mr. Mclauchlan, the Finance Committee voted to approve the meeting minutes of March 18, 2020 by a roll call vote of 6-0- 2, with Mr. Boivin and Ms. Borawski abstaining, as they had not attended the meeting and were not yet members of the Committee on that date. Free Cash Vote: Page | 2 Mr. LeLacheur ensured the Committee understood that all changes to the proposed revised budget will be funded by Free Cash, and asked them to vote on the new number of $2,018,000. On a motion by Mr. Ross, and seconded by Ms. Perry, the Finance Committee voted to use $2.018 million in Free Cash to support the FY 21 operating budget by a roll call vote of 8-0-0. On a motion by Ms. Gaffen, and seconded by Mr. Brandt, the School Committee voted by roll call vote of 5-0-0 to adjourn at 10:31 pm. Because members of the Select Board left the meeting at an undetermined time, the Select Board was effectively adjourned. On a motion by Ms. Perry, and seconded by Mr. Dewar, the Finance Committee voted to adjourn by a roll call vote of 8-0-0 at 10:33 pm. Page | 3